Artists Resale Royalties: a piece of pie…

The ARR scheme so far has cost taxpayers just over $2.2 million and as of December 2013 has delivered a total of 7,800 royalty payments, to 800 artists (or estates) with a median value of about $105 per payment. The scheme has, in three and a half years, only generated a total of less than $200,000 in management fees. It is unlikely that the scheme will be self-funding any time soon, if ever. And what has this costly public art project delivered? A make-work scheme for arts administrators, a restraint of trade and what is essentially an anti-progressive tax: the more you have, the more you receive. Below is a pie chart of resale royalty distributions by value. Note: the construction of the pie chart needed a few ‘extrapolations’ where information from previous years is used to categorise the latest data. These extrapolations might not be perfect.(see footnote below)

The pie chart makes it clear that royalties on resales of individual artworks for more than $10,000 each, account for 59% of all the money collected, yet these top rank payments – about 550 in total -  only account for just 7% of the total number of individual payments of the scheme. (BTW many thanks to Paul Fritjers for the tasty pie chart.)sales by price

On the other hand the bottom 44% (2,946) of individual payments have only accounted for just 9% of all the money collected. The median value of this bottom bracket of payments is about $55; the average individual transaction cost to CAL, alone, is $30.The only point of these thousands of very small, costly payments is to conceal the real, anti-progressive nature of ARR. Continue reading

One for Your Amazon Wish-List

French economist Thomas Piketty has been picking up a lot of attention in the rest of the English speaking world – well mainly the US – thanks to the publication of an English translation of his recent book Capital in the 21st Century. Never heard of him? Don’t fret about it – neither had I until I quite serendipitously came across this article in the Guardian a couple of days ago.

The subject of Piketty’s book is obvious from the title. More specifically, it deals with the growing inequality in wealth – and income – distribution which is becoming entrenched in the global economy. At 650+ pages it’s obviously going to be a substantial read when (or perhaps if) I finally get my grubbies on a copy but from what I’ve seen so far probably worth the effort. Continue reading

A postcard from 1968

I remember a long long time ago – in fact it was nearly fifty years ago I went with my family on a three week trip to Alice Springs and the Northern Territory. Dad didn’t spend much time with us as he was working while Mum, David and I tried to enjoy ourselves. Mum located a riding school and we went riding quite a few days. We went to the rock, where Mum, famous ever after in family culture, took one look at the climbing face of the rock and decided that if we stumbled and fell and lost hold of the single chain going up the rock, we might easily die. So we were forbidden from climbing the rock.

We were scandalised. In any event I still remember the trip quite well. Dad’s work meant nothing to me then but it was quite historic. It was work with two other academics – I think Colin Tatz and Sol Encel – on the likely consequences of giving aborigines equal pay.  The next year they got it of course, though it was never about their interests. They were not heard in the case and remained unrepresented. The white unions didn’t like competing against cut price labour.

In his part of the report focusing on economics, Dad concluded firstly that aborigines should be given equal pay, but also that demand for aboriginal labour would fall and so recommend support for aboriginal stockmen (I don’t know what kind, presumably the original documents can be located, but I don’t know where they’d be and I’ve not looked.) In the upshot Dad was (I expect) quite shocked to be attacked quite stridently as a racist. His saying that some aboriginal stockmen would lose their jobs was racist apparently.

Anyway, racist or not, he was right.

Continue reading

Operation 2770: TACSI’s Family by Family expands to Mt Druitt

Family by Family about which Troppodillians have heard before is spreading its wings. We’ve started in Mt Druitt where we’ve scoped the program which means investigating how it should be changed to optimise it to the local community. Here’s the Scoping Report which I think makes interesting reading.

Anyway we launched the scoping report with the Minister who’d commissioned us to establish the program – Pru Goward. And here’s my speech at the function. One thing that got my attention was the fact that, according to the scoping report, quite a few people from the area have tattoos of the postcode. And the supporters of Greater Western Sydney take signs of their postcodes to fixtures against Sydney Football Club – which is now more explicitly the team from the leafy suburbs.

Here also is the audio of a recent interview on this by Alex Sloan.

Notes for a Speech by Nicholas Gruen, Chairman of the Australian Centre for Social Innovation at the launch of the Family by Family Scoping Report for Mt Druitt, 12th March, 2014

I

Welcome to our modest function at Postcode 2770

Still, I’m reliably informed that from little things big things grow.

These are the words of Mystic (pronounced Mystique). She’s 21 now but was in out of home care since she was 3.

It happened so quickly. Once I turned 18, they sort of kicked me on my arse. They said ‘here’s $750, see you later, thank you’. And I’m just like ‘what the hell?’. A book and $750. That’s for being in care all your life.

Actually it makes you feel like an outsider. It makes you feel non existent on this earth. Like you are an alien. It does. It affects when you go to school too. You’re so used to being called ‘client’ and stuff that you start looking at yourself different to everyone else.

This example is not from NSW, but it’s not such an extreme example for those who know the system. And this is after what must be a decade, perhaps two of talking about “citizen centric services”!

II

Family by Family is different.

Continue reading

The other Berlin Wall that came down: The collapse of communism and the spread of ideas

Book Translations as Idea Flows: The Effects of the Collapse of Communism on the Diffusion of Knowledge
by Ran Abramitzky, Isabelle Sin

Abstract:

We use book translations as a new measure of international idea flows and study the effects of Communism’s collapse in Eastern Europe on these flows. Using novel data on 800,000 translations and difference-in-differences approaches, we show that while translations between Communist languages decreased by two thirds with the collapse, Western-to-Communist translations increased by a factor of four and quickly converged to Western levels. Convergence was more pronounced in the fields of applied and social sciences, and was more complete in Satellite and Baltic than in Soviet countries. We discuss how these patterns help us understand how repressive institutions and preferences towards Western European ideas shaped the international diffusion of knowledge.

What’s wrong with TED talks – hint: quite a lot

I have almost certainly fulminated in various asides against TED talks on this blog, and even one full on cri de coeur against retail profundification. (I promised one on business class profundification but I haven’t managed to do it yet.

Anyway, a friend sent me this TEDx talk which is about what’s wrong with TED Talks. It’s terrific. Indeed, if you want to watch it you can, but you can also see the text of the speech reproduced on the speaker’s website and in the Guardian. It’s always annoyed me that transcripts aren’t provided as a matter of course. They save a lot of time.

My favourite quote on economics:

Our options for change range from basically what we have plus a little more Hayek, to what we have plus a little more Keynes. Why?

Enjoy.

Evening up rights: the rough with the smooth …

Suicide and Property Rights in India by Siwan Anderson, Garance Genicot  -  #19978 (DEV)

This paper studies the impact of female property rights on male and female suicide rates in India. Using state level variation in legal changes to women’s property rights, we show that better property rights for women are associated with a decrease in the difference between female and male suicide rates, but an increase in both male and female suicides.  We conjecture that increasing female property rights increased conflict within household and this increased conflict resulted in more suicides among both men and women in India. Using individual level data on domestic violence we find evidence that increased property rights for women did increase the incidence of wife beating in India.

The singularity: which jobs will go?

 

Pretty interesting paper (pdf).

The abstract:

We examine how susceptible jobs are to computerisation. To assess this, we begin by implementing a novel methodology to estimate the probability of computerisation for 702 detailed occupations, using a Gaussian process classifier. Based on these estimates, we examine expected impacts of future computerisation on US labour market outcomes, with the primary objective of analysing the number of jobs at risk and the relationship between an occupation’s probability of computerisation, wages and educational attainment. According to our estimates, about 47 percent of total US employment is at risk. We further provide evidence that wages and educational attainment exhibit a strong negative relationship with an occupation’s probability of computerisation.

The last paragraph of the conclusion.

Finally, we provide evidence that wages and educational attainment exhibit a strong negative relationship with the probability of computerisation. We note that this finding implies a discontinuity between the nineteenth, twentieth and the twenty-first century, in the impact of capital deepening on the relative demand for skilled labour. While nineteenth century manufacturing technologies largely substituted for skilled labour through the simplification of tasks (Braverman, 1974; Hounshell, 1985; James and Skinner, 1985; Goldin and Katz, 1998), the Computer Revolution of the twentieth century caused a hollowing-out of middle-income jobs (Goos, et al., 2009; Autor and Dorn, 2013). Our model predicts a truncation in the current trend towards labour market polarisation, with computerisation being principally confined to low-skill and low-wage occupations. Our findings thus imply that as technology races ahead, low-skill workers will reallocate to tasks that are non-susceptible to computerisation – i.e., tasks requiring creative and social intelligence. For workers to win the race, however, they will have to acquire creative and social skills.