21 Apr 2017
by Jim Rose
in discrimination, gender, health and safety, labour economics, labour supply, occupational choice, politics - New Zealand
Tags: and gender gap, compensating differentials, gender wage gap, value of life, workplace injuries
Gender gaps in injuries and fatalities go beyond those industries demanding physical.strength.

There are noticeable differences in the occupational choices of single people, parents, and single parents. Women choose safer jobs than men; single moms or dads are most averse to fatal risk because they have the most to lose. About one quarter of occupational differences between men and women can be attributed to the risks of injury and death.
All but 3 of the fatal workplace accidents in New Zealand in 2015 were men.
![image_thumb[1] image_thumb[1]](https://utopiayouarestandinginit.com/wp-content/uploads/2017/04/image_thumb1_thumb.png?w=556&h=338)
Source: Accident Compensation Corporation, Statistics New Zealand.
This gender gap in the risk of injury and death can lead to a significant gender wage gap because of the wage premium associated with these risks and in particular the risk of death as Viscusi explained.
The bottom line is that market forces have a powerful influence on job safety. The $120 billion in annual wage premiums referred to earlier is in addition to the value of workers’ compensation. Workers on moderately risky blue-collar jobs, whose annual risk of getting killed is 1 in 10,000, earn a premium of $300 to $500 per year.
The imputed compensation per “statistical death” (10,000 times $300 to $500) is therefore $3 million to $5 million. Even workers who are not strongly averse to risk and who have voluntarily chosen extremely risky jobs, such as coal miners and firemen, receive compensation on the order of $600,000 per statistical death…
Other evidence that the safety market works comes from the decrease in the riskiness of jobs throughout the century. One would predict that as workers become wealthier they will be less desperate to earn money and will therefore demand more safety.
A German study was able to reduce a raw gender wage gap of 20% to 1% after accounting for differences between gender in the risk of injury and death in addition to the usual factors. This 2007 study found that they were the 2nd study ever to make this adjustment.
18 Apr 2017
by Jim Rose
in applied price theory, applied welfare economics, economic history, industrial organisation, international economics, politics - New Zealand, Public Choice, rentseeking, survivor principle
Tags: Dutch disease, export subsidies, picking winners
I am putting in a Official Information Act request to see if anyone advise ministers that a export promotion target results in a matching increase in imports along with a large appreciation in the New Zealand dollar. Did New Zealand dodge the Dutch disease from this foolhardy export promotion policy? The Dutch Disease story is one of sectoral shifts.

In the 1960s, with fixed exchange rates under the Bretton Woods system, the Netherlands discovered off-shore natural gas. As natural gas was extracted, it increased domestic income and spending. Investment was redirected toward the natural gas sector. Dutch wages and prices began to rise gradually. The Dutch guilder became overvalued in real terms, their industrial products became uncompetitive, and the manufacturing sector shrunk. This phenomenon of de-industrialization in the presence of rich natural resources was called the Dutch disease. They got natural gas but lost manufacturing.
In the late 1970s and early 80s, the UK experienced similar de-industrialization under a floating exchange rate regime. They discovered and exploited the North Sea oil fields. Since the global oil price was rising, the UK was expected to earn a great amount of foreign exchange in the future. But even before these earnings were realized, the British pound appreciated suddenly in both nominal and real terms. This damaged the British manufacturing sector.
Source: MF model – float
If there is an increasing demand for New Zealand exports if the Business Growth Agenda target of increasing New Zealand exports was successful, there is an increase in demand for New Zealand dollars to pay for these exports. This will result in an appreciation of the New Zealand dollar making imports cheaper. This will switch demand for New Zealand competing industries to these imports.
This process of currency appreciation and expenditure switching will continue until export match exports again. There is nothing wrong with an export boom as long as it is based on comparative advantage rather than subsidies.

12 Apr 2017
by Jim Rose
in liberalism, politics - New Zealand, politics - USA
Tags: Censorship, feminism, free speech, New Zealand Greens, political correctness, pornography, puritanism
Indianapolis justifies the ordinance on the ground that pornography affects thoughts. Men who see women depicted as subordinate are more likely to treat them so. Pornography is an aspect of dominance. [note 1] It does not persuade people so much as change them. It works by socializing, by establishing the expected and the permissible. In this view pornography is not an idea; pornography is the injury. There is much to this perspective. Beliefs are also facts. People often act in [329] accordance with the images and patterns they find around them. People raised in a religion tend to accept the tenets of that religion, often without independent examination. People taught from birth that black people are fit only for slavery rarely rebelled against that creed; beliefs coupled with the self-interest of the masters established a social structure that inflicted great harm while enduring for centuries. Words and images act at the level of the subconscious before they persuade at the level of the conscious. Even the truth has little chance unless a statement fits within the framework of beliefs that may never have been subjected to rational study.
Therefore we accept the premises of this legislation. Depictions of subordination tend to perpetuate subordination. The subordinate status of women in turn leads to affront and lower pay at work, insult and injury at home, battery and rape on the streets. [note 2] In the language of the legislature, “pornography is central in creating and maintaining sex as a basis of discrimination. Pornography is a systematic practice of exploitation and subordination based on sex which differentially harms women. The bigotry and contempt it produces, with the acts of aggression it fosters, harm women’s opportunities for equality and rights [of all kinds].” Indianapolis Code § 16-1(a)(2).
Yet this simply demonstrates the power of pornography as speech. All of these unhappy effects depend on mental intermediation. Pornography affects how people see the world, their fellows, and social relations. If pornography is what pornography does, so is other speech. Hitler’s orations affected how some Germans saw Jews. Communism is a world view, not simply a Manifesto by Marx and Engels or a set of speeches. Efforts to suppress communist speech in the United States were based on the belief that the public acceptability of such ideas would increase the likelihood of totalitarian government. Religions affect socialization in the most pervasive way. The opinion in Wisconsin v. Yoder, 406 U.S. 205, 32 L. Ed. 2d 15, 92 S. Ct. 1526 (1972), shows how a religion can dominate an entire approach to life, governing much more than the relation between the sexes. Many people believe that the existence of television, apart from the content of specific programs, leads to intellectual laziness, to a penchant for violence, to many other ills. The Alien and Sedition Acts passed during the administration of John Adams rested on a sincerely held belief that disrespect for the government leads to social collapse and revolution–a belief with support in the history of many nations. Most governments of the world act on this empirical regularity, suppressing critical speech. In the United States, however, the strength of the support for this belief is irrelevant. Seditious libel is protected speech unless the danger is not only grave but also imminent. See New York Times Co. v. Sullivan, 376 U.S. 254, 11 L. Ed. 2d 686, 84 S. Ct. 710 (1964); cf. Brandenburg v. Ohio, supra; New York [330] Times Co. v. United States, 403 U.S. 713, 29 L. Ed. 2d 822, 91 S. Ct. 2140 (1971).
Racial bigotry, anti-semitism, violence on television, reporters’ biases–these and many more influence the culture and shape our socialization. None is directly answerable by more speech, unless that speech too finds its place in the popular culture. Yet all is protected as speech, however insidious. Any other answer leaves the government in control of all of the institutions of culture, the great censor and director of which thoughts are good for us.
Source: American Booksellers Association v. Hudnut (7th Cir. 1985)


08 Apr 2017
by Jim Rose
in defence economics, International law, politics - USA
Tags: Afghanistan, Gulf war, New Zealand Greens, Syria civil war, war against terror

The first Gulf War had UN security council approval. The 2nd Gulf War was approved in a way that provided employment to legal pedants and more importantly, just enough political cover for the Chinese and Russians back home and with their low-rent allies to avoid their veto.
The New Zealand Greens cannot go on about multinational responses than oppose wars with UN security council approval.
Naturally, the Greens opposed NZ participation in the Afghanistan war despite its clear-cut UN authorisation. NATO and other mutual defence treaties were specifically triggered after 9/11.
The USA and others were and still are at war with Al-Qaeda; they can use force against that enemy and those who harbour them. The Taliban was warned. A Wiki has this nice quote by Stone (1921):
When the territorial sovereign is too weak or is unwilling to enforce respect for international law, a state which is wronged may find it necessary to invade the territory and to chastise the individuals who violate its rights and threaten its security.
The 9/11 terrorists were air pirates. NATO and allied military entered Afghanistan to subdue the home base of these brigands and those that harboured them:
- Naval and military deployments against pirate’s lairs date back thousands of years.
- The first war of the USA was with the Barbary Pirates in 1801 to 1805, with another war in 1815. These pirates waged war against the shipping of other nations, seized cargoes and ships, and sold captives into slavery.
- Punitive expeditions against bandits were commonplace too, such as chasing Pancho Villa and his gang of bandits back into Mexico in 1916.
- The U.S. military recently attacked a Somalian maritime pirate camp to rescue hostages. EU naval forces have also attacked these pirate lairs to destroy boats and supplies.
07 Apr 2017
by Jim Rose
in defence economics, politics - New Zealand, politics - USA, war and peace
Tags: anti-war movement, British politics, foreign policy, Leftover Left, Middle-East politics, New Zealand Greens, pacifism, serious civil war, Twitter left
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