Robert K. Massie – Catherine the Great: Portrait of a Woman

Robert K. Massie – Catherine the Great: Portrait of a Woman

Every biographer must make a choice between focusing on the person, or the times they lived in. It is a spectrum, not a binary, but most biographies emphasize one or the other. Here, Massie tilts about as heavily towards the person as I’ve ever read in the biography. This makes for a very good read, and Massie gives an insightful character study. But even in a lengthy book, Massie pays only the barest attention to the major world events and larger context of Catherine’s reign (1762-1796).

Her early reign appeared at the peak of the Enlightenment, and Catherine was an active correspondent with thinkers such as Voltaire. She even imported Diderot, famous compiler of the Encyclopedie, for a short time, before he left on bad terms, feeling stifled and homesick.

Catherine’s situation had a little bit in common with the economist Turgot, her rough contemporary in France just before the French Revolution. Her liberalism did not fall on receptive ground, and in a sense there was nothing she could do. She drafted something of a liberal manifesto, the Nakaz, which she intended to lead to a new legal code. But nothing ever came of it—just as Turgot tried to reform France’s finances and economy in a more or less liberal direction, but ran into a political and cultural brick wall. Catherine, of course, was a monarch who jealously guarded her power, and her liberalism was more relative than absolute.

Massie is a superb biographer, an astute psychologist, a well-developed sense of empathy, and a gifted writer. I might have enjoyed more on Catherine’s circumstances in addition to Catherine as a person, but that may well have required Massie to add a second, even lengthier volume. As it is, this single volume is superb.

Wisdom on Inequality

From p. 145 of Arvind Panagariya’s 2019 book Free Trade and Prosperity: How Openness Helps the Developing Countries Grow Richer and Combat Poverty:

“[In] the developing countries, wisdom lies in attacking inequality through poverty alleviation rather than by focusing on inequality, which comes in many forms. Excessive preoccupation with inequality risks the adoption of policies that undermine wealth creation and hence poverty alleviation.”

Moreover, the arguments holds in all countries, not just developing ones. The poor are best served by tending to people, not ratios.

In the News: Target and Minimum Wages

Reason‘s Eric Boehm quotes me in an article about unintended tradeoffs of Target’s $15 internal starting wage.

My recent paper on minimum wage tradeoffs is here.

This Week in Ridiculous Regulations

Last week’s big stories included a thickening impeachment plot, Energy Secretary Rick Perry’s resignation, and a letter written to the president of Turkey. In a bit of amusing but unsurprising news, it emerged that White House trade advisor Peter Navarro repeatedly quoted a made-up China expert in several of his books. The fictional character’s name, Ron Nava, is an anagram for “Navarro.” Meanwhile, rulemaking agencies published new regulations ranging from REAL ID compliance to importing cotton.

On to the data:

  • Last week, 29 new final regulations were published in the Federal Register, after 68 the previous week.
  • That’s the equivalent of a new regulation every five hours and 48 minutes.
  • Federal agencies have issued 2,389 final regulations in 2019. At that pace, there will be 2,957 new final regulations. Last year’s total was 3,367 regulations.
  • Last week, agencies published 399 notices, for a total of 17,605 in 2019. At that pace, there will be 21,789 new notices this year. Last year’s total was 21,656.
  • Last week, 1,075 new pages were added to the Federal Register, after 1,712 pages the previous week.
  • The 2019 Federal Register totals 56,093 pages. It is on pace for 69,423 pages. The 2018 total was 68,302 pages. The all-time record adjusted page count (which subtracts skips, jumps, and blank pages) is 96,994, set in 2016.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Four such rules have been published this year. Five such rules were published in 2018.
  • The running cost tally for 2019’s economically significant regulations currently ranges from savings of $4.39 billion to $4.08 billion, mostly from estimated savings on federal spending. The 2018 total ranges from net costs of $220.1 million to $2.54 billion, depending on discount rates and other assumptions.
  • Agencies have published 57 final rules meeting the broader definition of “significant” so far this year. 2018’s total was 108 significant final rules.
  • So far in 2019, 401 new rules affect small businesses; 20 of them are classified as significant. 2018’s totals were 660 rules affecting small businesses, with 29 of them significant.

Highlights from last week’s new final regulations:

For more data, see “Ten Thousand Commandments” and follow @10KC and @RegoftheDay on Twitter.

In the News: Minimum Wages

The Jacksonville Journal-Courier‘s Marco Cartolano quotes me in an article about minimum wage increases in Illinois and Florida.

My recent paper on minimum wage tradeoffs is here.

Philip Henry Wicksteed – The Common Sense of Political Economy: Including a Study of the Human Basis of Economic Law 

Philip Henry Wicksteed – The Common Sense of Political Economy: Including a Study of the Human Basis of Economic Law 

I read this 1910 “principle of” textbook because of its influence on James Buchanan, the Nobel laureate who co-founded the public choice approach. He emphasized methodological individualism rather than thinking about people in terms of groups or aggregates. He also emphasized precision in writing and in thought, and repeatedly pointed to Wicksteed as one of his influences in this regard, along with Thomas Hobbes and the Swedish economist Knut Wicksell.

Wicksteed is surprisingly readable. And as with many other older economics classics I’ve read, from Smith, Ricardo, and Say on up to Frank Knight, he defies the stereotype of economists thinking only in terms of abstract models and Homo economicus. Wicksteed wrote in a post-Alfred Marshall world, so by his time the now-standard toolkits of supply and demand curves and equilibrium analysis are in wide use. His grasp of thinking at the margin is deep yet seemingly effortless, and has already sharpened my thinking.

But Wicksteed does not use models for their own sake. He uses standard Marshallian theory to explain why people behave as they do, and why economies have certain tendencies in motion. But he repeatedly emphasizes that these are models, not real life. He emphasizes the importance of human psychology, and how fleeting sentiments and emotions can influence decisionmaking in ways Marshallian analysts struggle to explain. The areas under the supply and demand curves describing subjective values such as consumer and producer surplus do not add up in real life nearly so neatly.

The title is also well chosen. Wicksteed shows common sense throughout, and not just in treating models as models, and not as real life. He shows common sense most brightly in calling shenanigans on the confused and confusing views of land and rent that detracted from the accomplishments even of high-caliber thinkers of Adam Smith and Jean-Baptiste Say, as well as Karl Marx and the nuttier parts of Henry George and his followers. He spends an entire chapter debunking such nonsense, and throughout also explains why the common distinction between land, labor, and capital as separate factors of production is arbitrary and artificial. The likely source of this common pre-20th century confusion is the traditional dominance of agriculture in economic life. As manufacturing and services became more important, the land/rent fallacy declined, and Wicksteed appeared at the right moment in history to put a nail in agrarianism’s deserving coffin.

To the extent that Wicksteed has any readers today, they probably came to him the same way I did, via better-known figures such as Buchanan crediting him as an influence. Due to Wicksteed’s emphasis on psychology and limited rationality, today’s behavioral economists would find a lot to like here, too. Harvard-MIT-Princeton analysts would benefit from Wicksteed’s extended proof that rigorous reasoning is possible without extensive math.

Charles C. Mann – 1493: Uncovering the New World Columbus Created

Charles C. Mann – 1493: Uncovering the New World Columbus Created

An excellent, highly readable sequel to 1491, which was Mann’s history of pre-Columbian North and South America. This book looks at the aftermath. Mann dives deep into disease, biology, trade, culture, and more. I learned that earthworms, or at least the species most Americans are familiar with from their gardens, were brought over to the Americas from Europe. Also, nearly all European and Asian potatoes are essentially clones from one of many candidate New World species. Mann’s surprisingly lengthy and surprisingly light-hearted discussion of the guano archipelago off of South America and the economic and geopolitical consequences of its discovery was also something new.

I also learned that an attempt to popularize escargot in Taiwan led to the imported snails escaping and becoming an invasive species. Meanwhile, the dish failed to catch on. The spontaneous orders that emerged in managing this common resource would be of interest to students of Garrett Hardin’s famous 1968 article “Tragedy of the Commons,” as well as Elinor Ostrom’s empirical studies on polycentric governance. Mann himself is also economically literate, accurately using insights from Douglass North, Joseph Schumpeter, and other economists.

Adrian Goldsworthy – The Fall of Carthage: The Punic Wars 265-146 BC

Adrian Goldsworthy – The Fall of Carthage: The Punic Wars 265-146 BC

This is a history of the Punic Wars, mostly from the Roman side. It is not a survey history of Carthage. For that, turn to Richard Miles’ excellent Carthage Must Be Destroyed. Carthage versus Rome was the big rivalry of its day, the Ancient Mediterranean equivalent of Yankees-Red Sox or Packers-Bears, except with rather higher stakes. The temperature ran especially hot on the Roman side of the dispute. Cato the Elder, for example, ended his every Senate speech, regardless of topic, with the phrase “Carthago delenda est” (“Carthage must be destroyed”).

That said, the rivalry has an artificial cast to it. Roman culture placed a heavy emphasis on self-aggrandizement. Virgil’s Aeneid, for example, ties Rome’s origins all the way back to the Trojan War epics of Homer. And every hero needs a villain to fight; Rome’s villain was Carthage. Goldsworthy is a good narrative historian, and though he remains Rome-centric, he gives the reader an idea of Carthage’s origins and why the former Phoenician colony (whence “Punic”) stuck in Rome’s craw so much. He also explains prominent Carthaginians such as Hamilcar and Hannibal’s significance, strategies, and motivations. Finally, Godsworthy also separates the three Punic Wars into distinct entities. They blend together for many people, including me, and this book helped to give a more detailed understanding. This was a multi-generation conflict, and each generation had a different fight.

In the News: Minimum Wage

Ingrid Case at Employee Benefit News has a thorough writeup of my recent minimum wage paper.

The article is here. The paper is here.

This Week in Ridiculous Regulations

The latest Mad Libs-style political feud involves the NBA, the television cartoon South Park, and the Chinese government. President Trump also issued a pair of executive orders intended to rein in regulatory dark matter, and the 2019 Federal Register topped 55,000 pages. Rulemaking agencies published new regulations ranging from modern swine slaughter to order forms for illegal drugs.

On to the data:

  • Last week, 68 new final regulations were published in the Federal Register, after 97 the previous week.
  • That’s the equivalent of a new regulation every two hours and 28 minutes.
  • Federal agencies have issued 2,360 final regulations in 2019. At that pace, there will be 2,980 new final regulations. Last year’s total was 3,367 regulations.
  • Last week, agencies published 507 notices, for a total of 17,206 in 2019. At that pace, there will be 21,725 new notices this year. Last year’s total was 21,656.
  • Last week, 1,712 new pages were added to the Federal Register, after 1,937 pages the previous week.
  • The 2019 Federal Register totals 55,015 pages. It is on pace for 69,464 pages. The 2018 total was 68,302 pages. The all-time record adjusted page count (which subtracts skips, jumps, and blank pages) is 96,994, set in 2016.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Four such rules have been published this year. Five such rules were published in 2018.
  • The running cost tally for 2019’s economically significant regulations currently ranges from savings of $4.39 billion to $4.08 billion, mostly from estimated savings on federal spending. The 2018 total ranges from net costs of $220.1 million to $2.54 billion, depending on discount rates and other assumptions.
  • Agencies have published 57 final rules meeting the broader definition of “significant” so far this year. 2018’s total was 108 significant final rules.
  • So far in 2019, 397 new rules affect small businesses; 20 of them are classified as significant. 2018’s totals were 660 rules affecting small businesses, with 29 of them significant.

Highlights from last week’s new final regulations:

For more data, see Ten Thousand Commandments and follow @10KC and @RegoftheDay on Twitter.