Month: February 2017

Sports betting and corruption

John Quiggin18 Comments

One of the sadder stories last week was that of Wayne Shaw, an English footballer who was forced to resign for eating a pie mid-match, knowing that a bookmaker had laid odds against this. Apart from the absurdity of the case, there’s an obvious problem pointed out by someone I read on Facebook. Once he became aware of the bet, he would have been just as guilty or innocent if he’d chosen not to eat anything, and thereby help the bookies instead of the punters.

More generally, I find it impossible to imagine that sports betting isn’t causing widespread corruption. Take the popular bet on who will score the first try in a match. Suppose Player X, who knows his friends have bet heavily on him, has the choice between going for the try himself, or passing to a team-mate in an arguably better field position. The problem is obvious.

Less obvious is the case of Player Y, whose friends have bet on X. He can choose to pass left, towards X, or right, in which case Z has a chance to score. Such decisions must be made all the time, and it’s far from obvious which is the right one. So, going for the try yourself or making the play that helps your friends is nothing like throwing the game (the only profitable way to cheat in the days before these exotic bets). And, unlike match fixing, it seems to be just about impossible to prove wrongdoing.

I don’t have a solution, except to steer clear of contests where betting is a big deal. I do, however, have a hot tip for those who follow age group triathlon and can find a betting market. Unless I’m in a team, bet against me in the 60-64M category, at just about any odds you can get.

Update That’s the best individual response. The policy response, I think, is to legalise and encourage welching. That is, refuse to enforce gambling debts through the legal system and apply strict liability to attempts at collection through strong arm tactics, with a presumption of guilt against the creditor even if they can’t be tied directly to the enforcer.

Decent conservatives

John Quiggin25 Comments

Since Trump’s election victory, there’s been a lot of concern trolling (and maybe some genuine concern) that resistance to Trump will alienate decent conservatives who held their noses while voting for Trump, but might be attracted away from him by a suitably respectful presentation of a centre-right Democratic agenda. A notable recent entry is a piece in the New York Times by Sabrina Tavernise, which profiles three such voters, only one of whom has any criticism to make of Trump. The others complain that liberals have been mean to them, but make it pretty clear they would vote for Trump regardless. As is inevitable in such a piece, Jonathan Haidt gets a run – he’s the only expert quoted by name.
Read More »

Bastiat anticipates climate science denialism

John Quiggin26 Comments

I’m working on the environmental policy chapter of my book-in-progress, Economics in Two Lessons, which is a reply to Hazlitt’s Economics in One Lesson, which in turn is a repackaging of Bastiat’s What Is Seen and What Is Not Seen. Hazlitt was aware of the difficulties posed for laissez-faire by pollution, and chose to avoid the issue. But, on Googling Bastiat + pollution, I came across a remarkable package in which Bastiat anticipates the climate change debate and takes the denialist side in advancee.

Read More »

My letter to Paul Offit (updated)

John Quiggin5 Comments

Dear Dr Offit,

I have admired your work in support of vaccines, and your willingness to face down the anti-science attacks on vaccination. I was, therefore, greatly dismayed to read your column in the Daily Beast recently, reviving a set of discredited attacks on public health and environmental science, centred on the spurious claim of a global ban on DDT. I have linked a blog post and article covering the key points, which you can easily check for yourself

https://johnquiggin.com/2017/02/16/a-double-disaster-for-science-and-public-health/
http://www.prospectmagazine.co.uk/magazine/rehabilitatingcarson

As I note in the post, giving credence to discredited anti-science attacks like those of Stephen Milloy is a gift to the anti-vaccination movement which they are already exploiting. I urge you to investigate this issue more carefully and publish a follow-up column setting out the real situation.

I would be happy to correspond further and send you more information if needed.

Sincerely
John Quiggin

Update 21/2/17: I received a fairly terse reply to this email, reiterating a number of spurious claims about Carson. My email in response went unanswered, as did a followup. This is disappointing, but if there’s one thing I’ve learned in 15 years of blogging it’s that changing anybody’s mind is very difficult. I’ve done my best to apply this lesson to myself and be more open to new evidence – long term readers can judge if that’s been successful.

A double disaster for science and public health

John Quiggin31 Comments

Zombies never die, and that’s even more true of zombie ideas. One of the most thoroughly killed zombies, the myth that Rachel Carson is responsible for millions of deaths from DDT, has recently re-emerged from the rightwing nethersphere where it has continued to circulate despite repeated refutation. That wouldn’t be worth yet another long post except for the source: Dr Paul Offit, a prominent pediatrician and leading pro-vaccination campaigner, writing in the Daily Beast. Offit’s revival of the DDT ban myth is a double disaster for science and public health.

Read More »

Speaking in Auckland- After Reform: What comes next

John Quiggin12 Comments

I’ll be speaking to the Aucklalnd Fabian Society on Thursday 16 Feb (I already spoke on Wellington but didn’t around to posting Details here.

Since the 1980s, economic policy has been dominated by a policy agenda referred to by its proponents as “microeconomic reform” or simply “reform”, based on the ideas of free trade, privatisation and reductions in the scale and scope of government activity. This agenda has exhausted its political support and run out of ideas. It offers no answers to the policy challenges of the 21st century, including growing inequality, financial fragility and the demands of the information economy. This presentation will address the question: What comes next?

Easytax redux redux

John Quiggin29 Comments

I got a brief run in the Murdoch press regarding Pauline Hanson’s revived proposal for a 2 per cent tax on all transactions (floated 20 years ago as “Easytax“). I was reported as follows: “University of Queensland school of economics professor John Quiggin said a 2 per cent tax would destroy small business and see a collapse in government ­revenue.” and the story was headlined “One Nation policy would ‘collapse the economy’” The headline is an exaggeration, but the quoted passage gets my opinion right.

Easytax is an example of a “cascade” tax, common in Europe a century or so ago. The point is that the tax rate is applied to the whole value of each transaction along the chain from primary producer to consumer. For a big firm, like Woolworths, the answer is simple: integrate backwards along the chain by taking over your suppliers. Then you pay the tax only once at 2 per cent. Small businesses, who can’t do this, end up paying the tax themselves, on goods that have already been taxed many times. So, they go out of business, and the total value of transactions falls far below the level used in the original calculation that a 2 per cent tax would be sufficient. Hence, government revenue collapses.

It was precisely because this process was happening that the French (the innovators in this field) dumped the cascade tax in favor of a value-added tax (VAT), the same model used in the GST. They were followed by the rest of the EU and then most of the world, except the US, which still relies on retail sales tax (levied only once, but still messy and narrowly-based).

The story also says “A spokesman for Senator Hanson said she had only advocated investigating the policy.” But the fact that such a nonsense idea is still part of One Nation thinking gives the lie to the suggestion of Hanson’s coalition partners in the LNP that this iteration of One Nation is different from the last. It’s just as racist and ignorant as ever. It’s not Hanson that has changed, but the LNP which is now indistinguishable from One Nation.

Why we should put ‘basic’ before ‘universal’ in the pursuit of income equality

John Quiggin30 Comments

That’s the title of my latest piece in The Guardian. There are two key points

First, in terms of effective tax rates and tax paid, any means-tested Guaranteed Minimum Income can be replicated by a non-tested Universal Basic Income, and vice versa

Second, for a number of reasons, it would be better to begin by expanding access to an adequate Basic income (in Australia, the Age Pension is an obvious benchmark) rather than starting with a small universal payment and then increasing it to a level sufficient to live on.