Evidence and conventional wisdom

I’ve been looking over some posts from the bright dawn days of blogging in the early 2000s. One thing that struck me is that some ideas I put forward as unconventional but evidence based, are now fairly widely accepted. In view of the widespread, and justified, concern about a post-truth era, this seems encouraging, and worth investigating. A few examples

  • In this post on equality of opportunity from 2003, I noted that “contrary to popular belief, there is less mobility between income classes in the United States than in European social democracies.” I was drawing on a 1999 book, The Real Worlds of Welfare Capitalism by Goodin, Headey Muffels and Dirven, which I’d reviewed a couple of years previously. In 2009, when I started work on Zombie Economics, I wrote about this again. However, I soon realised I was pushing at an open door. The decline of social mobility in the US had become part of the conventional wisdom.
  • In 2004, some of the first studies of charter schools were coming out, showing that, contrary to the widely-shared expectations of education reformers, they weren’t showing any clear gains in student performance. I wrote about this fairly cautiously, noting that studies of this kind often fail to find any effect. As it turned out, however, the findings were replicated, particularly in the case of for-profit schools. This piece in the Washington Post (which used to be associated in some way with the for-profit testing industry, IIRC) shows how much the tide has turned against charters, and even more against for-profits.
  • Here’s a post on minimum wages, drawing on the work of David Card and Alan Krueger (whose tragic death recently was a big loss to the economics profession). from the early 1990s. By then, the formerly orthodox view that minimum wages had big negative effects on employment was sufficiently out of favour to be revived in Slate (then famous, or notorious, for “contrarian” views that generally tended to support the establishment).
  • Finally, I wrote a couple of mildly snarky pieces about the “Reading Wars” between phonics and whole language. This was one of the relatively rare cases in which the emerging evidence supported the cultural right. It’s pretty hard nowadays to find unequivocal supporters of whole language.

Looking at these examples, there’s a gap of about 10 years between the time the evidence emerged (or at least, emerged prominently enough for me to take notice) and the time the conventional wisdom adjusted. That doesn’t seem too bad. As the great replication crisis has shown, it’s unwise to take too much notice of an individual study on any social science topic.

Unsurprisingly, most of the examples above are cases where the emerging evidence was consistent with my broad political principles (I was never engaged in the Reading Wars, though I mostly lined up against the phonics advocates on other issues). I’d say that’s because most of the evidence we’ve had in the past twenty-five years or so has gone against the beliefs of the political right, who have had to retreat from the triumphalism of the early 1990s. But it’s obviously possible that there is confirmation bias at work. I’d be interested to see suggested examples of evidence shifting the conventional wisdom to the right in this period.

Why were the Turks our enemies in 1914? Because Britain refused their offer of alliance in 1913

Both my grandfathers fought in the Great War, one in the Middle East and one in France. They survived (or I wouldn’t be here), but one was badly wounded in a gas attack. I’ve thought about this on Anzac Day for most of my 60+ years, but last year I learned something I hadn’t thought about and, as far as I can tell, hardly anyone else in Australia knows. We were only fighting Turkey because the British government refused their request for an alliance. I wrote about this last year, and I’m reposting it now.

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The weakness of dictatorship: China and coal

Global Energy Monitor, Greenpeace India, and the Sierra Club have just released the fifth annual Boom and Bust report, tracking the global coal plant pipeline. The news is mostly good, with three glaring exceptions, all related to China.

First, as reported last year, provincial governments appear to have restarted construction on a number of coal-fired power plants, previously suspended on the orders of the central government. Second, the China Electricity Council, which represents the country’s power utilities, has proposed setting the country’s coal capacity cap at 1,300 gigawatts, a level that would allow 290 gigawatts of new capacity to be added—more than the entire coal fleet of the U.S. (259 gigawatts). Finally, Chinese financial institutions, mostly state-owned are the last large scale backers of coal-fired projects at a global level.

It remains to be seen how this will play out. Perhaps the central govenment will pull the provinces and state-owned enterprises into line and override the Electricity Council.

The bigger lesson here is that even though China is well on the way to becoming a personal dictatorship of Xi Jinping, and despite the supposedly Leninist organization of the Communist party he leads (the official phrase is “democratic centralism“) most of the real power in the country is exercised by local magnates, just as it was in the days of warlord rule. That seems to be characteristic of dictatorship.

Over the fold, the good news

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Climate instant reax

The Australian Science Media Centre provides responses from scientists and other experts (including me as an economist) to news releases about science-related issues, including climate. A couple of recent examples;

A very quick response to Labor’s climate policy. My take

“As an oil importing country with no domestic car manufacturing industry, Australia is well placed to make the shift to electric vehicles proposed by Labor. A crucial step towards this goal will be the restructuring of the National Electricity Market, and the design of charging infrastructure to encourage flexible recharging of electric vehicles to match peaks in the availability of renewable energy.”

and one on the very depressing Global State of the Climate Report, where I said

“Following the depressing news from the International Energy Agency that global CO2 emissions rose to a record high in 2018, the WMO report confirms that severe impacts of climate change are already being felt.  This scientific analysis only confirms what is evident to anyone who examines the evidence with an open mind: the global climate is changing in ways that are unprecedented in human experience. Sadly, many of our leaders do not have an open mind. Rather, they are committed to denying the findings of climate science at any cost, in order to defend sectional economic interests and backward-looking identity politics. Australia in particular needs urgent action to achieve substantial reductions in emissions over the next decade.”

The triumph of Trumpism

The recent chaos around One Nation (including Fraser Anning, reactions to the Christchurch atrocity and the Al Jazeera sting and the reactions to it, show how thoroughly Trumpism has conquered the Australian right. Most obviously, any doubts anyone might have had about Hanson and One Nation have been resolved. She and her party are racists (or in some cases, opportunities riding the racist bandwagon) trading in lunatic conspiracy theories and the rhetoric of the terrorist alt-right. Nothing really new here.

The truly revealing outcome is the reaction of the mainstream right. It’s divided into two groups: those (most notably Tony Abbott and the entire National Party) who have maintained their support for an open alliance with Hanson, and those like Morrison and (Oz columnist) Paul Kelly who have taken the line: Racists are bad, but the Greens are worse.

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Ultra low wage growth isn’t accidental. It is the intended outcome of government policies (updated)

That’s the headline for my latest piece in The Conversation, my contribution to a three-part series mini-symposium on Wages, Unemployment and Underemployment presented by The Conversation and the Academy of the Social Sciences in Australia.

Key quote

For more than forty years, both the architecture of labour market regulation and the discretionary choices of governments have been designed with the precise objective of holding wages down. These policies have been highly successful.

Update: Paul Krugman has a recent piece in the New York Times, also making the point that technological progress isn’t responsible for the falling wage share.