Grading 2019 Predictions

I make predictions every year to put empirical tests on my model of the world. I tend to do a lot of predictions, in order to get a larger dataset, and at the end of the year, I grade them. These were made last year in March.  I’ve placed levels of confidence for each prediction with the odds I would bet on those outcomes in the vein of Bryan Caplan. I’ve created a chart at the end to show my calibration versus perfect calibration.

  1. Trump Approval Rating end of year <50% (Gallup): 95% ✔️
  2. Trump Approval Rating end of year <45% (Gallup): 90% (was 45% exactly)
  3. Trump Approval Rating end of year < 40% (Gallup): 70%
  4. US will not get involved in any new major war with death toll of > 100 US soldiers: 60% ✔️
  5. No single terrorist attack in the USA will kill > 100 people: 95% ✔️
  6. The UK will not leave the EU this year: 80% ✔️
  7. North Korea will still be controlled by the Kim dynasty: 95% ✔️
  8. North Korea will not conduct a nuclear test this year: 60% ✔️
  9. North Korea will not conduct a missile test this year: 60% They conducted 10, with several launching many missiles
  10. North Korea will not agree to give up nuclear weapons entirely, contingent on US troops staying in the Korean peninsula: 99% ✔️
  11. North Korea will not agree to give up nuclear weapons as a result of any negotiations: 90% ✔️
  12. Yemeni civil war will still be happening: 70% ✔️
  13. S&P 500 2019 >10% growth (from 2506 on Jan 1): 60% ✔️
  14. S&P 500 will be between 2400 and 3100: 80% (80% confidence interval) was 3231
  15. Unemployment rate December 2019 < 6%: 80% ✔️
  16. Unemployment rate December 2019 < 5%: 70% ✔️
  17. WTI Crude Oil price up by 10% (from $45.41): 70% ✔️
  18. Price of Bitcoin in dollars up over the year (Coinbase – 3823 Jan 1): 70% ✔️ was $7163
  19. Price of Bitcoin < $8,000 (does not double): 60% ✔️
  20. Price of Bitcoin > $1900 (does not lose half value): 70% ✔️
  21. Price of Bitcoin < $12,000 (does not triple): 70% ✔️
  22. Drivechain opcodes not soft-forked into Bitcoin: 80% ✔️
  23. No drivechains soft-forked into existence: 99% ✔️
  24. US government does not make Bitcoin ownership or exchange illegal: 95% ✔️
  25. Self-driving cars will not be available this year for general purchase: 95% ✔️
  26. Self-driving cars will not be available this year to purchase / legally operate for < $100k: 99% ✔️
  27. I will not be able to buy trips on self-driving cars from Uber/Lyft/Waymo in a location I am living: 95% ✔️
  28. I will not be able to order groceries on self-driving cars in a location I am living: 90% ✔️
  29. I will not be able to buy a trip on a self-driving car from Uber/Lyft/Waymo without a backup employee in the car anywhere in the US: 80% ✔️ This is tough. You can get self driving cars in Phoenix, but only if you’re part of the Waymo beta and so far they are free, so no “buying”.
  30. The artificial general intelligence alignment problem will not be seen as the most important problem facing humanity: 99% ✔️
  31. Humans will not be in lunar orbit in 2019: 99% ✔️
  32. SpaceX Falcon Heavy rocket will launch again this year: 90% ✔️
  33. SpaceX will bring humans to low earth orbit: 60%
  34. SpaceX will test the “Starship” mock up this year: 70% ✔️ (pretty sure I just meant this giant water tower thing, not a real launch)
  35. Mexican government does not pay for wall: 99% ✔️ (lol)
  36. Border wall construction not complete by end of 2019: 99% ✔️ (some construction occurred, mostly replacing existing wall)
  37. National Debt increases by >$1 trillion (from
    $21,943,897,000,000): 90% ✔️ (was $23.201 trillion on Jan 1 2020)
  38. There will not be a significant decrease in trade barriers between US and China from pre-2017 tariff levels: 90% ✔️
  39. Democratic RCP front runner will not be Bernie Sanders: 80% ✔️ (front runner on Jan 1 was Biden)
  40. Democratic RCP front runner will not be Kamala Harris: 80% ✔️
  41. Democratic RCP front runner will not be Beto O’Rourke: 80% ✔️
  42. Trump not removed from office or resign: 95% ✔️
  43. Trump not impeached: 70% I was not expecting this
  44. No CRISPR edited babies will be born: 80% (it turns out the researcher responsible for the two 2018 CRISPR edited babies had already treated a third unborn child in 2018 when the story broke. Apparently the third baby was born in 2019 if you carefully read Xinhua, so technically this prediction is wrong, although I meant no other researcher would do anything. Remember to properly word your predictions!)
  45. No full year US government budget will be passed (only several months spending): 90% ✔️ (they basically only do continuing resolutions now)
  46. Some tariffs raised: 90% ✔️ (like a bunch)
  47. Trump administration does not file a lawsuit against any news organization for defamation: 90% ✔️
  • I got 4 of 6 predictions correct at 60% confidence
  • I got 7 of 9 predictions correct at 70% confidence
  • I got 7 of 9 predictions correct at 80% confidence
  • I got 8 of 9 predictions correct at 90% confidence
  • I got 7 of 7 predictions correct at 95% confidence
  • I got 6 of 6 predictions correct at 99% confidence

Overall, not bad at all, and we should note that from last year’s grading, my 60% confidence predictions have tended to be overconfident. I only had 6 of those predictions this year, so actually 66% is the closest I could have been to perfect calibration. 70% also ended up being a bit overconfident, but a single additional missed prediction here would have dropped me down to 66% as well. Had I moved one of my correct 70% predictions to 80%, I would have been perfectly calibrated.

Combining this data and data from last year gives:

  • I got 11 of 15 predictions correct (73%) at 60% confidence
  • I got 14 of 20 predictions correct (70%) at 70% confidence
  • I got 14 of 17 predictions correct (82%) at 80% confidence
  • I got 14 of 15 predictions correct (93%) at 90% confidence
  • I got 16 of 17 predictions correct (94%) at 95% confidence
  • I got 10 of 10 predictions correct (100%) at 99% confidence

In 2018, as I noted in the post last year, I should have made some of my 60% predictions at a higher confidence, but other than that, these predictions are remarkably well calibrated if I do say so myself.

I hope to post my 2020 predictions soon.

2019 Predictions

I’ve made predictions for the past several years, and here are my predictions for 2019, a bit late. I’ve noticed that when discussing politics or difficult subjects with other people with whom I have strong differences, a possible avenue of understanding is to make a prediction about the world with odds. Most people don’t accept these bets or predictions, which I think are one of the best ways to test different models of the world against each other. Nonetheless, I think it’s personally beneficial to list predictions and accompanying odds each year to see test my model of the world.

  1. Trump Approval Rating end of year <50% (Gallup): 95%
  2. Trump Approval Rating end of year <45% (Gallup): 90%
  3. Trump Approval Rating end of year < 40% (Gallup): 70%
  4. US will not get involved in any new major war with death toll of > 100 US soldiers: 60%
  5. No single terrorist attack in the USA will kill > 100 people: 95%
  6. The UK will not leave the EU this year: 80%
  7. North Korea will still be controlled by the Kim dynasty: 95%
  8. North Korea will not conduct a nuclear test this year: 60%
  9. North Korea will not conduct a missile test this year: 60%
  10. North Korea will not agree to give up nuclear weapons entirely, contingent on US troops staying in the Korean peninsula: 99%.
  11. North Korea will not agree to give up nuclear weapons as a result of any negotiations: 90%
  12. Yemeni civil war will still be happening: 70%
  13. S&P 500 2019 >10% growth (from 2506 on Jan 1): 60%
  14. S&P 500 will be between 2400 and 3100: 80% (80% confidence interval)
  15. Unemployment rate December 2019 < 6%: 80%
  16. Unemployment rate December 2019 < 5%: 70%
  17. WTI Crude Oil price up by 10% (from $45.41): 70%
  18. Price of Bitcoin in dollars up over the year (Coinbase – 3823 Jan 1): 70%
  19. Price of Bitcoin < $8,000 (does not double): 60%
  20. Price of Bitcoin > $1900 (does not lose half value): 70%
  21. Price of Bitcoin < $12,000 (does not triple): 70%
  22. Drivechain opcodes not soft-forked into Bitcoin: 80%
  23. No drivechains soft-forked into existence: 99%
  24. US government does not make Bitcoin ownership or exchange illegal: 95%
  25. Self-driving cars will not be available this year for general purchase: 95%
  26. Self-driving cars will not be available this year to purchase / legally operate for < $100k: 99%
  27. I will not be able to buy trips on self-driving cars from Uber/Lyft/Waymo in a location I am living: 95%
  28. I will not be able to order groceries on self-driving cars in a location I am living: 90%
  29. I will not be able to buy a trip on a self-driving car from Uber/Lyft/Waymo without a backup employee in the car anywhere in the US: 80%
  30. The artificial general intelligence alignment problem will not be seen as the most important problem facing humanity: 99%
  31. Humans will not be in lunar orbit in 2018: 99%
  32. SpaceX Falcon Heavy rocket will launch again this year: 90%
  33. SpaceX will bring humans to low earth orbit: 60%
  34. SpaceX will test the “Starship” mock up this year: 70%
  35. Mexican government does not pay for wall: 99% (lol)
  36. Border wall construction not complete by end of 2018: 99%
  37. National Debt increases by >$1 trillion (from
    $21,943,897,000,000): 90%
  38. There will not be a significant decrease in trade barriers between US and China from pre-2017 tariff levels: 90%
  39. Democratic RCP front runner will not be Bernie Sanders: 80%
  40. Democratic RCP front runner will not be Kamala Harris: 80%
  41. Democratic RCP front runner will not be Beto O’Rourke: 80%
  42. Trump not removed from office or resign: 95%
  43. Trump not impeached: 70%
  44. No CRISPR edited babies will be born: 80%
  45. No full year US government budget will be passed (only several months spending): 90%
  46. Some tariffs raised: 90%
  47. Trump administration does not file a lawsuit against any news organization for defamation: 90%

I’d like to comment on every prediction, but I’m afraid it would take too much time. The predictions I find most interesting are whether the UK will leave the EU. I’m going by what predictions markets say, but I’m not really sure it will play out with only a few weeks to go and no deal. I’m also quite interested in the Democratic Presidential primary race, but I’m afraid the nomination will be trending towards someone pretty left wing. I’m also interested in whether Trump will be removed from office. I put the chances of Trump being impeached at 30% to stay in line with prediction markets, but my gut is that I should put that chance even lower.

Policies in 500 Words or Less

This is the next post in the “Policies We Should Be Talking About” series. For more information see the introduction (and other policies) here, but briefly, this series is about explaining policies that might be unpopular, unknown, or simply undeveloped that could still have large positive impacts. Some face specific political obstacles, and some may be too radical to gain enough momentum in the near term, but all deserve to have their signal boosted.

Approval Voting

The United States and many other nations use the worst voting system in the world: First Past the Post or FPTP. This forces voters to think strategically, voting for candidates they think will win rather than candidates they actually like. Combined with the “package deal” problem we’ve discussed before, voters have at best tangential input into the political system.  FPTP leads to a variety of bad outcomes, including static two party systems, wasted votes, ease of gerrymandering, minority rule, spoiler effects (where a third party causes the preferred major party to lose despite popularity, i.e. Nader voters preferred Gore, but didn’t vote for him and Bush won), and more.

The most common alternative discussed in the United States is Ranked Choice / Instant Runoff Voting, which is being used in Maine today. This allows voters to rank all candidates they like, supporting multiple candidates. If no candidate wins an initial majority, votes are redistributed from the least popular candidates based on voter rankings. The first candidate to accumulate a majority wins. However, this system still trends towards strategic voting and two parties, since voters’ second choices are only counted if their first choice is eliminated. If a smaller party is redistributed first, voters second and third choices may be ignored, with the winner being a candidate that fewer voters had as a second choice. There are other more mathematical objections, such as the lack of a Condorcet winner. It is nonetheless objectively better than FPTP.

An even better procedure is called Approval Voting. It is incredibly simple: voters vote for as many candidates as they like, and the candidate with the most votes wins. Voters can support the candidates they really like as well as the ones they think will win. In all likelihood, this will trend towards two parties, but the difference is that third parties can spring up and build support over time without voters fearing the spoiler effects. This incentivizes new parties with fresh ideas. Main parties may co-opt those ideas as they get popular, but that’s good news for voters anyways, as good ideas can bubble up outside of the two party system and nonetheless achieve mainstream success.

The main difficulty is that almost all politicians will not support a new electoral system if they know they have already won using the old system. To get around this, the Center for Election Science recommends ballot initiatives to bring this idea directly to popular vote rather than fighting politicians who want to stay in power. They are doing just that, starting small in Fargo, ND with a ballot measure this year. If successful, it can be pointed to as a real life implementation of a good idea and can be built upon in other polities.

Additional information:

Bail Reform

When someone is accused of a crime, they are charged and given a set of restrictions to ensure they show up for trial. In the United States, this usually includes a money bond that is deposited and then returned at trial. If the defendant does not show up, the property is forfeit. However, other common law nations, including Canada and the United Kingdom, usually do not require actual money, just restrictions on movement or activities (i.e. drinking).

In the US, this has given rise to bail bondsman, who will post your bail for a flat nonrefundable percentage of your bond, often 10-15%. If you fail to appear in court, they have authorization in most states to bring you to the court’s jurisdiction to recover their bond, which is known as bounty hunting, essentially legalized kidnapping. Even if bondsman were banned (and several states have done so) this system remains terrible. If you cannot afford the bail bond, you have a strong incentive to plead guilty. Sitting in jail until trial is not an option for someone in poverty who needs to be working and earning enough for their family. Combined with other criminal justice issues like overcriminalization and policing for profit, nonviolent poor offenders are trapped by a system where they never get a chance for a fair trial due to a lack of cash. Justice should be based on guilt or innocence, not wealth.

There are better ways; the Bronx Freedom Fund realized there was an excellent opportunity to help alleviate this problem. They bail out accused persons and help them make their court date, recovering a large percentage of their posted bonds. Poor defendants are thus able to contest their charges with a fair trial, and many charges are dismissed instead of forcing the accused to plead guilty or sit in jail unproductively. They’ve been so successful they are launching a nationwide project to establish charitable bail funds around the country. John Oliver has also talked about federal courts, where pretrial services assess if the accused is a flight risk. Many are not, and so are released without bail payment at all. Those who the services determine should be assessed a bond are never given one that cannot be paid by the defendant, and in fact in federal cases and the District of Colombia, there are virtually no people awaiting trial because they cannot afford bail, compared to the 450,000 state defendants.

What political challenges are there? The bondsman business has a strong interest in opposing any bail reform, and each state has to update their rules. There are good ideas though: Rand Paul and Kamala Harris introduced a bill that will provide federal grants to states who reform their bail system, although it will likely die in committee. It nonetheless lays the blueprint for how we might tackle this problem from a nationwide perspective in the future.

Additional information:

Organ Markets

Organ markets are extremely unlikely to be implemented soon. Nonetheless, organ market legalization would have by far the most concrete and immediate benefit to the world today, and black market organ markets already exist. Every year over 4000 people die awaiting a kidney in the US, and Medicare spends $89,000 per person on dialysis every year (that’s $34B/year for Medicare, $42B including private spending). The kidney supply is dwindling as cars get safer (many organs are donated by deceased car accident victims), but the vast majority of people do not need both kidneys while alive, and so could sell their kidney to another person with relatively low risk, given compensation. By far the most likely to sell their kidney would be people of lower income, and this is widely touted as a negative for this policy. It is not: blocking the poor from this avenue of income available to them, while simultaneously allowing people in need of kidney transplants to die, is morally wrong.

There is always concern when a transaction occurs between people of different wealth levels. Poor people may not be “forced” into the transaction, but if they have no good alternatives, it seems apparent there is a lack of choice. This is the difference between transactions that are “voluntary” and those that Michael Munger calls “euvoluntary“. Nonetheless, preventing the poor from participating in “voluntary” transactions that others would categorize as “exploitative” does not solve the poverty problem, and in fact makes it worse than letting them participate in the transaction.

Despite this argument, there is a simpler answer to legalizing organ markets: don’t legalize every possible transaction. Law can preclude people below a certain wealth level from selling their kidneys, enforce waiting periods for sellers, create delayed payments, or set prices via formula instead of the market. Yes, these restrictions will severely reduce the benefits that could accrue to the poor who want to sell their kidneys, but anything is better than the total ban we have now. Regulated organ markets could significantly increase the supply of kidneys available, while reducing demand on black markets.

On the demand side, regulation could leave in place the current waitlist structure and avoid rich people jumping the line entirely. This would require the compensation on the supply side to be fully government funded (would still likely save money given Medicare spending on dialysis). A market price on the demand side would have better systemwide benefits, as there would be incentives to improve the market, find efficiencies, etc. However, the potential gains are so large that even a heavily regulated market is worth creating, and relevant legislation already exists.

The political obstacles are clear. Organ markets could be exploitative, while transactions involving human body parts “diminish human dignity” according to the National Kidney Foundation (does death diminish human dignity?). Despite this opposition, there are significant gains to be had from an organ market that cannot be overlooked.

Additional information:

 


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Picture credit: Martin Falbisoner,  US Capitol at dusk as seen from the eastern side, licensed under CC BY-SA 3.0