Wintery Knight

…integrating Christian faith and knowledge in the public square

Jay Richards: why should Christians learn about economics?

Here’s a good basic introduction to the free enterprise system by Dr. Jay Richards:

In this lecture, Dr. Richards covers the following topics:

  • the piety myth – thinking that good intentions matter more than good results
  • the greed myth – thinking that capitalism is about greed instead of about innovation and serving others
  • the zero sum game myth – thinking that voluntary exchanges between buyers and sellers result in win-lose outcomes
  • the materialist myth – thinking that there is only a set amount of wealth to be divided by competition

It turns out that the best system for lifting the poor out of poverty – by work or charity – is the economic system that creates wealth through human ingenuity and hard work. That system is the free enterprise system.

Something to read?

If you can’t listen to the lecture and don’t want to buy the whole book “Money, Greed and God?” Then I have a series of posts on each chapter for you.

The index post is here.

Here are the posts in the series:

  • Part 1: The Eight Most Common Myths about Wealth, Poverty, and Free Enterprise
  • Part 2: Can’t We Build A Just Society?
  • Part 3: The Piety Myth
  • Part 4: The Myth of the Zero Sum Game
  • Part 5: Is Wealth Created or Transferred?
  • Part 6: Is Free Enterprise Based on Greed?
  • Part 7: Hasn’t Christianity Always Opposed Free Enterprise?
  • Part 8: Does Free Enterprise Lead to An Ugly Consumerist Culture?
  • Part 9: Will We Use Up All Our Resources?
  • Part 10: Are Markets An Example of Providence?

Parts 4 and 5 are my favorites. It’s so hard to choose one to excerpt, but I must. I will choose… Part 4.

Here’s the problem:

Myth #3: The Zero Sum Game Myth – believing that trade requires a winner and a loser. 

One reason people believe this myth is because they misunderstand how economic value is determined. Economic thinkers with views as diverse as Adam Smith and Karl Marx believed economic value was determined by the labor theory of value. This theory stipulates that the cost to produce an object determines its economic value.

According to this theory, if you build a house that costs you $500,000 to build, that house is worth $500,000. But what if no one can or wants to buy the house? Then what is it worth?

Medieval church scholars put forth a very different theory, one derived from human nature: economic value is in the eye of the beholder. The economic value of an object is determined by how much someone is willing to give up to get that object. This is the subjective theory of value.

And here’s an example of how to avoid the problem:

How you determine economic value affects whether you view free enterprise as a zero-sum game, or a win-win game in which both participants benefit.

Let’s return to the example of the $500,000 house. As the developer of the house, you hire workers to build the house. You then sell it for more than $500,000. According to the labor theory of value, you have taken more than the good is actually worth. You’ve exploited the buyer and your workers by taking this surplus value. You win, they lose.

Yet this situation looks different according to the subjective theory of value. Here, everybody wins. You market and sell the house for more than it cost to produce, but not more than customers will freely pay. The buyer is not forced to pay a cost he doesn’t agree to. You are rewarded for your entrepreneurial effort. Your workers benefit, because you paid them the wages they agreed to when you hired them.

This illustration brings up a couple important points about free enterprise that are often overlooked:

1. Free exchange is a win-win game.

In win-win games, some players may end up better off than others, but everyone ends up better off than they were at the beginning. As the developer, you might make more than your workers. Yet the workers determined they would be better off by freely exchanging their labor for wages, than if they didn’t have the job at all.

A free market doesn’t guarantee that everyone wins in every competition. Rather, it allows many more win-win encounters than any other alternative.

2. The game is win-win because of rules set-up beforehand. 

A free market is not a free-for-all in which everybody can do what they want. Any exchange must be free on both sides. Rule of law, contracts, and property rights are needed to ensure exchanges are conducted rightly. As the developer of the house, you’d be held accountable if you broke your contract and failed to pay workers what you promised.

An exchange that is free on both sides, in which no one is forced or tricked into participating, is a win-win game.

If you do get the book, be sure and skip the chapter on usury. It’s just not as engaging as the others, in my opinion.

Filed under: Videos, , , , , , ,

What makes a planet suitable for supporting complex life?

The Circumstellar Habitable Zone (CHZ)

What do you need in order to have a planet that supports complex life? First, you need liquid water at the surface of the planet. But there is only a narrow range of temperatures that can support liquid water. It turns out that the size of the star that your planet orbits around has a lot to do with whether you get liquid water or not. A heavy, metal-rich star allows you to have a habitable planet far enough from the star so  the planet can support liquid water on the planet’s surface while still being able to spin on its axis. The zone where a planet can have liquid water at the surface is called the circumstellar habitable zone (CHZ). A metal-rich star like our Sun is very massive, which moves the habitable zone out further away from the star. If our star were smaller, we would have to orbit much closer to the star in order to have liquid water at the surface. Unfortunately, if you go too close to the star, then your planet becomes tidally locked, like the moon is tidally locked to Earth. Tidally locked planets are inhospitable to life.

Circumstellar Habitable Zone

Circumstellar Habitable Zone

Here, watch a clip from The Privileged Planet: (Clip 4 of 12, full playlist here)

But there’s more.

The Galactic Habitable Zone (GHZ)

So, where do you get the heavy elements you need for your heavy metal-rich star?

You have to get the heavy elements for your star from supernova explosions – explosions that occur when certain types of stars die. That’s where heavy elements come from. But you can’t be TOO CLOSE to the dying stars, because you will get hit by nasty radiation and explosions. So to get the heavy elements from the dying stars, your solar system needs to be in the galactic habitable zone (GHZ) – the zone where you can pickup the heavy elements you need but not get hit by radiation and explosions. The GHZ lies between the spiral arms of a spiral galaxy. Not only do you have to be in between the arms of the spiral galaxy, but you also cannot be too close to the center of the galaxy. The center of the galaxy is too dense and you will get hit with massive radiation that will break down your life chemistry. But you also can’t be too far from the center, because you won’t get enough heavy elements because there are fewer dying stars the further out you go. You need to be in between the spiral arms, a medium distance from the center of the galaxy.

Like this:

Galactic Habitable Zone

Galactic Habitable Zone and Solar Habitable Zone

Here, watch a clip from The Privileged Planet: (Clip 10 of 12, full playlist here)

The GHZ is based on a discovery made by astronomer Guillermo Gonzalez, which made the front cover of Scientific American in 2001. That’s right, the cover of Scientific American. I actually stole the image above of the GHZ and CHZ (aka solar habitable zone) from his Scientific American article (linked above).

These are just a few of the things you need in order to get a planet that supports life.

Here are a few of the more well-known ones:

  • a solar system with a single massive Sun than can serve as a long-lived, stable source of energy
  • a terrestrial planet (non-gaseous)
  • the planet must be the right distance from the sun in order to preserve liquid water at the surface – if it’s too close, the water is burnt off in a runaway greenhouse effect, if it’s too far, the water is permanently frozen in a runaway glaciation
  • the solar system must be placed at the right place in the galaxy – not too near dangerous radiation, but close enough to other stars to be able to absorb heavy elements after neighboring stars die
  • a moon of sufficient mass to stabilize the tilt of the planet’s rotation
  • plate tectonics
  • an oxygen-rich atmosphere
  • a sweeper planet to deflect comets, etc.
  • planetary neighbors must have non-eccentric orbits

By the way, you can watch a lecture with Guillermo Gonzalez explaining his ideas further. This lecture was delivered at UC Davis in 2007. That link has a link to the playlist of the lecture, a bio of the speaker, and a summary of all the topics he discussed in the lecture. An excellent place to learn the requirements for a suitable habitat for life.

Filed under: Polemics, , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Jay Richards: How to end poverty in 10 tough steps

I saw that Stand to Reason’s Amy Hall blogged about a new lecture by Jay Richards, a Christian expert in economics. Amy linked to this post by Justin Taylor which summarizes the talk (above).

Summary:

  1. Establish and maintain the rule of law.
  2. Focus the jurisdiction of government on maintaining the rule of law, and limit its jurisdiction over the economy and the institutions of civil society.
  3. Implement a formal property system with consistent and accessible means for securing a clear title to property one owns.
  4. Encourage economic freedom: Allow people to trade goods and services unencumbered by tariffs, subsidies, price controls, undue regulation, and restrictive immigration policies.
  5. Encourage stable families and other important private institutions that mediate between the individual and the state.
  6. Encourage belief in the truth that the universe is purposeful and makes sense.
  7. Encourage the right cultural mores—orientation to the future and the belief that progress but not utopia is possible in this life; willingness to save and delay gratification; willingness to risk, to respect the rights and property of others, to be diligent, to be thrifty.
  8. Instill a proper understanding of the nature of wealth and poverty—that wealth is created, that free trade is win-win, that risk is essential to enterprise, that trade-offs are unavoidable, that the success of others need not come at your expense, and that you can pursue legitimate self-interest and the common good at the same time.
  9. Focus on your comparative advantage rather than protecting what used to be your competitive advantage.
  10. Work hard.

I’m currently working my way through Money, Greed and God with a friend, and we are going through it chapter by chapter. If you don’t have the book, it’s a perfect introduction to economics and how it relates to the Christian worldview. I always encourage Christians to move beyond good intentions to good results by studying economics. We are supposed to be helping the poor, but how should we do it? Economics is the science that allows us to understand which policies we should support to do that.

Filed under: Videos, , , , ,

How Earth-like are the 8.8 billion Earth-like planets from a recent estimate?

Previously, I blogged about a few of the minimum requirements that a planet must satisfy in order to support complex life.

Here they are:

  • a solar system with a single massive Sun than can serve as a long-lived, stable source of energy
  • a terrestrial planet (non-gaseous)
  • the planet must be the right distance from the sun in order to preserve liquid water at the surface – if it’s too close, the water is burnt off in a runaway greenhouse effect, if it’s too far, the water is permanently frozen in a runaway glaciation
  • the solar system must be placed at the right place in the galaxy – not too near dangerous radiation, but close enough to other stars to be able to absorb heavy elements after neighboring stars die
  • a moon of sufficient mass to stabilize the tilt of the planet’s rotation
  • plate tectonics
  • an oxygen-rich atmosphere
  • a sweeper planet to deflect comets, etc.
  • planetary neighbors must have non-eccentric orbits

Now what happens if we disregard all of that, and just classify an Earth-like planet as one which only has to potentially support liquid water at the surface? Well, you get a very high estimate of Earth-like planets.

Science journalist Denyse O’Leary responds to a recent estimate based on this questionable criterion, which placed the number of Earth-like planets at 8.8 billion.

Excerpt: (links removed)

A current official definition of habitable planets is “in the zone around the star where liquid water could exist,” but the ones discovered so far are unsuitable in many other ways.

Then a new cosmology term hit the media, “super-Earths.” It means “bigger than Earth,” but smaller than gas giant Neptune. Super-Earths could be the most numerous type of planet, in tight orbits around their star — which is actually bad news for life.Nonetheless, some insist, they may be more attractive to life than Earth is. Indeed, the Copernican Principle allows us to assume that some are inhabited already.

In reality, even the rocky exoplanets (known as of early 2013) that are Earth-sized are not Earth-like. For example, the Kepler mission’s first rocky planet find is described as follows: “Although similar in size to Earth, its orbit lasts just 0.84 days, making it likely that the planet is a scorched, waterless world with a sea of lava on its starlit side.” As space program physicist Rob Sheldon puts it, Earth is a rocky planet but so is a solid chunk of iron at 1300 degrees orbiting a few solar radii above the star. In any event, a planet may look Earth-like but have a very different internal structure and atmosphere.”

David Klinghoffer notes that the study is estimating that 8.8 billion number, but the actual number of Earth-like planets we can see is much lower.

He writes:

The study is supposed to be a major step forward because of its unprecedented accuracy:

For the first time, scientists calculated — not estimated — what percent of stars that are just like our sun have planets similar to Earth: 22 percent, with a margin of error of plus or minus 8 percentage points.

Oh! You see, they calculated. They didn’t just estimate.

Because there are probably hundreds of planets missed for every one found, the study did intricate extrapolations to come up with the 22 percent figure — a calculation that outside scientists say is fair.

Oh. They calculated in the sense of “extrapolating” to “come up” with a figure. In other words, they estimated. The figure of “8.8 billion stars with Earth-size planets in the habitable temperature zone” comes down a bit too when you talk about actual planets that have been observed instead of being merely conjectured and “calculated.”

Scientists at a Kepler science conference Monday said they have found 833 new candidate planets with the space telescope, bringing the total of planets they’ve spotted to 3,538, but most aren’t candidates for life.

Kepler has identified only 10 planets that are about Earth’s size circling sun-like stars and are in the habitable zone, including one called Kepler 69-c.

Ah hah. So from the initial, trumpets-blaring figure of 8.8 billion we’re down more realistically to 10. Not 10 billion, just 10. Meanwhile the silence from space continues absolutely unabated.

That’s the way it tends to go with stories like this, the blaring headline and the inevitable letdown.

One part of the AP press release makes the point that the estimate does not include all the minimum requirements for life. For example, you need an atmosphere, as I stated above. Do the estimated 8.8 billion Earth-like planets have an Earth-like atmosphere? How about an oxygen-rich atmosphere, do the 8.8 billion Earth-like planets have that?

NO:

The next step, scientists say, is to look for atmospheres on these planets with powerful space telescopes that have yet to be launched. That would yield further clues to whether any of these planets do, in fact, harbor life.

You know, after the whole global warming hoax, you would think that these headline writers would have learned their lesson about sensationalizing wild-assed guesses in order to scare up more research money. But a lot of true-believing naturalists are just going to read the headline and not the rest of the article, and they will never know that they’ve been had. Again. I love experimental science, but I don’t love the politicization of science. 

Filed under: Polemics, , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

What makes a planet suitable for supporting complex life?

The Circumstellar Habitable Zone (CHZ)

What do you need in order to have a planet that supports complex life? First, you need liquid water at the surface of the planet. But there is only a narrow range of temperatures that can support liquid water. It turns out that the size of the star that your planet orbits around has a lot to do with whether you get liquid water or not. A heavy, metal-rich star allows you to have a habitable planet far enough from the star so  the planet can support liquid water on the planet’s surface while still being able to spin on its axis. The zone where a planet can have liquid water at the surface is called the circumstellar habitable zone (CHZ). A metal-rich star like our Sun is very massive, which moves the habitable zone out further away from the star. If our star were smaller, we would have to orbit much closer to the star in order to have liquid water at the surface. Unfortunately, if you go too close to the star, then your planet becomes tidally locked, like the moon is tidally locked to Earth. Tidally locked planets are inhospitable to life.

Circumstellar Habitable Zone

Circumstellar Habitable Zone

Here, watch a clip from The Privileged Planet: (Clip 4 of 12, full playlist here)

But there’s more.

The Galactic Habitable Zone (GHZ)

So, where do you get the heavy elements you need for your heavy metal-rich star?

You have to get the heavy elements for your star from supernova explosions – explosions that occur when certain types of stars die. That’s where heavy elements come from. But you can’t be TOO CLOSE to the dying stars, because you will get hit by nasty radiation and explosions. So to get the heavy elements from the dying stars, your solar system needs to be in the galactic habitable zone (GHZ) – the zone where you can pickup the heavy elements you need but not get hit by radiation and explosions. The GHZ lies between the spiral arms of a spiral galaxy. Not only do you have to be in between the arms of the spiral galaxy, but you also cannot be too close to the center of the galaxy. The center of the galaxy is too dense and you will get hit with massive radiation that will break down your life chemistry. But you also can’t be too far from the center, because you won’t get enough heavy elements because there are fewer dying stars the further out you go. You need to be in between the spiral arms, a medium distance from the center of the galaxy.

Like this:

Galactic Habitable Zone

Galactic Habitable Zone and Solar Habitable Zone

Here, watch a clip from The Privileged Planet: (Clip 10 of 12, full playlist here)

The GHZ is based on a discovery made by astronomer Guillermo Gonzalez, which made the front cover of Scientific American in 2001. That’s right, the cover of Scientific American. I actually stole the image above of the GHZ and CHZ (aka solar habitable zone) from his Scientific American article (linked above).

These are just a few of the things you need in order to get a planet that supports life.

Here are a few of the more well-known ones:

  • a solar system with a single massive Sun than can serve as a long-lived, stable source of energy
  • a terrestrial planet (non-gaseous)
  • the planet must be the right distance from the sun in order to preserve liquid water at the surface – if it’s too close, the water is burnt off in a runaway greenhouse effect, if it’s too far, the water is permanently frozen in a runaway glaciation
  • the solar system must be placed at the right place in the galaxy – not too near dangerous radiation, but close enough to other stars to be able to absorb heavy elements after neighboring stars die
  • a moon of sufficient mass to stabilize the tilt of the planet’s rotation
  • plate tectonics
  • an oxygen-rich atmosphere
  • a sweeper planet to deflect comets, etc.
  • planetary neighbors must have non-eccentric orbits

By the way, you can watch a lecture with Guillermo Gonzalez explaining his ideas further. This lecture was delivered at UC Davis in 2007. That link has a link to the playlist of the lecture, a bio of the speaker, and a summary of all the topics he discussed in the lecture. An excellent place to learn the requirements for a suitable habitat for life.

Filed under: Polemics, , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

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