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Can Long Term Research Survive the Coming Age of Austerity?

Hugh Pickens writes "Alexis Madrigal writes that everyone agrees you need science and technology R&D, but when budgets get tight, research into quantum dots or the fundamental forces that cause earthquakes has a hard time holding the line against health care or tax cuts for the richest Americans. Different countries are taking different approaches. Japan is focusing on its most elite researchers, giving up to $50 million to 30 different people. Other countries are just giving up on some areas of research to focus on others; for example, US particle physicists who will spend their careers trying to drive from the backseat as our European counterparts run the Large Hadron Collider. A third approach might be to reduce redundancies in research. 'An idea to provide funding in a larger number of key areas that would avoid duplication is to create dedicated research centers where several investigators can work in parallel on complementary topics,' writes Joerg Heber. "If we do less research we need to do it right. And using this crisis to think about our research infrastructure needn't be a bad thing. It should be seen as an opportunity to reform the academic research system in a more comprehensive and fundamental way than the academic community and the politicians normally dare to think about.'"

53 of 306 comments (clear)

  1. Re:Research money has to be divided more fairly. by gearsmithy · · Score: 2

    I need to grab some popcorn.

  2. I have a better question by BitHive · · Score: 3, Interesting

    Can Progress Survive Austerity as a Foregone Conclusion?

    1. Re:I have a better question by fuzzyfuzzyfungus · · Score: 2

      It is rather darkly fascinating how a series of movements of largely imaginary money has managed to so sharply affect the availability of actual products and services to actual people...

    2. Re:I have a better question by fuzzyfuzzyfungus · · Score: 4, Insightful

      While the assorted clever mechanisms for ensuring that trickle-up economics continues to work are fascinating(and important to keep an eye on), it's more complex than a mere ponzi scheme:

      Ponzi schemes are zero to negative sum games with a fairly clear redistribution of a fixed amount of wealth among a population, with a heavy redistribution toward the top of the pyramid. The real economy, though, is stranger. If you look at the matter in terms of 'real' wealth(ie. the goods and services that people actually want for their own sake, rather than the assorted intermediary constructs), the world has basically never been better off, with the exception of unpleasant looking mid to longterm numbers on petrochemicals. And yet, the correct perturbations in the framework of legal fictions that we lay on top of that can actually make people, on average, worse off.

      That's the part of economics where my intuition just sort of curls up and dies. Your classic "The crops failed, so the supply of wheat is at 50%, ergo famine" is easy. The "a fixed quantity of wealth is distributed among hypothetical investors, one of them starts a ponzi scheme, now the distribution is different." is also pretty easy. But when "We have so many available houses that getting a place to live is now cheaper than before!" becomes an international crisis, you know that your head is rammed so far up the ass of the twilight zone that comprehension is going to be difficult...

  3. research money by alphacow · · Score: 2

    As a researcher, I think giving to the most elite is a moderately good idea. Reading most of the research that's generated by people like me, you realize it's just PhDs trying their darnedest to ++publicationCount, which is a pretty stupid thing for taxpayer dollars to fund. The major work, more often than not, comes out of well-renown labs, and the students who come out of those labs.

    On the other hand, lots of the fundamental knowledge necessary for the "major work" mentioned earlier comes from the incremental work that isn't sexy in its own right, but very necessary nonetheless. No simple answer here.

    1. Re:research money by wjousts · · Score: 2

      As a research, I strongly disagree. Reputations are slow to build and linger far longer than they are deserved. Einstein wasn't an "elite" research when he did most of his best work and once he was "elite" he never had another breakthrough as earth-shattering as those he made as a lowly Swiss patent clerk.

    2. Re:research money by interkin3tic · · Score: 2

      Reading most of the research that's generated by people like me, you realize it's just PhDs trying their darnedest to ++publicationCount, which is a pretty stupid thing for taxpayer dollars to fund... On the other hand, lots of the fundamental knowledge necessary for the "major work" mentioned earlier comes from the incremental work that isn't sexy in its own right, but very necessary nonetheless. No simple answer here.

      It's punctuated equilibrium. Most published research is average of course, and does not advance us very far. Those few "major works" that advance us in leaps rely on those lesser published results. You cannot have the major advances without the minor advances.

      Is there a better way to do things? I'm skeptical. Publication count is going to remain important for as long as research grants and research positions are limited, which is going to be always. Every system is going to have flaws.

      As a researcher, I think giving to the most elite is a moderately good idea.

      Really? Because it seems to me that most of the established elite become very conservative with their research once they've "made it" doing research that basically builds off their previous research and is rarely fundamentally groundbreaking. Their lab workers do have the motivation to take real risks, as they need to establish themselves, but I'm of the opinion that giving more research funds to new programs and new heads of labs might advance us more. A good balance would probably be best.

    3. Re:research money by HuguesT · · Score: 2

      Not quite. Hopefully we can agree that Einstein's best work is his general theory of relativity. He was a patent clerk from 1903 until 1909. He did publish four major papers in 1905 including his work on special relativity and the photoelectric effect, but he did his most advanced work on GRT from about 1909 until 1917, with bits published in between. He then did his best work when he was in academia. He continued to do still widely cited work until at least 1935, when he published his EPR paper. I think during and after the war he was a bit isolated at Princeton.

      It is not quite true that established researchers stop being productive or even as productive as before they were known. Look at Feynman or Gell-Mann for instance, they did plenty of amazing work after their Nobel prize. Look at Marie Curie, she did enough good work after her first Nobel to get a second.

  4. "driving from the back seat" by Gyorg_Lavode · · Score: 3, Insightful
    Dear US scientists, learn to share. We don't need another Large Hadron Collider.

    The US really should accept that it doesn't need one of everything and there is no shame using the resources of other countries rather than duplicating them.

    --
    I do security
    1. Re:"driving from the back seat" by DerekLyons · · Score: 3, Insightful

      Yeah. After all, there were dozens of proposals for experiments on the LHC - and only a handful made the cut. There just can't possibly be any point to building a second LHC using a different set of experiments.

  5. Problem is by JamesP · · Score: 2

    For some stuff, the science is "easy", but it's the needed engineering that costs an arm and a leg (Space Shuttle, LHC, etc, etc)

    Which means you can't go "brute force" anymore on problems.

    Think, rethink experiments, use creativity. It will be better.

    I am sure there are new things to be discovered "on the cheap"

    Not that I'm agains LHC, on the contrary. But what if someone finds a way to have 10Tev collisions using a different and easier method.

    --
    how long until /. fixes commenting on Chrome?
  6. Re:Research money has to be divided more fairly. by YodasEvilTwin · · Score: 3, Insightful

    Alt-Med has been growing like gangbusters, its popularity at an all time high: it must work.

    You mean people are idiots. Most alt-med is garbage that has either been demonstrated to be ineffective or equivalent to a placebo (e.g. acupuncture), actually harmful (e.g. taking HIV-positive people off ARVs to "cure" AIDS), or not even worth investigating (e.g. homeopathy). The rest of it isn't alt-med, it falls under the purview of regular straight-up medicine (e.g. nutrition). Medicine should be evidence-based. Alt-med isn't medicine because it isn't based on evidence. That said, the pharmaceutical comapnies need to be regulated better and the FDA, NIH, etc. need to end their immense conflicts of interest.

  7. What everyone misses by JoshuaZ · · Score: 3, Interesting

    Diminishing marginal returns are very relevant for where government funding should go. Thus in general, small scientific programs are much more likely to have a very high output proportional to their cost than large programs. Since all science funding is tiny, cutting into it makes very little sense in that context. Of course, this is aside from the other serious issues with the recent pushes for austerity such as how in the US this apparently means cuts to absolutely everything except for military spending.

  8. Boo hoo by argStyopa · · Score: 3, Insightful

    Really, people.

    Perceived need is infinite. Resources are finite. Further, as we push back the boundaries of knowledge, the experiments get more and more expensive.

    We can argue all day about priorities, but let's actually talk about those priorities - simple, pointless whinging (such as 'US particle physicists have to drive from the back seat' because the Euros have the LHC....) is little more than tantrum-throwing.

    In a democracy, there is ALWAYS going to be a pressure from the mass to address their needs with Bread and Circuses. It's not the best long-term solution for anything (well, unless your goal is to breed a larger underclass), but the fact is that you have to sell your idea, or implement a tyranny in which your priorities 'win'.

    --
    -Styopa
  9. Duplications leads to innovation by gubers33 · · Score: 4, Interesting

    Multiple people working on the same thing leads to different ideas and more innovation, having only one group of people working on something adds only one perspective.

    --
    Just because you are wrong and I called you out on it doesn't mean I am a Troll.
    1. Re:Duplications leads to innovation by SoftwareArtist · · Score: 2

      I agree - "reducing duplication" is not the way to reform academic research. But there are a lot of other ways it could be made more efficient.

      Consider that most professors don't actually do much research; instead, they manage research groups. That's fine if they want to be managers, but more often the system just forces them in that direction. The result is that most real research is done by postdocs and new professors in their first few years on the job. A typical researcher gets maybe 10 years to really focus on doing research, and then they get sucked off into other things. The very people who are best qualified to do research aren't allowed to do it.

      Then there's the way so many research projects are tied to one particular person (often a grad student or postdoc), and when they move on, the project dies. Their samples get pushed to the back of the freezer, their code languishes on a hard drive somewhere, their equipment gets shoved under a table to gather dust, and eventually it all gets thrown out. Far too many academic groups are organized as "a set of people doing projects that interest them" rather than "a research organization coordinating a set of research projects that are judged to be important."

      None of this is to say we should be cutting research funding. But we really should reconsider the whole academic research system and consider how it could be made more efficient.

      --
      "I'm too busy to research this and form an educated opinion, but I do have time to tell everyone my uninformed opinion."
  10. Re:Research money has to be divided more fairly. by bmo · · Score: 2, Informative

    >Alt-Med has been growing like gangbusters, its popularity at an all time high: it must work.

    Post hoc ergo propter hoc.

    It's only popular because people like you have been able to dress your snake oil up in white coats and "professional" language. It's marketing.

    >Mark my words.

    I've marked your words, and underneath I've written "raving loony."

    You should be sued into the ground. Indeed, if a single person has died because you discouraged him or her from seeking actual effective treatment in time, you should be charged with manslaughter, at a minimum.

    --
    BMO

  11. Less Duplication? by drooling-dog · · Score: 3, Insightful

    Less duplication? In scientific research? So instead of the replication and confirmation/expansion of results, which used to be at the foundation of the scientific method, every "experiment" or study will now be done once and its outcome accepted unquestioningly as the final word?

    Clearly, all we have to do is eliminate all funding for genetics (evolution), geology, and climate research, and they'll be plenty of money left over to test all of our new weapons at least twice before putting them into the field.

  12. Comeon, /. by rayvd · · Score: 3, Insightful

    has a hard time holding the line against health care or tax cuts for the richest Americans.

    Flamebait like this in the article summary just will veer the discussion completely off-topic.

    It's also why I now have AdBlock Plus turned on when I (less frequently) browse this site.

    Tone down the obvious political bias! Thanks!

    1. Re:Comeon, /. by h4rr4r · · Score: 2

      What bias is that?
      They are really debating things like health care and tax cuts for the richest Americans while trying to figure out how to deal with the budget. How would you say that without the bias?

    2. Re:Comeon, /. by Daniel+Dvorkin · · Score: 2

      You cannot talk about government spending, on science or anything else, without also talking about politics, since arguments about where and how much the government should spend money are pretty much what politics is. Sorry if you consider a simple presentation of the facts to be "political bias," but it's absurd to pretend that the subject can be discussed apolitically.

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  13. plenty of money for research. by jonpublic · · Score: 2, Insightful

    Just imagine how much cash we'd have for research if we would have forced the banks to do the same thing that GM was forced to do.

    Declare bankruptcy, wipe out shareholders, and trim bond holders. Those are the people that invested in risky behavior and they should have paid the price.

    The swedes did it and they recovered from their banking crisis.

    http://www.ritholtz.com/blog/2011/06/go-swedish-part-47/

  14. Re:how about just make the rich pay their fair sha by davek · · Score: 2, Insightful

    the rich benefit disproportionately from government services, they should pay their fair share for them.

    So to you, "fair" is that out of 10 people, 1 person pays almost the entire bill, 4 people pay a little bit, and the remaining 5 pay nothing at all? On top of that, those non-paying 5 people are the ones consuming most of the benefits! This all seems "fair" to you?

    --
    6th Street Radio @ddombrowsky
  15. Re:Research money has to be divided more fairly. by wjousts · · Score: 2

    I'll make no further comment on your alt-medicine nonsense, others have already ripped you a new one. I'll simply refer you to this site.

  16. Re:Research money has to be divided more fairly. by fermat1313 · · Score: 2

    Why not give a small amount, even 10% of that research money go towards helping alternative medicine practitioners prove that their work is actually effective? We know it it from the millions of satisfied patients, now we just need some money and lab space to prove it.

    There is plenty of money in the Alternative Medicine industry. Have you been seen what they charge for useless homeopathic medicines? Tell you what, why don't you put some of your money into just a few peer-reviewed scientifically sound research projects that don't rely on anecdotal evidence to prove their conclusions. Once you get something that proves your basic approach to medicine is sound, then we'll start throwing money at you. Until that, why should you get any more money than astrologists, psychics, or perpetual motion "inventors"?

  17. Re:how about just make the rich pay their fair sha by h4rr4r · · Score: 2

    The non-paying 5 are not consuming most benefits. They have no factories to be protected by the police, they own no deposits to be insured by the government, they own no home to be protected from fire. They do not use the roads to make money, nor do they benefit from the legal system to uphold their patents or copyrights.

  18. Re:Research money has to be divided more fairly. by gnick · · Score: 2

    Take $10,000,000 + "we think X causes cancer" and you will get, surprise surprise, "proof" that X causes cancer.

    And "alt-med" is different? If you take $10,000,000 + "we think X cures cancer" and you will get, surprise surprise, "proof" that X cures cancer. Then all of the sudden we're all strapping magnets to our heads and yelling into our cell phones at a minimum 18" distance to avoid tumors because of the latest "study". The reason "Big Pharma" is so successful (aside from very favorable patent law) is that their research shows tangible, measurable results. "Alt-med," even after thousands of years of research and practice, simply makes the true-believers feel good while doing little to actually treat the ailments or showing any benefit for skeptics who undergo the same treatment.

    On the other hand, things like "I wonder how X works" gets funded because it fills in gaps that we simply don't even begin to understand and similar "fill in the gap" research is largely responsible for the tech that we have now but lacked only a couple of hundred years ago.

    --
    He's getting rather old, but he's a good mouse.
  19. what is /. now? by roman_mir · · Score: 2

    has a hard time holding the line against health care or tax cuts for the richest Americans.

    - and my comments are routinely moderated as 'troll', while obviously trolling is done on regular basis in the 'story' summaries?

    1. Re:what is /. now? by stinerman · · Score: 2

      As others have said, I fail to see how this is a troll. The general consensus in Washington right now is that we're going to have to make some hard choices in how we spend our money, seeing as the current debt is getting rather high in both nominal terms and as a percentage of GDP. Government-funded scientific research will likely be determined to be something we can't afford given that the Democrats will hold the line on entitlement spending and Republicans will hold the line on keeping taxes at current rates.

      If there is one thing that all Republicans are united against, it is the raising of taxes on those subject to the highest marginal rate (I'll forgo the loaded term "rich"). You might think that's a virtue, and you might think that's a vice, and I'm not here to argue either, but it is the truth. The same goes with the Democrats and keeping Medicare a government-run single-payer health care program for people over the age of 65.

    2. Re:what is /. now? by roman_mir · · Score: 2

      If it's not a troll, then it's really terrible ideology.

      You see, the 'hard choices' that Washington has to make are not that hard at all. They never have to do actual hard choices, which in case of Washington would have been real austerity for the government.

      Hard choices imply sacrifice, and in case of Washington that's not what they are talking about. Real sacrifice on their part would have been doing the right thing and cutting Washington. You don't call something a 'hard choice', unless it's actually hard for you.

      When you talk about scientific research, others talk about infrastructure - if those were the only things that government actually was involved in, there wouldn't have been any hard choices to make today, because there wouldn't have been any crisis, the economy would have been booming in the 20th century, just like it was booming in the 19th, if the government didn't become the maker and breaker of participants in the economy.

      So to me at least, anything that talks about the rich being somehow the problem, because they are not for having their taxes raised is a troll.

      AFAIC there must be no income taxes, no payroll taxes, no corporate taxes, no taxes on work. The government makes you believe that it's unfair not to tax work but only to tax consumption, because those with fewer means would be hit 'disproportionately'. But it's the same lie by the government, as the one that says that deflation is bad.

      How can they reconcile these 2 lies and the liberal public buys it is beyond me. You see, deflation means that prices eventually go down, while taxing work means that there will be inflation, and prices will go up, and so who is really hurt by that? It's not the rich, they'll make sure they are not hit with inflation (well, the smarter ones). It's easy not to be hit with inflation.

      Also the income taxes were originally introduced to only be paid by the top richest people, and their rate was around 1.5%. That was the way it was sold to the public, and what do you have today?

      No surprise that the only economic growth in US and most other Western nations is now only found in government, because government lives much beyond the means of the public to support it, government prints money (and in case of US it's illegal, they are only allowed to mint coins from your gold/silver for your own use, so you bring your metal, they mint it and you get it back from them, but they can't create money, yet they do. Sure it's the Fed, not Congress, but the Fed, just like SCOTUS is now the arm of federal government.)

      The reasons behind the economic crisis are that the public is bought by government officials with promises of various programs, which cannot be actually supported in the long run by the economy. The spending on SS, Medicare, Wars is what is killing the economy, but to listen to the politicians, it's the richest people not paying their so called 'fair share' is responsible for it.

      What is 'fair share'? How is it ever fair to tax income even at 1%, never mind 35% federal, 7% State (average), 3% medicare, SS (the rich?) etc.etc.? None of it was ever fair, none of it is fair now none of it will be fair in the future.

      You don't tax people's work. They do work and the work improves the economy and creates the wealth. You tax the work, regulate the work, subsidize some of the businesses while creating barriers to entry for others - you distort and destroy the economy, you create situation where the employer has no rights and employee has all of them, all of this so that the majority of voters keep voting you in. This is mobocracy, this is the death of republic, which was on purpose created not to be a democracy - mobocracy, because the mob doesn't look beyond the now and destroys its own economy by making the wrong choices for the economy in the long run 100% of the time.

      Of-course this is now a dissident opinion, the majority have spoken and there is no going back, there will be economic destruction because the majority is what is leading to it,

  20. Sure you can still work by SplashMyBandit · · Score: 2

    The rest of the World has been doing good research without the colossal budgets their American colleagues enjoy (I know, I was part of a project that operated on a shoestring - but we still found the free brown dwarfs in the galaxy). Maybe there will be fewer spectacular programmes, but of course great research will still get done. Of course, you can always join international collaborations as partners to pool resources, rather than be the rich kid having all the toys to themselves.

    Sorry if this sounds harsh, but Americans have had it so good for so long they didn't even realise how fortunate they are. Even with less excess wealth about they are still by far the richest people per capita - although certainly indvidivual Americans have it very tough at the moment - so it sounds a bit whiney when we hear that some program is being reduced because the US is going from (comparatively) very wealthy to just wealthy. Be grateful for what you already have, and appreciate all the things you also have that don't require lots of money (your health, friends, family, girlfriend, more opportunities than most Africans can dream of, more cheeseburgers than even Garfield can dream of, Mom's basement, and that fact you even have a computer to read Slashdot on!)

  21. Rounding Error by Swanktastic · · Score: 4, Insightful

    Most of this type of funding is a rounding error in the budget. The NSF gets $7B I believe. It's really not worth talking about cutting except for ideological reasons...

    1. Re:Rounding Error by antifoidulus · · Score: 3, Interesting

      This, exactly this. The Republican "debt cutting" is nothing, and I mean NOTHING, more than political retribution for opposing them. Republicans philosophy on freedom seems to resemble Stallman's quite a bit, "You are free if and only if you do everything that I tell you to do and never, EVER oppose me, your benevolent ruler".

  22. Tax cuts for the rich? by steveha · · Score: 3, Insightful

    It turns out that "the rich" pay the majority of the taxes. Thus any meaningful tax cut, for any purpose, will cut taxes for "the rich" more than it will cut taxes for "the poor".

    There have been several times in the history of the USA where the overall tax rate was lowered, and tax revenues went up. This is because "the rich" moved money out of tax shelters and started investing it, which grew GNP. In other words, tax revenue went up because government was collecting a lower rate on a much larger amount of money. And "the rich" paid more taxes than they paid before.

    There are some people who view the above as a problem; this problem is called "the rich get richer". Even if the poor get richer also, which confuses me. How will you increase jobs without someone who is rich getting richer? And how does that rich person hurt the poor by getting richer?

    Historically, the US government has not managed to collect more than 19 or 20 percent of GNP in tax revenue. Even when the highest tax bracket was 70% or even higher, revenues as a percent of GNP were not higher than when the highest tax bracket was under 40%. If you think you can fix the USA's financial problems by taxing the rich, you need to explain one of these: (a) why this time it will be different, and the government will collect over 20% of GNP; (b) why GNP will grow faster with higher tax rates; or (c) why the high tax rates will limit the growth of GNP and collect less tax revenue, but it's worth it because it is important to keep the rich from getting richer.

    My own view is that if 19% is what the US government can realistically collect, we should be trying to grow the GNP of the US so that the government is collecting 19% of a larger GNP. That means reducing taxes, regulatory burden, and uncertainty.

    But don't take my word for this; see some references:

    Thomas Sowell: Dissecting The Demagoguery About 'Tax Cuts For The Rich'

    Nick Gillespie and Veronique de Rugy: The 19 Percent Solution

    Disclaimer: I'm either middle class or posibly upper-middle-class, but I am not remotely "the rich" and tax cuts for "the rich" would not directly benefit me.

    steveha

    --
    lf(1): it's like ls(1) but sorts filenames by extension, tersely
    1. Re:Tax cuts for the rich? by Anonymous Coward · · Score: 3, Insightful
      You make some good points. But on the other hand large-scale socio-economic policy is very complicated.

      There are some people who view the above as a problem; this problem is called "the rich get richer". Even if the poor get richer also, which confuses me.

      In principle we should only care about people's standards of living. If everyone is getting richer in the sense that each person has a higher standard of living, that is certainly a good thing! However one problem with the rich getting richer faster than the poor get richer is that it creates a larger social disparity. While we can argue about whether disparity in itself is a moral problem, there are certainly very real problems that result from it. In particular, the massive consolidation of money (hence power) in the hands of fewer and fewer people leads to those people having disproportionate influence in what is supposed to be a democratic system. The end result can be (and history has examples of this) that the rights of certain classes are trampled. In extreme cases the marginalized class, the poor or even middle-class, will actual see their wealth or standard of living decrease at the expense of the upper class. And all this is before even touching issues such as social unrest, crime, etc.

      So, there is logic in preventing one group of people from accumulating wealth too quickly. We have ample enough precedent to know that this process, left unchecked, leads to to over-consolidation, which is immoral and, it turns out, economically inefficient also. (Money is a book-keeping method that requires people to accept it. When the measure of wealth is overly skewed, people stop trusting it or using it. In extreme cases this manifests as revolts, revolutions, and beheading of monarchs.) Wealth redistribution is an ugly business at times, but the alternative -- massive unchecked power consolidation -- is actually worse.

      Having said that, I will return to my original point: these issues are complex. There is certainly such a thing as over-taxation, and such a thing as under-taxation. Determining the optimal taxation level is... difficult.

    2. Re:Tax cuts for the rich? by steveha · · Score: 2

      So, what you're saying is that tax shelters should be closed?

      These "tax shelters" include things like municipal bonds, so it won't be easy to shut them all.

      If you do manage to shut them all, the rich may leave the USA and go to a more tax-favorable country. I hear the Bahamas are nice.

      If you have a plan for preventing the rich from leaving the country, you still can't get them to invest their money effectively.

      You could just take all the money from the rich, but that only works once and may have consequences you didn't anticipate.

      As I understand it, the Ryan plan actually does close many tax loopholes, but at the same time it cuts tax rates. I support this. Companies like GE pay no taxes; it would be better for all companies to pay the same rates, and it would be better for GNP growth if those rates were lower than the current rates.

      steveha

      --
      lf(1): it's like ls(1) but sorts filenames by extension, tersely
    3. Re:Tax cuts for the rich? by Anonymous Coward · · Score: 3, Interesting

      That's just wrong in so many ways. The first, and most fatal flaw is to consider the tax/investment situation as a straight line. It's not. We were more prosperous as a nation in times when taxes were significantly higher, so at the very least, you'd need to consider the possibility that there were local maxima and minima rather than a straight line, or even a simple curve.

      And considering the overall decline of the average American's real earning power over the past decade, it's fair bet that we're not at one of those "sweet spots". Any objections due to temporary distortions can be ruled out - we've been through and/or into at least 2 distinct recessions since the tax rates for the rich were so dropped, and the wealth still hasn't trickled down. Quite the contrary.

      Actually, there's not even a simple "tax rate", especially when you're rich. You do a a la carte, which blows even a complex curve off the map and puts the whole thing into the realm of linear programming. Or in layman's terms "tax shelters".

      We gave away the farm. Worse, we did it at the worst possible time. The time to cut taxes is at the BOTTOM of a cycle, when you know what you can afford to give. Instead, we did it at the TOP, right before the Clinton prosperity era tanked. We did our budgeting based on the naive assumption that things would continue to be wonderful, when in fact, even the best Bush years were pretty feeble.

      "The Rich get Richer", like the related phrase "Nothing succeeds like Success" is just a reflection of the positive feedback that is an inherent part of unregulated cash flow. It's the reason no true "Free Market" can last. Absent regulatory meddling or progressive taxation (same thing), the winners will take over, the losers will go extinct, the middle will evaporate, and the Free Market devolves into Monopoly, where the winners can afford to make the cost of new competitors entering the game prohibitive.

      I don't especially like having MY taxes raised. On the other hand, I was a LOT more prosperous back in the day when a paid a tax rate now considered unthinkable. If that's what it takes, so be it. We've got a lot of people sitting on money and they're refusing to spend it. Having the Government come in and take it and spend it in their own typically inefficient ways may be an ugly solution, but the bottom line is that spending is spending, and doubly-so when the government pays citizens (as it commonly does), instead of foreign outsources whose revenue feedback into the local tax system is minimal. And given that it's pretty much accepted that spending is what it's going to take, someone's got to do it.

    4. Re:Tax cuts for the rich? by Wildclaw · · Score: 2

      How will you increase jobs without someone who is rich getting richer?

      This basically highlights everything that is wrong with the above post.

      Jobs/Production is created by demand. Which is a nice way of saying spending. The rich want to remain rich and get even richer, but by doing so they are not spending and instead dragging whole economies with them.

      The rich simply aren't capable of doing the spending required of them with the current wealth distribution, because saving and getting richer is so engraved in them. And that is why you need to keep a firm hand on the wealth distribution with strict taxes on the rich.

      Anyway, the best short term solution is for the government to put more human and non-human capital into play, by increasing capital taxes while offering a job guarantee.

      In the 1930s a complete job guarantee wasn't possible due to the US still being on a gold standard, but that is no longer a problem. With a modern fiat currency, if people want to save more of your currency, let them, while issuing more instead.

      Depending on how productive the job guarantee programs are, you get more or less inflation. If you don't get much inflation, that means they are doing well and there is nothing to complain about. If inflation goes up, they are doing worse, but the added inflation serves as a direct incentive for those with dollar savings to invest them (which in turn reduces the number of people on job guarantee)

      It is basically a self regulative formula that can be used by any country that owns a fiat currency.

    5. Re:Tax cuts for the rich? by Fned · · Score: 5, Interesting

      There are some people who view the above as a problem; this problem is called "the rich get richer". Even if the poor get richer also, which confuses me. How will you increase jobs without someone who is rich getting richer? And how does that rich person hurt the poor by getting richer?

      The majority of the public has no problem with "the rich get richer". Look at the path of Clinton's approval rating; we were ALL getting richer and it was fucking great, no matter what kind of douchebag shit he pulled.

      What people have a problem with, though, is when the rich get richer but the rest of us get fucking poorer. How the rich have been doing that lately (they've always been doing this, but sooooo much more during the last decade) is by making themselves richer without actually producing anything of value. You don't increase jobs by funneling money into your pocket, you increase jobs by investing in actual enterprises.

      Yes, we have been getting poorer. Average wages haven't been increasing when adjusted for inflation -- unless you make over 100k. But many things have been getting more expensive compared to inflation -- food and shelter, which everybody needs, and for which poor people have to pay a far, far larger percentage of their income.

      It's nice to think that more investment and job creation will be the natural result of lower taxes and deregulation, but recent history is pretty clear: all rich people need to do to get richer, is spend money in a way that accomplishes that. If that means investing in industry, they'll do that. If it means rolling up a gigantic tarball of toxic debt and hot-potatoing it around the marketplace until it crashes the economy, and then run begging to the US government to wash the hands of whoever caught it last, they'll do that, instead. For example, Koch Industries, who fund Reason Magazine, made a pretty penny in 2008 via "contango" oil price manipulation. They got more money, but produced no additional value. They brazenly enriched themselves at the cost of the rest of us.

      Multiply that action by thousands, or hundreds of thousands, and you start to see the path that led us here. Money going upstairs and nothing of value coming down.

      Lower taxes and looser regulation is what we've been DOING FOR TEN YEARS. it's what GOT US HERE.

    6. Re:Tax cuts for the rich? by fearofcarpet · · Score: 3, Interesting

      There have been several times in the history of the USA where the overall tax rate was lowered, and tax revenues went up. This is because "the rich" moved money out of tax shelters and started investing it, which grew GNP. In other words, tax revenue went up because government was collecting a lower rate on a much larger amount of money. And "the rich" paid more taxes than they paid before.

      Three examples from the late 20th century where tax-cuts lead to increased revenues: JFK, Reagan, and Clinton. However, on closer inspection, JFK cut taxes while closing loopholes, citing his own family as an example of how the wealthy evaded taxes. Rich people pulled their money out of tax shelters because that is exactly what JFK forced them to do by closing said loopholes. Reagan's tax cutting lead to a decrease in tax receipts, but they were coupled with deregulations of financial markets (and two subsequent tax increases) that increased revenues overall. This deregulation arguably lead to the creation of bubbles (e.g., Black Monday), which landed in the lap of Bush 1.0 and lead to him raising taxes. Clinton cut taxes as well, but focused them on the middle class, and again tax receipts were not the primary source of growth, it was the Dot Com Bubble, which arguably lead to the 2001 recession at the start of Bush 2.0. Speaking of Bush 2.0, he also cut taxes--dramatically--and passed on a huge deficit and a Carter-style recession to Obama.

      I am not trying to argue with you, nor am I defending the policies of any administration, I just want to point out that the world is vastly more complicated than "cutting taxes increases revenues." Also, American presidents have developed a habit of increasing spending/cutting taxes and using creative accounting/deregulation to make themselves look good, and then passing an economic shit sandwich on to the next administration.

      There are some people who view the above as a problem; this problem is called "the rich get richer". Even if the poor get richer also, which confuses me. How will you increase jobs without someone who is rich getting richer? And how does that rich person hurt the poor by getting richer?

      If the rich get richer faster than the overall economy is growing, then the poor get poorer--either by direct loss or by incurring more debt. I refuse to use a pie analogy, but the economy is finite in size and when it shrinks, those whose wealth increases are by definition gaining at the expense of others. Reasonable People do not have a problem with "the rich getting richer;" they have a problem with the rich getting richer at the expense of the middle class. Again, not trying to pick a fight, just trying to contextualize your question.

      Disclaimer: I don't even live in the US; I make my modest income in Euros in a country with a 50% income tax rate and a 20% sales tax.

      --
      Actually, I wrote my thesis on life experience.
    7. Re:Tax cuts for the rich? by minstrelmike · · Score: 2

      There is an inflection point. Lowering taxes at some point results in lower overall money to spend on government programs (such as patents, copyrights, roads, bridges, and contract law courts--all vital for business interests).
      If trickle-down economics truly worked, Mexico would not be an economic basket-case.

  23. Re:how about just make the rich pay their fair sha by scruffy · · Score: 2
    It is a flat-out lie that the poor do not pay taxes.

    The lie comes from focusing on only one tax from one level of government.

    This link http://gregmankiw.blogspot.com/2009/02/tax-rates-for-rich-and-poor.html shows the effective federal tax rate:

    From a recent CBO report http://www.cbo.gov/ftpdocs/98xx/doc9884/12-23-EffectiveTaxRates_Letter.pdf, here are effective tax rates (total taxes divided by total income) for 2005, the most recent year available:

    Lowest quintile: 4.3 percent
    Second quintile: 9.9 percent
    Middle quintile: 14.2 percent
    Fourth quintile: 17.4 percent
    Percentiles 81-90: 20.3 percent
    Percentiles 91-95: 22.4 percent
    Percentiles 96-99: 25.7 percent
    Percentiles 99.0-99.5: 29.7 percent
    Percentiles 99.5-99.9: 31.2 percent
    Percentiles 99.9-99.99: 32.1 percent
    Top 0.01 Percentile: 31.5 percent

    For state and local taxes,http://www.itepnet.org/whopays3.pdf shows that lower income pays a higher tax rate (11%) than higher income (7%).

  24. Re:Biting the hand that feeds them by Bowling+Moses · · Score: 4, Insightful

    "A lot of companies would like to put money into R&D however the Scientific community tends to shun Private Enterprise as the evil daemon."

    That's not the case. Or to clarify for some departments this is not the case, for instance engineering departments have long been heavily funded by private enterprise. In the life sciences it used to be that you didn't go after private money; there wasn't any as biotech's really only been around since the 1980's. However the competition for academia's traditional funding sources (federal agencies like the NIH and NSF) has gotten...untenable. NIH grants were designed for about a 30% success rate: about one applicant in three won a grant. So if you were competent you could keep your lab running by getting a grant on your first or second try and have overlapping grants. Rarely did someone get laid off or projects interrupted due to lack of funds. Now grant success rates are typically half what they were, and success rates in the single digits are increasingly common. Academic researchers are increasingly at risk of losing their jobs, projects get side tracked by the desperate and continual writing of grant proposals. This has been the trend over the course of my career starting in the late 90's and there is no end in sight. The traditional funding sources in the life sciences are no longer something you can depend on to keep your lab running, so you look elsewhere. There is pressure on academics to get patents on their discoveries, to form start up companies, and to form partnerships with private industry. This started before I did, and was merely uncommon by the time I entered grad school. Now it's everywhere and a decent patent is worth more to an assistant professor up for tenure than a Nature paper.

  25. Re:how about just make the rich pay their fair sha by dkleinsc · · Score: 5, Interesting

    the rich benefit disproportionately from government services, they should pay their fair share for them.

    So to you, "fair" is that out of 10 people, 1 person pays almost the entire bill, 4 people pay a little bit, and the remaining 5 pay nothing at all? On top of that, those non-paying 5 people are the ones consuming most of the benefits! This all seems "fair" to you?

    Yes, it's completely reasonable, for 2 main reasons:
    1. Trying to get anything out of the non-paying 5 is about as effective as trying to squeeze blood from a stone. They don't have the money, that's why they aren't paying. Trying to get anything more from the chipping-in-but-still-not-huge contributors also is hard to do right now.
    2. The guy who's paying almost the entire bill has the ability to make the rules about who gets what.

    The other issue is that once you take away the silly analogy of a country with 10 people in it and get back in reality, you discover that your numbers are misleading at best: The groups you've described only apply to income taxes, and ignore all other kinds of taxes (most notably payroll taxes). And the 1 guy with a lot of cash is paying about 70% of the total bill, not "almost the entire" amount.

    The alternate analogy here: Imagine 10 people living in a house with a roof that needs $20K worth of repairs. 1 person makes $100K, 4 people make $50K, 2 people make $15K, and 2 people make nothing. How would you going to come up with the money to pay for it? Would you kick out the people making nothing, knowing that they have nowhere to go and will likely die of exposure or starvation once winter comes? Would you try to ignore the need for repairs until the roof collapses?

    --
    I am officially gone from /. Long live http://www.soylentnews.com/
  26. Age of Austerity for Whom? by Nethemas+the+Great · · Score: 2

    It might be the coming of the age of austerity for the west but that certainly isn't true for the east, at least not for China. Pick a discipline, any discipline and you will find evidence of China waxing where the western world (mostly read the US) is waning. If people think the west (also read mostly the US) can continue to dump countless billions of dollars into the money pit known as the middle east through our wars, through our relentless thirst for petroleum, while stripping every last drop of resources from education, basic research, technology research, social services, infrastructure, etc. and still survive as anything other than a crumbled husk of a world power they are terribly mistaken.

    --
    Two of my imaginary friends reproduced once ... with negative results.
  27. Re:how about just make the rich pay their fair sha by suomynonAyletamitlU · · Score: 5, Insightful

    The rich benefit disproportionally from stability. Put it this way: How much happier is each segment of the population living here than any backwards place in the world with little police and poor sanitation?

    The rich have everything to lose; they are usually making their money from large businesses that could suffer or fail entirely without police, without the sanitation necessary for cities, and without fairly stable government (taxes, property ownership/deeds, etc). If they lived in a place like that, a huge number of costs would appear--armed security guards, bribes, custom-built sanitation, etc. Oh, there would still be rich people, as indeed there are, but they'd almost certainly be terrified every day that organized crime may come knocking on their door and take away their money, their children, their goods, or their lives. Compared to that, taxes are a percentage of their income. Where would you live?

    The middle-income (who are generally tradesmen) benefit a great deal, because they depend on people paying them fairly for their knowledge, their ability, or their goods, but they are not balanced on the edge of a knife. They aren't extremely obvious targets, but they'll probably deal with a certain number of criminals every year. They probably know how to, or have the resources to, acquire sanitation, but it's on a personal/familial scale, not distributed across an entire company's holdings. In general, they probably prefer to live wherever they were born, because they know the ins and outs of the place.

    Poor people in first-world countries have to work every day, may hardly get breaks, are treated poorly, live in crappy housing, and if they're stuck with a knife, often there's not a lot that people will do. They have it better than poor people in third world countries, but how much better? Especially when they're taxed for the luxury of living in your country--which will be robbing them of purchasing power that they may desperately need?

  28. Re:yea uhhhh by Stem_Cell_Brad · · Score: 2

    Private enterprise, as much as the left wing hates it, knows when and how to cut research that is a dead end.

    Research is the discovery of unknown. One never knows when it will lead to a "dead end". If one knew, then it would not be discovery.

    Private enterprise has a goal of solving a problem for profit. This can be quite different from government funded research in an important way because it restricts the potential for discovery.

  29. Re:how about just make the rich pay their fair sha by Daniel+Dvorkin · · Score: 5, Insightful

    out of 10 people, 1 person pays almost the entire bill, 4 people pay a little bit, and the remaining 5 pay nothing at all

    This is a classic Big Lie, which has been repeated so often that not only does the right wing now treat it as gospel, but the left wing is starting to let it slide in debates. In reality, when you look at the total tax burden (not just the narrowly defined "federal income tax," which does not include the FICA taxes that everyone with a paycheck pays) of federal, state, and local taxes, poor people pay an equal or higher percentage of their income in taxes than rich people do. You can argue all day about whether you think this is a good thing or not, but as the saying goes, "Everyone is entitled to their own opinion, but not to their own facts."

    --
    The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  30. Re:yea uhhhh by Grishnakh · · Score: 4, Informative

    Government doesn't ever realize a black hole of research because the researcher will always say "A break through is immanent", just to get the next grant for the next ten years, until he can retire. Private enterprise, as much as the left wing hates it, knows when and how to cut research that is a dead end.

    Wrong. Private enterprise simply doesn't invest in research, unless it's something that's basically a guaranteed win that'll return a profit in 5 years or less. Private companies never do fundamental research, because it costs too much and if it does result in profit, it won't be for decades. Companies used to do more of this, back in the 50s-60s, but look at one of the main companies that did this: Bell Labs. Bell was a giant telecom monopoly that had to spend some of their money on something that looked good so government regulators wouldn't mess with them, so they created Bell Labs and put a bunch of people to work chasing their dreams and inventing Unix and C.

    The days of a single telecom monopoly are gone, and I don't think anyone wants to return to the days of being required to lease your phone at a high price and pay by the minute.

  31. a serious concern by Goldsmith · · Score: 2

    Cuts happen, it's just the way it is, stupid or not. There are a few things we could do to actually improve the research infrastructure in the country and get more out of the money we do have.

    Primarily: stop giving out grants, move everything to industry style contracts. It's time to recognize that industrial research labs and academic research labs are operating on the same level. This does a few things: it allows the government to specify public ownership of research results (right now Universities keep their IP and defense contractors do not... odd, yes?), second, it leads to the normalization of lab pay. If you're on a contract, you should be paid the professional rate. Graduate tuition is simply academic administrators picking the government's pocket, things need to move to the cost plus fee model used in industrial contracts. Under a contract, that money would be moved over toward salary and benefits instead, a very good thing. A school could continue with the myth that their "students" are part time workers who require large amounts of "training", but then a government contracting officer could actually require proof of that statement, and details of the "training" being done.

    Another thing that would help would be an acknowledgement that not everyone is cut out to run a lab. Long term research positions for people with PhDs should be viable career options rather than "spouse" prizes. There are many, many people out there who are great researchers and great team leaders, but can't write a grant to save their life. We still want those people to succeed at research.

    Ok... long enough... essentially, anyone who tells you there isn't waste/fraud/abuse in scientific funding is full of BS, we can still do a lot better. If we're not willing to try to improve, we're going to keep losing money.

  32. Re:Biting the hand that feeds them by Genda · · Score: 2

    I'm sorry but that's just plain mistaken. The modern university hoards the results of it's researchers as a means to fund their own bottom line and they are every bit as much pandering to Corporate interest as any other industry today. Corporations have cut research spending because they have become myopic and obsessed with quarterly earnings. The idea of investing any significant amount for the possible long term benefit to the company or humanity in some distant future is a quaint idea from some distant past that would get a modern CEO shot before the sun rose. What you say may have had some resonance 30 years ago, today the simple truth is major universities are just another corporate whore looking for their slice

  33. Spending on Research by fearofcarpet · · Score: 2
    I can't believe no one has posted this yet: http://www.phdcomics.com/comics.php?f=1305

    You could cut all funding for scientific research or 10% from Defense. In the former cause you would decimate the American university system, and the economy as a whole. In the latter case you might have to do without the Joint Strike Fighter (the total cost of which is ten times the entire research budget) or about four nuclear subs. In neither case would you even put a dent in overall spending. A bit more perspective: federal spending on research is equal to approximately %30 of the amount paid for interest on the National Debt.

    Fighting over rounding errors in the budget like funding for research, the top income tax rate, education, etc. is simply another way to divert attention from Defense and Health and Human Services, which are by themselves larger than the economies of many countries.

    --
    Actually, I wrote my thesis on life experience.
  34. wrong by t2t10 · · Score: 2

    Many big companies used to invest in long term research, and some still do: IBM, Google, Microsoft, Xerox, Nokia, and others. In addition to their own research labs, they also have been paying for university research, gave scholarships, collaborating with researchers, participating in the scientific community, etc.

    A company that hasn't been doing any significant research in 15 years is... Apple. All Apple ever does is suck up other people's research results and computer science graduates, charge inflated prices to students, and write inane patents.

    If Apple's irresponsible business model catches on (invest everything in marketing, design, and lawyers), there isn't going to be a US computer industry in a decade or two.