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Reading, Fast and Slow – Article by Bradley Doucet

Reading, Fast and Slow – Article by Bradley Doucet

The New Renaissance Hat
Bradley Doucet
January 13, 2015
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When a book has a lot to offer—meaty ideas, well-crafted language, a plot that sings, characters that move me—I want to take my time with it. I want to savour it and make it last. On the other hand, there are some books that I want to have read, but that I’m not really looking forward to reading. Also, there are just a lot of books out there, and only so many hours to devote to reading in a given day, year, or lifetime. What if I could savour the best and speed through the rest?

Thanks to a Boston-based start-up named Spritz, I should soon be able to do just that. The company has developed a text-streaming technology that apparently allows readers to increase their reading speeds dramatically without loss of comprehension or retention, and with no special training required. Normal reading is like walking, in that you do it at your own pace. In contrast, “spritzing” is like being on a treadmill, with words coming at you one at a time at a pre-determined (but adjustable) rate. It also takes advantage of what the company calls the “Optimal Recognition Point” in each word. That may sound a bit hokey, but a quick trip around the Spritz website, where you can test out the tech for yourself, should dispel your doubts.

One possible use is quickly finishing a book that started out promising but is proving somewhat disappointing. I hate to abandon a book, and I’ll only do so if it feels like a complete waste of time. But I would have been happy, for instance, to step on the gas about halfway through The Luminaries, which won both the Governor General’s Award and the Man Booker Prize last year. What began as an intriguing tale of murder and mystery set during the 1860s New Zealand gold rush, packed with lots of well-defined characters, was not ultimately very fulfilling, in my opinion. Satisfying endings are not terribly common, but in this case, I found myself caring less and less about the characters as the story dragged on. With a really good novel, the opposite happens.

If this technology pans out, I’ll have more time to spend with higher quality books, which is reason enough to be excited. But as the cost of reading (in terms of time) falls, simple economics suggests that most people will probably read more, which frankly would be great. Just think: A wiser, more knowledgeable, more empathetic world may be right around the corner.

Bradley Doucet is Le Québécois Libre‘s English Editor and the author of the blog Spark This: Musings on Reason, Liberty, and Joy. A writer living in Montreal, he has studied philosophy and economics, and is currently completing a novel on the pursuit of happiness.

Bookstore Wars: Creativity versus Scale – Article by Sanford Ikeda

Bookstore Wars: Creativity versus Scale – Article by Sanford Ikeda

The New Renaissance Hat
Sanford Ikeda
August 22, 2013
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Independent bookstores appear to be making a comeback after several years of decline. As reported by MSNBC, the number of independent bookstores has risen significantly.

Some 1,000 independent bookstores went out of business between 2000 and 2007, according to the American Booksellers Association (ABA), as consumers turned to online buying, downloading e-books, or flocking to Barnes & Noble and (now defunct) Borders. But the ABA said that since 2009, the number of independent bookstores has risen 19 percent, to 1,971.

If my arithmetic is right, that still means the industry hasn’t rebounded to where it was in 2000 (about 2,600 stores), but it’s not bad. Meanwhile e-book sales, which had been rising at triple-digit rates, have evidently lost a bit of steam, last year growing at about 5 percent overall.

These facts perhaps illustrate two important lessons:  First, the scale of a business’s operations is not the same thing as its competitiveness; and second, the kind of competition that counts in free markets has much less to do with efficiency than with creativity.  Selling books and digital media in massive volume seems to make firms sluggish in addressing customer preferences for more personalized service and responsiveness.

Efficiency and Scale Are Important

Free-market economists are typically painted by friends and foes alike as cheerleaders for efficiency. Indeed, many economists do tout efficiency as the prime virtue of the free market, keeping prices low and employment high. In standard economics, efficiency refers to using the lowest-cost means to reach a given end.

If Jack is in New York and wants to be in Philadelphia, then among the alternative means available to him—walking, boating, flying, driving, or taking the train—efficiency implies that Jack chooses the one that minimizes the cost to him of getting to Philadelphia. In manufacturing, the production process that, other things equal, produces a given rate of output at the lowest cost is the efficient one.

(Note:  Cost, like benefit, always refers to the cost to someone of doing something.  Sometimes the chooser experiences the costs, sometimes someone else does, but neither costs nor benefits are ever disembodied.)

One form of efficiency is economies of scale. Economies of scale occur when using more of all inputs (scaling up) increases output so much that the cost per unit of output falls. (In econ-speak that’s when the long-run average-cost curve slopes downward.) Critics pick up on this and argue that the free market therefore necessarily favors big businesses over small businesses because the bigger a firm is, the more efficient in terms of unit costs it tend to be, and that allows it to charge lower prices and drive smaller firms out of the market.

But Not as Important as Competition

That story, however, only looks at the relative efficiencies of existing firms and markets. If the fundamental goal is to improve the well-being of people as they see it, then you have to pay more attention to competition, particularly entrepreneurial competition. In that sense, competition trumps efficiency (as Israel M. Kirzner has explained).

That’s because, again, efficiency means choosing from among given alternatives the one that achieves a given goal at the lowest cost. Where the standard economic concept of efficiency falls short is that in the real world neither ends nor means are simply given to anyone. Ends and means, outputs and inputs, have at some point to be discovered by someone. Yes, efficiency is a good thing, like having a clean and orderly workplace, but it’s entrepreneurship in the competitive process that does the heavy lifting of finding the work to be done and putting you in a position to do it.

The resurgence of independent bookshops in the face of book megastores, I think, is an example of how creative competition overcomes the scale efficiency of providing a particular product. There’s nothing inherently wrong or uncompetitive about megastores or inherently virtuous about small businesses. Big and small businesses have their niches, whether online or in brick-and-mortar shops. But central to the competitive process is the ability, whatever your size, to be aware of changing circumstances and to adjust appropriately to them. The MSNBC article quotes an independent bookseller as saying, “We learned how to get books that people couldn’t find online, and to cater as much as we could to the customer. When a customer walks in, we try to make them feel wanted and at home.”

Scale economies in both the online and brick-and-mortar parts of the industry do little to win over customers who prefer personalized service or the intangibles of local businesses. Independent bookstores are more flexible, for example, at staging readings of local authors and other neighborhood events. The giant bookseller Borders Books, one of the pioneers of book retailing, apparently didn’t do a good job adjusting and closed a couple of years ago (I wrote about it here). Today Barnes & Noble scrambles to cope with competition from the e-book, Amazon.com, and, it seems, local bookshops.

While the diminished growth of e-book sales is hardly a harbinger of decline—5 percent is nothing to sneeze at—it does suggest that sometimes the demand side of the market doesn’t change quite as fast as the supply side—that is, a lot of innovation is just discovering better ways to satisfy fairly stable tastes. Still, it’s competition—for new markets, new techniques, new resources, and yes, new tastes—and not efficiency that drives, and is driven by, the creative discovery of ends and of means.

The Lesson Applied

The other day a friend told me that, when she told her fiancé she couldn’t understand why a mildly alcoholic beverage called “Chu-hi,” which is very popular in Japan, isn’t sold in stores here, his response was something like, “If there were a demand for it, it would be.” Knowing that I write this column she then said to me, “That’s the free market, right?”

Okay, class, what do you say?

Sanford Ikeda is an associate professor of economics at Purchase College, SUNY, and the author of The Dynamics of the Mixed Economy: Toward a Theory of Interventionism.
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This article was originally published by The Foundation for Economic Education.
Guide to Stolyarovian Shorthand

Guide to Stolyarovian Shorthand

The New Renaissance Hat
G. Stolyarov II
February 11, 2013
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Stolyarovian Shorthand was originated in 2003 and has evolved gradually since. For the first time, it is being made available for free to the public, under a Creative Commons license. You can read and download the free Guide to Stolyarovian Shorthand as a PDF file here. The Guide explains this history and evolution of Stolyarovian Shorthand and allows the reader to learn its general rules and special symbols. An extensive (but non-exhaustive) Glossary at the end presents nearly ten pages of symbols in one convenient reference document.

The Modularization of Activity – Article by G. Stolyarov II

The Modularization of Activity – Article by G. Stolyarov II

The New Renaissance Hat
G. Stolyarov II
February 7, 2013
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On February 2, 2013, I ran my first ultramarathon: 50 kilometers (31.07 miles) in 5 hours, 10 minutes, 50 seconds – all within the comforts of my home on my elliptical trainer. I experienced no pain, no pounding, no strain on the joints, no car traffic, and no vicissitudes of weather. More importantly, I had constant access to water and nourishment if I wished it. The elliptical trainer’s shelf held my tablet computer, and I could pass the time reading articles, watching videos of philosophical discussions, and listening to Mozart.

This kind of experience is truly new. Even when I ran my first elliptical-trainer marathon in 2008 (see my article about that experience and its advantages here), I could not have replicated it. I had to content myself with reading a hard-copy book back then, prior to the age of e-readers and tablets. Cumulatively, I have read thousands of hard-copy pages while running, but the strain required for such reading is certainly far greater. Occasionally, one must hold the book still. The tablet screen is far more stable and versatile, offering vast possibilities for entertainment. With an Internet connection, immense repositories of information are at one’s fingertips, all without interrupting one’s workout!

Although the ability to radically customize my exercise has been quite recent, I have been contemplating the broader development it represents for years.  In 2008, when walking between two buildings during a frigid Michigan winter, I was struck by the realization that life did not have to be this way in the future. I wanted to reach my destination and its amenities, but being outside in freezing weather was a mere contingent circumstance, unrelated to the specific goals I sought. As a result of this insight, I proposed that, in addition to indefinite life extension, complete liberty, and the cessation of all aggression, a worthwhile endeavor for the future should be the decoupling or de-packaging of activities from one another. Life should improve to such an extent that, when considering any activity, people should only need to accept the constitutive parts of that activity – not extraneous physical circumstances that simply get in the way.

Running is excellent exercise, but it has historically been fraught with unnecessary risks and discomforts. People have even died during “traditional” marathons, due to lack of preparation, lack of nourishment, extremes of weather, and the inability to access emergency aid. The repeated pounding of feet on the pavement damages the joints and bones; this is why so many lifelong runners get knee and hip replacements in their forties and fifties. By contrast, the elliptical trainer is gentle. The feet rest firmly on the pedals; there is no pounding or jarring. One can think more clearly and focus on study, esthetics, or entertainment. There is no worry of being stranded from civilization and its amenities. When running outdoors, every mile run away must be run back, even when one might not be in the proper condition to do so. I still remember, from my college days, what it feels like to have no choice but to run for miles after a fall, to have one’s path obstructed by unexpected deep snow, or to face a sudden, chilling wind. I remember the dangerous behavior of distracted drivers at street crossings and even the occasional loose angry dog.

It is self-defeating to take serious short-term risks in pursuit of long-term health. For the past 4.5 years, I have frequently been able to isolate the “pure exercise” element of running from the unnecessary vicissitudes of the outdoor environment. The benefits in improved productivity have been enormous as well: I attained all seven of my professional insurance designations through studying mostly performed on an elliptical trainer. I am able to keep up with current world events and read more opinion pieces, philosophical treatises, and online discussions than ever before. Writing on the elliptical trainer is still quite laborious, but I can consume content during my workout as well as I could sitting at my desktop.

What enables this modularization – this separation of the desirable from the undesirable and the recombination of the desirable parts into simultaneous, harmonious experiences? Technology is the great de-packager of experiences that have hitherto been inseparable of necessity. At the same time, technology is the great assembler of experiences that could not have previously coexisted. In the eighteenth century, you would have had to be among the wealthiest kings and aristocrats in order to hear a string quartet while reading or writing. You would have needed to retain your own court musicians, or to hire professional performers at great expense.  Now you can avail yourself of this combination at virtually any time, on demand, without any incremental expenditure of money.

Other common modularizations now occur with scant notice by most. Today, thanks to global shipping networks, you can eat two fruits on the same plate, whose growing seasons are months apart. Some of these fruits will only have the parts you like, and none of those pesky little seeds – thanks to genetic engineering.  Whereas previously you would have had to purchase prepackaged  vinyl records, cassette tapes, or CDs, now you can obtain individual songs, lectures, speeches, podcasts, or audiobooks and combine them in any way you like. Whereas old-style television networks expected you to adjust your schedule to them, and to sit through annoying advertisements every ten minutes, you can now access inexhaustible content online and watch it at your own schedule.

But this great process of empowering individuals by breaking down old pre-packaged bundles is just beginning. Consider the improvements we could witness in the foreseeable future:

1. The rise of autonomous, self-driving vehicles could not only get rid of the chore of driving, but could also save tens of thousands of lives annually, as the overwhelming majority of automobile accidents and fatalities are due to human error. In the meantime, occupants of autonomous vehicles could entertain themselves in ways previously inconceivable. Texting while driving will no longer pose a risk, because the vehicle will not depend on you.

2. The mass production of in-vitro meat could enable humans to consume meat without requiring the deaths of millions of animals. This will not only increase the ethical comfort and esthetic satisfaction of meat-eating, but will also reduce the messiness of food preparation. It will also reduce the unpleasant odors emanating from large-scale livestock farms.

3. The rise in videoconferencing and telecommuting will simultaneously raise productivity, lower business costs, and improve employee morale. Employees will be able to more flexibly balance their jobs and personal lives. Neither work emergencies nor personal emergencies would need to escalate, unaddressed, just because attending to such emergencies immediately is impractical. More remote collaboration will become possible, without the need to amass huge travel bills or endure sub-optimal and sometimes outright undignified conditions at airports or on roads.

4. Personalized medicine – aided by vast and cheap data about the body and the use of portable devices as the first line of screening and diagnosis – would save considerable money on medical costs and encourage a focus on prevention. It would also enable people to avoid much of the bureaucracy associated with contemporary medical systems, and would free doctors to receive visits related to genuinely the serious conditions that require their expertise. Patients who discover specific health problems could apply directly to specialists, instead of using general practitioners as filters. Burdens on general practitioners would thereby be reduced, enabling them to provide a higher quality of care to the patients that remain.

5. Improved infrastructure should mitigate the effects that the vicissitudes of weather and vehicle traffic have on our everyday movements. Air conditioning and heating in automobiles, trains, and airplanes have already helped greatly in this regard. Additional investments should be made into covered passageways connecting proximate buildings in cities, as well as subterranean and above-ground pedestrian street crossings. Dashing across a traffic-filled intersection should be made obsolete, and our future selves should eventually come to be astonished at the barbarism of societies where people took such outrageous risks just to get from one place to another.  In less populated areas, the least that could be done is for sidewalks for pedestrians and bicyclists to be made ubiquitous, so as to avoid the mingling of cars with less protected modes of transport.

6. Nanofibers and innovative fabrics could render much clothing immune to the typical inconveniences and hazards of everyday wear. Wrinkling, staining, and tearing would become mere historical memories. Packing for a trip would become much easier, and compromises between esthetics and practicality would disappear. Individual expression would be empowered in clothing as in so many other areas.  Some clothing might be engineered to keep the temperature near the body at comfortable levels, or to absorb solar energy to power small electronic devices.

7. Education could be greatly improved by decoupling it from classrooms, stiff metal chair-desks, dormitories, bullies, enforced conformity, and one-size-fits-all instruction aimed at the lowest common denominator. The Internet has already begun to break down the “traditional” model of schooling, a dysfunctional morass that our culture inherited from the theological universities of the Middle Ages, with some tweaks made during the mid-nineteenth century in order to train obedient soldiers and factory workers for the then-emerging nation-states. The complete breakdown of the classroom model cannot come too soon. Even more urgent is the breakdown of the paradigm of overpriced hard-copy textbooks, which thrive on rent-seeking arrangements with formal educational institutions. Traditional schooling should be replaced by a flexible model of certifications that could be attained through a variety of means: online study, apprenticeship, tutoring, and completion of projects with real-world impact. A further major breakthrough might be the replacement of protracted degree programs with more targeted “competency” training in particular skills – which could be combined in any way a person deems fit. Instead of attaining a degree in mathematics, a person could instead choose to earn any combination of competencies in various techniques of integration, differential equations, abstract algebra, combinatorics, topology, or a number of other sub-fields. These competencies – perhaps hundreds of them in mathematics alone – could be mixed with any number of competencies from other broadly defined fields. A single person could become a certified expert in integration by parts, Baroque composition, the economic law of comparative advantage, and the history of France during the Napoleonic Wars, among several hundreds of relatively compact other areas of focus. Reputable online databases could keep track of individuals’ competencies and render them available for viewing by anyone with whom the individual shares them – from employers to casual acquaintances. This would be a much more realistic way of signaling one’s genuine skills and knowledge. Today, a four-year degree in X does not tell prospective employers, business partners, or other associates much, except perhaps that a person is sufficiently competent at reading, writing, and following directions as to not be expelled from a college or university.

The modularization of activity promises to liberate immense amounts of time and energy by enabling people to focus directly on what is important to them. The hardships that are typically seen as part of the “package” of certain experiences today are not, in any manner, necessary, ennobling, or “worth it”. A good thing does not become any better just because one has had to sacrifice other good things for it. Modularization will enhance individual choice and facilitate ever greater customization of life. Some will allege that this will reduce the diversity of experience; they will claim that individuals lose out on the breadth of exposure that comes with being involuntarily thrust into unexpected situations. But this was never an optimal way to pursue diverse experiences. A better way is to remove from one’s life the time-consuming byproducts of useful activities, and to fill the resulting extra time with a deliberate pursuit of new endeavors and experiences. If you do not have to drive in busy traffic, you can spend the extra time reading a book that you would not have read otherwise. If you do not have to deal with a random group of people your age in a traditional school, you can instead go out and meet individuals with whom you could undertake meaningful interactions and mutual endeavors.

Because modularization allows individuals to form their own packages of activities, it will enable us to arrive at an era of truly effective multi-tasking – not the frenzied and stressful rush to do multiple incompatible tasks at the same time, as often occurs today. Technology allows for diversity among individuals’ minds and enables each person to combine and recombine activities so as to make the most out of all of their abilities at any given time. For instance, I think of activities as occupying particular “tracks” in my own mind. I can only competently handle one verbal “track” (written or spoken) at one time. I can combine a verbal “track” with a motion-based “track” and an auditory non-verbal “track” – by reading, exercising, and listening to music simultaneously. I can also do so by writing (which is both verbal and motion-based) and listening to music simultaneously. If I am listening to an audio recording of a book, essay, or podcast, then my visual faculty is free to look at art, or to create it. I can do the former while exercising.  On the other hand, I do not enjoy leaving off any particular verbal or motion-based task prior to its completion, in order to engage in another task of the same “track”. Thus, I generally structure my activities so that such tasks occur in a linear succession and without interspersion. Auditory experiences are easier for me to halt and resume, so I can more readily shift from one to another, depending on where I am on my other “tracks”. It may be that some of my readers have extremely different combinations with which they are most comfortable. The very purpose of modularization is to allow each individual to make choices accordingly, while being subject to increasingly fewer material or cultural limitations that constrain people to accept any particular “packages” of activities.

Modularization is liberation – of time, energy, comfort, and productive effort. It is yet another way in which technology empowers us and enhances our lives in an unprecedented fashion.

TANSTAAFL and Saving: Not the Whole Story – Article by Sanford Ikeda

TANSTAAFL and Saving: Not the Whole Story – Article by Sanford Ikeda

The New Renaissance Hat
Sanford Ikeda
October 3, 2012
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How often have you heard someone say, “There ain’t no such thing as a free lunch,” or, “Saving is the path to economic development”?  Many treat these statements as the alpha and omega of economic common sense.

The problem is they are myths.

Or, at least, popular half-truths.  And they aren’t your garden-variety myths because people who favor the free market tend to say them all the time.  I’ve said them myself, because they do contain more than a grain of truth.

“There ain’t no such thing as a free lunch” (or TANSTAAFL) means that, with a limited budget, choosing one thing means sacrificing something else.  Scarcity entails tradeoffs.  It also implies that efficiency means using any resource so that no other use will give a higher reward for the risk involved.

That saving is necessary for rising labor productivity and prosperity also contains an economic truth.  No less an authority than the great Austrian economist Ludwig von Mises has stated this many times.  In an article published in The Freeman in 1981, for example, he said:

The fact that the standard of living of the average American worker is incomparably more satisfactory than that of the average [Indian] worker, that in the United States hours of work are shorter and children sent to school and not to the factories, is not an achievement of the government and the laws of the country. It is the outcome of the fact that the capital invested per head of the employees is much greater than in India and that consequently the marginal productivity of labor is much higher.

The Catalyst

But the statement is true in much the same way that saying breathable air is necessary for economic development is true.  Saving and rising capital accumulation per head do accompany significant economic development, and if we expect it to continue, people need to keep doing those activities.  But they are not the source–the catalyst, if you will–of the prosperity most of the world has seen in the past 200 years.

What am I talking about?  Deirdre McCloskey tells us in her 2010 book, Bourgeois Dignity: Why Economics Can’t Explain the World:

Two centuries ago the world’s economy stood at the present level of Bangladesh. . . .  In 1800 the average human consumed and expected her children and grandchildren and great-grandchildren to go on consuming a mere $3 a day, give or take a dollar or two [in today’s dollars]. . . .

By contrast, if you live nowadays in a thoroughly bourgeois country such as Japan or France you probably spend about $100 a day.  One hundred dollars as against three: such is the magnitude of modern economic growth.

(Hans Rosling illustrates this brilliantly in this viral video.)

That is unprecedented, historic, even miraculous growth, especially when you consider that $3 (or less) a day per person has been the norm for most of human history.  What is the sine qua non of explosive economic development and accelerating material prosperity?  What was missing for millennia that prevented the unbelievable takeoff that began about 200 years ago?

A More Complete Story

Economics teaches us the importance of TANSTAAFL and capital investment.  Again, the trouble is they are not the whole truth.

As I’ve written before, however, there is such a thing as a free lunch, and I don’t want to repeat that argument in its entirety.  The basic idea is that what Israel M. Kirzner calls “the driving force of the market” is entrepreneurship.  Entrepreneurship goes beyond working within a budget–it’s the discovery of novel opportunities that increase the wealth and raises the budgets of everyone in society, much as the late Steve Jobs or Thomas Edison or Madam C.J. Walker (probably the first African-American millionaire) did.  Yes, those innovators needed saving and capital investment by someone–most innovators were debtors at first–but note: Those savings could have been and were invested in less productive investments before these guys came along.

As McCloskey, as well as Rosenberg and Birdzell, have argued, it isn’t saving, capital investment per se, and certainly not colonialism, income inequality, capitalist exploitation, or even hard work that is responsible for the tremendous rise in economic development, especially since 1800.

It is innovation.

And, McCloskey adds, it is crucially the ideas and words that we use to think and talk about the people who innovate–the chance takers, the rebels, the individualists, the game changers–and that reflect a respect for and acceptance of the very concept of progress.  Innovation blasts the doors off budget constraints and swamps current rates of savings.

Doom to the Old Ways

Innovation can also spell doom to the old ways of doing things and, in the short run at least, create hardship for the people wedded to them.  Not everyone unambiguously gains from innovation at first, but in time we all do, though not at the same rate.

So for McCloskey, “The leading ideas were two: that the liberty to hope was a good idea and that a faithful economic life should give dignity and even honor to ordinary people. . . .”

There’s a lot in this assertion that I’ll need to think through.  But I do accept the idea that innovation, however it arises, trumps efficiency and it trumps mere savings.  Innovation discovers free lunches; it dramatically reduces scarcity.

Indeed, innovation is perhaps what enables the market economy to stay ahead of, for the time being at least, the interventionist shackles that increasingly hamper it.  You want to regulate landline telephones?  I’ll invent the mobile phone!  You make mail delivery a legal monopoly?  I’ll invent email!  You want to impose fixed-rail transport on our cities?  I’ll invent the driverless car!

These aren’t myths. They’re reality.

Sanford Ikeda is an associate professor of economics at Purchase College, SUNY, and the author of The Dynamics of the Mixed Economy: Toward a Theory of Interventionism.

This article was published by The Foundation for Economic Education and may be freely distributed, subject to a Creative Commons Attribution United States License, which requires that credit be given to the author.