Fact or Fiction

Dispelling popular myths, misperceptions, and urban legends with logic (and humor)

Identifying misleading arguments and statistics and searching for pragmatic solutions

The place for critical thinkers, skeptics, and political centrists

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Free Enterprise Socialism
“Democracy and free enterprise involve social justice and equality, but equality of rights and opportunities, not necessarily of income.”

Does this sound right to you?  Inherent in the “American Dream” is equal opportunity.  Anyone who works hard enough, can achieve a higher level of income.  Is this how we view our system?  Doesn’t this way of thinking separate our form of government from socialism and communism?

But wait!  This just in, “Socialism means social justice and equality, but equality of rights, of opportunities, not of income."

Raul Castro made this statement just days ago while announcing the end of excessive state subsidies and wage limits in Cuba.

Is socialism turning into free enterprise?  Have we become socialists?  Or, did socialism and communism just come to an end.

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Posted by Ken Pirok at 7/22/2008 10:12 AM | View Comments (0) | Add Comment | Trackbacks (0)
Today's Helpful Hint
If you allow your lawn mower to run completely out of gas, then it will be much harder to get it started again than it was to begin with.

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Posted by Ken Pirok at 7/16/2008 2:45 PM | View Comments (0) | Add Comment | Trackbacks (0)
Why Vote? Here's Why...

In a November 6, 2005 column, Steven Levitt and Stephen Dubner, the authors of Freakonomics, wondered, “Why Vote?”  On their blog Tuesday, Levitt reminded us again that, as an economist, he sees little or no value in voting in the upcoming Presidential election.

The “evidence” that voting doesn’t matter consists of a study of Congressional and state legislative elections, showing that the odds of a single vote affecting an election are extremely rare.  (Although, the analysis turned up no less than nine state legislative elections out of 40,000 that ended either tied or decided by a single vote.)

The problem is that this entire analysis fails to consider the fact that many additional local elections and referenda share the ballots with state and national races.  And, numerous local elections are decided by one or two votes or even by coin flips in cases of ties.

I know this can happen, because it (almost) happened to me.  In 2001, I won a City Council election by two votes.  Any individual voter who had decided to vote for my opponent instead of me would have caused a tie, and I believe the election would then have been decided by a simple coin toss.  During my first four-year term on the Council, I was constantly reminded by constituents that their vote (or the combined votes of a husband and wife) had gotten me elected.  Whenever a voter had a gripe, I had to listen.

If you don’t believe that coin flips decide elections, then think again.  Just a few years later, a County Board primary here was, indeed, decided by a coin flip.  A simple Google search returns numerous stories about elections being decided this way.  At least two recent elections in Michigan (this one and this one) have been decided by tosses of coins.

The hitch in Michigan is that the winner of the coin toss doesn’t necessarily win the election.  He or she only wins the opportunity to choose first from a box containing two slips of paper, one that says, “elected,” and another saying, “not elected.”

None of this discussion addresses the argument by many astute political observers that local elections are more important than state and federal elections.  Local laws and policies most directly affect citizens.  Think about your taxes.  A huge chunk of what you pay is determined at the local level.  Specifically, property tax and sales tax rates are often determined by local politicians or in local referenda.

Levitt and Dubner have a point in the sense that the converse of their argument is very telling and important.  The smaller the number of votes cast in an election, the seemingly greater the odds that it will end in a tie.  So get out and vote.  The quality and the curriculum of your schools, the zoning of your property and the one across the street, how many police patrol your streets, and where or whether you can smoke in public are all at stake.

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Posted by Ken Pirok at 7/8/2008 2:29 PM | View Comments (0) | Add Comment | Trackbacks (0)
The Floods: Whose Fault?

The recent flooding in Iowa and in my state of Illinois has been tragic.  But, I am getting sick of hearing people (and media like CNN) blame the government for the floods and the fact that most homeowners didn’t have flood insurance.  This was supposedly a five hundred year event.  It was an “act of God.”

If we required building standards and insurance that covered every event that might only happen twice per millennium, then we would have to spend a fortune on construction costs, public works projects, and insurance.  The same people who are blaming the government now would criticize the government for these onerous and expensive requirements if they were to be enacted.

Now, I don’t know whether this was really a five hundred year event or not.  Maybe it wasn’t, or it won’t be in the future.  But, I do know that if you live near a river or next to a levy, then you should anticipate that flooding is within the realm of possibility.

And, it is completely false to say that the government told these property-owners that they didn’t need flood insurance.  Just because the government didn’t require it, does not mean that flood insurance was not available or that these people were precluded from getting it.  In fact, just the opposite was true.

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Posted by Ken Pirok at 6/24/2008 11:26 AM | View Comments (1) | Add Comment | Trackbacks (0)
One Decision Changed the Election
Because I believe that issues and substance should drive elections instead of style and strategy, I don’t usually write about politics for politics sake. But, I keep going back to a single moment in the Democratic Presidential primary campaign. A decision was made, probably as long ago as last fall, when Clinton was significantly ahead in the national polls, and it seemed her race to lose. Barack Obama went one way and Hillary Clinton went the other way, and the result of the entire election was determined by their choices.
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Posted by Ken Pirok at 6/13/2008 12:04 PM | View Comments (2) | Add Comment | Trackbacks (0)
Dear Hypermiler,
Yes, I’m writing to you, the guy in the white car who has been driving around my neighborhood at fifteen to twenty miles per hour.  I found you driving this way the very next day after the CNN story about “hypermiling,” which is the practice of saving gas by anticipating stops and avoiding breaking, accelerating, and idling at all costs.

YOU ARE NOT SAVING ANY GAS BY DRIVING SO SLOWLY!  When you drive around in first or second gear, your car actually uses MORE gas.  Your car is most efficient in the highest gear.  Here is an article from Car Talk where they provide legitimate ideas for saving gas and wherein they specifically advise you NOT to drive so slowly.

There are two more reasons not to drive this way.  First, it is unsafe.  When you drive that slowly, you force people into the lane of oncoming traffic to pass you.  Some drivers might also assume that you are stopping or turning and make bad decisions.  Secondly, it is extremely annoying; you are not making any friends in the neighborhood this way.

By the way, the Car Talk article has some great ideas.  I, myself, have saved a lot of gas recently by simply driving five miles per hour more slowly on the highway.  This move has been measurably successful in reducing my gas mileage and consumption.

One more thing, you should NOT open your windows when you’re driving on the highway.  This doesn’t save gas either, because the wind resistance overcomes the effect that your air conditioning has on fuel consumption.  If you have air conditioning, then use it on the highway instead of opening windows.

Happy driving...

 

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Posted by Ken Pirok at 6/10/2008 12:51 PM | View Comments (1) | Add Comment | Trackbacks (0)
What is the Chance that it Won't Rain?
“Let’s go to the lake today.”
 
“No, I heard on the radio that there is a thirty percent chance of rain.”
 
“Then aren’t the odds seventy percent that it will not rain?  The chances are that it won’t rain at all, so let’s go.”
 
“No, I’m not going.  I think it usually rains whenever there’s a thirty percent chance.  I wonder how they calculate those chances anyway.”
 
Who is right here?  Are the odds really seventy percent that it will not rain when there is a thirty percent chance that it will?
 
Not necessarily.  According to the National Weather Service, the probability of precipitation is actually calculated for a twelve-hour period, ending at either 6am or 6pm local time.  In other words, the probability is actually thirty percent that it will be raining at any given time during the twelve-hour period.  So, the odds that it will rain at all during that twelve-hour period seem pretty high.
 
Now, just because precipitation is likely, doesn’t necessarily mean that it will actually be horrible.  The National Weather Service considers a precipitation event to be anything that is at all measurable (so it needs only to be greater than a hundredth of an inch.)  Also, the probability is that precipitation will occur anywhere within the forecast area.  Some spots may get downpours, while others receive nothing at all during the forecast period.
 
So, here’s the bottom line, according to Dr. Jim Angel, State Climatologist at the Illinois State Water Survey:  If there is a thirty percent chance of rain, then plan for it; pack an umbrella or a raincoat.  If there is a fifty percent or greater chance or rain, then go to the mall instead of driving all the way to the lake.

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Posted by Ken Pirok at 6/3/2008 2:26 PM | View Comments (0) | Add Comment | Trackbacks (0)
Today's Helpful Hint
Check out our other websites:

www.kenpirok.com if you're starting a business
www.financialstatementschool.com if you're learning about financial statements and financial analysis
www.commercialloananalysis.com if you're a credit analyst or a commercial lender

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Posted by Ken Pirok at 5/31/2008 1:28 PM | View Comments (0) | Add Comment | Trackbacks (0)
Dear Keith Olbermann,
You are turning into a joke. You emulate your arch-enemy, Bill O'Reilly. The only difference between you and him is that he is conservative, and you are liberal.
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Posted by Ken Pirok at 5/24/2008 12:22 AM | View Comments (2) | Add Comment | Trackbacks (0)
Today's Helpful Hint
"You can't stop what you can't end."

-Andrew W.K.

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Posted by Ken Pirok at 5/20/2008 5:16 PM | View Comments (1) | Add Comment | Trackbacks (0)
The Politics of Happiness
Check out this entry in a series of posts by Arthur C. Brooks on the Freakonomics blog.

His studies have found that conservatives tend to be more happy than liberals and that those on the political extremes tend to be more happy than moderates.  He also explores how happiness relates to religion, country of origin, and worldview, etc.

Fascinating!


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Posted by Ken Pirok at 5/14/2008 3:34 PM | View Comments (0) | Add Comment | Trackbacks (0)
Today's Helpful Hint
There is no "X" in the word, especially.  (There isn't one in "espresso" either.)

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Posted by Ken Pirok at 3/18/2008 1:08 PM | View Comments (0) | Add Comment | Trackbacks (0)
What AT&T Video Service is Really Like
For those of you who have so vehemently argued that AT&T should be afforded special treatment in order to create competition for the cable company, here is how they treat local government channels in California:

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Posted by Ken Pirok at 3/15/2008 12:40 PM | View Comments (0) | Add Comment | Trackbacks (0)
How to Pick Lottery Numbers
Do you play the lottery? How do you pick your numbers? You could just pick one, two, three, four, five, and six. After all, the odds of these balls being chosen are exactly the same as any other six “randomly” chosen numbers. You could also pick numbers the numbers you just saw on a TV show or inside a fortune cookie. You could even use your kids’ birthdays, expecting some good luck. But, the fact is that every one of these strategies is a loser.
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Posted by Ken Pirok at 3/7/2008 2:33 PM | View Comments (2) | Add Comment | Trackbacks (0)
Is a tomato a fruit?
Is a tomato a vegetable, or is it really a fruit? It seems like a simple question, but it turns out that there is quite a bit to consider. The correct answer depends upon whom you ask…
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Posted by Ken Pirok at 2/3/2008 9:01 PM | View Comments (0) | Add Comment | Trackbacks (0)
Today's Helpful Hint
Don't walk on a treadmill in bare feet.

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Posted by Ken Pirok at 1/31/2008 6:21 PM | View Comments (0) | Add Comment | Trackbacks (0)
Today's Helpful Hint
If you forget to close your garage door on the coldest night of the year, and your furnace and water meter are in there, then you're in for a rude awakening in the morning.

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Posted by Ken Pirok at 1/29/2008 6:18 PM | View Comments (0) | Add Comment | Trackbacks (0)
Can a Hypnotist Control You?
One day you’re at the mall. A stage has been set up, and a hypnotist is asking for volunteers from the audience. He is going to put on a show. Soon, through the magic of hypnosis, some guy is convinced that he is JFK…“My fellow Americans”…Nice accent! Meanwhile, a woman is busy clucking like a chicken and flapping her elbows back and forth just off the stage. Wow! This is powerful stuff. All you want is some help quitting smoking, so you decide to look the hypnotist up in the yellow pages. You make an appointment, but it turns out that the only thing this demented hypnotist does is play practical jokes and control your actions. He commands that after leaving your trance, every time you hear a phone ring, you will start singing “Another One Bites the Dust,” just like Freddie Mercury. This turns out to be problematic because you work at a funeral home. Could this nightmare really happen?
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Posted by Ken Pirok at 1/25/2008 6:10 PM | View Comments (0) | Add Comment | Trackbacks (0)
Today's Helpful Hint
The statement, "My son is a lawyer," does not improve your argument.  By the way, my girlfriend is a lawyer, and I took the LSAT once, so I am right.

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Posted by Ken Pirok at 1/10/2008 1:47 PM | View Comments (0) | Add Comment | Trackbacks (0)
Today's Helpful Hint
Do not fill your garbage disposal with rice.

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Posted by Ken Pirok at 1/8/2008 1:46 PM | View Comments (0) | Add Comment | Trackbacks (0)