The outcome is monumental, but only because the courts have previously erred significantly and ruled that APIs are copyrightable at all. The Supreme Court had refused certiori to examine that ruling of an Appellate court, which in turn was a reversal of a District court decision (EFF has all the details). Interestingly, this most recent case was heard under the original judge, so it’s quite possible the Appellate Court will reverse again. I think it’s crazy to suggest that API names are even copyrightable, but given that they’ve been ruled as such, I can’t see how use of APIs isn’t fair use.
Google didn’t copy Oracle’s code; they rewrote it themselves, but used the same name for the code functions, and then packaged it into a much better product than anything Oracle had created. And it’s not like this negatively impacted Java’s market viability (contrary to what Oracle claims); Android likely saved Java from becoming a defunct language used only in big enterprise environments. Younger aspiring developers want to program in languages for apps and new web technologies like Ruby, Node, Swift, and even Python. But the only new reason to know Java is because Android exists; if Android had picked Python, that’s what everyone would be learning to make Android apps. It’s ridiculous.
But more fundamentally, the use of API names can’t be restricted! That defeats the whole purpose of having them! Sure, Twitter has the right to restrict the calling of functions on their servers through their APIs, but the actual name of the REST calls isn’t theirs forever now. Steve and Leo on Security Now said it very well about APIs:
It’s driving a car. If we didn’t have a single uniform car/driver interface, meaning brake and accelerator, and this is how the steering wheel works, it would be a disaster. And as I thought about this more, I realized that this notion of standards is what this comes down to. And standards are such a part of our life that it’s even – it’s almost hard to appreciate the degree to which we depend upon them. I mean, think about even threads, you know, nuts and bolts with standard threading. If everyone just made up their own, so that screws were not interchangeable, it would just be a catastrophe.
I would go even further; a steering wheel is a patentable invention that other car companies would have to pay to use…but calling it a “steering wheel” isn’t something you can restrict. Doing so would be a blatant misuse of copyright and horrific reduction in free speech. Steven Gibson continued:
And, I mean, so I guess my real complaint is that Oracle has historically benefited from the spread and the use of Java. And so because they allowed that to happen, it’s done as well as it has. And suddenly now Google has capitalized on it, and they’re wanting to take their marbles back and to say – or basically, essentially, this is a $9.3 billion lawsuit. So they’re saying we want some of the revenue which Google is obtaining as a consequence of doing a far better job in commercializing and leveraging Java for profit than we ever could. Because all we’re doing is telling everyone to get Java out of their computers…
…The BIOS is another perfect example. The fact that IBM gave us an interface called the Basic I/O System allowed all kinds of programs to be written without regard for whether it was, for example, a color graphic display or a monochrome graphic display. They were completely different. They occupied different hardware regions. Yet the BIOS hid those differences so that a program didn’t have to worry about what type of hardware you had. And that was an API, a standard. But just in general this kind of standardization, you can sort of imagine sort of a Mad Max post-cataclysm world where you no longer have standards, and everyone’s thing is just made from scratch, and they’re not – nothing’s interoperable. And it would just be a bizarre place.
And I think one of the major things that the Industrial Revolution did was it taught us the power of interoperability. And here Oracle is trying to say, yeah, we’re going to get a toll for you using something that we purchased and never figured out how to use.
I’ve said it in the past, and I’ll keep saying it: the purpose of all intellectual property law is not to help the owners of intellectual property, but rather to promote creativity and new works. Ruling that API names are copyrightable does literally nothing to promote interoperability or improve technology; it only makes it harder to improve the world. Getting this fair use ruling is better than nothing, but it should never have come to this.
Photo credit: Android Lineup by Rob Bulmahn, licensed under CC-BY-2.0.
Now that we basically have our two major candidates, let’s do a retrospective look at some of the political candidates our system was able to produce, reject, or approve over this election cycle. Let’s start with Republicans.
In early 2015, the prevailing wisdom was that Hillary Clinton was going to be the Democratic nominee. She looked like a strong candidate but one with a low ceiling; she had great name recognition and experience, but also was (and is) tied to the Obama administration, especially its foreign policy. I’d argue she’s appeared even weaker over the course of the primaries than she did in 2015 as big swaths of Democrats have shown hesitation to embrace her candidacy. Given this situation, Republicans should have been able to come up with candidates that played well against Hillary; what they got is someone who (as of May 2016), isn’t very competitive. If only there had been someone else to pick from!
It’s rare when an idea, or piece of evidence, comes along that is so impressive, it forces you to rethink your entire model of the world. The recently released Feinstein-Burr encryption bill has done just that.
It has been described as “technically illiterate”, “chilling”, “ridiculous”, “scary”, and “dangerous“. Not only are the issues with the bill fairly obvious to anyone with a cursory understanding of encryption, the problems are of such magnitude that it thwarts any attempt to understand the Senators’ actions. Let’s look at the effects of the hypothetical law.
The biggest issue is that this bill will significantly damage the United States’ national security. We live in a highly insecure world where cyberattacks, both foreign and domestic, are omnipresent. The Feinstein-Burr bill would fundamentally reduce the security of all technology infrastructure in the country. Jonathan Zdziarski in a blog linked above, gives some details:
Due to the backdooring of encryption that this legislation implies, American electronics will be dangerously unsafe compared to foreign versions of the same product. Diplomats, CEOs, scientists, researchers, politicians, and government employees are just a few of the people whose data will be targeted by foreign governments and hackers both while traveling, but also whenever they’re connected to a network.
That’s awful, and even if you have the most America-first, protect-American-lives mentality, weakening American encryption is the worst thing you could do; it literally endangers American lives.
I think there’s also a strong case to be made that this will do very little to combat terrorism. Unbreakable, strong encryption is widely available on the internet for free, forever; if bad people want to use it, they will. Moreover, terrorism, as awful as it is, is relatively rare; Americans are about a 1000x more likely to die non-terrorism related homicide. And many more “common” homicides occur due to heat-of-the-moment arguments, which means there would be no encrypted messages detailing conspiracies. All this bill does is remove the ability of average, non-technically inclined Americans to secure their data.
And the people whose data will be most at risk will be those consumers who are less educated or less technically adept. Better informed consumers might have the ability to install foreign encryption software on their phone to keep their data safe, but most uninformed consumers just use default settings. Thus, criminals who try and commit identity theft will greatly benefit from this legislation; they wouldn’t usually bother targeting knowledgeable users anyway, and with security stripped away from phones, it will be much easier to steal data from susceptible users. The people most in need of help to protect their data will be disproportionately harmed by this legislation.
On the other hand, most companies are not uniformed users. They have IT departments who understand the value of encrypting their data, and they will continue to purchase strong security software, even if it is no longer sold in the United States. Foreign produced software works just as well. Banning strong encryption will debilitate the American technology sector, one of the biggest and most important parts of the economy. This will cost Americans jobs and diminish America’s influence on the future of the world, as technological innovation moves overseas. But this isn’t just bad for Americans; it’s not easy to simply move an entire company or product overseas. There are huge capital investments these companies have made that will not be available in other countries immediately, if ever, and this will set back the global technology industry billions if not trillions of dollars.
So this really begs the question of why Senators Dianne Feinstein and Richard Burr introduced this bill; given their stated obsession with national security, and given the horrific effect this bill would have on American national security, there’s no good way to resolve their stated beliefs with their actions. Here are a couple theories to explain their behavior, and some discussion as to why each respective theory is unsatisfying.
The Senators are actually foreign spies purposefully trying to weaken American national security. Obviously, if this theory is true, it’s self-evidently very bad that our elected officials not only don’t represent us, but actually represent foreign governments likely trying to harm Americans. Sure it’s quite unlikely since it’s very difficult to become a U.S. Senator at all, and no spy agency would send agents in with a plan to become a U.S. Senator. Whether they were turned into foreign agents after being elected, I really can only speculate. But it strikes me as improbable. Nonetheless, it is true that this legislation is exactly what foreign security agencies would want to introduce to make the United States more vulnerable. I was curious, so I checked the constitutional definition of treason as well as the Espionage Act, but it seems that you need to literally give secrets to other people, not just make it easier for them to obtain. But there is that one case where a high ranking official is in trouble for storing documents insecurely…
They’re power hungry politicians. The idea of the Senators being foreign spies is bit far-fetched. But what know for sure is that they are politicians, which means they chose a career path that would give them more power to change things. Maybe Burr and Feinstein are sick of technology companies telling the FBI that they can’t assist their investigations, and they wanted to put them in their place. If this theory is true, it’s pretty self-evidently evil; people in power using their power indiscriminately to harm citizens is the exact problem Thomas Jefferson identified in the Declaration of Independence. Of course, it’s not usually a big problem, because James Madison helped construct a whole host of ways to check the power of government. Of course, the most important check for our situation is that senators are voted in by the people. So as long as people know about this dumb bill, they’ll kick these guys out…right?
Hanlon’s Razor (origin disputed) states that one should “never attribute to malice that which is adequately explained by stupidity.” This theory would mean that two sitting, highly experienced U.S. Senators are too stupid to realize the ill effects this will have on national and economic security. Obviously, congress has to make laws in areas that its members are not always familiar with…but Burr and Feinstein are the chair and vice chair, respectively, of the Intelligence Committee. If anyone knows about intelligence, they do. And Feinstein is even on the Judiciary Subcomittee on Technology, Privacy, and the Law! If even these people are too stupid to understand what the effects of their own policies are, we might as well stop sending representatives to a legislature at all and just have run-of-the-mill uneducated voters pass everything directly through referendum. Sure, they’d have no idea what they’re doing, but apparently neither do Senators!
What I think is most likely, and most terrifying, is that American Democracy incentivizes members of Congress to make bad policy if it’s politically beneficial. With all the aides and staff Senators have, plus the amount of pressure they receive from outside groups, it seems unlikely they never heard about the bad effects of the bill. Yet, they did it anyway. Given they don’t work for law enforcement, there is no Frank Underwood endgame for passing this bill; banning encryption doesn’t directly allow Burr and Feinstein to look at their political enemies’ phones (…probably), just criminals and the police. So then maybe their incentive was to appear tough on crime and terrorism, consequences be damned. Richard Burr is in a reelection year in North Carolina, so let’s look at the effect this horrible bill has had on his chances to win according to Predictit.org:
Primary was in mid-March, bill introduced in early April
As you can see, the bill had very little effect on his perceived chances. Now, it could be that voters have already factored in Senator Burr’s position on destroying defending American national security, and he needed to introduce this legislation to maintain his position. But it looks identical to a situation where North Carolina voters couldn’t care less about Senator Burr’s position on encryption, and his introduction of legislation consequently had no effect on his reelection chances. If it’s the former, then we are in serious trouble because our legislative representatives are incentivized to make horrible policies because voters aren’t well informed. If it’s the latter, then we have to dismiss this explanation and go back to one of the other three.
Whatever the explanation is, it reflects poorly on how the government constructs policy, and it reflects poorly on American Democracy. Moreover, assuming any of those discussed theories are true, they imply massive issues that will be difficult or impossible to solve. Reforming democracy as many progressives would like, through campaign finance, wouldn’t even address any of these issues; it is the technology corporations and privacy NGOs which have been advocating for more privacy and making unbreakable encryption more accessible, while law enforcement and other government agencies have been advocating for less security. But as far as I can tell, even they haven’t demanded anything like this bill. Thus, more campaign spending by private groups would help, not hinder good policy.
No matter how you look at it, this bill indicates a big failure for democratic government and illustrates the dangers discretionary state power.
Tesla Motors announced their newest car, the Model 3, is now available for pre-order. It’s always been Tesla’s stated purpose to bring down the cost of electric vehicle dramatically, by first charging people for high end cars, and using those profits to innovate the cost of cars down to affordable levels for the general public. It’s an admirable goal that combines the best intentions with good incentives, using idealism to drive profits.
Tesla has, confusingly, sold 3 models of cars prior to the Model 3: the early Tesla Roadster (all over $109k price), the ultra-luxury sedan Model S (starting price at $76k, but most sell at over $100k), and the newer Model X SUV (about $5000 more than the Model S). Few Model X’s have been shipped, and only about 2500 Tesla Roadsters were ever built. The vast majority of Tesla’s automobiles have been Model S’s between 2012-2016. In that 4 year span, roughly 107,000 cars have been sold worldwide, with about 63,000 in the United States.
Making matters worse, Tesla has said they expect to start shipping at the end of 2017. Some analysts say that Tesla will ship about 12,000 cars in 2017 and another 60,000 in 2018. But this might be optimistic, since Tesla was supposed to start building the Model X last year, but only got a couple hundred out the factory before January.
Tesla will get better at manufacturing, but they are not ready to switch from the high end market to the mass market (or as mass market as a $35,000 base model). The Tesla “master plan” is not ready to attack this level of the market yet, but that’s not to say it isn’t successful in other ways; as Ben Thompson wrote: “The real payoff of Musk’s ‘Master Plan’ is the fact that Tesla means something.” In fact it means so much that the demand for a $35k Tesla in 2017 is something like 10x predicted supply! Tesla should take advantage of this.
The obvious economic answer to quantity demanded outstripping quantity supplied is to raise the price. Scaling Tesla’s manufacturing output to new heights is not going to be easy, but it will be easier with additional resources. And Tesla could use some additional resources (they lost about $300 million in 2014). Right now, people will be waiting around for their cars for years. Why not take some more from people who want a car sooner, so that more innovation can be done to help the people on the back-end? That’s Tesla’s whole plan anyway. Creating an affordable family car that you can only make 50,000 of every year doesn’t help many families!
Now, of course, it’s true that some of the appeal of Tesla is that they are trying to transform the auto industry, and if they charge more for the Model 3, one could argue they aren’t as transformational as they claim. But I’d counter with Thompson’s comparison to Apple, in that the Tesla brand itself is drenched in cool. Tesla’s brand is quite valuable, and the best way to help humanity with that brand is to push harder for innovation.
An awesome, widely available $35,000 electric car will come, but for now, Tesla has the opportunity to marshal more resources to build a better future; it would be silly to not take advantage of that.
Photo Credit: “Candy Red Tesla Model 3”, is a derivative of this photo by Steve Jurvetson, used under CC BY 2.0. “Candy” is licensed under CC BY 2.0 by Mariordo.
I’ve settled on the right way to show the date in these links posts: the international standard ISO-8601. It’s about time since that has been the standard since 1988.
Niskanen center names social justice aware libertarianism as “neoclassical libertarianism“. I like this idea, as it’s strictly superior to progressivism, and I’ve been trying to come up with a good name for it. Scott Alexander called it left-libertarianism-ist, which just isn’t as catchy. Of course, maybe pure libertarianism is better, but neoclassical liberalism is far more politically palatable. It is also more “conservative”, meaning that it is closer to the status quo.
Merrick Garland would not be a good SCOTUS justice. Randy Barnett discusses with Reason why he opposes Garland’s nomination: he’s completely deferential to executive and legislative authority and does not protect individual rights from the state. Does it make sense for the Senate to not give him a hearing? Maybe, maybe not. Did it make sense to declare prior to his announcement that any candidate wouldn’t get a hearing? Hard to say; if that hard line approach made Obama nominate an old white guy who endorses state power in the name of national security, that’s certainly a win for neoconservatives. I don’t think anyone should take an outrage stance on the Supreme Court opening because this really is a complicated game theory situation with nested layers of strategy. Even though I’m sure he is one of the most un-libertarian nominees ever, it’s impossible to say if he would be worse than a Hillary appointee or even a Trump appointee.
Heard through Slate Star Codex, anti-censorship blog Status 451 (linked in the sidebar) held a fund-raiser for LambdaConf, a functional programming conference I had no idea existed until a week ago. Apparently, after an anonymous analysis of submitted papers, the Lambdaconf organizers selected a paper to be presented at the conference by Curtis Yarvin, a.k.a. Mencius Moldbug, perhaps the most well known neo-reactionary. Certainly I think neo-reactionaries are a bit nuts, but Mr. Yarvin has also invented the intriguing functional programming language Urbit. We don’t agree with him politically, we can learn and grow our knowledge by understanding what he has to say, especially in technological areas he is an expert in! Alas, as Eric S. Raymond recounts, the social justice movement did not see it that way and pressured LambdaConf to remove Yarvin from the event. Lambdaconf refused and the activists moved to forcing sponsors to drop out. Incredibly, Status 451 started an indiegogo campaign to save LambdaConf, which was funded within the day. This is a big victory for anyone who wants to live in a tolerant, knowledgeable, and free society, but if you want to know their motivations firsthand, please read what they have to say. Status 451 are also true believers, calling out some on the right for their similarly censoring response.
Bryan Caplan on liberalizing expertise and the link with defending free speech from the attacks of economic licensing.
A great write up on derivatives, what they are, how they work, and why it’s misleading to suggest that the derivatives market has a quadrillion dollars in risk.
Apparently the music industry thinks the DMCA doesn’t do enough to stop copyright infringers (more on the RIAA at TorrentFreak). It seems they’d like to target the safe harbor provisions of the DMCA, the only parts of it that are useful. Techdirt has a great series of posts from the other side, detailing the many abuses of DMCA takedown notices. Right now, there is no legal check on whether a takedown request comes from someone who actually owns the copyright, or even if that copyrighted work is utilized fairly for criticism or commentary. This isn’t an easy problem to solve by any means, but we should remember that the point of copyright is to encourage production of new works, and if there’s anything that YouTube does right is making it easier to create new content. Moreover, it’s helpful to remember that YouTube is run at a loss of more than $150 million a year. Trying to force YouTube to pay for content policing is one of the dumber ideas they’ve ever had, which is saying something. So what should be done instead? A good start would be to make false copyright claims a criminal offense, and require you to prove you own the copyright in the claim. It would also be good if it turned out your copyright claim was wrong, the ad-money would not go to the claiming part, but would be held in escrow until the dispute is resolved. This would allow YouTube to better focus on actual infringers and stop the torrent of false claims. Of course, another big looming problem for the RIAA is Facebook video, which doesn’t even have the semi-transparent (though flawed) takedown-notice system of YouTube. Ultimately, given how little money YouTube makes after 10 years on the internet, if YouTube was allowed to be held liable for infringing uploads, YouTube would either go out of business, or cease becoming a free platform anyone could use. This would be a monumental failure of the copyright regime; yes, it might end up getting RIAA members more money, but that is not the purpose of copyright. Copyright exists to help make new content, not destroy content platforms.
California is raising its minimum wage, eventually to $15 an hour. FiveThirtyEight’s Ben Casselman is excited at least to get some data on large minimum wage hikes, although judging from the headlines, it seems like he thinks this is a good idea. I’m fairly confident it is not, and Matt Zwolinski makes one good point to support me: the minimum wage doesn’t fight poverty. There’s a lot of data surrounding the minimum wage. And it’s apparent that unemployment does not automatically rise when minimum wage increases occur. Nonetheless, longer term unemployment effects are essentially impossible to study, and it’s likely there are some effects on businesses. If businesses could absorb 20-40% increases in labor costs easily, then why aren’t businesses getting more out of their employees, or more firms entering the business due to excess profits? There is evidence of long term job growth being harmed, as well as higher prices (see last link). Ultimately, I predict there will be negative consequences for California, but it’s hard to find something that is worth predicting. I could predict that California’s employment and workforce participation rate will be lower than the country average by more than they are now (check this in the future). It’s also likely that low cost goods will see price increases, but I don’t have an easy way to check that over the next five years.
GiveWell tries a new tactic to persuade more people to fund their top researched causes: ” First of all. Just so you understand, this guy is a total loser. He begged me to be his peer reviewer, I said ‘NO THANKS.’ Pathetic!”
I recently came across a fascinating legal concept called warrant canaries. I’m going to cover the idea briefly, but if you want to know more about them in detail, I highly recommend this Warrant Canary FAQ at the Electronic Frontier Foundation.
The context is that many online services based in the United States can be compelled by the FBI to give whatever information they have to law enforcement through National Security Letters. Those documents often gag the companies from informing their customers they are being spied on, even if the service is being provided specifically so that users can get encrypted, private communication. It’s hard to pin down the exact constitutionality of NSLs. They were ruled unconstitutional in 2013, but it looks like the case was remanded in 2015 after the passage of the USA Freedom Act. Given the government’s continued efforts to obtain information regardless of constitutionality and limitations placed on them by Congress, it would be nice if we had some way to communicate if a service was under duress from the government.
The usefulness of warrant canaries (I’ll get to what they are in a moment) is based on two legal concepts: (1) it’s not illegal to inform anyone of a warrant you haven’t been served, and (2) the state cannot compel false speech.
The first statement is common sense, since you can’t be curtailed from simply stating something hasn’t happened yet. The second is a bit more subtle; a stronger statement is that the state cannot compel speech at all, but that’s not always true. The state can sometimes compel commercial speech to inform consumers of information so they can make accurate decisions. The EFF elaborates that “…the cases on compelled speech have tended to rely on truth as a minimum requirement”.
This is essential because it allows companies with encryption products to convey highly relevant information to their customers. Companies can publicly post a message indicating they have not received a warrant because of the first legal concept, and they can immediately take down their public message when they do receive a warrant because the state cannot compel false speech.
To ensure the authenticity of the message stating that the given company has not been subject to a NSL, many go an extra step and sign their messages with a PGP key (example here).
Of course, a foolproof way to ensure no data is lost is to simply make all data encrypted, like Apple has with the iPhone, ProtonMail does for email, and everyone who has ever sent encrypted emails has been doing since the 90s. But I still like this idea, because individuals who run encryption services should not be forced to be government puppets, like the FBI hoped to do to Ledar Levison.
The weakness is that we don’t know what we don’t know, so it’s possible the government already has a new Secret National Security Letter which it uses to compel companies to lie under some made up interpretation of an arcane piece of legislation. The only real security is end-to-end encrypted communication or being Hillary Clinton.
Scott Alexander has a new post on happiness and economic growth. There must be a name for this paradox, because it’s blindingly obvious if you think about it: Right now, compare your life to the life of 100 years ago, given your current standing in society. Your life right now is way better, you have time to spend on internet learning and debating about ideas in ways you couldn’t dream of 100 years ago. You have better food choices, longer life expectancy, better pop culture, more stimulating interests, far easier communication with distant relatives, and so on. And yet, the exact same thing will be said about our lives compared to the lives of those who live 100 years in the future. Sure, those lives will be better, but I don’t know how much that bothers us today unless we really think about it. Most people are pretty excited to live today at the frontier of human knowledge, and we don’t see it as a loss that we don’t have cheap self-driving cars and instant delivery groceries for low cost.
But yet, when you do think about it, we hate sitting in traffic or having to go to the store to pick something up, and we wish we had technologies that could get rid of those inconveniences. Yet, I bet people in the future will just have other errands they hate doing just like we hate sitting in traffic. But they will be inconveniences for future people who are tolerating them so that they can do even more awesome things that we can’t imagine, just like people 100 years didn’t sit in traffic because they didn’t own cars at all.
It’s very confusing. On a personal scale, obviously it would be ridiculous to complain about your current standing, because future technologies haven’t been invented yet. So of course everyone is pretty satisfied with what technology level they live in. Yet, our lives are obviously better for having these technologies. How do we reconcile this?
In the last month, I’ve often thought that the closest president we’ve had to Donald Trump is Andrew Jackson; Trump is a loud-mouthed, populist who falls outside of the mainstream party system, yet has significant support from non-elites and were despised by the elites themselves. This is also the perfect description for Andrew Jackson, who was so successful in this movement, he founded the Democratic Party. David Friedman comes to the same conclusion via a different route.
That last link caused me to run into a real problem with Donald Trump and Andrew Jackson grammatically. One subject is dead and one is alive, so what is the proper verb tense to use? Stack Exchange suggested this, which is honestly kind of lame.
Scott Sumner discusses socialism and France. He makes a short argument that France sounds like a pretty good model country for modern socialism: high amount of skilled civil servants, broad support for socialist policies, a willing government to implement them, and a modern, developed economy. Yet, Bernie Sanders supporters often reach for the Nordic countries rather than France as the big-welfare state (“socialist”) ideal. Why is French socialist policy somewhat of a political flop, while Nordic countries are idealized? And would a Bernie-America look like Denmark or maybe better, or perhaps more like France, or even worse? Given the size and diversity of America’s population and economy, France seems closer than Denmark, although both are closer to each other than the US. The only socialistic countries of comparable size seem to be the China and the Soviet Union which have forms of socialism even Bernie Sanders would abhor. Mostly.
Bryan Caplan also has a good discussion of libertarian critiques of welfare. Matt Zwolinski has a good counter post. I like the idea of bleeding heart libertarianism, or market liberalism or whatever, so I think Caplan’s critiques are pointed at exactly what I believe, which is excellent! You always want to have your beliefs critiqued by smart people. I think Caplan is right on many of his points, but I feel like my views are more politically practical. Voters obviously want some form of welfare for the poor, and at least that part could be done more efficiently with my ideas.
This is a good write up on the decentralized crypto-currency-ish entity Ethereum; Reason also did a recent video on it. Very soon I’ll be able to explain to people what it actually does. Right after I’ve figured out how to install it. If you want to learn about it without me, here is Ethereum’s website.
Fact checking Trump on trade. Why do we talk about trade deficits? I have no idea why they matter. Is it a problem if I buy a phone from Apple and I live in New York instead of California? Is there now a trade deficit between New York and California since I sent money out of my local community? No, nobody cares. And for the US, it’s even less relevant, since those dollars that US citizens spent have to come back to the US to be redeemed for goods and services. It would be like if I paid for my iPhone in New York dollars that had to come back to New York. I’m a free trade proponent, but I’m not deaf to some concerns people might have about trade, but this is one of the worst anti-free trade arguments you could make.
Anytime we see something that challenges our worldview, it’s important to acknowledge it, and investigate whether our model of the world is incorrect, or at least to acknowledge our mistake. Otherwise, we cease to be engaging in discussion and building on knowledge. About a year ago, Josh, one of the former authors on this blog, wrote an excellent piece about how his predictions of massive failure for Obamacare did not seem to be coming true:
But now, a year further along, it seems the healthcare system isn’t doing so hot. The Wall Street Journal wrote in October:
Among this population of the uninsured, HHS reports that half are between the ages of 18 and 34 and nearly two-thirds are in excellent or very good health. The exchanges won’t survive actuarially unless they attract this prime demographic: ObamaCare’s individual mandate penalty and social-justice redistribution are supposed to force these low-cost consumers to buy overpriced policies to cross-subsidize everybody else. No wonder HHS Secretary Sylvia Mathews Burwell said meeting even the downgraded target is “probably pretty challenging.”
United announced during an investor briefing Thursday that it was expecting a whopping $425 million hit on its earnings this year, primarily due to mounting losses on its Obamacare exchange business. “We cannot sustain these losses,” United CEO Stephen Hensley declared.
Aetna, for example, has already dropped out of the exchange market in two states. A dozen of the 23 non-profit co-op plans backed by the law have already closed up shop, causing about 600,000 people to lose health plans, and a Politico analysis indicates that most of the remaining co-op plans are in trouble. Blue Cross Blue Shield of Texas and North Carolina both lost a sizable chunk of money on its exchange business during the program’s first year. The financial outlook for a number of insurers participating in Obamacare, in other words, doesn’t look good. And there are few signs that it is set to improve in the near future.
Yet, the mandates aren’t working as planned. My colleague Brian Blase recently summed up the difference between the projected numbers of people who were expected to enroll in the ACA during this third open enrollment and the people who actually did. He notes a high estimate of 12.7 million people signing up for an exchange plan. But Blase actually thinks there will only be an average of 11 million enrollees this year. That’s 16 million fewer than the Rand Corporation predicted, 11.8 million fewer than the Centers for Medicare and Medicaid Services predicted, 12.1 million fewer than the Urban Institute predicted and 10 million fewer than the Congressional Budget Office projected.
It seems more likely than not that there will need to be some sort of change to the health system. Perhaps Josh’s predictions were too dire, but overall, I would retitle his post “I was still mostly right about Obamacare”.
At least two states, New York and California, have introduced legislation that would ban smartphones sold in those states if those smartphones could not be searched under request from law enforcement. This would likely mean no phones would be sold with unbreakable encryption, although I suppose Apple or Samsung could manufacture two types of phones and then just sell all the encrypted ones from New Hampshire or something. These bills are still somewhat controversial, and as it has gotten press coverage, there has been a House bill introduced that would prevent state legislation like those bills introduced in New York and California. Continue reading Banning Unbreakable Smartphone Encryption is Stupid
“If you don’t feel like voting, don’t bother. It won’t matter. The statistical odds of your vote making any difference at all are infinitesimal.” These are the words of Megan McArdle in a sad, but amusing, piece telling you not to vote. And she’s right: your vote, at least in federal elections, is pretty worthless. Even in smaller House elections, over 80% of incumbents win.
But she’s not the only person that’s been talking about voting recently. The Left has been quite upset over new voter ID laws being implemented around the country. John Oliver even did a long segment on it.
I like John Oliver as a political commentator (and in Community). His sharp wit combines biting commentary with excellent humor, and the format of his show allows a deep dive on interesting issues. I try to watch as many of those segments as possible (they are available for free on YouTube) despite the vast differences in the way he and I view the world. Oliver’s analysis provides great starting points for discussion, and he helps me understand many critiques of issues that I would never have thought of.
While I don’t really disagree with him on the basic issue of voter ID laws, I feel like he’s missed the more profound problem about American democracy: voting is just a gimmick.
How can this be? Voting is a fundamental right! America was founded as a grand experiment in democracy! Yes, voting is very important to Americans, but why? In fact, what is a voting right? Continue reading Voting Rights Schmoting Rights
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