Fun with zero gravity

Here is the video of the band OK Go filmed on a plane doing parabolic arcs. OK Go is famous for having the most creative videos, which combine Rube Goldberg contraptions with extreme synchronized choreography. The video of Upside Down and Inside Out is a single shot. Each zero gravity arc is about 30 seconds long. The intervening hyper gravity arcs are compressed in the video although it is very hard to detect in the first viewing.

 

CO2 and the return of the dinosaurs

The dinosaurs lived during the Mesozoic Era, which was divided into the Triassic, Jurassic, and Cretaceous Periods. Many of the iconic dinosaurs that we know and love such as Tyrannosaurus rex and Triceratops lived at the end of the Cretaceous while others such as Stegosaurus and Apatosaurus (formerly known as Brontosaurus) lived 80 or so million years earlier in the Jurassic. I used to picture all the dinosaurs co-existing simultaneously but the time span separating Stegosaurus from T. rex is larger than that between T. rex and the present! Dinosaurs also weren’t the only creatures alive at that time, just the most dominant ones. Technically, the term dinosaur only applies to land-based reptiles with certain features. The avian reptiles, such as Pteranodon, or the marine ones, such as Plesiosaurs, resembled dinosaurs but were not classified as such. Aside from those dinosaur-like animals, there were also invertebrates, fish, sharks, and a class of animals called Synapsids, defined by an opening in the skull behind the eyes, from which all mammals are descended.

Synapsids were small marginal creatures during the Mesozoic but came to dominate the land after the dinosaurs went extinct at the end of the Cretaceous (the KT extinction event). The consensus theory is that a large asteroid or comet strike in the Yucatan set off fire storms, seismic events and a cloud that blocked sunlight for up to a year. This caused plants to die globally, which collapsed the food chain.The only survivors were creatures that could go deep underwater or bury underground and survive long periods with little or no food. Survivors of the KT extinction include some fish, small sharks, small crocodiles and other cold blooded reptiles, small bipedal theropod dinosaurs, of which T-Rex is a member, and small rodent-like synapsids.

If the KT extinction event was a transient perturbation then it is reasonable to expect that whatever it was that allowed dinosaurs to become dominant would remain and the surviving theropods would come to dominate again. But that is not what happened. Theropods did survive to become modern birds but aside from a few exceptions, most are small and almost all are avian. Instead, the Synapsids came to dominate and the largest creature to ever live, namely the Blue Whale, is a Synapsid. Now this could be purely due to random chance and if we played out the KT event over and over there would be some distribution where either Synapsids or dinosaurs become dominant. However, it could also be that global conditions after the Cretaceous changed to favour Synapsids over dinosaurs.

One possible change is the atmospheric level of carbon dioxide. CO2 levels were higher than they are today for much of the past 500 million years, even with the recent rapid increase. The levels were particularly high in the Triassic and Jurassic but began to decline during the Cretaceous (e.g. see here) and have continued to decrease until the industrial revolution when it turned upwards again. Average global temperatures were also higher in the Mesozoic. The only other time that C02 levels and global temperatures have been as low as they are now was in the Permian before the Great Dying. During the Permian, the ancestor to dinosaurs was a small insectivore that had the ability to run on two legs while the dominant creatures were none other than the Synapsids! So, mammal-like creatures were dominant before and after the dinosaurs when CO2 levels and temperatures were low.

Perhaps this is just a coincidence but there is one more interesting fact to this story and that is the amount of stored carbon (i.e. fossil fuels) has been very high twice over the past 500 million years – the Permian and now. It had been believed that the rise in CO2 at the end of the Permian was due to increased volcanism but a paper from 2014, (see here), speculated that a horizontal gene transfer event allowed an archaea microbe to become efficient in exploiting the buried carbon and this led to an exponential increase in methane and CO2 production. The active volcanos provided the necessary nickel to catalyze the reactions. Maybe it was simply a matter of time before some creature would find a way to exploit all the stored energy conveniently buried underground and release the carbon back into the atmosphere. The accompanying rise in temperatures and increased acidification of the oceans may also spell the end of this current reign of Synapsids and start a new era. While the smart (rich?) money seems to be on some sort of trans-human cyborg being the future, I am betting that some insignificant bird out there will be the progenitor of the next dominant age of dinosaurs.

Are humans successful because they are cruel?

According to Wikipedia, the class Mammalia has 29 orders (e.g. Carnivora), 156 families (e.g. Ursidae), 1258 Genera (e.g. Ursus), and nearly 6000 species (e.g. Polar Bear). Some orders like Chiroptera (bats) and Rodentia are very large with many families, genera, and species. Some are really small like Orycteropodidae, which has only one species – the aardvark. Humans are in the order Primates, of which there are quite a few families and genera. Almost all of them live in tropical or subtropical areas and almost all of them have small populations, many of them endangered. The exception of course is humans who is the only species remaining of the genus homo. The other genera in the great ape family hominidae – gorillas, orangutans, chimpanzees, and bonobos – are all in big trouble.

I think most people would attribute the incomparable success of humans to their resilience, intelligence, and ingenuity. However, another important factor could be their bottomless capacity for intentional cruelty. Although there seems to be a decline in violence throughout history as documented in Steven Pinker’s recent book, there are still no shortages of examples. Take a listen to this recent Econtalk podcast with Mike Munger on how the South rationalized slavery. It could very well be that what made modern humans dominate earth and wipe out all the other homo species along the way was not that they were more intelligent but that they were more cruel and rapacious. Neanderthals and Denisovans may have been happy sitting around the campfire after a hunt, while humans needed to raid every nearby tribe and kill them.

A musical selection

Since I gave up posting a musical selection every week, I changed the title. I still intend to post selections occasionally. Here is Joseph Haydn’s Quartet in E-flat major, Op. 33, No. 2, nicknamed “The Joke”, played by the Ariel Quartet. Make sure you listen to the end. I could think of nothing more appropriate for our times.

 

Insider trading

I think one of the main things that has fueled a backlash against the global elites is the (correct) perception that they play by different rules. When they make financial mistakes, they get bailed out with taxpayer dollars with no consequences. Gains are privatized and losses are socialized. Another example is insider trading where people profit from securities transactions using nonpublic information. While there have been several high profile cases in recent years (e.g. here is a Baltimore example), my guess is that insider trading is rampant since it is so easy to do and so hard to detect. The conventional wisdom for combating insider trading is stronger enforcement and penalties. However, my take is that this will just lead to a situation where small time insider traders get squeezed out while the sophisticated ones who have more resources will continue. This is an example where a regulation creates a monopoly or economic rent opportunity.

Aside from the collapse of morality that may come with extreme wealth and power (e.g. listen here), I also think that insider traders rationalize their activities because they don’t think that it hurts anyone even though there is an obvious victim. For example, if someone gets inside information that a highly touted drug has failed to win approval from the FDA then they can short the stock (or buy put options), which is an agreement or opportunity to sell the stock at the current price in the future. When the stock decreases in value after the announcement, they just buy the stock at the lower price, resell at the higher price, and reap the profits. The victim is the counter party to the trade who could be a rich trader but could also be someone’s pension fund or employees of the company.

Now the losing party or a regulatory agency could suspect a case of insider trading but to prove it would require someone confessing or finding an email or phone recording of the information passed. They could also try to set up a sting operation to try to catch serial violators. All of these things are difficult and costly. The alternative may seem ridiculous but I think the best solution may be to make insider trading legal. If it were legal then several things would happen. More people would do it which would drive down the prices for the trades, the information would more likely be leaked to the public since people would not be afraid of sharing it, and people would be more careful in making trades prior to big decisions because the other party may have more information than they do. Companies would be responsible for policing people in their firms that leak information. By making insider information legal, the rent created by regulations would be reduced.

The US election and the future

Political scientists will be dissecting the results of the 2016 US presidential election for the next decade but certainly one fact that is likely to be germane to any analysis is that real wages have been stagnant or declining for the past 45 years. I predict that this trend will only worsen no matter who is in power. The stark reality is that most jobs are replaceable by machines. This is not because AI has progressed to the point that machines can act human but because most jobs, especially higher paying jobs, do not depend heavily on being human. While I have seen some consternation about the prospect of 1.5 million truck drivers being replaced by self-driving vehicles in the near future, I have seen much less discourse on the fact that this is also likely to be true for accountants, lawyers, middle managers, medical professionals, and other well compensated professionals. What people seem to miss is that the reason these jobs are well paid is that there are relatively few people who are capable of doing them and that is because they are difficult for humans to master. In other words, they are well paid because they require not acting particulary human. IBM’s Watson, which won the game show Jeopardy and AlphaGo, which beat the world’s best Go player, shows that machines can quite easily better humans at specific tasks. The more specialized the task, the easier it will be for a machine to do it. The cold hard truth is that AI does not have to improve for you to be replaced by a machine. It does not matter whether strong AI, (an artificial intelligence that truly thinks like a human), is ever possible. It only matters that machine learning algorithms can mimic what you do now. The only thing necessary for this to happen was for computers to be fast enough and now they are.

What this implies is that the jobs of the future will be limited to those that require being human or where interacting with a human is preferred. This will include 1) jobs that most people can do and thus will not be well paid like store sales people, restaurant servers, bar tenders, cafe baristas, and low skill health workers, 2) jobs that require social skills that might be better paid such as social workers, personal assistants, and mental health professionals, 3) jobs that require special talents like artisans, artists, and some STEM professionals, and 4) capitalists that own firms that employ mostly robots. I strongly believe that only a small fraction of the population will make it to categories 3) and 4). Most people will be in 1) or not have a job at all. I have argued before that one way out is for society to choose to make low productivity work viable. In any case, the anger we saw this year is only going to grow because existing political institutions are in denial about the future. The 20th century is over. We are not getting it back. The future is either the 17th or 18th century with running water, air conditioning and health care or the 13th century with none of these.

Revolution vs incremental change

I think that the dysfunction and animosity we currently see in the US political system and election is partly due to the underlying belief that meaningful change cannot be effected through slow evolution but rather requires an abrupt revolution where the current system is torn down and rebuilt. There is some merit to this idea. Sometimes the structure of a building can be so damaged that it would be easier to demolish and rebuild rather than repair and renovate. Mathematically, this can be expressed as a system being stuck in a local minimum (where getting to the global minimum is desired). In order to get to the true global optimum, you need to get worse before you can get better. When fitting nonlinear models to data, dealing with local minima is a major problem and the reason that a stochastic MCMC algorithm that does occasionally go uphill works so much better than gradient descent, which only goes downhill.

However, the recent success of deep learning may dispel this notion when the dimension is high enough. Deep learning, which is a multi-layer neural network that can have millions of parameters is the quintessence of a high dimensional model. Yet, it seems to be able to work just fine using the back propagation algorithm, which is a form of gradient descent. The reason could be that in high enough dimensions, local minima are rare and the majority of critical points (places where the slope is zero) are high dimensional saddle points, where there is always a way out in some direction. In order to have a local minimum, the matrix of second derivatives in all directions (i.e. Hessian matrix) must be positive definite (i.e. have all positive eigenvalues). As the dimension of the matrix gets larger and larger there are simply more ways for one eigenvalue to be negative and that is all you need to provide an escape hatch. So in a high dimensional system, gradient descent may work just fine and there could be an interesting tradeoff between a parsimonious model with few parameters but difficult to fit versus a high dimensional model that is easy to fit. Now the usual danger of having too many parameters is that you overfit and thus you fit the noise at the expense of the signal and have no ability to generalize. However, deep learning models seem to be able to overcome this limitation.

Hence, if the dimension is high enough evolution can work while if it is too low then you need a revolution. So the question is what is the dimensionality of governance and politics. In my opinion, the historical record suggests that revolutions generally do not lead to good outcomes and even when they do small incremental changes seem to get you to a similar place. For example, the US and France had bloody revolutions while Canada and the England did not and they all have arrived at similar liberal democratic systems. In fact, one could argue that a constitutional monarchy (like Canada and Denmark), where the head of state is a figure head is more stable and benign than a republic, like Venezuela or Russia (e.g. see here). This distinction could have pertinence for the current US election if a group of well-meaning people, who believe that the two major parties do not have any meaningful difference, do not vote or vote for a third party. They should keep in mind that incremental change is possible and small policy differences can and do make a difference in people’s lives.