Bryan Caplan

Contra Caplan on COVID Consequentialist Calculations

Bryan Caplan writes this week about life years lost due to COVID and in particular what he sees as an overreaction to the pandemic:

Well, we’ve now endured 8 months of COVID life. If that’s worth only 5/6ths as much as normal time, the average American has now lost 4/3rds of a month. Multiplying that by the total American population of 330M, the total loss comes to about 37 million years of life. That’s about 15 times the reported estimate of the direct cost of COVID.

Tyler Cowen has an important critique. Given very low government restrictions in the U.S. South, Sweden, and Brazil, we can see that even as a baseline, lots of anti-pandemic actions are actually taken by citizens voluntarily rather than by force of the state. If true, then there is little we can do to mitigate these costs even if Caplan is correct. And moreover, if we could change people’s behavior to pretend that everything was normal, then why wouldn’t we also change people’s behavior to perfectly isolate when necessary and wipe out the pandemic within a couple weeks?

Cowen argues that the best way to improve the situation if private citizens’ actions are in fact greatly damaging is to push for a vaccine as fast as possible. Robin Hanson has objections here, but putting all that aside, I wanted to look at Bryan Caplan’s numbers.

If Caplan is correct, I should change my behavior; I’ve been avoiding movie theaters and indoor restaurants and perhaps I shouldn’t. Caplan suggests 37 million QALYs lost due to “COVID” time being worse than normal time. However, this is based on a Twitter poll and Caplan points out that when asked personally about how to compared “COVID” time to normal time, his median follower says it’s almost even. But let’s take the 37 million figure at face value because it’s really the best we’ve got.

Caplan points out that what we are not comparing the 37 million QALYs to the total loss in QALYs we’ve had with COVID in this timeline, but rather a counterfactual one where we didn’t overreact.

You have to ask yourself: If normal life had continued unabated since March, how many additional life-years would have been lost? I can believe that the number would have been double what we observed, even though no country on Earth has done so poorly. With effort, I can imagine that the number would have been triple what we observed. There’s a tiny chance it could have been five times worse. But fifteen times? No way.

Actually, it’s pretty easy to imagine! Every country on Earth has had a strong reaction to COVID and that’s why it’s hard to imagine a doubling or tripling of QALYs. If people simply went about their business, or very nearly so, then there really is little to stop COVID from spreading exponentially. In all likelihood, we would have seen overwhelmed hospitals. Instead of the per infection death rate being 0.55%, it seems quite plausible to me it could be up around 1%, especially given we were worse at treating the disease towards the beginning of the pandemic.

Moreover, if lots of people got this disease, they’d have to deal with the aftereffects which can be remarkably unpleasant. Certainly there’s a guaranteed loss of quality of life for half a month to a month as you battle the virus. Many people then have extended loss of taste and smell, extended fatigue, difficulty breathing, and perhaps even cognitive effects.

If we taken Caplan’s citation that people who die from COVID on average lose 10 QALYs (I would guess higher if more people got it, but we’ll go with this number) and say people who survive COVID on average lose half a QALY from lingering issues, the formula for this calculation of QALY loss is:

[Total QALYs lost] = [US population] * [% who get COVID] * ([% who die] * [10 QALYs] + [% who don't die] * [.5 QALYs])

If we say two thirds of the country gets COVID under a “no change in behavior” scenario (again, this seems very conservative, I would think it’d be higher) and 1% of infected die, we get:

[Total QALYs lost] = 330,000,000 * .67 * (.01 * [10 QALYs] + .99 * [.5 QALYs])
[Total QALYs lost] = 2,211,000 * [10 QALYs] + 218,889,000 * [.5 QALYs]
[Total QALYs lost] = 147,262,500

Notably, this is much higher than 37 million. Interestingly, the vast majority of the cost actually comes from the people who get the disease and survive. Perhaps I was too pessimistic on how difficult their lives are, after all, we are still uncertain. Let’s change it to a quarter of a QALY lost. Some people might have trouble breathing for years, but most people won’t, so perhaps this is a better estimate.

[Total QALYs lost] = 330,000,000 * .67 * (.01 * [10 QALYs] + .99 * [.25 QALYs])
[Total QALYs lost] = 2,211,000 * [10 QALYs] + 218,889,000 * [.25 QALYs]
[Total QALYs lost] = 76,832,250

Again, bigger than 37 million. And it’s not close. In fact, even if you say it’s only one month QALY lost when contracting COVID (which seems way too low to me considering that’s pretty much the baseline of getting and recovering from the disease) that still gets you over 40 million QALYs in our model. Add back in that the two thirds assumption is definitely an underestimate, that 10 years of QALY loss per death might also be an underestimate, and 37 million is again completely unattainable.

In other words, I don’t think the consequentialist calculation recommends going to movie theaters or indoor dining.

Book Review: The Case Against Education

Most people believe education increases students’ skills, and thus, education is a way to improve your life and career through learning how to be an engineer or a… (checks most common majors) …business…person… psychologist. Bryan Caplan’s latest book disputes this claim, arguing instead that education, especially college and graduate degrees, but even high school, is largely signaling, and not skill building. What does this mean?

Caplan believes employers look at your college degree and GPA and see that you are smart, hard-working, and conform to social norms, and it is that information, not skills you have, which gets you hired (mostly). Prior to reading this book, I held views that higher education had some issues, and I was particularly suspicious of the increasing cost of a college education that has significantly outpaced inflation. With new technological breakthroughs that make teaching much easier, is it really that much more expensive to teach undergrads than it was 30 years ago? With all the new amenities American colleges are adding (study abroad programs galore, student life funding, food, study rooms, etc), it seems like most of the money is not going to teaching, but shouldn’t a free market among colleges force them to compete on price?

The Case Against Education presents a solution to this puzzle, and much more that I had not considered. Signalling is about relative appearance. If the US and USSR both have ICBMs, no one will fire them out of fear of retaliation. But if one superpower develops submarine launched missiles, then there is a relative difference, and now the other must develop submarine launched missiles as well, or they risk being destroyed in a submarine first strike. Afterwards, the new equilibrium re-establishes a balanced peace, but both countries have wasted time and resources building submarines only to get back to the exact same situation. College is an academic arms race; if everyone could agree not to go to college, we’d be in the exact same place but without having to pay all that expensive tuition.

How can this be though? We know college raises people’s earnings, ergo shouldn’t the market fix this by finding better ways to figure out if prospective employees are worth hiring? Not really. College degrees give employers a “free” way to see which prospective applicants would be best to hire, paid for entirely by the applicants (or the government). Most jobs require pretty specialized skills that can only be learned on the job, so what employers are really looking for is intelligence and commitment. Having a good GPA (and getting into a good college) indicates not only intelligence but also the ability to work hard to achieve long term goals. This system is wonderful for employers, and they have no incentive to change their hiring practices to target non college grads who would probably be more productive with direct on the job training. Those hires are riskier on average as some hires will have been unable to enter college, rather than more interested in work. Employers essentially outsource job screening onto colleges at no cost to them. Colleges also have no incentive to fix the system of course, and the government funding that helps make the problem worse doesn’t respond to financial incentives, especially as education is pretty popular. Students can’t escape either as they are stuck in the arms race, and thus the problem persists.

We Don’t Learn Much From School

Nonetheless, the signalling case may not be intuitive. Most people know they learned things in school, after all, we all had tests on the material! I earned a pretty good GPA at my school, and I had to learn a bunch of stuff for it! The Case Against Education‘s second chapter addresses this quite aggressively, and the following few paragraphs are discussions arising from that chapter. First, it points out that a large fraction of what we learn in school isn’t very applicable to our jobs. I really enjoyed my social studies classes, and I certainly use some of the things I learned when writing this blog, but I do this as a hobby. In my actual employment, I have never needed the years of history, government, or economics classes I took. My counter is that Caplan just asserts some classes are worthless. He has some numbers to back up the particular claim that despite most American high schoolers being forced to learn a foreign language, very few actually speak anything other than English as an adult. There also don’t seem to be many useful careers in the social sciences outside academia. Maybe you need to study civics to get a job in government, although not for most basic bureaucracy desk jobs. I think some more concrete numbers would help his case, although I concede he’s probably right on most accounts.

(Caplan also points out that some “useful” classes, like Math, aren’t necessarily that useful if you break them down; almost everyone takes Geometry, yet very few people need to reason about triangles in their everyday life.)

There’s also an excellent counterargument to the idea that knowledge might become useful later (e.g. “Latin might be helpful if I need to know meaning of an unknown word”). Hoarders make the same argument, “I might need this 17th water bottle someday!”. Education costs resources, and we shouldn’t be purposefully spending them on concepts that may never be useful to students.

Caplan also extensively evaluates whether students actually retain what they learn in school years later. The results are incredibly dismal. Even basic literacy and numeracy, which Caplan argues are the most practical skills we learn in school, are pretty awful when tested. Civics, Science, and foreign language skills were similarly terrible. It’s even suggested that 38% of American citizens would fail the citizenship exam.

The claim that school teaches you how to reason or how to think and analyze is also refuted. Moreover, as I would add, if that’s the main benefit of school, why not teach that directly instead of lots of classes based off of memorization? There may be some argument against the exact examples and studies Caplan uses; perhaps the ability to apply statistical knowledge in non-academic areas is slightly better than the book suggests, or perhaps a year of education raises your IQ slightly more than a few IQ points higher, but overall these themes are hard to overcome; students don’t retain much information from decades of education, they don’t become brilliant by being in school, and they don’t learn skills they eventually use on their jobs.

More Signalling Evidence

Other interesting observations by Caplan that impressed me were that top educational institutions give their classes away for free. You can watch many of the best lecturers online without paying anything, but you can literally walk into Duke or Harvard and watch lectures from professors. If schools were charging for the education, there would be barriers to getting into classrooms, but there aren’t, because that’s not why you pay to go to college; you pay for the degree. Also of note, in Chapter 3, Caplan analyzes whether some college degrees are useful in building skills while others are not, which might indicate that the “human capital story” could be true, just not true for every major. He points out that even if you are mismatched in your career from the major you studied in college, you often earn significantly more money than a high school graduate.

This is clear evidence for the signaling model, but time for a little bit of pushback. Caplan estimates signaling’s share at 80% of the value of education. However, this obviously changes with subject level. In the wheat-chaff section of Chapter 3 I was referring to in the last paragraph, the book states that engineers see a 20% decrease in earnings if an engineering degree holder works in a non-engineering field. But the entire premium of engineering is about 60% above HS graduates, adjusting for ability. This means a 20% drop in earnings brings us back down to 28% above HS grads. That means about 53% of engineers’ higher earnings are due to skills, since they lose half of their bonus above HS grads if they are working in a field without those skills. Not to mention there could be some skills engineers pick up that helps them in other areas, despite Caplan’s points otherwise. Of course, humanities majors are much worse for this case, since many of them see zero loss of earnings if they do not work in their field. Anthropology, liberal arts, sociology thus might be demonstrations of pure signalling. Interestingly, their college premiums are pretty close to engineers’ premiums if the engineers are working outside their field.

The point I make here isn’t that Caplan is necessarily wrong about 80%, but rather that I thought this particular discussion clarified where these numbers might be coming from and what the interaction is between my prior concept of “school teaches me useful skills” and this new concept of “school is mostly signalling”. In other words, these compensation numbers indicate that while there are some skills taught in school, large swaths of students are taking classes that do not teach many skills. Signalling may be argued as a reflection of “people study useless subjects”, rather than “school is inherently bad at transferring skills”, which may provoke outright dismissal by some readers.

Another counterpoint to Caplan is that Sheepskin Effects, the effects of graduation on earnings, may be a reflection of ability bias, rather than all signaling. This blog post discusses a possible method, where people who make it to 3 years of college and then drop out may be disproportionately people who could not complete the hardest classes, saved them for the final semesters, and then failed them, causing them not to graduate. Had they spread them out, perhaps they would have failed out earlier, dragging down first and second year benefits, while allowing third year benefits to rise.

The problem is that signalling would still make up a massive fraction of education, even if Sheepskin Effects are partially reflection of ability; Caplan doesn’t discuss professional schools, as they tend to be pretty good about teaching skills, but he also doesn’t mention that even for medical school, the vast majority of required undergraduate classes in the United States are not skill-building. Calculus, physics, and organic chemistry are not necessary for practicing medicine, yet they are still required.

The Case Against Education also discusses how you might calculate selfishly whether college or advanced degrees are worth pursuing. Caplan even includes helpful spreadsheets that you can manipulate yourself to calculate the returns to your own education.

On the other hand, the following chapter on social returns asks if perhaps there are positive externalities to education that might be helpful besides teaching people useful career skills. I found the section that it was hard to find nation-level benefits to economic growth surprising at first, but more realistic given slow US GDP growth despite higher and higher educational attainment.

There’s also a brief, but thought-provoking section in Chapter 6 regarding the impact of education on democracies and policies. Education correlates with higher political engagement, although whether that’s due to ability bias or actual impact of education is not dealt with. Instead, Caplan asserts that whether education’s impact on policy is good or bad “…the social value of participation hinges on the quality of participation”. This is a statement I strongly agree with, but I’m not sure most people would necessarily endorse. He rightly points out that the quality of participation is inseparable from the question of the quality of policy itself, which is way too big a topic for an education book. Nonetheless there is an implication that the general promotion of civic participation is not necessarily good for society, and I suspect such a notion is controversial.

Solutions

Finally, towards the end of the book, Caplan gets into his proposed solutions for the problem of signalling. The Case Against Education makes a strong argument that education doesn’t have great payoffs and wastes resources on relative signalling, and so Caplan suggests we reduce government subsidies for education. Notably, from a libertarian perspective at least, Caplan’s argument rests on the idea that the education free market itself wouldn’t be optimal, as signalling would actually cause an overconsumption of education over what is socially optimal. He actually has a section in Chapter 7 discussing if it would actually make sense to tax education. He makes the cursory libertarian argument that the government should leave people alone unless we know policy interventions will be highly successful. This is probably fair, but if we were to miraculously find ourselves in the position of having no government education subsidies, I suspect that some taxation of signalling heavy education might be socially ideal, if economically and politically untenable.

The book is also aware of how unpopular any calls to reduce education subsidies would be. Nonetheless, Caplan makes a good point that the proper response to poor education effects implies we should stop bad policy until we figure out better ones, not continue them while we debate alternatives. At the very least, college subsidies should be ended. Tuition will rise, but pushing more of the burden on students is what we want; education should only be undertaken from a social cost-benefit analysis if its benefits outweigh its costs. An excellent way to do this is to force individuals to undertake the costs, since they will be incentivized to go to college only if they can study something that will pay for it. This will negatively impact humanities enrollment, but right now much of humanities coursework is subsidized by the taxpayer and seems to be largely signalling. We should save the money.

The Case Against Education also makes the point that the poor are by far the hardest hit by credential inflation. Reducing government subsidies means the poor will have a much harder time getting to college, but it also means you should see a systemic decline in the necessity of college degrees for jobs that don’t need them.

Caplan also devotes a chapter to the benefits of vocational education, and getting young students (especially those who aren’t doing well in school) on the job experience as early as possible. I don’t have much to add, but it seems disturbingly obvious; if school doesn’t teach us much that we remember, and if there exist jobs that aren’t taught in school, but can be taught with work experience, we need to change the cultural aversion to vocational education ASAP. Additionally, I’ve been following many of my friends in medical school and, it’s incredible to me how vastly it differs from the requirements to enter medical school. Important parts of medical “school” is literally on the job apprenticing with actively working doctors, nurses, residents, etc. Meanwhile, med school undergrads spend 8 semesters learning things that are virtually useless in their planned vocation. It’s absolutely bizarre, although well explained by the signalling model.

Finally, I want to briefly discuss Caplan’s explanation for why no one else is talking about education with similar critiques. He places most of the blame on social desirability bias; basically, it’s unpopular and costs us socially if we critique popular views as incorrect. This story make some sense to me: calling for education cuts is often seen as heartless and evil, yet so are lots of calls to cut government spending, and there are plenty of libertarians and fiscal hawks that are ok with taking those views. I think a significant part of the puzzle arises from the fact that the signalling model is not widely known or understood. It’s also counterintuitive, since we have quite plausible explanations for many things signalling suggests, e.g., people with higher education get paid more because education imparts skills, no signalling model required.

Overall, this book was really interesting and has convinced me that signalling is a substantial fraction of the benefits of education. I feel like there was no definitive place where Caplan calculated exactly why he thought signalling should account for 80%, but doing some of my own calculations around education premiums for workers working inside and outside of fields where their degrees were focused, I can see how there is a chance signalling could indeed be as high as 80%. Nonetheless, even if the proportion is much lower, say only 40% or 30% that would be incredibly wasteful for a trillion dollar industry. After reading The Case Against Education, I feel that a significant cut to at least college education subisidies is probably warranted, and further research into the usefulness of education and the signalling model is vital.

Links 2016-12-2

Added the awesome Conor Friedersdorf and Megan McArdle to the Libertarian Web Directory.

First, all the Trump-related links:

I’ve been saying this for a while, but Robby Soave at Reason articulates why the left bears a lot of the blame for Trump due to their aggressive pushing of political correctness.

Slate Star Codex talks about similar problem on crying wolf about Trump. Even mentioned in Episode 33 of The Fifth Column.

Tyler Cowen on why Trump’s plan to keep jobs in the US is pretty awful.

Nonetheless, also read why Bryan Caplan isn’t freaking out about Trump.

The Nerdwriter, on YouTube, makes the case that Trump is a magician, using the media to distract our attention from where it should be. Maybe I should stop reading about him so much.

Now, other related political posts not explicitly about Trump:

Megan McArdle had a good piece talking about bridging the gap between the “right-wing media” and the regular “media”. If you want to bring conservatives back into the mainstream, you have to stop politicizing everything and only hiring left-leaning news reporters who only want to cover the local food movement and how evil Walmart is.

Related: Bryan Caplan discusses that if you just talk about how great cohesion is and despair at the political divisions we see, you’ll never get outgroups to come back in, because to them you sound like you’re telling them to conform. You have to actually unilaterally reach out to them and show them respect despite how much you dislike them.

Philosopher Nick Land argues that contrary to the notion that fascism as a societal system has been largely dead since WWII, in fact almost all political philosophies in the world today are largely rooted in fascism, including the major political philosophies of the United States, progressivism and conservatism.

What is the most prominent social science debate happening at Peking University today? The most prestigious university in the still-technically-communist-party-controlled China isn’t about Maoism vs Stalinism, it’s a planned economy vs markets.

Scott Sumner has a hopeful take on fiscal policy and specifically reducing government budgets.

Here is a terrifying story about the unintended consequences of overcriminalization, and deference to state power. A woman with a previous arrest for prostitution, was picked up and charged with “loitering for the purposes of prostitution”. Loitering is not a criminal activity, but can be applied to anyone standing still. Loitering for the purpose of doing something else is quite speculative. Of course, prostitution itself is already a criminalization of a voluntary transaction, so now anyone who has been arrested for a voluntary interaction other people find distasteful cannot stand anywhere without being accused of a crime. In fact, if cops think women are dressed too lewdly, they can also be arrested for intent to prostitute themselves. Since this woman is relatively poor (thus the loitering for a ride outside of a trailer park), she’s forced to plead guilty to the charges and go to jail for 2 months.

Related: Adam Ruins Everything this week is about how important prostitution was to settling the American west, and, interestingly, empowering women in that region of the country far before they had similar rights in the east.

Why build higher? This video takes a look at the history of skyscrapers, but also delves into important areas of urbanization and how humanity will live in the future. Cities are more and more important to human civilization, and improving urban areas to exploit efficiencies of concentrated living is one of the most important challenges we face.

Crash Course has a 10 minute intro video for the philosophy of utilitarianism. Since that’s an important building block for many of the arguments on this blog, I would definitely recommend it.

Finally, to wrap up the short videos category, Learn Liberty has a great 5 minute video on one of the most fundamental economic concepts: Opportunity Costs. Every choice we make has a hidden cost of what could have been done with those resources and time. Ignoring those opportunity costs can lead to paradoxical ideas like the Broken Window Fallacy.

For the best coverage of the death of the dictator Fidel Castro, this long piece at the Miami Herald is the most comprehensive take available.

Postlibertarian throwback: read about the politics of outrage back in 2014. Unfortunately we have…not fixed our focus on outrage yet. 2017 and the age of Trump isn’t looking so great either.

Comment on the official reddit thread.

Links 2016-9-7

Living in the Age of Outrage. Maybe we’ve surpassed the point at which additional connectivity and interaction will continue to benefit the human brain.

The NSA spying on us is now officially putting us all at risk. Written by Bruce Schneier whose blog you can find in the sidebar.

Cool post on taking back the word “neoliberal”. More from a British perspective than American, but same idea I think as this blog and neoclassical liberalism.

Duke Professor Michael Munger (blog linked in the sidebar) gave a short talk about different healthcare systems, and some of the problems in the American set up.

An interesting healthcare idea mentioned in the last link, and discussed at length in this Cato paper. An idea I had previously thought about what having insurance cover increasing progressive percentages of healthcare costs as your costs went up. This is essentially like a high deductible plan, but perhaps you pay for 100% of your first $1000 healthcare costs, 50% of your second $1000, 25% of the next $2000, and so on. However, high deductibles don’t really work for low income individuals. Instead, this paper proposes that for very expensive procedures, the insurance company would pay the patient an amount to forego the procedure. If it’s just something they are considering, they will just take the money. If it’s really required, they’ll go through with it. It’s true that more low income individuals will forego the procedure, but if we argue that shouldn’t be allowed, we are arguing they shouldn’t be allowed to get free money. Not very ethical.

Paid parental leave isn’t a free lunch. Author is a blogger at EconLog, linked in the sidebar.

Interesting point by Bryan Caplan on a “reverse Animal Farm” situation. In the Soviet Union, Pravda would talk about how much better things were while things were actually awful; today, the media focuses on how terrible things are despite us being in an unparalleled era of peace and prosperity. Weirder still, Pravda was a propaganda outlet, but our media is competitive meaning that they are spouting what we want to hear. Of course, that also explains lots of overly emotional happy stories of dogs being rescued or clickbait listicles, so it’s not all doom and gloom as Caplan says.

The reasonableness of radicalism. An good read from Libertarianism.org that makes you think about the historical context of various beliefs. By historical standards people today are radical democrats, radical egalitarians, and radical libertarians. Therefore, we can justify beliefs thought radical today by asserting future societies would find those beliefs obvious. Of course, the author largely ignores that we could guess the wrong direction the world moves in; many left-wing intellectuals (and others) in the early 20th century thought it was obvious that communism or at least socialism was the future. They believed their support of overthrowing the bourgeoisie was the right way to approach things. Communists today are a bit wacky. Perhaps it would be safer to just argue for incremental changes in the right direction.

When you change the world and no one notices. Apparently it took about five years for the anyone to notice the Wright Brothers had already invented fixed-wing flight. Someone even predicated flight was a long way off a year after the Wright Brothers had flown at Kitty Hawk.

Last week had an excellent episode of The Fifth Column (podcast website). I recommend skipping the first 20 minutes unless you’re really interested in the Colin Kaepernick debate. Michael Moynihan makes a great point which is that Donald Trump is a pussy. He did talk about the border wall with Mexico’s president, but when asked about it, he said they didn’t discuss it. Then later when he was safely back in Arizona, then he said Mexico would definitely pay for the wall. But when actually in Mexico, he chickened out and avoided the subject. It’s remarkably politician-like and unpresidential. The whole rest of the episode though is great.

In the quest to get more people to know about Gary Johnson, BalancedRebellion.com has an amazing video from “dead Abe Lincoln” to let people know they can use the website to find another voter who would otherwise vote for the “other candidate”, and together they can both vote for Gary Johnson like they want to without the risk of accidentally helping to elect the person they hate more.

Comment on Reddit.

Links 2016-5-30

Gary Johnson selected former Republican Massachusetts Governor William Weld to be his running mate. This was pretty surprising for Libertarians considering Weld isn’t really a well-known libertarian guy. Obviously, the Johnson campaign hoped not to repeat the failings of Jim Gray who was essentially unknown to the national media. During the Libertarian Party convention this weekend, the delegates selected both Gary Johnson and Bill Weld opting for pragmatism rather than party purity. This is some election year when the libertarians are more reasonable than the Republicans and Democrats.

With 2 former Republican governors on the ticket, the Libertarian Party is now poised to be a real third party alternative. This could be a huge year for them, even if they don’t win. Remember, from our archives, if you reach 5% of the popular vote in a presidential election, you are entitled to real money in the next cycle (the irony of Libertarians accepting Federal handouts not withstanding).

Nicholas Kristof has a follow up to his column “A Confession of Liberal Intolerance” where he condemned the intolerance of progressives especially in the university. Apparently, the left universally scoffed at the thought of tolerating conservatives…which essentially confirmed his point.

The EFF is shutting down their canary watch program after a year. I have previously discussed the importance and usefulness of warrant canaries. It seems the EFF has decided it isn’t worth the effort to keep track of all the notices because they seem to change too much from post to post. These aren’t bad reasons, but it is a little concerning. It seems likely that you’ll just have to stick to the default that any website you visit has received national security letters asking for information.

Jason Brennan at Bleeding Heart Libertarians on the difference between Ignorance, Misinformation, and Irrationality in democracies. Essentially ignorance isn’t exactly the problem in democracies, since if everyone is equally ignorant, then the non-ignorant people will be able to make rational decisions; there is no bias for the ignorant people since they have no opinion. Misinformation can be a problem though, if most people are misinformed, they will make poor decisions. But even if people are misinformed, having a deliberative discussion will help as rational logic should triumph. But irrationality is a serious problem, since even discussions would just spread more misinformation. This relates to the thesis of Bryan Caplan’s book The Myth of the Rational Voter (Wikipedia, full text for free). I look forward to reading Brennan’s new book, iconoclastically titled Against Democracy.

Tangentially related: John Oliver has a segment on the flaws of the primary system. Unfortunately, he sort of glosses over the assumption that they need to be more democratic, but do they? He says this time we “got lucky” in that the candidates with the most votes were the ones actually chosen, but we need to change things in the future. I disagree; the candidates we did choose are awful. If the system is working now, making it work better won’t help anything. Check out my previous post for more on this, and forward it to John Oliver if you get a chance. Better than reforming the primary system, let’s try making more parties more viable with some proportional representation in the House of Representatives!

Why Bernie doesn’t quit: Polisci 101 analysis of Bernie Sanders’ intentions. Basically, he wants to stop Hillary from turning towards the center, since he wants the Democratic party to be very a progressive Social Democrat party. This is also the reason that anyone who’s not a Social Democrat wants Bernie out of the race.

Ilya Shapiro at the Cato Institute, who knows his stuff pretty well, called Donald Trump’s list for replacing Justice Scalia’s SCOTUS seat “exceptional”. This is good news in that a Trump presidency would at least have this going for it. I don’t know if all this would make him a better choice than Clinton, but it is a big deal, at least to me. Doubtful if this alone would be enough to unite all Republicans around him.

Nick Gillespie has two solid blog posts. One is a great overview of a recent Foreign Relations Committee Hearing and the constrasting views of Marco Rubio and Rand Paul. Paul, we should note, won his primary to stand for reelection for his Kentucky Senate seat. This should largely guarantee his victory (PredictIt doesn’t have a market yet but PredictWise has it at 90% Republican). The other post discusses how Obama’s new overtime regulations are going to harm workers by reducing hours, workers, or both.

Meta-blog post. Do you need more economics blogs? Here is a giant list of them. They’re vaguely ordered by popularity, and you shouldn’t just dismiss it because Paul Krugman is first; there’s a lot of good blogs I didn’t know about.

Dylan Matthews at Vox makes the case for getting rid of the TSA. Doesn’t even mention the financial cost savings (their budget is $8 billion, and cost of time is at least that).

Scott Sumner on the problems with government policy responses to crises. Scott also did a much better job predicting the economy than the Fed. Takeaway: please, please institute prediction markets for the basic macroeconomic indicators.

Cool YouTube video on computational complexity and the P vs NP problem.

Short summary of one of the best essays on markets: Hayek’s “The Use of Knowledge in Society”.

What are the components of airline ticket prices? Great YouTube video explanation.

All the Scott Alexander: Apparently good kindergarden teachers have massive effects on income decades later, but no lasting effect on test scores. There really bizarre studies and all I can tell is that education research is hard.

As part of his ongoing philosophy of niceness and tolerance in society, and relating to my post on tolerance, Scott discusses more on tolerance and coordinated vs uncoordinated meanness.

Scott also has a great post on his experience in the Irish health system, related to the UK junior doctors’ strike. There are serious barriers to entry to the US medical system because the benefits are so high if you become a doctor. In UK, this is not true, since the state regulates how much doctors can make, so of course many doctors are leaving the UK and Ireland for places where the pay is less regulated. Scott says he’s not sure how to solve labor disputes, but if you have a freer market in hiring and payment, you don’t end up having labor disputes. The American system has problems as well, and if the barriers to entry could be reduced

And finally: Scott Alexander’s review of Albion’s Seed, and his analysis of the importance of culture in determining beliefs.

Apparently non-technical people don’t know this, but Craig Wright isn’t Satoshi Nakamoto. He had an “exclusive” interview with several media outlets discussing how he was really the inventor of Bitcoin. But if you read the story pretty quickly, you notice he doesn’t provide a signature with Satoshi’s private key (the reddit and Hacker News threads found he stole a signature from a transaction in one of the early blocks), and he doesn’t move any of Satoshi’s money to a publicly declared account. Those are very easy ways to prove he is Satoshi Nakamoto, and he didn’t do them, instead relying on some weird demonstration directly to a journalist. I would have guessed most people would have figured he was lying (he has a weird history as well), especially because Satoshi Nakamoto has gone to great lengths to protect his identity, and this guy is clearly trying to get attention. But several news outlets printed it as true. Gavin Andresen, the lead developer of Bitcoin, has declared that he has seen proof, but he hasn’t told us what the proof is. But you shouldn’t need a really famous person to vouch for someone’s identity, that’s the whole point of Bitcoin; decentralized proof is easy and clear.

From Ars Technica: Death by GPS.

Bryan Caplan on global warming cost-benefit analyses.

The Fourth Amendment apparently no longer applies to the federal government. The FBI can access any data gathered from general warrants issued under the FISA court to the NSA, which is only supposed to be targeting foreign nationals, but which we know just grabs all data a company has.

Marginal Revolution discusses the issue of public bathrooms in context on North Carolina’s recent law.

Links 2016-4-17

Counting past infinity is easy! It was the infinity raised to infinity and infinite number of times that I really got lost.

I’ve settled on the right way to show the date in these links posts: the international standard ISO-8601. It’s about time since that has been the standard since 1988.

Niskanen center names social justice aware libertarianism as “neoclassical libertarianism“. I like this idea, as it’s strictly superior to progressivism, and I’ve been trying to come up with a good name for it. Scott Alexander called it left-libertarianism-ist, which just isn’t as catchy. Of course, maybe pure libertarianism is better, but neoclassical liberalism is far more politically palatable. It is also more “conservative”, meaning that it is closer to the status quo.

Merrick Garland would not be a good SCOTUS justice. Randy Barnett discusses with Reason why he opposes Garland’s nomination: he’s completely deferential to executive and legislative authority and does not protect individual rights from the state. Does it make sense for the Senate to not give him a hearing? Maybe, maybe not. Did it make sense to declare prior to his announcement that any candidate wouldn’t get a hearing? Hard to say; if that hard line approach made Obama nominate an old white guy who endorses state power in the name of national security, that’s certainly a win for neoconservatives. I don’t think anyone should take an outrage stance on the Supreme Court opening because this really is a complicated game theory situation with nested layers of strategy. Even though I’m sure he is one of the most un-libertarian nominees ever, it’s impossible to say if he would be worse than a Hillary appointee or even a Trump appointee.

How to fight the War on Drugs: hit their wallets. Legal marijuana causes Mexican drug cartel revenues to plummet.

Heard through Slate Star Codex, anti-censorship blog Status 451 (linked in the sidebar) held a fund-raiser for LambdaConf, a functional programming conference I had no idea existed until a week ago. Apparently, after an anonymous analysis of submitted papers, the Lambdaconf organizers selected a paper to be presented at the conference by Curtis Yarvin, a.k.a. Mencius Moldbug, perhaps the most well known neo-reactionary. Certainly I think neo-reactionaries are a bit nuts, but Mr. Yarvin has also invented the intriguing functional programming language Urbit. We don’t agree with him politically, we can learn and grow our knowledge by understanding what he has to say, especially in technological areas he is an expert in! Alas, as Eric S. Raymond recounts, the social justice movement did not see it that way and pressured LambdaConf to remove Yarvin from the event. Lambdaconf refused and the activists moved to forcing sponsors to drop out. Incredibly, Status 451 started an indiegogo campaign to save LambdaConf, which was funded within the day. This is a big victory for anyone who wants to live in a tolerant, knowledgeable, and free society, but if you want to know their motivations firsthand, please read what they have to say. Status 451 are also true believers, calling out some on the right for their similarly censoring response.

Related in Not the Onion news: Emory vows to hunt down students who politically disagree with the Left.

Bryan Caplan on liberalizing expertise and the link with defending free speech from the attacks of economic licensing.

A great write up on derivatives, what they are, how they work, and why it’s misleading to suggest that the derivatives market has a quadrillion dollars in risk.

Another excellent reddit post, this one asking soldiers what things they don’t tell you about war. In short: the smell.

Apparently the music industry thinks the DMCA doesn’t do enough to stop copyright infringers (more on the RIAA at TorrentFreak). It seems they’d like to target the safe harbor provisions of the DMCA, the only parts of it that are useful. Techdirt has a great series of posts from the other side, detailing the many abuses of DMCA takedown notices. Right now, there is no legal check on whether a takedown request comes from someone who actually owns the copyright, or even if that copyrighted work is utilized fairly for criticism or commentary. This isn’t an easy problem to solve by any means, but we should remember that the point of copyright is to encourage production of new works, and if there’s anything that YouTube does right is making it easier to create new content. Moreover, it’s helpful to remember that YouTube is run at a loss of more than $150 million a year. Trying to force YouTube to pay for content policing is one of the dumber ideas they’ve ever had, which is saying something. So what should be done instead? A good start would be to make false copyright claims a criminal offense, and require you to prove you own the copyright in the claim. It would also be good if it turned out your copyright claim was wrong, the ad-money would not go to the claiming part, but would be held in escrow until the dispute is resolved. This would allow YouTube to better focus on actual infringers and stop the torrent of false claims. Of course, another big looming problem for the RIAA is Facebook video, which doesn’t even have the semi-transparent (though flawed) takedown-notice system of YouTube. Ultimately, given how little money YouTube makes after 10 years on the internet, if YouTube was allowed to be held liable for infringing uploads, YouTube would either go out of business, or cease becoming a free platform anyone could use. This would be a monumental failure of the copyright regime; yes, it might end up getting RIAA members more money, but that is not the purpose of copyright. Copyright exists to help make new content, not destroy content platforms.

California is raising its minimum wage, eventually to $15 an hour. FiveThirtyEight’s Ben Casselman is excited at least to get some data on large minimum wage hikes, although judging from the headlines, it seems like he thinks this is a good idea. I’m fairly confident it is not, and Matt Zwolinski makes one good point to support me: the minimum wage doesn’t fight poverty. There’s a lot of data surrounding the minimum wage. And it’s apparent that unemployment does not automatically rise when minimum wage increases occur. Nonetheless, longer term unemployment effects are essentially impossible to study, and it’s likely there are some effects on businesses. If businesses could absorb 20-40% increases in labor costs easily, then why aren’t businesses getting more out of their employees, or more firms entering the business due to excess profits? There is evidence of long term job growth being harmed, as well as higher prices (see last link). Ultimately, I predict there will be negative consequences for California, but it’s hard to find something that is worth predicting. I could predict that California’s employment and workforce participation rate will be lower than the country average by more than they are now (check this in the future). It’s also likely that low cost goods will see price increases, but I don’t have an easy way to check that over the next five years.

Robin Hanson has a good thought experiment to show that most people don’t vote to change the outcomes of elections. This would explain why anyone votes at all, given the uselessness of voting generally.

GiveWell tries a new tactic to persuade more people to fund their top researched causes: ” First of all. Just so you understand, this guy is a total loser. He begged me to be his peer reviewer, I said ‘NO THANKS.’ Pathetic!”

Daniel J. Bernstein taking over crypto is good.

Links 2016-03-24

Scott Alexander has a new post on happiness and economic growth. There must be a name for this paradox, because it’s blindingly obvious if you think about it: Right now, compare your life to the life of 100 years ago, given your current standing in society. Your life right now is way better, you have time to spend on internet learning and debating about ideas in ways you couldn’t dream of 100 years ago. You have better food choices, longer life expectancy, better pop culture, more stimulating interests, far easier communication with distant relatives, and so on. And yet, the exact same thing will be said about our lives compared to the lives of those who live 100 years in the future. Sure, those lives will be better, but I don’t know how much that bothers us today unless we really think about it. Most people are pretty excited to live today at the frontier of human knowledge, and we don’t see it as a loss that we don’t have cheap self-driving cars and instant delivery groceries for low cost.

But yet, when you do think about it, we hate sitting in traffic or having to go to the store to pick something up, and we wish we had technologies that could get rid of those inconveniences. Yet, I bet people in the future will just have other errands they hate doing just like we hate sitting in traffic. But they will be inconveniences for future people who are tolerating them so that they can do even more awesome things that we can’t imagine, just like people 100 years didn’t sit in traffic because they didn’t own cars at all.

It’s very confusing. On a personal scale, obviously it would be ridiculous to complain about your current standing, because future technologies haven’t been invented yet. So of course everyone is pretty satisfied with what technology level they live in. Yet, our lives are obviously better for having these technologies. How do we reconcile this?

In the last month, I’ve often thought that the closest president we’ve had to Donald Trump is Andrew Jackson; Trump is a loud-mouthed, populist who falls outside of the mainstream party system, yet has significant support from non-elites and were despised by the elites themselves. This is also the perfect description for Andrew Jackson, who was so successful in this movement, he founded the Democratic Party. David Friedman comes to the same conclusion via a different route.

That last link caused me to run into a real problem with Donald Trump and Andrew Jackson grammatically. One subject is dead and one is alive, so what is the proper verb tense to use? Stack Exchange suggested this, which is honestly kind of lame.

Scott Sumner discusses socialism and France. He makes a short argument that France sounds like a pretty good model country for modern socialism: high amount of skilled civil servants, broad support for socialist policies, a willing government to implement them, and a modern, developed economy. Yet, Bernie Sanders supporters often reach for the Nordic countries rather than France as the big-welfare state (“socialist”) ideal. Why is French socialist policy somewhat of a political flop, while Nordic countries are idealized? And would a Bernie-America look like Denmark or maybe better, or perhaps more like France, or even worse? Given the size and diversity of America’s population and economy, France seems closer than Denmark, although both are closer to each other than the US. The only socialistic countries of comparable size seem to be the China and the Soviet Union which have forms of socialism even Bernie Sanders would abhor. Mostly.

Do you have no friends? Never fear, it’s because really, really smart people are better off with few friends.

Bryan Caplan’s model of the Right and Left, and how it’s oddly doing well this election cycle.

Overcoming Bias discusses the cost and benefits of voting. How much would you pay to have your vote count more? His conclusion is that we don’t vote to change the outcome of the election.

Surprise! NSA data will soon be used for routine policing! Coverage from the New York Times, and the Massachusetts ACLU as well.

Bryan Caplan also has a good discussion of libertarian critiques of welfare. Matt Zwolinski has a good counter post. I like the idea of bleeding heart libertarianism, or market liberalism or whatever, so I think Caplan’s critiques are pointed at exactly what I believe, which is excellent! You always want to have your beliefs critiqued by smart people. I think Caplan is right on many of his points, but I feel like my views are more politically practical. Voters obviously want some form of welfare for the poor, and at least that part could be done more efficiently with my ideas.

This is a good write up on the decentralized crypto-currency-ish entity Ethereum; Reason also did a recent video on it. Very soon I’ll be able to explain to people what it actually does. Right after I’ve figured out how to install it. If you want to learn about it without me, here is Ethereum’s website.

Fact checking Trump on trade. Why do we talk about trade deficits? I have no idea why they matter. Is it a problem if I buy a phone from Apple and I live in New York instead of California? Is there now a trade deficit between New York and California since I sent money out of my local community? No, nobody cares. And for the US, it’s even less relevant, since those dollars that US citizens spent have to come back to the US to be redeemed for goods and services. It would be like if I paid for my iPhone in New York dollars that had to come back to New York. I’m a free trade proponent, but I’m not deaf to some concerns people might have about trade, but this is one of the worst anti-free trade arguments you could make.