Charisma is sometimes suggested as a source of value. Great leadership can stimulate effort. Katz and Kahn argued that leadership can provide an increment of effort. But is charismatic leadership the true source of economic growth?
The answer is no. Economists recognize that technology and capital investment are critical sources of economic growth. Charisma existed throughout history. Ramses the Great claimed to have defeated the Hittites at Kadesh and Shakespeare commemorates Henry V's victory at Agincourt as he exhorts his outnumbered army:
"This story shall the good man teach his son;
And Crispin Crispian shall ne'er go by,
From this day to the ending of the world,
But we in it shall be remember'd;
We few, we happy few, we band of brothers;
For he to-day that sheds his blood with me
Shall be my brother; be he ne'er so vile,
This day shall gentle his condition:
And gentlemen in England now a-bed
Shall think themselves accursed they were not here,
And hold their manhoods cheap whiles any speaks
That fought with us upon Saint Crispin's day."
To what extent can charisma create economic value? It would seem incrementally. The major advances in economic history occurred because of innovation at the individual and firm levels. They occurred in the 19th and twentieth century, especially during the period of laissez-faire from the 19th to the early 20th century in England and America.
There were many examples of charisma throughout ancient and medieval history, but the economy did not progress. Fundamental progress is due to technological breakthrough, capital accumulation wisely administered and understanding of customer value. In countries where the state predominates, such as the Soviet Union, China, Cuba and Sweden, there has been little economic advance. Just like the medieval world (according to which it is conceptualized), socialism is an ideology of economic stagnation and decline. State capitalism is less socialistic and so sees less decline. The socialist economies that do function, such as Sweden's, do so in the context of globalized trading with market economies. Without globalization the Swedes would still be serfs in the bruks and communistic shared fields.
What is the role of charisma then? It provides interest, stimulation and incremental motivation. It is rarer in business than in the military or other walks of life. But there has been much more progress in business than in other institutions, except for science. And charisma is notably absent from scientific endeavor as well.
Sunday, April 26, 2009
Saturday, April 25, 2009
Governmental Loss Function
Government necessarily provides inferior service because of the scope of which it attempts. This is unavoidable, but losses can be reduced through particularization or decentralization. The Taguchi loss function formalizes the insights of Edward I. Deming. It can be applied to any production system or to services like government. The goal is to minimize variance from a customer's expectation target. In the case of government there are, of course, multiple targets. You can view governmental service as a multi-dimensional set of services. Some dimensions intersect with voter/customer preferences, others are for all purposes infinitely distant. Tax loss function presumably has a quality target of some low number. Some services are of concern to some voters, and the problem for government is to minimize losses arising from voters who are a finite distance from particular quality targets. In other cases, though, voters do not care about services.
Governmental loss functions cannot rotate without changing distance (amount of loss) for some and increasing it for others. Losses to taxpayers are increased as gains to tax consumers are increased. Moreover, the constellation of services can be changed only at taxpayer expense. Preferences form market segments. Identification of segments is part of political processes. However, total losses can increase even with a winning voter coalition. This is possible because vastly increasing losses for a minority can be accompanied by modest increases for the majority.
Limiting the scope of government would limit the losses because preferences can be targeted to varying segments. Loss minimization means better democracy and better satisfaction of public preferences. Thus, there is a quality advantage to decentralization.
The major threat to quality in government services is the Olson/Stigler economic loss due to political pressure. As size increases asymmetric advantages to specific groups increase. This is because lobbying and organizational costs increase and because small losses in a particular lobbying episode may be insufficient to motivate resistance. Multiple small losses across a large geography and population accumulate, resulting in far larger losses than would be possible in a smaller population and geographic area. Thus, satisfaction with state and local services is likely to be higher than satisfaction with federal government services. Lack of awareness of federal government services is likely to be greater than lack of awareness of state and local services.
Decentralized blocks can make more rational decisions because incentives to participate are greater.
Governmental loss functions cannot rotate without changing distance (amount of loss) for some and increasing it for others. Losses to taxpayers are increased as gains to tax consumers are increased. Moreover, the constellation of services can be changed only at taxpayer expense. Preferences form market segments. Identification of segments is part of political processes. However, total losses can increase even with a winning voter coalition. This is possible because vastly increasing losses for a minority can be accompanied by modest increases for the majority.
Limiting the scope of government would limit the losses because preferences can be targeted to varying segments. Loss minimization means better democracy and better satisfaction of public preferences. Thus, there is a quality advantage to decentralization.
The major threat to quality in government services is the Olson/Stigler economic loss due to political pressure. As size increases asymmetric advantages to specific groups increase. This is because lobbying and organizational costs increase and because small losses in a particular lobbying episode may be insufficient to motivate resistance. Multiple small losses across a large geography and population accumulate, resulting in far larger losses than would be possible in a smaller population and geographic area. Thus, satisfaction with state and local services is likely to be higher than satisfaction with federal government services. Lack of awareness of federal government services is likely to be greater than lack of awareness of state and local services.
Decentralized blocks can make more rational decisions because incentives to participate are greater.
My Letter to Congressman Maurice Hinchey Re HR 45
Dear Congressman Hinchey:
I oppose gun control and in particular HR 45, Representative Bobby Rush's (D-IL)Blair Holt's Firearm Licensing and Record of Sale Act of 2009, the text of which is located at http://www.opencongress.org/bill/111-h45/text.
As you likely know, the Federalist Papers #29, written by Alexander Hamilton, describes the nature of what the Founding Fathers saw as a militia. Hamilton leaves little doubt that the reason for the Second Amendment is protection against incursion against liberty by the state.
Given current developments in Washington, there is little reason to believe that the US government is legitimate or trustworthy. Rather, it is tyrannical. I have written to you previously advocating a 75% reduction in the federal budget, but you obviously have failed to respond in practice.
I would like to know your position on HR 45. I have indicated my e-mail and regular mailing address above.
Sincerely,
Mitchell Langbert
I oppose gun control and in particular HR 45, Representative Bobby Rush's (D-IL)Blair Holt's Firearm Licensing and Record of Sale Act of 2009, the text of which is located at http://www.opencongress.org/bill/111-h45/text.
As you likely know, the Federalist Papers #29, written by Alexander Hamilton, describes the nature of what the Founding Fathers saw as a militia. Hamilton leaves little doubt that the reason for the Second Amendment is protection against incursion against liberty by the state.
Given current developments in Washington, there is little reason to believe that the US government is legitimate or trustworthy. Rather, it is tyrannical. I have written to you previously advocating a 75% reduction in the federal budget, but you obviously have failed to respond in practice.
I would like to know your position on HR 45. I have indicated my e-mail and regular mailing address above.
Sincerely,
Mitchell Langbert
Democrats Assault Second Amendment
A poster to my blog wrote about this bill (poster's text follows the text of the bill). I would be interested in further information on this subject. This is what Open Congress has for HR 45. The bill is sponsored by Rep. Bobby Rush (D-Il).
Blair Holt's Firearm Licensing and Record of Sale Act of 2009
To provide for the implementation of a system of licensing for purchasers of certain firearms and for a record of sale system for those firearms, and for other purposes.
Current 111st session of congress OpenCongress Summary:
The Blair Holt's Firearm Licensing and Record of Sale Act would establish a nationwide system for prohibiting unlicensed gun-ownership. If approved, the law would require gun owners to apply for five-year licenses to own firearms, and would give the U.S. Attorney General broad authority over the program. There are no co-sponsors to the bill, and there is very little chance it will be adopted.
Short: Blair Holt's Firearm Licensing and Record of Sale Act of 2009 as introduced.
Official: To provide for the implementation of a system of licensing for purchasers of certain firearms and for a record of sale system for those firearms, and for other purposes. as introduced.
1/6/2009--Introduced.
Blair Holt's Firearm Licensing and Record of Sale Act of 2009 - Amends the Brady Handgun Violence Prevention Act to prohibit a person from possessing a firearm unless that person has been issued a firearm license under this Act or a state system certified under this Act and such license has not been invalidated or revoked. Prescribes license application, issuance, and renewal requirements.
Prohibits transferring or receiving a qualifying firearm unless the recipient presents a valid firearms license, the license is verified, and the dealer records a tracking authorization number. Prescribes firearms transfer reporting and record keeping requirements. Directs the Attorney General to establish and maintain a federal record of sale system.
Prohibits:
(1) transferring a firearm to any person other than a licensee, unless the transfer is processed through a licensed dealer in accordance with national instant criminal background check system requirements, with exceptions;
(2) a licensed manufacturer or dealer from failing to comply with reporting and record keeping requirements of this Act;
(3) failing to report the loss or theft of the firearm to the Attorney General within 72 hours;
(4) failing to report to the Attorney General an address change within 60 days; or
(5) keeping a loaded firearm, or an unloaded firearm and ammunition for the firearm, knowingly or recklessly disregarding the risk that a child is capable of gaining access, if a child uses the firearm and causes death or serious bodily injury.
Prescribes criminal penalties for violations of firearms provisions covered by this Act.
Directs the Attorney General to:
(1) establish and maintain a firearm injury information clearinghouse;
(2) conduct continuing studies and investigations of firearm-related deaths and injuries; and
(3) collect and maintain current production and sales figures of each licensed manufacturer.
Authorizes the Attorney General to certify state firearm licensing or record of sale systems.
(4) failing to report to the Attorney General an address change within 60 days; or
(5) keeping a loaded firearm, or an unloaded firearm and ammunition for the firearm, knowingly or recklessly disregarding the risk that a child is capable of gaining access, if a child uses the firearm and causes death or serious bodily injury.
Prescribes criminal penalties for violations of firearms provisions covered by this Act.
Directs the Attorney General to:
(1) establish and maintain a firearm injury information clearinghouse;
(2) conduct continuing studies and investigations of firearm-related deaths and injuries; and
(3) collect and maintain current production and sales figures of each licensed manufacturer.
Authorizes the Attorney General to certify state firearm licensing or record of sale systems.
*The poster writes:
>I am not positive but, it could be something in the line of a bill congress is trying to pass will we are being distracted. Try going to this site and read up. http://www.opencongress.org/bill/111-h45/text
I recieved an e-mail from a friend with this information. Congress is now starting on the firearms confiscation bill. If it passes, gun owners will become criminals if you don't fully comply.
It has started.
Very Important for you to be aware of a new bill HR 45 introduced into the House. This is the Blair Holt Firearm Licensing & Record of Sale Act of 2009.
This was just on the Peter Boyles radio program.
Even gun shop owners didn't know about this because the government is trying to fly
it under the radar.
To find out about this - go to any government website and type in HR 45 or Google HR 45 Blair Holt Firearm Licensing & Record of Sales Act of 2009.
You will get all the information.
Basically this would make it illegal to own a firearm - any rifle with a clip or ANY pistol unless:
-It is registered
-You are fingerprinted
-You supply a current Driver's License
-You supply your Social Security #
-You will submit to a physical & mental evaluation at any time of
their choosing
-Each update - change or ownership through private or public sale
must be reported and costs $25 - Failure to do so you automatically lose the
right to own a firearm and are subject up to a year in jail.
-There is a child provision clause on page 16 section 305 stating a
child-access provision. Gun must be locked and inaccessible to
any child under 18.
-They would have the right to come and inspect that you are
storing your gun safely away from accessibility to children and fine is
punishable for up to 5 yrs. in prison.
If you think this is a joke - go to the website and take your
pick of many options to read this. It is long and lengthy. But, more and
more people are becoming aware of this. Pass the word along. Any hunters in
your family pass this along.
Peter Boyles is on this and having guests. Listen to him on KHOW 630
a.m. in the morning. He suggests the best way to fight this is
to tell all your friends about it and "spring into action". Also he
suggests we all join a pro-gun group like the Colorado Rifle Association, hunting
associations, gun clubs and especially the NRA.
This is just a "termite" approach to complete confiscation of
guns and disarming of our society to the point we have no defense - chip
away a little here and there until the goal is accomplished before anyone
realizes it.
This is one to act on whether you own a gun or not.
If you take my gun, only the criminal will have one to use
against me.
HR 45 only makes me/us less safe. After working with convicts
for 26 years I know this bill, if passed, would make them happy and in less
danger from their victims.
http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.45:
http://www.opencongress.org/bill/111-h45/show
http://www.govtrack.us/congress/bill.xpd?bill=h111-45
Please.. copy and send this out to EVERYONE in the USA , whether you
support the Right to Bear Arms or are for gun control. We all should have
the right to choose.
April 24, 2009 11:41 PM
Blair Holt's Firearm Licensing and Record of Sale Act of 2009
To provide for the implementation of a system of licensing for purchasers of certain firearms and for a record of sale system for those firearms, and for other purposes.
Current 111st session of congress OpenCongress Summary:
The Blair Holt's Firearm Licensing and Record of Sale Act would establish a nationwide system for prohibiting unlicensed gun-ownership. If approved, the law would require gun owners to apply for five-year licenses to own firearms, and would give the U.S. Attorney General broad authority over the program. There are no co-sponsors to the bill, and there is very little chance it will be adopted.
Short: Blair Holt's Firearm Licensing and Record of Sale Act of 2009 as introduced.
Official: To provide for the implementation of a system of licensing for purchasers of certain firearms and for a record of sale system for those firearms, and for other purposes. as introduced.
1/6/2009--Introduced.
Blair Holt's Firearm Licensing and Record of Sale Act of 2009 - Amends the Brady Handgun Violence Prevention Act to prohibit a person from possessing a firearm unless that person has been issued a firearm license under this Act or a state system certified under this Act and such license has not been invalidated or revoked. Prescribes license application, issuance, and renewal requirements.
Prohibits transferring or receiving a qualifying firearm unless the recipient presents a valid firearms license, the license is verified, and the dealer records a tracking authorization number. Prescribes firearms transfer reporting and record keeping requirements. Directs the Attorney General to establish and maintain a federal record of sale system.
Prohibits:
(1) transferring a firearm to any person other than a licensee, unless the transfer is processed through a licensed dealer in accordance with national instant criminal background check system requirements, with exceptions;
(2) a licensed manufacturer or dealer from failing to comply with reporting and record keeping requirements of this Act;
(3) failing to report the loss or theft of the firearm to the Attorney General within 72 hours;
(4) failing to report to the Attorney General an address change within 60 days; or
(5) keeping a loaded firearm, or an unloaded firearm and ammunition for the firearm, knowingly or recklessly disregarding the risk that a child is capable of gaining access, if a child uses the firearm and causes death or serious bodily injury.
Prescribes criminal penalties for violations of firearms provisions covered by this Act.
Directs the Attorney General to:
(1) establish and maintain a firearm injury information clearinghouse;
(2) conduct continuing studies and investigations of firearm-related deaths and injuries; and
(3) collect and maintain current production and sales figures of each licensed manufacturer.
Authorizes the Attorney General to certify state firearm licensing or record of sale systems.
(4) failing to report to the Attorney General an address change within 60 days; or
(5) keeping a loaded firearm, or an unloaded firearm and ammunition for the firearm, knowingly or recklessly disregarding the risk that a child is capable of gaining access, if a child uses the firearm and causes death or serious bodily injury.
Prescribes criminal penalties for violations of firearms provisions covered by this Act.
Directs the Attorney General to:
(1) establish and maintain a firearm injury information clearinghouse;
(2) conduct continuing studies and investigations of firearm-related deaths and injuries; and
(3) collect and maintain current production and sales figures of each licensed manufacturer.
Authorizes the Attorney General to certify state firearm licensing or record of sale systems.
*The poster writes:
>I am not positive but, it could be something in the line of a bill congress is trying to pass will we are being distracted. Try going to this site and read up. http://www.opencongress.org/bill/111-h45/text
I recieved an e-mail from a friend with this information. Congress is now starting on the firearms confiscation bill. If it passes, gun owners will become criminals if you don't fully comply.
It has started.
Very Important for you to be aware of a new bill HR 45 introduced into the House. This is the Blair Holt Firearm Licensing & Record of Sale Act of 2009.
This was just on the Peter Boyles radio program.
Even gun shop owners didn't know about this because the government is trying to fly
it under the radar.
To find out about this - go to any government website and type in HR 45 or Google HR 45 Blair Holt Firearm Licensing & Record of Sales Act of 2009.
You will get all the information.
Basically this would make it illegal to own a firearm - any rifle with a clip or ANY pistol unless:
-It is registered
-You are fingerprinted
-You supply a current Driver's License
-You supply your Social Security #
-You will submit to a physical & mental evaluation at any time of
their choosing
-Each update - change or ownership through private or public sale
must be reported and costs $25 - Failure to do so you automatically lose the
right to own a firearm and are subject up to a year in jail.
-There is a child provision clause on page 16 section 305 stating a
child-access provision. Gun must be locked and inaccessible to
any child under 18.
-They would have the right to come and inspect that you are
storing your gun safely away from accessibility to children and fine is
punishable for up to 5 yrs. in prison.
If you think this is a joke - go to the website and take your
pick of many options to read this. It is long and lengthy. But, more and
more people are becoming aware of this. Pass the word along. Any hunters in
your family pass this along.
Peter Boyles is on this and having guests. Listen to him on KHOW 630
a.m. in the morning. He suggests the best way to fight this is
to tell all your friends about it and "spring into action". Also he
suggests we all join a pro-gun group like the Colorado Rifle Association, hunting
associations, gun clubs and especially the NRA.
This is just a "termite" approach to complete confiscation of
guns and disarming of our society to the point we have no defense - chip
away a little here and there until the goal is accomplished before anyone
realizes it.
This is one to act on whether you own a gun or not.
If you take my gun, only the criminal will have one to use
against me.
HR 45 only makes me/us less safe. After working with convicts
for 26 years I know this bill, if passed, would make them happy and in less
danger from their victims.
http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.45:
http://www.opencongress.org/bill/111-h45/show
http://www.govtrack.us/congress/bill.xpd?bill=h111-45
Please.. copy and send this out to EVERYONE in the USA , whether you
support the Right to Bear Arms or are for gun control. We all should have
the right to choose.
April 24, 2009 11:41 PM
Subscribe to:
Comments (Atom)
