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Journal: Economics in Brief (Internet Flotsam)

Journal by lgw

Here's some internet flotsam attributed to a graduation speech by Thomas Sargent (without digging into whether this speech really happened: the content is interesting).

Economics is organized common sense. Here is a short list of valuable lessons that our beautiful subject teaches.

1. Many things that are desirable are not feasible.

2. Individuals and communities face trade-offs.

3. Other people have more information about their abilities, their efforts,
and their preferences than you do.

4. Everyone responds to incentives, including people you want to help. That
is why social safety nets don't always end up working as intended.

5. There are tradeoffs between equality and efficiency.

6. In an equilibrium of a game or an economy, people are satisfied with their
choices. That is why it is difficult for well meaning outsiders to change
things for better or worse.

7. In the future, you too will respond to incentives. That is why there are
some promises that you'd like to make but can't. No one will believe those
promises because they know that later it will not be in your interest to
deliver. The lesson here is this: before you make a promise, think about
whether you will want to keep it if and when your circumstances change.
This is how you earn a reputation.

8. Governments and voters respond to incentives too. That is why governments sometimes default on loans and other promises that they have made.

9. It is feasible for one generation to shift costs to subsequent ones. That is
what national government debts and the U.S. social security system do
(but not the social security system of Singapore).

10. When a government spends, its citizens eventually pay, either today or
tomorrow, either through explicit taxes or implicit ones like inflation.

11. Most people want other people to pay for public goods and government
transfers (especially transfers to themselves).

12. Because market prices aggregate traders' information, it is difficult to forecast stock prices and interest rates and exchange rates.

User Journal

Journal: Geothermal vs Solar Power 1

Journal by lgw

Here are the basic numbers on aailable geothermal vs solar power (since this has come up in discussion more than once).

The surface area of the Earth is about 5.1 x 10^14 m^2. The cross sectional area is about 1.3 x 10^14 m^2 (one quarter of the surface area, of course).

Per this paper found as a cite on wikipedia, the total heat flow out from the Earth's interior is 4.42 x 10^13 W, or 0.0867 W/m^2. Of course, the available power is much less because it's only the subsurface-surface temperature difference that's available.

Total solar irradience is 1361 W/m^2 by NASA's latest estimate (so about 1.7 x 10^17 W across the entire cross section), or about 1000 W/m^2 on the surface at noon on a cloudless day. Averaged over the day-night cycle (surface area vs cross-section, so 250 W/m^2), and taking clouds into account that's about 180 W/m^2 (I can't find a solid source on that yet, but it looks close).

So, total solar power flow is about 4000 times as large as total geothermal flow. I'm not quite sure how to estimate the (ideal) available power as a percentage of the total geothermal power flow, but if we use a WAG of 50%, then the available power from solar is also about 4000 times per square meter more than geothermal - significantly more if we average solar power only across populated latitudes.

User Journal

Journal: Global Warming Link

Journal by lgw

This is the best summary of the great global warming fraud I've yet seen, and published in the most unlikely of places.

To be told, as I have been, by Mr. Gore, again and again, that carbon dioxide is a grave threat to humankind is not just annoying, by the way, although it is that! To re-tool our economies in an effort to suppress carbon dioxide and its imaginary effect on climate, when other, graver problems exist is, simply put, wrong. Particulate pollution, such as that causing the Asian brown cloud, is a real problem. Two billion people on Earth living without electricity, in darkened huts and hovels polluted by charcoal smoke, is a real problem.

Although I feel Harold Ambler makes some good points, he misses what I've always felt was the most important. Given that the climate will change (as it always has), do we want it to be warmer, or colder? As glaciers covering Europe (the norm for the ice age we've been in for the past 100M years) seems to me far worse than rising sea levels, I've never understood why we'd want to fight warming in the first place.

I think the whole global warming fraud started by ignoring all of the available evidence and blindly asserting that the climate is naturally stable, so therefore if man did something to break that stability we'd be creating an otherwise-avoidable catastrophe. What BS. The only thing historically unprecedented is the inexplicable stability of the climate for the past 10K years. Change is unavoidable, with or without the actions of man.

User Journal

Journal: Some quotes I like

Journal by lgw

"Congressmen who willfully take actions during wartime that damage morale and undermine the military are saboteurs and should be arrested, exiled, or hanged." - Abraham Lincoln

"Pacifism is objectively pro-Fascist. This is elementary common sense. If you hamper the war effort of one side you automatically help out that of the other. Nor is there any real way of remaining outside such a war as the present one. In practice, 'he that is not with me is against me.'" - George Orwell

Promising costs nothing, it's the delivering that kills you.

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