The Alternative to Trump

I’ve made a couple posts detailing that Trump’s populist ideology has no real ideas, and the ideas it has are pretty universally terrible. So how do we go about opposing Trump?

After Trump won the nomination, I thought I was going to have to write a big post about picking up the pieces on the right after Trump’s loss. Turns out, Hillary Clinton was a much worse candidate that even I suspected, and now it’s the left that needs to look at themselves. I’ve got some ideas that could help them (and at least one that advances my own agenda).

However, even I have to admit that the reality is not that dire for Democrats politically, nor progressives ideologically. At last count, Hillary was winning the popular vote by 2.5 million. It seems quite possible that if they had nominated someone who was more palatable to independents and moderate Republicans in Michigan, Pennsylvania, and Wisconsin, Democrats would have done fine. No platform overhaul necessary. In fact, had Obama been able to win a 3rd term, I’d bet a lot of money he’d have won it, were he facing Trump.

However, Democrats are doing poorly in most state-level races, including the House. In light of this, and since people are talking about refurbishing left-wing ideas anyway, it’s at least fun to discuss  ways to improve the Democratic Party. Bernie Sanders stated that Democrats have to go beyond identity politics to focus on progressive ideas. I agree with this on its face, but I’m sure what Bernie really means is we should make the welfare state bigger and envelop not just retiree pensions and retiree healthcare, but universal healthcare, childcare, and free college-level education. He also seems to pair this with a strong regulatory state and reduction in some individual rights such as free speech connected to campaign financing. Rather than focusing on groups of people as representatives of ethnicities or genders, I think it’s fair to say Sanders thinks we should focus on wealth and socioeconomic status. In political coalition terms, Sanders wants to focus on revitalizing and expanding the New Deal Coalition, bringing back the white working class voters who supported Trump. This isn’t a crazy idea, but it does seem like trying to fight fire with fire, or rather, populism with populism.

Let’s take a look at a favorite libertarian tool, the Nolan chart:

The Nolan Chart splits the usual left-right spectrum into two separate political spectrums of economic and personal liberty. Theoretically, you could have as many axes as you want, with respective Nolan hypercubes.
The Nolan Chart splits the usual left-right spectrum into two separate political spectra of economic and personal liberty. Theoretically, you could have as many axes as you want, with respective Nolan hypercubes.

Sometimes this chart will be drawn with “Populism” instead of “Authoritarianism” in the bottom quadrant. “Personal freedom” and “economic freedom” are often more intertwined than this chart would like to admit, and both the left and the right can be all over this chart. When Ron Wyden argues against NSA spying and against harsher sentences for drug offenses, he’s definitely high on the personal liberty access on the left. But when Democrat Chuck Schumer supports the Patriot Act, the prohibition of aerial drones, and the banning of Bitcoin, he’s a lot lower on the personal liberty axis. Likewise, Republicans can vary from very libertarian leaning, high up on the right side (Ron Paul) to low down on the right side, ok with regulated markets and curtailing personal freedoms (Donald Trump). The problem with the new Bernie Sanders approach for the Democratic Party is that it challenges Trump for the lower middle of the Nolan chart, meeting him head-on, while ignoring the top middle of the chart. Even if there were enough voters just in that lower quadrant, The Economist points out that recently left-wing parties have struggled with populist victories, losing to right-wing populists in a litany of countries.

Rather than fighting populism with populism, I suggest a flanking maneuver for the left, countering a view of government solving most problems with a view of more personal freedom, more efficient markets, but also a government focused on solving market failures. A tolerant market welfare state, or a neoclassical liberalism.

 

I’m not the only one who has advocated something like this; Scott Alexander has an excellent Something Sort of Like Left-Libertarianism-ist Manifesto. I would really recommend reading his article on this, as the following arguments are just poor restatements of Scott’s more eloquent  points.

Markets convey valuable information and coordinate action across millions of actors with differing preferences. To quote from Hayek’s famous essay, “The Use of Knowledge in Society”:

The economic problem of society is thus not merely a problem of how to allocate “given” resources—if “given” is taken to mean given to a single mind which deliberately solves the problem set by these “data.” It is rather a problem of how to secure the best use of resources known to any of the members of society, for ends whose relative importance only these individuals know. Or, to put it briefly, it is a problem of the utilization of knowledge which is not given to anyone in its totality.

Markets are really good at solving this problem of distributed knowledge. They can then get the most efficient allocation of resources, and even direct future production towards the creation of goods most demanded by consumers.

But markets don’t solve every problem. They don’t solve the “initial” allocation of resources, when some market actors are endowed with few goods or capital. Thus, while it’s important to allow these people specifically to trade what resources they have (likely low-skilled labor hours) in the most lucrative way possible, they still won’t be able to end up with much since they didn’t start with much. In other words, some people aren’t highly skilled and may never be. Despite a nice efficient market, they might end up with few available resources. Markets also don’t solve (by definition) externalities where market transactions harm unseen third parties (pollution is the usual example).

A solution here is to create a welfare system that assists low productivity workers, while leaving as much of the market as untouched as possible. We can thus solve the problem and also continue to take advantage of the distributed knowledge and allocation abilities of markets. To be clear, most welfare programs are pretty good at giving assistance to the poor, but in the United States, they come with far too many market regulations and exceptions. Most of the most popular Bernie Sanders ideas emphatically do not leave the market untouched. His $15 minimum wage advocacy has little empirical support. Rather than punish companies for hiring low-productivity workers, we should be either subsidizing wages for low-income earners, or giving a small basic income. The cost would not then be forced upon companies that hire low-skilled workers (the opposite of what we want), but distributed among society generally (the whole point of the welfare state). The government negotiating for Medicare rates of specific procedures and the exclusive use of government bonds for the Social Security trust fund are two more examples of welfare that shun a market based approach.

Interestingly, this pro-market-and-pro-welfare approach is actually somewhat familiar in Bernie Sanders’ favored Nordic countries. While their budgets are larger than the US, in several measures, their regulatory burden is more favorable and laissez- aire, and some indices also give them stronger contract and property rights than America.

There are other benefits to this low regulation approach too. Specifically, rather than banning things we don’t like, such as the use of coal to produce electricity or drinking alcohol, we simply tax them to disincentivize their use. As Scott states, this leaves us more options. Obviously, there are some benefits to doing things the state wants to ban; otherwise people wouldn’t be doing them. Coal is burned because it’s so cheap. The problem is that its burning has externalities. If the state increases the cost born by those who burn it to better reflect the pollutants it releases, energy from coal could still be used, just not to the same extent. This is a good thing! We should encourage behavior when the benefits exceed the costs. If the state can help create better incentives, individuals will make better choices themselves without blunt bans from the government.

This neoclassical liberal approach also means an opposition to Trump’s (and Bernie’s) protectionism and anti-immigration stances. If workers are concerned about their situation in the information economy, we need to liberalize their education opportunities, or even subsidize low productivity wages. But we can’t respond with trade barriers and stifle technological progress. The defense of classical liberal values, like tolerance, the rule of law, privacy, and freedom of expression, is also fundamental to this political position, especially as all these values all under threat by Trump.

I don’t really expect Democrats or the left generally to take this approach, but perhaps I can convince a few here and there that it would make sense. Caring about what happens to the unfortunate in society is something libertarians don’t always do well, but markets still have a vital part to play in improving society. Ultimately though, over the next four years, libertarians and progressives will have to work together on some issues, such as defending civil liberties. Hopefully, progressives will realize that libertarians are allying with them for the very same reasons they opposed them during the Obama administration, and had they listened then, our problems would not be so dire now.


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The Election Doesn’t Change Trump’s Bad Policies

The Trump Issues

In the Trump election aftermath, many on the left have discussed how best to approach this new challenge. Many have talked about trying to understand the concerns of Trump voters. This is a worthwhile undertaking. The people who voted for Trump have several worries spanning cultural differences, economic hardship, and perhaps even existential fear for the country as a whole. First, let’s go over those concerns.

The first, and perhaps most important concern for Trump voters was that the alternative was Hillary Clinton. This blog had an extensive discussion on Hillary’s shortcoming including her flaunting of the law, her foreign policy, her defense of Obamacare, her tax increases, and her slant towards government power in every sphere. I would argue some of these flaws are also present in Trump, but many Trump voters could at least hope the Trump unknown would deliver something more to their liking than the known failure of a Hillary presidency.

Granting all of Hillary’s problems, why did they think a Trump unknown was worth risking? Broadly, one area we did know where Trump stood was on the culture wars, and for that he was initially hailed as a hero against the left. I think the left has to shoulder a huge part of the blame here, because people have been trying to tell progressives their culture is intolerant for years.  See: Scott Alexander on tribalism and tolerance in 2014, Clarkhat on Gamergate in 2014, this blog last year, another blog, and Robby Soave did a good job summing it up after the election. I don’t think there’s much to add here.

On economic hardship, the more stereotypical Trump supporters (Trump won older voters, rural voters, and uneducated voters) have something to complain about as well. If you want to be depressed, please read this ridiculously long piece called “Unnecessariat “ (or skim this American Conservative piece for some key points). The takeaway is that Trumpland is hurting because it has been economically abandoned, not just culturally isolated. With services dominating the economy, the prospects for those living outside of cities has diminished as well. We are seeing increased suicides, drug addiction, and hopelessness in these areas.

Finally, combine these worries with media that feeds panic about disasters and internet echo chambers, and you get stark existential panic about entirely separate threats.

Cracked had an interesting piece on Trumpism and how we got here, and what caught my eye was the idea of urban culture slowly making its way out to the country. Cracked claims that older, less educated, rural folks saw the abandonment of Christian traditional culture in these hedonistic wonderlands of coastal “liberal” cities and thought there would be dire consequences for the nation. Low and behold, they see: “Chaos…Blacks riot, Muslims set bombs, gays spread AIDS, Mexican cartels behead children, atheists tear down Christmas trees.”

The Trump Solutions

The problem is that many of these perceptions are just wrong. We are healthier, less likely to be murdered, and safer than ever before. Maybe we blame clickbait media, maybe we blame gullible people for believing it, but living in cities just isn’t that scary.

Last year, I met an acquaintance who had grown up in a smaller town in the South, but was now moving to another state near a major urban center. He found out I had grown up in his destination city, and despite having just met 5 minutes prior, he peppered me with bizarre questions about whether I thought it was safe to live there. I assured him that it was a major metropolitan area where millions live and work without a problem every day. He made it seem like he was moving to Afghanistan. Look, I’m sure it was pretty hairy to live in New York/Miami/Chicago/LA in the 80s, but crime rates have collapsed over the last 25 years. The amount of people murdered in the first season of Daredevil in Hell’s Kitchen likely exceeds the total number of murders in all of Manhattan last year. Our perspective is all off. And if we are imagining that law and order is collapsing, our solution is going to vastly over-correct.

That’s part of a bigger point I’ve already made: Trump’s political victory doesn’t mean his supporters have any good ideas about improving the country, or even their own situations. It just means enough people thought there were enough problems for more voters to cast a ballot for Trump over Hillary in Michigan, Wisconsin, and Pennsylvania. For instance, I think there is a real basis for complaining about the intolerant left-wing culture that has grown more bold over the last 10 years. But the Trump response has been his own version of intolerance, just copying the left and doing nothing to improve the situation.

On the economy, Trump’s plan is at best a mixed bag. Experts are mediocre at predicting economic growth, so figuring out the best economic policies to help growth may also be difficult. Trump and his supporters might blame globalism for their woes, but putting tariffs on imports and striving to shut down commerce with some of our largest trade partners will hit the poor the hardest. Price increases on low cost imported products will harm low income earners much more than upper middle class households with savings and easier means of substitution. Maybe in the long run this will spur some industrial investment, but I think it’s just as likely to speed up automation. In 4 years, many economic problems scaring Trump voters could easily be exacerbated.

More to the point, the government can’t reverse the decline of manufacturing jobs in the United States. Short of seizing control of the economy via a 5 year plan, the world has changed. Manufacturing jobs peaked in the early 80s (BLS), and while globalization has accelerated the trend, it didn’t start it. Of course, “globalization” isn’t really an entity either; decisions that changed where firms do business were made by millions of individuals looking at cost-benefit analyses and comparing prices. The government didn’t say “move these factories to Mexico”, the government said “Technology is making it easier to communicate and do business in other countries, so we will reduce taxes and import quotas to make it easier for businesses and shareholders to do things they already want to do”. Trump can’t come back and order companies to make bad business decisions unless he wants a Soviet-style command economy with capital controls.

The United States has such a strong economy due to many factors, including its large, diverse, and skilled working populace, an abundance of natural resources, heavy investment in research and capital, and strong and interconnected financial markets. Our consumer market is the largest in the world, our trade dominates the globe in both goods and services. International economic institutions from the New York Stock Exchange to the World Bank and International Monetary Fund are based in (and often dominated by) the United States.

Trump’s push to cut us off from strong trade ties will certainly harm the American centrality to the global economic system. Obviously, to many Trump fans, this is a bonus, not a problem. But long term decline in American trade would likely be connected to more sluggish growth as native industries are protected from competition; for example, Apple has pushed innovation in the smartphone market since 2007 which radically changed the status quo of what phones could do. It has had ripple effects throughout the economy as the spread of widely accessible powerful mobile computers has changed everything from transportation to social interaction to navigation and even shopping. But we should remember that the smartphone revolution was made possible by cheap global supply chains, and without them, we are likely to see stagnation.

And those older, rural, lesser educated Trump voters? No one is going to want to hire them unless the economy is clicking and demanding more workers. Sluggish growth with no competition bred by protectionist policies won’t help them.

Maybe Trump’s tax cuts and deregulation pushes will jumpstart the economy enough to overcome his bad trade polices. It’s possible, but I’m not betting on it. If it doesn’t work, in four years we will simply have the same economic problems just with tons more debt. That’s a big risk he’s taking. And it’s made more risky by Trump’s plan to expand the police state and start deporting at least two million people  (not to mention increasing military spending from the $500 billion a year we spend already).  The ACLU has gone into detail about the difficulties we face if Trump attempts to carry out his campaign promises. It’s very difficult to deport millions of people without doing away with probable cause; how do you find and arrest only the people here illegally? If they aren’t caught by the police while engaged in crime, then by necessity the police must come to them, requiring sweeps of entire residential areas, stopping people with no probable cause at all. At the very least this is grossly expensive, and more likely it will harass and catch thousands of innocent American citizens in a dragnet. And none of this even touches on registration of Muslims, continued mass surveillance, and use of torture.

In four years if the economy hasn’t improved much, debt has accumulated, and the police state has been vastly expanded, will Trump admit his policies haven’t worked? This seems unlikely as Trump has never really apologized for any stances he’s taken or mistakes he’s made. It seems far more likely that he’ll use this built up police state to harass his political enemies.

If Trump is willing to place trade barriers and dramatically reduce the world-leading $2.4 trillion worth of goods imported, how much will he be willing to use government subsidies to pay companies to “invest” in the United States? Does this sound like government direction of the economy? If things aren’t going well, will he seize more control of the economy?

I should note, I haven’t even brought up Trump’s extensive conflicts of interest, where representing American diplomatic interests may run counter to his profit-seeking ones. I also haven’t mentioned that someone who is extremely thin-skinned will be in charge of the nuclear launch codes. Many of the concerns of Trump voters don’t make much sense, many of the policy solutions of Trump and his voters are bad and would make things worse, and on top of that, Trump is irresponsible, incompetent, authoritarian, and many other things I’ve argued before. Continued opposition to Trump’s policies is vital over the next four years.


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Against Trump

In my last post, I made the case for why voting for a main party was far more likely to be a wasted vote than a vote for third party.  I made this argument on the basis of the presidential voting system itself, regardless of any voter’s actual policy preferences.

Nonetheless, if you think Hillary Clinton or Donald Trump have the best policies or ideology, at best my argument should make you indifferent between voting for one of those candidates or leaving it blank (I advocated that one should still vote because of the often overlooked importance of local elections). If you prefer Donald Trump, this post will be my argument for why you shouldn’t. This is not an endorsement of Hillary Clinton, and I hope to write a post against her candidacy next. But there is a third option. I’ve already laid out the case for why it is more practical to vote for a third party rather than waste your vote on the Democrats and Republicans, but this post will show why you should prefer Gary Johnson’s moderate-limited-government-libertarianism to Trump.

Trump: The Troll

The most basic foundation of Trump’s appeal is his fervent opposition to the cultural left, especially the social justice movement and political correctness. In some sense, it doesn’t matter what he says; because he has said ridiculous and outrageous things, he has provided a “safe space” for people who can’t stand the recent domination, real or perceived, of left-wing outrage politics. The cultural left has created a tough situation for their opponents: if you don’t agree with them, they label you as a misogynist, fascist, and white supremacist. The alt-right was a fairly typical human response: they took the insults as a badge of honor.

So what has the left done about Donald Trump? A pretty common response (New York Times, Huffington Post, Vox) is to call him racist! Take a look at these accusations from that Huffington Post article:

  • He attacked Muslim Gold Star parents Khizr Khan and Ghazala Khan. His attack didn’t address their criticism, but suggested Mrs. Khan didn’t speak because of her religion.
  • The Justice Department sued his company in 1973 for not renting to black applicants, and there are stories from employees alleging that he was racist
  • He didn’t condemn David Duke’s support until the next day
  • He questions whether Obama was born in the US
  • He tweeted a picture of him eating a taco bowl to show he loves Hispanics
  • He condoned the attack by his supporters of a Black Lives Matter heckler at a campaign event
  • He claimed Judge Gonzalo Curiel was biased because of his Mexican heritage (Curiel was born in Boston).

These are all awful, insensitive, and moronic actions, but calling them racist or Trump a racist for doing them tries to equate Trump to the level of the KKK. If Trump is fundamentally appealing because he doesn’t back down from outrage tactics, and his supporters are tired of the left screaming that every deviation from progressive orthodoxy is white supremacy, then calling Trump racist is the worst thing you can do. And honestly on many of these issues, Trump is professionally trolling, going just over the line on what is acceptable to draw the outrage.

For example, Trump says he responded to the Khans because they criticized him first, which is true. His response was characterized by an attack on Ghazala Khan and an assumption about her actions due to her faith. This isn’t directly saying that Muslims are inferior, even though there is an implication. But if we just call this out as being “racist”, we really lose out on our argument demonstrating just how awful this episode was for Trump. In fact, Trump supporters can point out that many Islamic countries treat their women poorly and so this is worth questioning. By doing this, we let Trump deflect just how abysmally he managed that political catastrophe; instead, we should be discussing that Trump had no actual response to Khan’s accusations of his unconstitutional policies, and instead had to resort to unfounded assumptions and speculation. He would rather make up things about a family whose son died serving this country because he felt insulted than suck it up and avoid any more fallout. The sheer political incompetence is unspeakable, and the unconstitutionality of many of Trump’s policies remain unanswered.

Many other examples I listed also let Trump get away with absurd positions by jumping immediately to racism. His run-in with the Justice Department is important, but was also over 40 years ago. Was it his fault or his company’s, and does he still have those opinions? The idea of a government agency forcing him into a settlement on allegations of racism is also exactly the conspiracy narrative Trump wants. It seems likely he knows who David Duke is, but I’ve continually overestimated Trump’s abilities in other areas. And just having terrible people endorse you doesn’t automatically make you a bad person too. Trump likely supported the story Obama was born in Kenya because Obama’s father was originally a Kenyan national. It seems pretty easy for Trump supporters to argue he would have demanded a birth certificate of any person whose parentage was outside the US. Calling this racist really lets Trump change the subject to how PC culture is bad, when really we should be focusing on how much of an idiot you have to be to waste so much political capital on a conspiracy theory that was obviously wrong. There were plenty of grounds to criticize Obama’s policies, yet Trump decided to focus on discrediting his legitimacy through a conspiracy theory rather than actual ideas.

Calling it racist when Trump condoned an attack on a protester at his event is sort of the epitome of political correctness gone wrong: it implies that as long he condones violence against protesters of all races at his campaign events, it’s ok. The problem is not the race of the victim, the problem is that he’s condoning violence against people who disagree with him.  His statement against Judge Gonzalo Curiel is almost blatantly racist, as even Paul Ryan states, yet Trump could have easily cited Sonia Sotomayer’s “wise Latina” quote as evidence for why he believed a judge’s ethnicity could influence their opinions. If we get outraged about this, we fuel the perception that social justice not only has a monopoly on outrage politics, but that when the exact ideas that are promoted by the left are used by the right/conservatives/whatever-Trump-supporters-are, only they are attacked. It seems to be targeting of tribes, not even of ideas.

And that’s the point. Trump engages in a motte-and-bailey doctrine where he says things that obviously imply bigotry or outright harming non-Americans, but then if you call him on it, he deflects or calls it a joke. This is an annoying tribalistic tactic (often employed by social justice warriors and also Ann Coulter) where a group will make a ridiculous claim, but really support a weaker version of that claim (see part IV here). As Scott Alexander says, social justice warriors seem to imply ridiculous things like “men can’t be part of a discussion on gender”, but when challenged, they state more defensible positions like “men shouldn’t interject into safe spaces for women”.  Trump says some Mexicans coming over the border are rapists, with the implication being that the average illegal immigrant is a violent criminal. But if you call him on it, he’ll say that he also said “many of them are good people!” which is technically true. He also didn’t say 2nd amendment supporters should shoot Hillary Clinton, but he left it open.

Trump is in part successful (and especially appealing to the alt-right) because he meets social justice warriors with their own methods, and it’s hard to pin him down on anything because his entire presidential run is a giant troll. Of course, I really dislike many of the tactics of the social justice movement and the outrage tactics of internet culture wars. I’ve gone on the record about why I think their ideas and methods are bad. I understand the appeal of fighting fire with fire. But it won’t solve our problems. All of the criticisms aimed at the social justice movement still apply to Trump. We should be trying to elevate our society and discussions, not give in to the temptation to debase them. Collectivism is evil in all its forms, left-wing, right-wing, and bi-partisan.

Many Trump supporters have bought into his campaign as the only way to fight the social justice left. They are wrong on many levels; trolling can’t beat trolling, flip-flopping and incompetence can’t beat Hillary’s political machine, protectionism can’t beat markets, and nationalism and authoritarianism can’t beat freedom. In fact, by allowing Hillary Clinton, one of the weakest presidential candidates in recent history, to continue to dominate this election, Trump has handed the left one of their biggest political victories and squelched one of the biggest opportunities for American conservatives.

And Trump is not the only way to fight back against the worst methods and ideas of blue tribalism. One can oppose collectivism without sacrificing principles or lowering the level of dialogue. As I go through the following deep flaws that Trump has, keep in mind that Gary Johnson has none of them.

The Unknown

What does Trump actually believe? It’s almost impossible to know. These are just the positions I could find so far. I don’t think this list is comprehensive, but I want it recorded somewhere. Many of these are from this ABC news post, this CNN article, and this extensive NBC news article if they’re not otherwise cited.

  • He used to think pretty highly of Hillary Clinton and even invited the Clintons to his wedding, and now apparently thinks they are terrible.
  • Trump declared that he thought Obama was the founder of ISIS, and when pressed on Hugh Hewitt’s radio show, he doubled down. Then after a full day of focusing on this point, he abruptly tweeted that it was sarcasm.
  • Trump was going to self-fund his campaign and not fund raise. But he’s gone back on that promise and is now taking money from whomever will give it to him. He was so short on money, he hadn’t even bought TV ads until the last week of August.
  • Trump started out ok with taking Syrian refugees, and then reversed his position and now wants to send them back.
  • Trump initially stated that Japan and South Korea should defend themselves, including with nuclear weapons. Now he says that’s preposterous and he never said that. How do you suffer amnesia about advocating the biggest change in US nuclear policy in history?
  • Trump has relentlessly hammered Clinton for supporting the Iraq War in 2003. It turns out in 2002, he backed the Iraq War too. Also, when asked about Mike Pence’s support of the war, he said it didn’t matter to him. But it still matters that Clinton backed it.
  • Trump made headlines stating he wanted to be a “neutral guy” in the Israel-Palestine conference (a big change from US policy which has held a strong alliance with Israel), and then said Israel was being treated like a second-class citizen later on.
  • Trump has also called the Libyan intervention a total disaster, but he in fact backed this intervention as well. When shown a video of his previous support, he acknowledges it and says he only wanted a “surgical” strike.
  • Trump was originally pro-choice and is now pro-life and even advocated that there should be “punishment” for women who get abortions. Admittedly in that interview, Chris Matthews did a good job of cornering Trump and not letting him get away with dodging the question, so maybe Trump doesn’t actually believe that. But that’s my point: we have no idea what this guy is going to do.
  • Trump advocated the use of torture especially against ISIS and suspected terrorists. When dozens of military advisers pointed out he would effectively be telling people to commit illegal acts, he stated “if I say do it, they’re gonna do it.” The next day Trump said he would be bound by laws just like any president, and then proceeded to call for waterboarding and torture in subsequent speeches.
  • Like abortion, Trump used to have a very different view on gun laws and actually supported an assault weapons ban. Now he’s a strong 2nd amendment supporter. Except in classrooms. Unless it’s a teacher in a classroom. What?
  • Trump was against raising the minimum wage, then for it, then said he wanted to leave it to the states, now says it should be over $10 and left to the states.
  • Trump has been for a single-payer system in the past and has praised Canada’s and Scotland’s system. But he hates Obamacare. But maybe he still likes the mandate. But he doesn’t know what he’d replace it with. His current website’s plan is a pretty good free market approach, but what would he actually pursue?
  • Trump was going to increase taxes on the rich, then said he would cut everyone’s taxes by huge amounts in an online proposal (that this blog looked at), then reduced the amount he would cut, and now it’s a pretty standard small income tax cut with an additional tax break for childcare
  • Trump seems to have called for a renegotiating of U.S. public debt similar to a debt restructuring for an insolvent firm. He seemed to have no idea that U.S. treasuries are so cheap to borrow with because they are never defaulted on. He even indicated that the U.S. can always print more money. Then he seemed to walk it back and say he wouldn’t renegotiate the American debt.
  • Last December Trump called for “a total and complete shutdown of Muslims entering the United States until our country’s representatives can figure out what is going on.” In May, this changed to a “suggestion”. Then he added the idea of banning people from places with a “history of terrorism”, then added there would be “extreme vetting” (so not an outright ban?). Trump and his people also added that there had been “no change” in their policy since December.
  • Trump has stated that he would deport 11 million people currently residing in the US illegally. This is significantly larger than the current population of New York City. Then he said he would deport them all, but bring back the “good ones” legally. Buzzfeed even reported that Trump stated off-the-record that deporting all 11 million is just a starting point for negotiations. Just a couple week’s ago, Trump seemed to abandon deportations altogether. Now it seems they are in full force again.

I should also note that Trump said he would call Bill Gates and get him to shut down the internet if need be. I didn’t list that here because I don’t think he ever repudiated that position so it’s not a “flip-flop”.  Trump also suggested Ted Cruz’s father was involved in the Kennedy assassination. Even on Trump’s most common talking point, his “wall” on the border with Mexico is obviously not true because, as John Oliver points out, it will cost far more than Trump says it will, and there is no way we can force Mexico to pay for it. Adding a tariff on Mexican imports does not force Mexico to pay for anything, it forces American consumers to fund the wall.

This is related to questions of Trump’s temperament; it appears that on many of these interviews, Trump has either never thought about the issue presented to him, lied about his position last time so he can’t remember what his position was, or just honestly changes his position because he’s not smart enough to have foreseen the objection, but wants to appear knowledgeable and so says that was his position the whole time.  The bottom line is that on virtually every issue, even the core issues he’s maintained, we have no idea what he will do.  On top of all this, Trump is capricious and easily offended. He has consistently filed lawsuits against press organizations that have criticized him, regardless of their ineffectiveness and potential attack on free speech. Do we want someone who has no principles, who has no idea where he stands on issues, and can be easily manipulated by his political enemies (“I don’t have thin skin”) to be in charge of our country’s national defense? The Supreme Court is an important issue in this election, but what makes us think we can trust Trump to actually pick from among the names he has mentioned before when he has changed his mind on everything else?

On many issues, he has taken positions not just worse than Gary Johnson or Hillary Clinton, but positions worse than any president in history. Will these be the positions he takes or will they change? Will any of his positions that sound reasonable stick around once he is president? We don’t know.

The Incompetence

Trump has a record of questionable business acumen as well as straight-up fraud. He certainly has done well in the real estate market, but in other ventures he’s been mostly a flop.  He has also widely exaggerated his net worth by constantly trying to tout his own brand. And, by admission of its own employees, Trump University had no interest in teaching any of its customers, only in selling them the most expensive seminars it could.

His political campaign has also been questionable. We will get to policy in the next section, but for now let’s just talk about Trump’s job as a politician, which is to get people to vote for you.  As I noted in May, Trump was one of the worst candidates the Republicans have had as far as political appeal.  He won the Republican presidential primary with only 45% of the vote. By itself, a number that low isn’t unprecedented, but when combined with the fact that most of his primary opponents have decided against endorsing him, he was one of the least liked Republican candidates among Republicans in recent memory.  He’s also only averaged above 40% in FiveThirtyEight’s polling average and above 44% in RealClearPolitics’ average for a couple weeks in July. He has never really pivoted to the general electorate. Trump has had several changes in his campaign management due to apparent incompetence. He will be the first presidential candidate since Nixon to not release his tax returns, and he has just started airing TV ads. That’s correct, Gary Johnson was outspending Trump on TV time until September.

Trump’s response to his abysmal appeal has been to suggest that all polls that don’t show him winning are rigged. In fact, Politico even published a column entitled “What if Trump doesn’t accept defeat?”  As already mentioned in this piece, he got into a very public spat with the parents of a Gold Star soldier who had given his life in 2004. He also said that “there must be some form of punishment” for women who get abortions, and then Ben Carson said that Trump wasn’t expecting that question. Trump wasn’t prepared for a question about abortion in a political event while running for President? You cannot be serious.

What is Trump’s plan in office when foreign heads of state ask him obvious questions he should know the answer to? What is he going to do when people don’t automatically like what he has to say? He has failed in essentially every venture that wasn’t real estate or a reality TV show. The inability to make changes for a better long-term strategy combined with the need to retaliate over every perceived insult disqualify Trump from being Commander-in-Chief.

The Policy

As I’ve stated, it’s hard to nail down what Trump believes on anything.  It often appears like he has never thought about policies or the implications of policies until objections are brought up to him.

One aspect that had been central to Trump was a hardline stance on immigration and deporting illegal immigrants. As of a couple weeks ago, he appears to have flipped on that and now flipped back, but his website still has language that appears to indicate serious criminal charges for anyone living here illegally. Even if Trump has become less focused on deportations, his immigration policy comes with absolutely massive costs, both fiscal and legal. As noted by John Oliver, his “wall” on the Mexican border will likely cost several times as much as he’s claimed, not to mention the hidden costs of wasting construction time and resources on building a concrete wall literally in the middle of nowhere.  If this project ever does happen (which it won’t), it will cause the cost of construction and related services to go up as resources are pulled into a giant wasteful wall. Moreover, as Trump’s website acknowledges, most illegal immigrants don’t sneak over the border; they cross with legal visas and overstay them, and so this wall will do almost nothing to stop illegal immigration.

There are also effects on American citizens as well who are forced to deal with questionably constitutional Border Patrol stops where people are pulled over with no reasonable suspicion or probable cause. Trump has also focused on crime caused by illegal immigrants, despite the fact that crime rates are much lower among this segment of the population than among American citizens. Terrorism, as noted by this blog, is so unlikely that the threat of terrorism via immigration is not even worth addressing.

Moreover, there is a self-evident free market argument for immigration; if the economy would work more efficiently without immigrants, they wouldn’t be coming. Specifically in the United States, immigration helps to expand our workforce while European economies shudder under high levels of retirees and low birthrates.  The OECD has also found that because immigrants come to work, they are productive enough to pay more in taxes than benefits they get out. Trump’s arguments for making H1-B visas harder to give out and more expensive just creates an incentive to ship jobs overseas rather than keep them here. Overall, it seems better for Americans (and likely the global economy) to keep immigrants coming here than to ship the jobs overseas.

There is certainly an argument that we haven’t seen this level of immigration in the United States in a while, even on a percentage scale. Immigrants now make up 13% of the population, but that’s still less than was common during the late 19th century. There’s also the true point that most immigration prior to the ending of national origin quotas in 1965 was from Europe.  Yet, since this is essentially a cultural and not an economic argument, at best this still argues that we should have open immigration–just from some countries and not others. It also doesn’t offer resistance to other forms of open immigration, such as for advanced degree holders (especially graduates of American universities).

We also have to acknowledge that there really are serious obstacles for potential immigrants right now…which has only resulted in illegal immigration. Trump acknowledges the economic burden of an over-regulated economy, but then proposes tons of new regulations on immigration. Using the state to pick winners and losers in the economy is a dangerous thing to do.

Trade is the other area Trump has been most outspoken on. Here, unlike immigration, there is no cultural argument, there is only economics. And it’s clear that when it comes to trade economics, Trump has no idea what he’s talking about. He would add tariffs to goods, making them more expensive for average Americans and cutting into middle-class purchasing power. He would start trade wars with China, and attempt to reverse foreign governments subsidizing their own exports which directly deposits foreign tax revenues into the pockets of American consumers. The protectionism he advocates is essentially an argument for the global economy to leave the US behind and to ensure that new technology and innovation is happening elsewhere while our economy stagnates and our lack of dynamism and competition gets even worse.

Why is Trump suggesting this? Bryan Caplan points out in The Myth of the Rational Voter that voters are subject to many biases, most of which you can find in Trump’s policies. This includes, among others, an anti-market bias and an anti-foreign bias, where voters tend to underestimate the benefits of market systems as well as underestimate the benefits of interacting with foreigners. But despite these biases, free trade is immensely good for the economy. Tariffs being some of the most regressive taxes we have, freer trade is also a big tax break for poor Americans relative to the rich.  Trade, along with immigration, is one of the best areas in which American policy can directly improve the world.

The Authoritarianism

Let’s take a quick history detour: in 1972, five men were arrested for breaking into the DNC’s Headquarters in the Watergate Complex. They had been sent by the Nixon reelection committee, and the Nixon administration immediately sought to cover up their involvement. Nixon actually ordered the CIA to block the FBI’s investigation into the burglary, claiming national security issues.  The administration hoped that would prevent any further prying, but as more details came out, a Senate select committee was established in February 1973 to investigate a possible cover-up, and a special independent investigator was appointed by the attorney general.

When a Senate hearing uncovered that there were tapes of all Oval Office conversations, the Senate and special prosecutor subpoenaed the tapes, which Nixon refused to turn over, citing executive privilege. When the prosecutor persisted, Nixon actually ordered the attorney general to fire him, and the attorney general resigned in protest. Solicitor General Robert Bork eventually complied, but under political pressure, Nixon appointed a new special prosecutor. Edited transcripts were released in early 1974, which showed Nixon in a poor light, although they did not fully incriminate him. The new special prosecutor subpoenaed specific tapes which Nixon again refused to turn over. The case went to the Supreme Court which ruled unanimously that Nixon had no unqualified privilege of immunity from investigation, and that he had to turn over the tapes. Nixon did. They revealed clear wrongdoing on his part, and the House Judiciary committee recommended impeachment on several counts. Knowing he would soon be impeached and likely removed by the Senate, Nixon resigned.

There was a backlash against the office of the presidency after Nixon, but we have fully reversed that trend today. The Bush and Obama administrations have undertaken naked power grabs that have helped create an imperial presidency beyond anything Nixon ever dreamed of. Many libertarians have been warning about these massive power expansions for years. Now in the face of the Trump administration, we’ve created all the tools a tyrant would need to run amok.

As Conor Friedersdorf notes in The Atlantic:

  • The president can order American citizens killed in secret.
  • The president can detain prisoners indefinitely without charges or trial.
  • The president can order drone strikes at will in countries against which no war has been declared.
  • The president can start a torture program with impunity.
  • The president can conduct warrantless surveillance on tens of millions of Americans.

To that I would also add that if deemed a troublemaker, the government has plenty of options to attack you without disappearing you. We know at least the DEA and IRS have used NSA information gained through mass surveillance of Americans, and then obscured this source by finding another stated reason to stop a suspect. The enormous amount of statutes on the books means it’s almost certain average people break laws every single day, and so these law enforcement agencies can always find probable cause to arrest you. Then they can stack up charges to force a plea deal, all at the discretion of prosecutors.  As it stands right now, there’s a strong case that the criminal justice system is biased, slow, and unfair, and that it deprives individuals of their rights. But now imagine Trump in charge of the DEA, FBI, intelligence services, and the military.

Trump administration could be even worse than Nixon; given Trump’s continual flip-flopping, his trolling, his total unpreparedness for obvious challenges, and his terrible policy ideas, we don’t actually know if Trump understands how government works. Many of his fantastical policy ideas on his website go beyond the usual politicians’ wishlists; it’s unclear whether he would even try to sell his agenda to Congress, or just try to implement it with executive authority, or indeed if he would understand the difference.

For example, nestled in his immigration policy is a call to end birthright citizenship. Does Trump acknowledge what that would require? As Rand Paul has noted, the 1898 case US v Wong Kim Ark declared that children of legal immigrants were automatically citizens. It seems that Trump wants to overturn this case, which would require a constitutional amendment. It’s possible Trump wants only to stop birthright citizenship of illegal immigrants (he keeps changing his positions on everything), but does he want to do this with a law, or a legal battle? Does he realize that the president can’t pass laws unilaterally? It’s also worth wondering what Trump believes he can actually do on abortion. We’ve already discussed his bewildering stance that women should be punished for getting an abortion, a position basically no one else has ever advocated for. But does he realize that he would need to pass a constitutional amendment to achieve that goal?

Another example, he declared on a debate stage that if he told the military to commit war crimes they would do it. That’s not only against US law, that’s against international law. If he thinks that he can do things as president that are already illegal, what makes us think he would be waiting for Congress to do anything? How about shutting down parts of the internet? In Trump’s own words: “Somebody will say, ‘Oh freedom of speech, freedom of speech.’ These are foolish people.” How about banning people based on their religion? Do we think Trump will wait for Congressional approval of obviously unconstitutional ideas? Or will he just order that they be done without thinking, just like everything else in his campaign?

The ACLU has released a 27 page memo on things Trump has said that are blatantly unconstitutional. It makes an excellent legal case against Trump’s ban on Muslims entering the country as well as his mass deportation of illegal immigrants. The magnitude of individual rights violations from deportations specifically would be staggering, as there is no way to arrest millions of immigrants without also arresting regular American citizens and legal residents as there is no way to tell them apart. Arrests would have to be done without probable cause and largely based on racial profiling with likely hundreds of thousands of law abiding people caught up in the dragnet. The police state necessary to accomplish such an action is likely beyond even the secret police organizations of former communist nations.

The ACLU memo also makes an important point concerning Trump’s promise to “open up the libel laws”: there are no federal libel statutes. What exactly Trump would do were he to be president and then find out that there are only state libel laws, I have no clue. But imagine the powers of the Justice Department in the hands of someone who has a history of abusing eminent domain and using the power of the justice system to silence critics. He has already blacklisted media outlets he doesn’t like and banned them from his campaign events. As Damon Root of Reason notes: “Just like a crybaby advocate of political correctness, Trump wants to hollow out the First Amendment in order to make a ‘safe space’ for himself.”

It’s not hard to see the abuses of the Nixon administration repeated under a hypothetical Trump one. But in 1974, when Nixon lost his appeal to the Supreme Court, he still turned over the tapes. I don’t know if we realize how vulnerable our constitution was in this moment. Constitutional power is not something physical; as Abraham Lincoln proved, the Supreme Court has no enforcement arm. In retrospect, if Nixon had just wanted to maximize his political power, it seems that his best plan would have been to not release the tapes and accept whatever political fallout that was. Maybe he would have been forced to resign, maybe not, but he only risked being in the same situation that actually happened. Trump has arguably already promised to do more unconstitutional things than Nixon ever did, and he’s less popular than Nixon ever was before Watergate. If in a similar situation, would Trump comply with the Supreme Court? With Congress? He’s already calling the election rigged before it’s even happened, and he doesn’t seem to believe polls that report him far behind Clinton (which he is). If he found himself thwarted by the other branches of government, would Trump allow the rule of law to occur, or subvert it using his executive authority? Would he even care that his actions were unpopular given how unpopular he already is?

Most of the problems in this section also apply to Hillary Clinton, and it is likely she would continue to abuse government power just like the Bush and Obama administrations. But while Trump may be running against Hillary, I’ve already made the case that your only decision in voting is whether to waste your vote on a main party, or help get a third party better ballot access. Gary Johnson specifically has been an outspoken critic of the advances of government power and the growing authoritarianism centralized in the presidency. If you want to stand against the increasing authoritarianism of the federal government, there is no way to justify voting for Trump over Gary Johnson.

Trump has many problems as a candidate: he is inconsistent, incompetent, and he reduces our ability to have real discussions. His policies are bad, but his authoritarian threats should give us the greatest pause. Would you vote for Richard Nixon today if Nixon told you he was going to abuse executive authority to preserver his own power? If he continuously attacked free speech and criticism, if he promised to arrest millions of people living in the US, do you think voting for him would be a good idea? Well, it’s not a hypothetical, all of these policies are literal quotations from Trump himself. You shouldn’t vote for Nixon, and you shouldn’t vote for Trump.


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Picture credit: Gage Skidmore, modified by postlibertarian.com (grayscale), licensed under BY-SA-2.0.

Rawlsian Rebuttal to Inequality Concerns

This was stolen from a comment on this week’s EconTalk with Richard Epstein.

The concept of the rich getting richer and the poor getting poorer is oft-repeated, although according to my Google results, many of the top hits are articles disproving it. Despite this, sources from the Washington Post to Gawker to Thomas Piketty have talked about inequality and its negative consequences.

On EconTalk Russ Roberts stated the following:

I want to create a Rawlsian veil of ignorance…where we’re going to imagine different states of the world, but you don’t know where you’re going to be in those different states.

First state of the world is 1900. You might end up being a rich person or a poor person. The next state of the world is 2016.  Again, you might end up being a rich person or a poor person. I think most people alive today…would prefer to have a random shot at a 2016 life than even actually to be in the upper 10% or 5% in 1900.

This is a fascinating application of the Rawlsian veil of ignorance, an excellent moral and political philosophy tool. As Russ states, under a veil of ignorance, we take a society and imagine that we could be randomly assigned the life of anyone in that society. Usually this is used comparatively to accept or reject certain layouts of society.  For example, I’ve personally heard economists discussing surveys based on the Rawlsian veil of ignorance where most citizens would choose to live in a more equal society than they think they live in.  Interestingly, most people underestimate the level of inequality in most western countries compared to the actual level of inequality, and would choose societies more equal than what they estimate society to be. The implication is that people’s own revealed preferences when they put themselves in the position of an outsider is to advocate for more income redistribution.

However, there are some links between economic growth and inequality; it may be hard to have one without the other.  If that’s the case, an important question to ask is whether you’d want to be in a poorer economy with low inequality or a richer economy with high inequality. Russ’ thought experiment does this pretty well. It’s also worth comparing today’s economy with the 1970s or 80s. Would you choose to be randomly placed in more equal 1980 or less equal 2016?  Today cars are safer, communication is better, food costs less and more varieties are available, and life is better in immeasurable ways.

What if you were guaranteed to be in the top 50% of the world in 1980? What if you were guaranteed to be in the top 50% of the US in 1980? What level of wealth would you need to guarantee before you stopped risking being a poor person today?  It’s an interesting question, and uses our own intuition to counter the notion of the “rich getting richer and the poor getting poorer”.

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Efficient Advocacy

It’s incredible how simple and yet revolutionary the principles are behind effective altruism as well as the ideas behind GiveWell and the Open Philanthropy Project; if you want to help people, don’t just donate to a charity that is looking to cure a rare disease, donate in a way that can do the maximum amount of “good” per dollar.  That often means donating to a problem that affects many people, that has known, measurable, positive solutions, and that has lots of room for additional resources to combat the problem.   If you don’t know about those organizations, you should definitely check them out.

Of course, there is an obvious elephant in the room when it comes to effective altruism: politics is complex, unscientific, and unpopular. In fact, GiveWell largely sidesteps the political sphere, ignoring a big swath of human activity which has tremendous impacts on society.  Of course, they have good reason to do this; it allows them to focus on doing good things without harming anyone’s tribal identities or alienating their donor base. Moreover, it’s hard to get good unbiased data on what political policies would actually provide benefits; if there was, politics wouldn’t be so divisive.

However, I don’t have a donor base, and I have slightly different feelings on which policies would be most effective than the average American or even the average effective altruist.  I wanted to see what would happen if we could assume away some of the unknowns about political policy.  Let’s assume that the postlibertarian philosophy this blog espouses is correct: markets are pretty good at allocating resources efficiently, government policy can help address some economic areas where markets might not work (inequality, externalities), giving the state power is generally a bad thing and must be justified, and individuals should have robust protections from their government. We aren’t assuming away the current political landscape of the US, we’re just assuming we’re right.

So what would a libertarian trying to maximize efficiency in advocacy do? Do you try and emulate the Koch brothers and create or fund political organizations that change policy outcomes? Do you focus on viable candidates? How much do you accept the political process as given? Do you focus on political reforms (proportional representation), education (IHS, Economics of Library and Liberty), or do you try to work on making your own rules (crypto, seasteading, space exploration)? Let’s leave those hard questions for another time, and focus on perhaps the most mainstream approach to politics: how should you prioritize the importance of various political issues? People usually have specific issues they care about that determine which candidate they’d like to back, and the Open Philanthropy Project even has a U.S. policies page.   But which issues are actually the most important? Continue reading Efficient Advocacy

Your Candidate Sucks: Democracy Troubles

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!

Wikipedia counts 17 Republican candidates. We won’t spend lots of time on all of them, but it’s worth seeing some of the candidates that were rejected. Continue reading Your Candidate Sucks: Democracy Troubles

Should Tesla charge more for their cars?

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.

In the past couple weeks, Tesla has received 325,000 almost 400,000 Model 3 pre-orders.

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.

Follow-up: Not that wrong about Obamacare

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:

I Was Wrong About Obamacare

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.”

Late in December, Reason reported:

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.

And also in January:

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.

February:

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”.

 

Legalize Organ Markets

In 1996, Hurricane Fran hit Raleigh, knocking out power and trees. Duke Political Science Professor Michael Munger describes the response of several citizens from a neighboring town who decided to exploit the situation.  These budding opportunist entrepreneurs rented some refrigerated trucks, filled them with ice and drove to Raleigh, where they sold the bags of ice for about $8 each.  Raleigh police eventually arrived, arrested them for price gouging, and allowed the ice to melt with virtually none distributed to the locals.

Continue reading Legalize Organ Markets