Looks like time for another drinking from the wrong pipe repost

From Rolling Stone:

Who Needs Career Intelligence Officials When You Have Fox News? by Ryan Bort


Concerned as its agencies are with finding facts, President Trump has made sure to keep his distance from the United States intelligence community since taking office. Despite their wealth of expertise, he’s been reluctant to consider their security assessments as any more credible than what he happens to hear on Fox & Friends every morning. It isn’t hard to understand why, and it goes beyond Fox’s use of colorful graphics. The former presents the president with hard truths about dangers facing the nation that he is duty-bound to confront; the latter tells him that all is well — or, if it’s not, that it’s someone else’s fault — and that he’s doing a great job.

On Tuesday, the nation’s top intelligence officials briefed Congress on of North Korea, Iran and ISIS — all issues on which Trump has claimed varying degrees of victory. Their assessments didn’t exactly jibe with what the president would like to believe. Trump responded by attacking the intelligence community, tweeting on Wednesday that its officials are “extremely passive,” “naive” and “wrong,” particularly regarding their assessment of Iran. According to National Intelligence Director Dan Coats, whose warnings about Russian interference in America’s elections Trump has essentially ignored, Iran is still complying with the Obama administration’s nuclear deal, which Trump dramatically abandoned in May. “We do not believe Iran is currently undertaking activities we judge necessary to produce a nuclear device,” said Coats.

“Perhaps Intelligence should go back to school!” was the president’s ultimate response the following morning.

Tuesday, November 1, 2016

In retrospect, it's surprising we don't use more sewage metaphors

A few stray thoughts on the proper flow of information (and misinformation) and a functional organization.

I know we've been through all of this stuff about Leo Strauss and the conservative movement before so I'm not going to drag this out into great detail except to reiterate that if you want to have a functional  institution that makes extensive use of internal misinformation, you have to make sure things move in the right direction.

With misinformation systems as with plumbing, when the flow starts going the wrong way, the results are seldom pretty. This has been a problem for the GOP for at least a few years now. A number of people in positions of authority, (particularly in the tea party wing) have bought into notions that were probably intended simply to keep the cannon-fodder happy. This may also partly explain the internal polling fiasco at the Romney campaign.

As always, though, it is Trump who takes things to a new level. We now have a Republican nominee who uses the fringier parts of the Twitter verse as briefings.

From Josh Marshall:

Here's what he said ...

Wikileaks also shows how John Podesta rigged the polls by oversampling democrats, a voter suppression technique. That's happening to me all the time. When the polls are even, when they leave them alone and do them properly, I'm leading. But you see these polls where they're polling democrats. How is Trump doing? Oh, he's down. They're polling democrats. The system is corrupt, rigged and broken. And we're going to change it. [ Cheers and applause ]
Thank you, thank you. In an e-mail podesta says he wants oversamples for our polling in order to maximize what we get out of our media polling. It's called voter suppression because people will say, oh, gee, Trump's down. Folks, we're winning. We're winning. We're winning. These thieves and crook, the immediate, yeah not all of it, not all of it, but much of it -- they're the most crooked -- they're almost as crooked as Hillary. They may even be more crooked than Hillary because without the media, she would be nothing.

Now this immediately this grabbed my attention because over the weekend I was flabbergasted to see this tweet being shared around the Trumposphere on Twitter.

Todays Wikileaks dump revealed the DNC works w/ pollsters to skew polls in their favor by over-polling Democrats & under-polling Republicans pic.twitter.com/tVA8K6n79T

— Taylor Egly (@TaylorEgly) October 24, 2016

I don't know who Taylor Egly is. But he has 250,000 followers - so he has a big megaphone on Twitter. This tweet and this new meme is a bracing example of just how many of the "scoops" from the Podesta emails are based on people simply not knowing what words mean.
Trump had already mentioned 'over-sampling' earlier. But here he's tying it specifically to the Podesta emails released by Wikileaks. This tweet above is unquestionably what he's referring to.
There are several levels of nonsense here. Let me try to run through them.
...

 More importantly, what Tom Matzzie is talking about is the campaign/DNC's own polls. Campaigns do extensive, very high quality polling to understand the state of the race and devise strategies for winning. These are not public polls. So they can't affect media polls and they can't have anything to do with voter suppression.

Now you may be asking, why would the Democrats skew their own internal polls? Well, they're not.
The biggest thing here is what the word 'oversampling' means. Both public and private pollsters will often over-sample a particular demographic group to get statistically significant data on that group.
...  You need to get an 'over-sample' to get solid numbers.

Whether it's public or private pollsters, the 'over-sample' is never included in the 'topline' number. So if you get 4 times the number of African-American voters as you got in a regular sample, those numbers don't all go into the mix for the total poll. They're segmented out. The whole thing basically amounts to zooming in on one group to find out more about them. To do so, to zoom in, you need to 'over-sample' their group as what amounts to a break-out portion of the poll.

What it all comes down to is that you're talking about a polling concept the Trumpers don't seem to understand (or are relying on supporters not understanding), about polls that are by definition secret (campaign polls aren't shared) and about an election eight years ago.

Rational actors, stag hunts and the GOP

We have hit this idea in passing a few times in the past (particularly when discussing the Ponzi threshold), but I don't believe we've ever done a post on it. While there's nothing especially radical about the idea (it shows up in discussions of risk fairly frequently), it is different enough to require a conscious shift in thinking and, under certain circumstances, it can have radically different implications.

Most of the time, we tend to think of rational behavior in terms of optimizing expected values, but it is sometimes useful to think in terms of maximizing the probability of being above or below a certain threshold. Consider the somewhat overly dramatic example of a man told that he will be killed by a loan shark if he doesn't have $5000 by the end of the day. In this case, putting all of his money on a long shot at the track might well be his most rational option.

You can almost certainly think of less extreme cases where you have used the same approach, trying to figure out the best way to ensure you had at least a certain amount of money in your checking account or had set aside enough for a mortgage payment.

Often, these two ways of thinking about rational behavior are interchangeable, but not always. Our degenerate gambler is one example, and I've previously argued that overvalued companies like Uber or Netflix are another, the one I've been thinking about a lot recently is the Republican Party and its relationship with Trump.

Without going into too much detail (these are subjects for future posts), one of the three or four major components of the conservative movement's strategy was a social engineering experiment designed to create a loyal and highly motivated base. The initiative worked fairly well for a while, but with the rise of the tea party and then the Trump wing, the leaders of the movement lost control of the faction they had created. (Have we done a post positing the innate instability of the Straussian model and other systems based on disinformation? I've lost track.)

In 2016, the Republican Party had put itself in the strange position of having what should have been their most reliable core voters fanatically loyal to someone completely indifferent to the interests of the party, someone who was capable of and temperamentally inclined to bringing the whole damn building down it forced out. Since then, I would argue that the best way of understanding the choices of those Republicans not deep in the cult of personality is to think of them optimizing against a shifting threshold.

Trump's 2016 victory was only possible because a number of things lined up exactly right, many of which were dependent on the complacency of Democratic voters, the press, and the political establishment. Repeating this victory in 2020 without the advantage of surprise would require Trump to have exceeded expectations and started to win over non-supporters. Even early in 2017, this seemed unlikely, so most establishment Republicans started optimizing for a soft landing, hoping to hold the house in 2018 while minimizing the damage from 2020. They did everything they could to delay investigations into Trump scandals, attempted to surround him with "grown-ups," and presented a unified front while taking advantage of what was likely to be there last time at the trough for a while.

Even shortly before the midterms, it became apparent that a soft landing was unlikely and the threshold shifted to hard landing. The idea of expanding on the Trump base was largely abandoned as were any attempts to restrain the president. The objective now was to maintain enough of a foundation to rebuild up on after things collapsed.

With recent events, particularly the shutdown, the threshold shifted again to party viability. Arguably the primary stated objective of the conservative movement has always been finding a way to maintain control in a democracy while promoting unpopular positions. This inevitably results in running on thinner and thinner margins. The current configuration of the movement has to make every vote count. This gives any significant faction of the base the power to cost the party any or all elections for the foreseeable future.

It is not at all clear how the GOP would fill the hole left by a defection of the anti-immigrant wing or of those voters who are personally committed to Trump regardless of policy. Having these two groups suddenly and unexpectedly at odds with each other (they had long appeared inseparable) is tremendously worrisome for Republicans, but even a unified base can't compensate for sufficiently unpopular policies. Another shutdown or the declaration of a state of emergency both appear to have the potential to damage the party's prospects not just in 2020 but in the following midterms and perhaps even 2024.

So far, the changes in optimal strategy associated with the shifting thresholds have been fairly subtle, but if the threshold drops below party viability, things get very different very quickly. We could and probably should frame this in terms of stag hunts and Nash equilibria but you don't need to know anything about game theory to understand that when a substantial number of people in and around the Republican Party establishment stop acting under the assumption that there will continue to be a Republican Party, then almost every other assumption we make about the way the party functions goes out the window.

Just to be clear, I'm not making predictions about what the chaos will look like; I'm saying you can't make predictions about it. A year from now we are likely to be in completely uncharted water and any pundit or analyst who makes confident data-based pronouncements about what will or won't happen is likely to lose a great deal of credibility.

America is a country bitterly divided into two groups – – treatment and control.

The following would sound paranoid if it hadn't been so openly discussed by the leaders of the conservative movement in real time. At the risk of slightly oversimplifying, during the flush years of the Reagan administration, these leaders came up with a multipart plan to address the challenge of maintaining power in America while pursuing policies that lacked majority support.

The plan included devoting resources to high value-to-cost races such as midterms and statehouses, gerrymandering and voter suppression, dominance of and greater freedom to use campaign money, a highly disciplined carrot and stick approach to the establishment media that played shrewdly on its weaknesses and biases, and a massive social engineering experiment.

The pundit class has always had a problem with acknowledging and honestly addressing the various aspects of this plan, but it is the last element which indicates the largest blind spot. Commentators and more embarrassingly even some political scientists have pushed a string of theories that don't come close to fitting the facts with at least one requiring that West Virginia be re-assigned to the Confederacy.

All of this flailing around might be excusable if there were not an obvious explanation that almost perfectly describes the data. At least on a high level, all you need to ask yourself is who got the treatment?

Yes, there are certainly complications and complexities that need to be addressed. We need to talk about why certain people respond better. We need to look at the various channels and mechanisms beyond media including Astroturfing and the corruption of many of the leaders of the evangelical movement (particularly those espousing prosperity gospel). We need to acknowledge that this is not a clean experiment and that there are multiple levels of selection effects to contend with.

Those details, while important, are secondary. For now, the point we need to focus on is that there is a remarkably strong correspondence between conservative media reaching critical mass and an area going deep red, pro-Trump.

Unquestionably, the causal arrows run both ways here and we should approach some of the more subtle questions with caution, but the highly simplified model – – conservative propaganda and disinformation are the primary drivers of the rise of the reactionary right – – does an extraordinarily good job in explaining the last decade and the reluctance of many commentators and researchers to embrace it is itself a social phenomenon worth studying.

Howard Schultz is exploiting vulnerabilities in the system we've been pointing out for a long time.

God knows we've been over this before (I'm getting a little sick of it myself) but Howard Schultz, a man with no relevant experience whose answers to interview questions consists entirely of word salad garnished with bromides) has garnered the amount of serious attention for a laughable run for the presidency because of longstandiing problems with American journalism.

First, Schultz belongs to one of those groups that is always given extensive and respectful coverage. They include the super rich, Silicon Valley visionaries, economists, celebrities, and frequently ivy league professors resting on their laurels.

Second, he is promoting one of those ideas that have been granted exemption from balance. Though it seems to be receding a bit, many journalists still have an absolute fetish for giving equal time to both sides of the story even when, as in the case with global warming, there really is only one side. Despite this, certain issues have been allowed presented as axiomatic, without giving any room to opposing opinions. For a while, the education reform movement enjoyed this status, but the best example remains that brand of Simpson-Bowles fiscal austerity that is inevitably depicted as the grown up view despite of mountains of conflicting economic evidence.

Third, the Schultz campaign dovetails nicely plays into certain standard narratives extremely popular with a large part of the punditry. The villains of these stories are the extremists in both parties who live simply to make trouble. The heroes are the moderates on both sides who want to push past partisanship so they can role up their sleeves and get things done, and the Holy Grail the successful third party/independent.

It is no coincidence that the few hacks like Matt Bai and Dylan Byer who have rushed in to defend Schultz are the ones most deeply invested in things journalistic sinkholes like radical centricism and old-style horse race coverage.

Just so that some good can come of the Schultz campaign, and in memory of John Banner, here’s a music lesson from Jerry Fielding. Listen for the nicely done counterpoint in the second half. (Next time we’ll do 5/4 time signature with the Mission Impossible theme.)

We told you to keep an eye on Pennsylvania

From the Philadelphia Inquirer, January 27, 2019

Unlike brick-and-mortar charters which are authorized and overseen by school districts, cyber charters are authorized by the Pennsylvania Department of Education. Department officials have offered no good reason why they have failed to properly renew or remove the state’s cyber charters, which include three in Philadelphia that enroll 591 students. That would be bad in any circumstance – especially following a year where the head of one large cyber charter was sentenced to jail for siphoning $8 million from a cyber school — but research consistently finds that cyber schools are less effective than traditional district schools. This costly entry into the educational landscape cost over $463 million in 2016-17 alone; $68 million was spent on Philadelphia cybers. The charter law grants cybers as much money per pupil as brick and mortar schools, a point that Auditor General Eugene Depasquale blasted in a scathing audit of the charter law in 2014.

We've been on the PA charter beat for a while now.

Wednesday, October 8, 2014

“I can no longer accept cash in bags in a Pizza Hut parking lot” -- time to add Pennsylvania to the list

In an article entitled READING, WRITING, RANSACKING, Charles P. Pierce makes me think that I haven't been spending nearly enough time looking at education reform in the Keystone State. The quote from the title comes Pierce's account of the federal investigation of former Pennsylvania Cyber Charter School leader Nick Trombetta:

The bags of cash, a private plane bough by Avanti but used mostly by Trombetta, a Florida vacation home and a home in Mingo Junction, Ohio, for Trombetta’s former girlfriend all were described as perks enjoyed by Trombetta as part of a scheme to siphon money from taxpayers’ funds sent to PA Cyber for more than four years.

The case is actually small time compared to the other scandals going on in the state, but you have to admit it's a great quote.

A bigger and much more familiar scandal is the lack of accountability:

For reasons that aren't clear, millions of dollars have moved between the network of charter schools, their parent nonprofit and two property-management entities. The School District is charged with overseeing city charters, but "does not have the power or access to the financial records of the parent organization," according to District spokesperson Fernando Gallard. "We cannot conduct even limited financial audits of the parent organization." That's despite the fact that charters account for 30 percent of the District's 2013-'14 budget. Aspira declined to comment. The $3.3 million that the four brick-and-mortar charters apparently have loaned to Aspira are in addition to $1.5 million in lease payments to Aspira and Aspira-controlled property-management entities ACE and ACE/Dougherty, and $6.3 million in administrative fees paid to Aspira in 2012. 

Add to that some extraordinarily nasty state politics involving approval-challenged Pennsylvania governor Tom Corbett, the state-run Philadelphia School Reform Commission (which has a history of making teachers' lives difficult basically for the fun of it) and a rather suspicious poll:

"With Governor Corbett's weak job approval, re-elect and ballot support numbers, the current Philadelphia school crisis presents an opportunity for the Governor to wedge the electorate on an issue that is favorable to him," the poll concludes. "Staging this battle presents Corbett with an opportunity to coalesce his base, focus on a key emerging issue in the state, and campaign against an 'enemy' that's going to aggressively oppose him in '14 in any case."

I don't know enough about Pennsylvania politics to competently summarize this, let alone intelligently comment on it but it's difficult to imagine an interpretation that makes things looks good.

Political fantasies

This is Joseph.

Inspired by Mar's post yesterday, I wanted to mention the current trend of political arguments that lack any basis in reality.  At the moment, examples include:

Brexit and the Northern Irish border.  This was a major complication of leaving the European Union, foreseeable at the time of the referendum, and it seems to continue to be a case where politicians would rather pretend that the problem does not exist. 

The second is Howard Schultz and comprehensive tax reform.  Let me outsource to Paul Krugman:

The idea that we will solve complex problems without specific plans makes for a nice talking point but really does not advance the discussion. 

The irony is that this has led to a new round of attacks on people who do have actual plans.  From Matt Yglesias:

I mean things like Medicare for all are hard because they either require new investments of cash (in a country terrified of raising taxes) or the imposition of some sort of improved efficiency in a health case system with high prices (meaning somebody will lose).  This is awkward and it is true that this piece needs to be addressed.  But that things like free college with an actual offset are being attacked is more concerning -- the viable plans are being attacked for not having pieces they actually have.  Meanwhile, there is much less concern about plans absent entirely of details. 

I will note, in conclusion, the insight that you might have to make very hard decisions is very different than choosing not to make any decisions at all.  Brexit sounds less sexy if it comes paired with a border problem and comprehensive tax reform is meaningless without specifics, and it is only a viable plan if there was a way to resolve this from the beginning. 

Here is a place where reporters really could make a difference.   

Howard Schultz is the latest example of the dangerous fallacy of omnicompetence

From Jonathan Chait:

Billionaire coffee-shop mogul Howard Schultz is seriously thinking of running for president as an independent. Schultz appears to be one of those rich people who has confused his success in one field with a general expertise in every other field that interests him. His apparently sincere belief that he can be elected president is the product of a sincere civic-minded commitment to the public good and an almost comic failure to grasp how he might accomplish this. That confusion is probably being spread by his hired staffers, whose financial incentive, conscious or otherwise, is to encourage him to embark on a costly political fiasco.

We shouldn’t feel too bad if Schultz wants to waste some of his great-great-grandchildren’s inheritance playing political fantasy camp. The problem is that Schultz’s earnest confusion might succeed just well enough to have catastrophic consequences.

This seems like a good time to revisit this ongoing thread.

Tuesday, September 12, 2017

More magical heuristics -- Levy's omnicompetence

Yesterday, I introduced the term magical heuristics (still open to a better name) to describe nonrational mental tools used by many journalists and investors particularly when discussing science and technology. I laid out four general categories for these heuristics: magic of association; magic of language; magic of attitude; magic of destiny.

This post from Alon Levy (one of the most important contributors to the Hyperloop debate) perfectly fits with two of these categories, magic of association and magic of destiny (the idea that there are chosen ones among us destined for greatness). The whole thing is very much worth reading, but I've selected below the paragraphs that are most relevant to this thread and added emphasis to bring home the point:

There is a belief within American media that a successful person can succeed at anything. He (and it’s invariably he) is omnicompetent, and people who question him and laugh at his outlandish ideas will invariably fail and end up working for him. If he cares about something, it’s important; if he says something can be done, it can. The people who are already doing the same thing are peons and their opinions are to be discounted, since they are biased and he never is. He doesn’t need to provide references or evidence – even supposedly scientific science fiction falls into this trope, in which the hero gets ideas from his gut, is always right, and never needs to do experiments.

...

I write this not to help bury Musk; I’m not nearly famous enough to even hit a nail in his coffin. I write this to point out that, in the US, people will treat any crank seriously if he has enough money or enough prowess in another field. A sufficiently rich person is surrounded by sycophants and stenographers who won’t check his numbers against anything.


...

The more interesting possibility, which I am inclined toward, is that this is not fraud, or not primarily fraud. Musk is the sort of person who thinks he can wend his way from starting online companies to building cars and selling them without dealerships. I have not seen a single defense of the technical details of the proposal except for one Facebook comment that claims, doubly erroneously, that the high lateral acceleration is no problem because the tubes can be canted. Everyone, including the Facebook comment, instead gushes about Musk personally. The thinking is that he’s rich, so he must always have something interesting to say; he can’t be a huckster when venturing outside his field. It would be unthinkable to treat people as professionals in their own fields, who take years to make a successful sideways move and who need to be extremely careful not to make elementary mistakes. The superheros of American media coverage would instantly collapse, relegated to a specialized role while mere mortals take over most functions.

This culture of superstars is a major obstacle frustrating any attempt to improve existing technology. It more or less works for commercial websites, where the startup capital requirements are low, profits per employee are vast, and employee turnover is such that corporate culture is impossible. People get extremely rich for doing something first, even if in their absence their competitors would’ve done the same six months later. Valve, a video game company that recognizes this, oriented its entire structure around having no formal management at all, but for the most part what this leads to is extremely rich people like Bill Gates and Mark Zuckerberg who get treated like superstars and think they can do anything.

The press still hasn't figured out what "Netflix original" means.

Just to get this out of the way, I haven't gotten around to Roma yet (my to-see list is very long and still includes an embarrassing number of genuine classics) but there is every reason to believe that it is an exceptional film fully deserving of its accolades. The problem isn't the movie itself; it is the way it's been covered. We have once again a dramatic reminder that journalists, despite having run countless stories on Netflix, still don't understand the subtleties of what they reporting.

When you read about a "Netflix original," you probably assume the process behind it went something like this: Someone came up with an idea for a motion picture or TV show. It could be someone inside or outside of the company, but either way an executive was approached and the decision to greenlight the project was made. At that point, Netflix put up the money, gave some input to the creative decisions, then took full ownership of the finished product. Sometimes, this is a pretty good description of the process but not always.

Often, Netflix owns little or no share of these programs. Instead they pay top dollar for a period of exclusive streaming and the right to call something a "Netflix original." Other times, they step in and buy a finished product, usually something prestigious and awards friendly (and you don't get much friendlier than Alfonso Cuarón in full art house mode). As best I can tell, Netflix didn't have anything to do with Roma until shortly before its release.

It is also important to note that, even by the director's own admission, this was a picture of extremely limited commercial potential. A Spanish-language drama filmed in black and white with no recognizable stars. Even if it wins an Oscar, it almost certainly will not bring in enough subscribers to offset the amount of money that Netflix is spending to acquire and promote it.

As we have discussed at great length in the past, a constant flow of hype is essential for maintaining the sky high valuations of companies like Netflix and Tesla, and keeping these stock prices high benefits senior management in a number of ways. You can't really fault them for playing this game, but you can criticize the reporters covering it for playing along.

More good work from Adam Ruins Everything

PDF tip

I'm a little embarrassed that it took me long to figure this out, but I had a great deal of difficulty finding the right tool for getting images out of PDFs like this turn of the century Scientific American I got from Internet Archive's indispensable collection.

It turned out that the solution was under my nose all the time. All I had to do was import the PDF into Inkscape, select the page  I needed then ungroup it. Couldn't be easier. Give it a try. 

Another newly relevant repost

If you've been listening closely to the reporting on the LA teachers' strike, you may have heard some of the people on the picket line talk about the need to stand up to billionaires. This Monkey Cage post provides a bit of context.

Vergara vs. California: Are the top 0.1% buying their version of education reform?

By Mark Palko June 23, 2014

---

On Tuesday, a California superior-court judge ruled that the state’s teacher tenure system discriminates against kids from low-income families. Based on testimony that one to three percent of California teachers are likely “grossly ineffective”—thousands of people, who mostly teach at low-income schools—he reasoned that current tenure policies “impose a disproportionate burden on poor and minority students.” The ruling, in Vergara v. California, has the potential to overturn five state laws governing how long it takes for a teacher to earn tenure; the legal maneuvers necessary to remove a tenured teacher; and which teachers are laid off first in the event of budget cuts or school closings.

— Dana Goldstein writing for the Atlantic.
The Vergara vs. California decision has garnered a great deal of media attention. It has been covered as an education story, a labor story, a legal story, but the connection to another highly topical subject has been largely overlooked: Vergara vs. California is an income-inequality story.
Put another way, the decision, the course of the trial, even the very existence of the case were largely the result of actions of a small set of very wealthy men. What’s more, this is true for almost every major education reform initiative from Common Core to L.A.’s billion-dollar iPad program to endless charter school pushes. Though the list of names does vary somewhat from story to story, the same figures keep popping up. For instance, it is rare to find a major reform initiative that does not involve someone who has worked for or received support from Eli Broad or the Bill and Melinda Gates Foundation.
Perhaps more importantly, even when the faces are new, the résumés are remarkably similar: extremely wealthy present or former CEOs, usually male and from the tech industry, with a proclivity for MBA-style rhetoric and approaches. Given the importance of the CEO demographic, it is not surprising that arguably the most powerful figures in the education reform movements of the United States and Britain (David Coleman and Michael Barber, respectively) both worked at McKinsey and Co., the definitive management consulting firm. (Definitive does not mean non-controversial. Barry Ritholtz has a good overview, and you can see my more education-centered take here and here.

The pair of education advocates [Gene Wilhoit, and the previously mentioned David Coleman] had a big idea, a new approach to transform every public-school classroom in America. By early 2008, many of the nation’s top politicians and education leaders had lined up in support.
But that wasn’t enough. The duo needed money —tens of millions of dollars, at least — and they needed a champion who could overcome the politics that had thwarted every previous attempt to institute national standards.
So they turned to the richest man in the world.

— from “How Bill Gates pulled off the swift Common Core revolution” by The Post’s Lyndsey Layton.
Of course, presence does not equate to influence, and influence is not necessarily bad. In order to get to a discussion of social good, we need to start by asking:
Does this group have a disproportionate influence over the current direction of education?
And, if so, is this disproportionate influence in some way undemocratic?
Consider the cases of Common Core and Vergara vs. California. With the former, it is important to note how unlikely it would have been for this program to get off the ground without Bill Gates. Both Coleman and Common Core have always been controversial. Coleman came into the education field strictly on the weight of his work with McKinsey, having no experience either as a teacher or a researcher. As for Common Core, almost immediately after gaining national attention, the proposed standards were greeted with considerable opposition. Here’s popular EdWeek blogger Anthony Cody writing in July 2009:

Sixty individuals, ONE teacher among them, will write national education standards in the next five months, in a secret process that excludes effective input from students, parents or teachers.

Along with the standards, a great deal of additional related material (curricular suggestions, sample lessons) were released, often to extremely negative reviews (including a particularly harsh reaction toward a scripted lesson that made the “odd” decision to teach the Gettysburg Address without referring to the Civil War).
Given the scale of Common Core, the speed of its adoption and, to put it mildly, its lack of grass-roots support, it is difficult to imagine that the initiative would be where it is today if not for Gates’s influence. By the same token, it is equally difficult to argue that competing ideas with more popular support but less influence behind them have gotten the same chance.
With Vergara, the difference is even starker, since it raises questions of equal access to the courts. Virtually every aspect of the case, from the founding of the organization Students Matter to the selection of plaintiffs to the quality of representation to the key witnesses to the research cited in the decision were influenced and, in some cases made possible, by a handful of large personal fortunes.
Students Matter was founded by David Welch, a Silicon Valley entrepreneur of considerable wealth and even more formidable connections. From the Mercury News:

And wealth has attracted more wealth — the Broad Foundation, a controversial education reform organization opposed by most teachers unions, and the Walton Family Foundation, started by Walmart founder Sam Walton, have donated to Students Matter. The nonprofit faced costs including a $1.1 million bill in 2012 from Gibson Dunn & Crutcher, the high-powered law firm that argued the court case.

The selection of defendants appears to have been based on their willingness to challenge the statutes Welch et al. wanted overturned, not on the level of harm they suffered. There does not seem to be any evidence that any of the students had a tenured but grossly ineffective teacher. Four of the nine weren’t even attending schools that had tenure. From the defense’s post-trial brief:

Plaintiffs Monterroza and Martinez both attend charter schools that are not subject to the challenged statutes at all. Beatriz and Elizabeth Vergara both attend a “Pilot School” in LAUSD that is free to let teachers go at the end of the school year for any reason, including ineffectiveness.

Actually, one of the “grossly ineffective teachers” had earlier been named teacher of the year (you can see an example of her work here).
In the trial itself, perhaps the most damning testimony came from Harvard professor Thomas Kane and LAUSD Superintendent John Deasy (previously best known for his disastrous iPad initiative). The quality of their testimony is outside of the scope of this conversation; what is relevant is that much of Kane’s research was funded by the Gates Foundation while Deasy is a former deputy director of the education division of the Gates Foundation and a graduate of Broad’s superintendent academy.
Common Core and Vergara are, of course, isolated instances, but they are both important and representative. In case after case, theories and approaches favored by a handful of very wealthy individuals received preferential treatment in the education debate. You cannot call that a democratic process.

This one might be worth revisiting, particularly the last line

Wednesday, June 24, 2015

Defining dysfunction

This paragraph from a recent Paul Krugman post reminded me of something I've been meaning to dig into for a while.

A brief aside: I don’t think it’s right to call this a case of Washington “dysfunction”. Dysfunction is when we get outcomes nobody wants, or fail to do things everyone wants done, because there doesn’t seem to be any way to package the politics. In this case, however, people who oppose TPP voted down key enabling measures — that is, they got what they wanted. Calling this “dysfunction” presumes that this deal is a good idea — and that kind of presumption is precisely what got successfully challenged yesterday.

We hear “dysfunction” thrown around a lot (often by me), so it might be a good idea to pin down some definitions. Krugman is definitely on the right track, but statements about “nobody” and “everybody” are obviously unrealistic. Every scenario makes somebody happy, up to and including the rise of Cthulhu and his dark, chthonic host. A workable definition will have to take that into account, as well as considering differing intensities of opinion.

A system is dysfunctional if there is no consistent weighting of preferences that corresponds to its actions. (I'm going to be careful not to let this drift into a discussion of voting paradoxes because a good portion of this audience knows a great deal about the subject and I would have to do serious research to make sure I didn't make a fool of myself.)

For example, a group could do what the plurality wants, or it could use some sort of weight by rank (first choice is worth five points, second is worth four...), or it could take into account strongly held positive or negative opinions.

Let's use restaurants. A group might go to an Armenian place because three out of seven listed it as their first choice, or they could go to Chipotle because six people listed that as their second choice, or they could take Chipotle off the list because one person refused to go (I'm with that guy. Living in LA and going to Chipotle is like living in Rome and going to Pizza Hut). All of these decisions are consistent with a functional organization.

If, on the other hand, the group ends up going for Thai when everyone would have preferred burgers, that's dysfunctional. I can’t think of a reasonable and consistent weighting scheme that can produce that result.

A political party is more complex than a group of friends, but in some ways it may not be that much more complex. I’ll try to flesh this out later, but for now, while you have to be careful talking about what a large group “wants,” I suspect that there are a lot choices that the GOP would “like” to make (infrastructure spending, for instance) in the same sense that those friends would “like” to be having burgers now.

Based on these definitions, for large chunks of the Twentieth Century, I'd say that the Democratic Party was the more dysfunctional. The Republicans, however, do seem to be making up for lost time.

Reading over this, it's pretty clear that I have a ways to go before I have a proposal for something coherent and measurable and usable, but I do believe there is something out there, What's more, I suspect that, in 2015, it's probably more important to worry about dysfunction than about ideological extremism.

Can Tesla survive without the Musk hype and bullshit?

From 2 Reasons To Sell Tesla: $920M And $26,250 by Peter Cohan

A little more than two months from now, Tesla -- in which I have no financial interest -- could have a considerably lower cash balance.

How so? The terms of a $920 million convertible bond make me think that come March 1, Tesla will have to part with at least a third of its remaining cash.

…

At the end of September, Tesla had about $3 billion in cash. This brings us to Tesla's $920 million convertible preferred stock -- which comes due on March 1. If Tesla's "average share price [is at] $359.87 or higher for 20 consecutive trading days," Tesla can pay off the note with common shares, according to the Journal.

But that level is 19% above its current price -- and I think it is much more likely that Tesla will need to fulfill its obligations to investors by forking over $920 million in cash.

...

By my math, the cumulative effect of these cash outflows should bring Tesla's cash balance to a dangerously low level.

I’m not going to pretend to understand the subtleties here – I have no relevant experience in this field – but the general notion that failing to maintain their stock price can have serious and imminent consequences for Tesla nicely complements a point we’ve been making for a while now.

Finally, it is essential to remember that maintaining this “real-life Tony Stark” persona is tremendously valuable to Musk. In addition to the ego gratification (and we have every reason to believe that Musk has a huge ego), this persona is worth hundreds of millions of dollars to Musk. More than any other factor, Musk’s mystique and his ability to generate hype have pumped the valuation of Tesla to its current stratospheric levels. Bloomberg put his total compensation from Tesla at just under $100 million a year. When Musk gets tons of coverage for claiming he's about to develop telepathy chips for your brain or build a giant subterranean slot car race track under Los Angeles, he keeps that mystique going. Eventually groundless proposals and questionable-to-false boasts will wear away at his reputation, but unless the vast majority of journalists become less credulous and more professional in the very near future, that damage won’t come soon enough to prevent Musk from earning another billion dollars or so from the hype.

I was thinking simply in terms of the advantages of holding a major stake in a multi-billion dollar company, but as the Forbes piece points out, a big drop in that price can actually threaten the very life of the company.  The valuation of Tesla was always built on a myth and on the willingness of most of the press (with the notable exception of the LA Times) to go along with the fantasy. Now that facade is starting to collapse and it is likely to bring the company down with it.

A few more moments with the super one

There was always more to Super Dave than met the eye. Like many of the signature characters of his brother, Albert (particularly in Real Life and his stand-up), Einstein's doomed stunt man was a study in a recognizable smarmy show-business type whose facade soon cracked, revealing a mixture of anger and desperation.

I’m not sure whether this is a cautionary tale about data manipulation or about concentration of economic power but I’m pretty sure about the cautionary part.

Good reporting from the Verge:

Dirty dealing in the $175 billion Amazon Marketplace by Josh Dzieza

Last August, Zac Plansky woke to find that the rifle scopes he was selling on Amazon had received 16 five-star reviews overnight. Usually, that would be a good thing, but the reviews were strange. The scope would normally get a single review a day, and many of these referred to a different scope, as if they’d been cut and pasted from elsewhere. “I didn’t know what was going on, whether it was a glitch or whether somebody was trying to mess with us,” Plansky says.

As a precaution, he reported the reviews to Amazon. Most of them vanished days later — problem solved — and Plansky reimmersed himself in the work of running a six-employee, multimillion-dollar weapons accessory business on Amazon. Then, two weeks later, the trap sprang. “You have manipulated product reviews on our site,” an email from Amazon read. “This is against our policies. As a result, you may no longer sell on Amazon.com, and your listings have been removed from our site.”

A rival had framed Plansky for buying five-star reviews, a high crime in the world of Amazon. The funds in his account were immediately frozen, and his listings were shut down. Getting his store back would take him on a surreal weeks-long journey through Amazon’s bureaucracy, one that began with the click of a button at the bottom of his suspension message that read “appeal decision.”

When you buy something on Amazon, the odds are, you aren’t buying it from Amazon at all. Plansky is one of 6 million sellers on Amazon Marketplace, the company’s third-party platform. They are largely hidden from customers, but behind any item for sale, there could be dozens of sellers, all competing for your click. This year, Marketplace sales were almost double those of Amazon retail itself, according to Marketplace Pulse, making the seller platform alone the largest e-commerce business in the US.

For sellers, Amazon is a quasi-state. They rely on its infrastructure — its warehouses, shipping network, financial systems, and portal to millions of customers — and pay taxes in the form of fees. They also live in terror of its rules, which often change and are harshly enforced. A cryptic email like the one Plansky received can send a seller’s business into bankruptcy, with few avenues for appeal.

Sellers are more worried about a case being opened on Amazon than in actual court, says Dave Bryant, an Amazon seller and blogger. Amazon’s judgment is swifter and less predictable, and now that the company controls nearly half of the online retail market in the US, its rulings can instantly determine the success or failure of your business, he says. “Amazon is the judge, the jury, and the executioner.”