Posts about Economics

Nice Interaction with a Group of Wild Mountain Gorillas Strolling Through Camp

An amazing encounter with a troop of wild mountain gorillas near Bwindi Impenetrable National Park, Uganda. The reality is that these many natural environments will be maintained only with economic incentives. A certain amount of wilderness can be maintained with economic support from outside (government, charity…). But reasonable accommodations to find ways to make retaining natural wonders economically viable are likely a key to saving much of these environments for the future. Unfortunately there are big incentives to destroy nature from those rich tourists who don’t follow the rules and push their guides to break the rules (guides often do this as they have seen great monetary rewards [in tips] for breaking the rules (bothering animals, going too close, going to off limits areas…). It is sad how often tourists at national parks show utter disregard for nature and preserving things for later generations.

It seems like this video wasn’t about that type of behavior though. Instead it is just an example of how cool nature can be at times. Animals are not quite as predictable as some believe. Like this group that wandered into the camp (as they do a couple times a year) animals often stray from their normal behavior.

Providing good jobs and sharing revenue from tourists with local residents (paying for schools…) is a very good way to encourage residents to support natural heritage sites. This is true in Africa and also near park in the United States, or anywhere else. Here is an example of an organization doing that: Conservation Through Public Health.

I am a huge fan of tying in economic benefits to natural parks and resources. I think this is part of making them not environmentally sustainable but economically sustainable. If the areas do not make a contribution to the economic well being of those living there, there is a danger the land will be tapped for uses that will damage their natural heritage value. We do have to be careful as often these economic interests can turn into greedy people just wanting whatever they can get now (I am saddened by how often tourists behave in this way at natural wonders).

People are going to determine how land is used. We can hope that purely altruistic motives will result in long preserved natural habitats. But I don’t think that hope is as sustainable as creating a situation where it is also in people’s economic interests to maintain the environments. A combination of altruistic, long term thinking and economic interest is more likely to preserve natural environment (in my opinion).

Related: Massive Western Lowland Gorilla Population in Northern Republic of CongoGrauer’s Gorilla (Eastern Lowlands Gorilla)African Parks (a business approach to conservation)Travel photos from National Parks

Stand with Science – Late is Better than Never

The USA public has made very bad decisions in who to send to Washington DC to spend our money (and the money of our children and grandchildren). We have wasted hundreds of billions that could have been spent more wisely. I happen to think investing in science and engineering is important for a societies economic health. The problem the USA has is we have chosen to waste lots of money for decades, at some point you run out of money (yes the USA government doesn’t really, as they can print it, but essentially they do – in practical terms).

I would certainly eliminate tax breaks for trust fund babies and trust fund grandchildren (while your grandchildren are going to be left holding the bag for the spending those elected by us, the grandchildren of the rich often get huge trust funds with no taxes being paid at all). But most of the people we have elected want to give trust fund babies huge payoffs. I would cut much spending in government – spending 5% less in 2020 than we did this year would be fine with me. But we don’t elect people that support that. I would support not adding new extensions to tax cuts sold with false claims and again supported by those we continue to elect. I wouldn’t allow the financial industry subverting of markets. But again we elect people that do allow that. And when the bill comes due for letting them take tens and hundreds of millions in individual profits in the good years, we can either let the economy go into a depression (maybe) or spend hundreds of billions to trillions bailing out those institutions our politicians let threaten the economy.

It might not seem fair, but there are consequences to allowing our political system to waste huge amounts of money paying of special interests for decades. And investing in science and engineering has been a casualty and will likely continue to be. Eventually you run out of money, even for the stuff that matters. Trying to fight for politicians that will put the interests of the country ahead of their donors is not something you can do effectively only when your interests are directly threatened. At that point things may already be too bad to be saved.

I have been writing about the failed political system for quite awhile now. I wrote awhile back that Hillary Clinton’s idea to tripple the number of GRFP awards was something I thought was very smart economically. But even then I questioned if we could afford it, if we refused to do anything else different (just adding new spending isn’t what the country needed).

Even in the state the politicians we continue to elect (we elect the same people election after election – there is no confusion about what they will do) we can debate what to cut and for something we spend so little on as investing science and engineering we can even easily increase that spending and not have any real impact on cutting overall spending. But those we have elected don’t show much interest in investing in science and engineering overall.

The USA continues to invest a good deal in science and engineering. But the difference in focus today versus the 1960′s is dramatic. The USA will continue to do well in the realm of science. The advantages gained over decades leave us in a hugely beneficial position – and one that takes other countries decades to catch up to. Now some countries have been working on that for decades now, and are doing very well. China, hasn’t been at it quite as long but has been making amazingly fast progress (similar to the amazing economic story).

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Robot Prison Guards in South Korea

photo of robot prison guard

Robotic prison wardens to patrol South Korean prison

The one-month trial will cost 1bn won (£554,000) and is being sponsored by the South Korean government. It is the latest in a series of investments made by the state to develop its robotics industry.

The country’s Ministry of Knowledge Economy said in January that it had spent the equivalent of £415m on research in the sector between 2002 and 2010. It said the aim was to compete with other countries, such as Japan, which are also exploring the industry’s potential.

In October the ministry said the Korean robot market had recorded 75% growth over the past two years and was now worth about £1 billion…

The potential market for robotics is huge. Smart countries are investing in becoming the centers for excellence in that area. Japan and South Korea may well be in the lead. The USA, Germany and China also have strong communities.

Related: Robot Finds Lost Shoppers and Provides DirectionsThe Robotic Dog (2008 post)Soft Morphing Robot FutureHonda’s Robolegs Help People WalkRoachbot: Cockroach Controlled Robot

Eliminating NSF Program to Aid K-12 Science Education

Changing American science and engineering education

In exchange for funding for their graduate studies, Kahler and other fellows contribute to the science curriculum in local primary and secondary schools from kindergarten through grade 12. Kahler taught science at Rogers-Herr Middle School in Durham.

He also taught for two summers in India, and in Texas, as part of Duke TIP, the Talent Identification Program, which identifies academically gifted students and provides them with intellectually stimulating opportunities.

Through these teaching experiences in different locations and cultures, Kahler observed several factors that affect the quality of education in American schools. One important factor is the training of teachers. Unfortunately, teachers are sometimes expected to teach science without having received an adequate background in the subject.

STEM fellows helped to address this problem by contributing their expertise and by helping to increase the scientific literacy of students and their teachers.

Kahler says that NSF GK-12 has a strong, positive impact to change this because it simultaneously improves the educational experience of students in primary and secondary school and trains graduate students to communicate and teach effectively.

Unfortunately, the NSF GK-12 program is no longer in the NSF budget for 2012.

Sadly the USA is choosing to speed money on things that are likely much less worthwhile to our future economic well being. This has been a continuing trend for the last few decades so it is not a surprise that the USA is investing less and less in science and engineering education while other countries are adding substantially to their investments (China, Singapore, Korea, India…).

As I have stated before I think the USA is making a big mistake reducing the investment in science and engineering, especially when so many other countries have figured how how smart such investments are. The USA has enjoyed huge advantages economically from science and engineering leadership and will continue to. But the potential full economic advantages are being reduced by our decisions to turn away from science investment (in education and other ways).

Related: The Importance of Science EducationTop Countries for Science and Math Education: Finland, Hong Kong and KoreaEconomic Strength Through Technology Leadership

Engineers are the new Currency

Silicon Vally investor discusses keys to good investment companies: “Engineers are the new currency… having the right engineers that can innovate and deliver is absolutely vital to success… It takes a great team to help the entrepreneur develop”

The video also makes the point that what separates Silicon Valley is the engineering talent.

Related: S&P 500 CEO’s: Engineers Stay at the TopEngineers Rule at HondaThe Google Way: Give Engineers RoomStatistics on Entrepreneurship

Student Engineers Without Borders Project: Learning While Making a Difference in Kenya

photo of workers digging a large hole dug for the bio-gas latrine, while schoolchildren look on.

Engineers Without Borders students make progress, learn lessons in Kenya

Knowing nothing about Third-World development, the original [Engineers Without Borders] EWB students accepted an assignment from the national EWB to bring clean water wells and sanitary latrines to 58 elementary schools in the poor Khwisero district, where villagers live by subsistence farming.

Each year, new MSU students take up the challenge, aiming not only to provide healthier drinking water but to relieve Kenyan children of the chore of hiking more than a mile to fetch water every day from dirty water holes, which cuts into their schooling, particularly for girls.

They finally broke ground on their first pipeline system, which has been three years in the making. It will bring piping water from a high-quality well to several villages and eventually to a health clinic and a market. Villagers have committed to digging trenches for the water pipes.

This is a great program. Students learn a great deal by taking on real world problems and implementing solutions. As I have said before, I really love to see appropriate technology solutions put in place. We can drastically improve people’s lives by helping put solutions in place that work, are cost effective and can be maintained. Improving people’s quality of life is at the core of why engineering is so wonderful.

Related: Smokeless Stove Saves LivesEngineering a Better World: Bike Corn-ShellerHigh School Inventor Teams @ MIT Bring Clean Water to VillageWater and Electricity for All
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Cutting the Boarding Time of Planes in Half

I thought I wrote about this several years ago, but I guess I didn’t (I can’t find it, if I did). Experimental test of airplane boarding methods:

The Ste en method, on the other hand, orders the passengers in such a way that adjacent passengers in line are sitting in corresponding seats two rows apart from each other (e.g., 12A, 10A, 8A, 6A, etc.). This method trades a small number of aisle interferences at the front of the cabin, for the benefit of having multiple passengers stowing their luggage simultaneously. Other methods, such as Wilma and the Reverse Pyramid also realize parallel use of the aisle in a natural way as adjacent passengers are frequently sitting in widely separated rows.

We have seen experimentally that there is a marked difference in the time required to board an aircraft depending upon the boarding method used. The evidence strongly supports the heuristic argument from Ste en that methods that parallelize the boarding process by more efficiently utilizing the aisle (having more passengers stow their luggage simultaneously) will board more quickly than those that do not. The relative benefit of the application of this theory will grow with the length of the aircraft. Here, we used a 12-row mock airplane, but a more typical airplane with twice that number of rows will gain more by the implementation of parallelized boarding methods.

How this improvement scales with the cabin length is different for each method. For the Ste en method, the benefit will scale almost linearly. If the airplane is twice as long, the time savings will be nearly twice as much since the density of luggage-stowing passengers will remain the same and the boarding will still be maximally parallel. For Wilma and random boarding the benefit will not be as strong since the benefits of parallel boarding are randomly distributed along the length of the cabin instead of being regularly distributed.

I am not optimistic that airlines will even test out this method. People tend to think companies apply sensible, proven concepts and methods. But that is much less likely to be done than people think. The failure of many places to use simple queuing theory improvement (customers should form one line and be served the next available person not form many individual lines) is one example of failures by companies to apply decades old proven better methods. The poor adoption of multivariate designed experiments is another. Applying better ideas is a process that is not done very efficiently in business, health care, education or even science and engineering – in fact in any human endeavor. This is a waste that impacts each of us every day. It is also an opportunity for you to gain advantages just by applying all the good ideas lying around that others are ignoring. You need to test the ideas out in your setting (using the PDSA cycle in an organizational context a good method).

Related: Engineering the Boarding of AirplanesSuccessful Emergency Plane Landing in the Hudson RiverChecklists Save LivesImproving Engineering Education

The Politics of Anti-Science

In the 1960′s the USA had an unrealistic view of how much studying and learning about science and engineering could do. Investing is science and engineering is an extremely wise economic (and cultural) endeavor but it isn’t going to solve all the problems that exist. Somehow today we find ourselves with a large number of politically powerful people we take strong anti-science positions. These tactics reduce funding and support for beneficial research and are short sited approaches to public administration. This is an unfortunate turn of events that is damaging the American economy and will have huge damages going forward.

Thankfully other countries have seen how wise investing in science and engineering is and have more than taken up the slack create by the anti-science community. Two favorite tactics of the anti-science leaders is to try and create confusion where there is none and to turn the focus away from serious matters and instead playing silly political games. The silly games will draw donors and voters so if they care about those things more than the country and the future of the country it is a sound tactic. The damage it causes the country however I would hope would limit the use of such tactics however that has not been the case recently.

‘Shrimp On A Treadmill’: The Politics Of ‘Silly’ Studies

ake the case of the “shrimp on a treadmill.” Burnett says the senator’s report linked that work to a half-million-dollar research grant. But that money actually went to a lot of different research that he and his colleagues did on this economically important seafood species.

The treadmills were just a small part of it, a way to measure how shrimp respond to changes in water quality. Burnett says the first treadmill was built by a colleague from scraps and was basically free, and the second was fancier and cost about $1,000. The senator’s report was misleading, says Burnett, “and it suggests that much money was spent on seeing how long a shrimp can run on a treadmill, which was totally out of context.”

John Hart, a Coburn spokesperson, said in an email that “our report never claimed all the money was spent on shrimp on a treadmill. The scientists doth protest too much. Receiving federal funds is a privilege, not a right. If they don’t want their funding scrutinized, don’t ask.”

What the politicians are doing is exactly what this spokesperson suggests – they are withdrawing from the anti-science culture created by some in Washington: they are moving their research to countries that support rather than attack science. That is a very bad thing for the USA. There are a number of very bad economic policies a government can take. Driving scientists and engineers into the arms of other countries is one of the worst.
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Career Prospect for Engineers Continues to Look Positive

As I have written previously the career prospects for engineers are bright around the globe. Many countries realize the importance of engineering and have taken steps to compete as a center of excellence for engineering. It is a smart economic policy. Ironically, the USA, that did such a great job at this in the 1960′s and 1970′s, has been falling down in this regard. A significant reason for this is the USA can only fund so many things and a broken health care system, military complex, bailouts to bankers (trust fund babies and others) cost a lot of money. You chose what to fund, and those are taking much of the available USA funds. There are also non-economic reasons, such as the turn in the last decade in the USA to make the barriers for foreigner engineers (and others) to go through to go to school, visit and stay in the USA have all increased dramatically.

Back to the prospects for engineers: their are shortages of good engineers all over (and the future projections don’t show any reason to believe this will change). Germany Faces a Shortage of Engineers:

In June, the Association of German Engineers (VDI) reported that there were 76 400 vacant engineering jobs—an all-time high.

Policymakers in Berlin have responded to the shortage of skilled workers with a number of measures, including changes in immigration rules that allow German companies to hire engineers from other countries, including those outside of the European Union. Among them: The annual salary that companies must pay foreigners has been lowered from 60,000 Euro (US $95,000) to 40,000 Euro, which is roughly the starting salary of an engineering graduate in Germany…

To make it easy for engineers to move around Europe, engineering associations and other groups across Europe are working with the European Commission (the executive arm of the European Union) to launch the new Engineering Card. The card, which German engineers can apply for now and other countries are planning to launch, provides standardized information about the engineer’s qualifications and skills for greater transparency.

“We don’t expect many engineers will come, because among other reasons, there is a shortage of engineers across Europe,”

Related: Engineering Again Dominates The Highest Paying College Degree ProgramsS&P 500 CEO’s: Engineers Stay at the TopChina’s Technology Savvy LeadershipEngineers: Future ProspectsEconomic Strength Through Technology Leadership

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How Algorithms Shape our World

Our modern world is influenced greatly by algorithms. As computing power allowed incredibly complex calculation we have taken advantage of that and used algorithms to find solutions to our desires. Great things are done but we also find ourselves getting into trouble occasionally as we develop these algorithm.

Related: Algorithmic Self-AssemblyComputer Science RevolutionGoogle’s Answer to Filling Jobs Is an AlgorithmWhat are Genetic Algorithms?Google Prediction API

The State of the Oceans

World’s oceans in ‘shocking’ decline

In a new report, [an expert panel of scientists] warn that ocean life is “at high risk of entering a phase of extinction of marine species unprecedented in human history”. They conclude that issues such as over-fishing, pollution and climate change are acting together in ways that have not previously been recognised.

ocean acidification, warming, local pollution and overfishing are acting together to increase the threat to coral reefs – so much so that three-quarters of the world’s reefs are at risk of severe decline.

The report also notes that previous mass extinction events have been associated with trends being observed now – disturbances of the carbon cycle, and acidification and hypoxia (depletion of oxygen) of seawater.

Levels of CO2 being absorbed by the oceans are already far greater than during the great extinction of marine species 55 million years ago (during the Paleocene-Eocene Thermal Maximum), it concludes.

The overfishing of our oceans has been a problem for over 100 years and a known problem, that we continue to give too little attention to. Adding to that impacts of climate change and the state of ocean life is in trouble. The decision of our population to not deal with the causes of climate change will have very bad consequences. It is a shame we have so little caring about the consequences of our decisions. And even sadder that our “leaders” do such an appalling job of leading – instead they pander to selfish immediate gratification.

Related: Altered Oceans: the Crisis at Sea (2006)Unless We Take Decisive Action, Climate Change Will Ravage Our PlanetArctic System on Trajectory to New, Seasonally Ice-Free State (2005)

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