Tag Archives: political economy

Department of YGTBSM

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Amtrak has decided to refurbish New York City’s Penn Station, which will involve unavoidable disruption through the summer.  New York Governor Andrew Cuomo (D) doesn’t think Amtrak is up to the task, so he’s bringing New York to the rescue.

The state will step up and do it.  We don’t own Penn Station but we will step up and we’ll take over construction and we’ll do it with a private construction company or let the Port Authority do it.

So generous.  Here’s how the Democrat will execute his generosity.

As long as New York City steps up to the plate with funding, I will step up to the plate with leadership and management responsibility,

Let’s you and him get to work.  Bring your wallet and safety boots; I’ll bring my clipboard.

The Rise of the PRC

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Graham Allison, Director of the Kennedy School Belfer Center for Science and International Affairs at Harvard, had some thoughts in The Boston Globe.  Here’s one that’s not in the usual political or military race discussion.

In STEM subjects (science, technology, engineering, and mathematics)…[the PRC] annually graduates four times as many students as the United States (1.3 million vs 300,000).

A better measure would compare the quality of those graduates and their programs so as to arrive at similarly qualified graduates.

Still, numbers have a quality all their own.  Let’s play a bit with these two.  Suppose, for instance, that 80% or American STEM graduates actually know their material, i.e., the graduates didn’t just sleep-walk their way through a mediocre program; they actually got and understood a good, solid STEM education.  That works out to 240k solid STEM grads.

Suppose that of the PRC’s graduates only 50% measure up to that standard.  That still works out to 650k solid STEM grads, or for you non-STEM folks, 2.7 times more quality grads than we’re producing.  That’s something to take seriously.

This is a long-term, generational, race that we can’t afford to lose.

Hindsight

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…and learning from it for better anticipations.

Federal Reserve officials grappling with the legacy of expansive stimulus would find it difficult to return to the central bank’s precrisis role on the sidelines of financial markets, analysts and central-bank watchers say.

Well, NSS.  Frankly, these worthies should have known the outcomes likely from their intervention before they intervened.

Aside from the magnitude of the necessary rollback and its attendant difficulty—the Fed’s balance sheet has expanded four and a half times, from $1 trillion to $4.5 trillion since right before the Panic of 2008—there’s the human engineering aspect of personal political power:

The Fed has become “like an octopus,” said Jeffrey Cleveland, chief economist at Payden & Rygel, a Los Angeles money manager.  “Once you get the power and you are influencing all these markets, do you really want to retreat from all that?”

Well,…

New York Fed President William Dudley told an audience this month the portfolio isn’t likely to return to its precrisis size. Federal Reserve Bank of San Francisco President John Williams said this month the portfolio would be “significantly smaller” than it is today, but likely above $2 trillion in assets.

Still twice the original size of the Fed’s balance sheet.  Oops.

Now the rationalization, summarized in the subheadline of the article at the link:

Pulling out of newest central-bank innovations risks market disruptions

A definite possibility, but there’s not much concern for the underlying economy in that remark.  And the economy is what’s important.

We’ll see whether these guys are worth their taxpayer-funded paychecks by how well they learn from hindsight and their mistake.  It doesn’t look promising.

The Trans-Pacific Partnership Isn’t Dead

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The remaining 11 nations of the erstwhile TPP have made it clear that they intend to press on with the agreement, US participation or not, but that the US would be welcome back in, and other nations who could “meet the high standards in the TPP agreement” would be welcome, as well.

Todd McClay, New Zealand Trade Minister:

It’s clear that each country is having to consider both economic values and strategic importance of this agreement, but in the end, there is a lot of unity among all of the countries and a great desire to work together to come up with an agreement among 11 that…delivers for all of our economies and the people of our countries….

This is entirely appropriate.  The same principles the led to our initial attempts to form the 12-nation TPP—enhanced mutual economic and political security—apply to the remaining 11 nations.

When Were They Not?

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All IT Jobs Are Cybersecurity Jobs Now goes the headline on a recent Wall Street Journal article, and the subhead reads The rise of cyberthreats means that the people once assigned to setting up computers and email servers must now treat security as top priority.

It’s like these folks—both in the IT arena and in the reporting media—have just had an epiphany.

The global “WannaCry” ransomware attack that peaked last week, and has affected at least 200,000 computers in 150 countries, as well as the growing threat of Adylkuzz, another new piece of malware, illustrate a basic problem that will only become more pressing as ever more of our systems become connected: the internet wasn’t designed with security in mind, and dealing with that reality isn’t cheap or easy.

No, it wasn’t.  But it’s not the Internet that’s at the heart of these failures.  It’s the company connections to the Internet, and the corporate human employees who aren’t being trained in how to handle the company’s connection to the Internet that is at the heart of these failures.  IT has—or should have had—security at its heart from the time the first companies connected themselves to the Internet.

Even if nation-level espionage might not have been on the minds of private enterprise, the proprietary nature of company information and the fact of corporate espionage are as old as corporations.

Christopher Mims, in his article at the link, offered some sound advice for today.  That the advice should have been obvious yesterday in no way invalidates it for today.

  1. Retrain IT staff on security—or replace them. In today’s world of ever-multiplying threats and dependence on connected assets, all IT staff must now be cybersecurity staff first.

Indeed.

  1. Push everything to the cloud. It used to be the job of IT personnel was to build and maintain the tools employees need. Now, pretty much anything can be done better with a cloud-based service.

I disagree with this.  The cloud is no more securable than a corporate’s internal network—and when (not if) the cloud gets hacked, it won’t be only one company’s stuff that gets stolen or held hostage.  Even if it’s only a company’s internal cloud that gets hacked, the whole of the company’s innards get exposed.

  1. New IT investment will need baked-in security.

Can I get an amen, brothers and sisters?