Category Archives: Business

What causes innovation? is it worth it?

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Innovation is the special sauce that propels growth and allows a country to lead and prosper. The current Nobel prize believe that innovation powered the Industrial Revolution, causing England to become rich and powerful, while other nations remained poor, weak, and stagnant. Similarly, Innovation, they believe is why 19th century Japan rose to defeat China, and propelled China’s 21st century rise. But why did they succeed when others did not. What could the leader of a country do to bring power and wealth through innovation. Improved education seems to help; all of the innovation countries have it, but it is not the whole. Some educated countries (Germany, Russia) stagnate. An open economy is nice, but it isn’t sufficient or that necessary: (look at China). That was the topic of this year’s, 2025 Nobel prize in economics to Mokyr, Howitt, and Aghion, with half going to Joel Mokyr for his insights, historical and forward looking, the other half going for economic modeling. I give below my understanding of their insights, more technical than most, but not so mathematical as to be obtuse the normal reader..

The winners hold that innovation, as during the industrial revolution, is a non-continuous contribultion caused by a particular combination of education and market opportunity, of theoretical knowledge, and practical, and that a key aspect is depreciation (destruction) of other suppliers. Let’s start by creating a simple, continuous function model for economic growth where growth = capital growth, that is dK/dt. K, Capital, is understood to be the sum of money, equipment, and labor knowledge, and t is time with dK/dt, the change in K with time modeled as equal to the savings rate, s, times economic activity, Y minus a depreciation factor, δ, times capital, K.

growth = dK/dt = sY − δ K.

Innovation, in the Howett model, is discontinuous and accumulative. It builds on itself.

For the authors, Y = GDP + x, where x is the cost of outside goods used. They then claim that Y is a non-linear function of K, where K is now considered a product of capital goods and labor K = xL and,

dY/dK = AKα + γ where 0< α <1, and where γ is the contribution of innovation and/or depreciation. The power function, as I understand it, is a mathematical way of saying there are economies of scale. The authors assume a set of interacting enterprises (countries0 so that the innovation factor, γ for one country is the depreciation factor for the other. That is, growth and destruction are connected, with growth being a function of monopoly power — control of your innovation.

According to the Nobel winners, γ is built n previous γ as shown in the digram at right. It can not be predicted as such, but requires education and monopolistic power. The inventor-manufacturer of the typewriter has a monopolistic advantage over the makers of fountain pens. Innovation thus causes depreciation, δ K as one new innovation depreciates many old processes and products. If you add enough math, you can derive formulas for GDP and GDP growth, all based on factors like A and α, that are hard to measure.

GDP = α(2α/1−α) (1-α2)A L,

Thus, GDP is proportional to Labor, L and per-capita GDP is mostly an independent function related to economies of scale and the ability to use capital and labor which is related to general country-wide culture.

The above analysis, as I understand it, is in contrast to Kensyan models, where growth is unrelated to innovation, and where destruction is bad. In these Kenysean models, growth can be created by government spending, especial spending to maintain large industries with economies of scale and by spending to promote higher education. The culture preferred here, as I understand is one that rewards risk-taking, monopoly economics, and creative destruction. Howitt, and Aghion, importantly codify all this with formulas, as presented above that (to me) provide little specific. No great guidance to the head of a country. Nor does the math make the models more true, but it makes the statements somewhat clearer. Or perhaps the only real value of the math is to make things sound more scientific see the Tom Lehrer song, Sociology.

This insight from movie script by Grham Green suggests to me that progress may not be the greatest of advantages, perhaps not even worth it.

This work seems more realistic, to me, than the Keynesian models Both models are mathematically consistent, but if Keynes’s were true, Britain might still be on top, and Zambia would be a close competitor among the richest countries on earth. Besides these new fellows seem to agree with the views of Peter Cooper, my hero. See more here.

Writing all this reminds me that the fundamental assumption that progress is good, in not necessarily true. I quote above a line that Orson Wells, as Harry Lime, ad-libbed for the movie, “The Third Man.” Lime points out that innovation goes with suffering, and claims that Switzerland had little innovation because of its stability. Perhaps then, what you really want is the stability and peace of Switzerland, along with the lack of domination and innovation. On the same note, I’ve noticed that engineering innovators often ruin themselves dining in ruin, while the peaceable, stable civil engineers live long pleasant lives of honor.

Robert Buxbaum, November 16, 2025. A note about Switzerland is that was peaceful and stable because of a strong military. As Publius Vegetius wrote, Si vis pachim para bellum (if you wish of peace, prepare for war).

The shutdown will drag; we will win

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In theory, both US parties are committed to a balanced budget. Both claim they’ll tax as much as they spend, and we’ll pay our debts. In practice, both parties overspend wildly, year after year. The growth in non-defense spending (pork) is particularly egregious, see graph. For fiscal 2024, the 12 month period ending Sept. 30 2024, the government spent $6.75 trillion ($6750 billion), over 20% of GDP and 37% more than the $4.92 trillion we took in in taxes ($4,920 Billion). The difference, $1830 billion, was added to the national debt, already at $34 trillion, pushing it to $36 trillion, that’s more than 100% of our GDP. The interest cost alone is $1.22 trillion per year, 1/4 of our tax income.

Trump campaigned claiming he was going to balance the budget, but he has not (yet). There were some attempts via DOGE, saving about $214 billion, but the DOGE boys were outed, attacked, and gave up. And now the Democrats have forced a shutdown, using their power to prevent additional borrowing. This leaves Trump with a choice, either balance the budget or accept their spending demands. The expectation is that Trump will fold: there is no way he can find $1830 billion/year. Otherwise, many of the governments 4.2 million workers will go without pay, and many important services will stop.

So far, three weeks in, Trump seems fairly successful at keeping most things running while trying to balance the budget. Even if he fails, as seems likely, we will benefit from the attempt, I think.

Some government services are guaranteed to continue despite the shutdown: Social security and the post office because they are funded separately. Similarly, the patent office, the ports, and the airports. In the past some had to shut, but Trump has raised fees so they remain open and operating.

Essential workers, 800,000 people including customs agents and air traffic controllers continue working with most going unpaid. Trump committed to paying active duty military and for the WIC food program using money raised by new, 2025 tariffs. Tariffs are currently bringing in ~$300 Billion/ year, and so far tariffs mostly don’t affect ordinary folks, and help return manufacturing to the US. Some time soon we’ll have to pay the necessary workers and also some 750,000 non-necessary employees including: half the Dept. of Education, most of NASA and Energy.. They are not really useless, but are doing nothing essential to the day-to-day operation of the country.

Trump seems committed to removing many non-necessary workers in an effort to streamline and balance the budget. He fired 4200, bought out another 25,000 earlier this year, and has issued pre-termination notices to 75,000. A federal judge has blocked all firings as unlawful, but my sense is they are quite lawful and mostly beneficial. If you can’t fire non-working, un-necessary workers that you can’t afford to pay, who can you fire?

I suspect the shutdown will last well into November, well past the election, and that more folks will be fired or bought out. The key November crossroads will be food stamps, SNAP. These benefits are scheduled to end November 1 baring an end to the shutdown. Normally the bill is $110 billion/year, but Trump has eliminated benefits for illegal aliens and asylum seekers, and has instituted tougher work requirements. Democrats seem certain that Trump will fold. For the 11th time they scotched a bill to fund this and reopen the government and pay SNAP. I suspect that, at the last minute, Trump will find savings, or left-over funds and will keep SNAP funded through November.

Among the new savings, Trump ended the EV subsidy last month, saving about $7.5 billion/year ($7500 x 1 million EVs), and has negotiated some reductions in drug costs. He also increased the tariff on some Chinese and Canadian goods appropriate for rectifying trade imbalance, it’s been blocked by a federal judge. He’s also cancelled some rail work and research, saving $28 billion, and cancelled $20 billion for hydrogen hubs, and 83% of USAID. Also two navy ships that were years behind schedule and billions over budget. We need the ships, but don’t have the money. So far, this saved enough to pay all military servicemen.

Beyond this, I hope he cuts Biden’s high speed rail plans: $550 Billion for fast trains, Chicago to Seattle, Detroit to Toledo, San Francisco to LA, etc. The investment is $1,500 per person in the US. The eager thinkers overseeing this would never invest their own money, but are happy to invest everyone else’s. I also hope to see the end of NASA’s SLS rocket to the moon, nice but far more expensive than Falcon. We could also cancel some F35s ($0.1 Billion each to buy, and far more to maintain). Musk suggested replacing them with drones. I don’t know that these savings are enough. I don’t know how long we can continue, but each day shut, we move closer to a balanced budget, and that’s a good thing.

Robert Buxbaum, October 21, 2025

The logic to think that prenatal Tylenol causes autism and ADHD

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Robert Kennedy Jr. recently started the process to add a warning to the labels of acetaminophen products, including Tylenol, noting a correlation between its use during pregnancy and autism and ADHD in children. The advisability of this is controversial. Experts at Scientific American say “the evidence against Tylenol is thin,” The British Journal, Nature, went further: “It’s Dangerous to Avoid Tylenol While Pregnant”, reversing its call for caution. Similarly, Barak Obama: “Trump’s announcement is violence against the truth.” Nature’s current logic is that any risk of Autism and ADHD is smaller than the risk if pregnant women do not take fever medication. Given the confusion and politicalization of the topic, I thought I’d write about the magnitude of the risk, and the logic to think Tylenol causes autism and ADHD.

The evidence that there is some, large risk agent is the tremendous rise in the prevalence of autism and ADHD over the last 50 years, see chart above. The rise t matches the rise in the use of Tylenol as opposed to older medications, like aspirin. Correcting for other changes (confounders), this Oxford study finds 95% certainty association of acetaminophen with ADHD; care being taken to remove confounders.

In terms of the magnitude of the Tylenol effect, this study from Johns Hopkins, compared fetal blood levels of acetaminophen enzymes (measured in the umbilical cord) to the risk of autism and ADHD. As shown below, there is roughly a three-times increase in risk for both in every sub-group of child: male and female, black and white, pre-term and full term, drug user or not, breast fed or not, fevered mother or not. Children with higher blood-acetaminophen levels (2nd, 3rd tercile) always have a higher chance of ADHD and ASD — about 3 times higher– than children in the lower tercile.

The higher cohorts of blood Tylenol is associated with higher risk of ASD and ADHD for every subgroup.

This European study found a similar association, but measured Tylenol use based on interviews. Between these studies, I find it reasonable to advise caution. This is the sort of evidence that caused us to put cancer warnings on cigarettes, caused us to caution against alcohol during pregnancy, and caused the mandate for seatbelts. This is usually what scientists use, it’s the best approach we have. I do not suggest dropping all fever medication, but suggest switching to older medications, like aspirin, or cool showers, or following the Harvard medical journal advice to take Tylenol in the minimum dose.

An upside to the political divide is that we’re likely to have better evidence in coming years. in Republican-leaning states, doctors have mostly favored the advisory. Meanwhile,in D-leaning states women are ignoring the advisory, some even filming themselves taking extra Tylenol, in distain for Trump. These two groups provide a controlled study, so that we should have have better data regarding Tylenol safety in 2-3 years.

Dr. Robert E. Buxbaum, October 12, 2025.

Added Oct. 20,2025: A cynical counter argument to the above, suggested by me ten years ago and others, is that there is no spike in ADHD, that it’s a scam perpetrated by teachers who prefer drugged students to antsy ones. If so, one could argue that the same genetics that make students antsy (ADHD and semi autistic) also affect Tylenol metabolism and use: Parents of such children take more Tylenol. Here is a good Swedish study that supports this view. If this proves to be true, the real scandal is how many normal students, mostly boys, have been drugged up and mis-educated.

Thomas Kuhn, and why half of America loves/ hates Trump

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This post was inspired by articles like the one below asking how it was that some Americans, MAGAs think Trump is good when everyone of value sees him as a fat, bigoted, criminal clown. The Atlantic’s answer is they’re detached from classic ideals of good or moral, and are now fueled by “narcissism, fanaticism, and authoritarianism”. I thought a more helpful explanation was that we’re going through a paradigm shift, perhaps progressing in our thought of what it means to be good.

Consider Thomas Kuhn’s analysis of scientific progress. Tomas Kuhn was a major American Philosopher of the 1960s-70s who claimed that science progress was not uniform but included long periods of “normal science” punctuated by change. A “crisis” leading a “Revolution” resulting in big changes in language, outlook and thinking, a “paradigm shift”. In the midst of these scientific revolutions, the experts of the old system fight bitterly against the new while being confounded by the fact that it seems to work.

Consider the resistance to relativity and quantum mechanics. Before 1905 the experts were doing fine: Professors taught and students learned — formulas, tools and techniques were handed over. Educated had respect and money, and could communicate. There were some few contradictions, as in why the sun burned hot, or why the sky was blue, but one could ignore these. You knew who the experts were, and they didn’t include Einstein, Bohr, Pauli, Plank.

Democrats sell red hats and buttons with Fascist or Felon because Trump’s red MAGA (Make America Great Again) hats work for him.

But then came a few more problems, (inconsistencies in Kuhn-speak: radioactivity, photoelectrons, the speed of light… Einstein published on them in 1905, thoughts that few took seriously: imaginary time was a fourth dimension at right angles to the others, etc. The explantations seemed mad and for 14 years after he published, Einstein could not get a university job — anywhere. By 1919 detailed experiments suggested he might be right on a lot of things. It lead to the rise of a new group of experts plus a loss of esteem for the old, and a bunch of crank explainers who were neither but flourished in the confusion.

Hate abounded; new weapons and cures WWI removed aristocrats and beards. A popular book a lecture series of the time was “100 scientists against Einstein.” There followed a lost generation with no clear foundation. It took 50 years to resolve confusion, but there developed new thought leaders, a new language, new standard formulas and books were sold, and we were returned slowly to “normal science” in a new thought paradigm.

I see the conflict of opinion surrounding Mr Trump as a crisis in political thought similar to the crisis in science thought 100 years ago. Polite discourse if gone, replaced by stunts and insults. The government is currently shut, with 40% federal workers, those whose jobs are non-critical, on unpaid leave. It’s a collapse, not of morals, but of language. Trump hopes to use the shutdown, I think, to show that most of these 40%, are not needed. If they are not needed, it reflects a big lack in government — actually a big bloat in government. You can see why the opponents of cuts see Trump as a fascist who uses “dog whistles” to motivate “his base”, there is a lack of communication and a fear Trump may be right too, I think. The experiment in smaller government is being run as I write, and Trump seems confident that some 400,000 federal workers are not needed. Are they? Instead of debating, we’ve got to violence: two attempts on Trump’s life so far, the main college debater, Charlie Kirk, shot dead. Appropriate, I think, is Bob Dylan’s, “Times are a-changing” and “something is happening here, but you don’t know what it is, do you, Mr Jones.”

Other questions are being worked out as we speak -sending chills through the old order: Are China and Europe “ripping us off,” by free trade and stolen technology? Are tariffs an answer. Canadian and European leaders deride these thoughts openly, but I notice that both Canada and the EU have put heavy tariffs on Chinese goods.

Another issue is respect for experts. The Atlantic bemoaned that Trump supporters don’t respect experts on health, climate, and education, but perhaps they are lying. The seas have not risen as expected. Some warming may be good, or better than the remedies. Even if RFK Jr.’s ideas are wrong it seems that science has become unreliable (irreproducible), and that elite colleges aren’t fair in their assessment, nor do they provide great value.

Eventually things will settle down; we will some day have polite discourse. In 40-50 years, I suspect we’ll agree that some tariffs are good and that Trump’s tariffs are either to high or low, We’ll think that the climate push to no nuclear power, was a mistake, as was the giant, Ivanpah solar farm). And we’ll be able to discuss it civilly. I hope the change in thought takes less than 50 years.

Robert Buxbaum, October 3, 2025 – we are now entering another physics crisis too, I think.

Purifier delivered to customer for muon-catalyzed fusion

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I got my PhD in the engineering of nuclear fusion reactors (Princeton 1982). The most common version of these reactors use magnetic confinement. Rare isotopes of hydrogen are held in a magnetic bottle at 300 million °C (30 KeV), reacting to produce helium, useful energy, and a neutron. The magnetic bottle and high temperatures are necessary to overcome the repulsion between the hydrogen atoms at the distances necessary for nuclear fusion.

A customer of ours is building a different type of fusion reactor, without high temperatures or a magnetic bottle. They replace a few electrons of the hydrogen with muons — particles that are like electrons, but weigh about 207 times more. Hydrogen fusion is quickly catalyzed, as described in an earlier post. The muons recirculate to catalyze more until they decay or are trapped by an impurity, often helium. 

Our company, REB Research, just shipped a specially made, hydrogen purifier tailored to remove the impurities in this process. Another aspect of the purifier design is that it minimizes radioactive tritium leakage, something that happens when hydrogen (tritium) diffuses through metals. We wish them all success, and wish success to our other fusion customers as well. 

Robert Buxbaum, September 30, 2025

Korean movies and music; my thoughts on why they do so well

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A Korean animated movie, K-Pop Demon Hunters, KPDH, just broke all-time record for most watched movie in the History of Netflix. It’s only 92 days old, and not a big-budget film with massive marketing, but it’s had over 314 million views so far, appearing on the most-watched list in 32 countries. Some Chinese movies have had more views, but these tend to be specific to China, with limited appeal elsewhere. KPDH has three songs in the Billboard 100 too, including golden at no.1, see official music video, 352M views for the music video. The last movie to have three songs in the Billboard top 100 was Saturday Night Fever, some 45 years ago. Other top Korean groups include Stray Kids, BTS, and Black Pink, they’ve had multiple #1 songs world wide of the last five years, and fill 50,000 seat stadiums regularly with seats going for $150. Here are Black Pink, filling a 50,000 seat stadium in Paris. If you read the US press, you’d hardly know these groups exist. BTS had a big hit during Covid called, “Permission to Dance,” a positive song during that grim period, danced e.g at the UN. Listeners noticed, the press did not. I think the press finds Koreans “anodyne”, that is, insipid.

Top movies of the last 20 weeks include two Korean offerings, Squid Game and K-Pop Demon Hunters

One thing that turns off the US press, is that Korean songsters and movies are less sexual, and less politically moralizing. The top Oscar awards go to political movies. At the Emmies, this year, we were told, “F*ck ICE, Free Palestine.” Similarly, Green Day, Eminem, and other western bands lead chants of F*ck Trump. The press takes this moralizing as intellectual, but I find it cheap and suspect it turns off many potential fans.

Director of Star Wars, Kennedy, promoting diversity.

A favorite moralizing of US movies is to show women who don’t need or want men. Frozen was like that, as was Encanto, Last Dragon, Moana… Star Wars was a top franchise that Disney made more feminist, writing basically every man as bad. Women were good, powerful, and inherently talented. Rey a main new character, grabs a light saber with no background or training, and uses it like an expert. It turns off men, then women stayed away too.

End kiss of Pirates of Penzance, the pirate prince and the major general’s daughter

We like to show black actors in white rolls too, though not white actors in black rolls. Hamilton was successful, and had black actors playing in every positive roll, white actors playing evil idiots. It was done again with 1776, less successfully. All the founding fathers are cast as women; Jefferson is black, bisexual, and pregnant. There’s a message somewhere. The upcoming movie about King Gustaf of Sweden has a dark-skinned actor playing the king. Why? We had a dark- skinned daughter of the major general, who bends the pirate over to kiss him, a dark skinned Snow White with most of the Dwarves normal height, a female She-Hulk, stronger than the original, who lectures the original (and us) about anger. Apparently, the idea is to highlight the difficulties powerful women face. Korean shows have casts that make sense to the plot, and no gratuitous reversals or sex. Did Oppenheimer need the many sex scenes? Did the suicidal love interest have to be written stronger than the main character?

Then there are the sequels: the Marvel universe includes 37 interconnected movies, Star Wars, 19, Batman 13. To get the full story, you have to see them all. So far, in 2025, only two of the major funded movies were original (one was Korean, Mikey 17). The others are all reboots or sequels with recycled plots and ever-bigger explosions. It all works until it doesn’t, then they make a reboot. Law and Order, 26 years old with 500 episodes.

Scene from Crash Landing on You. These two are in serious trouble.

Korean entertainment has series too, but much shorter and with fewer explosions. A TV series will have only 16-24 episodes and I’ve yet to see one with a mass-murderer. The Squid game, has had 13 episodes over 3 seasons. Some deaths, but not wholesale. A longer series, “Crash Landing on You,” 24. In it, a successful South Korean executive (female) is blown across the border to North Korea into the arms of a handsome, North Korean. No deaths. They could have gone on for years, but didn’t. People rewatch the original.

Other countries movies moralize too, like ours do, but they tend to be patriotic moralization, and anti gratuitous violence, not violent, anti-patriotic as in the US. Chinese TV shows present Chinese politicians as honest, they have praise for the Chinese schools and infrastructure, and regular invocations to respect the police. India moralization is similar, but more towards family order. Korean messages are in-between, with some crooked politicians, some violence, people with mental or emotional problems who evolve.

Robert Buxbaum, September 17, 2025. The industry has pushed back against criticism of their wokeness, claiming that the only folks turned off are the toxic fans: white, MAGA men, mostly, who hate diversity. They claim to be happy when such fans stay home and watch KPDH, or go buy $150 tickets to see Koreans sing in Korean.

Tariffs on German cars are inflationary, but not for you.

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As things stand, the major export of Germany to the US is high end cars: Mercedes, Audis, Porsches, BMWs, $100,000+ on average. The lower end models are made in the US, Mexico, and Canada. These high end cars are the biggest profit centers of their makers and of the German economy. Currently, they face an import tax (tariff) of 15%, the same as everything from Germany (or Italy or Japan). Liberal economists are furious at this; they claim it’s a tax and that it is inflationary. They are right on both counts except that this is only a tax and inflationary for the few Americans who buy new, high end cars.

The Americans who buy such cars are typically rich folks — poor and middle class folks can’t afford them. They are also folks with ‘taste’, folks who need a BMW, and would not be caught dead behind the wheel of a US car. Normally liberal economists would favor taxing such people, but these are often the who hire economists. They run the TV programs and newspapers, universities and hedge funds. They choose the economists and the economists are eager to see things their way.

Another high tariff item imported from Europe is art. Modern art for $1 million dollars that ends up in museums. For the average Americans the tariff on this, or on art is irrelevant or beneficial. The income it generates is used to offset other taxes, allowing Trump to remove the tax on tips, for example. That this tariff falls on rich people and replaces a tax that otherwise fell on poor workers. Liberal economists should favor of this, but their opinions are not their own.

A side benefit of these tariffs for ordinary folks, is that that they cause some buyers to switch to American-made products, cars and art. Perhaps not for themselves, but for for their children. They may buy a German car made in the US, rather than one made in Germany, or art from an American. This provides jobs for US workers — and an opportunity for Detroit to retool for the future. Detroit auto workers seem to understand this; they voted for Trump in 2016 and 2024. Detroit’s union leaders opposed tariffs. In Michigan, the union leaders get their power mostly from MI politicians, Democrats, who force union membership.

This is not to ignore the suffering of those who buy foreign products, the buyers of new BMWs, or French cheese, or high end art. As things stand, Columbian coffee is tariffed at 10%, and that may add 50¢/lb. Mexican coffee is not taxed, but many average Americans prefer Columbian. I hope they can be consoled by Trump’s tax breaks.

Some months ago, Trump showed off a tariff schedule that he considered ideal, with rates targeted to reduce our trade deficit by half. I derive here, Trump’s formula and rates, and give my opinions of the target. By the formula he presented, the EU tariff should be higher than it is, 20%. Trump has it at 15%, I think, for diplomatic leverage, to goad the EU into lowering their tariffs on us goods, now 15%. He’s also pushed them to spend more on defense, and pushed to end the war between Cambodia and Thailand. He threatened them with near 100% tariffs if they didn’t stop fighting.

Robert Buxbaum, September 2, 2025. Here’s a Bob Dylan song, union sundown, making a musical case against free trade. Once upon a time that was a liberal view. Now not. The NY appeals court ruled to block Trump’s tariffs to stop the horrible damage being done. My guess is the judges drink high-end coffee, eat French cheese, and drive new, German cars.

Trump’s temporary (permanent?) peace between Thailand and Cambodia

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Four weeks ago, Trump managed to pause (perhaps end?) a century long war between Thailand and Cambodia that had flared up with F16s, rocket attacks, drones, invasion, and hundreds of dead. He did it by threatening to block trade with both countries if they didn’t sign a ceasefire. Within the day, they did. Perhaps, all they needed was a good excuse to stop fighting. The peace has lasted four weeks, though nasty words continue to flow. Some 70,000 Buddhist monks are very appreciative.

Malaysian PM Anwar Ibrahim (center) hosted the peace talks in Putrajaya as chairman of the Asian regional block, Official Photo.

Thailand and Cambodia have had had significant empires with overlapping land claims going back to the days of the kingdom of Siam and the collapse of the Khmer empire. A peace treaty was concluded between 1904 and 1908, but it involved ill- drawn, conflicting French maps. Several major Buddhist temples are in the disputed areas; they appear to be part of Siam in the earlier map, but part of Cambodia in latter documents. Siam complained weakly about the later documents, perhaps signaling accent, or signaling that they had the weaker army.

The problem festered this way until WWII when Siam allied with Japan and took back the territory it claimed, plus some more. After Japan lost the war, French Cambodia took back the territory, but Siam / Thailand re-armed and re-took in when the French left. It didn’t help Cambodia’s claims that it collapsed into a rein of terror under the Khmer Rouge. As things stand, the International Court of justice favors Cambodia’s claims. Then again Thailand now has the larger army, and has used it to occupy the disputed areas.

Buddhist thank Trump for peace request he gets the Nobel Prize. Photo from USA Today. Sometimes all it takes is a hard push.

A May-July, 2025 flareup in fighting resulted in about 200 dead and/or captured, mostly in the area of the historic temples, plus 135,000 displaced. The Malaysian PM, Anwar Ibrahim, tired to achieve peace, and on July 28, 2025 Donald Trump stepped in and calling both leaders in the midst of tariff negotiations and informed them that they would be banned from US trade if they didn’t stop fighting. With Malaysian help, they signed a ceasefire that day. The presidents thanked Trump; 70,000 Buddhists marched and asked that he get the Nobel Prize. It’s the power of tariffs, and of personality.

Will the peace last? It has for four weeks now, and seems to be holding. The press downplays the significance saying that Trump only got involved because he wants the Nobel Prize. Maybe, but people are not dying who would be. Peace is good and surprisingly hard. I would not mind seeing Trump get the prize, shared with Ibrahim. My guess is that it was motivated more by ego than real hopes of gain. They were in a position to push effectively, and did so. The push was a convent excuse for sanity. A month later, Trump brokered another peace deal, this time between Armenia and Azerbaijan. The press isn’t impressed with this either, nor with Trump’s efforts to end the war in Ukraine; they’re upset over his efforts to reduce the crime rate in DC.

Robert Buxbaum, August 28, 2025. Liberals have a happiness deficit. Here are some sayings of Zen Judaism, vaguely like Zen Buddhism.

Deriving Trump’s tariff formula, and correcting it.

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We have a trade imbalance with many countries, it causes a loss of American jobs, and a transfer of currency abroad. This imbalance is not all negative, of course, it provides US consumers with cheaper consumer goods. Trump would like to eliminate the imbalance using tariffs. He hopes that this will create jobs, and that the money raised will help balance the US budget. He’s already moved to end income taxes on tips expecting to replace that tax with tariff income. Trump claims that the tariffs are not inflationary compared to current the tax system that he claims has been hacked by the elites. In past essays, I’ve discussed the pluses and minuses of tariffs here, and here. Now I’d now like to derive the formula Trump uses, see below. The proposed tariff for any country or region, i, he calls ∆τi.

In the equation at left, χi = our exports to country, i. Similarly, mi = our imports from that country. The difference between these two is our trade imbalance, something he’d like to set to zero. There are two other greek terms that I will discuss, ε and φ. These are the elasticity of elasticity of consumption to price, and the elasticity of price to tariffs. Trump uses an asterix here to indicate multiplication. I will use a, more normal, “dot” symbol, •, to the same purpose. For most countries, he takes the two elasticities to cancel to 2, and produces a chart.

Let’s say that the dollar amount we currently buy from some country, i, = mi  = ni • Pi, where ni is the number of items bought from this country, and Pi is the average price. The intended effect of tariffs is to reduce mi  by raising Pi, the price consumers pay for goods from that country. This increase is certainly inflationary in terms of the consumer: a consumer of French wine will pay more per bottle unless he/she switches to US wine. Typically this price rise is not inflationary in terms of the country as a whole, because the producer likely swallows some of the tariff, so for the country as a whole, we pay less per bottle of French wine. The customer does not see that, but it’s worth noting. Trump sees things this way.

Back to the formula, we need to figure out how much the price will go up and how much sales will change. Economists have elasticity numbers for both these relations, denoted φ and ε. We can say that, for any country, I, the rise in the price of the average product is ∆Pi = Pi•∆τi •φ. Where Pi is the original price, ∆τi is the tariff, and φ is the fraction of this tariff that gets passed on to the consumer. A typical value is φ= 1/2 though some claim less. Assuming φ= 1/2 , if we add a 20%=∆τi tariff, as on on French wine, the consumer price will rise by 10%, a change that will cause him/her to buy less.

How much less will the consumer buy? That’s determined by the elasticity of sales, ε. This is the fractional decrease in the number items bought per fractional rise in the price. In math terms, ∆ni /ni = -ε∆Pi/Pi where ε is the elasticity. Now, since ∆Pi = Pi•∆τi •φ, we find that:

∆ni = -ni•ε•∆τi •φ.

There is evidence to suggest that, for the average product, ε equals about 2, and also evidence that it’s 4. Trump prefers 4, and uses it for his calculations. I prefer 2, and will get nearly the same tariffs at the end. Whatever our preferred value for ε, our next step is to use the following approximation, accurate for small ∆(mi);

∆mi  = ∆(ni•Pi) = ∆ni•Pi, +  ni•∆Pi . 

Trump seems to ignore the second term. Perhaps because it can either be positive or negative, as I’d mentioned above, depending on whether you look at things in terms of the customer or of the US as a whole. I’ll keep it in, writing this term in lighter text. In the end I will calculate a fairly similar tariff to Trump:

∆mi = -ni•ε•∆τi •φ•Pi  + ni•Pi•∆τi •φ.

Rearranging the above, and recalling that ni•Pi• =mi, you can find the appropriate tariff to eliminate the trade imbalance.

∆τi =   -∆mi  /(ε • φ• mi  + φ•mi) .

To make the trade imbalance go away, you need -∆mi = χi-mi . Thus,

∆τi =   χi-mi   /(ε • φ • mi  + φ•mi)

This is the Trump formula with an extra term in light text. If you ignore that term and use the values Trump prefers, ε =4 and φ=1/2, you get the exact values of the tariffs he listed on the chart for most countries — those with positive trade imbalances.

∆τi =   χi-mi / 2 mi  

Now, I’d like to put back in the missing term, and use the (better) values, values I would trust, ε =2 and φ=1/2. Using those values, I find the tariff should be slightly higher.

∆τi =   χi-mi / 3/2 mi  .

I should note that some countries are creating to these trips by raising their own tariffs, and some are lowering theirs. This will cause a change in the imbalance of trade, and Trump will have to change the tariff schedule periodically to keep up.

Robert Buxbaum, April 10, 2025.

The CPAP, not totally useless.

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CPAP machines (Continuous Positive Airway Pressure machines) are very commonly prescribed to prevent sleep apnea. They were originally prescribed to prevent heart attack, and despite minimal evidence that they help, they are still paid for by most insurance, including medicare. Sleep apnea is associated with snoring and with being overweight. The theory, supported by minimal evidence, was that stopping the apnea would prevent heart attack.

My C-PAP/ APAP. shown with distilled water

Five years ago, I found myself among those prescribed. CPAP, and found no evidence they extended life, or prevented any heart problem. I wrote this blog post, explaining what I thought was going on. I suspected some health risks, and found no obvious sleep benefit; I felt claustrophobic and woke with sniffles. I quickly stopped using the device.

Last month I retried my CPAP, now with a better fitting mask (nose only) and better humidification. I now find sleep benefits and no sniffles, but still see no sign of health benefits. “Even among participants with good CPAP adherence there was no significant reduction in cardiovascular risk in the two largest trials.2,3 ” There also appear to be some bad side effects. If the pressures are too high, the CPAP can cause inflammation and micro-tears in the lung. This is the same problem that killed people on ventilators during COVID. CPAP users show significantly increased inflammation markers, with higher inflammation the higher the pressure used. Lower pressure settings seems to result in fewer heart problems, too, see figure below. The number of cumulative adverse heart-events is lower for patients, randomly selected, who used a pressure below 7 cm H2O (lower than 0.1 psi). Most events happen in the first few months, and don’t know why. The researchers do not comment on this.

From the Lancet, Y. Peter et al, Volume 101, 105015, March 2024, with with results adjusted for age, sex, and BMI. Pressures below ≤7 cmH2O show fewer events. Most CPAPs are set to higher pressures, about 10cmH2O

I suspect that heart attack and stroke are mostly driven by BMI, lack of exercise, and by eating too much of the wrong foods (e.g. waffles, see here). I suspect the CPAP does nothing for this beyond improved sleep, and that, at the current pressure settings, it may be harmful.The health risks might have put me off the machine, except I like getting better sleep.

I figured I could try decreasing the pressure, hoping to get good sleep with fewer lung risks. I can’t reduce usage because healthcare pays for supplies only if you use the device 4+ hours per night, tracking your usage over the internet to make sure. I discovered that my device, an AirSense 10, was set to deliver pressures between 5 and 15 cmH2O resulting in an average delivery pressure of 10.2 cmH2O. I decreased the range to 4.6-12.4 cm, then further, to 5-9 cmH2O. So far, the machine shows no reduction in average pressure(?!) but my sleep is OK.

On a national level, I suspect that this device should not be prescribed as often as it is, and suspect that the set pressures should be lower. There is a replication crisis in science; drug statistics tend to be bogus, and food results too. If it were me I’d look for CPAP research to show real health benefits, I’d use linear regression with an r-squared test for significance, as here.

Robert Buxbaum, March 30, 2025.