A good Thanksgiving podcast & book

I highly recommend listening to this week’s EconTalk podcast with guest A.J. Jacobs.

He and host, Russ Roberts, discuss Jacobs’ new book, Thanks a Thousand: A Gratitude Journey.

The book is about Jacobs’ experiences in attempting to thank all the folks who make his morning cup of coffee possible.

He starts at his favorite coffee shop and works back to thank the folks who deliver the coffee to the store, roast it, keep the store pest free, grow the coffee and even the folks that create the safe drinking water that makes up over 98% of his morning joe, to name a few.

The book is another take on the economic classic essay, I, Pencil, which explores the amazing coordination among large numbers of people who make something as mundane as pencils.

At the end of the podcast, Jacobs recommends being as creative as possible this Thanksgiving when considering what you are grateful for.

I, for one, am thankful for the price system, which enables the coordination among billions of folks and encourages them to make things that improve my life, like pencils and coffee.

Another good bit of advice that Roberts and Jacobs discuss is looking for the good. Russ recalled a bumper sticker, “Wag more. Bark less.”

Jacobs said he finds he has an inner Larry David and inner Mr. Rogers. Larry David looks for things to be annoyed about it. Mr. Rogers looks for things to be happy about and grateful for. He tries to encourage the inner Mr. Rogers more and good things happen.

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The source of emergent order

Robert Solow from this EconTalk podcast on Growth and the State of Economics:

We all know that a lot of the innovation occurs as a business process. I keep telling myself we also all know that a lot of innovation comes as a matter of dumb luck. You set out to solve problem A, and you fail totally to solve problem A, but you solve problem B that wasn’t in your head at all.

I’m not sure we ALL know that.

But, I do think that growth, innovation, improvement in the standard of living — whatever you call it — depends on how good we are at recognizing that we solved problem B.

I’ve been a part of many organizations that end up solving problem B, but ignore it because they are fixated on solving problem A.

I think this happens with R&D efforts in government and other bureaucratic organizations. They get so hung up on their preferred solution (e.g. solar power or wind power) that they ignore discoveries that don’t fall into their pre-selected, politically-correct categories.

How well a system allows the solution to problem B to propagate, I believe, is related to that system’s long-term viability.

Signals v Causes: Poverty

From the Introduction of the William Easterly’s book, The Tyranny of Experts: Economists, Dictators, and the Forgotten Rights of the Poor:
:

The technical problems of the poor (and the absence of technical solutions for those problems) are a symptom of poverty, not a cause of poverty. This book argues that the cause of poverty is the absence of political and economic rights, the absence of a free political and economic system that would find the technical solutions to the poor’s problems. The dictator whom the experts expect will accomplish the technical fixes to the technical problems is not the solution; he is the problem.

Think of technical problems as problems like not having medicine, food or the internet and technical solutions as providing medicine, food and the internet.

I’m looking forward to reading the rest of the book. I heard about it from this EconTalk episode with William Easterly and that discussion is worth a listen.

The Great Participation Trophy Debate

The participation trophy debate was briefly mentioned in the EconTalk podcast linked to in the previous post.

Those for participation trophies think it’s good for self-esteem. Those against say it doesn’t prepare kids to deal with failure.

I have a third view to consider: We put too much emphasis on youth sports.

Why do we care so much about the life lessons of youth sports and not so much about life lessons learned from other childhood endeavors, like playing video games?

Has anyone ever argued that the high trial-and-error failure rate in video games hurts a child’s self-esteem? No. Has anyone argued that winning or losing a video game helps kids deal with failure? No.

Yet, we all instinctively know a simple truth about video games: The more a kid plays them, the better he will get.

Play your kid in her favorite video game and she’ll wipe the floor with you. That’s because she has more trial-and-error experience at it than you.

That experience came with no pressure and no stakes. She didn’t have coaches and parents calling out their every mistake from a sideline. If she lost a game, she just started over, tried a different approach and eventually learned what works.

Yet, we don’t translate that instinct to youth sports. Parents and coaches hope for mastery, without recognizing how little time the child has had to master it, especially in unstructured, low pressure, low stakes ways.

Youth sports in the U.S. use to be viewed by parents more like video games are now. In some countries, they still are. Guys I play soccer with, who came to the U.S. from South America and Europe, tell me they spent a great deal of time playing soccer in their home countries and their parents nagged them to do something more productive, just like how U.S. parents nag their kids to put down the video games.

When I was a kid, the way we learned sports was different than today. It was a lot more like how kids these days learn to play video games — lots of low pressure, low stakes play. Why? Because parents didn’t care as much about sports then.

We had much more unstructured play where we played with family and friends. We played more often with older and younger kids, the older ones taught us the tricks of the trade, then we passed those on to younger kids.

We got creative and made up our own games and rules, a lot of times to help compensate for imbalances of playing with different ages and abilities.

The ratio of time spent in low pressure, low stakes unstructured play to the high pressure, organized play was much higher than today.

I played a lot of driveway basketball, mainly because I got bored watching I Love Lucy reruns. I won no basketball scholarships, nor was I scouted by the NBA and I’m usually the last picked at just about any pickup game.

But, if I went to a country where they don’t grow up playing driveway basketball, the locals may be as amazed with my unconscious fade-away jumpers as I am with the soccer skills my friends from Europe and South America display.

Even when we played organized teams as kids, it wasn’t a major event. Every parent didn’t go to every game. Often, parents took turns carting the kids to the game. We often didn’t have large crowds to witness our losses and we didn’t get ear fulls on the ride home for the mistakes we made in the game. Nor do I remember getting snacks.

And, that was okay. Playing was more for us kids and less about pleasing parents and grandparents. They just wanted us to stay in school and out of trouble. We weren’t worried about college scholarships, going pro or being sports prodigies.

I think that’s the major thing that has changed. Now, sports is more about the parents. I hear a lot of parents humble-brag about their kids playing “competitive” or “travel” sports, as if that means something. It does mean something. It means you are paying a lot more than the previous generation to have your child be mediocre at sports.

If you have a strong stance on the participation trophy debate, it may be a sign that you care about youth sports more than is healthy. Think about why you care more about that than you do your child’s video game or Lego building achievements.

Update: Mike M requested that I add the link to a previous discussion about what college athletes said their parents said to them. Here it is: Signals v causes in youth sports.

Post Note: Zemanta suggested the related article below about i9 Sports. I love this quote from the article:

Youth sports have become adult sports played by kids. Adults have sucked the fun out of youth sports, and our goal is to put fun back to the center.

 

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Emergent Order in The Lego Movie

Mild spoiler alert.

I loved the Lego Movie. I was floored with its treatment of emergent order. At one point the hero encouraged fellow Lego people to try things, no matter how stupid it sounds, no matter how much others ridicule it, because you never know, it just may work.

Made me wonder if Russ Roberts, John Papola or Nassim Taleb consulted on the screenplay.

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Party Planning vs. Raising Kids

Lant Pritchett uses a starfish/spider analogy to illustrate differences between bottom-up/top-down systems.

Steve Landsburg explained that people mistake central planning as being something like planning a birthday party. Based on this vision, they think it can work well. You just need good planners. Landsburg says that folks who make such mistakes simply can’t imagine the complexities involved when hundreds of millions of people are added to the mix, so even good planners won’t do well.

Russ Roberts recently distinguished between engineering and economics problems in a post on Cafe Hayek, building off the following Soviet joke:

Yuri Gagarin’s daughter answers the phone.  ‘No, mummy and daddy are out,’ she says.  ‘Daddy’s orbiting the earth, and he’ll be back tonight at 7 o’clock.  But mummy’s gone shopping for groceries, so who knows when she’ll be home.’

Of course, her Mom may be an avid shopper. But, the joke was meant to convey that centrally planning something as mundane as producing products that people want, at reasonable prices and making them available in nearby stores is a much more vexing problem than sending man into orbit. Prices do a better job of coordinating that effort.

I made a similar point in a follow-up to the Landsburg post, because I’ve heard too many people use the “If we can send a man to the moon, then we can do anything” fallacy.

Though, I didn’t distinguish it then as an engineering problem. That is an important observation. It’s also a good question to keep in mind when people start using the man on the moon fallacy, are we solving an engineering or economics problem?

But, I still think some folks may have a difficult time understanding exactly how an economics problem differs from an engineering problem. For many, both fall into one category: complicated. So, if we can solve one complicated problem, why not another?

I think it might help to go back to Landsburg’s party planning analogy. An engineering problem is like planning your kid’s birthday party. It’s straightforward (place, invites, plates, cake, fun, done) and it’s a relatively short time commitment. The short time commitment is important. Any longer and it might be harder to get grandparents to help clean up or for guests to come.

An economics problem is more (though still not quite) like raising kids. That’s much more complex than planning a two-hour party. It doesn’t end. It’s not easy.

Just when you think you figure it out, it changes. Why? Because kids are human and they go through phase. They have preferences. They respond to rewards and punishments — differently to different ones. They make decisions. They like what they like. They change. They will fight you. They won’t always do what you tell them. You need to let them make mistakes and learn for themselves, even though it is painful to do so.

Now, I say it’s not quite like an economics problem because people can do a good job of raising kids. Though, there aren’t many truth-telling parents who will say that it’s easy.

So, an economics problem is much more like being tasked with raising all of the kids in your town, or maybe your state, or more.

Multiply the frustrations, the reactions, the support, attention and love required by a thousand or a million kids.

We’re all smart enough to know that’s impossible. We would never sign up for it because we know we’d do those kids a major disservice. Hmmm…..

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