Month: October 2022

The United Kingdom in transition

PNRJ current events, macroeconomics, personal, politics, public policy, tribal paradigm , , , , , , , , , , , , , ,

Oct 30 JDN 2459883

When I first decided to move to Edinburgh, I certainly did not expect it to be such a historic time. The pandemic was already in full swing, but I thought that would be all. But this year I was living in the UK when its leadership changed in two historic ways:

First, there was the death of Queen Elizabeth II, and the coronation of King Charles III.

Second, there was the resignation of Boris Johnson, the appointment of Elizabeth Truss, and then, so rapidly I feel like I have whiplash, the resignation of Elizabeth Truss.

In other words, I have seen the end of the longest-reigning monarch and the rise and fall of the shortest-reigning prime minister in the history of the United Kingdom. The three hundred-year history of the United Kingdom.

The prior probability of such a 300-year-historic event happening during my own 3-year term in the UK is approximately 1%. Yet, here we are. A new king, one of a handful of genuine First World monarchs to be coronated in the 21st century. The others are the Netherlands, Belgium, Spain, Monaco, Andorra, and Luxembourg; none of these have even a third the population of the UK, and if we include every Commonwealth Realm (believe it or not, “realm” is in fact still the official term), Charles III is now king of a supranational union with a population of over 150 million people—half the size of the United States. (Yes, he’s your king too, Canada!) Note that Charles III is not king of the entire Commonwealth of Nations, which includes now-independent nations such as India, Pakistan, and South Africa; that successor to the British Empire contains 54 nations and has a population of over 2 billion.

I still can’t quite wrap my mind around this idea of having a king. It feels even more ancient and anachronistic than the 400-year-old university I work at. Of course I knew that we had a queen before, and that she was old and would presumably die at some point and probably be replaced; but that wasn’t really salient information to me until she actually did die and then there was a ten-mile-long queue to see her body and now next spring they will be swearing in this new guy as the monarch of the fourteen realms. It now feels like I’m living in one of those gritty satirical fractured fairy tales. Maybe it’s an urban fantasy setting; it feels a lot like Shrek, to be honest.

Yet other than feeling surreal, none of this has affected my life all that much. I haven’t even really felt the effects of inflation: Groceries and restaurant meals seem a bit more expensive than they were when we arrived, but it’s well within what our budget can absorb; we don’t have a car here, so we don’t care about petrol prices; and we haven’t even been paying more than usual in natural gas because of the subsidy programs. Actually it’s probably been good for our household finances that the pound is so weak and the dollar is so strong. I have been much more directly affected by the university union strikes: being temporary contract junior faculty (read: expendable), I am ineligible to strike and hence had to cross a picket line at one point.

Perhaps this is what history has always felt like for most people: The kings and queens come and go, but life doesn’t really change. But I honestly felt more directly affected by Trump living in the US than I did by Truss living in the UK.

This may be in part because Elizabeth Truss was a very unusual politician; she combined crazy far-right economic policy with generally fairly progressive liberal social policy. A right-wing libertarian, one might say. (As Krugman notes, such people are astonishingly rare in the electorate.) Her socially-liberal stance meant that she wasn’t trying to implement horrific hateful policies against racial minorities or LGBT people the way that Trump was, and for once her horrible economic policies were recognized immediately as such and quickly rescinded. Unlike Trump, Truss did not get the chance to appoint any supreme court justices who could go on to repeal abortion rights.

Then again, Truss couldn’t have appointed any judges if she’d wanted to. The UK Supreme Court is really complicated, and I honestly don’t understand how it works; but from what I do understand, the Prime Minister appoints the Lord Chancellor, the Lord Chancellor forms a commission to appoint the President of the Supreme Court, and the President of the Supreme Court forms a commission to appoint new Supreme Court judges. But I think the monarch is considered the ultimate authority and can veto any appointment along the way. (Or something. Sometimes I get the impression that no one truly understands the UK system, and they just sort of go with doing things as they’ve always been done.) This convoluted arrangement seems to grant the court considerably more political independence than its American counterpart; also, unlike the US Supreme Court, the UK Supreme Court is not allowed to explicitly overturn primary legislation. (Fun fact: The Lord Chancellor is also the Keeper of the Great Seal of the Realm, because Great Britain hasn’t quite figured out that the 13th century ended yet.)

It’s sad and ironic that it was precisely by not being bigoted and racist that Truss ensured she would not have sufficient public support for her absurd economic policies. There’s a large segment of the population of both the US and UK—aptly, if ill-advisedly, referred to by Clinton as “deplorables”—who will accept any terrible policy as long as it hurts the right people. But Truss failed to appeal to that crucial demographic, and so could find no one to support her. Hence, her approval rating fell to a dismal 10%, and she was outlasted by a head of lettuce.

At the time of writing, the new prime minister has not yet been announced, but the smart money is on Rishi Sunak. (I mean that quite literally; he’s leading in prediction markets.) He’s also socially liberal but fiscally conservative, but unlike Truss he seems to have at least some vague understanding of how economics works. Sunak is also popular in a way Truss never was (though that popularity has been declining recently). So I think we can expect to get new policies which are in the same general direction as what Truss wanted—lower taxes on the rich, more privatization, less spent on social services—but at least Sunak is likely to do so in a way that makes the math(s?) actually add up.

All of this is unfortunate, but largely par for the course for the last few decades. It compares quite favorably to the situation in the US, where somehow a large chunk of Americans either don’t believe that an insurrection attempt occurred, are fine with it, or blame the other side, and as the guardrails of democracy continue breaking, somehow gasoline prices appear to be one of the most important issues in the midterm election.

You know what? Living through history sucks. I don’t want to live in “interesting times” anymore.

Updating your moral software

PNRJ core principles, ethics, politics, tribal paradigm , , , , , , , , , , , , , , , , , , , ,

Oct 23 JDN 2459876

I’ve noticed an odd tendency among politically active people, particular social media slacktivists (a term I do not use pejoratively: slacktivism is highly cost-effective). They adopt new ideas very rapidly, trying to stay on the cutting edge of moral and political discourse—and then they denigrate and disparage anyone who fails to do the same as an irredeemable monster.

This can take many forms, such as “if you don’t buy into my specific take on Critical Race Theory, you are a racist”, “if you have any uncertainty about the widespread use of puberty blockers you are a transphobic bigot”, “if you give any credence to the medical consensus on risks of obesity you are fatphobic“, “if you think disabilities should be cured you’re an ableist”, and “if you don’t support legalizing abortion in all circumstances you are a misogynist”.

My intention here is not to evaluate any particular moral belief, though I’ll say the following: I am skeptical of Critical Race Theory, especially the 1619 project which seems to be to include substantial distortions of history. I am cautiously supportive of puberty blockers, because the medical data on their risks are ambiguous—while the sociological data on how much happier trans kids are when accepted are totally unambiguous. I am well aware of the medical data saying that the risks of obesity are overblown (but also not negligible, particular for those who are very obese). Speaking as someone with a disability that causes me frequent, agonizing pain, yes, I want disabilities to be cured, thank you very much; accommodations are nice in the meantime, but the best long-term solution is to not need accommodations. (I’ll admit to some grey areas regarding certain neurodivergences such as autism and ADHD, and I would never want to force cures on people who don’t want them; but paralysis, deafness, blindness, diabetes, depression, and migraine are all absolutely worth finding cures for—the QALY at stake here are massive—and it’s silly to say otherwise.) I think abortion should generally be legal and readily available in the first trimester (which is when most abortions happen anyway), but much more strictly regulated thereafter—but denying it to children and rape victims is a human rights violation.

What I really want to talk about today is not the details of the moral belief, but the attitude toward those who don’t share it. There are genuine racists, transphobes, fatphobes, ableists, and misogynists in the world. There are also structural institutions that can lead to discrimination despite most of the people involved having no particular intention to discriminate. It’s worthwhile to talk about these things, and to try to find ways to fix them. But does calling anyone who disagrees with you a monster accomplish that goal?

This seems particularly bad precisely when your own beliefs are so cutting-edge. If you have a really basic, well-established sort of progressive belief like “hiring based on race should be illegal”, “women should be allowed to work outside the home” or “sodomy should be legal”, then people who disagree with you pretty much are bigots. But when you’re talking about new, controversial ideas, there is bound to be some lag; people who adopted the last generation’s—or even the last year’s—progressive beliefs may not yet be ready to accept the new beliefs, and that doesn’t make them bigots.

Consider this: Were you born believing in your current moral and political beliefs?

I contend that you were not. You may have been born intelligent, open-minded, and empathetic. You may have been born into a progressive, politically-savvy family. But the fact remains that any particular belief you hold about race, or gender, or ethics was something you had to learn. And if you learned it, that means that at some point you didn’t already know it. How would you have felt back then, if, instead of calmly explaining it to you, people called you names for not believing in it?

Now, perhaps it is true that as soon as you heard your current ideas, you immediately adopted them. But that may not be the case—it may have taken you some time to learn or change your mind—and even if it was, it’s still not fair to denigrate anyone who takes a bit longer to come around. There are many reasons why someone might not be willing to change their beliefs immediately, and most of them are not indicative of bigotry or deep moral failings.

It may be helpful to think about this in terms of updating your moral software. You were born with a very minimal moral operating system (emotions such as love and guilt, the capacity for empathy), and over time you have gradually installed more and more sophisticated software on top of that OS. If someone literally wasn’t born with the right OS—we call these people psychopaths—then, yes, you have every right to hate, fear, and denigrate them. But most of the people we’re talking about do have that underlying operating system, they just haven’t updated all their software to the same version as yours. It’s both unfair and counterproductive to treat them as irredeemably defective simply because they haven’t updated to the newest version yet. They have the hardware, they have the operating system; maybe their download is just a little slower than yours.

In fact, if you are very fast to adopt new, trendy moral beliefs, you may in fact be adopting them too quickly—they haven’t been properly vetted by human experience just yet. You can think of this as like a beta version: The newest update has some great new features, but it’s also buggy and unstable. It may need to be fixed before it is really ready for widespread release. If that’s the case, then people aren’t even wrong not to adopt them yet! It isn’t necessarily bad that you have adopted the new beliefs; we need beta testers. But you should be aware of your status as a beta tester and be prepared both to revise your own beliefs if needed, and also to cut other people slack if they disagree with you.

I understand that it can be immensely frustrating to be thoroughly convinced that something is true and important and yet see so many people disagreeing with it. (I am an atheist activist after all, so I absolutely know what that feels like.) I understand that it can be immensely painful to watch innocent people suffer because they have to live in a world where other people have harmful beliefs. But you aren’t changing anyone’s mind or saving anyone from harm by calling people names. Patience, tact, and persuasion will win the long game, and the long game is really all we have.

And if it makes you feel any better, the long game may not be as long as it seems. The arc of history may have tighter curvature than we imagine. We certainly managed a complete flip of the First World consensus on gay marriage in just a single generation. We may be able to achieve similarly fast social changes in other areas too. But we haven’t accomplished the progress we have so far by being uncharitable or aggressive toward those who disagree.

I am emphatically not saying you should stop arguing for your beliefs. We need you to argue for your beliefs. We need you to argue forcefully and passionately. But when doing so, try not to attack the people who don’t yet agree with you—for they are precisely the people we need to listen to you.

The era of the eurodollar is upon us

PNRJ current events, futurism, macroeconomics, public policy , , , , , , , , , , ,

Oct 16 JDN 2459869

I happen to be one of those weirdos who liked the game Cyberpunk 2077. It was hardly flawless, and had many unforced errors (like letting you choose your gender, but not making voice type independent from pronouns? That has to be, like, three lines of code to make your game significantly more inclusive). But overall I thought it did a good job of representing a compelling cyberpunk world that is dystopian but not totally hopeless, and had rich, compelling characters, along with reasonably good gameplay. The high level of character customization sets a new standard (aforementioned errors notwithstanding), and I for one appreciate how they pushed the envelope for sexuality in a AAA game.

It’s still not explicit—though I’m sure there are mods for that—but at least you can in fact get naked, and people talk about sex in a realistic way. It’s still weird to me that showing a bare breast or a penis is seen as ‘adult’ in the same way as showing someone’s head blown off (Remind me: Which of the three will nearly everyone have seen from the time they were a baby? Which will at least 50% of children see from birth, guaranteed, and virtually 100% of adults sooner or later? Which can you see on Venus de Milo and David?), but it’s at least some progress in our society toward a healthier relationship with sex.

A few things about the game’s world still struck me as odd, though. Chiefly it has to be the weird alternate history where apparently we have experimental AI and mind-uploading in the 2020s, but… those things are still experimental in the 2070s? So our technological progress was through the roof for the early 2000s, and then just completely plateaued? They should have had Johnny Silverhand’s story take place in something like 2050, not 2023. (You could leave essentially everything else unchanged! V could still have grown up hearing tales of Silverhand’s legendary exploits, because 2050 was 27 years ago in 2077; canonically, V is 28 years old when the game begins. Honestly it makes more sense in other ways: Rogue looks like she’s in her 60s, not her 80s.)

Another weird thing is the currency they use: They call it the “eurodollar”, and the symbol is, as you might expect, €$. When the game first came out, that seemed especially ridiculous, since euros were clearly worth more than dollars and basically always had been.

Well, they aren’t anymore. In fact, euros and dollars are now trading almost exactly at parity, and have been for weeks. CD Projekt Red was right: In the 2020s, the era of the eurodollar is upon us after all.

Of course, we’re unlike to actually merge the two currencies any time soon. (Can you imagine how Republicans would react if such a thing were proposed?) But the weird thing is that we could! It almost is like the two currencies are interchangeable—for the first time in history.

It isn’t so much that the euro is weak; it’s that the dollar is strong. When I first moved to the UK, the pound was trading at about $1.40. It is now trading at $1.10! If it continues dropping as it has, it could even reach parity as well! We might have, for the first time in history, the dollar, the pound, and the euro functioning as one currency. Get the Canadian dollar too (currently much too weak), and we’ll have the Atlantic Union dollar I use in some of my science fiction (I imagine the AU as an expansion of NATO into an economic union that gradually becomes its own government).Then again, the pound is especially weak right now because it plunged after the new prime minister announced an utterly idiotic economic plan. (Conservatives refusing to do basic math and promising that tax cuts would fix everything? Why, it felt like being home again! In all the worst ways.)

This is largely a bad thing. A strong dollar means that the US trade deficit will increase, and also that other countries will have trouble buying our exports. Conversely, with their stronger dollars, Americans will buy more imports from other countries. The combination of these two effects will make inflation worse in other countries (though it could reduce it in the US).

It’s not so bad for me personally, as my husband’s income is largely in dollars while our expenses are in pounds. (My income is in pounds and thus unaffected.) So a strong dollar and a weak pound means our real household income is about £4,000 than it would otherwise have been—which is not a small difference!

In general, the level of currency exchange rates isn’t very important. It’s changes in exchange rates that matter. The changes in relative prices will shift around a lot of economic activity, causing friction both in the US and in its (many) trading partners. Eventually all those changes should result in the exchange rates converging to a new, stable equilibrium; but that can take a long time, and exchange rates can fluctuate remarkably fast. In the meantime, such large shifts in exchange rates are going to cause even more chaos in a world already shaken by the COVID pandemic and the war in Ukraine.

On (gay) marriage

PNRJ core principles, current events, personal, politics, tribal paradigm , , , , ,

Oct 9 JDN 2459862

This post goes live on my first wedding anniversary. Thus, as you read this, I will have been married for one full year.

Honestly, being married hasn’t felt that different to me. This is likely because we’d been dating since 2012 and lived together for several years before actually getting married. It has made some official paperwork more convenient, and I’ve reached the point where I feel naked without my wedding band; but for the most part our lives have not really changed.

And perhaps this is as it should be. Perhaps the best way to really know that you should get married is to already feel as though you are married, and just finally get around to making it official. Perhaps people for whom getting married is a momentous change in their lives (as opposed to simply a formal announcement followed by a celebration) are people who really shouldn’t be getting married just yet.

A lot of things in my life—my health, my career—have not gone very well in this past year. But my marriage has been only a source of stability and happiness. I wouldn’t say we never have conflict, but quite honestly I was expecting a lot more challenges and conflicts from the way I’d heard other people talk about marriage in the past. All of my friends who have kids seem to be going through a lot of struggles as a result of that (which is one of several reasons we keep procrastinating on looking into adoption), but marriage itself does not appear to be any more difficult than friendship—in fact, maybe easier.

I have found myself oddly struck by how un-important it has been that my marriage is to a same-sex partner. I keep expecting people to care—to seem uncomfortable, to be resistant, or simply to be surprised—and it so rarely happens.

I think this is probably generational: We Millennials grew up at the precise point in history when the First World suddenly decided, all at once, that gay marriage was okay.

Seriously, look at this graph. I’ve made it combining this article using data from the General Social Survey, and this article from Pew:

Until around 1990—when I was 2 years old—support for same-sex marriage was stable and extremely low: About 10% of Americans supported it (presumably most of them LGBT!), and over 70% opposed it. Then, quite suddenly, attitudes began changing, and by 2019, over 60% of Americans supported it and only 31% opposed it.

That is, within a generation, we went from a country where almost no one supported gay marriage to a country where same-sex marriage is so popular that any major candidate who opposed it would almost certainly lose a general election. (They might be able to survive a Republican primary, as Republican support for same-sex marriage is only about 44%—about where it was among Democrats in the early 2000s.)

This is a staggering rate of social change. If development economics is the study of what happened in South Korea from 1950-2000, I think political science should be the study of what happened to attitudes on same-sex marriage in the US from 1990-2020.

And of course it isn’t just the US. Similar patterns can be found across Western Europe, with astonishingly rapid shifts from near-universal opposition to near-universal support within a generation.

I don’t think I have been able to fully emotionally internalize this shift. I grew up in a world where homophobia was mainstream, where only the most radical left-wing candidates were serious about supporting equal rights and representation for LGBT people. And suddenly I find myself in a world where we are actually accepted and respected as equals, and I keep waiting for the other shoe to drop. Aren’t you the same people who told me as a teenager that I was a sexual deviant who deserved to burn in Hell? But now you’re attending my wedding? And offering me joint life insurance policies? My own extended family members treat me differently now than they did when I was a teenager, and I don’t quite know how to trust that the new way is the true way and not some kind of facade that could rapidly disappear.

I think this sort of generational trauma may never fully heal, in which case it will be the generation after us—the Zoomers, I believe we’re calling them now—who will actually live in this new world we created, while the rest of us forever struggle to accept that things are not as we remember them. Once bitten, we remain forever twice shy, lest attitudes regress as suddenly as they advanced.

Then again, it seems that Zoomers may be turning against the institution of marriage in general. As the meme says: “Boomers: No gay marriage. Millennials: Yes gay marriage. Gen Z: Yes gay, no marriage.” Maybe that’s for the best; maybe the future of humanity is for personal relationships to be considered no business of the government at all. But for now at least, equal marriage is clearly much better than unequal marriage, and the First World seems to have figured that out blazing fast.

And of course the rest of the world still hasn’t caught up. While trends are generally in a positive direction, there are large swaths of the world where even very basic rights for LGBT people are opposed by most of the population. As usual, #ScandinaviaIsBetter, with over 90% support for LGBT rights; and, as usual, Sub-Saharan Africa is awful, with support in Kenya, Uganda and Nigeria not even hitting 20%.

Housing prices are out of control

PNRJ inequality, public policy , , , , ,

Oct 2 JDN 2459855

This is a topic I could have done for quite awhile now, and will surely address again in the future; it’s a slow-burn crisis that has covered most of the world for a generation.

In most of the world’s cities, housing prices are now the highest they have ever been, even adjusted for inflation. The pandemic made this worse, but it was already bad.

This is of course very important, because housing is usually the largest expenditure for most families.

Changes in housing prices are directly felt in people’s lifestyles, especially when they are renting. Homeownership rates vary a lot between countries, so the impact of this is quite different in different places.

There’s also an important redistributive effect: When housing prices go up, people who own homes get richer, while people who rent homes get poorer. Since people who own homes tend to be richer to begin with (and landlordsare typically richest of all), rising housing prices directly increase wealth inequality.

The median price of a house in the US, even adjusted for inflation, is nearly twice what it was in 1993.

This wasn’t a slow and steady climb; housing prices moved with inflation for most of the 1980s and 1990s, and then surged upward just before the 2008 crash. Then they plummeted for a few years, before reversing course and surging even higher than they were at their 2007 peak:

https://fred.stlouisfed.org/series/CSUSHPINSA

[housing_prices_US_2.png]

https://fred.stlouisfed.org/series/USSTHPI

This is not a uniquely American problem. The UK shows almost the same pattern:

https://fred.stlouisfed.org/series/HPIUKA

But it’s also not the same pattern everywhere. In China, housing prices have been rising steadily, and didn’t crash in 2008:

https://fred.stlouisfed.org/series/QCNN628BIS

In France, housing prices have been relatively stable, and are no higher now than they were in the 1990s:

https://fred.stlouisfed.org/series/CP0410FRM086NEST

Meanwhile, in Japan, housing prices surged in the 1970s, 1980s, and 1990s, ending up four times what they had been in the 1960s; then they suddenly leveled off and haven’t changed since:

https://fred.stlouisfed.org/series/JPNCPIHOUMINMEI

It’s also worse in some cities than others. In San Francisco, housing now costs three times what it did in the 1990s, even adjusting for inflation:

https://fred.stlouisfed.org/series/SFXRSA

Meanwhile, in Detroit, housing is only about 25% more expensive now than it was in the 1990s:

https://fred.stlouisfed.org/series/ATNHPIUS19804Q

This variation tells me that policy matters. This isn’t some inevitable result of population growth or technological change. Those could still be important factors, but they can’t explain the strong varation between countries or even between cities within the same country. (Yes, San Francisco has seen more population growth than Detroit—but not that much more.)

Part of the problem, I think, is that most policymakers don’t actually want housing to be more affordable. They might say they do, they might occasionally feel some sympathy for people who get evicted or live on the streets; but in general, they want housing prices to be higher, because that gives them more property tax revenue. The wealthy benefit from rising housing prices, while the poor are harmed. Since the interests of the wealthy are wildly overrepresented in policy, policy is made to increase housing prices, not decrease them. This is likely especially true in housing, because even the upper-middle class mostly benefits from rising housing prices. It’s only the poor and lower-middle class who are typically harmed.

This is why I don’t really want to get into suggesting policies that could fix this. We know what would fix this: Build more housing. Lots of it. Everywhere. Increase supply, and the price will go down. And we should keep doing it until housing is not just back where it was, but cheaper—much cheaper. Buying a house shouldn’t be a luxury afforded only to the upper-middle class; it should be something everyone does several times in their life and doesn’t have to worry too much about. Buying a house should be like buying a car; not cheap, exactly, but you don’t have to be rich to do it. Because everyone needs housing. So everyone should have housing.

But that isn’t going to happen, because the people who make the decisions about this don’t want it to happen.

So the real question becomes: What do we do about that?