Archive for March, 2010

Incentives and Financial Oversight

March 21, 2010

 

    Do not think about, write about or deal with  human behavior until determining the effects of incentives.

     “It is the highest impertinence and presumption, therefore, in kings and ministers, to pretend to watch over the economy of private people, and to restrain their expense… They are themselves always, and without any exception, the greatest spendthrifts in the society. Let them look well after their own expense, and they may safely trust private people with theirs. If their own extravagance does not ruin the state, that of their subjects never will.” Adam Smith, The Wealth of Nations, Book II, Chapter III

    Lehman Brothers were watched constantly by federal overseers, but the firm went bankrupt.

    Freddie Mac and Fannie Mae had 200 federally-mandated keepers with nothing to do but watch over them. They required massive government bailouts. If anyone has examined a mortgage repayment protocol, he will realize it’s a real feat to lose money on a mortgage because in the first few years, most of the payments are interest so the property must lose a substantial portion of its value to be a losing proposition for the lender.

    Bernie Madoff’s dealings were all approved by federal regulators. He ran a Ponzi scheme for years. and ruined thousands of people.

      The answer to these failures is–more federal oversight.

     No one watches one’s money more carefully than the person himself.  The person providing government oversight loses nothing when he fails. The answer to failure is not to do more of the same.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

Expensive Non-results in Education

March 20, 2010

 

    Do not think about, write about or deal with  human behavior until determining the effects of incentives.

    A few days ago, I went to York University, in Toronto, to search for an article in their paper archives and purchased a card to get access to their photocopiers dutifully giving the machine twenty dollars. It then required me to remove the card, place it in another slot and “authenticate” it in a manner I’m sure few humans could understand. I lost my first twenty, accidentally did the authentication and got my photocopier card. My wife advised me to get a refund on my first twenty dollars, but I couldn’t be bothered. This was a government institution and I expected vast incompetence. No place other than one where people are not customers would ever have such a complicated method of obtaining a card. Put in your money and get a card. What could be simpler? Simplest never occurs when the customer is irrelevant.

    The Olympics are over and Canada did very “well”. The only people who didn’t do very well were the taxpayers underwriting this extravaganza. The security alone probably cost me $130 or so. What the whole thing cost me is unknown, but my guess is well over one thousand. I expected the Olympic propaganda machine to pump out reams about the “stimulus” provided by the show, but the only thing I saw was an estimate of $770 M as stimulus to the host province. The apologists for these circuses have even stopped pretending it’s economically sensible. This is well below the $990 M  security cost (This is the official cost–No one knows the real cost).     

     "The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary." H. L. Mencken.

    Here’s another example from George Will concerning federal involvement in  K-12 education.

    “Doubling down on dubious bets is characteristic of compulsive gamblers and U.S. federal education policy. The nation was essentially without such policy for grades K through 12, and better off for that, until 1965. In that year of liberals living exuberantly, they produced the Elementary and Secondary Education Act. Now yet another president has announced yet another plan to fix education. His aspiration has a discouraging pedigree.”

     “In 1983, three years after Jimmy Carter paid his debt to teachers’ unions by creating the Education Department, a national commission declared America “a nation at risk”: “If an unfriendly power had attempted to impose on America the mediocre educational performance that exists today, we might well have viewed it as an act of war.” So in 1984, Ronald Reagan decreed improvements.”

      “They did not materialize, so in 1994 Congress decreed that by 2000 the high school graduation rate would be “at least” 90% and students would be “first in the world in mathematics and science achievement.” Even inflated by “social promotions,” the graduation rate in 2000 was about 75% (it peaked at 77.1% in 1969), and among 38 nations surveyed, Americans ranked 19th in mathematics, just below Latvians, and 18th in science, just below Bulgarians.”

   “NCLB gives states an incentive to report chimerical progress, so, unsurprisingly, state tests almost always indicate much more progress than does the National Assessment of Educational Progress, the federal test.”

    Look Maude, he can tie his shoe. Never saw a boy more ready for university.

     “NCLB’s emphasis on measuring students’ expanding knowledge has improved education policy that until recently was exclusively focused, as the public education lobby preferred, on monetary inputs rather than cognitive outputs. From the time the baby boom generation began going through the school system like a pig through a python, policy, until NCLB, assumed that cognitive outputs varied positively with financial inputs.”

     “Abundant evidence demonstrates that money is not an Archimedean lever for moving the world of education. Inflation adjusted per-pupil spending tripled over four decades; pupil-teacher ratios were substantially reduced as the number of teachers increased 61% while enrollments rose about 10%. Yet test scores stagnated or declined.”

    If money is the answer no matter the question, why do educational, and other problems remain unsolved?

     Having "identified" the problem in a manner most hysterical, the government proceeds to do nothing but spend more money. This is a textbook example (according to my textbook) of the INTEND-IS-DOES distinction. The INTEND part is noble–aren’t they all? The IS part is expensive–aren’t they all? The DOES part is farcical–aren’t they all. They intended to do something, spent a lot of money and produced no change.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

How to Turn Failing Schools Around

March 19, 2010

 

    Here are some unbelievable quotes from an article about turning around government schools. I, and many others would not have trouble. First, get rid of the unions. Second, use programs which work. Third, create an environment in the school which demands accomplishment. The people that don’t know are the same kind who go to a farm and wonder why they can’t get milk from a cow by pumping her tail and, then, keep pumping.

    The rationale for these steps are simple. The union does everything to obstruct effectiveness. Many programs have been demonstrated to work. Many of them are in this blog. The third step is how effective military organizations and private companies have been run for years.

      Here are the quotes and my comments.

     “The second important lesson is the “Law of Ongoing Ignorance.” Despite years of experience and great expenditures of time, money, and energy, we still lack basic information about which tactics will make a struggling school excellent. A review published in January 2003 by the Thomas B. Fordham Foundation of more than 100 books, articles, and briefs on turnaround efforts concluded, “There is, at present, no strong evidence that any particular intervention type works most of the time or in most places.”“

    These people are obviously looking in the wrong place.

     “An EdSource study that sought to compare California’s low-performing schools that failed to make progress to its low-performing schools that did improve came to a confounding conclusion: clear differences avoided detection. Comparing the two groups, the authors noted, “These were schools in the same cities and districts, often serving children from the same backgrounds. Some of them also adopted the same curriculum programs, had teachers with similar backgrounds, and had similar opportunities for professional development.”“

    The problem is that the criteria for improvement are weak. Nothing useful comes from looking at small differences.

       “Maryland’s veteran state superintendent of schools, Nancy Grasmick, agrees: “Very little research exists on how to bring about real sea change in schools…. Clearly, there’s no infallible strategy or even sequence of them.” Responding to the growing number of failing Baltimore schools requiring state-approved improvement plans, she said, “No one has the answer. It’s like finding the cure for cancer.”“

    What better source of information than a person who has not been able to do it?

    “ Many have noted that flexibility and dynamism are part of the genetic code of private business, so we should expect these organizations to be more receptive to the massive changes required by a turnaround process than institutions set in what Hess calls the “political, regulatory, and contractual morass of K–12 schooling.” Accordingly, school turnarounds should be more difficult to achieve. Indeed, a consultant with the Bridgespan Group reported, “Turnarounds in the public education space are far harder than any turnaround I’ve ever seen in the for-profit space.”“

      Hard to reform something run by a government bureaucracy? With that I can agree.

     Do not think about, write about or deal with  human behavior until determining the effects of incentives.

    Reform the incentives, use powerful programs, create a community emphasizing effectiveness. Fini.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

Smog and Deaths

March 18, 2010

     

  "The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary." H. L. Mencken.

    And here’s an example. For decades we’ve heard about the deaths. The only problem is that the peak doesn’t peak. This reminds me of an official analysis in the 1970s concerning x heroin addicts having to steal y dollars per day for 365 days in the year. The total amount stolen, by this calculation, was several times more than the total amount stolen in reality.

    The following quotes are from this article.

“Where are the bodies?
Models that predict thousands of smog-related
hospitalizations in Toronto don’t hold up

We found no evidence that increased smog led to more hospital visits

For many years we have heard that air pollution in Canada is responsible for thousands of annual deaths and hospitalizations. In 2004 Toronto Public Health claimed that 1,700 premature deaths and 6,000 hospitalizations occur each year in Toronto alone, due to air pollution. The Ontario Medical Association, provincial and federal governments, lung associations and other groups regularly cite these kinds of figures in support of calls for new regulatory initiatives. These death and hospitalization rates are astonishing. It is like suffering a 9/11-sized terrorist attack every 10 months.

     But is it really true? The estimates are derived by taking correlations in the epidemiological literature between observed pollution levels and health indicators, like hospital admission rates, and then extrapolating across populations to estimate how many deaths and illness diagnoses can, in theory, be attributed to pollution. In other words, the numbers come from statistical models, not from direct observations. (emphasis added). That means we need to pay close attention to how the statistical modeling is done.”

    This is exactly like the Global Warming illusion. The bad news is always from the projected awfulness.

     “A fourth weakness of the literature is that few studies control for important factors like smoking, income levels and weather. Some recent studies have added in socioeconomic covariates. After doing so, the apparent effect of pollution vanished.

     What we did not find was any evidence that increases in air pollution levels are associated with increased rates of hospital admissions. We looked at the data every which way imaginable. If we were to cherry pick, by looking only at a sub-sample of the time or by picking just the right form of the model, we could find evidence that CO or nitrogen dioxide (NO2) have positive effects on lung disease, but those results do not get strong support in the data. The models that get consistent support either show no pollution effects or — paradoxically — negative effects. In other words, in some cases as air pollution rises, hospital admissions go down. As odd as that sounds, we are by no means the first to report negative coefficients in the literature. Nobody is trying to argue that air pollution is good for you: this is either just noise in the data, or it might be an effect from “averting” behaviour, where people who are susceptible to lung problems stay indoors on days with bad air quality.”

It’s sad because this was such a noble, useful and alarming hobgoblin.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

Fraud, “Treatment” and Fond Remembrance

March 17, 2010

 

      Do not think about, write about or deal with  human behavior until determining the effects of incentives.

     John Brown was a social worker in Ontario who became a relentless self-promoter and government-supported “entrepreneur” who “pioneered” child treatment programs loved by the media, but of dubious value. He became a member of the provincial legislature and dedicated drainer of the public purse. At one point, he was receiving $64 per day per resident, the equivalent, in current dollars of about $120 K per year per resident. People became suspicious of his lavish life style and, before you could say, “fraud” he was convicted of siphoning funds to the equivalent amount, in today’s dollars of $5.4 Million. In government, this is known as an oversight, a bookkeeping hiccup, and Brown was sentenced to three years in jail.

    At the time of his death, the provincial legislature, with unanimous consent, remembered his contributions “fondly”. Only one member acknowledged his “troubles”, mentioning that Brown “… found himself in troubles in his later life”. By using the passive voice, this means that Brown was an unfortunate victim of chance, an innocent. Brown was not troubled, but a troubler. Remembering a fraudster fondly.

     Politicians are smart and moral–How can we not trust them?

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

More on Antidepressant Drugs

March 16, 2010

     

     “I ain’t yellin’, you’re listenin’ too loud.” Huntz Hall as Horace Debussy Jones in , In Fast Company–A Dead End Kids Movie.

    There are two articles on psychoactive medication, one quite recent, which outline what is wrong with the field.

    The first is from the New England Journal of Medicine, 2008.  “Among 74 FDA-registered studies, 31%, accounting for 3449 study participants, were not published. Whether and how the studies were published were associated with the study outcome. A total of 37 studies viewed by the FDA as having positive results were published; 1 study viewed as positive was not published. Studies viewed by the FDA as having negative or questionable results were, with 3 exceptions, either not published (22 studies) or published in a way that, in our opinion, conveyed a positive outcome (11 studies). According to the published literature, it appeared that 94% of the trials conducted were positive. By contrast, the FDA analysis showed that 51% were positive.”  In other words, if the results were positive-publish–if not, don’t. How’s that for science?

    The second study, “Antidepressant Drug Effects and Depression Severity.”, was published in 2010. There are two major points in this presentation. The first is that the authors started with 2164 studies and ended with 6 which were acceptable. Not a good ratio.

    The second point is that the antidepressant were only better than a placebo after a certain level of depression. The placebos were probably inactive placebos without effects such as dry mouth, ringing in the ears, etc. which would mimic some of the effects of the investigated drug.

    In sum, there is very little evidence of the usefulness of these drugs.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

Bullying and Recess Coaches

March 14, 2010

     

     One of the many conceits of politicians is that, if they don’t do anything, nothing is being done, has been done, or ever will be done. “How did you get along before I got here? How can you get along now? What will you do in the future?

      Trendy governments everywhere are “investing” in “green” technology so they won’t be left behind when economic necessity forces green technology on the rest of us who are too stupid to see the future. Investing has displaced spending because it’s such a nicer word. Governments try to be more like free enterprise and it’s quite precious to watch with the cuteness being tempered by the waste and overblown sense of importance. Investing also means giving to groups which are currently in government favor. Like atomic energy and aircraft subsidies, the amount of economic advantage will never outweigh the amount of subsidy. Keeping up with idiots internationally is very expensive.

    The “green” technologies such as wind power will never be economically viable and we will either see continued subsidies or covert dismantling and decommissioning. It’s difficult to tear down those big structures without anyone noticing, but reasons will be found.

     “A northern New Brunswick city that has endured one economic blow after another is bracing to learn the fate of a homegrown company on the brink of collapse, despite receiving millions in public funds in the last decade.” Canadian Press. How could it fail?

    According to the New York Times, schools are hiring recess “coaches” to whip the students into shape with compulsory games to keep bullying at bay. One of the arguments for compulsory schooling has been that children need to be “socialized” by their peers. Leaving aside the fact that socialization must be done by someone who is old enough to have been socialized, i.e., an adult, bringing hundreds of children together is a recipe for disaster with exposure to bullying and contagious diseases being two disadvantages. Ally this to really poor teaching, constant leftist propaganda and making most of the children feel inferior, the school system has little to recommend it.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

The Institutionalization of Success

March 14, 2010

 

    B.F. Skinner is the psychologist correctly credited with systematically investigating the effects of reinforcers on behavior. There is much to it than this, of course, because Skinner transferred the notion from the lab to other worlds, both actually and conceptually. Many of the applications stemming from Skinner’s work have been spectacularly successful. History has followed Kettering’s observation that: “First, they tell you you’re wrong and they can prove it. They, they tell you you’re right, but it’s not important. Then, they tell you you’re right, it’s important, but they knew it all along.”

    Government agencies do things for many reasons and usefulness is not high on the list. If something useful does get incorporated, it soon becomes diluted and only recognizable by its name. This is what has happened with behavior modification. The main reasons behind this is always the incentives involved. If all you have to do is look good, then this is what you’ll do. As Fred Keller said, you’ll end up with SLI–something like it.

    Two of Skinner’s most famous students, Nathan Azrin and Ogden Linsley, recognized this possibility. Azrin called the summary of his far-ranging research program, “A strategy for applied research: Learning based but outcome oriented."

    Lindsley remarked,  "The pay-off to the academic scientist is number of pages published rather than magnitude of behavior change produced."

    As behavior change methods expanded in scope, further dilutions occurred. The touchstone of Skinner’s original work was the free operant situation in which freedom to respond and, consequently, time were relevant. Frequency of responding was the dependent variable and amount of change and/or frequency of responding were important. Alas, except in some settings, almost all of which are outside government-sponsored actions, time, free-operant and amount of improvement have disappeared. The things which made the technology effective are no long relevant because the INTEND is equated with the DOES.

    If government ran bronch’ ridin’, success would go to those who could describe it using the metaphors of the moment. Confronted with a real broncho, our government functionary would say, "What’s this?"

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

Tips for Consumers—Part the Last

March 13, 2010

 

      A group of civil servants in Ontario is switching over to being federal civil servants. One day they’re sitting at a desk administering the provincial tax system. The next, they’re sitting at the same desk administering the federal tax system. The difference is that they will receive “severance” from their provincial jobs in a lump sum payment up to $45,000. Then they wonder why we have no respect for government workers. You can have respect or a government job.

    The excuse of the politician who runs things, the premier, is that “a contract is a contract”. This sidesteps the question of why the “contract” was allowed in the first place. It’s not their money, so they don’t care how it’s spent.

from the book: Shadow Dancing on the Grave of Hope:

     Ask for data which demonstrate success. Those who won’t show it to you usually don’t have any. Stories and sincere gratitude are not data. Those who speak confidently and know the TRUTH without specific supporting data are to be avoided.

    Watch for formalism. If there are many and\or expensive tests, flee. Effective programs are not built on formal testing because formal testing provides no effective program guidance. Be especially wary of tests which purport to uncover “deep psychological structures”. Tests of skill sets are another matter. They are designed to give a program useful starting points.

    Stay away from programs with complicated theoretical underpinnings and excessive jargon. Those who can, do, and those who can’t, talk about it in great detail and complexity. These people are fun to watch, but no good for anything else.


     If anything is discussed with reverence and hushed terms, flee immediately. Stay only if you can be shown concrete and immediate steps.

    The advice on how to choose an individual entrepreneur will work perfectly in auto mechanics, plumbing, computer building and snowplowing, as I know from personal experience. The initial choice should be made on recommendations from satisfied customers and always look for data when you can get it.

    A word about parental responsibility

    In the early part of the twentieth century, the theory gained credence that parents were responsible for how  their children turned out. This led to parents, mainly mothers, being charged with the production of autism, ulcers, schizophrenia and asthma, among others. None of this turned out to be true, but the theory, like all bad theories, has not been killed. If you’re a parent who did not beat your child or teach him to be a criminal, relax, it’s probably not your fault if he turned out bad.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

Firing Teachers—The Farce Continues

March 12, 2010

   

      Staff from a low performing high school in Central Falls, Rhode Island will be, or have been fired. With government bureaucracies, separating fact from fiction is impossible.

    “A mediator will lead negotiations meant to avert the mass firing of all teachers from long-troubled Central Falls High School as part of a plan to improve student performance, Superintendent Frances Gallo said yesterday.”

      Here’s the key statement, in bold italics, which gives a clue to what’s really going on. Cooler heads will prevail because of the immense goodwill of all parties. Everyone involved must be seen to be reasonable and having “the best interests of the students at heart.”.

    Jane Sessums, president of the Central Falls Teachers’ Union, described the meeting as a good start, although its focus was on the qualities needed in the school’s new leadership team, including a new principal.

      Sessums said she wants negotiations between officials and the union to start as soon as possible. “As long as we’re talking, we can solve this,’’ she said.”

    The problem they’re solving is continued employment in a system which hasn’t worked. The problem is not, again I quote,  that “Just 7 percent of 11th-graders tested in the fall were proficient in math. Only 33 percent were proficient in writing, and just 55 percent were proficient in reading. In 2009, more than half of students failed to graduate in four years.”

    The solution to the poor performance of the teaching will not be fixed by these steps proposed by the official, Gallo, responsible for the “firings”.

    “Gallo said she initially asked the union to accept changes, including a longer school day, a formalized tutoring schedule, additional professional training, and implementation of a program in which teachers would eat lunch with students once a week.”

    It will be interesting how the government and union spin will make this seem like a victory for everyone. How will they spin student results?  The world wonders.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies


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