current events

AI and the “generalization faculty”

PNRJ cognitive science, computer science, critique of neoclassical economics, current events, ethics, futurism, inequality, public policy , , , , , , , , , ,

Oct 1 JDN 2460219

The phrase “artificial intelligence” (AI) has now become so diluted by overuse that we needed to invent a new term for its original meaning. That term is now “artificial general intelligence” (AGI). In the 1950s, AI meant the hypothetical possibility of creating artificial minds—machines that could genuinely think and even feel like people. Now it means… pathing algorithms in video games and chatbots? The goalposts seem to have moved a bit.

It seems that AGI has always been 20 years away. It was 20 years away 50 years ago, and it will probably be 20 years away 50 years from now. Someday it will really be 20 years away, and then, 20 years after that, it will actually happen—but I doubt I’ll live to see it. (XKCD also offers some insight here: “It has not been conclusively proven impossible.”)

We make many genuine advances in computer technology and software, which have profound effects—both good and bad—on our lives, but the dream of making a person out of silicon always seems to drift ever further into the distance, like a mirage on the desert sand.

Why is this? Why do so many people—even, perhaps especially,experts in the field—keep thinking that we are on the verge of this seminal, earth-shattering breakthrough, and ending up wrong—over, and over, and over again? How do such obviously smart people keep making the same mistake?

I think it may be because, all along, we have been laboring under the tacit assumption of a generalization faculty.

What do I mean by that? By “generalization faculty”, I mean some hypothetical mental capacity that allows you to generalize your knowledge and skills across different domains, so that once you get good at one thing, it also makes you good at other things.

This certainly seems to be how humans think, at least some of the time: Someone who is very good at chess is likely also pretty good at go, and someone who can drive a motorcycle can probably also drive a car. An artist who is good at portraits is probably not bad at landscapes. Human beings are, in fact, able to generalize, at least sometimes.

But I think the mistake lies in imagining that there is just one thing that makes us good at generalizing: Just one piece of hardware or software that allows you to carry over skills from any domain to any other. This is the “generalization faculty”—the imagined faculty that I think we do not have, indeed I think does not exist.

Computers clearly do not have the capacity to generalize. A program that can beat grandmasters at chess may be useless at go, and self-driving software that works on one type of car may fail on another, let alone a motorcycle. An art program that is good at portraits of women can fail when trying to do portraits of men, and produce horrific Daliesque madness when asked to make a landscape.

But if they did somehow have our generalization capacity, then, once they could compete with us at some things—which they surely can, already—they would be able to compete with us at just about everything. So if it were really just one thing that would let them generalize, let them leap from AI to AGI, then suddenly everything would change, almost overnight.

And so this is how the AI hype cycle goes, time and time again:

  1. A computer program is made that does something impressive, something that other computer programs could not do, perhaps even something that human beings are not very good at doing.
  2. If that same prowess could be generalized to other domains, the result would plainly be something on par with human intelligence.
  3. Therefore, the only thing this computer program needs in order to be sapient is a generalization faculty.
  4. Therefore, there is just one more step to AGI! We are nearly there! It will happen any day now!

And then, of course, despite heroic efforts, we are unable to generalize that program’s capabilities except in some very narrow way—even decades after having good chess programs, getting programs to be good at go was a major achievement. We are unable to find the generalization faculty yet again. And the software becomes yet another “AI tool” that we will use to search websites or make video games.

For there never was a generalization faculty to be found. It always was a mirage in the desert sand.

Humans are in fact spectacularly good at generalizing, compared to, well, literally everything else in the known universe. Computers are terrible at it. Animals aren’t very good at it. Just about everything else is totally incapable of it. So yes, we are the best at it.

Yet we, in fact, are not particularly good at it in any objective sense.

In experiments, people often fail to generalize their reasoning even in very basic ways. There’s a famous one where we try to get people to make an analogy between a military tactic and a radiation treatment, and while very smart, creative people often get it quickly, most people are completely unable to make the connection unless you give them a lot of specific hints. People often struggle to find creative solutions to problems even when those solutions seem utterly obvious once you know them.

I don’t think this is because people are stupid or irrational. (To paraphrase Sydney Harris: Compared to what?) I think it is because generalization is hard.

People tend to be much better at generalizing within familiar domains where they have a lot of experience or expertise; this shows that there isn’t just one generalization faculty, but many. We may have a plethora of overlapping generalization faculties that apply across different domains, and can learn to improve some over others.

But it isn’t just a matter of gaining more expertise. Highly advanced expertise is in fact usually more specialized—harder to generalize. A good amateur chess player is probably a good amateur go player, but a grandmaster chess player is rarely a grandmaster go player. Someone who does well in high school biology probably also does well in high school physics, but most biologists are not very good physicists. (And lest you say it’s simply because go and physics are harder: The converse is equally true.)

Humans do seem to have a suite of cognitive tools—some innate hardware, some learned software—that allows us to generalize our skills across domains. But even after hundreds of millions of years of evolving that capacity under the highest possible stakes, we still basically suck at it.

To be clear, I do not think it will take hundreds of millions of years to make AGI—or even millions, or even thousands. Technology moves much, much faster than evolution. But I would not be surprised if it took centuries, and I am confident it will at least take decades.

But we don’t need AGI for AI to have powerful effects on our lives. Indeed, even now, AI is already affecting our lives—in mostly bad ways, frankly, as we seem to be hurtling gleefully toward the very same corporatist cyberpunk dystopia we were warned about in the 1980s.

A lot of technologies have done great things for humanity—sanitation and vaccines, for instance—and even automation can be a very good thing, as increased productivity is how we attained our First World standard of living. But AI in particular seems best at automating away the kinds of jobs human beings actually find most fulfilling, and worsening our already staggering inequality. As a civilization, we really need to ask ourselves why we got automated writing and art before we got automated sewage cleaning or corporate management. (We should also ask ourselves why automated stock trading resulted in even more money for stock traders, instead of putting them out of their worthless parasitic jobs.) There are technological reasons for this, yes; but there are also cultural and institutional ones. Automated teaching isn’t far away, and education will be all the worse for it.

To change our lives, AI doesn’t have to be good at everything. It just needs to be good at whatever we were doing to make a living. AGI may be far away, but the impact of AI is already here.

Indeed, I think this quixotic quest for AGI, and all the concern about how to control it and what effects it will have upon our society, may actually be distracting from the real harms that “ordinary” “boring” AI is already having upon our society. I think a Terminator scenario, where the machines rapidly surpass our level of intelligence and rise up to annihilate us, is quite unlikely. But a scenario where AI puts millions of people out of work with insufficient safety net, triggering economic depression and civil unrest? That could be right around the corner.

Frankly, all it may take is getting automated trucks to work, which could be just a few years. There are nearly 4 million truck drivers in the United States—a full percentage point of employment unto itself. And the Governor of California just vetoed a bill that would require all automated trucks to have human drivers. From an economic efficiency standpoint, his veto makes perfect sense: If the trucks don’t need drivers, why require them? But from an ethical and societal standpoint… what do we do with all the truck drivers!?

Knowing When to Quit

PNRJ current events, personal, science and academia , , , , , , , , , ,

Sep 10 JDN 2460198

At the time of writing this post, I have officially submitted my letter of resignation at the University of Edinburgh. I’m giving them an entire semester of notice, so I won’t actually be leaving until December. But I have committed to my decision now, and that feels momentous.

Since my position here was temporary to begin with, I’m actually only leaving a semester early. Part of me wanted to try to stick it out, continue for that one last semester and leave on better terms. Until I sent that letter, I had that option. Now I don’t, and I feel a strange mix of emotions: Relief that I have finally made the decision, regret that it came to this, doubt about what comes next, and—above all—profound ambivalence.

Maybe it’s the very act of quitting—giving up, being a quitter—that feels bad. Even knowing that I need to get out of here, it hurts to have to be the one to quit.

Our society prizes grit and perseverance. Since I was a child I have been taught that these are virtues. And to some extent, they are; there certainly is such a thing as giving up too quickly.

But there is also such a thing as not knowing when to quit. Sometimes things really aren’t going according to plan, and you need to quit before you waste even more time and effort. And I think I am like Randall Monroe in this regard; I am more inclined to stay when I shouldn’t than quit when I shouldn’t:

Sometimes quitting isn’t even as permanent as it is made out to be. In many cases, you can go back later and try again when you are better prepared.

In my case, I am unlikely to ever work at the University of Edinburgh again, but I haven’t yet given up on ever having a career in academia. Then again, I am by no means as certain as I once was that academia is the right path for me. I will definitely be searching for other options.

There is a reason we are so enthusiastically sold on the virtue of perseverance. Part of how our society sells the false narrative of meritocracy is by claiming that people who succeed did so because they tried harder or kept on trying.

This is not entirely false; all other things equal, you are more likely to succeed if you keep on trying. But in some ways that just makes it more seductive and insidious.

For the real reason most people hit home runs in life is they were born on third base. The vast majority of success in life is determined by circumstances entirely outside individual control.


Even having the resources to keep trying is not guaranteed for everyone. I remember a great post on social media pointing out that entrepreneurship is like one of those carnival games:

Entrepreneurship is like one of those carnival games where you throw darts or something.

Middle class kids can afford one throw. Most miss. A few hit the target and get a small prize. A very few hit the center bullseye and get a bigger prize. Rags to riches! The American Dream lives on.

Rich kids can afford many throws. If they want to, they can try over and over and over again until they hit something and feel good about themselves. Some keep going until they hit the center bullseye, then they give speeches or write blog posts about ‘meritocracy’ and the salutary effects of hard work.

Poor kids aren’t visiting the carnival. They’re the ones working it.

The odds of succeeding on any given attempt are slim—but you can always pay for more tries. A middle-class person can afford to try once; mostly those attempts will fail, but a few will succeed and then go on to talk about how their brilliant talent and hard work made the difference. A rich person can try as many times as they like, and when they finally succeed, they can credit their success to perseverance and a willingness to take risks. But the truth is, they didn’t have any exceptional reserves of grit or courage; they just had exceptional reserves of money.

In my case, I was not depleting money (if anything, I’m probably losing out financially by leaving early, though that very much depends on how the job market goes for me): It was something far more valuable. I was whittling away at my own mental health, depleting my energy, draining my motivation. The resource I was exhausting was my very soul.

I still have trouble articulating why it has been so painful for me to work here. It’s so hard to point to anything in particular.

The most obvious downsides were things I knew at the start: The position is temporary, the pay is mediocre, and I had to move across the Atlantic and live thousands of miles from home. And I had already heard plenty about the publish-or-perish system of research publication.

Other things seem like minor annoyances: They never did give me a good office (I have to share it with too many people, and there isn’t enough space, so in fact I rarely use it at all). They were supposed to assign me a faculty mentor and never did. They kept rearranging my class schedule and not telling me things until immediately beforehand.

I think what it really comes down to is I didn’t realize how much it would hurt. I knew that I was moving across the Atlantic—but I didn’t know how isolated and misunderstood I would feel when I did. I knew that publish-or-perish was a problem—but I didn’t know how agonizing it would be for me in particular. I knew I probably wouldn’t get very good mentorship from the other faculty—but I didn’t realize just how bad it would be, or how desperately I would need that support I didn’t get.

I either underestimated the severity of these problems, or overestimated my own resilience. I thought I knew what I was going into, and I thought I could take it. But I was wrong. I couldn’t take it. It was tearing me apart. My only answer was to leave.

So, leave I shall. I have now committed to doing so.

I don’t know what comes next. I don’t even know if I’ve made the right choice. Perhaps I’ll never truly know. But I made the choice, and now I have to live with it.

The rise and plateau of China’s economy

PNRJ current events, development economics, public policy , , , , , , ,

Sep 3 JDN 2460191

It looks like China’s era of extremely rapid economic growth may be coming to an end. Consumer confidence in China cratered this year (and, in typical authoritarian fashion, the agency responsible just quietly stopped publishing the data after that). Current forecasts have China’s economy growing only about 4-5% this year, which would be very impressive for a First World country—but far below the 6%, 7%, even 8% annual growth rates China had in recent years.

Some slowdown was quite frankly inevitable. A surprising number of people—particularly those in or from China—seem to think that China’s ultra-rapid growth was something special about China that could be expected to continue indefinitely.

China’s growth does look really impressive, in isolation:

But in fact this is a pattern we’ve seen several times now (admittedly mostly in Asia): A desperately poor Third World country finally figures out how to get its act together, and suddenly has extremely rapid growth for awhile until it manages to catch up and become a First World country.

It happened in South Korea:

It happened in Japan:

It happened in Taiwan:

It even seems to be happening in Botswana:

And this is a good thing! These are the great success stories of economic development. If we could somehow figure out how to do this all over the world, it might literally be the best thing that ever happened. (It would solve so many problems!)

Here’s a more direct comparison across all these countries (as well as the US), on a log scale:

From this you can pretty clearly see two things.

First, as countries get richer, their growth tends to slow down gradually. By the time Japan, Korea, and Taiwan reached the level that the US had been at back in 1950, their growth slowed to a crawl. But that was okay, because they had already become quite rich.

And second, China is nothing special: Yes, their growth rate is faster than the US, because the US is already so rich. But they are following the same pattern as several other countries. In fact they’ve actually fallen behind Botswana—they used to be much richer than Botswana, and are now slightly poorer.

So while there are many news articles discussing why China’s economy is slowing down, and some of them may even have some merit (they really seem to have screwed up their COVID response, for instance, and their terrible housing price bubble just burst); but the ultimate reason is really that 7% annual economic growth is just not sustainable. It will slow down. When and how remains in question—but it will happen.

Thus, I am not particularly worried about the fact that China’s growth has slowed down. Or at least, I wouldn’t be, if China were governed well and had prepared for this obvious eventuality the way that Korea and Japan did. But what does worry me is that they seem unprepared for this. Their authoritarian government seems to have depended upon sky-high economic growth to sustain support for their regime. The cracks are now forming in that dam, and something terrible could happen when it bursts.

Things may even be worse than they look, because we know that the Chinese government often distorts or omits statistics when they become inconvenient. That can only work for so long: Eventually the reality on the ground will override whatever lies the government is telling.

There are basically two ways this could go: They could reform their government to something closer to a liberal democracy, accept that growth will slow down and work toward more shared prosperity, and then take their place as a First World country like Japan did. Or they could try to cling to their existing regime, gripping ever tighter until it all slips out of their fingers in a potentially catastrophic collapse. Unfortunately, they seem to be opting for the latter.

I hope I’m wrong. I hope that China will find its way toward a future of freedom and prosperity.

But at this point, it doesn’t look terribly likely.

The Fringe: An overwhelming embarrassment of riches

PNRJ current events, market failure , , , , , , , , , ,

Aug 20 JDN 2460177

As I write this, Edinburgh is currently in the middle of The Fringe: It’s often described as an “arts and culture festival”, but mainly it consists of a huge number of theatre and comedy performances that go on across the city in hundreds of venues all month long. It’s an “open access festival”, which basically means that it’s half a dozen different festivals that all run independently and are loosely coordinated with one another.

There is truly an embarrassment of riches in the sheer number and variety of performances going on. There’s no way I could ever go to all of them, or even half of them, even though most of them are going on every single day, all month long

It would be tremendously helpful to get good information about which performances are likely to suit my tastes, so I’d know which ones to attend. For once, advertising actually has a genuinely useful function to serve!

And yet, the ads for performances plastered across the city are almost completely useless. They tell you virtually nothing about the content or even style of the various shows. You are bombarded with hundreds of posters for hundreds of performances as you walk through the city, and almost none of them tell you anything useful that would help you decide which shows you want to attend.

Here’s what they look like; imagine this plastered on every bus shelter and spare bit of wall in the city, as well as plenty of specially-built structures explicitly for the purpose:

What I want to ask today is: Why are these posters so uninformative?

I think there are two forces at work here which may explain this phenomenon.

The first is about comedy: Most of these shows are comedy shows, and it’s very hard to explain to someone what is funny about a joke. In fact, most jokes aren’t even funny once they have been explained. Comedy seems to be closely tied to surprise: If you know exactly what they are going to say, it isn’t funny anymore. So it is inherently difficult to explain what’s good about a comedy show without making it actually less funny for those attending.

Yet this is not a complete explanation. For there are some things you could explain about comedy shows without ruining them. You could give it a general genre: political satire, slapstick, alternative, dark comedy, blue comedy, burlesque, cringe, insult, sitcom, parody, surreal, and so on. That would at least tell you something—I tend to like satire and parody, dark and blue are hit-or-miss, surreal leaves me cold, and I can’t stand cringe. And some of the posters do this—yet a remarkable number do not. I often find myself staring at a particular poster, poring over its details, trying to get some inkling of what kind of comedy I could expect from this performer.

To fully explain this, we need something more: And that, I believe, is provided by economic theory.

Consider for a moment that comedy is varied and largely subjective: What one person finds hilarious, another finds boring, and yet another finds outrageously offensive. And whether or not you find a particular routine funny can be hard to predict—even for you.

But consider that money is quite the opposite: Everyone wants it, everyone always wants more of it, and people pretty much want it for the same reasons.

So when you offer to pay money for comedy, you are offering something fundamentally fungible and objective in exchange for something almost totally individual and subjective. You are giving what everyone wants in exchange for something that only some people want and you yourself may or may not want—and may have no way of knowing whether you want until you have it.

I believe it is in the interests of the performers to keep you in the dark in this way. They don’t want to resolve your ignorance too thoroughly. Their goal is not to find the market niche of people who would most enjoy their comedy. Their goal is to get as many people as possible to show up to their shows. Even if someone absolutely hates their show, if they bought tickets, that’s a win. And even any negative reviews or word-of-mouth they might try to give the comedian is probably still a win—comedians are one profession for which there really may be no such thing as bad publicity.

In other words, even these relatively helpful advertisements aren’t actually designed to inform you. They are, as all advertisements are, designed to get you to buy something. And the way to get you to do that is twofold:

First, get your attention. That’s vital. And it’s quite difficult in such a saturated environment. As a result, all of the posters are quite eye-catching and often bizarre. They use loud colors and striking images, and the whole city is filled with them. It actually becomes exhausting to look at them all; but this is the Nash equilibrium, because there is an arms race between different performers to look more interesting and exciting than all the rest.

Second, convince you to go. But let’s be clear about this: It is not necessary to make you absolutely certain that this show is one you’ll enjoy. It is merely to tip the balance of probability, make you reasonably confident that it is likely to be one you’ll enjoy. Given the subjectivity and unpredictability of comedy, any attendee knows that they are likely to end up with a few duds. That risk effectively gets priced in: You accept that one £10 ticket may be wasted, in exchange for buying another £10 ticket that you’d have gladly paid £20 for.

If the posters tried to give more details about what the shows were about, there would be two costs to this: One, it might make the posters less eye-catching and interesting in the first place. And two, it might (perhaps correctly!) convince some customers that this flavor of comedy really wasn’t for them, making them decide not to buy a ticket. The task when designing such a poster, then, is to make one that conveys enough that people are willing to take the chance on it—but not too much so that you might scare some potential audience members away.

I think that this has implications which go beyond comedy. In fact, I think that something quite similar is going on with political speeches. But I’ll save that one for another post.

The unsung success of Bidenomics

PNRJ core principles, current events, macroeconomics, politics, public policy , , , , , , , , , ,

Aug 13 JDN 2460170

I’m glad to see that the Biden administration is finally talking about “Bidenomics”. We tend to give too much credit or blame for economic performance to the President—particularly relative to Congress—but there are many important ways in which a Presidential administration can shift the priorities of public policy in particular directions, and Biden has clearly done that.

The economic benefits for people of color seem to have been particularly large. The unemployment gap between White and Black workers in the US is now only 2.7 percentage points, while just a few years ago it was over 4pp and at the worst of the Great Recession it surpassed 7pp. During lockdown, unemployment for Black people hit nearly 17%; it is now less than 6%.

The (misnamed, but we’re stuck with it) Inflation Reduction Act in particular has been an utter triumph.

In the past year, real private investment in manufacturing structures (essentially, new factories) has risen from $56 billion to $87 billion—an over 50% increase, which puts it the highest it has been since the turn of the century. The Inflation Reduction Act appears to be largely responsible for this change.

Not many people seem to know this, but the US has also been on the right track with regard to carbon emissions: Per-capita carbon emissions in the US have been trending downward since about 2000, and are now lower than they were in the 1950s. The Inflation Reduction act now looks poised to double down on that progress, as it has been forecasted to reduce our emissions all the way down to 40% below their early-2000s peak.

Somehow, this success doesn’t seem to be getting across. The majority of Americans incorrectly believe that we are in a downturn. Biden’s approval rating is still only 40%, barely higher than Trump’s was. When it comes to political beliefs, most American voters appear to be utterly impervious to facts.

Most Americans do correctly believe that inflation is still a bit high (though many seem to think it’s higher than it is); this is weird, seeing as inflation is normally high when the economy is growing rapidly, and gets too low when we are in a recession. This seems to be Halo Effect, rather than any genuine understanding of macroeconomics: downturns are bad and inflation is bad, so they must go together—when in fact, quite the opposite is the case.

People generally feel better about their own prospects than they do about the economy as a whole:

Sixty-four percent of Americans say the economy is worse off compared to 2020, while seventy-three percent of Americans say the economy is worse off compared to five years ago. About two in five of Americans say they feel worse off from five years ago generally (38%) and a similar number say they feel worse off compared to 2020 (37%).

(Did you really have to write out ‘seventy-three percent’? I hate that convention. 73% is so much clearer and quicker to read.)

I don’t know what the Biden administration should do about this. Trying to sell themselves harder might backfire. (And I’m pretty much the last person in the world you should ask for advice about selling yourself.) But they’ve been doing really great work for the US economy… and people haven’t noticed. Thousands of factories are being built, millions of people are getting jobs, and the collective response has been… “meh”.

How to make political conversation possible

PNRJ cognitive science, core principles, current events, ethics, politics, tribal paradigm , , , , , , , , , ,

Jun 25 JDN 2460121

Every man has the right to an opinion, but no man has a right to be wrong in his facts.

~Bernard Baruch

We shouldn’t expect political conversation to be easy. Politics inherently involves confllict. There are various competing interests and different ethical views involved in any political decision. Budgets are inherently limited, and spending must be prioritized. Raising taxes supports public goods but hurts taxpayers. A policy that reduces inflation may increase unemployment. A policy that promotes growth may also increase inequality. Freedom must sometimes be weighed against security. Compromises must be made that won’t make everyone happy—often they aren’t anyone’s first choice.

But in order to have useful political conversations, we need to have common ground. It’s one thing to disagree about what should be done—it’s quite another to ‘disagree’ about the basic facts of the world. Reasonable people can disagree about what constitutes the best policy choice. But when you start insisting upon factual claims that are empirically false, you become inherently unreasonable.

What terrifies me about our current state of political discourse is that we do not seem to have this common ground. We can’t even agree about basic facts of the world. Unless we can fix this, political conversation will be impossible.

I am tempted to say “anymore”—it at least feels to me like politics used to be different. But maybe it’s always been this way, and the Internet simply made the unreasonable voices louder. Overall rates of belief in most conspiracy theories haven’t changed substantially over time. Many other times have declared themselves ‘the golden age of conspiracy theory’. Maybe this has always been a problem. Maybe the greatest reason humanity has never been able to achieve peace is that large swaths of humanity can’t even agree on the basic facts.

Donald Trump exemplified this fact-less approach to politics, and QAnon remains a disturbingly significant force in our politics today. It’s impossible to have a sensible conversation with people who are convinced that you’re supporting a secret cabal of Satanic child molesters—and all the more impossible because they were willing to become convinced of that on literally zero evidence. But Trump was not the first conspiracist candidate, and will not be the last.

Robert F. Kennedy Jr. now seems to be challenging Trump for the title of ‘most unreasonable Presidential candidate’, as he has now advocated for an astonishing variety of bizarre unfounded claims: that vaccines are deadly, that antidepressants are responsible for mass shootings, that COVID was a Chinese bioweapon. He even claims things that can be quickly refuted simply by looking up the figures: He says that Switzerland’s gun ownership rate is comparable to the US, when in fact it’s only about one-fourth as high. No other country even comes close to the extraordinarily high rate of gun ownership in the US; we are the only country in the world with more privately-owned guns than private citizens to own them—more guns than people. (We also have by far the most military weapons as well, but that’s a somewhat different issue.)

What should we be doing about this? I think at this point it’s clear that simply sitting back and hoping it goes away on its own is not working. There is a widespread fear that engaging with bizarre theories simply grants them attention, but I think we have no serious alternative. They aren’t going to disappear if we simply ignore them.

That still leaves the question of how to engage. Simply arguing with their claims directly and presenting mainstream scientific evidence appears to be remarkably ineffective. They will simply dismiss the credibility of the scientific evidence, often by exaggerating genuine flaws in scientific institutions. The journal system is broken? Big Pharma has far too much influence? Established ideas take too long to become unseated? All true. But that doesn’t mean that magic beans cure cancer.

A more effective—not easy, and certainly not infallible, but more effective—strategy seems to be to look deeper into why people say the things they do. I emphasize the word ‘say’ here, because it often seems to be the case that people don’t really believe in conspiracy theories the way they believe in ordinary facts. It’s more the mythology mindset.

Rather than address the claims directly, you need to address the person making the claims. Before getting into any substantive content, you must first build rapport and show empathy—a process some call pre-suasion. Then, rather than seeking out the evidence that support their claims—as there will be virtually none—try to find out what emotional need the conspiracy theory satisfies for them: How does it help them make sense of the terrifying chaos of the world? How does professing belief in something that initially seems absurd and horrific actually make the world seem more orderly and secure in their mind?


For instance, consider the claim that 9/11 was an inside job. At face value, this is horrifying: The US government is so evil it was prepared to launch an attack on our own soil, against our own citizens, in order to justify starting a war in another country? Against such a government, I think violent insurrection is the only viable response. But if you consider it from another perspective, it makes the world less terrifying: At least, there is someone in control. An attack like 9/11 means that the world is governed by chaos: Even we in the seemingly-impregnable fortress of American national security are in fact vulnerable to random attacks by small groups of dedicated fanatics. In the conspiracist vision of the world, the US government becomes a terrible villain; but at least the world is governed by powerful, orderly forces—not random chaos.

Or consider one of the most widespread (and, to be fair, one of the least implausible) conspiracy theories: That JFK was assassinated not by a single fanatic, but by an organized agency—the KGB, or the CIA, or the Vice President. In the real world, the President of the United States—the most powerful man on the entire planet—can occasionally be felled by a single individual who is dedicated enough and lucky enough. In the conspiracist world, such a powerful man can only be killed by someone similarly powerful. The world may be governed by an evil elite—but at least it is governed. The rules may be evil, but at least there are rules.

Understanding this can give you some sympathy for people who profess conspiracies: They are struggling to cope with the pain of living in a chaotic, unpredictable, disorderly world. They cannot deny that terrible events happen, but by attributing them to unseen, organized forces, they can at least believe that those terrible events are part of some kind of orderly plan.


At the same time, you must constantly guard against seeming arrogant or condescending. (This is where I usually fail; it’s so hard for me to take these ideas seriously.) You must present yourself as open-minded and interested in speaking in good faith. If they sense that you aren’t taking them seriously, people will simply shut down and refuse to talk any further.

It’s also important to recognize that most people with bizarre beliefs aren’t simply gullible. It isn’t that they believe whatever anyone tells them. On the contrary, they seem to suffer from misplaced skepticism: They doubt the credible sources and believe the unreliable ones. They are hyper-aware of the genuine problems with mainstream sources, and yet somehow totally oblivious to the far more glaring failures of the sources they themselves trust.

Moreover, you should never expect to change someone’s worldview in a single conversation. That simply isn’t how human beings work. The only times I have ever seen anyone completely change their opinion on something in a single sitting involved mathematical proofs—showing a proper proof really can flip someone’s opinion all by itself. Yet even scientists working in their own fields of expertise generally require multiple sources of evidence, combined over some period of time, before they will truly change their minds.

Your goal, then, should not be to convince someone that their bizarre belief is wrong. Rather, convince them that some of the sources they trust are just as unreliable as the ones they doubt. Or point out some gaps in the story they hadn’t considered. Or offer an alternative account of events that explains the outcome without requiring the existence of a secret evil cabal. Don’t try to tear down the entire wall all at once; chip away at it, one little piece at a time—and one day, it will crumble.

Hopefully if we do this enough, we can make useful political conversation possible.

The idiocy of the debt ceiling

PNRJ current events, politics, public policy , , , , , , , , , ,

Apr 23 JDN 2460058

I thought we had put this behind us. I guess I didn’t think the Republicans would stop using the tactic once they saw it worked, but I had hoped that the Democrats would come up with a better permanent solution so that it couldn’t be used again. But they did not, and here we are again: Republicans are refusing to raise the debt ceiling, we have now hit that ceiling, and we are running out of time before we have to start shutting down services or defaulting on debt. There are talks ongoing that may yet get the ceiling raised in time, but we’re now cutting it very close. Already the risk that we might default or do something crazy is causing turmoil in financial markets.

Because US Treasury bonds are widely regarded as one of the world’s most secure assets, and the US dollar is the most important global reserve currency, the entire world’s financial markets get disrupted every time there is an issue with the US national debt, and the debt ceiling creates such disruptions on the regular for no good reason.

I will try to offer some of my own suggestions for what to do here, but first, I want to make something very clear: The debt ceiling should not exist. I don’t think most people understand just how truly idiotic the entire concept of a debt ceiling is. It seems practically designed to make our government dysfunctional.

This is not like a credit card limit, where your bank imposes a limit on how much you can borrow based on how much they think you are likely to be able to repay. A lot of people have been making that analogy, and I can see why it’s tempting; but as usual, it’s important to remember that government debt is not like personal debt.

As I said some years ago, US government debt is about as close as the world is ever likely to come to a perfect credit market: with no effort at all, borrow as much as you want at low, steady interest rates, and everyone will always be sure that you will pay it back on time. The debt ceiling is a limit imposed by the government itself—it is not imposed by our creditors, who would be more than happy to lend us more.

Also, I’d like to remind you that some of the US national debt is owned by the US government itself (is that really even “debt”?) and most of what’s left is owned by US individuals or corporations—only about a third is owed to foreign powers. Here is a detailed breakdown of who owns US national debt.

There is no reason to put an arbitrary cap on the amount the US government can borrow. The only reason anyone is at all worried about a default on the US national debt is because of this stupid arbitrary cap. If it didn’t exist, they would simply roll over more Treasury bonds to make the payments and everything would run smoothly. And this is normally what happens, when the Republicans aren’t playing ridiculous brinkmanship games.

As it is, they could simply print money to pay it—and at this point, maybe that’s what needs to happen. Mint the Coin already: Mint a $1 trillion platinum coin and deposit it in the Federal Reserve, and there you go, you’ve paid off a chunk of the debt. Sometimes stupid problems require stupid solutions.

Aren’t there reasons to be worried about the government borrowing too much? Yes, a little. The amount of concern most people have about this is wildly disproportionate to the actual problem, but yes, there are legitimate concerns about high national debt resulting in high interest rates and eventually forcing us to raise taxes or cut services. This is a slow-burn, long-term problem that by its very nature would never require a sudden, immediate solution; but it is a genuine concern we should be aware of.

But here’s the thing: That’s a conversation we should be having when we vote on the budget. Whenever we pass a government budget, it already includes detailed projections of tax revenue and spending that yield precise, accurate forecasts of the deficit and the debt. If Republicans are genuinely concerned that we are overspending on certain programs, they should propose budget cuts to those programs and get those cuts passed as part of the budget.

Once a budget is already passed, we have committed to spend that money. It has literally been signed into law that $X will be spend on program Y. At that point, you can’t simply cut the spending. If you think we’re spending too much, you needed to say that before we signed it into law. It’s too late now.

I’m always dubious of analogies between household spending and government spending, but if you really want one, think of it this way: Say your credit card company is offering to raise your credit limit, and you just signed a contract for some home improvements that would force you to run up your credit card past your current limit. Do you call the credit card company and accept the higher limit, or not? If you don’t, why don’t you? And what’s your plan for paying those home contractors? Even if you later decide that the home improvements were a bad idea, you already signed the contract! You can’t just back out!

This is why the debt ceiling is so absurd: It is a self-imposed limit on what you’re allowed to spend after you have already committed to spending it. The only sensible thing to do is to raise the debt ceiling high enough to account for the spending you’ve already committed to—or better yet, eliminate the ceiling entirely.

I think that when they last had a majority in both houses, the Democrats should have voted to make the debt ceiling ludicrously high—say $100 trillion. Then, at least for the foreseeable future, we wouldn’t have to worry about raising it, and could just pass budgets normally like a sane government. But they didn’t do that; they only raised it as much as was strictly necessary, thus giving the Republicans an opening now to refuse to raise it again.

And that is what the debt ceiling actually seems to accomplish: It gives whichever political party is least concerned about the public welfare a lever they can pull to disrupt the entire system whenever they don’t get things the way they want. If you absolutely do not care about the public good—and it’s quite clear at this point that most of the Republican leadership does not—then whenever you don’t get your way, you can throw a tantrum that threatens to destabilize the entire global financial system.

We need to stop playing their game. Do what you have to do to keep things running for now—but then get rid of the damn debt ceiling before they can use it to do even more damage.

Will hydrogen make air travel sustainable?

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

Apr 9 JDN 2460042

Air travel is currently one of the most carbon-intensive activities anyone can engage in. Per passenger kilometer, airplanes emit about 8 times as much carbon as ships, 4 times as much as trains, and 1.5 times as much as cars. Living in a relatively eco-friendly city without a car and eating a vegetarian diet, I produce much less carbon than most First World citizens—except when I fly across the Atlantic a couple of times a year.

Until quite recently, most climate scientists believed that this was basically unavoidable, that simply sustaining the kind of power output required to keep an airliner in the air would always require carbon-intensive jet fuel. But in just the past few years, major breakthroughs have been made in using hydrogen propulsion.

The beautiful thing about hydrogen is that burning it simply produces water—no harmful pollution at all. It’s basically the cleanest possible fuel.


The simplest approach, which is actually quite old, but until recently didn’t seem viable, is the use of liquid hydrogen as airplane fuel.

We’ve been using liquid hydrogen as a rocket fuel for decades; so we knew it had enough energy density. (Actually its energy density is higher than conventional jet fuel.)

The problem with liquid hydrogen is that it must be kept extremely cold—it boils at 20 Kelvin. And once liquid hydrogen boils into gas, it builds up pressure very fast and easily permeates through most materials, so it’s extremely hard to contain. This makes it very difficult and expensive to handle.

But this isn’t the only way to use hydrogen, and may turn out to not be the best one.

There are now prototype aircraft that have flown using hydrogen fuel cells. These fuel cells can be fed with hydrogen gas—so no need to cool below 20 Kelvin. But then they can’t directly run the turbines; instead, these planes use electric turbines which are powered by the fuel cell.

Basically these are really electric aircraft. But whereas a lithium battery would be far too heavy, a hydrogen fuel cell is light enough for aviation use. In fact, hydrogen gas up to a certain pressure is lighter than air (it was often used for zeppelins, though, uh, occasionally catastrophically), so potentially the planes could use their own fuel tanks for buoyancy, landing “heavier” than they took off. (On the other hand it might make more sense to pressurize the hydrogen beyond that point, so that it will still be heavier than air—but perhaps still lighter than jet fuel!)

Of course, the technology is currently too untested and too expensive to be used on a wide scale. But this is how all technologies begin. It’s of course possible that we won’t be able to solve the engineering problems that currently make hydrogen-powered aircraft unaffordable; but several aircraft manufacturers are now investing in hydrogen research—suggesting that they at least believe there is a good chance we will.

There’s also the issue of where we get all the hydrogen. Hydrogen is extremely abundant—literally the most abundant baryonic matter in the universe—but most of what’s on Earth is locked up in water or hydrocarbons. Most of the hydrogen we currently make is produced by processing hydrocarbons (particularly methane), but that produces carbon emissions, so it wouldn’t solve the problem.

A better option is electrolysis: Using electricity to separate water into hydrogen and oxyen. But this requires a lot of energy—and necessarily, more energy than you can get out of burning the hydrogen later, since burning it basically is just putting the hydrogen and oxygen back together to make water.

Yet all is not lost, for while energy density is absolutely vital for an aircraft fuel, it’s not so important for a ground-based power plant. As an ultimate fuel source, hydrogen is a non-starter. But as an energy storage medium, it could be ideal.

The idea is this: We take the excess energy from wind and solar power plants, and use that energy to electrolyze water into hydrogen and oxygen. We then store that hydrogen and use it for fuel cells to run aircraft (and potentially other things as well). This ensures that the extra energy that renewable sources can generate in peak times doesn’t go to waste, and also provides us with what we need to produce clean-burning hydrogen fuel.

The basic technology for doing all this already exists. The current problem is cost. Under current conditions, it’s far more expensive to make hydrogen fuel than to make conventional jet fuel. Since fuel is one of the largest costs for airlines, even small increases in fuel prices matter a lot for the price of air travel; and these are not even small differences. Currently hydrogen costs over 10 times as much per kilogram, and its higher energy density isn’t enough to make up for that. For hydrogen aviation to be viable, that ratio needs to drop to more like 2 or 3—maybe even all the way to 1, since hydrogen is also more expensive to store than jet fuel (the gas needs high-pressure tanks, the liquid needs cryogenic cooling systems).

This means that, for the time being, it’s still environmentally responsible to reduce your air travel. Fly less often, always fly economy (more people on the plane means less carbon per passenger), and buy carbon offsets (they’re cheaper than you may think).

But in the long run, we may be able to have our cake and eat it too: If hydrogen aviation does become viable, we may not need to give up the benefits of routine air travel in order to reduce our carbon emissions.

What happens when a bank fails

PNRJ critique of neoclassical economics, current events, inequality, macroeconomics, market failure, public policy , , , , , , , , , , , , , , , ,

Mar 19 JDN 2460023

As of March 9, Silicon Valley Bank (SVB) has failed and officially been put into receivership under the FDIC. A bank that held $209 billion in assets has suddenly become insolvent.

This is the second-largest bank failure in US history, after Washington Mutual (WaMu) in 2008. In fact it will probably have more serious consequences than WaMu, for two reasons:

1. WaMu collapsed as part of the Great Recession, so there was already a lot of other things going on and a lot of policy responses already in place.

2. WaMu was mostly a conventional commercial bank that held deposits and loans for consumers, so its assets were largely protected by the FDIC, and thus its bankruptcy didn’t cause contagion the spread out to the rest of the system. (Other banks—shadow banks—did during the crash, but not so much WaMu.) SVB mostly served tech startups, so a whopping 89% of its deposits were not protected by FDIC insurance.

You’ve likely heard of many of the companies that had accounts at SVB: Roku, Roblox, Vimeo, even Vox. Stocks of the US financial industry lost $100 billion in value in two days.

The good news is that this will not be catastrophic. It probably won’t even trigger a recession (though the high interest rates we’ve been having lately potentially could drive us over that edge). Because this is commercial banking, it’s done out in the open, with transparency and reasonably good regulation. The FDIC knows what they are doing, and even though they aren’t covering all those deposits directly, they intend to find a buyer for the bank who will, and odds are good that they’ll be able to cover at least 80% of the lost funds.

In fact, while this one is exceptionally large, bank failures are not really all that uncommon. There have been nearly 100 failures of banks with assets over $1 billion in the US alone just since the 1970s. The FDIC exists to handle bank failures, and generally does the job well.

Then again, it’s worth asking whether we should really have a banking system in which failures are so routine.

The reason banks fail is kind of a dark open secret: They don’t actually have enough money to cover their deposits.

Banks loan away most of their cash, and rely upon the fact that most of their depositors will not want to withdraw their money at the same time. They are required to keep a certain ratio in reserves, but it’s usually fairly small, like 10%. This is called fractional-reserve banking.

As long as less than 10% of deposits get withdrawn at any given time, this works. But if a bunch of depositors suddenly decide to take out their money, the bank may not have enough to cover it all, and suddenly become insolvent.

In fact, the fear that a bank might become insolvent can actually cause it to become insolvent, in a self-fulfilling prophecy. Once depositors get word that the bank is about to fail, they rush to be the first to get their money out before it disappears. This is a bank run, and it’s basically what happened to SVB.

The FDIC was originally created to prevent or mitigate bank runs. Not only did they provide insurance that reduced the damage in the event of a bank failure; by assuring depositors that their money would be recovered even if the bank failed, they also reduced the chances of a bank run becoming a self-fulfilling prophecy.


Indeed, SVB is the exception that proves the rule, as they failed largely because their assets were mainly not FDIC insured.

Fractional-reserve banking effectively allows banks to create money, in the form of credit that they offer to borrowers. That credit gets deposited in other banks, which then go on to loan it out to still others; the result is that there is more money in the system than was ever actually printed by the central bank.

In most economies this commercial bank money is a far larger quantity than the central bank money actually printed by the central bank—often nearly 10 to 1. This ratio is called the money multiplier.

Indeed, it’s not a coincidence that the reserve ratio is 10% and the multiplier is 10; the theoretical maximum multiplier is always the inverse of the reserve ratio, so if you require reserves of 10%, the highest multiplier you can get is 10. Had we required 20% reserves, the multiplier would drop to 5.

Most countries have fractional-reserve banking, and have for centuries; but it’s actually a pretty weird system if you think about it.

Back when we were on the gold standard, fractional-reserve banking was a way of cheating, getting our money supply to be larger than the supply of gold would actually allow.

But now that we are on a pure fiat money system, it’s worth asking what fractional-reserve banking actually accomplishes. If we need more money, the central bank could just print more. Why do we delegate that task to commercial banks?

David Friedman of the Cato Institute had some especially harsh words on this, but honestly I find them hard to disagree with:

Before leaving the subject of fractional reserve systems, I should mention one particularly bizarre variant — a fractional reserve system based on fiat money. I call it bizarre because the essential function of a fractional reserve system is to reduce the resource cost of producing money, by allowing an ounce of reserves to replace, say, five ounces of currency. The resource cost of producing fiat money is zero; more precisely, it costs no more to print a five-dollar bill than a one-dollar bill, so the cost of having a larger number of dollars in circulation is zero. The cost of having more bills in circulation is not zero but small. A fractional reserve system based on fiat money thus economizes on the cost of producing something that costs nothing to produce; it adds the disadvantages of a fractional reserve system to the disadvantages of a fiat system without adding any corresponding advantages. It makes sense only as a discreet way of transferring some of the income that the government receives from producing money to the banking system, and is worth mentioning at all only because it is the system presently in use in this country.

Our banking system evolved gradually over time, and seems to have held onto many features that made more sense in an earlier era. Back when we had arbitrarily tied our central bank money supply to gold, creating a new money supply that was larger may have been a reasonable solution. But today, it just seems to be handing the reins over to private corporations, giving them more profits while forcing the rest of society to bear more risk.

The obvious alternative is full-reserve banking, where banks are simply required to hold 100% of their deposits in reserve and the multiplier drops to 1. This idea has been supported by a number of quite prominent economists, including Milton Friedman.

It’s not just a right-wing idea: The left-wing organization Positive Money is dedicated to advocating for a full-reserve banking system in the UK and EU. (The ECB VP’s criticism of the proposal is utterly baffling to me: it “would not create enough funding for investment and growth.” Um, you do know you can print more money, right? Hm, come to think of it, maybe the ECB doesn’t know that, because they think inflation is literally Hitler. There are legitimate criticisms to be had of Positive Money’s proposal, but “There won’t be enough money under this fiat money system” is a really weird take.)

There’s a relatively simple way to gradually transition from our current system to a full-reserve sytem: Simply increase the reserve ratio over time, and print more central bank money to keep the total money supply constant. If we find that it seems to be causing more problems than it solves, we could stop or reverse the trend.

Krugman has pointed out that this wouldn’t really fix the problems in the banking system, which actually seem to be much worse in the shadow banking sector than in conventional commercial banking. This is clearly right, but it isn’t really an argument against trying to improve conventional banking. I guess if stricter regulations on conventional banking push more money into the shadow banking system, that’s bad; but really that just means we should be imposing stricter regulations on the shadow banking system first (or simultaneously).

We don’t need to accept bank runs as a routine part of the financial system. There are other ways of doing things.

The role of police in society

PNRJ core principles, current events, politics, public policy, tribal paradigm , , , , , , , , , ,

Feb12 JDN 2459988

What do the police do? Not in theory, in practice. Not what are they supposed to do—what do they actually do?

Ask someone right-wing and they’ll say something like “uphold the law”. Ask someone left-wing and they’ll say something like “protect the interests of the rich”. Both of these are clearly inaccurate. They don’t fit the pattern of how the police actually behave.

What is that pattern? Well, let’s consider some examples.

If you rob a bank, the police will definitely arrest you. That would be consistent with either upholding the law or protecting the interests of the rich, so it’s not a very useful example.

If you run a business with unsafe, illegal working conditions, and someone tells the police about it, the police will basically ignore it and do nothing. At best they might forward it to some regulatory agency who might at some point get around to issuing a fine.

If you strike against your unsafe working conditions and someone calls the police to break up your picket line, they’ll immediately come in force and break up your picket line.

So that definitively refutes the “uphold the law” theory; by ignoring OSHA violations and breaking up legal strikes, the police are actively making it harder to enforce the law. It seems to fit the “protect the interests of the rich” theory. Let’s try some other examples.

If you run a fraudulent business that cons people out of millions of dollars, the police might arrest you, eventually, if they ever actually bother to get around to investigating the fraud. That certainly doesn’t look like upholding the law—but you can get very rich and they’ll still arrest you, as Bernie Madoff discovered. So being rich doesn’t grant absolute immunity from the police.

If your negligence in managing the safety systems of your factory or oil rig kills a dozen people, the police will do absolutely nothing. Some regulatory agency may eventually get around to issuing you a fine. That also looks like protecting the interests of the rich. So far the left-wing theory is holding up.

If you are homeless and camping out on city property, the police will often come to remove you. Sometimes there’s a law against such camping, but there isn’t always; and even when there is, the level of force used often seems wildly disproportionate to the infraction. This also seems to support the left-wing account.

But now suppose you go out and murder several homeless people. That is, if anything, advancing the interests of the rich; it’s certainly not harming them. Yet the police would in fact investigate. It might be low on their priorities, especially if they have a lot of other homicides; but they would, in fact, investigate it and ultimately arrest you. That doesn’t look like advancing the interests of the rich. It looks a lot more like upholding the law, in fact.

Or suppose you are the CEO of a fraudulent company that is about to be revealed and thus collapse, and instead of accepting the outcome or absconding to the Carribbean (as any sane rich psychopath would), you decide to take some SEC officials hostage and demand that they certify your business as legitimate. Are the police going to take that lying down? No. They’re going to consider you a terrorist, and go in guns blazing. So they don’t just protect the interests of the rich after all; that also looks a lot like they’re upholding the law.

I didn’t even express this as the left-wing view earlier, because I’m trying to use the woodman argument; but there are also those on the left who would say that the primary function of the police is to uphold White supremacy. I’d be a fool to deny that there are a lot of White supremacist cops; but notice that in the above scenarios I didn’t even specify the race of the people involved, and didn’t have to. The cops are no more likely to arrest a fraudulent banker because he’s Black, and no more likely to let a hostage-taker go free because he’s White. (They might be less likely to shoot the White hostage-taker—maybe, the data on that actually isn’t as clear-cut as people think—but they’d definitely still arrest him.) While racism is a widespread problem in the police, it doesn’t dictate their behavior all the time—and it certainly isn’t their core function.

What does categorically explain how the police react in all these scenarios?

The police uphold order.

Not law. Order. They don’t actually much seem to care whether what you’re doing is illegal or harmful or even deadly. They care whether it violates civil order.

This is how we can explain the fact that police would investigate murders, but ignore oil rig disasters—even if the latter causes more deaths. The former is a violation of civil order, the latter is not.

It also explains why they would be so willing to tear apart homeless camps and break up protests and strikes. Those are actually often legal, or at worst involve minor infractions; but they’re also disruptive and disorderly.

The police seem to see their core mission as keeping the peace. It could be an unequal, unjust peace full of illegal policies that cause grievous harm and death—but what matters to them is that it’s peace. They will stomp out any violence they see with even greater violence of their own. They have a monopoly on the use of force, and they intend to defend it.

I think that realizing this can help us take a nuanced view of the police. They aren’t monsters or tools of oppression. But they also aren’t brave heroes who uphold the law and keep us safe. They are instruments of civil order.

We do need civil order; there are a lot of very important things in society that simply can’t function if civil order collapses. In places where civil order does fall apart, life becomes entirely about survival; the security that civil order provides is necessary not only for economic activity, but also for much of what gives our lives value.

But nor is civil order all that matters. And sometimes injustice truly does become so grave that it’s worth sacrificing some order in order to redress it. Strikes and protests genuinely are disruptive; society couldn’t function if they were happening everywhere all the time. But sometimes we need to disrupt the way things are going in order to get people to clearly see the injustice around them and do something about it.

I hope that this more realistic, nuanced assessment of the role police play in society may help to pull people away from both harmful political extremes.We can’t simply abolish the police; we need some system for maintaining civil order, and whatever system we have is probably going to end up looking a lot like police. (#ScandinaviaIsBetter, truly, but there are still cops in Norway.) But we also can’t afford to lionize the police or ignore their failures and excesses. When they fight to maintain civil order at the expense of social justice, they become part of the problem.