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Dismantling the Department of Education.
Dismantling the Department of Education.
So, we’ll “defund” the department, but the money will “keep flowing.” We’ll “dismantle” it, but really redistribute its programs across the government. We’ll “eliminate” it, but actually reassign its various responsibilities to other agencies. When you add that actually eliminating ED will require an act of Congress and 60 Senate votes (as Ramesh Ponnuru wrote under “What the right is saying”), what actually ends up happening is not at all clear to me.
Defund ED? Who would teach? Who would create curriculums? How would our public schools stay funded?  I was subsequently surprised to learn then that ED has very little to do with curriculum or employing teachers, and that its role in funding public schools is fractional.
The Department of Education is responsible for about 14% of all funding that goes to our K–12 schools, and at the same time the department’s reach into state and local education has gone incredibly far. Through the power of the purse, the Education Department now wields a great deal of influence over how parents, teachers, and schools behave. At the same time, a lot of what ED does could be easily moved to other departments (for instance, I think it’s pretty easy to argue that ED’s Office for Civil Rights could move to the Department of Justice).
Some writers, like Cato’s Neal McCluskey, have made straightforward arguments that we don’t need a federal education agency when the federal government isn’t allowed to regulate education, and that the department itself is neither competent nor effective. At the very least, I think one of ED’s biggest responsibilities — its federal student loan programs — has gotten completely out of control. When higher-education costs have exploded and the president responds to those costs by forgiving hundreds of billions in student debt, moving that responsibility somewhere else makes sense. Writers on the left and right have made the case that the Treasury would be better suited to manage and oversee student loans, and I’m inclined to agree with them.
my general view is that ED is not really emblematic of a thriving, successful expansion of federal government — and while trying to “delete” it with Musk-level tact or care would be a disaster, I also think Congress (if it wanted) could significantly reduce ED’s role in American life, turn over its responsibilities to other federal agencies, and streamline a lot of the work it does as a department.  The problem with the current debate is that doing so wouldn’t really reduce the size of the federal government — and it wouldn’t save us all that much money, either. Instead, the administration would just create a whole lot of disruption, risk interrupting popular services, and probably lose the political debate in the public square — all to simply pass on one department’s responsibilities to others.
·readtangle.com·
Dismantling the Department of Education.
Trumpian policy as cultural policy - Marginal REVOLUTION
Trumpian policy as cultural policy - Marginal REVOLUTION

Trumpian Policy as Cultural Policy Analysis: Trump's administrative actions and policy decisions are primarily driven by a strategy to reshape American culture rather than achieve specific policy outcomes, using controversial decisions to dominate public discourse and shift cultural narratives.

  • The article analyzes Trump's policy approach as primarily a cultural strategy rather than traditional policy-making
  • Key aspects of this cultural policy approach:

    • Focuses on highly visible, controversial decisions that generate widespread discussion
    • Prioritizes cultural messaging over policy effectiveness or implementation
    • Aims to control ideological agenda through rapid, multiple policy announcements
    • Doesn't require policies to be legal, practical, or even implemented to achieve cultural impact
  • Specific examples:

    • Executive orders against DEI and affirmative action as first actions
    • Proposed renaming of Dulles Airport
    • Bill to add Trump to Mount Rushmore
    • Tariff threats against Canada and Mexico
    • Changes to federal employment structure
    • Elimination of Black History Month at Department of Defense
    • Targeting of US AID
    • Nomination of RFK Jr.
  • Strategic elements:

    • Uses polarization to guarantee at least one-third public support
    • Deliberately chooses well-known targets (like Canada/Mexico) for maximum cultural impact
    • Creates debates that delegitimize existing institutions
    • "Floods the zone" with multiple controversies to maintain constant cultural dialogue
  • Author's analysis:

    • Strategy doesn't require coordinated planning
    • Works through spontaneous order of competing interests
    • Relies on three factors:
      1. Conflicting interest groups
      2. Competition for Trump's attention
      3. Trump's belief in cultural issues' importance
  • Effectiveness factors:

    • Leverages internet-intensive, attention-based media environment
    • Creates disorganization among opponents
    • Uses negative contagion to reinforce cultural shifts
    • Prioritizes cultural impact over policy success
·marginalrevolution.com·
Trumpian policy as cultural policy - Marginal REVOLUTION
President Trump's first days in office.
President Trump's first days in office.
He’s identified real problems with our system and possesses the political will to pursue real change. Paired with a Republican majority in both chambers of Congress, he could genuinely achieve what his predecessors could not and pass major immigration reform during his term. But the sweep of these actions — mobilizing the military, pausing asylum, halting the parole process, trying to end birthright citizenship — will incur far more costs than benefits. The innocent people who are trying to flee danger or persecution in their countries and immigrate to the United States legally out of a sincere motivation to better their lives, who often help our country grow and stimulate our economy, will be caught in the machinery of these changes. All told, these executive actions are a step in the wrong direction.
Our system tends to exacerbate criminal behavior more than rehabilitate it, and the United States uses imprisonment as a punishment far more often than is productive or necessary. When it comes to the January 6 defendants, I fully support consequences for those who broke the law, but I also believe the Justice Department acted improperly in how it handled many cases.  The biggest example of this prosecutorial overreach came in a recent Supreme Court ruling that found the DOJ wrongly charged hundreds of rioters under an obstruction of justice statute that elevated the severity of their cases. This case did not fall along ideological lines; Justice Ketanji Brown Jackson joined the majority in the 6-3 decision, while Amy Coney Barrett dissented. At the time the ruling came down, roughly 50 defendants had been convicted and sentenced on that obstruction charge alone, and 27 of them were incarcerated.
The president pardoned the vast majority of the convicted rioters of all wrongdoing in a sweeping manner, with an apparent lack of knowledge of or care for the crimes he was excusing and without expressing any remorse for the pivotal role he played on that day.
·readtangle.com·
President Trump's first days in office.
Trump withdraws from the Paris Agreement and WHO.
Trump withdraws from the Paris Agreement and WHO.
While Trump can justify his decisions based on some of the recent failures of the WHO and the Paris Agreement, the withdrawals still carry significant risks for public health and climate change mitigation, which the Trump administration has not shown a plan to address.
Withdrawing from the Paris Agreement won’t affect our climate change outlook much, but it is a missed opportunity to redirect U.S. climate policy toward a more realistic objective. The treaty’s goal of keeping global surface temperatures to roughly 1.5°C (2.7°F) above pre-industrial levels is now practically unattainable after record-hot years in 2023 and 2024, and its secondary 2°C goal also appears to be in peril — a 2024 UN Environment Programme report stated that “emissions must fall 28 per cent by 2030 and 37 per cent from 2019 levels by 2035” to maintain the 2°C goal. Achieving those reductions would undoubtedly require massive, destabilizing changes to economic systems, which are neither desirable nor plausible. However, that provides more justification for the United States to stay in, not to drop out of, the agreement. In his executive order announcing the withdrawal from the Paris accords, Trump even said the U.S. must play “a leadership role in global efforts to protect the environment” — but how can we lead from the sidelines? Withdrawing is a huge missed opportunity to direct international climate policy towards its biggest problems: China’s rise and finding alternative fuel sources.
Domestically, Trump is also missing a large opportunity to combine a center-right "all of the above" energy policy with a center-left "abundance agenda," one that maintains a seat at the table for petroleum and natural gas while we continue to invest in renewable technologies. Nuclear energy should also be part of this effort, and its adoption is squarely in line with both the Trump administration and Paris Agreement’s goals.
The WHO does critical work tracking new disease outbreaks and identifying emerging pathogens, and the U.S. withdrawal threatens its ability to aid this work and maintain the benefits we all receive from it.
Furthermore, our status as a global health leader within WHO is smart diplomacy and advances our national security interests. We can guide ongoing efforts to eradicate polio, protect children from diseases, and mitigate future outbreaks. We also receive benefits, like communications on transnational spread of dangerous viruses, scientific collaboration for each year’s seasonal flu vaccine, and access to information about emerging threats. Lastly, we can investigate global threats, as we did when U.S. scientists joined the WHO delegation that visited China in February 2020 to assess its Covid response.
Both Trump and public health experts have rightly criticized the effusive praise the WHO heaped on China in the early days of the pandemic, even as questions swirled about how the virus spread. In a critical moment for its mission, the WHO seemed more occupied with keeping China happy than fulfilling its obligations to the rest of the world. The organization also failed to acknowledge that Covid was airborne early on, providing more evidence that it was ill-prepared to meet the moment.
Trump is right that the U.S. contributes a disproportionate amount to the WHO compared to China (even though he has exaggerated the magnitude of that difference), and we should push for fairer standards. While it is now starting to diversify its revenue sources, the organization’s reliance on the U.S. is evident in the measures it has already taken since Trump announced the withdrawal order — freezing recruitment and drastically scaling back its travel budget.
With all these issues in mind, leaving the WHO is still not the answer; in fact, leaving will make our problems worse. In our absence, China would likely seek to step up to mold decisions to its will — how does that help the U.S.? If Trump wants to play tough with the WHO, why not stay involved but slash our funding commitments?
·readtangle.com·
Trump withdraws from the Paris Agreement and WHO.
Trump’s new economic war
Trump’s new economic war
Saudi Arabia and other producers must cut oil prices, global central banks “immediately” needed to slash interest rates, and foreign companies must ramp up investments in US factories or face tariffs. The EU — which came in for particular opprobrium — must stop hitting big American technology companies with competition fines.
Trump’s demands came amid a frenetic first week in office in which the president launched a blitzkrieg of executive orders and announcements intended not just to reshape the state but also assert America’s economic and commercial supremacy. Tariffs of up to 25 per cent could be slapped on Canada and Mexico as early as February 1, riding roughshod over the trade deal Trump himself negotiated in his first term.  China could face levies of up to 100 per cent if Beijing failed to agree on a deal to sell at least 50 per cent of the TikTok app to a US company, while the EU was told to purchase more American oil if it wanted to avoid tariffs. Underscoring the new American unilateralism, Trump pulled the US out of the World Health Organization, as well as exiting the Paris climate accord for a second time.
This proposal throws a “hand grenade” at international tax policymaking, says Niels Johannesen, director of the Oxford university Centre for Business Taxation at Saïd Business School. The move suggests a determination to “shape other countries’ tax policy through coercion rather than through co-operation”, he adds.
“Those around Trump have had time to build up a systematic, methodological approach for protectionist trade policy and it shows,” says former UK trade department official Allie Renison, now at consultancy SEC Newgate. The approach will be to build up a case file of “evidence” against countries, she says, and then use it to extract concessions in areas of both economic and foreign policy.
The question remains how far Trump is willing to go. The danger of trampling on the rules-based order, says Jeromin Zettelmeyer, head of the Bruegel think-tank, is a complete breakdown in the diplomatic and legal channels for settling international disputes. If Trump were to pull out of a wider range of international frameworks, such as the WTO or the IMF, he warns, then the arrangements that help govern the global economy could get “substantively destroyed”.
Some caution against being awestruck by Trump’s threats or his espousal of capitalism without limits, because his agenda was so incoherent. “What we are seeing is huge doses of American hubris,” says Arancha González, dean of the Paris School of International Affairs at Sciences Po. “We are blinded by the intensity of all the issues put on the table and by Trump’s conviction. But we are not looking at the contradictions. It’s like we are all on an orange drug
·archive.is·
Trump’s new economic war
MANAGING FINANCIAL INSTABILITY IN 2025
MANAGING FINANCIAL INSTABILITY IN 2025

Managing Financial Instability Risks in 2025

Summary

  • The analysis positions itself as a warning about economic warfare, not financial advice
  • Key threats identified:

    • Alleged Russian influence over key US political figures including Trump and Musk
    • Strategic goal to dismantle US through internal turmoil and financial destabilization
    • Bitcoin characterized as an economic weapon in a zero-sum game
    • Christian Nationalist alignment with plans to destroy dollar/Fed system
  • Immediate financial risks for 2025:

    • Potential government shutdown due to no budget passage
    • Proposed $2 trillion budget cuts by Musk
    • US debt default risk as leverage for cuts
    • Strategic Bitcoin Reserve proposal threatening dollar stability
  • Critical timeline identified:

    • January 2 2025: Government runs out of money
    • January 3: New Congress installation
    • January 20: Treasury transition period
    • May 2025: Potential default date ("X-Date")
  • Recommended defensive measures:

    • Diversify holdings across bonds, real estate, gold/silver ETFs
    • Avoid Bitcoin/crypto investments
    • Contact representatives to oppose extreme measures
  • Additional considerations:

    • Moving to another country unlikely to help financially
    • Social Security potentially at risk
    • Banking system likely to hold but spreading funds recommended
    • Resolution depends on mainstream Republicans recognizing and countering these threats
  • Document context:

    • Living document subject to updates
    • Written by Dave Troy, presented as analysis of warfare operations
    • Includes extensive bibliography and related articles
    • Last updated November 16, 2024
·docs.google.com·
MANAGING FINANCIAL INSTABILITY IN 2025
The Cost-of-Living Crisis Explains Everything
The Cost-of-Living Crisis Explains Everything
headline economic figures have become less and less of a useful guide to how actual families are doing—something repeatedly noted by Democrats during the Obama recovery and the Trump years. Inequality may be declining, but it still skews GDP and income figures, with most gains going to the few, not the many. The obscene cost of health care saps family incomes and government coffers without making anyone feel healthier or wealthier.
To be clear, the headline economic numbers are strong. The gains are real. The reduction in inequality is tremendous, the pickup in wage growth astonishing, particularly if you anchor your expectations to the Barack Obama years, as many Biden staffers do.
During the Biden-Harris years, more granular data pointed to considerable strain. Real median household income fell relative to its pre-COVID peak. The poverty rate ticked up, as did the jobless rate. The number of Americans spending more than 30 percent of their income on rent climbed. The delinquency rate on credit cards surged, as did the share of families struggling to afford enough nutritious food, as did the rate of homelessness.
the White House never passed the permanent care-economy measures it had considered.
the biggest problem, one that voters talked about at any given opportunity, was the unaffordability of American life. The giant run-up in inflation during the Biden administration made everything feel expensive, and the sudden jump in the cost of small-ticket, common purchases (such as fast food and groceries) highlighted how bad the country’s long-standing large-ticket, sticky costs (health care, child care, and housing) had gotten. The cost-of-living crisis became the defining issue of the campaign, and one where the incumbent Democrats’ messaging felt false and weak.
Rather than acknowledging the pain and the trade-offs and the complexity—and rather than running a candidate who could have criticized Biden’s economic plans—Democrats dissembled. They noted that inflation was a global phenomenon, as if that mattered to moms in Ohio and machinists in the Central Valley. They pushed the headline numbers. They insisted that working-class voters were better off, and ran on the threat Trump posed to democracy and rights. But were working-class voters really better off? Why wasn’t anyone listening when they said they weren’t?
Voters do seem to be less likely to vote in their economic self-interest these days, and more likely to vote for a culturally compelling candidate. As my colleague Rogé Karma notes, lower-income white voters are flipping from the Democratic Party to the Republican Party on the basis of identitarian issues. The sharp movement of union voters to Trump seems to confirm the trend. At the same time, high-income voters are becoming bluer in order to vote their cosmopolitan values.
The Biden-Harris administration did make a difference in concrete, specific ways: It failed to address the cost-of-living catastrophe and had little to show for its infrastructure laws, even if it found a lot to talk about. And it dismissed voters who said they hated the pain they felt every time they had to open their wallet.
·theatlantic.com·
The Cost-of-Living Crisis Explains Everything
Bidenomics Is Starting to Transform America. Why Has No One Noticed?
Bidenomics Is Starting to Transform America. Why Has No One Noticed?
Biden is the first President in decades to treat government as the designer and ongoing referee of markets, rather than as the corrector of markets’ dislocations and excesses after the fact. He doesn’t speak of free trade and globalization as economic ideals. His approach to combatting climate change involves no carbon taxes or credits—another major departure, not just from his predecessors but also from the policies of many other countries. His Administration has been far more aggressive than previous ones in taking antitrust actions against big companies.
Another way of thinking about Biden’s approach is through terminology devised by the political scientist Jacob Hacker: it rejects redistribution as a guiding liberal principle, in favor of “predistribution,” an effort to transform the economy in a way that makes redistribution less necessary.
·newyorker.com·
Bidenomics Is Starting to Transform America. Why Has No One Noticed?
Max Pain (A Recent History)
Max Pain (A Recent History)
In The Umami Theory of Value, the authors discussed how entities create illusory value without improving material conditions. In 2020, they predicted a repulsive turn and a violent recoupling of value and material reality. However, the surreal crescendo of decoupling between value and reality that followed, which peaked in late 2021, saw incredible returns on random things and mainstreaming of risk. This period, which the authors call Clown Town, saw people taking risks they barely believed in and mistaking risk for opportunity. The authors then discuss the current era, Max Pain, in which everyone's opinion is right at some point, but never at the right time, and those who control the flows of information and capital are able to systematically profit while regular people struggle.
Money became increasingly fake-seeming as it diverged more and more from a hard day’s work and most conventional wisdom.
The growing number of people taking chances that they barely believed in (starting an Onlyfans, going all in on a memecoin, becoming a performative racist for clicks) reflected a rational response to seeing absurd and/or conventionally shitty ideas have outsized success (Bored Apes, Trump, the Babyccino).
bucking conventional wisdom in any direction became the order of the day. Contrarianism became incredibly popular. Taking the diametrically opposed position to consensus as a shortcut to standing out in a crowded and volatile field was a key Clown Town strategy.
As a subset of contrarianism, Hot Sauce Behavior became especially popular. Hot Sauce involves taking something basic or mid and applying a socially forbidden or mysterious spice to it (in place of, or to function as, the X factor or the je ne sais quoi). This element had to be shocking, bad, atavistic, or otherwise “not normal”—it could be Nazism, grooming, the Occult, Catholicism, outright aggression, the threat of violence, or the attitudes of obscure-to-you political groups—but in smallish amounts. It made peoples’ hearts race and adrenaline pump while they consumed something otherwise bland. (This was the Tension Economy as the new Attention Economy.)
If the 2020 degen was a gambler willing to go all in on a whim… …the 2023 degen is a sophisticated risk manager We have found ourselves in a new cultural era in which multiple overlapping crises and rising interest rates have led to an emergent reckoning. It is now widely understood that it was very stupid to play crazy games with tons of excess money instead of actually improving material reality. But certain questions remain: What the fuck is anything worth today? What’s the best way to manage risk while it all comes falling down?
In chess, today’s average player is more skilled than the one from yesteryear because online exposure of advanced theory has led to regular players making the moves of masters. As Virgil once said, “One kid does a new skateboard trick, then hundreds more can do it the next day around the world.”
Everyone should be able to use their increased intelligence and awareness to better navigate the world. In reality, the irony is painful: When everyone gets smarter, things get harder. If everyone is reassessing the most-effective-tactics-available all the time, it gets harder and harder to win, even though you’re smarter and “should be in a better position.” The Yale admissions office realizes thousands of applicants have watched the same obscure how-to-get-into-Yale TikTok, and decides to change the meta: Leadership is no longer a valuable quality.
Max Pain means, even when you’re right, you’re wrong; it describes a climate in which everyone’s opinion is right at some point, but never at the right time.
·nemesis.global·
Max Pain (A Recent History)
Dirt: Coping with things
Dirt: Coping with things
Coping with things is the prevailing mood in my corner of the universe. As I write this, America has just completed an election in which many people voted primarily for the idea of voting. The prevailing candidate? Less an individual than an avatar of civility and liberalism.
We are a country founded on an idea and not an identity.
Americans have a way of obscuring reality through grand symbolism and none of the accompanying semiotic rigor. As if the facade of democracy can be upheld by not looking too closely at increasingly undemocratic outcomes — our high tolerance for multiculturalism tenuously predicated on everyone struggling equally. The difference between idea and identity is both our saving grace and our downfall. Democracy: watch the gap.
The idea of the American individual, part of the national optimism that fueled the Space Race, is far less prominent than the citizen-consumer. Attaining a degree of celebrity, still a coveted means to financial stability, thrusts one into the category of “celebrity,” where image overtakes personhood.
Lifestyle, like work, is something we can only see in aggregate. Technological gains don’t relieve the pressure for ownership; they merely reinforce it.
·dirt.substack.com·
Dirt: Coping with things
Can a universal basic income help address homelessness? | Hacker News Discussion
Can a universal basic income help address homelessness? | Hacker News Discussion
The number one thing UBI doesn't handle well is rent inflation. You hand out $1000 dollars per person monthly, expect rents to go up by about $1000 monthly as landlords realise there is all this extra disposable income in peoples' hand right now.However, this is just an exaggerated effect of monopolies sucking out all aggregate disposable income out of economy that is already happening. Monopolies by definition don't have price down pressures, so they always price expand to capture anything people might have extra. Since landlording is the biggest aggregate monopoly in the world, landlords capture any disposable workers' income. No matter if they get a raise from their boss, the landlord always takes it away.
One of the biggest strengths of UBI is that it eliminates the beurocracy and waste associated with determining who "deserves" assistance. The dominant model in the US is expecting homeless people with drug problems to solve both their addiction and homelessness at the same time by themselves before they are deemed worthy of being helped, which needless to say is barely assistance at all. Having a gaurenteed income stream would make it easier to gain a foothold.
·news.ycombinator.com·
Can a universal basic income help address homelessness? | Hacker News Discussion
Biden's student loan plan won't bring down college costs
Biden's student loan plan won't bring down college costs
Why costs are so high: The simplest answer is that schools have had little incentive to control costs, particularly when abundant student loans — both public and private — can make tuition rates appear more affordable than they really are.Moreover, some schools are motivated to spend on high-ticket items like new construction, because that can attract wealthier students (including from overseas) who don't request financial aid. In the end, however, those costs often get passed down to everyone.This is a systemic issue, which explains why most politicians have preferred to play along the easier margins.
There are possible solutions that have been circulating among education experts, not all of which rely on taxpayer largesse like making public college free for lower-income students.One would be to limit loans tied to education at schools that have a demonstrated history of onerous student debt burdens. In other words, if most of a school's students aren't receiving the sort of education that allows them to pay off their loans, cut it off at the source.This could include a gainful employment rule focused on career programs, which is favored by the Biden administration but languishing in Congress.Another would be to deny federal research grants to schools whose tuition rates increase at an unacceptably high level. This would be particularly impactful at large public and private universities.The federal government also could consider revoking the tax-exempt status of schools that exceed tuition inflation limits, although that likely would face court challenges.
·axios.com·
Biden's student loan plan won't bring down college costs
The Single Most Important Thing to Know About Financial Aid: It’s a Sham
The Single Most Important Thing to Know About Financial Aid: It’s a Sham
The whole public-facing system of college admissions—in which admissions decisions are based on rigorous academic standards and financial aid is supposedly provided to those who are most academically and financially deserving—is an elaborate stage play meant to flatter privileged families and the reputations of colleges themselves. The real system, hidden behind the scenery, is much closer to the mechanics of pure capitalism, driven by an industry of for-profit consultants and relentlessly focused on the institutional bottom line.
A spokesman from Clark University, which tried to entice Ethan with a “$68,000 Robert Goddard Achievement Scholarship,” told me that the school “does not rely on an enrollment management consultant.” Instead, they said, it “occasionally” hires “outside analytical support” that does “not tell us how much aid to offer any student or group of students” but does “crunch large volumes of data in a timely manner that we then use to assess our progress toward our enrollment goals and estimate/project our total aid expenditure through that enrollment cycle.”
So, not an enrollment management consultant. Just, you know, a consultant that helps them manage enrollment.
As DiFeliciantonio wrote: “Wealthy families are more able and less willing to pay for college while the poorer families are more willing and less able.” In other words, parents of means who themselves have finished college are often sophisticated consumers of higher education and are able to drive a hard bargain, whereas lower-income, less-educated parents feel an enormous obligation to help their children move farther up the socioeconomic ladder and blindly trust that colleges have their best financial interests at heart. So colleges obey the algorithm and offer more financial aid to the Ethans than to the Ashleys, one of many problems identified in a recent Brookings Institution report.
Ashley submitted financial aid forms with information about her family’s modest income because everyone and everything about the process told her college aid is based on how much money you need, or deserve. She had no idea that information could be used against her. In May, New York University offered her admission if she would agree to delay enrollment until spring 2023—when, maybe not coincidentally, her good-but-not-stellar academic record would not count in the rankings data NYU submits to U.S. News & World Report. Their price? $79,070. Their aid offer? $0, take it or leave it, with 96 hours to respond.
as the countless individual stories that compose the nation’s $1.7 trillion student loan crisis show, many families make different choices. They are drawn in by a combination of optimism, blind faith, and familial obligation, and end up with debts they cannot repay. Colleges know this will happen.
Nobody is really judging your worthiness for financial aid. College is just another service with a price.
·slate.com·
The Single Most Important Thing to Know About Financial Aid: It’s a Sham