Why is redistribution of wealth so difficult to achieve in the US?

Jan 28 JDN 2458147

Income and wealth in equality is much higher in the US than in other First World countries. Within the OECD, only Mexico, Turkey, and Chile have higher income inequality than we do. Over 60% of Americans agree that the distribution of wealth in the US is unfair. Furthermore, the majority of Americans support the use of taxes and transfers to directly redistribute wealth from the rich to the poor.

Why, then, is it so hard to actually get any meaningful wealth redistribution in the United States?

Part of it is surely partisan differences: While about 70% of Democrats favor redistributive taxes, about 70% of Republicans oppose them. So one would not expect a move toward redistribution when Republicans control all three branches of government, and indeed we have seen quite the opposite. (Then again, one would also not expect a government shutdown under one-party rule, and yet that is what we have.)

But even most Republicans say they would like to see a much more equal distribution of wealth than the one we actually have. In fact, when I as an inequality economist look at the distribution of wealth people say they want, it looks a little too equal! Even Denmark and Sweden aren’t that egalitarian! I know more or less how to get from here to Denmark; but from here to “Equalden” looks like an awful long way. So if this is really the distribution of wealth people want, we need to be doing a huge amount of wealth redistribution—but we’re hardly doing any at all.

Indeed, we didn’t actually see all that much redistribution of wealth when Democrats more or less controlled all three branches in the period from 2008-2010. We may have seen a little bit shortly thereafter, and tax policy typically does come with a delay of a year or two. But as you can see in this graph, the Great Recession did more to reduce the top 1% income share than any tax policy changes:


The biggest changes made to our tax code under Obama were actually the handling of capital gains; the increase of the top rate on capital gains from 15% to 20%, plus the 3.8% capital surtax from the Affordable Care Act raised the tax bill for the top 0.1% by tens of billions of dollars. Surprisingly, Trump’s tax cuts don’t actually remove these provisions, though they did dramatically cut the corporate tax rate, which will probably have a similar effect on the income distribution.

To be honest, I’m not as disappointed with Trump’s tax cuts as I thought I would be. Some genuinely good ideas (like the reduction of the mortgage interest deduction, tighter restrictions on carried interest, and increase of the personal standard deduction) and some reasonable but debatable ideas (like cuts to the corporate tax rate, switching to a territorial corporate tax system, limits to deductions on corporate debt payments, removal of the deduction of state taxes, and extensions of 529 savings plans to private primary and secondary schools) were mixed in with the absolutely ludicrous and terrible ideas (like eliminating the Obamacare mandate, doubling the estate tax threshold, cutting the alcohol tax, and allowing offshore drilling in Alaska [One of these things is not like the other ones….]). Some of the terrible ideas, like ending the deduction of student loan interest and tuition waivers, were actually removed in the final version of the bill. Of course, you won’t be surprised when I tell you that the overall US tax system became a lot less progressive as a result of this bill. And even if cutting the corporate tax while raising the capital gains tax is probably a good idea (as I and many economists believe), cutting the corporate tax without raising the capital gains tax probably isn’t.

(An aside: For how much they claim to be “tough on crime”, it’s always kind of baffling to see how often Republicans like to cut alcohol taxes and pollution regulations, which are pretty much the only things that have ever been empirically shown to actually reduce crime. There is some evidence that maybe more policing also helps, but if so, it does so in a far less cost-effective way—indeed, the direct cost of alcohol taxes and pollution taxes is negative. Even if they didn’t work at all, they’d still be worth it just because they raise revenue. I begin to suspect that Republicans don’t actually want to reduce crime, because they know they can use the fear of crime to win votes; they simply want to appear tough on crime, and so they press as hard as they can for more policing and incarceration in the country that already has the highest incarceration rate in the world. This may be a more general phenomenon: While Democrats want to actually solve problems, Republicans want to appear to solve problems while actually exacerbating them, thus insuring their own job security. Compare how Bush kept talking about Osama bin laden while invading Iraq, and Obama actually killed Osama bin Laden. Is this too cynical? Can anything be too cynical in the era of Trump? There were 50,000 Russian bots on Twitter trying to tilt our election! Mueller’s FBI investigation is already implicating several of Trump’s top officials! Everything that seemed like paranoia or cynicism just a few years ago is turning out to be entirely true.)

This is what seems to happen: Year after year, we raise some taxes, then we cut some taxes. Then when raise some taxes, then we cut some taxes. The tax system gets a little more progressive for a few years and inequality begins to fall, and then those changes are removed and inequality begins to rise again. Back and forth and round and round we go.

Is there some way to lock in these tax changes for a longer period of time? The only way I can see would be a change in voter behavior: Keep voting in Democrats to all branches of government consistently for 20 years, and then maybe we would see a serious reduction in income and wealth inequality. Or at least stop voting in Republicans; aside from the Democrats, there are some third parties that would also support redistribution, like the Green Party. And yes, it really is about voting behavior: As prevalent as gerrymandering has become, as terrible as the Electoral College is, as widespread as voter suppression has gotten, Trump only won because 63 million Americans voted for him. Even after everything he’s done, Trumps’ approval rating is still about 39%. As long as there are enough people in this country whose partisan loyalty so strongly outweighs any rational assessment of policy, we are going to continue to see such travesties continue.

It would certainly help if our voting system were fairer, so that third parties had a better chance at taking seats. But it’s also difficult to see how that could happen any time soon. For now, the best I can come up with is trying to show people two things:

First, most Americans favor redistribution of wealth. You’re not alone in wanting that. It’s not some fringe opinion.

Second, there is a real difference between Democrats and Republicans on this issue. The canard “The two parties are the same” is the most untrue it has been in at least twenty years.

I would even understand if there are other issues you consider more important than wealth redistribution. Ecological sustainability is the most defensible—you can’t eat GNP—though that would push you even harder toward the left. Among things that might push you right, I can understand being concerned about higher taxes hurting economic growth, and while I think the view that abortion is murder is ludicrous, given that as your belief I can understand why you would want to prioritize fighting abortion. (If I thought we were murdering millions of babies every year, I’d be pretty mad too! Of course, you should be glad, then, that the US abortion rate has been falling. Right? You know about that, right?)

What I don’t get, however, is people who thought that voting for Donald Trump would help working people. I don’t understand how you can see someone who epitomizes everything that is wrong with the billionaire rentier class and think, “Yeah, he seems like he’s definitely a populist. That guy who was born insanely rich and made even more mind-boggling amounts of money by lying and screwing people over is definitely going to look out for folks like me.”

If I understood that, maybe I would know where to go from here. But people’s political beliefs can be astonishingly intransigent to evidence. Politics is the mind-killer.

Did the World Bank modify its ratings to manipulate the outcome of an election in Chile?

Jan 21 JDN 2458140

(By the way, my birthday is January 19. I can’t believe I’m turning 30.)

This is a fairly obscure news item, so you may have missed it. It should be bigger news than it is.
I can’t fault the New York Times for having its front page focus mainly on the false missile alert that was issued to some people in Hawaii; a false alarm of nuclear attack definitely is the most important thing that could be going on in the world, short of course of actual nuclear war.

CNN, on the other hand, is focused entirely on Trump. When I first wrote this post, they were also focused on Trump, mainly interested in asking whether Trump’s comments about “immigrants from shithole countries” was racist. My answer: Yes, but not because he said the countries were “shitholes”. That was crude, yes, but not altogether inaccurate. Countries like Syria, Afghanistan, and Sudan are, by any objective measure, terrible places. His comments were racist because they attributed that awfulness to the people leaving these countries. But in fact we have a word for immigrants who flee terrible places seeking help and shelter elsewhere: Refugees. We call those people refugees. There are over 10 million refugees in the world today, most of them from Syria.

So anyway, here’s the news item you should have heard about but probably didn’t: The Chief Economist of the World Bank (Paul Romer, who coincidentally I mentioned in my post about DSGE models) has opened an investigation into the possibility that the World Bank’s ratings of economic freedom were intentionally manipulated in order to tilt a Presidential election in Chile.

The worst part is, it may have worked: Chile’s “Doing Business” rating consistently fell under President Michelle Bachelet and rose under President Sebastian Piñera, and Piñera won the most recent election. Was that the reason he won? Who knows? I’m still not entirely clear on how we ended up with President Trump. But it very likely contributed.

The World Bank is supposed to be an impartial institution representing the interests of global economic development. I’m not naive; I recognize that no human institution is perfect, and there will always be competing political and economic interests within any complex institution. Development economists are subject to cognitive biases just like anyone else. If this was the work of a handful of economic analysts (or if Romer turns out to be wrong and the changes in statistical methodology were totally reasonable), so be it; let’s make sure that the bias is corrected and the analysts involved are punished.

But I fear that the rot may run deeper than this. The World Bank is effectively a form of unelected international government. It has been accused of inherent pro-capitalist (or even racist) bias due to the fact that Western governments are overrepresented in its governance, but I actually consider that accusation unfair: There are very good reasons to make sure that your international institutions are managed by liberal democracies, and turns out that most of the world’s liberal democracies are Western. The fact that the US, France, Germany, and the UK make most of the decisions is entirely sensible: Those are in fact the countries we should want making global decisions.

China is not underrepresented, because China is not a democracy and doesn’t deserve to be represented. They are already more represented in the World Bank than they should be, because representing the PRC is not actually representing the interests of the people of China. Russia and Saudi Arabia are undeniably overrepresented. India is underrepresented; they should be complaining. Some African democracies, such as Namibia and Botswana, would also have a legitimate claim to underrepresentation. But I don’t lose any sleep over the fact that Zimbabwe and Iran aren’t getting votes in the World Bank. If and when those countries actually start representing their people, then we can talk about giving them representation in world government. I don’t see how refusing to give international authority to dictators and theocrats constitutes racism or pro-capitalist bias.

That said, there are other reasons to think that the World Bank might actually have some sort of pro-capitalist bias. The World Bank was instrumental in forming the Washington Consensus, which opened free trade and increase economic growth worldwide, but also exposed many poor countries to risk from deregulated financial markets and undermined social safety nets through fiscal austerity programs. They weren’t wrong to want more free trade, and many of their reforms did make sense; but they were at best wildly overconfident in their policy prescriptions, and at worst willing to sacrifice people in poor countries at the altar of bank profits. World poverty has in fact fallen by about half since 1990, and the World Bank has a lot to do with that. But things may have gone faster and smoother if they hadn’t insisted on removing so many financial regulations so quickly without clear forecasts of what would happen. I don’t share Jason Hickel’s pessimistic view that the World Bank’s failures were intentional acts toward an ulterior agenda, but I can see how it begins to look that way when they keep failing the same ways over and over again. (I instead invoke Hanlon’s razor: “Never attribute to malice that which is adequately explained by stupidity.”)

There are also reports of people facing retaliation for criticizing World Bank projects, including those within the World Bank who raise ethical concerns. If this was politically-motivated data manipulation, there may have been people who saw it happening, but were afraid to say anything for fear of being fired or worse.

And Chile in particular has reason to be suspicious. The World Bank suddenly started giving loans to Chile when Augusto Pinochet took power (the CIA denies supporting the coup, by the way—though, given the source, I can understand why one would take that with a grain of salt), and did so under the explicit reasoning that an authoritarian capitalist regime was somehow “more trustworthy” than a democratic socialist regime. Even in the narrow sense of financial creditworthiness that seems difficult to defend; the World Bank knew almost nothing about what kind of government Pinochet was going to create, and in fact despite the so-called “Miracle of Chile”, rapid economic growth in Chile didn’t really happen until the 1990s, after Chile became a democratic capitalist regime.

What I’m really getting at here is that the World Bank has a lot to answer for. I am prepared to believe that most of these actions were honest mistakes or ideological blinders, rather than corruption or cruelty; but even so, when millions of lives are at stake, even honest mistakes aren’t so forgivable. They should be looking for ways to improve their internal governance to make sure that mistakes are caught and corrected quickly. They should be constantly vigilant for biases—either intentional or otherwise—that might seep into their research. Error should be met with immediate correction and public apology; malfeasance should be met with severe punishment.

Perhaps Romer’s investigation actually signals a shift toward such a policy. If so, this is a very good thing. If only we had done this, say, thirty years ago.

Daylight Savings Time is pointless and harmful

Nov 12, JDN 2458069

As I write this, Daylight Savings Time has just ended.

Sleep deprivation costs the developed world about 2% of GDP—on the order of $1 trillion per year. The US alone loses enough productivity from sleep deprivation that recovering this loss would give us enough additional income to end world hunger.

So, naturally, we have a ritual every year where we systematically impose an hour of sleep deprivation on the entire population for six months. This makes sense somehow.
The start of Daylight Savings Time each year is associated with a spike in workplace injuries, heart attacks, and suicide.

Nor does the “extra” hour of sleep we get in the fall compensate; in fact, it comes with its own downsides. Pedestrian fatalities spike immediately after the end of Daylight Savings Time; the rate of assault also rises at the end of DST, though it does also seem to fall when DST starts.

Daylight Savings Time was created to save energy. It does do that… technically. The total energy savings for the United States due to DST amounts to about 0.3% of our total electricity consumption. In some cases it can even increase energy use, though it does seem to smooth out electricity consumption over the day in a way that is useful for solar and wind power.

But this is a trivially small amount of energy savings, and there are far better ways to achieve it.

Simply due to new technologies and better policies, manufacturing in the US has reduced its energy costs per dollar of output by over 4% in the last few years. Simply getting all US states to use energy as efficiently as it is used in New York or California (not much climate similarity between those two states, but hmm… something about politics comes to mind…) would cut our energy consumption by about 30%.

The total amount of energy saved by DST is comparable to the amount of electricity now produced by small-scale residential photovoltaics—so simply doubling residential solar power production (which we’ve been doing every few years lately) would yield the same benefits as DST without the downsides. If we really got serious about solar power and adopted the policies necessary to get a per-capita solar power production comparable to Germany (not a very sunny place, mind you—Sacramento gets over twice the hours of sun per year that Berlin does), we would increase our solar power production by a factor of 10—five times the benefits of DST, none of the downsides.

Alternatively we could follow France’s model and get serious about nuclear fission. France produces over three hundred times as much energy from nuclear power as the US saves via Daylight Savings Time. Not coincidentally, France produces half as much CO2 per dollar of GDP as the United States.

Why would we persist in such a ridiculous policy, with such terrible downsides and almost no upside? To a first approximation, all human behavior is social norms.

This is one of the worst wildfire seasons in American history. But it won’t be for long.

Oct 22, JDN 2458049

At least 38 people have now been killed by the wildfires that are still ongoing in California; in addition, 5700 buildings have been destroyed and 190,000 acres of land burned. The State of California keeps an updated map of all the fires that are ongoing and how well-controlled they are; it’s not a pretty sight.

While the particular details are extreme, this is not an isolated incident. This year alone, wildfires have destroyed over 8 million acres of land in the US. In 2015, that figure was 10 million acres.

Property damage for this year’s wildfires in California is estimated at over $65 billion. That’s more than what Trump recently added to the military budget, and getting close to our total spending on food stamps.

There is a very clear upward trend in the scale and intensity of wildfires just over the last 50 years, and the obvious explanation is climate change. As climate change gets worse, these numbers are projected to increase between 30% and 50% by the 2040s. We still haven’t broken the record of fire damage in 1910, but as the upward trend continues we might soon enough.

It’s important to keep the death tolls in perspective; much as with hurricanes, our evacuation protocols and first-response agencies do their jobs very well, and as a result we’ve been averaging only about 10 wildfire deaths per year over the whole United States for the last century. In a country of over 300 million people, that’s really an impressively small number. That number has also been trending upward, however, so we shouldn’t get complacent.

Climate change isn’t the only reason these fires are especially damaging. It also matters where you build houses. We have been expanding our urban sprawl into fire-prone zones, and that is putting a lot of people in danger. Since 1990, over 60% of new homes were built in “wildland-urban interface areas” that are at higher risk.

Why are we doing this? Because housing prices in urban centers are too expensive for people to live there, but that is where most of the jobs are. So people have little choice but to live in exurbs and suburbs closer to the areas where fires are worst. That’s right: The fires are destroying homes and killing people because the rent is too damn high.

We need to find a solution to this problem of soaring housing prices. And since housing is such a huge proportion of our total expenditure—we spend more on housing than we do on all government spending combined—this would have an enormous impact on our entire economy. If you compare the income of a typical American today to most of the world’s population, or even to a typical American a century ago, we should feel extremely rich, but we don’t—largely because we spend so much of it just on keeping a roof over our heads.

Real estate is also a major driver of economic inequality. Wealth inequality is highest in urban centers where homeownership is rare. The large wealth gaps between White and non-White Americans can be in large part attributed to policies that made homeownership much more difficult for non-White people. Housing value inequality and overall wealth inequality are very strongly correlated. The high inequality in housing prices is making it far more difficult for people to move from poor regions to rich regions, holding back one of the best means we had for achieving more equal incomes.

Moreover, the rise in capital income share since the 1970s is driven almost entirely by real estate, rather than actual physical capital. The top 10% richest housing communities constitute over 52% of the total housing wealth in the US.

There is a lot of debate about what exactly causes these rising housing prices. No doubt, there are many factors contributing, from migration patterns to zoning regulations to income inequality in general. In a later post, I’ll get into why I think many of the people who think they are fighting the problem are actually making it worse, and suggest some ideas for what they should be doing instead.

A tale of two storms

Sep 24, JDN 2458021

There were two severe storm events this past week; one you probably heard a great deal about, the other, probably not. The first was Hurricane Irma, which hit the United States and did most of its damage in Florida; the second was Typhoon Doksuri, which hit Southeast Asia and did most of its damage in Vietnam.

You might expect that this post is going to give you more bad news. Well, I have a surprise for you: The news is actually mostly good.

The death tolls from both storms were astonishingly small. The hurricane is estimated to have killed at least 84 people, while the typhoon has killed at least 26. This result is nothing less than heroism. The valiant efforts of thousands of meteorologists and emergency responders around the world has saved thousands of lives, and did so both in the wealthy United States and in impoverished Vietnam.

When I started this post, I had expected to see that the emergency response in Vietnam would be much worse, and fatalities would be far higher; I am delighted to report that nothing of the sort was the case, and Vietnam, despite their per-capita GDP PPP of under $6,000, has made emergency response a sufficiently high priority that they saved their people just about as well as Florida did.

To get a sense of what might have happened without them, consider that 1.5 million homes in Florida were leveled by the hurricane, and over 100,000 homes were damaged by the typhoon. Vietnam is a country of 94 million people. Florida has a population of 20 million. (The reason Florida determines so many elections is that it is by far the most populous swing state.) Without weather forecasting and emergency response, these death figures would have been in the tens of thousands, not the dozens.

Indeed, if you know statistics and demographics well, these figures become even more astonishing: These death rates were almost indistinguishable from statistical noise.

Vietnam’s baseline death rate is about 5.9 per 1,000, meaning that they experience about 560,000 deaths in any given year. This means that over 1500 people die in Vietnam on a normal day.

Florida’s baseline death rate is about 6.6 per 1,000, actually a bit higher than Vietnam’s, because Florida’s population skews so much toward the elderly. Therefore Florida experiences about 130,000 deaths per year, or 360 deaths on a normal day.

In both Vietnam and Florida, this makes the daily death probability for any given person about 0.0017%. A random process with a fixed probability of 0.0017% over a population of n people will result in an average of 0.0017n events, but with some variation around that number. The standard deviation is actually sqrt(p(1-p)n) = 0.004 sqrt(n). When n = 20,000,000 (Florida), this results in a standard deviation of 18. When n = 94,000,000 (Vietnam), this results in a standard deviation of 40.

This means that the 26 additional deaths in Vietnam were within one standard deviation of average! They basically are indistinguishable from statistical noise. There have been over a hundred days in Vietnam where an extra 26 people happened to die, just in the past year. Weather forecasting took what could have been a historic disaster and turned it into just another bad day.

The 84 additional deaths in Florida are over four standard deviations away from average, so they are definitely distinguishable from statistical noise—but this still means that Florida’s total death rate for the year will only tick up by 0.6%.

It is common in such tragedies to point out in grave tones that “one death is too many”, but I maintain that this is not actually moral wisdom but empty platitude. No conceivable policy is ever going to reduce death rates to zero, and the people who died of heart attacks or brain aneurysms are every bit as dead as the people who died from hurricanes or terrorist attacks. Instead of focusing on the handful of people who died because they didn’t heed warnings or simply got extraordinarily unlucky, I think we should be focusing on the thousands of people who survived because our weather forecasters and emergency responders did their jobs so exceptionally well. Of course if we can reduce the numbers even further, we should; but from where I’m sitting, our emergency response system has a lot to be proud of.

Of course, the economic damage of the storms was substantially greater. The losses in destroyed housing and infrastructure in Florida are projected at over $80 billion. Vietnam is much poorer, so there simply isn’t as much infrastructure to destroy; total damage is unlikely to exceed $10 billion. Florida’s GDP is $926 billion, so they are losing 8.6%; while Vietnam’s GDP is $220 billion, so they are still losing 4.5%. And of course the damage isn’t evenly spread across everyone; those hardest hit will lose perhaps their entire net wealth, while others will feel absolutely nothing.

But economic damage is fleeting. Indeed, if we spend the government money we should be, and take the opportunity to rebuild this infrastructure better than it was before, the long-run economic impact could be positive. Even 8.6% of GDP is less than five years of normal economic growth—and there were years in the 1950s where we did it in a single year. The 4.6% that Vietnam lost, they should make back within a year of their current economic growth.

Thank goodness.

Think of this as a moral recession

August 27, JDN 2457993

The Great Depression was, without doubt, the worst macroeconomic event of the last 200 years. Over 30 million people became unemployed. Unemployment exceeded 20%. Standard of living fell by as much as a third in the United States. Political unrest spread across the world, and the collapsing government of Germany ultimately became the Third Reich and triggered the Second World War If we ignore the world war, however, the effect on mortality rates was surprisingly small. (“Other than that, Mrs. Lincoln, how was the play?”)

And yet, how long do you suppose it took for economic growth to repair the damage? 80 years? 50 years? 30 years? 20 years? Try ten to fifteen. By 1940, the US, US, Germany, and Japan all had a per-capita GDP at least as high as in 1930. By 1945, every country in Europe had a per-capita GDP at least as high as they did before the Great Depression.

The moral of this story is this: Recessions are bad, and can have far-reaching consequences; but ultimately what really matters in the long run is growth.

Assuming the same growth otherwise, a country that had a recession as large as the Great Depression would be about 70% as rich as one that didn’t.

But over 100 years, a country that experienced 3% growth instead of 2% growth would be over two and a half times richer.

Therefore, in terms of standard of living only, if you were given the choice between having a Great Depression but otherwise growing at 3%, and having no recessions but growing at 2%, your grandchildren will be better off if you chose the former. (Of course, given the possibility of political unrest or even war, the depression could very well end up worse.)

With that in mind, I want you to think of the last few years—and especially the last few months—as a moral recession. Donald Trump being President of the United States is clearly a step backward for human civilization, and it seems to have breathed new life into some of the worst ideologies our society has ever harbored, from extreme misogyny, homophobia, right-wing nationalism, and White supremacism to outright Neo-Nazism. When one of the central debates in our public discourse is what level of violence is justifiable against Nazis under what circumstances, something has gone terribly, terribly wrong.

But much as recessions are overwhelmed in the long run by economic growth, there is reason to be confident that this moral backslide is temporary and will be similarly overwhelmed by humanity’s long-run moral progress.

What moral progress, you ask? Let’s remind ourselves.

Just 100 years ago, women could not vote in the United States.

160 years ago, slavery was legal in 15 US states.

Just 3 years ago, same-sex marriage was illegal in 14 US states. Yes, you read that number correctly. I said three. There are gay couples graduating high school and getting married now who as freshmen didn’t think they would be allowed to get married.

That’s just the United States. What about the rest of the world?

100 years ago, almost all of the world’s countries were dictatorships. Today, half of the world’s countries are democracies. Indeed, thanks to India, the majority of the world’s population now lives under democracy.

35 years ago, the Soviet Union still ruled most of Eastern Europe and Northern Asia with an iron fist (or should I say “curtain”?).

30 years ago, the number of human beings in extreme poverty—note I said number, not just rate; the world population was two-thirds what it is today—was twice as large as it is today.

Over the last 65 years, the global death rate due to war has fallen from 250 per million to just 10 per million.

The global literacy rate has risen from 40% to 80% in just 50 years.

World life expectancy has increased by 6 years in just the last 20 years.

We are living in a golden age. Do not forget that.

Indeed, if there is anything that could destroy all these astonishing achievements, I think it would be our failure to appreciate them.

If you listen to what these Neo-Nazi White supremacists say about their grievances, they sound like the spoiled children of millionaires (I mean, they elected one President, after all). They are outraged because they only get 90% of what they want instead of 100%—or even outraged not because they didn’t get what they wanted but because someone else they don’t know also did.

If you listen to the far left, their complaints don’t make much more sense. If you didn’t actually know any statistics, you’d think that life is just as bad for Black people in America today as it was under Jim Crow or even slavery. Well, it’s not even close. I’m not saying racism is gone; it’s definitely still here. But the civil rights movement has made absolutely enormous strides, from banning school segregation and housing redlining to reforming prison sentences and instituting affirmative action programs. Simply the fact that “racist” is now widely considered a terrible thing to be is a major accomplishment in itself. A typical Black person today, despite having only about 60% of the income of a typical White person, is still richer than a typical White person was just 50 years ago. While the 71% high school completion rate Black people currently have may not sound great, it’s much higher than the 50% rate that the whole US population had as recently as 1950.

Yes, there are some things that aren’t going very well right now. The two that I think are most important are climate change and income inequality. As both the global mean temperature anomaly and the world top 1% income share continue to rise, millions of people will suffer and die needlessly from diseases of poverty and natural disasters.

And of course if Neo-Nazis manage to take hold of the US government and try to repeat the Third Reich, that could be literally the worst thing that ever happened. If it triggered a nuclear war, it unquestionably would be literally the worst thing that ever happened. Both these events are unlikely—but not nearly as unlikely as they should be. (Five Thirty Eight interviewed several nuclear experts who estimated a probability of imminent nuclear war at a horrifying five percent.) So I certainly don’t want to make anyone complacent about these very grave problems.

But I worry also that we go too far the other direction, and fail to celebrate the truly amazing progress humanity has made thus far. We hear so often that we are treading water, getting nowhere, or even falling backward, that we begin to feel as though the fight for moral progress is utterly hopeless. If all these centuries of fighting for justice really had gotten us nowhere, the only sensible thing to do at this point would be to give up. But on the contrary, we have made enormous progress in an incredibly short period of time. We are on the verge of finally winning this fight. The last thing we want to do now is give up.

Building a wider tent is not compromising on your principles

August 20, JDN 2457986

After humiliating defeats in the last election, the Democratic Party is now debating how to recover and win future elections. One proposal that has been particularly hotly contested is over whether to include candidates who agree with the Democratic Party on most things, but still oppose abortion.

This would almost certainly improve the chances of winning seats in Congress, particularly in the South. But many have argued that this is a bridge too far, it amounts to compromising on fundamental principles, and the sort of DINO (Democrat-In-Name-Only) we’d end up with are no better than no Democrats at all.

I consider this view deeply misguided; indeed, I think it’s a good portion of the reason why we got so close to winning the culture wars and yet suddenly there are literal Nazis marching in the streets. Insisting upon ideological purity on every issue is a fantastic way to amplify the backlash against you and ensure that you will always lose.

To show why, I offer you a simple formal model. Let’s make it as abstract as possible, and say there are five different issues, A, B, C, D, and E, and on each of them you can either choose Yes or No.

Furthermore, let’s suppose that on every single issue, the opinion of a 60% majority is “Yes”. If you are a political party that wants to support “Yes” on every issue, which of these options should you choose:
Option 1: Only run candidates who support “Yes” on every single issue

Option 2: Only run candidates who support “Yes” on at least 4 out of 5 issues

Option 3: Only run candidates who support “Yes” on at least 3 out of 5 issues

For now, let’s assume that people’s beliefs within a district are very strongly correlated (people believe what their friends, family, colleagues, and neighbors believe). Then assume that the beliefs of a given district are independently and identically distributed (each person essentially flips a weighted coin to decide their belief on each issue). These are of course wildly oversimplified, but they keep the problem simple, and I can relax them a little in a moment.

Suppose there are 100 districts up for grabs (like, say, the US Senate). Then there will be:

(0.6)^5*100 = 8 districts that support “Yes” on every single issue.

5*(0.6)^4*(0.4)*100 = 26 districts that support “Yes” on 4 out of 5 issues.

10*(0.6)^3*(0.4)^2*100 = 34 districts that support “Yes” on 3 out of 5 issues.

10*(0.6)^2*(0.4)^3*100 = 23 districts that support “Yes” on 2 out of 5 issues.

5*(0.6)^1*(0.4)^4*100 = 8 districts that support “Yes” on 1 out of 5 issues.

(0.4)^5*100 = 1 district that doesn’t support “Yes” on any issues.

The ideological purists want us to choose option 1, so let’s start with that. If you only run candidates who support “Yes” on every single issue, you will win only eight districts. Your party will lose 92 out of 100 seats. You will become a minor, irrelevant party of purists with no actual power—despite the fact that the majority of the population agrees with you on any given issue.

If you choose option 2, and run candidates who differ at most by one issue, you will still lose, but not by nearly as much. You’ll claim a total of 34 seats. That might at least be enough to win some votes or drive some committees.

If you want a majority, you need to go with option 3, and run candidates who agree on at least 3 out of 5 issues. Only then will you win 68 seats and be able to drive legislative outcomes.

But wait! you may be thinking. You only won in that case by including people who don’t agree with your core platform; so what use is it to win the seats? You could win every seat by including every possible candidate, and then accomplish absolutely nothing!

Yet notice that even under option 3, you’re still only including people who agree with the majority of your platform. You aren’t including absolutely everyone. Indeed, once you parse out all the combinations, it becomes clear that by running these candidates, you will win the vote on almost every issue.

8 of your candidates are A1, B1, C1, D1, E1, perfect partisans; they’ll support you every time.

6 of your candidates are A1, B1, C1, D1, E0, disagreeing only on issue E.

5 of your candidates are A1, B1, C1, D0, E1, disagreeing only on issue D.

5 of your candidates are A1, B1, C0, D1, E1, disagreeing only on issue C.

5 of your candidates are A1, B0, C1, D1, E1, disagreeing only on issue B.

5 of your candidates are A0, B1, C1, D1, E1, disagreeing only on issue A.

4 of your candidates are A1, B1, C1, D0, E0, disagreeing on issues D and E.

4 of your candidates are A0, B1, C1, D0, E0, disagreeing on issues E and A.

4 of your candidates are A0, B0, C1, D1, E1, disagreeing on issues B and A.

4 of your candidates are A1, B0, C1, D1, E0, disagreeing on issues E and B.

3 of your candidates are A1, B1, C0, D0, E1, disagreeing on issues D and C.

3 of your candidates are A1, B0, C0, D1, E1, disagreeing on issues C and B.

3 of your candidates are A0, B1, C1, D0, E1, disagreeing on issues D and A.

3 of your candidates are A0, B1, C0, D1, E1, disagreeing on issues C and A.

3 of your candidates are A1, B0, C1, D0, E1, disagreeing on issues D and B.

3 of your candidates are A1, B1, C0, D1, E0, disagreeing on issues C and E.

I took the liberty of rounding up or down as needed to make the numbers add up to 68. I biased toward rounding up on issue E, to concentrate all the dissent on one particular issue. This is sort of a worst-case scenario.

Since 60% of the population also agrees with you, the opposing parties couldn’t have only chosen pure partisans; they had to cast some kind of big tent as well. So I’m going to assume that the opposing candidates look like this:

8 of their candidates are A1, B0, C0, D0, E0, agreeing with you only on issue A.

8 of their candidates are A0, B1, C0, D0, E0, agreeing with you only on issue B.

8 of their candidates are A0, B0, C1, D0, E0, agreeing with you only on issue C.

8 of their candidates are A0, B0, C0, D1, E0, agreeing with you only on issue D.

This is actually very conservative; despite the fact that there should be only 9 districts that disagree with you on 4 or more issues, they somehow managed to win 32 districts with such candidates. Let’s say it was gerrymandering or something.

Now, let’s take a look at the voting results, shall we?

A vote for “Yes” on issue A will have 8 + 6 + 3*5 + 2*4 + 4*3 + 8 = 57 votes.

A vote for “Yes” on issue B will have 8 + 6 + 3*5 + 2*4 + 4*3 + 8 = 57 votes.

A vote for “Yes” on issue C will have 8 + 6 + 3*5 + 4*4 + 2*3 + 8 = 59 votes.

A vote for “Yes” on issue D will have 8 + 6 + 3*5 + 3*4 + 3*3 + 8 = 58 votes.

A vote for “Yes” on issue E will have 8 + 0 + 4*5 + 1*4 + 5*3 = 47

Final results? You win on issues A, B, C, and D, and lose very narrowly on issue E. Even if the other party somehow managed to maintain total ideological compliance and you couldn’t get a single vote from them, you’d still win on issue C and tie on issue D. If on the other hand your party can convince just 4 of your own anti-E candidates to vote in favor of E for the good of the party, you can win on E as well.

Of course, in all of the above I assumed that districts are homogeneous and independently and identically distributed. Neither of those things are true.
The homogeneity assumption actually turns out to be pretty innocuous; if each district elects a candidate by plurality vote from two major parties, the Median Voter Theorem applies and the result is as if there were a single representative median voter making the decision.

The independence assumption is not innocuous, however. In reality, there will be strong correlations between the views of different people in different districts, and strong correlations across issues among individual voters. It is in fact quite likely that people who believe A1, B1, C1, D1 are more likely to believe E1 than people who believe A0, B0, C0, D0.

Given that, all the numbers above would shift, in the following way: There would be a larger proportion of pure partisans, and a smaller proportion of moderates with totally mixed views.

Does this undermine the argument? Not really. You need an awful lot of pure partisanship to make that a viable electoral strategy. I won’t go through all the cases again because it’s a mess, but let’s just look at those voting numbers again.

Suppose that instead of it being an even 60% regardless of your other beliefs, your probability of a “Yes” belief on a given issue is 80% if the majority of your previous beliefs are “Yes”, and a probability of 40% if the majority of your previous beliefs are “No”.

Then out of 100 districts:

(0.6)^3(0.8)^2*100 = 14 will be A1, B1, C1, D1, E1 partisans.

Fourteen. Better than eight, I suppose; but not much.

Okay, let’s try even stronger partisan loyalty. Suppose that your belief on A is randomly chosen with 60% probability, but every belief thereafter is 90% “Yes” if you are A1 and 30% “Yes” if you are A0.

Then out of 100 districts:

(0.6)(0.9)^4*100 = 39 will be A1, B1, C1, D1, E1 partisans.

You will still not be able to win a majority of seats using only hardcore partisans.

Of course, you could assume even higher partisanship rates, but then it really wasn’t fair to assume that there are only five issues to choose. Even with 95% partisanship on each issue, if there are 20 issues:
(0.95)^20*100 = 36

The moral of the story is that if there is any heterogeneity across districts at all, any meaningful deviation from the party lines, you will only be able to reliably win a majority of the legislature if you cast a big tent. Even if the vast majority of people agree with you on any given issue, odds are that the vast majority of people don’t agree with you on everything.

Moreover, you are not sacrificing your principles by accepting these candidates, as you are still only accepting people who mostly agree with you into your party. Furthermore, you will still win votes on most issues—even those you felt like you were compromising on.

I therefore hope the Democratic Party makes the right choice and allows anti-abortion candidates into the party. It’s our best chance of actually winning a majority and driving the legislative agenda, including the legislative agenda on abortion.