Shouldn’t This be a Clue that we Really Need to Revise our Healthcare?

I don’t necessarily mean Obama’s plan, but something needs to change.  See here to find out why then click on “enlarge graphic.”

Posted in Economics, Health | Tagged | 2 Comments

University of Utah Presentation on Cells

Awesome presentation shown by the U of U here.  They scale the cells size with a grain of rice and coffee beans.

Posted in Science | Tagged | 2 Comments

What I’ve Learned this Past Year — 2009 Edition

Instead of doing New Years Resolutions, I’ve decided to look in the past and see how I’ve learned.  To me, if one hasn’t learned things within the past year, then it’s as if one hasn’t gained wisdom.  And if that’s the case, then was that past year even worth living?  Thus, here’s a list of things that I’ve learned this past year:

Ethics

  • Comparing Animals with Humans. Animals are never a good idea when you want to figure out the right thing to do for humanity.
  • Why be natural? “We should do it because it’s natural.”  That’s just another way of saying, “we should do it because it’s tradition.”
  • The Solution to Same-Sex Marriage.  It’d probably be best if we privatized marriage.  It’s the only compromise we have.  You can see it on my post on Nudge.

War

This is probably the most controversial one, so let’s get started.

  • Realism is more accurate than ever. In terms of international politics, realism is, for better or for worse, the most reliable answer.  This past year, I’ve sat in a class at WSU that dealt with anthropology, war, and radical Islam.  This class really blew my mind.  In the beginning, I was one of those who was totally against the War in Iraq.  Indeed, I was originally against the War in Afghanistan because I was one of those that had the mentality of “can’t we all just get together and listen to each other?  Where we can sing Koombya?”  Now, I feel like we have to stay.  I recall Plato’s dictum: “Never discourage anyone who continues to make progress, no matter how slow.”  However, I recall Hume and the psychologists who say that as soon as one reaches adulthood, it’s extremely hard to make them progress.  They’re already set in their ways; they already have established habits.  Thus, when it comes to wars in Iraq and Afghanistan, it’s more complex than “it’s moral” or “it’s immoral.”  Thus, there’s no such thing as “it’s a just war” or “it’s an unjust war.”  It’s always for a reason as to why we’re there and it has nothing to do with “we’re doing it for the oil” or “we’re doing it to liberate the people.”  The Realist is willing to admit that.
  • The Wars in Iraq and Afghanistan won’t end very soon. Here’s the deal: if we leave right now, the Taliban will group up and plan another attack.  We can’t leave.  However, if we stay, it’s just going to be a never-ending battle because we are fighting a guerrilla war with a group of people, not a country.  How can we fight a ragtag group of people?  I’ve always said that if you can’t figure out the answer, always follow the money.  So ask yourself this: who’s funding the Taliban?  There are three answers: the opiate fields (which isn’t much), they have figured out a way to channel US funding money from the US to Pakistan into Taliban hands (again, not much), and they have outside sources that are funding them, like Saudi Arabia (BINGO!).  Saudi Arabia are the number one country funding the Taliban (and other jihadist groups).  They can do this because they’re a rich country mainly from their oil supply.  Now we are the number one country that is buying up their oil.  Thus, we are simultaneously fighting and supporting the War on Terror.  We must cut off the funds.  How can we do this?  We must stop buying oil and then convince the rest of the world to follow suit.  But how?  Oil is such a huge commodity in demand.  How can we all of the sudden cut off our oil supply?  Here’s the answer: we need another source of fuel.  It seems that the only way to do this is through a Green Revolution. That’s right.  Even if Global Warming isn’t true, we need to pretend that it is in order to fight the War on Terror.  This will cut off the source of Taliban funding, and then from there, we can criticize the Saudi government for violating human rights, and not turn a blind eye because we need the oil.  This is the only Realist answer I see.
  • Torture is always, always, always wrong.
  • Clausewitz is Needed. From Cluasewitz, there is a Trinity of War: the Government, the Military, and the people.  Thus, war is always political.  The govt. provides the execution, the military is the means, and the people provides the will.  The people are the engine of war.  Thus, the best war is where you subordinate the military point of view to the political.  This is why Napoleon, Caeser, and King Solomon were great warriors, it’s because they knew how to play politics.  The political aim always have military objectives.
    • Everything in war is simple.  But the simplest thing is always difficult.  Things can always go wrong.
  • Sun-Tzu is Needed. Thus, we need to learn about Taoism.  War is always about the survival of the state.  War and statecraft are intertwined.  Never forget that.  Statecraft is too important to be left with the politicians.  The stronger something becomes, the weaker it gets.
    • Your most important weapon is deception.
    • Wait until the enemy is exhausted.
    • Win without fighting.
    • DO NOT USE PRINCIPLES!  Wars change, so you too must change.
    • “Know thy enemy.”  You must always know why the enemy is attacking.  If you do not know this, you will fail!
    • If you can’t defeat them, wear them down.
    • If this is not in the interest of the state, DO NOT ACT!
    • If you’re weak, do not fight.
    • Agitate the enemy to make them fight.  Never let them rest.
  • We need to amend the Constitution. Because of the need for Sun-Tzu, the world is much more complex and globalized.  The Amendment would say that the President must have also had some military background.
  • Don’t rely on technology too much. Our military has been shortened dramatically because we relied too much on the atom bomb.  Using drones isn’t going to be much of an effect.  Human intelligence is what is needed.
  • Mainstream Muslims are Needed. Many mainstream Muslims say that the terrorists are not true Muslims.  Ok, let’s take them at their word.  We should collect a lot of mainstream Muslims and establish a leadership.  From there, make an announcement in the Middle East saying that terrorists are not true Muslims.  Thus, if these people die, they will not get a Muslim burial.  Once the terrorists hear this, they will probably not want to fight (part of being a martyr is to get a Muslim burial).  Thus, this will be an incentive to not join up and fight.
  • Fareed Zakaria is the Man. You can see why here, here, here, here, and here,

Laws

  • No one can graduate from high school unless one is fluent in some foreign language. Our world will be left behind if we don’t catch up.  China and India are slowly rising and they’re going to leave us in the dust.  On advantage they have is they know more than one language.  Of course, English is the language practically everyone in the world knows.  Thus, to catch up, we need to learn another language.
  • As soon as one graduates from high school, one must serve the country for two years. This can be military, peace corps, or even working behind a desk as long as it’s for the government.
  • When it Comes to Liberty, Mill is Needed. The Harm Principle is probably the best Principle in the history of just theory.

Truth

  • The truth isn’t always black and white. If anything, the truth is more complex than I’ve imagined.  Always look at the issue with two opposite angles.  If anything the truth is a mixture of both.
  • Ideals can get you into Trouble. Principles are against empirical data.  If you had to choose between principles and empirical data, always choose the data, even if you don’t like the consequences of said data.
  • Skepticism is not the same Thing as Cynicism. Skepticism is placing doubt on something; cynicism is being pessimistic about it.  For example, I am skeptical that we are going to get rid of nuclear weapons, but I’m not cynical about it.

Economics

  • Greg Mankiw, an economics Professor from Harvard, has a blog based on his economics classes.  This particular blog deals with the top ten books that he teaches for his class.  I liked how he polled his students at the end of the class:
  • I also asked the students how their views had changed over the course of the semester. Those who started out liberal said they came to appreciate market mechanisms more. Those who started out conservative said they came to appreciate the market’s limitations. In other words, after a few months of reading and discussing economics and public policy, most of them moved toward the political center and closer to agreement.

    I vow to read all of those books next year.

  • Big Business isn’t that bad. Most, but not all businesses, are in business because they have a product to sell.  If you have a certain demand on a product, they business will cater to your demand.
  • However, Paul Krugman is the man when it comes to economics.
  • Capital Punishment is bad economics. If you want to help the economy, I suggest states to abolish capital punishment.  Yeah, you can say that the criminal deserves to die.  But those are principles.  Sorry, but pragmatics trumps principles in my opinion.
  • Giving Aid to Africa Probably isn’t the Best Solution. It turns out that the leaders of the country just steal the money which makes the people of the country grow poorer.
  • Taxes! Taxes aren’t that bad. In fact, they’re quite beneficial.  But if you want, they are beneficial to you as well.
  • We are not Homo Economicus.  Sure, there are some people who live out their whole lives making a profit, but not everyone is like that.  (To see why, look at my blog on Nudge.)  We are irrational on the economic stuff.  Thus, we do need help, but not someone making our decisions for us.  (If anything, this is probably the one that has seriously influenced my thinking most of all.  I’m seriously impressed with this.)
  • Just straight out, I need to study more economics.
  • Globalization isn’t that bad. In fact, it could probably help bringing about a more peaceful world.

Science

Politics

  • Should we Trust the Government? Yes, unless there’s a reason why we shouldn’t. I find it odd that people go about their daily lives and they trust strangers.  After all, we seriously doubt that some stranger is going to come in at Wal-Mart and start shooting the place up.  Those instances, are the exception.  It seems that the government is doing the same thing but people don’t want to admit it or else they’re only focusing on the bad.
  • President George W. Bush. He was probably the worst president in the history of the US and most likely, he lied.
  • On the other hand, Obama has been a huge disappointment. Obama has constantly said throughout his campaign that we need “hope and change” (whatever that means).  However, everything has been the same with the Bush administration except for four things: (1) health care reform, (2) overturning Bush’s policy on stem cell research, (3) a global warming summit (although that resulted nowhere), and (4) Obama is a much more eloquent speaker.  So far, the taxes, bailouts, and economies are the same.  (That’s something I don’t get, why weren’t there any tea parties during the Bush administration if their economic policies are the same.  That’s another story.)  If Obama keeps going down this road, he won’t win in 2012 and his presidency will be seen as a failure.  His administration says that all of this is needed because things would be worse off if they didn’t do the bailouts.  Bailout = recession; no bailout = depression.  Recession is better than depression.  Therefore, we should do the bailout.  I can understand this argument.  But why not tell the American people this?  It’s as if the Obama Administration is saying, “Trust us and everything will be ok.”  Here’s the problem: the American people are starting to lose their trust in the government.  Thus, you need to show them that you can be trusted.  Constantly saying “Trust us” is just as bad as a rhetorical sophist.
  • Republican will die, unless they do something drastic, like head towards a libertarian route and get rid of the Religious Right baggage.
  • Orwell is good, but we must never forget Huxley.
  • Conservativism has a rich history and is more complex than I Thought. Unfortunately, I doubt anyone will want to learn about it and see why they are conservative.

Teaching

  • I must realize that it’s impossible to teach the material to everyone.  I can’t make everyone care about the material.  It’s up to the student if s/he wants to learn the materials.
  • Continue to teach existentialism. I’ve noticed that people aren’t aware of how free they are unless they learn existentialism.  From there, they begin to care about the world they’re living in.
  • Implement the Socratic Method more often.  (However, this can have drawbacks.)
  • Presentations in Intro Classes are Pointless. When teachers always made students to presentations, I’ve often thought that they were pointless.  But I wanted to see if there was any value to it so I tried it on my Humanities class.  I’ve realized something.  They are pointless!  Student presentations are ways to simply waste time because the teacher doesn’t have enough material to teach.  I had to take out a lot of material just so that I could fit in student presentations.  They’re worthless!  Thus, anyone who wants to have student presentations in an intro class are simply lazy teachers.
  • Ideology Trumps Logic. People would rather hold on to their beliefs, even if it makes them illogical. Thus, Clifford’s article “The Ethics of Belief” is vital to read.  This applies to other fields like health care, for example.
  • When it comes to convincing people, Hume and Marx are closer to the truth. Logic hardly changes peoples minds.  Hume says that our ethics (and hence the things we value) are based on emotion.  Thus, for Hume, if you want to change people’s mind, you must appeal to their emotional strings.  For Marx, our values and our whole ideals comes from our economics.  Thus, if you want to change people’s minds, you cannot change their ideology.  Instead, you must change the structure of economics.

Personal

  • This is my last year in Utah. Take advantage of it.
  • The point of philosophy isn’t to be clever, but to live the good life. The only way to live a good life is to figure out what to believe, why I believe it, and to see if my views are consistent.
  • In personal relationships, it doesn’t matter what they think, say, or believe.  All it matters is what they do.
  • The words “I love you” is tricky business. But then again, love is always a tricky business.
  • Keeping and Dissolving Friends. I’m actually writing a paper about this.  Keeping friends is easy, but they seem more like acquaintances.  Dissolving them is harder, but it’s for the best sometimes.
    • Just because people happen to like each other, that doesn’t mean that it’s a perfect friendship.
    • Perhaps perfect friendship doesn’t exist anymore.
  • Women have it hard, but don’t assume the men have it easy.
  • If I start to feel like I’m certain about a certain issue, always end it with “. . . but I could be wrong.” Always read the opposite side.  The truth could be there and you never expected it.  I’ve always made fun of Glen Beck and Sean Hannity but I’ve never watched a full episode of them.  Thus, I will watch one full episode of each of their shows to get a full opinion.
    • Proving someone wrong only seems to work in an academic setting.
    • Great advice from economist Steven E. Landsburg: “Argue passionately for your beliefs; listen intently to your adversaries, and root for yourself to lose.  When you lose, you’ve learned something.”  Again, he mentions that when your opponent makes and argument that you don’t understand, don’t say to yourself, “He doesn’t know what he’s talking about.” Instead, say, “I have failed to understand him.”
  • There was never an age of the Ideal Marriage. The 1950’s were not a great period.  In fact, it was probably the most stressful.
  • No matter how nice I am, people are always offended when I prove them wrong.  I don’t try to be.  But it’s hard to say, “You’re wrong and I’ve proved you wrong.  But please, don’t be offended by it.  In fact, you should be happy because now you have gotten rid of a false belief!”
  • Things are funnier when there are more people. Try watching Superbad or The Hangover by yourself.  Now watch them with a group of people.  Why is it that a group of people makes the movies funnier?  Do we laugh because other people do?  But I’ve noticed that we often look at each other to see their reactions to the comedy.  They laugh, therefore I laugh.  How odd that comedy gets funnier when there’s more people around.
  • Being Passionate about Something is a Double-Edged Sword. Sometimes, I envy people who are extremely passionate about something.  There are people who are way into cars, sports, computers, politics, religion, and other sorts of hobbies.  Me?  I guess I’m passionate about making logical arguments.  (I know, that seems like a paradox.)  Being passionate about something is great because that’s how you see a meaning for living: it’s something that you’re willing to live for, and perhaps willing to die for as well.  I, however, can’t see myself dying for something.  As Bertrand Russell once said: “I would never die for my beliefs because I might be wrong.”  For me, I simply can’t understand why anyone would die for an idea, or even a belief.  Dying for other people, yes, I can see that.  But not for a belief.  Being passionate about something seems to give up the idea that you might be wrong.  I see this all the time.  The more passionate someone is, the more unlikely to budge.  Thus, what can one do?  On the one hand, being passionate about something gives one meaning and their perspective of the world is revolved around this idea.  On the other hand, it seems to bring about a way where the world must be this way.  Being logical is perceived as arrogant or even agnostic because it’s seen as a fence-sitter.  Like I said, I sometimes envy people who are passionate about something, but logic usually overpowers my emotions.
  • Never settle. No offense to my married friends, but I don’t think I can see myself getting married, at least anytime soon.  Marriage always entails a sense of “settling down,” whatever that means.  And when I think of settling down, I always think of the “pre-marriage” as the adventurous person, one who always takes risks and adventures, always does the traveling and pursuing whatever goals they can accomplish.  But by “settling down,” it entails that the adventures are over and now it’s time to relax and take it easy.  I’m not the type that can simply “relax.”  I always have to do something–whether it’s reading, writing, learning about the world, conversing with people, or even discovering about the world by experiences.  Life never stops.  Sure, you can still live by being a couch potato.  But that’s not truly living, that’s just simply surviving.  Anyone can survive; it takes guts to live.  A story: John Dewey, a famous pragmatic philosopher in the 1930s told a group of people about how to live.  An elderly woman approached Dewey after the lecture and she said: “Mr. Dewey, you describe life as though one climbed a mountain to the top and then descended, only to climb another mountain to the top.  Mr. Dewey, what happens when there are no more mountains to climb?”  Dewey answered back: “You die, Madam!”  To me, never having any mountains isn’t just a physical death, but it’s a death of living life.  It’s where one begins to “settle.”  I will always climb mountains until I die!
    • This is probably why I’m more of a “doing” philosopher rather than a “being” philosopher.
    • I think another reason is because I don’t like “relaxing.”  To me relaxing = laziness.  I know that they’re not the same, but the way I see it, life is extremely short.  Why would I want to waste it on relaxing?  In fact, I often feel guilty when I relax or when I’m doing nothing.  I must always do something because I want to experience as much as I can.  Doing nothing bothers me.  I can’t relax.  Paradoxically, relaxing stresses me out.  I have to constantly do something.
    • I don’t think I’ll be a good Taoist.

And finally. . .

Don’t Become Such a Philosopher

Have you ever had a religious debate where the other person had the totally opposite view as you?  Did you convert that person?  Did that person convert you?  The answer is probably no.  Always look at the context.  You must always do philosophy, and not merely show off the knowledge.  However, one must never stop thinking. Getting people to think is always rewarding, but it is up to the other person if they want to do the thinking, to gain the wisdom.  In other words, I can show them the way out of the cave, but it is up to them if they want to leave it.

Posted in Capitalism, Culture, Economics, Education, Ethics, Existentialism, Experts, Friendship, Government, Logic, Love, Politics, Pragmatism, Relationships, Religion, Respect, Same-Sex, Teaching, Values, War | Tagged , , , , , , , , , | 8 Comments

Frank Schaeffer is “Crazy for God”

In the latest Point of Inquiry, Frank Schaeffer talks about how his father started the Religious Right movement and how it “hijacked” the Republican Party from the late 1970’s to the present.  He also explains how the latest rhetoric about the Democratic plans have come from the Religious Right, and the rhetoric has been so ingrained in the public that it’s now seen as “truth.”  Taken from the site:

He draws a direct line from the worldview promoted by the Religious Right to the Tea Party movement, the rise of Glen Beck and Sarah Palin, the recent murder or Dr. George Tiller, and the use of biblical passages calling for the assassination of President Obama.

He also talks about how his father created a monster: that he wanted to introduce religion into politics but then later followers (i.e. Pat Robertson, Jerry Falwell, James Dobson) have went further than his father intended.  Anything against the Religious Right must fail even if it’s a good thing for the whole.  A really interesting interview that all people needs to listen to and perhaps read the book as well.

Posted in Politics, Religion | 2 Comments

Peter Singer on Charities

I got this on my philosophy calendar:

[Peter Singer] poses a deal to earn money to buy a new TV by “selling” a homeless child to a corporation that will harvest his organs for transplants.  Way bad, we agree.  But, Singer argues that anytime we buy a new TV in lieu of sending money to a charity that protects homeless children, we’re doing the same thing.

Any thoughts on this?  It’s an interesting philosophical thought process.  Singer has revamped his argument in a book called “The Life you can Save” which is on my reading list.

(Note to Victor: I’d like to hear your opinion about this.)

Posted in Peter Singer | 6 Comments

The Known Universe

Simply Amazing.  The Known Universe zooms out from Tibet to the limits of the observable universe.  Better yet, watch it full-screen in HD.

What’s even more amazing is that everything is in scale unlike other models that shown previously.  Thus, it’s not a dramatization, it’s a map; the positioning data was pulled from Hayden Planetarium’s Digital Universe Atlas, which is available for free download.

Posted in Science | 2 Comments

Some Solutions to the Global Warming Crisis

This is an interesting Pascal’s Wager type of bet.  So instead of saying if Global Warming is true or not, he’s saying let’s make a bet on how we should act.  In fact, the truth about Global Warming becomes moot.  It’s an interesting argument and it’s hit over a 750,000 hits on youtube that he wrote a book about it expanding the argument.  He even wants people to challenge him so that he can improve his argument.  I’ve got some replies, but I have to admit, it’s a pretty ingenious argument.

The speaker is a high school science teacher and he just simply uses pure logic.

Here’s the video to check out:

There’s also some stuff I want to add from Thomas Friedman’s book Hot, Flat, and Crowded:http://kellylowenstein.files.wordpress.com/2008/12/hot_flat_and_crowded.jpg

  • If Global Warming is a Hoax, then it’s the most wonderful hoax there is.  It makes us healthier, we have more efficient energy, and it innovates new green ideas.
  • In terms of globalization, if we’re not going to be the leader in this “green” technology, you can bet that China will.  In fact, they’re already starting and within 10 years, they’ll be the number one in solar cells and they’ll have a leg up in the “green” technology.  Indeed, Friedman sees the 20th century as the globalization century.  The 21st century will probably be known as the climate-control century.
  • Perhaps this is the one that should really grab people.  Right now, we’re fighting this War on Terror.  If you look at the world closely, the Taliban are being funded through Saudi Arabian people.  They’re rich and so they can throw their money at anything they want.  But here’s the dumb part, guess how they’re getting their money?  People are buying their oil.  And who are the number one consumers of oil?  AMERICA.  Thus, we are fighting and supporting the War on Terror simultaneously.  That is just plain stupid.  If we focused our energies on not using oil products like more efficient cars, or ever using full electric cars, the Saudi’s will be worried and they can no longer support the Taliban.
  • Along with this, we have been very lack with Saudi Arabia’s lack of human rights.  It’s because we turn a blind eye to a country if we need a resource from it.  But if we no longer need oil, then we begin criticizing Saudi Arabia and since our policies have a lot global influence (especially after going green), they’ll have to be influenced by us.  Sure, it’s not logic or reason they’re listening to, but when it comes to politics, we must be pragmatic.  This is probably the most pragmatic argument I’ve heard that requires us to go green.  Indeed, we owe it to the world.
  • With this new innovation, there aren’t going to be a few losers and a few winners.  Because the world is so globalized, EVERYONE is going to win or EVERYONE is going to lose.

In other news, Fareed Zakaria weighs in on his views about it and I think it’s spot on by comparing with insurance.  He also invites two people to discuss global warming and how much cost we should implement:Bjorn Lomborg and Paul Krugman.  They are on opposite sides of the spectrum but very intelligent folks and the argue their side really well.  Check it out here.  (Note: stop it at 12:35.)

Posted in Environment, Global Warming, Logic, Science | 14 Comments

Brain Rules!!

If you go here, you can check out some brain rules.  I’ve read the book and it’s a very fast read.  I’ll also include it on my blogroll.

The point behind all this is that we have an idea how the brain works.  Thus, we should take advantage of those rules.  For example, out of all the senses that helps us with memory the most is vision.  Thus, the author recommends that when people do powerpoints, they should include a lot more pictures and a lot less text.  He has some really great ideas pertaining to exercise as well.

Go to the website, then click on “The Rules” on the left-hand side.  Or just explore around.  It’s a great site.

Posted in Books, Education, Health | 2 Comments

The Foreign Policy Top 100 Global Thinkers

Here. I’ll have to look some of them up.

Posted in Economics, Experts, Politics | Leave a comment

Book Review: Nudge by Richard H. Thaler and Cass R. Sunstein

Suppose that you were in charge of a school district and you were given the responsibility of making the students healthier.  Thus, you have a few options:

  1. Take away all of the candy and soda from the vending machines.
  2. Serve the desserts in the lunch line first instead of last.
  3. Make the students eat in the cafeteria instead of an off-campus period during lunch hour.
  4. Close the vending machines down during the lunch hour.
  5. Make a separate dessert line from the regular lunch line.

Now with these options, let’s say these have been the respective responses:

  1. From option 1, the students complain and no one is happy.
  2. From option 2, kids eat the dessert first, which went against your plan.
  3. From option 3, some students complain, but it may force others to prepare a lunch at home, which might upset some already busy parents and the already stressed students.
  4. From option 4, the students may complain because those are the peak hours of getting food.  Plus, the school might lose some money because no one is buying food from these vending machines.
  5. From option 5, there may be some inconvenience, but surprisingly, the kids get healthier.

Now this isn’t just some thought experiment.  You really do these five options in five different schools and collect the data and you discover that option 5 is the most practical choice without losing a huge benefit.  Thus, you “nudged” the kids into eating healthy.  But why the word “nudge”?  The authors claim that they are for a new term that goes with nudging: libertarian paternalism.  We often think that just maximizing choices is the best option.  However, the more choices one has, it just makes things more confusing and it could make things worse.  Thus, there should be a choice architecture where you’re nudged toward a certain route.http://abeonaforum.files.wordpress.com/2009/04/nudge.jpg

Notice that you’re not forcing the kids to not eat dessert in option 5.  The students can still eat dessert if they wish.  There is no separate cost, it still comes with the meal.  But perhaps the students don’t want to get into a second line for some reason.  And this makes the students healthier.  Thus, the choice is still open (hence the libertarian portion), but you have nudged them into not getting that dessert (hence the paternalism portion).  Basically, this is what the book is about.  It’s about building up a choice apparatus to nudge the people around you into the optimal choice even though there are other choices around.  You can think of it like putting candy at the cash register instead of fresh fruit.  By putting candy there, you have a choice of getting that candy or not, but the store is nudging you into getting that candy.

Now that we’ve got the concept: let’s apply this to finances, schools, health, and marriages.

Finances

When it comes to saving money for retirement, stocks, school loans, social security, etc. there are many options on what to do.  Unfortunately, most people just pick the default option (which is basically don’t do anything).  The authors recommend that the default option should be something else.  For example, when it comes to 401(k) plans, you have to fill out a form just to get that started.  But what if you automatically get the plan, and if you don’t want the plan, all you have to do is put a check mark next to the question “Check here if you don’t the company retirement plan” or something like that on your application form?  It gives advice on employers and businesses to nudge people to a certain choice.  It doesn’t really apply to me because I work in the public sector, but surely this advice would be beneficial to governmental jobs and the government should use this.

With stocks, never invest all of your paycheck into the company that you work for.  Enron is an example of that going wrong.  Don’t put all of your eggs in one basket in other words.  However, you should put the same amount of eggs into different baskets.

Health

At this point, I think you’re getting the idea: if you give people too many choices, they have no idea how to begin because there’s no guide on what to choose.  Thus, you must give them some nudges and design a choice architecture to make them have good choices.

The authors begin with Medicare.  President Bush proposed Plan D which literally gave seniors over 100 plans.  That’s a lot!  Even the experts in these fields were confused on the differing plans.  Thus, many seniors didn’t sign up and they got the default plan, which was basically one assigned at random.  The authors propose that the default shouldn’t be chosen at random, but an intellectual assessment so that the plan works best for each person.  They give other ideas too but I won’t go into details here.

With organ donations, they get into some controversy here.  The default has always been thus: You’re not an organ donor unless you specify that you want to be one.  The authors suggest to change the default: You are an organ donor unless you specify that you don’t want to be one.  They’ve done studies and organ donations increased about 80%.  This would save lives.

In terms of environmental concerns, they think the cap-and-trade is good in principle, but it goes against the idea of libertarian principles.  Thus, the bring up the whole idea of taxes.  For taxes, it’s an incentive to not do a certain activity.  They suggest to put a tax on gas.  This will create an incentive consumers not to use gas that much or else buy a hybrid.  At the same time, this will create an incentive to automobile makers to make more fuel-efficient cars.

They also suggest to create a Toxic Release Inventory which means that companies must report to the government what hazardous chemicals they are using.  This is released online.  With this, each company gets a grade but you still choose in buying those products.  For example, there are grades with meat: Grade A choice cut steak, or Grade A.  The former is better, but you can still choose to buy the latter if you want.  The same should be done with companies that produce pollution: give them grades.  With cars, the authors suggest putting a sticker on each car to show how economic the mpg that vehicle is.  Thus, you can see clearly how fuel efficient the car is, but you can still choose to buy a Hummer if you want.  There were other creative nudges as well that you should check out.

Freedom

We start off with education.  The authors are for vouchers, but with a revised stipulation.  They suggest that the parents puts their children on a list of the schools of their choice.  With this, it requires them to research the many schools around their area.  Also, the law could possibly be changed so that one cannot graduate from high school unless one submits an application to a college, even a community college.  An experiment was done in Texas.  The enrollment (and not just the application process) of a community college went up 45% in one year.  That’s pretty impressive.

With health care, they have a simple, yet interesting rule that I’m still thinking about: you should have the option to waive your right to sue.  The reason why health care is so expensive is because most of the premiums are going toward malpractice suits.  But if you waive your right to sue, then your insurance will be much cheaper.  Now this doesn’t have to be all-or-nothing deal.  If you’re going to get a major operation, you’d probably want to pay the full premium.  If you going to just get your cheek swabbed, you’d probably want to waive your right to sue.  Thus, insurance would be much cheaper.

When it comes to marriage, it should be privatized.  Thus, if you want to get married, you must follow the rules of the religion or institution.  If you want the legal benefits, then you must go to the courthouse and get that figured out.  It doesn’t matter if you’re gay or not.  Thus, marriage can be private, and the legal benefits are public.  On a side note, I have to say that this is a good solution.  Think about this: how would you feel about the government getting involved in your baptism, your temple recommend, your Catechism, or your Bar Mitzvah?  You don’t like it huh?  So why do you like the government getting involved in something as personal and private as a marriage?  That doesn’t make any sense.  Therefore, the government should get out of marriages altogether.  They shouldn’t be in the business of handing out marriage licenses.  Only private institutions should do that.

In the end, the authors conclude with some objections and their replies to them.  I thought the objections were very weak.

If anyone knows me, I can’t stand economics.  So if I like a book about economics, that’s really saying something.  This book was great.  It really trains your thinking into “we must change the default position for the better” perspective.  Overall, it won’t affect me.  However, I believe everyone in government and business should read this.  More than that, it should be required reading in political science, business, and economics classes in college.  I can’t recommend this enough.  It’s a great, and fast read.  Plus the authors provide some humorous anecdotes as well.  Hopefully, this will take on instead of holding onto the tired ideologies of liberalism or conservativism.

You can check out their website here and possibly offer some nudges of your own to the authors.  Their blog also offers updated nudges on how to improve society.  Behavioral economics is awesome!

UPDATE: In their paperback expanded edition, they add another chapter of nudges that could be implemented are have already been implemented.  I’ll add some that really captured my eye:

  • Limos for drunks.  Drunk driving is a problem.  That’s why a city in Michigan has a company where the drunk can rent a limo for $20.  It’s fairly cheaper than a taxi (sometimes) and it makes you look classy.  They tried this and drunk driving went down 34%.
  • Showing calories in Chain Restaurants.  New York made it a law where chain restaurants had to show how much calories their food items were on the menu.  Thus, you can still choose to eat the food, but you’re nudged into not eating it.
  • Recycling.  A company in CA has made people in a certain neighborhood aware of their recycling habits.  When you receive the bill, it shows how much you’re recycling compared to everyone else in the neighborhood.  It turns out that the reason you recycle is because everyone else does too.
  • Putting a sticker in a urinal.  Men usually don’t aim when they pee and so they make many messes, which causes more clean up, which means more usage of hazardous chemicals, etc.  By putting a sticker inside the urinal, the men have something to aim at and it makes the clean-up much easier.  They’ve tried this in a lot of countries and the results are amazing: the cleanup is less in ALL of those countries.

What can I say?  Nudging is awesome.  It has seriously influenced my way of thinking.

Posted in Book Review, Economics, Education, Environment, Experts, Government, Health, Libertarianism, Politics, Same-Sex | 3 Comments