Drifting into Midterms

The most interesting thing I think happening in the midterms is Seattle’s ballot initiative to use approval voting.

But besides that, I’m having a hard time getting interested in the elections, and I don’t think it’s my normal libertarian neutrality either.

If you’ve got a partisan loyalty, most interesting political commentary is about how to strategically win elections. I don’t really consider myself a partisan, so my model is to ask which party or candidate is most willing to expend political capital to pass legislation that improves the world. The issues I find most important and impactful are:

  • Preparing for the next pandemic
  • Increasing immigration
  • Liberalizing housing construction
  • Protecting the rule of law

The problem I see with the midterms are that:

  1. These issues aren’t prioritized by the parties, so even if there are differences in position, the actual differences on these issues would be small
  2. The actual differences at stake in the election seem not that important

A few weeks ago, Dustin Moskovitz, the largest donor in the EA space answered a bunch of questions on Twitter, including one about US politics:

Sam Bankman-Fried is the other major EA billionaire in the space. Let’s see if Moskovitz is right.

Republicans and Democrats on the Most Important Issues

Pandemics: There were several Biden plans for a significant chunk of future pandemic funding, but then Democrats jettisoned it in favor of other priorities. Republicans seem, if anything, worse, with some even opposing the vaccines we already have despite them clearly reducing mortality.

Immigration: The story is the same on immigration. Republicans do not seem interested in reforming the immigration process, only in border enforcement. I would have hoped Democrats would counter with better border funding in exchange for clearer legal immigration paths, but they’ve not done anything of the sort. Biden decided to spend political capital elsewhere.

Housing: The Biden admin has been alright on housing, as I noted here:

But still housing is mostly a local issue. The highest impacts I’ve seen were at the state level in California where YIMBY democrats have gotten several impressive victories. I just don’t see much at stake in the national midterms on this.

Rule of Law: Democrats have a clear edge. Although they’ve taken their time, it appears that the Electoral Count Reform Act could pass in the lame duck session this year, with bipartisan support, although many more Democratic votes than Republican. That would be a solid victory, and Democrats have been talking about threats to democracy, so I can’t fault them for not trying to draw the distinction here. The challenge is that they relegated democratic reforms to the lame duck session and haven’t proposed specific forward-looking legislative reforms they’d like to pass in order to protect the rule of law, or talked about bipartisan efforts with Republicans they are undertaking. While I give this one to Democrats, I wouldn’t expect any actual legislation if they retain the Senate.

What’s Actually at Stake

Matthew Yglesias has a post arguing what is actually at stake in the midterms isn’t what most voters seem to think; for example, Democrats aren’t going to restrict immigration and neither party will have enough votes to do anything on abortion.

He did seem to skip over the inflation question, where it seems plausible to me that a Republican House or Senate could force a reduction in spending from the Biden administration, which could be positive for inflation. However, Republicans have not put forward an inflation reduction plan they’d like to pass like e.g. repealing the Jones Act or ending the Trump tariffs. Republicans also killed Manchin’s permitting reform which would unambiguously help with inflation, but Yglesias thinks they’ll reconsider after the midterms regardless of outcome.

Yglesias maintains that the real difference will be debt ceiling games, possibly centered around entitlement changes, as well as government appointments.

Debt ceiling games seem legitimately bad; if we should not spend money, Congress should vote to stop spending money, rather than voting to spend money and then not let the Treasury pay for the thing they said we were going to pay for. Shutting down the government doesn’t actually reduce any spending whatsoever. However, it’s not clear to what extent Republicans actually want to have a fight over the debt ceiling. Kevin McCarthy explicitly said they didn’t want to use it in conjunction with the entitlement cuts.

Yglesias emphasizes that Republicans want to cut popular programs like Social Security and Medicare. Now, his position is that this is bad political strategy and thus voters should reject Republicans because this is unpopular. However, I’m less concerned about good strategy and more concerned about who I would actually want to succeed. And right now, by default, Medicare will be undergoing automatic cuts in about 6 years because the trust fund will run out. Given that reality, getting ahead of the game sound like a good idea!

Finally, there’s government appointments. I also tend to think it’s bad that we can’t get government appointments completed when Congress disagrees with the president. We need people to run our government offices. If Republicans think an appointed position shouldn’t exist, they should pass legislation saying so! Not appointing people will come back to harm Republican presidents if they lose their midterms in the future, and we’d be at a much better spot if everyone agreed to pass each other’s appointments.

However, the judicial appointments game seems very zero-sum. If you’re a staunch conservative, stopping Biden appointments has some costs but a lot of upside. I tend to think conservative judges are better since they often act to restrain government power. Of course, I’d prefer if Republicans or Democrats actually passed legislation limiting government power directly since that seems like a much better and accountable system. Unfortunately, we don’t seem to live in a universe like that.

Conclusions

First, I’ve done past calculations that you should probably vote in close elections.

I think Democrats seem to be a bit better on the issue of the Rule of Law. I haven’t made a strong case on why the rule of law is good in this post, but if you’re interested, I’ve written about its importance in the past, critiquing both the Right and Left. Nonetheless, there aren’t many concrete policy promises apart from some Republicans denying Trump lost the 2020 election, which bodes ill for 2024.

Debt ceiling brinkmanship would be bad, and Republicans do seem to be talking about it, although perhaps not in relation to cutting entitlements. Of course, fixing/cutting entitlements is probably a good thing in my opinion.

Government appointment fights also seem to be a net negative for everyone. If you’re particularly conservative already, perhaps leaving lots of judicial appointments open is worth this particular cost.

Overall though, my takeaway is that I’d slightly favor the generic Democrat in most midterm races, although you should update based on the specific candidate, but I remain deeply disappointed that our political system has focused on less important issues, or indeed many issues where Congress simply doesn’t have jurisdiction.

I wrote this quickly to get it out before election day, so if you think I’m missing something, tweet at me, or leave a comment.

The Broken Electoral System: 2018 Edition

This blog voices a lot of frustrations with the American electoral system, and with election season coming up, it’s worth talking about again. The United States is a republic, but voters tend to significantly overestimate the importance and impact of their votes.

To reiterate some of what I said in 2016, your vote in November is unlikely to matter. Most Congressional elections are not close. There may be uncertainty in other, less well polled elections for lower offices, but there’s also a much higher cost to finding out who the candidates are and what they stand for. I consider myself pretty interested in the political process as I write about it often. Nonetheless, I know almost nothing about my state representative and state senator. I can (and will) look them up, and see where they stood on votes, as I can with my Congressional representatives, but this will also require looking up which state votes were important to the topics I care about, something which I may not be able to find out easily and which I’m sure other people do not have the time to do. Moreover, it’s pretty common at the federal level for legislators to try and avoid going on the record and opt instead for voice votes, and I suspect similar incentives dominate at the state level.

If I can find good information on their voting record which reflecting beliefs I find objectionable, it is not clear that I can find information on their electoral opponents. Party affiliation does help, but not every candidate from a party holds all party positions.

Additionally, even close elections that you can find information on do not necessarily map well onto issues you care about. I care about promoting free trade, liberalizing immigration and/or worker visas, ending the war on drugs, and addressing issues in the criminal justice system. Many politicians only side with me on some issues but not others, yet I only have two options for any election that is actually competitive (and again, most are not).

Moreover, most politicians not only don’t share all my positions on important issues, they have really terrible positions on other issues that weren’t even on my radar. Now I have to worry about Republican politicians looking to deport immigrants through abusive crackdowns of civil liberties. I’m also now concerned about Democratic promises to vastly expand Medicare, already the largest entitlement in the federal budget and contributor to runaway healthcare spending. I freely admit that many people do not feel this way; they feel that the “progressive” or “conservative” positions pair well on a wide range of issues, and they can identify with many others who share an overlapping set of beliefs. In this view, the inability for libertarians to find someone who shares their core issues is a function of libertarians having bad or unpopular ideas and that’s why they have no support.

I disagree for several reasons: one is that many people do not vote at all. They may not think much about politics, or if they do, perhaps they realize, as is my thesis here, that there is very little benefit to voting. It seems quite plausible that they hold ideas that differ from party orthodoxy and don’t see a reason to vote when you can only choose between party orthodoxy. Another is that a plurality of registered voters do not have a party affiliation, something that has only been true in the last ~20 years or so. It’s also true that when surveyed, many Americans express rather moderate views on a variety of issues. Finally, it’s worth noting that there is obvious intra-party tension and factionalism. There are serious groups of Republicans who do not like Trump. There are libertarian critics like Justin Amash and Mark Sanford, neoconservatives like Lindsey Graham and John McCain, as well as just stalwart conservatives like everyone at National Review. It also seems to me that there is some strong disagreement in the Democratic Party between neoliberals and progressives, and so it seems absurd that the political system only allows two parties when there is so much diversity of opinion and no way to express it electorally.

Worse still, our current two-headed system promotes partisanship and tribal extremism instead of nuance. I know several people that, when pressed, don’t really believe that the government would do a great job if we had a Medicare-for-all system or had government paid college. Yet these same people feel that if they don’t embrace these left-wing ideas, their only alternative is to be a fan of Trump, whom they reasonably despise. I’ve also experienced the reverse: conservatives that didn’t like Trump, but clearly preferred his tax policy to Hillary Clinton’s and figured Trump might not be so bad. Many now are so concerned at what they perceive as a “Trump Derangement Syndrome” takeover of the Democratic Party, they have nowhere to go but to embrace Trump. If we had a system that promoted the creation of several different groups and smaller parties, we’d have a much easier time finding a diversity of opinions and ideas.

Unfortunately, our current system also takes issues that many people generally agree are bad and just ignores them. There are policy positions I would consider to be completely disqualifying for any public servant, such as approval of a vast warrantless domestic spying program costing tens of billions of dollars a year or the murder of children through drone strikes by the president with no authorization of war from Congress. Nonetheless, there is no point to disqualify candidates from my support due to these issues because they have been widely ignored by all candidates in the major parties. Complaining about the two party system is the classic archetype of the crazy libertarian going off the rails again, but I hope others are genuinely saddened that our electoral system doesn’t offer a way to utilize our vote to oppose the murder of children by our government.

And for non-competitive elections, there may be competitive primaries, which aren’t really great systems either, as I’ve discussed before. If the primary is deciding the eventual winner of the election, it doesn’t make sense that a plurality of voters of a single party should determine the winner of a general election seat in a primary election where 90% of possible voters didn’t vote at all. For example, in the notable dethroning of high ranking Democrat Joe Crowley in NY-14, Alexandria Ocasio-Cortez won with less than 16,000 votes, in a district where some 690,000 people live, presumably with some 300,000 possible voters. PredictIt currently gives the Democrat a ~85% chance to win, although the market isn’t very liquid.

In less democratic countries, there is overt voter fraud and intimidation. The United States doesn’t really have that problem. It nonetheless does have odd echoes of a “rigged” electoral system like one you would find in low-trust corrupt authoritarian countries with poor rule of law. For example, having one side consistently win a landslide, non-competitive election (like most congressional seats) seems like something you’d find in a “fake” democracy. Having a “competitive” election between two candidates you didn’t pick and you don’t know well which doesn’t allow you to express dissatisfaction with important government programs sounds like a “fake” democracy too.

I should admit that I don’t love the idea of hyper direct democracy either. Even if voters had a reason to learn about the political system, I’m unsure if they would promote good ideas. In all honesty, I probably side with political elites over average voters on a lot of issues. That doesn’t mean I believe there is no room for reform. I’ve discussed many different possible ways to improve our system, and in fact a few weeks ago I mentioned the important opportunity Approval Voting is getting this year. Yet none of those ideas will be seriously discussed this election season.

To summarize, our election system has a variety of important and fundamental flaws. Candidates are picked in nonrepresentative primaries, many elections are noncompetitive, voter information is scarce, while voter choices are limited to two candidates who do not represent the broader electorate’s views on many issues. Other important issues are just broadly ignored while the system promotes discord and extremism. Yet there will be a significant amount of discussion about how important it is to vote in November. With these flaws I’ve outlined, I apologize in advance if I’m unimpressed by such claims.

If you believe that you see a large difference in a particular race for office that you think might be competitive, that’s great, and feel free to vote. But don’t feel bad if you believe voting is a waste of time. Maybe you don’t like Trump, but you also wish all the Democratic candidates weren’t just talking about deficit busting economic policies with poor fiscal outlooks. That’s fine because there are ways to engage politically that are more important than voting. That includes addressing our broken electoral system and raising awareness about how this doesn’t have to be the way things operate; approval voting offers a real alternative that’s being attempted right now. It’s also worth mentioning that Congress’ decline in power relative to the President means that partisan politics is now more infectious; only one of a very few competing ideologies can control the White House and the immense power it has been ceded. Meanwhile, a powerful Congress is made up of hundreds of individuals, allowing for diversity of opinion, broad coalitions, and compromise. Congress should be taking back power it has ceded to the executive branch; I would hope readers would want to make this the major election talking point it should be, instead of the libertarian-rant-footnote it is now.

In conclusion, civic engagement is important; political awareness is vital to a thriving democracy. Nonetheless our electoral system is broken in such a way that voting is not the vital civic duty it is often claimed to be. If you are concerned about the partisanship that created Trump, if you feel like a world where facts don’t matter ought to be changed, then voting isn’t enough to change these trends. That does not mean there is nothing to be done; on the contrary, reforms are needed on a more fundamental level, including changes to our voting system, primary system, and party system. Discussing and promoting those ideas is the best way forward.

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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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