#budgetbucketlist Competition

Moneysupermarket.com are currently running a competition where bloggers can create a Budget Bucket List, containing one budget/low cost bucketlist item and one extravagent bucketlist item. You must also describe what is preventing you from doing them and what it would mean to complete them.
The winner will receive £1000 and 4 runner ups will win £50 each, a perfect start to anyone's bucketlist items!
Full details on this simple yet brilliant competition can be found here. Full terms and conditions can be found here.

I have a very long bucketlist but my decision on my budget choice is very simple.
I want to learn how to swim!


It sounds kind of sad but I've pretty much been petrified of pools and open water all my life, crazy considering I lived by the sea pretty much all my life. The thought of being in the ocean or a deep pool would be make feel physically sick. I slowly overcame the obstacle of the sea by simply walking beside it along the beach and harbour but I never managed to learn to swim despite having lessons during Primary School, I was literally the only one left in the kids pool by the end of term.
Swimming opens up so many opportunities both at home and abroad/on holidays. Swimming for exercise, scuba diving or cage diving, even simple things like swimming in the sea! I feel I have missed out on a lot throughout my childhood and teenage years due to being unable to swim and I'd love to just dive in and get over this sad experience!

My extravagent choice is a big deal for me.
I would love to travel across Australia!
This is something I have wanted to do since I was a child. My next door neighbour and best friend during my early childhood moved to Australia in 1996 with his family and since then I have wanted to go to Australia to catch up with him and see the beautiful sights of the country.
I have researched it many times over the past few years, deciding which places I would like to go to and there are so many, where do I even begin?

Map of some of the places I want to visit in Australia
A) Ningaloo, Ningaloo Reef, Western Australia - One of the largest fringing reefs stretching for 260km off coast. Home to 200 species of hard coral, 50 soft coral and 500 species of fish. Perfect for kayaking, snorkelling, whale watching, camping at Cape Range National Park.
Ningaloo Reef
Whale Shark in Ningaloo
B) Perth, Western Australia - The fourth largest city in Australia, with hundreds of shops and al fresco dining specialising in local and fresh seafood. Home to Perth Zoo, Fremantle Prison, Shoalwater Islands Marine Park, Beelu National Park for walks and cycling to name but a few.
Cottesloe Beach, Perth
C) Kangaroo Island, South Australia - Offers protection to substantial populations of native Australian animals with soaring cliffs, dense bushland, sand dunes, wetlands and white beaches. Perfect for walks, treks, horse riding, tours, Parndana Wildlife Park.
Kangaroo Island
D) Melbourne, Victoria Australia - Full of culture, street culture and architecture. Perfect for shopping, theatre, dining,  Melbourne Aquarium.
Melbourne
E) Tasmania - The Island Of Inspiration with over 45% of the island in reserves, national parks and world heritage sites this is the perfect place for any outdoorsy adventurer like myself! There's also plenty of adventure activities including caving, abseiling, white-water rafting and rock climbing to name but a few.
Wineglass Bay, Freycinet National Park, Tasmania
F) Canberra, Australia Capital Territory - The Capital of Australia. Discover the essence of Australia's culture and history within the many museums, galleries and historic towns. Explore life in the great outdoors on cycle paths, mountain biking and city walking trails.
Canberra
G) Sydney, New South Wales Australia - The most popular city in Australia. Full of internationally known museums, art spaces and galleries. Plenty of greenery and national parks surround Sydney, perfect for walks and enjoying the great outdoors.
Sydney Harbour
H) Blue Mountains, New South Wales Australia - Perfect for rock climbers, mountain bikers and hikers. Wolgan Valley is a 4000 acre nature reserve and one of the most popular natural landscapes in Australia. If money was no object I would have to stay at Wolgan Valley Emirates Resort & Spa.
Walgon Valley Nature Reserve
Giant Stairway, Blue Mountains - over 800 steps and runways providing entry to Jamison Valley, descending approx 1000ft.
I) Byron Bay, New South Wales Australia - A beachside town, with several beaches popular for surfing, snorkelling and scuba diving. Also great for sky diving and hot air ballooning. Perfect for back-packers and adventurers!
Byron Bay Lighthouse
J) Brisbane, Queensland - Home of Australia Zoo, Lone Pine Koala Sanctuary; the first and largest koala sanctuary in the world with over 130 koalas as well as plenty of other animals! There are many parks and gardens and national parks surrounding Brisbane, aswell as bike and walk ways.
Gold Coast, Brisbane
K) The Great Barrier Reef - The World's largest coral reef, with over 2,900 individual reefs and over 900 islands stretching for over 1,600 miles! Home to over 1,500 fish species, 30 species of whale and dolphin and 6 species of sea turtles. This is the perfect place for scuba diving, boat tours, kayaking and more!
The Great Barrier Reef from above
Beneath the Great Barrier Reef with turtle swimming
L) Lizard Island, Queensland Australia - Located on The Great Barrier Reef, it is a National Park covering 1,013 hectares with 24 sandy beaches and a lagoon! Perfect for soaking up the sun and enjoying all types of water sports!
Lizard Island National Park
M) Darwin, Northern Territory Australia - Perfect for foodies with plenty of food festivals and markets. It's the hub for aboriginal and contemporary art with many galleries and art spaces.
Darwin
N) Red Centre, Northen Territory - Home to iconic natural wonders such as Kings Canyon and Uluru. Explore the outback by motorcycle, camel or scenic helicopter flight.
The Red Centre
The only thing preventing me from going is the travel cost, flight tickes are just so expensive! However to eventually have the money to do it would mean so much. I am a naturally outdoorsy person, having grown up within the countryside and next to the sea. I love adventure and what better place to find adventure than in sunny Australia!

I'm tagging three people to share their bucketlists on their blog!
Kirsty at Rose & Arrow, Emma at The Brunette Beauty Blogger and Hannah at Baileycakes Blog.
Go for it ladies and good luck!



Adam Smith on the Economics of U.S. Independence

For economists around the world, 1776 means the publication date of Adam Smith's classic The Wealth of Nations.  Book IV, Chapter 7, is entitled "Of Colonies." Smith expresses the view that Europe contributed very little to the economic success of its American colonies--except for some talented people. He also believed that the while England benefited from trade with its colonies, England also had to bear the costs of defense and of the monopolies on trade that it created. He painted a picture of how the American colonies might be allowed democratic representation, but viewed it as a politically unlikely outcome. He also predicted that even when a nation didn't benefit from having colonies, it was still reluctant to let the colonies go peacefully. The quotations here are from the ever-useful "Library of Economics and Liberty," which has number of classic works  of economics freely available in searchable form on-line.

Here's Smith on the topic of what Europe contributed to its American colonies (with footnotes  omitted for readability): 

"The policy of Europe, therefore, has very little to boast of, either in the original establishment or, so far as concerns their internal government, in the subsequent prosperity of the colonies of America. Folly and injustice seem to have been the principles which presided over and directed the first project of establishing those colonies; the folly of hunting after gold and silver mines, and the injustice of coveting the possession of a country whose harmless natives, far from having ever injured the people of Europe, had received the first adventurers with every mark of kindness and hospitality.... 

"The English Puritans, restrained at home, fled for freedom to America, and established there the four governments of New England. The English Catholics, treated with much greater injustice, established that of Maryland; the Quakers, that of Pennsylvania. The Portugueze Jews, persecuted by the Inquisition, stripped of their fortunes, and banished to Brazil, introduced by their example some sort of order and industry among the transported felons and strumpets by whom that colony was originally peopled, and taught them the culture of the sugar-cane. Upon all these different occasions it was not the wisdom and policy, but the disorder and injustice of the European governments which peopled and cultivated America. ..."

"When those establishments were effectuated, and had become so considerable as to attract the attention of the mother country, the first regulations which she made with regard to them had always in view to secure to herself the monopoly of their commerce; to confine their market, and to enlarge her own at their expence, and, consequently, rather to damp and discourage than to quicken and forward the course of their prosperity. In the different ways in which this monopoly has been exercised consists one of the most essential differences in the policy of the different European nations with regard to their colonies. The best of them all, that of England, is only somewhat less illiberal and oppressive than that of any of the rest."

"In what way, therefore, has the policy of Europe contributed either to the first establishment, or to the present grandeur of the colonies of America? In one way, and in one way only, it has contributed a good deal. ... It bred and formed the men who were capable of achieving such great actions, and of laying the foundation of so great an empire; and there is no other quarter of the world of which the policy is capable of forming, or has ever actually and in fact formed such men. The colonies owe to the policy of Europe the education and great views of their active and enterprising founders; and some of the greatest and most important of them, so far as concerns their internal government, owe to it scarce anything else."

Smith's discussion of how Europe has benefited from its American  colonies turns on three main themes. First, he emphasizes (as one might expect) how Europe can benefit both as a consumer of imported goods from the colonies and a producer of exported goods to its colonies. Second, he points out that the colonies do not pay for their own defense, let alone add to the strength of their European colonizers, and so the cost to the European nation of maintaining order in peacetime and then fighting the wars of the colonies must be taken into account. Third, he emphasizes that colonizing countries each sought to monopolize commerce with their colonies. A a result, those who hold the monopoly over transporting such goods profit, but the overall economic gains from trade are reduced, and a number of other dislocations and inefficiencies arise. In effect, the country of England pays the costs of the colonies in order to benefit the merchants who hold the monopoly on trade, even as the flow of resources to that monopoly weakens other aspects of England's economy. In Smiths phrase, the purpose of the empire became "raising up a people of customers" for  certain favored English "shopkeepers." Smith wrote:


"To found a great empire for the sole purpose of raising up a people of customers may at first sight appear a project fit only for a nation of shopkeepers. It is, however, a project altogether unfit for a nation of shopkeepers; but extremely fit for a nation whose government is influenced by shopkeepers. Such statesmen, and such statesmen only, are capable of fancying that they will find some advantage in employing the blood and treasure of their fellow-citizens to found and maintain such an empire. Say to a shopkeeper, Buy me a good estate, and I shall always buy my clothes at your shop, even though I should pay somewhat dearer than what I can have them for at other shops; and you will not find him very forward to embrace your proposal. But should any other person buy you such an estate, the shopkeeper would be much obliged to your benefactor if he would enjoin you to buy all your clothes at his shop. England purchased for some of her subjects, who found themselves uneasy at home, a great estate in a distant country. The price, indeed, was very small, and instead of thirty years purchase, the ordinary price of land in the present times, it amounted to little more than the expence of the different equipments which made the first discovery, reconnoitred the coast, and took a fictitious possession of the country. The land was good and of great extent, and the cultivators having plenty of good ground to work upon, and being for some time at liberty to sell their produce where they pleased, became in the course of little more than thirty or forty years (between 1620 and 1660) so numerous and thriving a people that the shopkeepers and other traders of England wished to secure to themselves the monopoly of their custom. Without pretending, therefore, that they had paid any part, either of the original purchase-money, or of the subsequent expence of improvement, they petitioned the parliament that the cultivators of America might for the future be confined to their shop; first, for buying all the goods which they wanted from Europe; and, secondly, for selling all such parts of their own produce as those traders might find it convenient to buy. ... A clause in the famous act of navigation established this truly shopkeeper proposal into a law."

"In order, however, to obtain this relative advantage in the colony trade, in order to execute the invidious and malignant project of excluding as much as possible other nations from any share in it, England, there are very probable reasons for believing, has not only sacrificed a part of the absolute advantage which she, as well as every other nation, might have derived from that trade, but has subjected herself both to an absolute and to a relative disadvantage in almost every other branch of trade. ... "

Smith discussed various possibilities for how Great Britain might deal with its colonies. One proposal was that Great Britain should just "voluntarily give up all authority over her colonies," which would then allow Britain and America, in friendship to benefit from free trade between them. But he despaired of this possibility. 

"To propose that Great Britain should voluntarily give up all authority over her colonies, and leave them to elect their own magistrates, to enact their own laws, and to make peace and war as they might think proper, would be to propose such a measure as never was, and never will be adopted, by any nation in the world. No nation ever voluntarily gave up the dominion of any province, how troublesome soever it might be to govern it, and how small soever the revenue which it afforded might be in proportion to the expence which it occasioned. Such sacrifices, though they might frequently be agreeable to the interest, are always mortifying to the pride of every nation, and what is perhaps of still greater consequence, they are always contrary to the private interest of the governing part of it, who would thereby be deprived of the disposal of many places of trust and profit, of many opportunities of acquiring wealth and distinction, which the possession of the most turbulent, and, to the great body of the people, the most unprofitable province seldom fails to afford. The most visionary enthusiast would scarce be capable of proposing such a measure with any serious hopes at least of its ever being adopted. If it was adopted, however, Great Britain would not only be immediately freed from the whole annual expence of the peace establishment of the colonies, but might settle with them such a treaty of commerce as would effectually secure to her a free trade, more advantageous to the great body of the people, though less so to the merchants, than the monopoly which she at present enjoys. By thus parting good friends, the natural affection of the colonies to the mother country which, perhaps, our late dissensions have well nigh extinguished, would quickly revive. It might dispose them not only to respect, for whole centuries together, that treaty of commerce which they had concluded with us at parting, but to favour us in war as well as in trade, and, instead of turbulent and factious subjects, to become our most faithful, affectionate, and generous allies ..."

As an alternative, Smith suggested that there could be taxation with representation: that is, Americans could be given representation in the British parliament. He argues that if Americans were offered such a possibility, many of their leaders would be delighted with the chance to rise in British politics. But denied such a possibility, the American leaders feel a

"The parliament of Great Britain insists upon taxing the colonies; and they refuse to be taxed by a Parliament in which they are not represented. If to each colony, which should detach itself from the general confederacy, Great Britain should allow such a number of representatives as suited the proportion of what is contributed to the public revenue of the empire, in consequence of its being subjected to the same taxes, and in compensation admitted to the same freedom of trade with its fellow-subjects at home; the number of its representatives to be augmented as the proportion of its contribution might afterwards augment; a new method of acquiring importance, a new and more dazzling object of ambition would be presented to the leading men of each colony. Instead of piddling for the little prizes which are to be found in what may be called the paltry raffle of colony faction; they might then hope, from the presumption which men naturally have in their own ability and good fortune, to draw some of the great prizes which sometimes come from the wheel of the great state lottery of British polities.

"Unless this or some other method is fallen upon, and there seems to be none more obvious than this, of preserving the importance and of gratifying the ambition of the leading men of America, it is not very probable that they will ever voluntarily submit to us; and we ought to consider that the blood which must be shed in forcing them to do so is, every drop of it, blood either of those who are, or of those whom we wish to have for our fellow-citizens. They are very weak who flatter themselves that, in the state to which things have come, our colonies will be easily conquered by force alone. The persons who now govern the resolutions of what they call their continental congress, feel in themselves at this moment a degree of importance which, perhaps, the greatest subjects in Europe scarce feel. From shopkeepers, tradesmen, and attornies, they are become statesmen and legislators, and are employed in contriving a new form of government for an extensive empire, which, they flatter themselves, will become, and which, indeed, seems very likely to become, one of the greatest and most formidable that ever was in the world. ... Almost every individual of the governing party in America fills, at present in his own fancy, a station superior, not only to what he had ever filled before, but to what he had ever expected to fill; and unless some new object of ambition is presented either to him or to his leaders, if he has the ordinary spirit of a man, he will die in defence of that station." 
And of course, Smith's prediction, published in 1776 but largely written several years earlier, came true. To repeat, on this Fourth of July: "From shopkeepers, tradesmen, and attornies, they are become statesmen and legislators, and are employed in contriving a new form of government for an extensive empire, which, they flatter themselves, will become, and which, indeed, seems very likely to become, one of the greatest and most formidable that ever was in the world."



Interview with Susan Athey on Big Data and Other Topics

Douglas Clement has a characteristically excellent interview with Susan Athey, appearing in the June 2013 issue of The Region, which is published by the Federal Reserve Bank of Minneapolis. Athey is a professor at Stanford's Business School, winner of the  John Bates Clark medal in 2007, and also has been Chief Economist at Microsoft since 2007. Here are some snippets:

Susan Athey

On whether the arrival of "big data" means that theory is now less important:

"In fact, the need for theory is in some ways magnified by having large amounts of data. When you have a small amount of data, you can just look at the data and build your intuition from it. When you have very large amounts of data, just taking an average can cost thousands of dollars of computer time. So you’d better have an idea of what you’re doing and why before you go out to take those averages. The importance of theory to create conceptual frameworks to know what to look for has never been larger ... I think what is true is that when you have large amounts of data, if you ask it the right questions, you have a greater ability to let the data speak, and so you can be much less reliant on assumptions. But you still need a strong conceptual framework to understand what’s coming out.

"And I would say in the business world, this is where there’s an enormous scarcity of talent. I see that there are a fair number of statisticians out there, not nearly enough, but a fair number of data scientists out there. There’s a huge demand for them still. But among data scientists, the ones who can define a question and introduce a new way of looking at the data—those data scientists are rock stars. They’re pursued by every company and they move up the hierarchy very quickly. They’re giving presentations to top executives and are extraordinarily influential. And there are never enough of them."

Why economics should focus more on issues of big data: 

"I think that the data scientists should take a little more economics. That would help; economics puts a lot of emphasis on the conceptual framework. And I also think that economics should be paying a lot more attention to the statistics of big data.
Right now, economics as a profession has very little market share in the business analysis of this big data. It’s mostly statisticians. We’re just not training our undergraduates to be qualified for these jobs. Even our graduate students, even someone with a Ph.D. from a very good economics department really doesn’t have the right skills to analyze the kinds of data sets that big Internet firms are creating. ... We’re a little bit behind. Econometrics, at the undergraduate level, is not appreciated as much as an expertise that’s extremely important for future employment, and we certainly don’t see a lot of economics majors going on to take extra steps beyond what’s required....I really think we need to make some changes in education. What happens at the top Ph.D. programs isn’t going to really impact the overall workforce. But what we do at the undergraduate level and whether we start offering more advanced or master’s level courses becomes more important—because, really, with just an undergraduate degree it’s hard to be very successful on the technical side at any of these firms."

How big data will generate future productivity gains: 

"Companies in all sorts of different industries are starting to generate large amounts of data. The Internet companies were built from the ground up on that data. Other companies are just starting to think about what they do with the data. If you think about these kind of general purpose innovations like the computer, it took us a while to figure out what to do with the computer. It replaced the secretary and the typewriter, but it took another 15 years before the personal computer really changed the way we do commerce, which you would say really comes with the Internet and businesses being built around it."

"With the big data, of course, the Googles and the Facebooks and so on were born on that. But if you take, say, a car manufacturer that might be getting real-time information from monitoring devices within the cars, there’s a first level of things you can do with that data. Like you can look at aggregate failure rates, or something, for certain types of things. You can identify problems."

"But there’s a whole other level of optimizations that can be done. And I think that idea will apply across many industries. They’ll start with just the basics of, let’s figure out how to prioritize problems. For example, with software you can get telemetry data about, where are the bugs? What’s causing crashes? That’s sort of the first level of what you do with data: You use the data to identify problems and make priorities. The more frequent the crash, the higher you prioritize in fixing that problem. But there’s a next level, which includes real-time machine learning, customization, personalization, optimization, where industry as a whole is just inventing what to do with it. And there could be some really radical breakthroughs in different industries. They’re just very hard to anticipate as they start to use these data."

On the idea that auction design needs to focus not only on getting the highest bid, but also on attracting lots of bidders:

"So if you’re thinking about how to design an auction, or how to design a market more generally, even though it can be tempting to focus on what happens once the people are in the room, it can be more important to start with designing your marketplace to get people to come, to start with. This insight is one that I’ve brought to other settings. I think, for example, it applies in online auctions. When a large company like eBay or an online advertising firm is designing its marketplace, for example, it can be more important to design your marketplace to attract bidders and make sure they’re there to participate than it is to try to extract every last cent out of them once they get there. If potential bidders are not making enough profit to make it worth their time to come, they won’t come. And thin markets can be much more problematic."
On the difference between profit-seeking search engines and competitive search engines: 

"[A] profit-maximizing search engine cares how much surplus the advertisers get versus the search engine. As a result of that, a monopolist search engine will tend to raise reserve prices [meaning the lowest price they’ll accept] too high in order to extract more surplus from the advertisers even if it means eliminating ads that the consumers might have liked to see. In contrast, a competitive search engine—one that’s competing for advertisers and users—will be more likely to choose the welfare-maximizing point.  A more realistic model would also incorporate the other content that gets crowded off the page by the ads; such a model would be more likely to see a monopolist search engine put up too many ads relative to what consumers would like, but again competition would typically push a firm closer to welfare maximization in order to keep both sides of the market participating."






The Nutribox Mini - June Review

So today I'm finally going to share the Nutribox Mini - June box* from thenutribox.com with you. I say finally because I've had it for a couple of weeks and I've finally managed to eat my way through everything!
Nutribox is a monthly subscription box company, from the UK launched in November 2012. It's aim is to make healthy eating enjoyable and easier with these delicious monthly boxes containing gluten-free snacks!


Nutribox currently offer two box sizes, The Nutribox containing 16-20 snacks at £25.00 / month and The Nutribox Mini containing 8-10 snacks at 12.95 / month. You can choose from three plans; monthly, 3 month and 6 month and for a limited time they're even offering 25% off your first box.
The boxes vary each month, containing a mixture of fruit and nut mixes, snack bars, savoury snacks and treats, they are all gluten-free and they even offer the option of a Vegan box!

I received the Nutribox Mini, a letterbox friendly sized box containing 10 snacks!
Here's the first look and what I received:




Pulsin' Energy Bomb: Banana Crisp, 50g - Vegetarian - Gluten free - A dense, crispy natural energy bar made with dried banana, guarana and ginseng. Best eaten 30 minutes before exercise.
Frank: Double Chocolate Snack Bar, 35g - Gluten, But & Dairy free - Made with dairy free chocolate, dried dates and plums, packed with gluten free oats and topped with dairy free chocolate blended with coconut cream.
The Ludlow Nut Co Trail Mix, 40g - A delicious blend of peanuts, brazil nuts, flame raisins, pumpkin seeds, almonds, cashews, chopped apricots, chopped dates and coconut. Perfect as a snack or as a topper on cereal or yoghurt.
Trek: Morning Berry Protein Flapjack, 50g - Wheat, Dairy & Gluten free - Made with gluten free oats, soya protein crunchies and freeze dried raspberries. Perfect as a snack, pre or post exercise.
Clearly Scrumptious: Simply Strawberries, 30g - Whole dried strawberries with natural flavour. Just 96 calories, the perfect mid afternoon snack.
The Ludlow Nut Co: Scarlet Pimpernel, 40g - Sunflower seeds, dried cranberries and macadamia nuts. Another perfect topper for cereal or yoghurt.
Frank: Blueberry Snack Bar, 35g - Gluten, Nut & Dairy free - Made with dried blueberry, dates and plums, packed full of gluten free oats and topped with dairy free chocolate blended with coconut cream.
Nakd: Ginger Bread Bar, 35g - Gluten, Wheat & Dairy free - Raw dates, almonds and pecans with ginger, cloves and cinnamon. A simple yet delicious snack.
Conscious Raw Chocolate: Essential Orange, 50g  - Dairy, Soya & Gluten free - Organic soft raw chocolate with a hint of orange & tangerine essential oils. A real treat for chocolate lovers.
Creative Nature: Super Seeded Bar, 50g - Vegan Friendly - Rich in omega 3 and 6 - Made with cold pressed hemp and sunflower seeds and bursting with dates, peanuts and goji berries.

I am pretty open to trying new things and don't mind gluten/dairy free or vegan products so this was a great treat for me!
My favourites from this box would have to be the Pulsin' Banana Crisp bar, it tasted delicious, soft with a slight crunch from the dried bananas. I felt it kept my energy and concentration levels up during exercise;
Frank Blueberry Bar, I love blueberries and chocolate so this had to be a winner. The texture was soft with a  chocolate topping. I'd definitely have again;
I also loved the Ludlow Nut Co bags, I had these on top of my porridge for breakfast, it made breakfast far less dull as I didn't have any fruit. Yum yum!
I wasn't so keen on the Nakd Ginger Bread Bar. To me it tasted far too much of clove and not enough of ginger. Perhaps it was just my taste buds. The texture however was delightful!

Overall, I am super happy with this snack box, it's crammed full, I mean you couldn't fit another snack! The snacks themselves are all great portion sizes, perfect to have with luch or a midafternoon snack without feeling naughty and they're all good for you!
I definitely recommend if you have any specific dietary requirements or even if you just want to try something new!

Have you subscribed to The Nutribox Mini or full-sized boxes? If so, what are your opinions? If not, would you want to?
Find out more for yourself by checking out the Nutribox website!




Melting Pot, Salad Bowl, Chocolate Fondue

Here's an opinion piece I wrote for the (Minnesota) Star Tribune newspaper, published on Sunday, June 29.


"Analogies for America: Beyond the Melting Pot"
 Timothy Taylor


Melting pot or salad bowl? For decades now, these two contestants have been slugging it out in the contest for most appropriate metaphor for how the cultures and ethnicities of America fit together. But my preference is to think of America as chocolate fondue.

The popularization of “the melting pot” metaphor is usually traced to a soppy, sentimental and very popular play of that name by an immigrant named Israel Zangwill that opened in Washington in 1908. The melting pot metaphor is a way of expressing “E pluribus unum” — “Out of many, one” — the already old saying adopted in 1782 for the Great Seal of the United States (and which you can see on the back of the $1 bill). “E pluribus unum” has also been imprinted on U.S. coins since the 18th century.

The traditional criticism about the melting pot was that what is special about American culture isn’t its homogeneity, but rather its ability to absorb the elements of many cultures, then pass them around to everyone. For example, as John F. Kennedy wrote in his 1958 book, “A Nation of Immigrants”: “One writer has suggested that a ‘typical American menu’ might include some of the following dishes: ‘Irish stew, chop suey, goulash, chile con carne, ravioli, knockwurst mit sauerkraut, Yorkshire pudding, Welsh rarebit, borscht, gefilte fish, Spanish omelette, caviar, mayonnaise, antipasto, baumkuchen, English muffins, gruyère cheese, Danish pastry, Canadian bacon, hot tamales, wienerschnitzel, petit fours, spumoni, bouillabaisse, mate, scones, Turkish coffee, minestrone, filet mignon.’ ”
In our multicultural and individualist age, the common complaint is that the metaphor says that Americans should surrender our cultural and ethnic identities. This critique strikes me as overwrought. Yes, the culture of the country where you live is constraining. But what’s distinctive about modern America is the looseness of these constraints, and the array of available choices.

However, it does bother me that the melting pot metaphor is a relic of a bygone time, when melting different metals together was a common for many industrial workers. It also bothers me that melting different metals together produces a desired outcome only if you adhere to a formula. Bronze is copper and tin. Brass is copper and zinc. If you just dump different metals into a melting pot, what comes out is likely to be flawed and brittle, not strong or useful. When supporters of the melting pot metaphor start talking, it often turns out that they have a clear mental formula for what it means to be American — and it isn’t always my formula.
The notion of America as a salad bowl seems to have been popularized by the eminent historian Carl Degler. His book “Out of Our Past: The Forces that Shaped Modern America” was a commonly used textbook from the 1950s up through the 1980s. In the 1959 edition, he wrote: “[S]ome habits from the old country were not discarded; in those instances the children of immigrants even into the third and fourth generations retained their differences. In view of such failure to melt and fuse, the metaphor of the melting pot is unfortunate and misleading. A more accurate analogy would be a salad bowl, for, although the salad is an entity, the lettuce can still be distinguished from the chicory, the tomatoes from the cabbage.”

While the salad bowl metaphor has a healthy, crunchy “eat your vegetables” ring to it, it seems awkward to me as well. After all, who is the pale and crunchy iceberg lettuce? Who is arugula? Who are the artificial bacon bits? Who are anchovies? Salad ingredients are not all created equal.

Salad is always falling apart, and you can almost never get all of the ingredients, in just the right proportions, into your mouth at the same time. Imagine the oversized modern salad bar, with multiple kinds of lettuces and vegetables, but also seeds and nuts, tuna salad, slices of chicken or ham, bean salad, hard-boiled eggs, crackers and popcorn, along with choice of soup and dessert. It misses what is cohesive and distinctive about America to see the country as a long buffet of ingredients, which we all choose to exclude or include according to our transient appetites of day.

My own suggestion is that America is chocolate fondue. Our different cultural and ethnic backgrounds are the strawberries, pineapple, and cherries, the graham crackers and cookies, the pound cake and brownies, the rice crispy treats and marshmallows, the popcorn and the peppermint sticks. Then we are dipped in America. We swim in America. We are coated in America. Because Americans can and do come from all ethnicities and races, we all look like Americans.

Of course, chocolate doesn’t always deliver on its promise. It can become grainy, rancid, burnt and bitter. Some people have no taste for chocolate, or are even allergic to it. America has often not lived up to its promises and ideals. But when I think consider all the human beings who have ever lived, in all the different places and times around the world, I feel profoundly fortunate to be living in modern America.

There’s an old story about when heavyweight boxing champion Joe Louis decided to enlist in the U.S. Army in 1942. A friend of his objected, and said: “It’s a white man’s Army, Joe, not a black man’s Army.” But Joe Louis had observed the Nazi propaganda machine close up, as the result of his two epic fights against the German Max Schmeling (who was not a Nazi, but whom the Nazis attempted to exploit). So Louis told his friend: “Lots of things wrong with America, but Hitler ain’t going to fix them.”

In that spirit, I’d say lots of things are wrong with America, but often, the best answers for what’s wrong with America are a bigger dose of what’s right with America. On the Fourth of July, I choose to sit with family and friends, and to savor the textures and sweetness of our shared American experience.
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Timothy Taylor is managing editor of the Journal of Economic Perspectives, based at ­Macalester College in St. Paul. He blogs at http://conversableeconomist.blogspot.com.

Re-thinking Recycling

Cato Unbound for June 2013 has a lively and provocative set of essays on "The Political Economy of Recycling." The lead essay is by Michael Munger, with comments from Edward Humes, Melissa Walsh Innes, and Stephen Landsberg.  All of the essays are full of lively examples and sharp writing. Here are three examples from Munger, but these essays have many more treats in store.

Example 1: Wash Your Garbage

"When I was working on recycling policies for cities, I read a lot of web sites that described what was expected of good citizens.  Note that these policies were not mandatory; they were just what a moral person was expected to do.  The duties of good citizens came down to three things:  (1) recycle everything; (2) sort it assiduously; and (3) wash it carefully. Note that this whole approach is entirely insulated from costs or the logic of price.  The reason “we” recycle is that people in our town are good people, not people motivated by money. ...

"The result is that people drive, sometimes several miles or more, to sort their garbage into little bins like they were playing demented Tetris.  Bottles and glass here, plastic here, paper here, aluminum there.  In many cities, the resulting separated waste is actually picked up, re-mingled, and landfilled, because it has no economic value whatsoever.  But that’s okay, because the important thing is the moral act of recycling, not the saving of resources. The strangest part of this fetishization of garbage ... is the practice advocated by many small towns:  run your garbage through the dishwasher.  ...

"Curious, I phoned the public relations officers with the recycling departments in several small cities in the Northeast.  I asked one extremely cheerful and energetic young woman how her city could justify asking people to put their garbage in the dishwasher.  Isn’t that pretty expensive, in terms of human time, and the energy to heat the water, compared to the value of the garbage? Using the same tone of voice one would use to talk to a five year old—she clearly thought I was not the sharpest can lid in the recycle bin—she gave me the most concise explanation I have encountered in the whole genre.  She said, “Oh, you have to understand, sir.  Recycling is always cheaper, no matter how much it costs!” .... The problem is that, from economic perspective, from the perspective of balancing resource use, that’s just not true.  If you are trying to save energy and resources such as water and time, it never makes sense to put your garbage in the dishwasher.

Example 2: Required Composting Goes Awry

"The state of North Carolina, where I live, has a law against disposing of yard waste in a standard landfill.  This makes some sense. Yard waste decomposes naturally and turns into compost eventually, so it can be disposed of more safely than the dangerous waste we put in landfills.  But the city of Durham, where Duke University is located, decided that they would do the state one better.  The city council required all citizens to dispose of their yard waste at curbside, where it was picked up by city trucks and taken to the city composting facility.

"The city collected an extra fee—about $60—from residents to operate this service.  Expenses were much greater than that, but the theory was that the composted yard waste could be resold to pay the rest of the costs of the operation.  Best of all, there would be no need for landfilling the yard waste once the operation was up and running:  yard waste in, compost out, with no waste going to any other kind of disposal. The problem was that much of the yard waste was large stumps and tree limbs, resulting from several hurricanes and large storms.  The “compost pile” quickly became the “stump dump,” an enormous pile of rubbish.  The idea that the stuff was valuable was just wrong. It was garbage, not “black gold.”
"And then it caught fire.  Spontaneous combustion deep inside the pile, a common result of decomposition and pressure, found enough oxygen to begin to smolder.  The city tried to put it out by soaking the pile, but that just made the smoke worse. The fire could not be completely extinguished for weeks, and neighbors for miles downwind complained of the pollution. So the waste that homeowners paid extra for reusing was dumped instead in the main garbage staging facility. But remember, the law prohibits disposal of yard waste in landfills in North Carolina.    So, Durham shipped all its trash, including grass clippings, to a landfill more than 85 miles away in Lawrenceville, VA.  The clean-up and the extra hauling charges cost Durham an extra $1 million compared to landfill disposal."


Example 3: Recycling vs. Reducing the Waste Stream

"There are two ways to think of the solution to a problem.  Consider the problem of polio, a disease that killed tens of thousands and ruined the lives of millions around the world in the 1930s through 1950s.  One solution was to try to ease the suffering of polio victims, developing better iron lungs and systems of braces, wheelchairs, and prosthetics to make it possible that they could live some kind of life.  This industry was enormous, and highly profitable. The other solution was to develop a vaccine, the one that Dr. Jonas Salk finally perfected in 1952, and which showed itself to be effective within a decade.  By the late 1960s, polio had been reduced sharply in the United States.  Now, it is almost unknown here and in most of the rest of the world.  Of course, the makers of braces, crutches, and iron lungs took a beating, because no one needed their products anymore.  But the total costs to society were dramatically reduced, even accounting for the “loss” to the equipment manufacturers.

"When it comes to waste management, we are at the stage of manufacturing braces and iron lungs.  Our brightest and most motivated young people are pawing through garbage, arguing about who is more holy and who is most devoted to the misleadingly moralized cause of recycling.  Huge investments in industry and innovation are being misdirected–may I say “thrown in the garbage”?–because we are working on the wrong problem. ... 

"We need to be working on the waste management equivalent of the Salk vaccine:  prevent the creation of a massive and expensive waste stream at the source.  We have to change the incentives so that manufacturers are responsible for the waste they create, the packaging they use to move products, the containers they use to hold liquids, food items, and consumer goods. ...

Who will solve the problem, and how?  I am a Hayekian; I have no idea.  And unlike the Salk vaccine there may not be any one identifiable person or idea that solves the problem.  What I do know is that if we recognize that the answer is not arguing over how to handle garbage that already exists, we have to produce less garbage in the first place.  The answer may be counterintuitive, of course.  Where we have reduced the amount of plastic in bottles and aluminum in cans by more than 50% in the last decade, the answer may be to increase the sturdiness of containers so that they can be reused. Instead of reducing the bulk of pallets and packages, the answer may be to make packages reusable, in the same way that shipping containers are now refilled and reused rather than melted down and reprocessed after a single use.
"If we start asking the right question—not how to recycle garbage, but how to prevent garbage’s existence—we might make progress.  As it stands, too many people, and too many large powerful corporations, have a financial stake in the status quo. They are making the waste management equivalent of iron lungs and polio braces."

How Many High Wealth Individuals?

How many people in the world have a million dollars or more in financial assets? That is, leave aside the value of real estate or other owned property. Capgemini and RBC Wealth Management provide some estimates in a report that seeks to define the global market for the wealth management industry, the World Wealth Report 2013.

The report splits High Net Worth Individual (HNWI, natch) into three categories. Those with $1 million to $5 million in financial assets are in the "millionaire next door" category, and while I find that name a bit grating, it's fair enough. After all, a substantial number of of households in high-income countries that are near retirement, if they have been steadily saving throughout their working life, will have accumulated $1 million or more. The next step up is those with $5 million to $30 million in financial assets, who this report calls the "mid-tier millionaires." At the top, with more than $30 million in financial assets are the "ultra-HNWI" individuals. Here's the global distribution:

A few quick observations:

1) The "ultra-HNWI" individuals are less than1% of the total HNWI population, but have  35% of the total assets of this group. The "millionaires next door"  with $1 million to $5 million are 90% of the high net worth individual population, and have 42.8% of the total net worth of this group.

2) Another table in the report shows that 3.4 million of the high-net worth individuals--about 28% of the total--are in the United States.  The next four countries for number of people in the high net worth category are Japan (1.9 million), Germany (1.0 million), and China (643,000) and the UK, (465,000).

3) World population is about 7 billion. So the 12 million or so high net worth individuals are about one-sixth of 1% of the world population.
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