January 3, 2009

College Football Playoff?

I've never been hugely enthusiastic about the popular idea of instituting a playoff system for the college football season in the manner of the NCAA playoffs in basketball (as recently endorsed by Barack Obama).

Part of the problem is that football is a dangerous and destructive game, so adding intense, hard-hitting playoff games against the best opponents to the best players' college seasons will just cause that much more wear and tear on players who aren't getting paid (at least not paid above the table).

If the average NFL running back has maybe four good pro seasons in him, adding playoffs to the college season could end up reducing a running back at a top college's NFL career by a year, which is a lot. If you have an 8 team playoff instead of bowl games, a USC or Oklahoma running back might wind up playing six or seven more games in his college career, which is pretty close to the equivalent of a full season against mediocre opponents in which stars sit out the fourth quarter of blowout wins. If you have a 16 team playoff, that's more like ten or eleven hard games across four years.

Also, I'm not crazy about how college football has added two or even three games to the season during my lifetime. It's not like the college athletic directors sat down with the College Football Players Guild representatives and negotiated a bigger paycheck for the players in return for more work.

My published articles are archived at iSteve.com -- Steve Sailer

Failing Upward via Public School Reform

With the Democratic governor of Illinois' pick for the U.S. Senate getting much publicity, the Democratic governor of Colorado has made sure to appoint the most exquisitely genteel individual imaginable to the U.S. Senate: Denver school chief Michael Bennet, age 44, the former editor of the Yale Law Review. His brother Jim is the editor of the Atlantic Monthly and his father was head of National Public Radio and president of Wesleyan U.

After Michael Bennet got rich, he then decided, in the mode of the time (e.g., Bill Gates), to fix the public schools. After all, how hard could it be?

A couple of years ago, in an article Across Difficult Country summarizes here, The New Yorker profiled Bennet's travails in trying to close a gang-infested Denver high school with terrible test scores, Manual. It turned out that the all-Mexican student body and their families kind of liked their terrible school, didn't appreciate poor Bennet's meddling, and, not being indoctrinated in the theology of the overclass, didn't expect to do much better at a different school just because it had enjoyed higher test scores before they arrived.

Yet, much in the manner of Barack Obama's unsuccessful chairmanship of the lavishly-funded Annenberg Chicago Challenge, Bennet has managed to fail upward.

Evidently, the point of being a public school reformer these days is to become known as a public school reformer, not to actually reform the public school. What matters is that you publicly proclaim that you believe the public schools can be fixed. Nobody actually expects you to be able to do anything with public school students, at least not enough to hold it against you when you fail, as the skyrocketing careers of Obama and Bennet demonstrate.

Connoisseurs of overclass social markers will enjoy his New York Times' 1997 wedding announcement:

Susan Diane Daggett, a daughter of Patricia B. Palmer of Little Rock, Ark., and Jesse B. Daggett of Marianna, Ark., was married yesterday to Michael Farrand Bennet, a son of Douglas J. Bennet Jr. of Middletown, Conn., and Susanne K. Bennet of Washington. The Rev. Arnold W. Hearn, an Episcopal priest, performed the ceremony at Crystal Lake in Marianna.

The bride, 33, a lawyer, is to join the Earthjustice Legal Defense Fund, formerly the Sierra Club Legal Defense Fund, in Denver next month. Ms. Daggett, who is keeping her name, graduated magna cum laude from Mount Holyoke College, and she and the bridegroom received law degrees from Yale University.

Her mother is a painter and an instructor at the Arkansas Art Center's Museum School in Little Rock. Her father is a partner in Daggett, VanDover, Donovan & Perry, a Little Rock law firm.

Mr. Bennet, 32, was until recently a counsel to the Deputy Attorney General of the United States. He graduated with honors from Wesleyan University.

His father is the president of Wesleyan; he was the Assistant Secretary of State for international organizations in 1993 and 1994 and the president of National Public Radio from 1983 until 1992. The bridegroom's mother is an art historian specializing in Roman antiquities.

This is exactly the kind of background that lets you understand the minds of Manual High School students.

My published articles are archived at iSteve.com -- Steve Sailer

January 1, 2009

Credit Default Swaps and Moral Hazard

In the insurance business, "moral hazard" is famously a problem. Evelyn Waugh describes in Scoop how in his fictionalized version of 1930s Addis Ababa, a taxi ride revealed "numerous gutted sites, relics of an epidemic of arson some years ago back when an Insurance Company had imprudently set up shop in the city."

Help me out here if I'm wrong, but don't credit default swaps, a financial instrument invented in the 1990s, suffer from the usual insurance contract problem of "moral hazard?" If you can make a deal so that you get compensated if your mortgage-backed security defaults, aren't you more likely to bring about a default?

If you are, say, Goldman Sachs and AIG offers to, in effect, insure for a modest price a no-doubt-fraudulent pile of mortgages you are thinking about buying from some dubious firm, why not go for it? AIG is rock solid! And if, perchance, AIG turns out not to be so solid, well, Goldman has friends in high places.

Credit default swaps have a second interesting moral hazard aspect. You don't have to be the owner of the security to get paid if it goes bust. This is kind of like being able to take out a life insurance policy on a complete stranger or your own worst enemy. The murderous marital moral hazard implicit in life insurance is a common theme in crime stories (e.g., Double Indemnity). That's an inevitable problem, but insurance companies have tightened up over the centuries on who can take out a life insurance policy on whom. Still, there was an Arsenic and Old Lace case in LA recently of two elderly women, who had murdered homeless men after taking out multiple life insurance policies on them. (They bribed the men into signing up for one, then forged their signatures on other policies).

It would certainly be interesting to learn more about the impact of both types of moral hazard.

I could see how the second kind (where third parties make bets against the financial health of firms in the securitized mortgage business) could be either bad or good for the economy, in that it could send signals that financial instruments are dubious.

My published articles are archived at iSteve.com -- Steve Sailer

December 31, 2008

Last day for tax deductible contributions to VDARE.com

Steve Sailer Says: Help VDARE.COM (and Me) Celebrate the New Year!

By Steve Sailer

We at VDARE.COM will have one reason to celebrate come January 20, 2009. George W. Bush will be gone, and we’ll still be here.

And with your help, we’ll be around when the new President is history. But only with your help …

As you’ll recall, George W. Bush was supposed to introduce a new, compassionate conservatism, taking Ronald Reagan’s American optimism to a new global level. While Reagan’s optimistic outlook focused on tapping his fellow Americans’ capacities, Bush’s greatest enthusiasm has been reserved for foreigners. His grand strategy of what we at VDARE.COM have called Invite the World - Invade the World - In Hock to the World placed his trust in Mexican illegal immigrants, Iraqi voters, and Chinese factory workers and bankers.

The Bush Bubble was phony, of course. It proved to be a variant of an earlier version of “compassionate” governance seen in Latin American countries like Argentina in the post-War world.

It’s important to understand that Latin American inflationary economics, like Bushian compassionate conservatism, wasn’t intended to wreak devastation -- it just evolved as an attempt to keep everybody happy.

From the days of Juan Peron onward, the workers of Buenos Aires would complain to the government that they weren’t being paid enough, so El Presidente would order their bosses to pay them more. Then the factory owners would complain to the government that they were going bankrupt, so the government would order the commercial banks to lend the factories more money. Then the banks would complain that they were about to go broke, so the government would tell the Central Bank to lend the commercial banks more money. When the Central Bank complained that they were running out of reserves, they would be told to print more some more money, lots and lots more money.

America’s leaders, Republican and Democrat, looked at the Latin American defaults of the 1980s and took from them this lesson:

Never let workers get paid more.

That way, you can’t start down the Latin American path to ruin. All the experts, such as Alan Greenspan and Robert Rubin, were agreed that the essential ingredient of economic success was keeping the average American from earning more money. Keep the supply of labor up -- and the price of labor down -- by not enforcing the laws against illegal immigration.

In other words, the key to avoiding the Hispanicization of the economy was to Hispanicize the population! (Of course, nobody ever quite put it in those words …)

Yet, Bush was not a cruel man, nor even a tough man. Like a lot of seemingly formidable Latin American generalissimos, he just wanted everybody to be happy.

In George W. Bush’s America, flat wages didn’t mean workers couldn’t have bigger houses, bigger TVs, and bigger rims on their rides. They could have it all … just by taking out bigger debts.

What could possibly go wrong?

Indeed, to Bush, one of the biggest problems facing the country was that the financial system was holding minorities back from their fair share of the American Dream by not lending them enough money. Bush egged the Bush Bubble on, denouncing traditional down payments on mortgages as the chief barrier to his goal of greatly increasing the number of minority homeowners. Mortgage dollars for home purchases leant to Hispanics soared a staggering 691 percent from 1999 to 2006.

Unlike the Bush family’s amigos in the old Mexican ruling party, however, George W. Bush wasn’t even competent enough to delay the economic collapse until after the election.

The Bush years ended in economic and political ruin, with the financial system more or less nationalized, and an incoming liberal Democratic President given almost carte blanche to hand out to his supporters however many hundreds of billions or even trillions he chooses.

While I wouldn’t be surprised if some of Obama’s “stimulus spending” goes to prop up big newspapers (after all, they gave him such lax scrutiny during the endless election), we can be sure that VDARE.COM won’t be getting any Obama Dollars.

To continue to provide you with the analyses and reporting that you literally cannot read anywhere else, we need your support.

When you realize how bad a job the MainStream Media did of exposing George W. Bush’s fundamental mistakes, just imagine what pushovers they will be for Barack Obama!

We certainly understand that it’s harder to give this year than last.

But if we are going to continue to expose how the world really works, your financial help is needed now more than ever.

Many thanks.

Steve Sailer


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My published articles are archived at iSteve.com -- Steve Sailer

Who has turned out to be right in the Limbaugh-Black QB Controversy?

Back in 2003, Rush Limbaugh got himself in all sorts of trouble for saying during his (brief) tenure as a pregame show analyst for ESPN that Philadelphia Eagles QB Donovan McNabb wasn't as good as the media claimed:

"I don't think he's been that good from the get-go. I think what we've had here is a little social concern in the NFL. I think the media has been very desirous that a black quarterback do well. They're interested in black coaches and black quarterbacks doing well. I think there's a little hope invested in McNabb, and he got a lot of credit for the performance of this team that he really didn't deserve. The defense carried this team."

Five and a half seasons later, McNabb is still a pretty good quarterback, with his team in the playoffs again.

But, it's worth taking a statistical look at black quarterbacks' performance in the NFL.

The source for my data is ESPN.com. It lists for the seven years 2002-2008 all the quarterbacks who have thrown at least 224 passes in a season (14 per game) -- in other words, the busiest 32 to 34 quarterbacks per year -- the "regulars."

One thing that jumps out of the data is that 2003, the year of the Limbaugh brouhaha, was the peak year in recent times for black quarterbacks. Among the top 32 quarterbacks that year, blacks accounted for over one quarter of all yards throw. In 2008, however, blacks only accounted for 14.7% of all yards passing among the top quarterbacks, a typical percentage for the last four seasons:

2002 21.6%
2003 25.7%
2004 17.7%
2005 15.7%
2006 13.0%
2007 15.8%
2008 14.7%

Other ways of measuring quarterbacks show similar stories. For example, the NFL's Passer Rating statistic (which aggregates percent completed, yards per attempt, touchdown percentage, and interception percentage) shows that the highest rated black passer in 2008 was Seattle's Seneca Wallace at 13th, followed by McNabb at 15th, Jason Campbell of Washington at 19th, David Garrard of Jacksonville at 20th, and JaMarcus Russell of Oakland at 26th.

Black quarterbacks tend to run better on average, but with Michael Vick in prison, none of the black regulars did much rushing in 2008.

So, it looks like Limbaugh's general assertion that black quarterbacks tended to be overhyped by the press has been borne out by the following half decade of statistics.

December 30, 2008

Shocking news: College football and basketball players not as smart as their classmates

A new report:

The Atlanta Journal-Constitution

Sunday, December 28, 2008

Football and men’s basketball players on the nation’s big-time college teams averaged hundreds of points lower on their SATs than their classmates, and some of the gaps are so large they call into question the lengths to which schools will go to win.

The biggest gap between football players and students as a whole occurred at the University of Florida, where players scored 346 points lower than the school’s overall student body [out of 1600 points, or about 1.5 standard deviations]. That’s larger than the difference in scores between typical students at the University of Georgia and Harvard University.

Hmmhmm, isn't Florida playing in the national championship game next month? Could there be a connection?

Seriously, one aspect of this that gets overlooked is that the average SAT scores at many state flagship schools have risen significantly over the last generation. For example, football players at Florida average 890, but U. of Florida students average 1236 which is pretty good. (Old timers who took the SAT before the fall of 1995 should subtract 110 points from these glitzy new scores to adjust them down to the harder scoring standards prevailing in their days.)

An 890 really isn't that bad. That's probably about the national average, if you included all the students who don't bother to take the SAT or ACT. (Am I right about that?). I suspect, however, that a lot of prize recruits took the SAT four or five times, and had lots of drilling in it.

Nationwide, football players average 220 points lower on the SAT than their classmates — and men’s basketball players average seven points less than football players.

Those figures come from an Atlanta Journal-Constitution study of 54 public universities, including the members of the six major Bowl Championship Series conferences and other schools whose teams finished the 2007-08 season ranked among the football or men’s basketball top 25.

While it’s commonly known that admission standards are different for athletes, the AJC study quantifies how wide the gap is between athletes and the general student body at major universities.

Georgia Tech’s football players had the nation’s best average SAT score, 1028 of a possible 1600, and best average high school GPA, 3.39 of a possible 4.0 in the core curriculum. But Tech’s football players still scored 315 SAT points lower on average than their classmates.

At the University of Georgia, the average football SAT was 949, which is 239 points behind the average for an undergraduate student at Georgia — and 79 points behind Tech’s football average. The Bulldogs’ average high school GPA was 2.77, or 45th out of 53 teams for which football GPAs were available. Their SAT average ranked them 22nd.

Nationwide, coaches who would never offer a scholarship to a player who was 6 inches shorter or half a second slower than other prospects routinely recruit players whose standardized test scores suggest they’re at a competitive disadvantage in the classroom.

It’s the price of winning.

“If you’re going to mount a competitive program in Division I-A, and our institution is committed to do that, some flexibility in admissions of athletes is going to take place,” said Tom Lifka, chairman of the committee that handles athlete admissions at the University of California, Los Angeles. “Every institution I know in the country operates in the same way. It may or may not be a good thing, but that’s the way it is.”

UCLA, which has won more NCAA championships in all sports than any other school, had the biggest gap between the average SAT scores of athletes in all sports and its overall student body, at 247 points. ...

FOOTBALL SAT SCORES:
THE TOP 10

School, Average
Georgia Tech, 1028
Oregon State, 997
Michigan, 997
Virginia, 993
Purdue, 974
Indiana, 973
Hawaii, 968
California, 967
Colorado, 966
Iowa, 964

THE BOTTOM 10
School, Average
Oklahoma State, 878
Louisville, 878
Memphis, 890
Florida, 890
Texas Tech, 901
Arkansas, 910
Texas A&M, 911
Mississippi State, 911
Washington State, 916
Michigan State, 917
...

Black athletes’ average SAT score was 102 points lower than the average for black students overall. White athletes’ average SAT score was 88 points lower than the average for white students overall. One expert says those numbers suggest schools are motivated by money, not affirmative action. If universities were motivated by affirmative action, they would enroll black students whose qualifications give them a better chance to succeed in class, rather than athletes whose skills help the school sell football and basketball tickets, said Allen Sack, director of the University of New Haven’s Institute for Sport Management and a former University of Notre Dame football player.

“The black athletes are far more represented in football and basketball, the two sports that produce the most revenue,” Sack said. “Is there exploitation going on? I would suggest there is.”

Sack said universities might be exploiting those athletes who enter with inferior academic credentials, even if athletes as a whole graduate at a higher rate than non-athletes. “The athletes should all be graduating at a higher rate than the student body because they have the incredible advantage of having tuition, room and board paid for them,” Sack said.

The most recent Division I data showed black athletes in men’s sports outperforming black men’s graduation rate overall, 48 percent to 38 percent, and black athletes in women’s sports outperforming black women’s graduation rate overall, 66 percent to 50 percent. For white women, the graduation rates were 74 percent for athletes, 67 percent overall. The only large group in which athletes underperformed: White men, with athletes graduating at 61 percent and students as a whole at 62 percent.

Here are the stats for 54 public university football powerhouses.

My published articles are archived at iSteve.com -- Steve Sailer

December 29, 2008

More on homicide trends

James Alan Fox of Northeastern University, whose study of homicide trends provided the basis for a somewhat misleading article in the New York Times today, has kindly sent me some more detailed data (derived from the federal Bureau of Justice Statistics website) on recent trends in homicide offending rates.

Here's the NYT's graphs, which show not the expected rate per capita but the absolute number of perpetrators. The reader who doesn't stop to take this into account would assume that the black homicide rate is about twice the "white" rate. But, of course, there are far more white than black teens, so the black rate is actually much higher than just twice as bad.

First, Dr. Fox confirmed for me that what the New York Times referred to as number of homicides perpetrated by "whites" is actually the number for "whites plus most Hispanics." (The federal government is very careful about breaking out Hispanic statistics separately in almost all venues except crime rates. I wonder why?) This is an important point because it's likely that Hispanics now commit the majority of homicides in the younger age groups of the government's "whites plus Hispanics" aggregation.

Second, he sent me the per capita rates, from which I have calculated the ratio of homicide perpetrating rates. The following table lists the ratio of the murder rate for blacks to the murder rate for whites plus Hispanics. For example, in 2007, the black homicide rate among 14-17 year-old-males was 10.0 times the level of homicide rate for the aggregation of whites and Hispanics.


14-17 18-24 25+
2000 8.1 9.1 7.6
2001 7.6 8.3 7.3
2002 7.0 8.3 7.6
2003 7.7 8.6 7.7
2004 7.7 8.2 7.0
2005 8.5 8.7 7.8
2006 9.3 9.3 8.1
2007 10.0 9.4 7.8
From this, it appears fairly safe to say that by 2007, the ratio of black to non-Hispanic white homicide rates was at least an order of magnitude for all age groups.

My published articles are archived at iSteve.com -- Steve Sailer

Homicide Rates: Back toward Crack among Blacks

After a huge dropoff with the ending of the crack wars around 1995, the black homicide perpetration rate has turned up again in this decade. For black male 14-17 year olds, according to tables prepared by James Alan Fox of Northeastern U., the number of homicide perpetrators in absolute terms is up 34% from 2000-2001 to 2006-2007, up 12% for black 18-24-year-0lds, and up 17% for blacks men 25+.

In contrast, for "whites" (which appear to include most Hispanics), the number of homicide perpetrators is up 3% for 14-17 year-olds, down -2% for 18-24 year-olds, and up 6% for 25+. The federal government carefully breaks out Hispanic data for almost everything except crime statistics, which makes non-black crime numbers hard to interpret. My guess would be that the homicide rate for whites/Hispanics is falling because the number of whites/Hispanics is growing rapidly due to Hispanic growth. Unfortunately, we can't use federal figures to break down white versus Hispanic crime trends, but I would guess that crime rate trends are pretty quiet among both whites and Hispanics in this decade.

Here in LA, there was a spike in Hispanic gang murders after Villaraigosa was elected mayor in 2005, but the LAPD remains in the capable hands of William Bratton, and that has faded out.

My assumption is that technological trends, especially the spread of cellphones and cellphone cameras, has made crime a riskier business, so crime rates should be dropping all else being equal.

When I debated economist Steven Levitt over crime in Slate in 1999, he asked me what my prediction for future crime trends was: I replied that I figured that black teens are currently benefiting from the example of their many older brothers and cousins whom the crack wars left in jail, wheelchairs, or cemeteries, but that eventually a new cohort of black teens would come along without direct experience of the horrors of crack wars of 1988-1994, and the homicide rate would go back up again.

My published articles are archived at iSteve.com -- Steve Sailer

My new VDARE.com column

Now that my argument that an underestimated source of the mortgage meltdown was pro-diversity policies is on the move from from being regarded as scurrilous infamy to being quietly accepted into the conventional wisdom, I lay out n VDARE.com an idea that commenters here and I have been kicking around for some time:

So now let me suggest another even less welcome Big Idea for the rest of the media to get around to in the next several months:

The Crash is telling us that this readjustment can no longer be papered over or postponed.

More.
My published articles are archived at iSteve.com -- Steve Sailer

December 28, 2008

Annual Excess Income Relief Effort

For all my readers who are concerned about having to write a big check to the IRS in 3.5 months, I'm at your service to relieve you of some of that burden! You can make a tax-deductible 2008 donation to me here.

My published articles are archived at iSteve.com -- Steve Sailer

"Valkyrie"

"Valkyrie," with Tom Cruise as Col. Stauffenberg, who led the July 20, 1944 assassination and coup plot against Hitler, is a fairly decent movie that never quite overcomes the obvious problems with making a thriller where you know ahead of time that the hero fails, and there's only one explosion and a brief shootout. Still, it's a respectable, grown-up film.

The accents, though, don't help matters. Hitler has a German accent and Stauffenberg an American accent, and in between these two moral poles, most of the supporting cast, such as Tom Wilkinson, Kenneth Branagh, and Eddie Izzard, have English accents. Granted, the English actors are quite good, but if you have Tom Cruise signed up as your hero and he can only do an American accent, then, rather than embarrass your star, shouldn't you find American character actors and do the whole thing with American accents? Sure, maybe the English are better character actors on a per capita average basis, but there are more than enough good American character actors to fill out the cast.

And that leads to the question of whether Cruise should have played Count Claus Philipp Maria Schenk Graf von Stauffenberg. Ever since Cruise replaced his publicist with his sister, his public image has been in ruins, but I've never gotten too worked up over that. I've never much liked Cruise as an actor, because he doesn't seem to have much going for him except energy, but he has a track record with remarkably few outright failures on it ("Lions for Lambs" being the only one in this decade). Tom Cruise's name on a film suggests that it's not going to be totally bad. Strange as it may seem, the Cruise brand name implies that the film will be a quality product.

Facially, Cruise is quite plausible as the handsome 37-year-old colonel. Still, much of Stauffenberg's charisma, which was essential in his driving a military plot large enough to have a chance at not just killing Hitler but overthrowing the Nazi Party, stemmed from his epitomizing the best traits of the old German aristocracy. Cruise doesn't do upper class grace. Mostly, Cruise just does intensity. The film would have worked better with a Shakespearean-trained English actor as the Count. Or, if Cruise was essential to the financing, then lose the stage-trained Englishmen in the supporting roles and replace them with Americans.

Director Bryan Singer adds to the style of the film, especially its art direction, a note of gay hysteria that is not all that historically inaccurate in depicting Nazi Germany.

My published articles are archived at iSteve.com -- Steve Sailer

December 26, 2008

The place name that changed, then changed back

Which country is this?

It's almost forgotten now, but, in the manner of Bombay-->Mumbai, in the middle of the 20th Century, one well-known Western European state recurrently tried to persuade Anglophones to call it by a name almost unknown in English. I recall that many maps and globes I saw as a child in the 1960s used this obscure term as the main name for this country, with its famous English name in smaller type in parentheses below.

My cousins were attending school in this country when I visited them in 1965. They complained about having to take classes in the indigenous tongue, saying that English was the language of the future. Whiny snot-nosed teens they may have been, but they were right.

Got it by now?

Emphasizing the local name over the celebrated English name was an anti-English-colonialist gesture, same as changing Bombay to Mumbai (with, same as in India, the added bonus of pleasing some locals and displeasing others). But in this case, it didn't stick because it was too confusing and too inconvenient for foreigners, so the locals have largely given up on the name change, just as they have largely given upon the language. To this day, only this indigenous name appears on postage stamps, but the American media have largely given up using the new name and gone back to the more familiar old name.

Wikipedia gives an example of common-sense prevailing in this country:

From 1938 to 1962 the international plate on Irish cars was marked "EIR", short for Éire.[citation needed] In 1922-1938 it was "SE", and from 1962 "IRL" has been adopted. Irish politician, Bernard Commons TD suggested to the Dáil in 1950 that the government examine "the tourist identification plate bearing the letters EIR" "with a view to the adoption of identification letters more readily associated with this country by foreigners".[4] The amendment was effected under the Road Traffic Act 1961.

So, the lesson appears to be, once again, that non-Europeans get to change what Anglophones in the West call their historic places, but Europeans don't.

By the way, this is a different situation from the country on the opposite side of England insisting upon being called The Netherlands rather than the traditional Holland. Holland refers only to the culturally dominant coastal stretch that contains the big cities, but only 13% of the land area. It's the analog of using England to refer to Great Britain or the United Kingdom. It makes sense to choose a new name when incorporating a larger region or shrinking (e.g., Montenegro).

But, today, the main examples of European countries getting to change their placenames, following the dropping of some dictators' names at the end of the Cold War, is that Ukraine has talked the media into not referring to it as The Ukraine.

My published articles are archived at iSteve.com -- Steve Sailer

Frog-Boiling

The three main government-approved credit rating agencies -- Standard & Poor's, Moody's, and Fitch -- notoriously failed in recent years in rating complex structured financial assets.

My vague impression is that the ratings agencies first became corruptible in the 1970s when two things happened:

- They switched their basic business model in the early 1970s from being paid by users of their information (bond-buyers and the like) to being paid by issuers (debtors). That incentive structure created an obvious conflict of interest.

- The government started writing them into legislation around 1975, making them a legally-mandated quasi-cartel.

I spent years in the market research business telling consumer packaged goods manufacturers what their market share was, a business that's fairly comparable in We would have loved to have gotten into the more lucrative financial rating business (the Wall Street mark-up is a lot higher than the Corporate America mark-up), but up at least through a 2006 reform, you couldn't get into that market unless you were already in that market. We didn't have particularly large conflicts of interest in the market research business, since the primary users paid us for the data. Procter & Gamble is more interested in what Crest's market share is than anybody else is, so P&G pays its market research supplier and takes steps to make sure it's getting accurate information.

The surprising thing is that the ratings agencies didn’t get corrupted for several more decades after these 1970s changes. But, that long period of good behavior created an assumption on the part of the markets that just because they hadn’t allowed themselves to be corrupted by their incentive structure so far, they never would.

My published articles are archived at iSteve.com -- Steve Sailer

How Mrs. Thatcher became Mrs. Thatcher

John O'Sullivan has an interesting column in the Wall Street Journal comparing Sarah Palin to Margaret Thatcher, for whom he worked. He points out that:

Inevitably, Lloyd Bentsen's famous put-down of Dan Quayle in the 1988 vice-presidential debate is resurrected, such as by Paul Waugh (in the London Evening Standard) and Marie Cocco (in the Washington Post): "Newsflash! Governor, You're No Maggie Thatcher," sneered Mr. Waugh. Added Ms. Coco, "now we know Sarah Palin is no Margaret Thatcher -- and no Dan Quayle either!"

Jolly, rib-tickling stuff. But, as it happens, I know Margaret Thatcher. Margaret Thatcher is a friend of mine. And as a matter of fact, Margaret Thatcher and Sarah Palin have a great deal in common. ...

Things like that change your mind about a girl. But they also take time, during which she had to turn her instinctive beliefs into intellectually coherent policies against opposition inside and outside her own party. Like Mrs. Palin this year, Mrs. Thatcher knew there were serious gaps in her knowledge, especially of foreign affairs. She recruited experts who shared her general outlook (such as Robert Conquest and Hugh Thomas) to tutor her on these things. Even so she often seemed very alone in the Tory high command.

As a parliamentary sketch writer for the Daily Telegraph (and a not very repressed suburbanite), I watched Mrs. Thatcher's progress as opposition leader. She had been a good performer in less exalted positions. But initially she faltered. Against the smooth, condescending Prime Minister James Callaghan in particular she had a hard time. In contrast to his chuckling baritone she sounded shrill when she attacked. But she lowered her tone (vocally not morally), took lessons in presentation from (among others) Laurence Olivier, and prepared diligently for every debate and Question Time.

I can still recall her breakthrough performance in a July 1977 debate on the Labour government's collapsing economy. She dominated the House of Commons so wittily that the next day the Daily Mail's acerbic correspondent, Andrew Alexander, began his report: "If Mrs. Thatcher were a racehorse, she would have been tested for drugs yesterday." She was now on the way to becoming the world-historical figure who today is the gold standard of conservative statesmanship.

This explains much of my lack of interest in the ongoing "How smart is Sarah Palin?" brouhaha. She's not a plausible Presidential candidate until she wins re-election in 2010. Then, if Obama is in trouble, she could make a dash for 2012, or focus on 2016, when she'll be 52. If she skips 2012 and a Republican wins two terms, she could run in 2020 when she's 56.

What all this means is that she has the time to put herself through a lengthy educational process similar to the one Mrs. Thatcher undertook. If she succeeds in it, then she's Presidential Timber. If she doesn't, she's not. In either case, I'm not going to spend a lot of time worrying at present about whether she is going to succeed or not. It's Mrs. Palin's career, not mine.

Another similarity between Mrs. Thatcher and Mrs. Palin is that when Miss Roberts, then in her mid-20s, first showed up on the political scene by putting up good shows in losing runs for safe Labour seats in the 1950 and 1951 elections, she was the best looking woman in politics. I've stumbled across recollections by conservative-leaning English gentlemen of a certain age -- Alec Guinness, David Lean, and Kingsley Amis -- of what a crush they had on the future Mrs. Thatcher. The thing to keep in mind about her is that she is extremely English looking, with the kind of looks that are rarely seen in America, so Americans can't see what 1950s English saw in her.

On the other hand, Thatcher had two major career advantages over Palin: a rich husband and fewer children. Mrs. Thatcher told my wife how lucky she was to have had fraternal twins so she could have a boy and a girl all at once and then get back to her career.

My published articles are archived at iSteve.com -- Steve Sailer

NCAA athletes by ethnicity

I decided to start off after the Christmas break with some data analysis. Here are the NCAA two statistics on Division I college athletes by ethnicity.

Let's take a look at Asian - Pacific Islanders (which, I must say, for the purposes of sports is the silliest aggregation):


Asian-PI

Men
Fencing 8.5
Gymnastics 7.0
Squash 6.0
Tennis 5.1
Volleyball 4.2
Swimming/Diving 3.0
Golf 2.9
Rowing 2.6
Water_Polo 2.5
Sailing 2.1
Soccer 2.1
Skiing 2.0
Rifle 1.7
Football 1.6 Samoans
Wrestling 1.6
Track,_Outdoor 1.3
Baseball 1.2
Track,_Indoor 1.2
Cross_Country 1.0
Lacrosse 0.6
Ice_Hockey 0.5
Basketball 0.4
Archery -
Bowling -
All_Sports 1.7

Notes: Fencing is one of those classic I-didn't-know-they-hand-out-scholarships-in-this sports. One of the reasons Asians do so poorly in basketball is because they do pretty well in volleyball, a sport that requires a similar skill set. (Asians and Hispanics tend to have a California-orientation to their sports -- they are a little more likely to play the kind of sports, such as volleyball and water polo, that are big in California and the Olympics). The 1.6% of NCAA Division I football players who are Asian or Pacific Islander are probably mostly Pacific Islanders, such as Samoans, who tend to be huge. Asian women are 2.5 times more represented in college golf than Asian men.

Here are Hispanics:


Hispanic

Men
Soccer 7.3
Tennis 7.2
Cross_Country 6.0
Baseball 5.4
Wrestling 5.4
Fencing 5.2
Volleyball 5.2
Water_Polo 5.0
Track,_Outdoor 4.5
Track,_Indoor 4.4
Swimming/Diving 2.9
Rowing 2.8
Golf 2.6
Gymnastics 2.3
Football 2.2
Basketball 1.8
Lacrosse 1.0
Skiing 1.0
Rifle 0.8
Ice_Hockey 0.7
Squash 0.7
Sailing 0.5
Archery -
Bowling -
All_Sports 3.8

Overall, this is pretty unimpressive, with Hispanics represented at only about one-fifth of their share of the college-age population.

Hispanics are best represented in Division I soccer, but only at a rate of about half of their share of the total population and perhaps 40% of their share of 18-22 year olds. And that's their favorite sport. Baseball at 5.4% is weak too, below the level of blacks (6.0%). With blacks, you are always reading about what a tragedy it is that African-Americans have lost interest in baseball.

Cross country at 6.0% isn't bad -- underrepresented versus their share of the population, sure, but it's not like soccer where they have a tradition of the sport.

The tennis share (7.2%) seems high. I suspect that a lot of the Hispanics playing Division I tennis are rich kids from Latin America (38.4% of all Division I male tennis players are "non-resident aliens").


Black

Men
Basketball 60.4
Football 45.9
Track,_Indoor 27.5
Track,_Outdoor 27.2
Cross_Country 11.1
Soccer 9.3
Baseball 6.0
Wrestling 5.2
Tennis 4.7
Fencing 4.4
Gymnastics 4.4
Volleyball 3.7
Golf 2.7
Lacrosse 1.8
Rifle 1.7
Swimming/Diving 1.7
Water_Polo 1.2
Rowing 0.7
Sailing 0.5
Skiing 0.5
Ice_Hockey 0.4
Archery -
Bowling -
Squash -
All_Sports 24.7

Not too many surprises here: basketball first, then football, then track. The cross country runners are probably almost all East Africans. A remarkable fraction of the star black high school cross country runners are East African immigrants. I wonder what % of the blacks playing golf, lacrosse, water polo and the like have a white parent?

NH-W

Men
Bowling 100
Rifle 90.8
Lacrosse 90.5
Archery 88.9
Sailing 88.0
Ice_Hockey 85.5
Golf 84.8
Baseball 84.5
Swimming/Diving 83.9
Wrestling 83.1
Rowing 82.7
Gymnastics 80.5
Skiing 79.8
Water_Polo 77.2
Cross_Country 76.5
Volleyball 76.5
Soccer 72.6
Squash 72.0
Fencing 71.0
Tennis 62.1
Track,_Indoor 61.9
Track,_Outdoor 61.9
Football 47.0
Basketball 32.5
All_Sports 64.2
I have no idea why the formatting comes out like this.

The low figure for whites in tennis is due to 21% registering as "Other" which is likely due to 38% being non-resident aliens. The NCAA doesn't appear to be as obsessive about making foreigners check off ethnicity boxes as it is about Americans.

My published articles are archived at iSteve.com -- Steve Sailer

December 22, 2008

Average verbal IQ scores in Presidential elections since 1976

The long-running General Social Survey includes a 10 word vocabulary test, from which you can roughly estimate IQ over large enough sample sizes. (Of course, it's biased in favor of people who are smarter with words than with numbers or images.) Audacious Epigone looks up the average IQs of white voters for each Presidential candidate 1976-2004.

Presumably, Republican candidates' voters generally average higher IQs overall -- in the exit polls, GOP voters average higher incomes and very similar education levels to Democratic voters -- but all the heat on this issue of who is smartest is generated among white people. When white Democrats go on and on about how Democrats are smarter than Republicans, they aren't thinking about all the blacks who turned out to vote for Obama this year -- e.g., in California, where Obama got 61% of the vote but gay marriage, despite the best efforts of Hollywood, got only 48% -- which Hollywood has ever since been blaming on media domination by the Elders of Mormon). In the 2008 exit poll, there was virtually no difference in years of education claimed among Obama and McCain supporters when aggregated across all races.

No, white Democrats only care about being smarter than white Republicans.

Audacious's analysis found several things of interest. On an IQ scale where the white average is set at 100, all candidates's voters since 1976 have averaged over 100. Dumb people don't vote as much as smart people and undecided swing voters tend to be not very smart either. Thus, the losing candidate in six of the eight elections had a higher IQ set of voters than the winner. In other words, losers tended to wind up with his base of people smart enough to have a fairly consistent ideology, while winners picked up the people who don't think about politics much and motivated the people sympathetic to his party in the left half of the Bell Curve to remember to show up to vote.

It's kind of like Jay Leno vs. David Letterman. Dave pitches his show at viewers with a 105 IQ, while Jay aims his show at 100 (I'm making these numbers up but I wouldn't be surprised if they were pretty accurate). Jay gets bigger ratings.

Third party voters, with the exception of Perot's, tend to have high IQs.

Republican whites tended to have higher IQs than Democrats in the early years, and as late as 1996, Dole enjoyed a 0.6 point edge over Clinton, but by 2004, Kerry had opened up a 3.9 point gap over Bush.

The future of the GOP would therefore appear to depend upon mobilizing large turnouts among whites with two digit IQs, just as the future of the Democrats depends upon mobilizing, as they successfully did in 2008, large numbers of nonwhites with two digit IQs.

My published articles are archived at iSteve.com -- Steve Sailer

December 21, 2008

Malcolm in a Muddle

Here's my review of Malcolm Gladwell's new bestseller, Outliers: The Story of Success.

Here's an excerpt from my 3700 word review:

Malcolm never misses an opportunity to miss the point. For example, consider the self-evident stupidity of Gladwell’s title, Outliers: The Story of Success. His book attempts to offer a General Theory of Success in America—why, on the whole, Jews and Asians are well educated and well-compensated while blacks and Mexicans aren’t—through anecdotes about a small number of anomalous "outliers."

Gladwell chose the word "outliers" for his title because it sounded scientific. He’s vaguely aware that statistical analysts are much concerned with the outliers in their datasets, so it sounds cool to write a book about why people like Bill Gates and the Beatles are successful and call it Outliers.

Of course, the reason statisticians think about outliers a lot is because, to quote Wikipedia, "Statistics derived from data sets that include outliers may be misleading."

For example, say you are a market researcher doing a random survey of consumers for a mutual fund company to determine the average net worth of Americans by different levels of education. You tote up your results and see that the mean wealth of your 100 college dropouts is $500,050,000.

"That’s weird," you say.

You then look at the individual surveys and see that one respondent claimed to have a fortune of fifty billion dollars.

Is he lying? Is he crazy? Or is he Bill Gates? You don’t know. All you know is that he’s an outlier and therefore you aren’t going to use him in your data set. Otherwise, your innumerate pointy-haired boss in the marketing department (who, by the way, loves Malcolm Gladwell) might take your findings as justifying a huge ad campaign aimed at the evidently vastly wealthy dropout market.

In contrast, Gladwell devotes 18 pages to Gates, without noticing that Gates is a perfect example of the kind of data point that the very concept of "outliers" tells you to be suspicious of.

But notice how Gladwell’s mistakes err in a direction favorable to his bank account. People will pay to read about the richest man in the world in the hopes that they’ll pick up some tips from him. So Gladwell makes up a theory about why Gates is so rich (he got to practice computer programming on an early timesharing terminal at his expensive prep school), just as he devotes eight pages to his theory of why the Beatles were so successful (they played live a lot in Hamburg in 1960-1962).

As usual with Gladwell, he manages to choose examples that undermine his own theory, even when his basic idea is fairly sensible. Yes, as Gladwell stresses, putting in ten thousand hours of practice is helpful at becoming really good at a trade, so it’s helpful to come from a privileged background where you can get in a lot of practice at a young age.

Nevertheless, while the Beatles got lots of practice at playing live in Hamburg, they aren’t the most famous rock group because they were an exceptionally great live band. In fact, they gave up playing live in 1967 and nobody much noticed.

Instead, they were the greatest songwriting and studio band.

Similarly, Bill Gates didn’t become the richest man in America by being a great programmer. In reality, he bought his strategically pivotal Disk Operating System from a Seattle programmer named Tim Paterson and then licensed it to IBM. No, Gates got rich by being a great monopolist—which is a more difficult career to practice far ahead of time.

Gladwell, the unofficial Minister of Propaganda for Multi-Culti Capitalism, seldom says anything negative about capitalists. For example, if you are looking for the deep roots of Gates’s unerring cunning at acquiring a monopoly at such a young age, it’s perhaps interesting that Gates’s father was a defense attorney for firms accused of antitrust violations. Unsurprisingly, Gladwell never notices that.

Indeed, Gladwell’s climactic depiction of the more just society he envisions is quite terrifying. In the grand summation of his book’s argument, he writes:

"We look at the young Bill Gates and marvel that our world allowed that thirteen-year-old to become a fabulously successful entrepreneur. But that’s the wrong lesson. Our world only allowed one thirteen-year-old unlimited access to a time-sharing terminal in 1968. If a million teenagers had been given the same opportunity, how many more Microsofts would we have today?" [p. 268]

Let a million monopolies bloom!

The great thing about Gladwell is that he’s so lacking in critical thinking skills that he just blurts out the underlying assumptions of today’s conventional wisdom, stating its stupidities in their Platonic form. To Gladwell, the long, laborious, and expensive development of the computer isn’t a great accomplishment of Western civilization for which posterity should be grateful. No, it’s a civil rights issue. See, back in 1968, "our world" hadn’t "allowed" enough teenagers—especially not enough black and Mexican ones, to use state-of-the-art time-sharing computers.

Just think—if our world had allowed a million teenagers to be given the same opportunity of unlimited access to a time-sharing terminal in 1868, we could have a billion Microsofts today!

My published articles are archived at iSteve.com -- Steve Sailer

"Spent out"???

Once again, a Washington Post reporter asks Team Obama how they are going to keep from wasting the hundreds of billions of "stimulus" dollars by spending it too fast and Team Obama replies that they are going to work hard to not spend it too slow:

Because they are intended to pump cash quickly into the economy, stimulus measures are released from the usual budgetary constraints that require the cost of new programs to be covered by cutting spending elsewhere or by raising taxes -- a one-time pass that could invite lawmakers to load the bill up with favored items.

[Larry] Summers and other Obama advisers said they are keenly aware of the problem and are working to convince lawmakers of the wisdom of limiting the package to projects that would create a large number of jobs quickly or make a down payment on Obama's broader economic goals, such as improving the health-care system or reducing emissions that contribute to global warming.

"While this may be Christmastime, it doesn't mean there's going to be a large number of unrelated ornaments under the Christmas tree," Summers said. "There's a commitment by all of us to discipline and to doing the right things in terms of accountability."

Summers said Obama's budget team is "scrubbing" various proposals for "basic soundness." The team also is developing ideas to make expenditures transparent to the public, perhaps through regular progress reports or even Internet sites where "people could monitor the fraction of each project that had been spent out," he said.

Does the term "spent out" connote to you a deep concern for making sure the taxpayers get their money's worth?

My published articles are archived at iSteve.com -- Steve Sailer