Green New Deal Part 3: Guaranteeing education and healthcare is easy—why aren’t we doing it?

Apr 21 JDN 2458595

Last week was one of the “hard parts” of the Green New Deal. Today it’s back to one of the “easy parts”: Guaranteed education and healthcare.

“Providing all people of the United States with – (i) high-quality health care; […]

“Providing resources, training, and high-quality education, including higher education, to all people of the United States.”

Many Americans seem to think that providing universal healthcare would be prohibitively expensive. In fact, it would have literally negative net cost.
The US currently has the most bloated, expensive, inefficient healthcare system in the entire world. We spend almost $10,000 per person per year on healthcare, and get outcomes no better than France or the UK where they spend less than $5,000.
In fact, our public healthcare expenditures are currently higher than almost every other country. Our private expenditures are therefore pure waste; all they are doing is providing returns for the shareholders of corporations. If we were to simply copy the UK National Health Service and spend money in exactly the same way as they do, we would spend the same amount in public funds and almost nothing in private funds—and the UK has a higher mean lifespan than the US.
This is absolutely a no-brainer. Burn the whole system of private insurance down. Copy a healthcare system that actually works, like they use in every other First World country.
It wouldn’t even be that complicated to implement: We already have a single-payer healthcare system in the US; it’s called Medicare. Currently only old people get it; but old people use the most healthcare anyway. Hence, Medicare for All: Just lower the eligibility age for Medicare to 18 (if not zero). In the short run there would be additional costs for the transition, but in the long run we would save mind-boggling amounts of money, all while improving healthcare outcomes and extending our lifespans. Current estimates say that the net savings of Medicare for All would be about $5 trillion over the next 10 years. We can afford this. Indeed, the question is, as it was for infrastructure: How can we afford not to do this?
Isn’t this socialism? Yeah, I suppose it is. But healthcare is one of the few things that socialist countries consistently do extremely well. Cuba is a socialist country—a real socialist country, not a social democratic welfare state like Norway but a genuinely authoritarian centrally-planned economy. Cuba’s per-capita GDP PPP is a third of ours. Yet their life expectancy is actually higher than ours, because their healthcare system is just that good. Their per-capita healthcare spending is one-fourth of ours, and their health outcomes are better. So yeah, let’s be socialist in our healthcare. Socialists seem really good at healthcare.
And this makes sense, if you think about it. Doctors can do their jobs a lot better when they’re focused on just treating everyone who needs help, rather than arguing with insurance companies over what should and shouldn’t be covered. Preventative medicine is extremely cost-effective, yet it’s usually the first thing that people skimp on when trying to save money on health insurance. A variety of public health measures (such as vaccination and air quality regulation) are extremely cost-effective, but they are public goods that the private sector would not pay for by itself.
It’s not as if healthcare was ever really a competitive market anyway: When you get sick or injured, do you shop around for the best or cheapest hospital? How would you even go about that, when they don’t even post most of their prices and what prices they post are often wildly different than what you’ll actually pay?
The only serious argument I’ve heard against single-payer healthcare is a moral one: “Why should I have to pay for other people’s healthcare?” Well, I guess, because… you’re a human being? You should care about other human beings, and not want them to suffer and die from easily treatable diseases?
I don’t know how to explain to you that you should care about other people.

Single-payer healthcare is not only affordable: It would be cheaper and better than what we are currently doing. (In fact, almost anything would be cheaper and better than what we are currently doing—Obamacare was an improvement over the previous mess, but it’s still a mess.)
What about public education? Well, we already have that up to the high school level, and it works quite well.
Contrary to popular belief, the average public high school has better outcomes in terms of test scores and college placements than the average private high school. There are some elite private schools that do better, but they are extraordinarily expensive and they self-select only the best students. Public schools have to take all students, and they have a limited budget; but they have high quality standards and they require their teachers to be certified.
The flaws in our public school system are largely from it being not public enough, which is to say that schools are funded by their local property taxes instead of having their costs equally shared across whole states. This gives them the same basic problem as private schools: Rich kids get better schools.
If we removed that inequality, our educational outcomes would probably be among the best in the world—indeed, in our most well-funded school districts, they are. The state of Massachusetts which actually funds their public schools equally and well, gets international test scores just as good as the supposedly “superior” educational systems of Asian countries. In fact, this is probably even unfair to Massachusetts, as we know that China specifically selects the regions that have the best students to be the ones to take these international tests. Massachusetts is the best the US has to offer, but Shanghai is also the best China has to offer, so it’s only fair we compare apples to apples.
Public education has benefits for our whole society. We want to have a population of citizens, workers, and consumers who are well-educated. There are enormous benefits of primary and secondary education in terms of reducing poverty, improving public health, and increased economic growth.
So there’s my impassioned argument for why we should continue to support free, universal public education up to high school.
When it comes to college, I can’t be quite so enthusiastic. While there are societal benefits of college education, most of the benefits of college accrue to the individuals who go to college themselves.
The median weekly income of someone with a high school diploma is about $730; with a bachelor’s degree this rises to $1200; and with a doctoral or professional degree it gets over $1800. Higher education also greatly reduces your risk of being unemployed; while about 4% of the general population is unemployed, only 1.5% of people with doctorates or professional degrees are. Add that up over all the weeks of your life, and it’s a lot of money.
The net present value of a college education has been estimated at approximately $1 million. This result is quite sensitive to the choice of discount rate; at a higher discount rate you can get the net present value as “low” as $250,000.
With this in mind, the fact that the median student loan debt for a college graduate is about $30,000 doesn’t sound so terrible, does it? You’re taking out a loan for $30,000 to get something that will earn you between $250,000 and $1 million over the course of your life.
There is some evidence that having student loans delays homeownership; but this is a problem with our mortgage system, not our education system. It’s mainly the inability to finance a down payment that prevents people from buying homes. We should implement a system of block grants for first-time homeowners that gives them a chunk of money to make a down payment, perhaps $50,000. This would cost about as much as the mortgage interest tax deduction which mainly benefits the upper-middle class.
Higher education does have societal benefits as well. Perhaps the starkest I’ve noticed is how categorically higher education decided people’s votes on Donald Trump: Counties with high rates of college education almost all voted for Clinton, and counties with low rates of college education almost all voted for Trump. This was true even controlling for income and a lot of other demographic factors. Only authoritarianism, sexism and racism were better predictors of voting for Trump—and those could very well be mediating variables, if education reduces such attitudes.
If indeed it’s true that higher education makes people less sexist, less racist, less authoritarian, and overall better citizens, then it would be worth every penny to provide universal free college.
But it’s worth noting that even countries like Germany and Sweden which ostensibly do that don’t really do that: While college tuition is free for Swedish citizens and Germany provides free college for all students of any nationality, nevertheless the proportion of people in Sweden and Germany with bachelor’s degrees is actually lower than that of the United States. In Sweden the gap largely disappears if you restrict to younger cohorts—but in Germany it’s still there.
Indeed, from where I’m sitting, “universal free college” looks an awful lot like “the lower-middle class pays for the upper-middle class to go to college”. Social class is still a strong predictor of education level in Sweden. Among OECD countries, education seems to be the best at promoting upward mobility in Australia, and average college tuition in Australia is actually higher than average college tuition in the US (yes, even adjusting for currency exchange: Australian dollars are worth only slightly less than US dollars).
What does Australia do? They have a really good student loan system. You have to reach an annual income of about $40,000 per year before you need to make payments at all, and the loans are subsidized to be interest-free. Once you do owe payments, the debt is repaid at a rate proportional to your income—so effectively it’s not a debt at all but an equity stake.
In the US, students have been taking the desperate (and very cyberpunk) route of selling literal equity stakes in their education to Wall Street banks; this is a terrible idea for a hundred reasons. But having the government have something like an equity stake in students makes a lot of sense.
Because of the subsidies and generous repayment plans, the Australian government loses money on their student loan system, but so what? In order to implement universal free college, they would have spent an awful lot more than they are losing now. This way, the losses are specifically on students who got a lot of education but never managed to raise their income high enough—which means the government is actually incentivized to improve the quality of education or job-matching.
The cost of universal free college is considerable: That $1.3 trillion currently owed as student loans would be additional government debt or tax liability instead. Is this utterly unaffordable? No. But it’s not trivial either. We’re talking about roughly $60 billion per year in additional government spending, a bit less than what we currently spend on food stamps. An expenditure like that should have a large public benefit (as food stamps absolutely, definitely do!); I’m not convinced that free college would have such a benefit.
It would benefit me personally enormously: I currently owe over $100,000 in debt (about half from my undergrad and half from my first master’s). But I’m fairly privileged. Once I finally make it through this PhD, I can expect to make something like $100,000 per year until I retire. I’m not sure that benefiting people like me should be a major goal of public policy.
That said, I don’t think universal free college is a terrible policy. Done well, it could be a good thing. But it isn’t the no-brainer that single-payer healthcare is. We can still make sure that students are not overburdened by debt without making college tuition actually free.

Green New Deal Part 2: How do we get to net-zero carbon emissions?

Apr 14 JDN 2458588

I said in my post last week that the Green New Deal has “easy parts”, “hard parts”, and “very hard parts”, and discussed one of the “easy parts”: increased investment in infrastructure. Next week I’ll talk about another “easy part”, guaranteeing education and healthcare.

Today is the most important “hard part”: Reducing our net carbon emissions to zero—or even less.

“Meeting 100 percent of the power demand in the United States through clean, renewable, and zero-emission energy sources.”

“Overhauling transportation systems in the United States to eliminate pollution and greenhouse gas emissions from the transportation sector as much as is technologically feasible, including through investment in – (i) zero-emission vehicle infrastructure and manufacturing; (ii) clean, affordable, and accessible public transportation; and (iii) high-speed rail.”

“Spurring massive growth in clean manufacturing in the United States and removing pollution and greenhouse gas emissions from manufacturing and industry as much as is technologically feasible.”

“Working collaboratively with farmers and ranchers in the United States to eliminate pollution and greenhouse gas emissions from the agricultural sector as much as is technologically feasible.”

There have been huge expansions in solar and wind power generation, which are now cheaper than coal, nuclear, and hydroelectric, on a par with natural gas, and only outcompeted by geothermal. As a result of this dramatic increase in renewable energy production, electric power is no longer the largest source of carbon emissions in the United States; it is now second to transportation.
Policy clearly matters here: While total US carbon emissions were trending downward during the Obama administration, they began trending back upward once Trump took office. Even under Obama, they were not trending down fast enough to realistically meet the Paris Agreement targets. Only 14 states are on track to meet those targets, and they are all hard-Blue states except for Virginia and North Carolina. Unsurprisingly, the most carbon-efficient states are New York and California; yet even our emissions (about 9 tonnes per person per year, about twice the world average) are still far too high.
Of course the US is not alone in failing to meet the targets; in the EU, only three countries (Sweden, France, and Germany) are on track to hit the Paris targets. How did they do it? Germany has managed to do it mainly by expanding wind power, but for most countries, the fastest route to zero-carbon electricity is clearly nuclear power.
Germany has been foolishly phasing out their nuclear capacity, but it’s still 11% of their generation; Sweden’s grid is 40% nuclear; and France has a whopping 72% of their grid on nuclear (no other country comes close). The US grid is about 20% nuclear, which isn’t bad; but if California for instance had not phased out half of our nuclear generation since 2001, we could have taken out 15,000 GWh/yr of natural gas generation instead. At least we did basically eliminate coal and oil power in California, so that’s good.
How much would it cost to convert the entire US electricity grid to renewables and nuclear by 2050? Estimates vary widely, but a good ballpark figure is about $20 trillion.
Let’s not kid ourselves: That is a lot. It’s almost an entire year of the whole US economy. It would be enough to establish a permanent fund to end world hunger almost ten times over. Inflation-adjusted, it’s five times the total amount spent by the US in the Second World War.
Completely re-doing our entire electricity generation system is a project on a scale we’ve really never attempted before. It would be very difficult and very expensive.
But is it feasible? Yes, it’s entirely feasible. Assuming our real GDP grows at a paltry 2% per year between now and 2050, the total economic output of the United States during that period will be almost $1 quadrillion. $20 trillion is only 2% of that. Since the top 1% get about 20% of the income, this means that we could raise enough revenue for this project by simply raising the tax rate on the top 1% by 10 percentage points—which would still make the top income tax rate substantially lower than what we had as recently as the 1970s.
Unfortunately, converting the electricity grid is only part of the story. We also need to make radical changes in our transportation system—switching from airplanes to high-speed rail, and converting cars either to electric cars or public transit systems. Trains are really the best bet, but rail systems have a high up-front cost to build.
Even state-of-the-art high-speed rail systems just can’t be a jet airliner for speed. The best high-speed rail systems can cruise at about 250 kph, while a cruising Boeing 737 can easily exceed 800 kph. We’re just going to have to get used to our long-distance trips taking longer. Even 250 kph is a lot better than the 100 kph you’d probably average driving (not counting stops), which is also about the speed that most current US trains get—far worse than what they have in Europe or even China.
Then we have to deal with the other sources of carbon emissions, like manufacturing and agriculture. It’s simply not realistic to expect that we will actually produce zero carbon emissions; instead our goal needs to be net zero, which means we’ll need some way of pulling carbon out of the air.
To some extent, this is easier than it sounds: Reforestation is a very easy, efficient way of pulling carbon out of the air. Unfortunately it is also very slow, and can only be done in appropriate climates. To really pull enough carbon out of the air fast enough, we’re going to need industrial carbon sequestration or some form of geoengineering—right now iron seeding looks like the most promising candidate, but it could only compensate for about 1/6 of current carbon emissions. Solar geoengineering could do more—but at a very high cost, since we’re talking about pumping poisonous chemicals into the air in order to block out sunlight.
The reason we need to do this is essentially that we have waited too long: Had we started the process of converting the whole grid to renewables in the 1970s like we should have, we wouldn’t need such desperate measures now. But we didn’t, so here we are.
Estimates of how much it will cost to do all this vary even more widely, to the point where I’m hesitant to even put a number on it. But it seems likely that in addition to the $20 trillion for the electric grid, it will probably be something like another $30 trillion to do everything else that is necessary. But the global damage from climate change is estimated to be as much as $3.3 trillion per yearso a total of over $100 trillion over 30 years. Spending $50 trillion to save $100 trillion doesn’t sound like such a bad deal, does it?

Green New Deal Part 1: Why aren’t we building more infrastructure?

Apr 7 JDN 2458581

For the next few weeks, I’ll be doing a linked series of posts on the Green New Deal. Some parts of it are obvious and we should have been doing them for decades already; let’s call these “easy parts”. Some parts of it will be difficult, but are definitely worth doing; let’s call these “hard parts”. And some parts of it are quite radical and may ultimately not be feasible—but may still be worth trying; let’s call these “very hard parts”.

Today I’m going to talk about some of the easy parts.

“Repairing and upgrading the infrastructure in the United States, including [. . .] by eliminating pollution and greenhouse gas emissions as much as technologically feasible.”

“Building or upgrading to energy-efficient, distributed, and ‘smart’ power grids, and working to ensure affordable access to electricity.”

“Upgrading all existing buildings in the United States and building new buildings to achieve maximal energy efficiency, water efficiency, safety, affordability, comfort, and durability, including through electrification.”

Every one of these proposals is basically a no-brainer. We should have been spending something like $100 billion dollars a year for the last 30 years doing this, and if we had, we’d have infrastructure that would be the envy of the world.
Instead, the ASCE gives our infrastructure a D+: passing, but just barely. We are still in the top 10 in the World Bank’s infrastructure ratings, but we have been slowly slipping downward in the rankings.

 

Where did I get my $100 billion a year figure from? Well, we have about a $15 billion annual shortfall in highway maintenance, $13 billion in waterway maintenance, and $25 billion in dam repairs. That’s $53 billion. But that’s just to keep what we already have. In order to build more infrastructure, or upgrade it to be better, we’re going to need to spend considerably more. Double it and make it a nice round number, and you get $100 billion.

 

Of course, $100 billion a year is not a small amount of money.
How would we pay for such a thing?

 

That’s the thing: We wouldn’t need to.

 

Infrastructure investment doesn’t have to be “paid for” in the usual sense. We don’t need to raise taxes. We don’t need to cut spending. We can just add infrastructure spending onto other spending, raising the deficit directly. We can borrow money to fund the projects, and then by the time those bonds mature we will have made enough additional tax revenue from the increased productivity (and the Keynes multiplier) that we will have no problem paying back the debt.

 

Funding investment is what debt is supposed to be for. Particularly when interest rates are this low (currently about 3% nominal, which means about 1% adjusted for inflation), there is very little downside to taking out more debt if you’re going to plow that money into productive investments.

 

Of course debt can be used for anything money can, and using debt for all your spending is often not a good idea (but it can be, if your income is inconsistent or you have good reasons to think it will increase in the future). But I’m not suggesting the government should use debt to fund Medicare and Social Security payments; I’m merely suggesting that they should use debt to fund infrastructure investment. Medicare and Social Security are, at their core, social insurance programs; they spread wealth around, which has a lot of important benefits; but they don’t meaningfully create new wealth, so you need to be careful about how you pay for them. Infrastructure investment creates new wealth. The extra value is basically pulled from thin air; you’d be a fool not to take it.

 

This is also why I just can’t get all that upset about student loans (even though I personally would personally stand to gain a small house if student debt were to suddenly evaporate). Education is the most productive investment we have, and most of the benefits of education do actually accrue to the individual who is being educated. It therefore stands to reason that students should pay for their own education, and since most of us couldn’t afford to pay in cash, it stands to reason that we should be offered loans.

 

There are some minor changes I would make to the student loan system, such as lower interest rates, higher limits to subsidized loans, stricter regulations on private student loans, and a simpler forgiveness process that doesn’t result in ridiculous tax liability. But I really don’t see the need to go to a fully taxpayer-funded higher education system. On the other hand, it wouldn’t necessarily be bad to go to a fully taxpayer-funded system; it seems to work quite well in Germany, France, and most of Scandinavia. I just don’t see this as a top priority.

 

It feels awful having $100,000 in debt, but it’s really not that bad when you realize that a college education will increase your lifetime earnings by an average of $1 million (and more like $2 million in my case because I’m going for a PhD, PhDs are more valuable than bachelor’s degrees, and even among PhDs, economists are particularly well-paid). You are being offered the chance to apy $100,000 now to get $1 million later. You should definitely take that deal.

 

And yet, we still aren’t increasing our infrastructure investment. Trump said he would, and it seemed like one of his few actual good ideas (remember the Stopped Clock Principle: reversed stupidity is not intelligence); but so far, no serious infrastructure plan has materialized.

 

Despite extremely strong bipartisan support for increased infrastructure investment, we don’t seem to be able to actually get the job done.
I think I know why.

 

The first reason is that “infrastructure” is a vague concept, almost a feel-good Applause Light like “freedom” or “justice”. Nobody is ever going to say they are against freedom or justice. Instead they’ll disagree about what constitutes freedom or justice.

 

And likewise, while almost everyone will agree that infrastructure as a concept is a good thing, there can be large substantive disagreements over just what kind of infrastructure to build. We want better transportation: Does that mean more roads, or train lines instead? We want cheaper electricity: When we build new power plants, should they use natural gas, solar, or nuclear power? We want to revitalize inner cities: Does that mean public housing, community projects, or subsidies for developers? Nobody wants an inefficient electricity grid, but just how much are we willing to invest in making it more efficient, and how? Once the infrastructure is built, should it be publicly owned and tax-funded, or privatized and run for profit?
This reason is not going to go away. We simply have to face up to it, and find a way to argue substantively for the specific kinds of infrastructure we want. It should be trains, not roads. It should be solar, wind, and nuclear, not natural gas, and certainly not coal or oil. It should be public housing and community projects, not subsidies for developers. Most of the infrastructure should be publicly owned, and what isn’t should be strictly regulated.

 

Yet there is another reason, which I think we might be able to eliminate. Most people seem to think that we need to pay for infrastructure the way we would need to pay for expanded social programs or military spending. They keep asking “How will this be paid for?” (And despite a lot of conservatives frothing about it—I will not give them ad revenue by linking—Alexandria Ocasio-Cortez was not wrong when she said “The same way we pay for everything else.” We tax and spend; that’s what governments do. It’s always a question of what taxes and what spending.)

 

But we really don’t need to pay for infrastructure at all. Infrastructure will pay for itself; we simply need to finance it up front. And when we’re paying real interest rates of 1%, that’s not a difficult thing to do. If interest rates start to rise, we may want to pull back on that; but that’s not something that will happen overnight. We would see it coming, and have a variety of fiscal and monetary tools available to deal with it. The fear of possibly paying a bit more interest 30 years from now is a really stupid reason not to fix bridges that are crumbling today.

 

So when we talk about the Green New Deal (or at least the “easy parts”), let’s throw away this nonsense about “paying for it”. Almost all of these programs are long-term investments; they will pay for themselves. There are still substantive choices to be made about what exactly to build and where and how; but the US is an extraordinarily rich country with virtually unlimited borrowing power.

 

We can afford to do this.

 

Indeed, I think the question we should really be asking is:
How can we afford not to do this?

SESTA/FOSTA: oppression through moral panic

Mar 31 JDN 2458574

The road to Hell is paved with good intentions.

The “Stop Enabling Sex Traffickers Act” and “Fight Online Sex Traffickers Act”. Who could disagree with that? Nobody wants to be on the side of sex traffickers.

Beware bills with such one-sided names; they are almost never what they seem. The “USA PATRIOT Act” was one of the most authoritarian and un-American pieces of legislation ever produced.

The bill was originally two bills, SESTA and FOSTA, which were then merged. For the rest of this post I’m just going to call it SESTA for short.

SESTA passed with overwhelming support; the vote totals were 388 to 25 in the House and 97 to 2 in the Senate. Apparently members of Congress fall for that sort of one-sided naming, because they also passed the USA PATRIOT Act 357 to 66 in the House and 98 to 1 in the Senate. This is the easiest way to take away our freedoms: Make it sound like you are doing something obviously good that no sane person could disagree with. If fascism comes to America, it will be called the “Puppies Are Cute Act” and it will pass with overwhelming support.

Of course I’m against sex trafficking. Almost everyone is against sex trafficking. The problem is that SESTA doesn’t actually do much to fight sex trafficking, may in some cases make sex trafficking worse, and sets a precedent that could undermine fundamental civil liberties.

So, what does SESTA actually do? At its core, it changes the way the Internet is regulated. It has been a basic principle of Internet regulation from the beginning that websites aren’t responsible for the actions of their users; unless a site is actively designed for an illegal purpose, the fact that it is used for illegal purposes is not the website’s fault.

This is how we regulate other forms of communication. If a mob boss calls a hit man on the phone, we don’t sue the phone company. If banks exchange emails to collude on manipulating interest rates, we don’t put the email sysadmin in jail. If terrorists send messages through the mail, we don’t arrest the postal workers.

There may be some grey areas, but generally courts have leaned toward greater liberty: The Anarchist’s Cookbook sure looks an awful lot like a means for conducting acts of sabotage and terrorism, but we’re so loathe to ban books that we allow it to be sold.

That is, until now. Because it’s about sex crime, we went into moral panic mode and stopped thinking clearly about the real implications of the policy. We don’t react the same way to gun crime—if we did, we’d have re-instituted the assault weapons ban a decade ago. This is clearly part of our double standard between sex and violence. Sex trafficking is horrible, to be sure; but I think that gun homicides clearly worse. (Yes, it is horrible to be forced into sexual slavery; but would you rather be shot to death?) But we wildly overreact to the former and do basically nothing to stop the latter. And the scale of the two problems is not just comparable, it’s almost identical: About 18,000-20,000 people are trafficked into the US each year for sex, and there were precisely 19,362 homicides in the US last year, of which 14,415 were committed with firearms.
Indeed, why focus specifically on sex trafficking? The majority of forced labor trafficking is not sex. I suppose it seems worse to become a sex slave than to become a slave at a diamond mine or a tobacco plantation… but not that much worse. Not so much worse that the former merits an overwhelming response and the latter barely any response at all.

SESTA breaks the usual principles applied to regulating communication and instead allows the government to penalize websites that are used to facilitate any kind of sale of sexual services.

Note, first of all, that this suddenly changes the topic from sex trafficking to sex work; the vast majority of sex workers are not trafficking victims but voluntary participants. In countries where brothels are legal and regulated, job satisfaction of sex workers is not statistically different from median job satisfaction overall.

Second, the bill doesn’t really do anything to target sex trafficking. It was already illegal to use websites for sex trafficking and already illegal to advertise sex trafficking via the Web. In fact, there is reason to think that pushing sex trafficking further into the Dark Web will only make the job of law enforcement harder.

Part of the liability protections for websites which will now be stripped away included a “right to moderate”: using moderation tools to remove illegal content would not result in additional liability. Under SESTA, this has changed; sites will now want to avoid moderating illegal content, because in so doing they would be effectively admitting that they knew it existed. Since there can never be any guarantee of removing 100% of all illegal content without shutting the entire site down, sites may choose instead to not moderate, so they have more plausible deniability when illegal content is ultimately found.

Instead, the main effect of SESTA will be to put more sex workers in danger. Where previously they could use websites to screen clients, they now have to return to in-person contact that is much more dangerous. It pushes them from the relative security of working indoors and online to the extreme danger of walking the street or working for a pimp. SESTA also removes the opportunity for sex workers to communicate with each other, because now any content related to sex work is banned; and these kinds of communication networks can be literally a matter of life and death.

Make no mistake: People will die over this. Mostly women and queer men (because the vast majority of sex work clients are male). The homicide rate of female victims dropped an astonishing 17 percent when Craigslist iSmplemented its Erotic section that allowed sex workers to use the Internet to screen clients. SESTA is taking that away, so we can expect homicides of female victims to rise.

SESTA is also blatantly Unconstitutional. The original form of the bill included an ex post facto clause, which violates one of the most basic principles of the Constitution.

Even with that removed, SESTA is obviously in violation of the First Amendment; this is censorship. It has already been used to justify Tumblr’s purge of all sexual content, which caused a 20% drop in user base and an exodus of erotic artists and sex workers to other platforms, and will disproportionately harm queer youth because Tumblr had previously been one of the Internet’s safest spaces for exploring sexual identity.

And now that the precedent has been set to hold websites responsible for their users, expect to see more of this. We already see sites being held responsible for copyright infringement; but we could soon see similar laws passed punishing sites for “facilitating” illegal drug use, hacking, or hate speech. Operators of communication platforms will be forced to become arms of law enforcement or face prison themselves.

Of course we all want to stop sex trafficking. Everyone agrees on that. But a bill that targets bad things can still be a bad bill.

The double standard between violence and sex in US media

Mar 24 JDN 2458567

The video game Elder Scrolls IV: Oblivion infamously had its ESRB rating upgraded from “Teen” to “Mature”, raising the minimum age to purchase it from 13 to 17. Why? Well, they gave two major reasons: One was that there was more blood and detailed depictions of death than in the original version submitted for review. The other was that a modder had made it possible to view the female characters with naked breasts.

These were considered comparable arguments—if anything, the latter seemed to carry more weight.

Yet first of all this was a mod: You can make a mod do just about anything. (Indeed, there has long since been a mod for Oblivion that shows full-frontal nudity; had this existed when the rating was upgraded, they might have gone all the way to “Adults Only”, ostensibly only raising the minimum age to 18, but in practice making stores unwilling to carry the game because they think of it as porn.)

But suppose in fact that the game had included female characters with naked breasts. Uh… so what? Why is that considered so inappropriate for teenagers? Men are allowed to walk around topless all the time, and male and female nipples really don’t look all that different!

Now, I actually think “Mature” is the right rating for Oblivion. But that’s because Oblivion is about a genocidal war against demons and involves mass slaughter and gruesome death at every turn—not because you can enable a mod to see boobs.

The game Grand Theft Auto: San Andreas went through a similar rating upgrade, from “Mature” to “Adults Only”—resulting it being the only mass-market “Adults Only” game in the US. This was, again, because of a mod—though in this case it was more like re-enabling content that the original game had included but disabled. But let me remind you that this is a game where you play as a gangster whose job is to steal cars, and who routinely guns down police officers and massacres civilians—and the thing that really upset people was that you could enable a scene where your character has sex with his girlfriend.

Meanwhile, games like Manhunt, where the object of the game is to brutally execute people, and the Call of Duty series graphically depicting the horrors of war (and in the Black Ops subseries, espionage, terrorism, and torture), all get to keep their “Mature” ratings.

And consider that a game like Legend of Zelda: Breath of the Wild, rated “Everyone 10+”, contains quite a lot of violence, and several scenes where, logically, it really seems like there should be nudity—bathing, emerging from a cryonic stasis chamber, a doctor examining your body for wounds—but there isn’t. Meanwhile, a key part of the game is killing goblin-like monsters to collect their organs and use them for making potions. It’s all tastefully depicted violence, with little blood and gore; okay, sure. But you can tastefully depict nudity as well. Why are we so uncomfortable with the possibility of seeing these young adult characters naked… while bathing? In this case, even a third-party mod that allowed nudity was itself censored, on the grounds that it would depict “underage characters”; but really, no indication is given that these characters are underage. Based on their role in society, I always read them as about 19 or 20. I guess they could conceivably be as young as 16… and as we all know, 16-year-olds do not have genitals, are never naked, and certainly never have sex.

We’re so accustomed to this that it may even feel uncomfortable to you when I suggest otherwise: “Why would you want to see Link’s penis as he emerges from the cryonic chamber?” Well, I guess, because… men have penises. (Well, cis men anyway; actually it would be really bold and interesting if they decided to make Link trans.) We should see that as normal, and not be so uncomfortable showing it. The emotional power of the scene comes in part from the innocence and vulnerability of nudity, which is undercut by you mysteriously coming with non-removable indestructible underwear. Part of what makes Breath of the Wild so, er, breathtaking is that you can often screenshot it and feel like you are looking at a painting—and I probably don’t need to mention that nudity has been a part of fine art since time immemorial. Letting you take off the protagonist’s underwear wouldn’t show anything you can’t see by looking at Michelangelo’s David.

And would it really be so traumatizing to the audience to see that? By the time you’re 10 years old, I hope you have seen at least one picture of a penis. If not, we’ve been doing sex ed very, very wrong. In fact, I’m quite confident that most of the children playing would not be disturbed at all; amused, perhaps, but what’s wrong with that? If looking at the protagonist’s cel-shaded genitals makes some of the players giggle, does that cause any harm? Some people play through Breath of the Wild without ever equipping clothing, both as a challenge (you get no armor protection that way), and simply for fun (some of the characters do actually react to you being “naked”, or as naked as the game will allow—and most of their reactions would make way more sense if you weren’t wearing magical underwear).

Of course, it’s not just video games. The United States has a bizarre double standard between sex and violence in all sorts of media.

On television, you can watch The Walking Dead on mainstream cable and see, as Andrew Boschert put it, a man’s skull being smashed with a hammer, people’s throats slit into a trough, a meat locker with people’s torsos and limbs hung by hooks and a man’s face being eaten off while he is still alive”; but show a single erect penis, and you have to go to premium channels.

Even children’s television is full of astonishing levels of violence. Watch Tom and Jerry sometime, and you’ll realize that the only difference between it and the Simpsons parody Itchy & Scratchy is that the Simpsons version is a bit more realistic in depicting how such violence would affect the body. In mainstream cartoons, characters can get shot, blown up, crushed by heavy objects, run over by trains, hit with baseball bats and frying pans—but God forbid you ever show a boob.

In film, the documentary This Film Is Not Yet Rated shows convincingly that not only are our standards for sexual content versus violent content wildly disproportionate, furthermore any depiction of queer sexual content is immediately considered pornographic while the equivalent heterosexual content is not. It’s really quite striking to watch: They show scenes with the exact same sex act, even from more or less the same camera angles, and when it’s a man and a woman, it gets R, but if it’s two men or two women, it gets NC-17.

The movie Thirteen is rated R for its depiction of drugs and sex, despite being based on a true story about actual thirteen-year-olds. Evan Rachel Wood was 15 at the time of filming and 16 at the time of release, meaning that she was two years older than the character she played, and yet a year later still not old enough to watch her own movie without parental permission. Granted, Thirteen is not a wholesome film; there’s a lot of disturbing stuff in it, including things done by (and to) teenagers that really shouldn’t be.

But it’s not as if violence, even against teenagers, is viewed as so dangerous for young minds. Look at the Hunger Games, for example; that is an absolutely horrific level of violence against teenagers—people get beheaded, blown up, burned, and mutilated—and it only received a PG-13 rating. The Dark Knight received only a PG-13 rating, despite being about a terrorist who murders hundreds and implants a bomb in one of his henchmen (and also implements the most literal and unethical Prisoner’s Dilemma experiment ever devised).

Novels are better about this sort of thing: You actually can have sex scenes in mainstream novels without everyone freaking out. Yet there’s still a subtler double standard: You can’t show too much detail in a sex scene, or you’ll be branded “erotica”. But there’s no special genre ghetto you get sent to for too graphically depicting torture or war. (I love the Culture novels, but honestly I think Use of Weapons should come with trigger warnings—it’s brutal.) And as I have personally struggled with, it’s very hard to write fiction honestly depicting queer characters without your whole book being labeled “queer fiction”.

Is it like this in other countries? Well, like most things, it depends on the country. In China and much of the Middle East, the government has control over almost every sort of content. Most countries have some things they censor and some things they don’t. The US is unusual: We censor very little. Content involvingviolence and political content are essentially unrestricted in the US. But sex is one of the few things that we do consistently censor.

Media in Europe especially is much more willing to depict sex, and a bit less willing to depict violence. This is particularly true in the Netherlands, where there are films rated R for sex in the US but 6 (that’s “minimum age of viewing, 6 years”) in the Netherlands, because we consider naked female breasts to be a deal-breaker and they consider them utterly harmless. Quite frankly, I’m much more inclined toward the latter assessment.

Japan has had a long tradition of sexuality in art and media, and only when the West came in did they start introducing censorship. But Japan is not known for its half-measures; in 1907 they instituted a ban on explicit depiction of genitals that applies to essentially all media—even media explicitly marketed as porn still fuzzes over keys parts of the images. Yet some are still resisting this censorship: A ban on sexual content in manga drew outrage from artists as recently as 2010.

Hinduism has always been more open to sexuality than Christianity, and it shows in Indian culture in various ways. The Kama Sutra is depicted in the West as a lurid sex manual, when it’s really more of a text on living a full life, finding love, and achieving spiritual transcendence (of which sex is often a major part). But like Japan, India began to censor sex as it began to adopt Western cultural influences, and now implements a very broad pornography ban.

What does this double standard do to our society?

Well, it’s very hard to separate causation from correlation. So I can’t really say that it is because of this double standard in media that we have the highest rates of teen pregnancy and homicide in the First World. But it seems like it might be related, at least; perhaps they come from a common source, the same sexual repression and valorization of masculinity expressed through violence.

I do know some things that are direct negative consequences of the censorship of sex in US media. The most urgent example of this is the so-called “Stop Enabling Sex Traffickers Act” (it does more or less the exact opposite, much like the “PATRIOT ACT” and George W. Bush’s “Clean Air Act”). That will have to wait until next week’s post.

Stop calling it “piracy”

Mar 17 JDN 2458560

It’s a bit of a pet peeve, but much like I insist people use “net wealth” instead of “net worth” (people are not worth more because they have more money!), I find it aggravating that the standard term for copyright infringement for personal use is “piracy”.

The word “piracy” is meant to describe some very severe crimes: Pirates on the high seas board ships to rape, enslave, and murder people. There are still actual pirates today, and they are murderous psychopaths. We glamorize pirates in much the same was as we glamorize organized crime; but the reality of actual piracy is horrific, monstrous violence. This is nothing like the “piracy” of copying songs and video games without permission.

If you need a word for copying songs and video games without permission, how about “unauthorized copying”? That’s what it is. You haven’t stolen anything. You’re not a pirate. You’ve copied something without authorization.

This can still be a harmful thing to do, and there are some cases where I think we rightfully make it illegal. But just from hearing the phrase “unauthorized copying” you can feel the difference: It already sounds like something that isn’t usually so bad and maybe shouldn’t always be against the law.

Indeed, it’s difficult to see exactly where the harm from most unauthorized copying is supposed to be. Even on the RIAA’s inflated estimates assuming that everyone who makes unauthorized copies would have otherwise purchased at retail price (which is clearly not true), total loss to the US music industry from unauthorized copying is less than $3 billion per year, while the total revenue of the music industry in the US is over $22 billion. So we’re talking about a roughly 12% reduction in revenue—and remember that this is an overestimate, because most of the people who make unauthorized copies would not have purchased the music at full price if they didn’t make the copies.

And most of those losses are to the very richest music producers, who are astonishingly rich indeed. The top 9 richest music producers in the US all have net wealth exceeding $100 million. It’s hard for me to see a 12% reduction in revenue for these nine-figure millionaires as a major loss to our society.

It might be a major loss to our society if weaker intellectual property enforcement had a chilling effect on the production of new content. And there is some reason to think that this could happen: Artists make their living selling content, and if that content can be copied for free it will be harder for them to make a living.

But it’s already really hard for most artists to make a living, and they make art anyway. There is no shortage of creative content in the world; indeed, there is an embarrassment of riches that makes it hard for new artists to break in and sometimes even hard for consumers to find the best content. If the goal is actually to support artists, there are obviously much better methods than granting Disney and Viacom totalitarian control over everything we read, hear, and see.

For instance, there are alternative modes of income support for artists that don’t require intellectual property enforcement, such as Patreon and Kickstarter. I make money on this very blog (not a lot mind you, but some extra spending cash) using Patreon without enforcing intellectual property. I’m not sure I could enforce intellectual property on my blog even if I tried.

A universal basic income is another option: Artists mostly create art because they want to, and only need to sell it because, like all humans, they have certain needs for food and shelter that must be met. With a sufficiently generous basic income, I think many artists would choose to share their work for free and live off the basic income, because it was never about making money but about creating art and spreading joy.

Or we could continue to enforce copyright, but in a much more limited manner: Say you get 30 years after publication, and whether or not your work has earned out by then, it goes to public domain and people can do whatever they want with it. Copy it, modify it, turn it into derivative works—yes, even make fanfiction and rule 34 porn, because that’s a form of artistic creation too.

I couldn’t find good data on this, but my suspicion is that most artistic works don’t turn a profit at all, and those that turn a profit generally do so within the first few years. Even if they paid out at a constant nominal rate, at any reasonable interest rate only about the first 30 years would really matter: At 7%, the net present value of $10,000 a year for 30 years is $124,000, while the net present value of $10,000 a year forever is only $143,000. This is because funds received in early years could be invested for that whole time (or used for something urgent and valuable), while funds received later can’t. There’s an old joke that may help you to remember that: “For $50, I’ll give you a million dollars! Such a deal! Oh, by the way, it’s $1 per year for the next million years.”

Extending copyright for decades simply doesn’t make sense if the goal is to support artists. (It makes perfect sense if the goal is to make Disney lobbyists happy.) Continuing to pay royalties for something you made 70 years ago may make you happy, but it wasn’t the incentive to produce that thing in the first place. I have trouble imagining an artist who would be willing to create a work if they received 70 years of royalties, but not if they only received 30 years of royalties.

In fact, economists studying copyright have estimated that the optimal duration of copyright to maximize creative innovation is even shorter than that: Only 15 years. There are a number of reasons for this, but perhaps the most important is that copyright can actually hinder some creativity, by making it harder to build off of the previous work of others. It’s one thing if all you have to do is re-name some characters in a novel and make a few other cosmetic changes (like Fifty Shades of Grey did; it was originally Twilight fanfiction); but that wouldn’t be so simple for a music remix or a video game mod. Depending on how the corporation that owns the original IP reacts, even a mod that looks and plays completely different could land you in court, because it was built on the same engine. There’s a great deal of ambiguity about just what constitutes a copyright violation in game modding.

And if we’re also thinking about patents as well as copyrights, intellectual property protection is the main cause of the high cost of brand-name drugs: People die because of that patent enforcement.

But there are complicated questions here about the proper way to balance the incentives. I think it would help to make the language clearer and less loaded: Don’t say “piracy”. Say “unauthorized copying”.

Defending yourself defends others

Mar 10 JDN 2458553

There’s a meme going around the feminist community that is very well-intentioned, but dangerously misguided. I first encountered it as a tweet, though it may have originated elsewhere:

If you’re promoting changes to women’s behaviour to “prevent” rape, you’re really saying “make sure he rapes the other girl”.

The good intention here is that we need to stop blaming victims. Victim-blaming is ubiquitous, and especially common and harmful in the case of sexual assault. If someone assaults you—or robs you, or abuses you—it is never your fault.

But I fear that there is a baby being thrown out with this bathwater: While failing to defend yourself doesn’t make it your fault, being able to defend yourself can still make you safer.

And, just as importantly, it can make others safer too. The game theory behind that is the subject of this post.

For purposes of the theory, it doesn’t matter what the crime is. So let’s set aside the intense emotional implications of sexual assault and suppose the crime is grand theft auto.

Some cars are defended—they have a LoJack system installed that will allow them to be recovered and the thieves to be prosecuted. (Don’t suppose it’s a car alarm; those don’t work.)

Other cars are not defended—once stolen, they may not be recovered.

There are two cases to consider: Defense that is visible, and defense that is invisible.

Let’s start by assuming that the defense is visible: When choosing which car to try to steal, the thieves can intentionally pick one that doesn’t have a LoJack installed. (This doesn’t work well for car theft, but it’s worth considering for the general question of self-defense. The kind of clothes you wear, the way you carry yourself, how many people are with you, and overall just how big and strong you look are visible signs of a capacity for self-defense.)

In that case, the game is one of perfect information: First each car owner chooses whether or not to install a LoJack at some cost L (in real life, about $700), and then thieves see which cars are equipped and then choose which car to steal.

Let’s say the probability of a car theft being recovered and prosecuted if it’s defended is p, and the probability of it being recovered if it’s not defended is q; p > q. In the real world, about half of stolen cars are recovered—but over 90% of LoJack-equipped vehicles are recovered, so p = 0.9 and q = 0.5.

Then let’s say the cost of being caught and prosecuted is C. This is presumably quite high: If you get convicted, you could spend time in prison. But maybe the car will be recovered and the thief won’t be convicted. Let’s ballpark that at about $30,000.

Finally, the value of successfully stealing a car is V. The average price of a used car in the US is about $20,000, so V is probably close to that.

If no cars are defended, what will the thieves choose? Assuming they are risk-neutral (car thieves don’t seem like very risk averse folks, in general), the expected benefit of stealing a car is V – q C. With the parameters above, that’s (20000)-(0.5)(30000) = $5,000. The thieves will choose a car at random and steal it.

If some cars are defended and some are not, what will the thieves choose? They will avoid the defended cars and steal one of the undefended cars.

But what if all cars are defended? Now the expected benefit is V – p C, which is (20000)-(0.9)(30000) = -$7,000. The thieves will not steal any cars at all. (This is actually the unique subgame-perfect equilibrium: Everyone installs a LoJack and no cars get stolen. Of course, that assumes perfect rationality.)

Yet that isn’t so impressive; everyone defending themselves results in everyone being defended? That sounds tautological. Expecting everyone to successfully defend themselves all the time sounds quite unreasonable. This might be what people have in mind when they say things like the quote above: It’s impossible for everyone to be defended always.

But it turns out that we don’t actually need that. Things get a lot more interesting when we assume that self-defense can be invisible. It would be very hard to know whether a car has a LoJack installed without actually opening it up, and there are many other ways to defend yourself that are not so visible—such as knowing techniques of martial arts or using a self-defense phone app.

Now the game has imperfect information. The thieves don’t know whether you have chosen to defend your car or not.

We need to add a couple more parameters. First is the number of cars per thief n. Then we need the proportion of cars that are defended. Let’s call it d. Then with probability d a given car is defended, and with probability 1-d it is not.

The expected value of stealing a car for the thieves is now this: V – p d C – q (1-d) C. If this is positive, they will steal a car; if it is negative, they will not.

Knowing this, should you install a LoJack? Remember that it costs you L to do so.

What’s the probability your car will be stolen? If they are stealing cars at all, the probability of your car being one stolen is 1/n. If that happens, you will have an expected loss of (1-p)V if you have a LoJack, or (1-q)V if you don’t. The difference between those is (p-q)V.

So your expected benefit of having a LoJack is (p-q)V/n – L. With the parameters above, that comes to: (0.9-0.5)(20000)/n – (700) = 8000/n – 700. So if there are no more than 11 cars per thief, this is positive and you should buy a LoJack. If there are 12 or more cars per thief, you’re better off taking your chances.

This only applies if the thieves are willing to steal at all. And then the interesting question is whether V – p d C – q (1-d) C is positive. For these parameters, that’s (20000) – (0.9)(30000)d – (0.5)(30000) + (0.5)(30000)d = 5000 – 12000 d. Notice that if we substitute in d=0 we get back $5,000, and at d=1 we get back -$7,000, just as before. There is a critical value of d at which the thieves aren’t sure whether to try or not: d* = 5/12 = 0.42.

Assuming that a given car is worth defending if it would be stolen (n <= 11), the equilibrium is actually when precisely d* of the cars are defended and 1-d* are not. Any less than this, and there is an undefended car that would be worth defending. Any more than this, and the thieves aren’t going to try to steal anything, so why bother defending?

Of course this is a very stylized model: In particular, we assumed that all cars are equally valuable and equally easy to steal, which is surely not true in real life.

Yet this model is still enough to make the most important point: Since presumably we do not value the welfare of the car thieves, it could happen that people choosing on their own would not defend their cars, but society as a whole would be better off if they did.

The net loss to society from a stolen car is (1-q)V if the car was not defended, or (1-p)V if it was. But if the thieves don’t steal any cars at all, the net loss to society is zero. The cost of defending a proportion d* of all cars is n d* L.

So if we are currently at d = 0, society is currently losing (1-q)V. We could eliminate this cost entirely by paying n d* L to defend a sufficient number of cars. Suppose n = 30. Then this total cost is (30)(5/12)(700) = $8,750. The loss from cars being stolen was (0.5)(20000) = $10,000. So it would be worth it, from society’s perspective, to randomly install LoJack systems in 42% of cars.

But for any given car owner, it would not be worth it; the expected benefit is 8000/30 – 700 = -$433. (I guess we could ask how much you’re willing to pay for “peace of mind”.)

Where does the extra benefit go? To all the other car owners. By defending your car, you are raising d and thereby lowering the expected payoff for a car thief. There is a positive externality; this is a public good. You get some of that benefit yourself, but others also share in that benefit.

This brings me at last to the core message of this post:

Self-defense is a public good.

The better each person defends themselves, the riskier it becomes for criminals to try to victimize anyone. Never feel guilty for trying to defend yourself; you are defending everyone else at the same time. In fact, you should consider taking actions to defend yourself even when you aren’t sure it’s worth it for you personally: That positive externality may be large enough to make your actions worthwhile for society as a whole.

Again, this does not mean we should blame victims when they are unable to defend themselves. Self-defense is easier for some people than others, and everyone is bound to slip up on occasion. (Also, eternal vigilance can quickly shade over into paranoia.) It is always the perpetrator’s fault.