public policy

What would a better job market look like?

PNRJ personal, public policy , , , , , , , , ,

Sep 13 JDN 2459106

I probably don’t need to tell you this, but getting a job is really hard. Indeed, much harder than it seems like it ought to be.

Having all but completed my PhD, I am now entering the job market. The job market for economists is quite different from the job market most people deal with, and these differences highlight some potential opportunities for improving job matching in our whole economy—which, since employment is such a large part of our lives, could have wide-ranging benefits for our society.

The most obvious difference is that the job market for economists is centralized: Job postings are made through the American Economic Association listing of Job Openings for Economists (often abbrievated AEA JOE); in a typical year about 4,000 jobs are posted there. All of them have approximately the same application deadline, near the end of the year. Then, after applying to various positions, applicants get interviewed in rapid succession, all at the annual AEA conference. Then there is a matching system, where applicants get to send two “signals” indicating their top choices and then offers are made.

This year of course is different, because of COVID-19. The conference has been canceled, with all of its presentations moved online; interviews will also be conducted online. Perhaps more worrying, the number of postings has been greatly reduced, and based on past trends may be less than half of the usual number. (The number of applicants may also be reduced, but it seems unlikely to drop as much as the number of postings does.)

There are a number of flaws in even this system. First, it’s too focused on academia; very few private-sector positions use the AEA JOE system, and almost no government positions do. So those of us who are not so sure we want to stay in academia forever end up needing to deal with both this system and the conventional system in parallel. Second, I don’t understand why they use this signaling system and not a deferred-acceptance matching algorithm. I should be able to indicate more about my preferences than simply what my top two choices are—particularly when most applicants apply to over 100 positions. Third, it isn’t quite standardized enough—some positions do have earlier deadlines or different application materials, so you can’t simply put together one application packet and send it to everyone at once.

Still, it’s quite obvious that this system is superior to the decentralized job market that most people deal with. Indeed, this becomes particularly obvious when one is participating in both markets at once, as I am. The decentralized market has a wide range of deadlines, where upon seeing an application you may need to submit to it within that week, or you may have several months to respond. Nearly all applications require a resume, but different institutions will expect different content on it. Different applications may require different materials: Cover letters, references, writing samples, and transcripts are all things that some firms will want and others won’t.

Also, this is just my impression from a relatively small sample, but I feel like the AEA JOE listings are more realistic, in the following sense: They don’t all demand huge amounts of prior experience, and those that do ask for prior experience are either high-level positions where that’s totally reasonable, or are willing to substitute education for experience. For private-sector job openings you basically have to subtract three years from whatever amount of experience they say they require, because otherwise you’d never have anywhere you could apply to. (Federal government jobs are a weird case here; they all say they require a lot of experience at a specific government pay grade, but from talking with those who have dealt with the system before, they are apparently willing to make lots of substitutions—private-sector jobs, education, and even hobbies can sometimes substitute.)

I think this may be because the decentralized market has to some extent unraveled. The job market is the epitome of a matching market; unraveling in a matching market occurs when there is fierce competition for a small number of good candidates or, conversely, a small number of good openings. Each firm has the incentive to make a binding offer earlier than the others, with a short deadline so that candidates don’t have time to shop around. As firms compete with each other, they start making deadlines earlier and earlier until candidates feel like they are in a complete crapshoot: An offer made on Monday might be gone by Friday, and you have no way of knowing if you should accept it now or wait for a better one to come along. This is a Tragedy of the Commons: Given what other firms are doing, each firm benefits from making an earlier binding offer. But once they all make early offers, that benefit disappears and the result just makes the whole system less efficient.

The centralization of the AEA JOE market prevents this from happening: Everyone has common deadlines and does their interviews at the same time. Each institution may be tempted to try to break out of the constraints of the centralized market, but they know that if they do, they will be punished by receiving fewer applicants.

The fact that the centralized market is more efficient is likely a large part of why economics PhDs have the lowest unemployment rate of any PhD graduates and nearly the lowest unemployment rate of any job sector whatsoever. In some sense we should expect this: If anyone understands how to make employment work, it should be economists. Noah Smith wrote in 2013 (and I suppose I took it to heart): “If you get a PhD, get an economics PhD.” I think PhD graduates are the right comparison group here: If we looked at the population as a whole, employment rates and salaries for economists look amazing, but that isn’t really fair since it’s so much harder to become an economist than it is to get most other jobs. But I don’t think it’s particularly easier to get a PhD in physics or biochemistry than to get one in economics, and yet economists still have a lower unemployment rate than physicists or biochemists. (Though it’s worth noting that any PhD—yes, even in the humanities—will give you a far lower risk of unemployment than the general population.) The fact that we have AEA JOE and they don’t may be a major factor here.


So, here’s my question: Why don’t we do this in more job markets? It would be straightforward enough to do this for all PhD graduates, at least—actually my understanding is that some other disciplines do have centralized markets similar to the one in economics, but I’m not sure how common this is.

The federal government could relatively easily centralize its own job market as well; maybe not for positions that need to be urgently filled, but anything that can wait several months would be worth putting into a centralized system that has deadlines once or twice a year.

But what about the private sector, which after all is where most people work? Could we centralize that system as well?

It’s worth noting the additional challenges that immediately arise: Many positions need to be filled immediately, and centralization would make that impossible. There are thousands of firms that would need to be coordinated (there are at least 100,000 firms in the US with 100 or more employees). There are millions of different jobs to be filled, requiring a variety of different skills. In an average month over 5 million jobs are filled in the United States.

Most people want a job near where they live, so part of the solution might be to centralize only jobs within a certain region, such as a particular metro area. But if we are limited to open positions of a particular type within a particular city, there might not be enough openings at any given time to be worth centralizing. And what about applicants who don’t care so much about geography? Should they be applying separately to each regional market?

Yet even with all this in mind, I think some degree of centralization would be feasible and worthwhile. If nothing else, I think standardizing deadlines and application materials could make a significant difference—it’s far easier to apply to many places if they all use the same application and accept them at the same time.

Another option would be to institute widespread active labor market policies, which are a big part of why #ScandinaviaIsBetter. Denmark especially invests heavily in such programs, which provide training and job matching for unemployed citizens. It is no coincidence that Denmark has kept their unemployment rate under 7% even through the worst of the Great Recession. The US unemployment rate fluctuates wildly with the business cycle, while most of Europe has steadier but higher unemployment. Indeed, the lowest unemployment rates in France over the last 30 years have exceeded the highest rates in Denmark over the same period. Denmark spends a lot on their active labor market programs, but I think they’re getting their money’s worth.

Such a change would make our labor markets more efficient, matching people to jobs that fit them better, increasing productivity and likely decreasing turnover. Wages probably wouldn’t change much, but working in a better job for the same wage is still a major improvement in your life. Indeed, job satisfaction is one of the strongest predictors of life satisfaction, which isn’t too surprising given how much of our lives we spend at work.

Reasons to like Joe Biden

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

Sep 6 JDN 2459099

Maybe it’s because I follow too many radical leftists on social media (this is at least a biased sample, no doubt), but I’ve seen an awful lot of posts basically making this argument: “Joe Biden is terrible, but we have to elect him, because Donald Trump is worse.”

And make no mistake: Whatever else you think about this election, the fact that Donald Trump is a fascist and Joe Biden is not is indeed a fully sufficient reason to vote for Biden. You shouldn’t need any more than that.

But in fact Joe Biden is not terrible. Yes, there are some things worth criticizing about his record and his platform—particularly with regard to civil liberties and war (both of those links are to my own posts making such criticisms of the Obama administration). I don’t want to sweep these significant flaws under the rug.

Yet, there are also a great many things that are good about Biden and his platform, and it’s worthwhile to talk about them. You shouldn’t feel like you are holding your nose and voting for the lesser of two evils; Biden is going to make a very good President.

First and foremost, there is his plan to invest in clean energy and combat climate change. For the first time in decades, we have a Presidential candidate who is explicitly pro-nuclear and has a detailed, realistic plan for achieving net-zero carbon emissions within a generation. We should have done this 30 years ago; but far better to start now than to wait even longer.

Then there is Biden’s plan for affordable housing. He wants to copy California’s Homeowner Bill of Rights at the federal level, fight redlining, expand Section 8, and nationalize the credit rating system. Above all, he wants to create a new First Down Payment Tax Credit that will provide first-time home buyers with $15,000 toward a down payment on a home. That is how you increase homeownership. The primary reason why people rent instead of owning is that they can’t afford the down payment.

Biden is also serious about LGBT rights, and wants to pass the Equality Act, which would finally make all discrimination based on sexual orientation or gender identity illegal at the federal level. He has plans to extend and aggressively enforce federal rules protecting people with disabilities. His plans for advancing racial equality seem to be thoroughly baked into all of his proposals, from small business funding to housing reform—likely part of why he’s so popular among Black voters.

His plan for education reform includes measures to equalize funding between rich and poor districts and between White and non-White districts.

Biden’s healthcare plan isn’t quite Medicare For All, but it’s actually remarkably close to that. He wants to provide a public healthcare option available to everyone, and also lower the Medicare eligibility age to 60 instead of 65. This means that anyone who wants Medicare will be able to buy into it, and also sets a precedent of lowering the eligibility age—remember, all we really need to do to get Medicare For All is lower that age to 18. Moreover, it avoids forcing people off private insurance that they like, which is the main reason why Medicare For All still does not have majority support.

While many on the left have complained that Biden believes in “tough on crime”, his plan for criminal justice reform actually strikes a very good balance between maintaining low crime rates and reducing incarceration and police brutality. The focus is on crime prevention instead of punishment, and it includes the elimination of all federal use of privatized prisons.

Most people would give lip service to being against domestic violence, but Biden has a detailed plan for actually protecting survivors and punishing abusers—including ratifying the Equal Rights Amendment and ending the rape kit backlog. The latter is an utter no-brainer. If we need to, we can pull the money from just about any other form of law enforcement (okay, I guess not homicide); those rape kits need to be tested and those rapists need to be charged.

Biden also has a sensible plan for gun control, which is consistent with the Second Amendment and Supreme Court precedent but still could provide substantial protections by reinstating the ban on assault weapons and high-capacity magazines, requiring universal background checks, and adding other sensible restrictions on who can be licensed to own firearms. It won’t do much about handguns or crimes of passion, but it should at least reduce mass shootings.

Biden doesn’t want to implement free four-year college—then again, neither do I—but he does have a plan for free community college and vocational schooling.

He also has a very ambitious plan for campaign finance reform, including a Constitutional Amendment that would ban all private campaign donations. Honestly if anything the plan sounds too ambitious; I doubt we can really implement all of these things any time soon. But if even half of them get through, our democracy will be in much better shape.

His immigration policy, while far from truly open borders, would reverse Trump’s appalling child-separation policy, expand access to asylum, eliminate long-term detention in favor of a probation system, and streamline the path to citizenship.

Biden’s platform is the first one I’ve seen that gives detailed plans for foreign aid and international development projects; he is particularly focused on Latin America.

I’ve seen many on the left complain that Biden was partly responsible for the current bankruptcy system that makes it nearly impossible to discharge student loans; well, his current platform includes a series of reforms developed by Elizabeth Warren designed to reverse that.

I do think Biden is too hawkish on war and not serious enough about protecting civil liberties—and I said the same thing about Obama years ago. But Biden isn’t just better than Trump (almost anyone would be better than Trump); he’s actually a genuinely good candidate with a strong, progressive platform.

You should already have been voting for Biden anyway. But hopefully now you can actually do it with some enthusiasm.

This attack on the postal service must not stand

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

Aug 23 JDN 2459085

Trump has done so many unprecedented and terrible things that we can become numbed by it all, unable to process each new offense because we are already overwhelmed by the others. Perhaps this is a kind of strategy on his part: Keep doing so many outrageous things that we lose our capacity to be outraged. Already it is fair to say that at least half of the 160,000 (and counting) Americans killed by COVID-19 would still be alive if a better President had been in office.

But the attack on the US Postal Service deserves particular attention, because the disruption of mail-in voting during a pandemic could radically alter the results of the election. Indeed, Trump has all but said that this was his goal in defunding the post office.

Trump has long hated the postal service (perhaps because it is a clear example of federal government doing things well and helping people), but his full-scale war upon it started with the appointment of Louis DeJoy as Postmaster General, whose main qualifications appear to be that he has given millions of dollars to Republican campaigns and hates everything the post office stands for. I am quite certain that if there were a Director of Henhouse Affairs, Trump would appoint the Fantastic Mr. Fox.

The White House chief of staff claims that there have been no mail sorting machines decommissioned aside from those that were normally scheduled for replacement. Yet it’s easy to find a number of different sources claiming that there have been far more machines shut down than usual. Postal workers have also spoken out about other kinds of restructuring in the postal system that claim to be about “reducing costs” but seem to be systematically impairing the speed and reliability of service.

Trump claims that mail-in voting is insecure, which has a kernel of truth: Mail-in voting certainly doesn’t have the ironclad security against fraud that in-person voting has. (Unlike in-person voter fraud, mail-in voter fraud actually exists.) But not only is his concern obviously overblown, the USPS has even taken measures to upgrade their security using blockchain encryption. Bitcoin has always been a stupid idea (though a very lucrative one for anyone who bought in early), but blockchain does have some major advantages for voting security, because it is one of the few ways to make a remote system that is simultaneously secure and anonymous. Indeed, I think blockchain encryption (combined with more standard SSL encryption that most web pages already use) might well be a way to implement full-scale online voting—though surely not in time for this election.

The US Postal Service is the most popular federal agency in the United States, followed by the CDC, the Census Bureau, and the Department of Health and Human Services, all of which deservedly have strong bipartisan majority support among voters. It may surprise you to learn that the Department of Homeland Security, the IRS, and the Department of Justice also have strong majority support—though with substantial partisan differences. The most divisive federal agency is ICE, which is beloved by Republicans but hated by Democrats.

Some 91% of Americans approve of the USPS—and why shouldn’t they? It is objectively rated one of the best postal systems in the world—and if anything this isn’t even fair, because most of the other top-rated postal services, particularly Switzerland, the Netherlands, and Singapore, have far smaller areas to cover than the US does. If we restrict ourselves to countries of at least 10 million people and territory of at least 100,000 square kilometers, there are only four postal services rated higher than the US: Japan, Germany, France, and Poland. If we restrict to countries of at least 100 million people, only Japan remains.

Thus, attacking the postal service is clearly not a winning proposition if your goal is to advance the interests of your constituents or even gain more votes. But during a pandemic, mail-in voting is likely to be—and well should be—a very large proportion of all votes. Sabotaging the mail system is a highly effective way to make it much harder to vote in general. And that seems to very much be Trump’s intention.

It is a general pattern that when voting gets harder, Republicans become more likely to win. Liberal voters are more likely to be young adults, poor people, or people of color, all of whom generally have a harder time making it to the polls. This may be less true in this election in particular, because against Trump in particular people who are highly educated and live in cities have been far more likely to vote against Trump—and these are groups of people with particularly high voter turnout. Empirical estimates of how a switch to mail-in voting will affect the election results have been highly ambiguous.

Indeed, perhaps this makes the Republican vote suppression campaign even more sinister: Perhaps they have moved beyond simply trying to tilt the scales in elections and are now willing to actively suppress democracy itself. It sounds radical, if not outright crazy, to assert such a thing—but many of the things that Trump and his Republican lackeys have done would have sounded crazy to me just a few years ago. I can’t believe I’m saying this, but I honestly don’t know that Trump will concede defeat when he loses the election—he may refuse to accept the election results and try to stay in office via some sort of coup d’etat. Why do I think this could happen? Because he said so himself on national television. Vladimir Putin must be so embarrassed; his protege doesn’t even know how to be subtle about his authoritarianism.

FiveThirtyEight is currently giving Biden a 72% chance of victory, which is about 27% too low for my taste. That isn’t much better than the margin Hillary Clinton had four years ago. We can only hope that Trump attacking the most popular agency in our federal government will tilt those odds a little further.

This is not just about selfishness

PNRJ current events, ethics, public policy , , , , , ,

Aug 2 JDN 2459064

The Millennial term is “Karen”: someone (paradigmatically a middle-aged White woman) who is so privileged, so self-centered, and has such an extreme sense of entitlement, that they are willing to make others suffer in order to avoid the slightest inconvenience.

I recently saw a tweet (which for some reason has been impossible to find; I think I must have misremembered its precise wording, because putting that in quotes in Google yields nothing) saying that Americans are not simply selfish, we are so selfish that we would gladly let others die to avoid mildly inconveniencing ourselves. Searching Twitter for “Americans are selfish” certainly yields plenty of results.

And it is tempting to agree with this, when it seems that re-opening the economy and so many people refusing to wear masks has given us far worse outcomes from COVID-19 than most other countries.

But this can’t be the whole story. Perhaps Americans are a bit more self-centered than other cultures, because of our history of libertarian individualism. But if we were truly so selfish we’d gladly let others die to avoid inconvenience, whence the fact that we donate more to charity than any other country in the world? I don’t simply mean total amount or per-capita dollars (though both of those are also true); I mean as a fraction of GDP Americans give more to charity than any other country, and by a wide margin.

How then do we explain that so many Americans are not wearing masks?

Well, first of all, most of us are wearing masks. The narrative about people not wearing masks has been exaggerated; the majority of Americans, including the majority of Republicans, agree that wearing masks is a matter of public health rather than personal choice. There are some people who refuse to wear masks, and each one adds a little bit more risk to us all; but it’s really not the case that Americans in general are refusing to wear masks.

But I think the most important failings here come from the top down. The Trump administration has handled the pandemic in an astonishingly poor way. First, they denied that it was even a serious problem. Then, they implemented only a half-hearted response. Then, they turned masks into a culture war. Then, they resisted the economic relief package and prevented it from being as large as it needed to me. At every step of the way, they have been at best utterly incompetent and at worst guilty of depraved indifference murder.

From denying it was a problem, to responding too slowly, to disparaging mask use, to pushing to re-open the economy too soon, at every step of the way our government has made things worse. Above all, a better economic relief package—like what most other First World countries have done—would have done a great deal to reduce the harm of lockdowns, and would have made re-opening the economy far less popular.

Republican-led states have followed the President’s lead, refusing to implement even basic common-sense protections. But even Democrat-led states have suffered greatly as well. New York and California have some of the most cases, though this is surely in part because they are huge states with highly urbanized populations that get a lot of visitors and trade from other places. The trajectory of infections looks worst in Lousiana and Missouri, surely among the most conservative of states; but it also looks quite bad in New Jersey and Hawaii, which are among the most liberal.

I think what this shows us is that America lacks coordination. Despite having United in our name and E pluribus unum as our motto (“In God We Trust” was a Cold War change to spite the Soviets), what we lack most of all is unity. Viruses do not respect borders or jurisdictions. More than perhaps any other issue aside from climate change, fighting a pandemic requires a unified, coordinated response—and that is precisely what we did not have.

In some ways the pluralism of the United States can be a great strength; but this year, it was very much a weakness. And as the many crises around us continue, I fear we grow only more divided.

The Race to the Bottom is not inevitable

PNRJ development economics, ethics, inequality, macroeconomics, market failure, public policy , , , , , , , , , , , , , , , , , , , ,

Jul 19 JDN 2459050

The race to the bottom is a common result of competition, between firms, between states, or even between countries. One firm finds a way to cut corners and reduce costs, then lowers their price to undercut others; then soon every firm is cutting those same corners. Or one country decides to weaken their regulations in order to attraction more business; then soon every other country has to weaken their regulations as well.

Let’s first consider individual firms. Suppose that you run a business, and you are an upstanding, ethical person. You want to treat your employees, your customers, and your community well. You have high labor standards, you exceed the requirements of environmental regulations, and you make a high-quality product at a reasonable price for a moderate profit.

Then, a competitor appears. The owner of this company is not so ethical. They exploit their workers, perhaps even stealing their wages. They flaunt environmental regulations. They make shoddy products. All of this allows them to make their products for a lower price than yours.

Suppose that most customers can’t tell the difference between your product and theirs. What will happen? They will stop buying yours, because it’s more expensive. What do you do then?

You could simply go out of business. But that doesn’t really solve anything. Probably you’ll be forced to lower your standards. You’ll treat your workers worse, pollute more, reduce product quality. You may not do so as much as the other company, but you’ll have to do it some in order to get the price down low enough to still compete. And your profits will be lower than theirs as a result.

Far better would be for the government to step in and punish that other business for breaking the rules—or if what they’re doing is technically legal, change the rules so that it’s not anymore. Then you could continue to produce high-quality products with fair labor standards and good environmental sustainability.

But there are some problems with this. First, consider this from the point of view of a regulator, who is being lobbied by both companies. Your company asks for higher standards to improve product quality while protecting workers and the environment. But theirs claims that these higher standards will push them out of business. Who will they believe?

In fact, it may be worse than that: Suppose we’ve already settled into an equilibrium where all the firms have low standards. In that case, all the lobbyists will be saying that regulations need to be kept weak, lest the whole industry fail.

But in fact there’s no reason to think that stricter regulations would actually destroy the whole industry. Firm owners are used to thinking in terms of fixed competitors: They act in response to what competitors do. And in many cases it’s actually true that if just one firm tried to raise their standards, they would be outcompeted and go out of business. This does not mean that if all firms were forced to raise their standards, the industry would collapse. In fact, it’s much more likely that stricter regulations would only moderately reduce output and profits, if imposed consistently across the whole industry.

To see why, let’s consider a very simple model, a Bertrand competition game. There are two firms, A and B. Each can either use process H, producing a product of high quality with high labor standards and good sustainability, or use process L, producing a product of low quality with low labor standards and poor sustainability. Process H costs $100 per unit, process L costs $50 per unit. Customers can’t tell the difference, so they will buy whichever product is offered at the lowest price. Let’s say you are in charge of firm A. You choose which process to use, and set your price. At the same time, firm B chooses a process and sets their price.

Suppose choose to use process H. The lowest possible price you could charge to still make a profit would be a price of $101 (ignoring cents; let’s say customers also ignore them, which might be true!).

But firm B could choose process L, and then set a price of $100. They can charge just one dollar less than you charge for their product, but their cost is only $50, so now they are making a large profit—and you get nothing.

So you are forced to lower your standards, in order to match their price. You could try to undercut them at a price of $100, but in the long run that’s a bad idea, since eventually you’ll both be driven to charging a price of 51 and making only a very small profit. And there’s a way to stop them from undercutting you, which is to offer a price-matching guarantee; you can tell your customers that if they see a lower price from firm B than what you’re offering, you’ll match it for them. Then firm B has no incentive to try to undercut you, and you can maintain a stable equilibrium at a price of $100. You have been forced to used process L even though you know it is worse, because any attempt to unilaterally deviate from that industry norm would result in your company going bankrupt.

But now suppose the government comes in and mandates that all firms use process H, and they really enforce this rule so that no firm wants to try to break it. Then you’d want to raise the price, but you wouldn’t necessarily have to raise it all that much. Even $101 would be enough to ensure some profit, and you could even maintain your current profits by raising the price up to $150. In reality the result would probably be somewhere in between those two, depending on the elasticity of demand; so perhaps you end up charging $125 and make half the profit you did before.

Even though the new regulation raised costs all the way up to the current price, they did not result in collapsing the industry; because the rule was enforced uniformly, all firms were able to raise their standards and also raise their prices. This is what we should typically expect to happen; so any time someone claims that a new regulation will “destroy the industry” we should be very skeptical of that claim. (It’s not impossible; for instance, a regulation mandating that all fast food workers be paid $200 per hour would surely collapse the fast food industry. But it’s very unlikely that anyone would seriously propose a regulation like that.)

So as long as you have a strong government in place, you can escape the race to the bottom. But then we must consider international competition: What if other countries have weaker regulations, and so firms want to move their production to those other countries?

Well, a small country may actually be forced to lower their standards in order to compete. I’m not sure there’s much that Taiwan or Singapore could do to enforce higher labor standards. If Taiwan decided to tighten all their labor regulations, firms might just move their production to Indonesia or Vietnam. Then again, monthly incomes in Taiwan, once adjusted for currency exchange rates, are considerably higher than those in Vietnam. Indeed, wages in Taiwan aren’t much lower than wages in the US. So apparently Taiwan has some power to control their own labor standards—perhaps due to their highly educated population and strong industrial infrastructure.

However, a large country like the US or China absolutely has more power than that. If the US wants to enforce stricter labor standards, they can simply impose tariffs on countries that don’t. Actually there are many free-trade rules in place precisely to reduce that power, because it can be easily abused in the service of protectionism.

Perhaps these rules go too far; while I agree with the concern about protectionism, I definitely think we should be doing more to enforce penalties for forced labor, for instance. But this is not the result of too little international governance—if anything it is the result of too much. Our free trade agreements are astonishingly binding, even on the most powerful countries (China has successfully sued the United States under WTO rules!). I wish only that our human rights charters were anywhere near as well enforced.

This means that the race to the bottom is not the inevitable result of competition between firms or even between countries. When it occurs, it is the result of particular policy regimes nationally or internationally. We can make better rules.

The first step may be to stop listening to the people who say that any change will “destroy the industry” because they are unable (or unwilling?) to understand how uniformly-imposed rules differ from unilateral deviations from industry norms.

“The Patriarchy” is not a thing

PNRJ core principles, current events, ethics, public policy , , , ,

Jun 28 JDN 2459030

It’s really mainly a coincidence that I am writing this post on Father’s Day; working at home and almost never going out due to the pandemic, I have become unmoored from the normal passage of time. It’s a wonder I can remember it’s Sunday. But it is at least a bit ironic, since the word “patriarchy” comes from the Latin word pater meaning “father”.

A great deal of feminist discourse references “The Patriarchy”: Examples are included as links in this sentence from a variety of different sources.

This is a problem, because “The Patriarchy” plainly does not exist.

Am I saying that patriarchy doesn’t exist? Of course not. Patriarchy plainly exists. What I’m saying is that there is no one single source “The Patriarchy“.

China and Japan are both extremely patriarchial societies. They have fought wars with one another dozens of times. Saudi Arabia and Iran are both extremely patriarchal. They hate each other and have likewise fought numerous wars.

Indeed, nearly every human society is to some degree patriarchal; and yet, somehow we seem to be in conflict with one another quite frequently. If patriarchy all stemmed from some common source “The Patriarchy”, such a result would be baffling: If we’re all following the same ruler, how can we fight each other so much? Whoever is running this conspiracy is doing a really awful job!

Yes, there are common elements between the various forms of patriarchy in different societies—otherwise, we wouldn’t recognize them all as patriarchy. But there are also substantial differences. Nearly all societies regulate how women must dress, but precisely what women are expected to wear varies a great deal. Nearly all societies put more men in positions of power than women, but the degree to which this is true runs a wide gamut.

Patriarchy is like authoritarianism, or fanaticism, or corruption; yes, obviously authoritarianism, fanaticism, and corruption exist, and are important forces in the world. But there are no such things as “The Authoritarianism”, “The Fanaticism”, or “The Corruption”. There is no single unified source of these things. Indeed, authoritarians are often at each other’s throats, fanatics fight with other fanatics all the time, and those who are corrupt have no qualms about exploiting others who are corrupt.

Is this important? Perhaps it’s just a provocative turn of phrase, and I’m being overly pedantic.

But I do think it’s important, for the following reasons.

Many feminists who use the phrase “The Patriarchy” really do seem to think that all patriarchial ideas, beliefs, norms, attitudes, and behaviors stem from some common root, as the following quotes attest:

Only “patriarchy” seems to capture the peculiar elusiveness of gendered power – the idea that it does not reside in any one site or institution, but seems spread throughout the world. Only “patriarchy” seems to express that it is felt in the way individual examples of gender inequality interact, reinforcing each other to create entire edifices of oppression.

~Charlotte Higgins, The Guardian

I’m not angry because I hate men. I’m not even angry at men. I’m angry at the system that, for the lack of a better term, most people refer to as the patriarchy.

~Anne Theriaut, The Good Men Project

Remember in “Terminator 2” how the bad terminator kept getting smashed and shattered and ripped apart, but it didn’t matter? He just kept re-emerging, rising from the ashes, as an unstoppable force. Now imagine that terminator is a vessel to keep power, wealth and status in the hands of men — that’s the patriarchy. It can feel indestructible, coming back ever stronger despite seemingly endless efforts to smash it.

~Maya Salam, The New York Times

If you imagine that there is such a thing as “The Patriarchy”, it gives you the sense that you have just one enemy to fight. It makes the world simple and comprehensible. There’s a lot of psychological appeal in that kind of worldview. But it also makes you miss a great deal of the real complexity and nuance in the world. You have reified the concept.

Such a simplistic worldview might motivate you to fight harder against patriarchy, which would be a good thing. But then again, it could actually sap your motivation, by making it seem like you have a single implacable enemy that controls the entire world and has throughout history. If there is such a thing as “The Patriarchy”, then its power must be tremendous; perhaps we have weakened its hold upon the world, but could we ever hope to completely defeat it? (I made a similar point in an old post about how acknowledging progress is vital in order to make more progress.)

Moreover, thinking that all patriarchy stems from the same source could cause you to misdiagnose problems and fail to notice solutions that would otherwise be readily available. If you go around thinking that any disparity between how men and women are treated must be the result of some global phenomenon called “The Patriarchy”, you may not think to try simple fixes like blinded auditions or revising or eliminating student evaluations. You may assume that sexism is around ever corner when often the real causes are nepotism and network effects.

Slate Star Codex made a similar point about racism in an excellent post called “Murderism”. If your view of the world is that all bad things (or even all bad things in a broad class like “racism” or “sexism”) must stem from the same source, you will be unable to analyze the real nuances of what causes problems and thus be powerless to fix them.

Yes, of course patriarchy exists; and it’s important. But it comes in many different kinds, and many difference degrees, and policies that amelioriate it in some contexts may be ineffective—or even counterproductive—in others. This is why I say that it’s dangerous to use a phrase like “The Patriarchy”—for patriarchy isn’t a thing, it’s many things.

No, unemployment doesn’t kill people

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

Jun 14 JDN 2459015

Some people have argued that lockdown measures were unnecessary, or ineffective. The data definitely leans the other direction, but there’s enough uncertainty in all this that I can at least consider that a serious possibility. That doesn’t mean we were wrong to use them; in the presence of high uncertainty, assuming the worst-case scenario is often the best strategy. Far better to overreact than underreact. And indeed, I’d say that right now we still can’t be confident enough that things are safe to really re-open most of the economy. Re-opening too early could make things far worse.

There’s another argument for re-opening the economy which seems far more seductive: What about the people harmed by the lockdowns? This massive unemployment is terrible too, isn’t it? In fact, what if we’re killing more people by unemployment than we are saving from the virus? The Mises Institute warns: “Unemployment Kills”. Others have speculated that the recession could cause more deaths than the virus.

But in fact, unemployment does not kill. The evidence on this is quite clear. Even in the Great Depression, with massive unemployment, terrible monetary policy, and only the most minimal social welfare measures in place, death rates did not increase. In fact, for all causes except suicide, death rates decrease during recessions—probably because pollution, traffic accidents, and work-related injury and illness go down. And the suicide rate increase isn’t enough to increase the overall death rate.

Of course, dying by suicide is not the same thing as dying from cancer—and indeed, they are most likely different people being affected in each case. So in that sense unemployment can kill people; but it typically saves more people than it kills. Almost any policy choice will cause some deaths and prevent others, so really the best we can do is look at the overall aggregate and see whether our QALY have gone up or down.

This doesn’t mean that we should go out of our way to have recessions in order to save lives; the number of lives saved is small and the loss in quality of life is probably large enough to compensate for it. (That’s why we use quality-adjusted life years after all.) But this recession isn’t arbitrary; it’s the result of trying to stop a global pandemic, so that we don’t have a repeat of what influenza did in 1918.


When the CDC says it’s okay to open back up, by all means, let’s do that. They have issued guidelines for what we need to do in order to make that happen. But until then, let’s trust in the experts—the epidemiologists who say that we still need lockdown measures, and the economists who agree that it’s worth the cost.

Moral disagreement is not bad faith

PNRJ cognitive science, core principles, current events, public policy , , , , , , , , , , , , , ,

Jun 7 JDN 2459008

One of the most dangerous moves to make in an argument is to accuse your opponent of bad faith. It’s a powerful, and therefore tempting, maneuver: If they don’t even really believe what they are saying, then you can safely ignore basically whatever comes out of their mouth. And part of why this is so tempting is that it is in fact occasionally true—people do sometimes misrepresent their true beliefs in various ways for various reasons. On the Internet especially, sometimes people are just trolling.

But unless you have really compelling evidence that someone is arguing in bad faith, you should assume good faith. You should assume that whatever they are asserting is what they actually believe. For if you assume bad faith and are wrong, you have just cut off any hope of civil discourse between the two of you. You have made it utterly impossible for either side to learn anything or change their mind in any way. If you assume good faith and are wrong, you may have been overly charitable; but in the end you are the one that is more likely to persuade any bystanders, not the one who was arguing in bad faith.

Furthermore, it is important to really make an effort to understand your opponent’s position as they understand it before attempting to respond to it. Far too many times, I have seen someone accused of bad faith by an opponent who simply did not understand their worldview—and did not even seem willing to try to understand their worldview.

In this post, I’m going to point out some particularly egregious examples of this phenomenon that I’ve found, all statements made by left-wing people in response to right-wing people. Why am I focusing on these? Well, for one thing, it’s as important to challenge bad arguments on your own side as it is to do so on the other side. I also think I’m more likely to be persuasive to a left-wing audience. I could find right-wing examples easily enough, but I think it would be less useful: It would be too tempting to think that this is something only the other side does.

Example 1: “Republicans Have Stopped Pretending to Care About Life”

The phrase “pro-life” means thinking that abortion is wrong. That’s all it means. It’s jargon at this point. The phrase has taken on this meaning independent of its constituent parts, just as a red herring need not be either red or a fish.

Stop accusing people of not being “truly pro-life” because they don’t adopt some other beliefs that are not related to abortion. Even if those would be advancing life in some sense (most people probably think that most things they think are good advance life in some sense!), they aren’t relevant to the concept of being “pro-life”. Moreover, being “pro-life” in the traditional conservative sense isn’t even about minimizing the harm of abortion or the abortion rate. It’s about emphasizing the moral wrongness of abortion itself, and often even criminalizing it.


I don’t think this is really so hard to understand. If someone truly, genuinely believes that abortion is murdering a child, it’s quite clear why they won’t be convinced by attempts at minimizing harm or trying to reduce the abortion rate via contraception or other social policy. Many policies are aimed at “reducing the demand for abortion”; would you want to “reduce the demand for murder”? No, you’d want murderers to be locked up. You wouldn’t care what their reasons were, and you wouldn’t be interested in using social policies to address those reasons. It’s not even hard to understand why this would be such an important issue to them, overriding almost anything else: If you thought that millions of people were murdering children you would consider that an extremely important issue too.

If you want to convince people to support Roe v. Wade, you’re going to have to change their actual belief that abortion is murder. You may even be able to convince them that they don’t really think abortion is murder—many conservatives support the death penalty for murder, but very few do so for abortion. But they clearly do think that abortion is a grave moral wrong, and you can’t simply end-run around that by calling them hypocrites because they don’t care about whatever other issue you think they should care about.

Example 2: “Stop pretending to care about human life if you support wars in the Middle East”

I had some trouble finding the exact wording of the meme I originally saw with this sentiment, but the gist of it was basically that if you support bombing Afghanistan, Libya, Iraq, and/or Syria, you have lost all legitimacy to claiming that you care about human life.

Say what you will about these wars (though to be honest I think what the US has done in Libya and Syria has done more good than harm), but simply supporting a war does not automatically undermine all your moral legitimacy. The kind of radical pacifism that requires us to never kill anyone ever is utterly unrealistic; the question is and has always been “Which people is it okay to kill, when and how and why?” Some wars are justified; we have to accept that.

It would be different if these were wars of genocidal extermination; I can see a case for saying that anyone who supported the Holocaust or the Rwandan Genocide has lost all moral legitimacy. But even then it isn’t really accurate to say that those people don’t care about human life; it’s much more accurate to say that they have assigned the group of people they want to kill to a subhuman status. Maybe you would actually get more traction by saying “They are human beings too!” rather than by accusing people of not believing in the value of human life.

And clearly these are not wars of extermination—if the US military wanted to exterminate an entire nation of people, they could do so much more efficiently than by using targeted airstrikes and conventional warfare. Remember: They have nuclear weapons. Even if you think that they wouldn’t use nukes because of fear of retaliation (Would Russia or China really retaliate using their own nukes if the US nuked Afghanistan or Iran?), it’s clear that they could have done a lot more to kill a lot more innocent people if that were actually their goal. It’s one thing to say they don’t take enough care not to kill innocent civilians—I agree with that. It’s quite another to say that they actively try to kill innocent civilians—that’s clearly not what is happening.

Example 3: “Stop pretending to be Christian if you won’t help the poor.”

This one I find a good deal more tempting: In the Bible, Jesus does spend an awful lot more words on helping the poor than he does on, well, almost anything else; and he doesn’t even once mention abortion or homosexuality. (The rest of the Bible does at least mention homosexuality, but it really doesn’t have any clear mentions of abortion.) So it really is tempting to say that anyone who doesn’t make helping the poor their number one priority can’t really be a Christian.

But the world is more complicated than that. People can truly and deeply believe some aspects of a religion while utterly rejecting others. They can do this more or less arbitrarily, in a way that may not even be logically coherent. They may even honestly believe that every single word of the Bible to be the absolute perfect truth of an absolute perfect God, and yet there are still passages you could point them to that they would have to admit they don’t believe in. (There are literally hundreds of explicit contradictions in the Bible. Many are minor—though still undermine any claim to absolute perfect truth—but some are really quite substantial. Does God forgive and forget, or does he visit revenge upon generations to come? That’s kind of a big deal! And should we be answering fools or not?) In some sense they don’t really believe that every word is true, then; but they do seem to believe in believing it.

Yes, it’s true; people can worship a penniless son of a carpenter who preached peace and charity and at the same time support cutting social welfare programs and bombing the Middle East. Such a worldview may not be entirely self-consistent; it’s certainly not the worldview that Jesus himself espoused. But it nevertheless is quite sincerely believed by many millions of people.

It may still be useful to understand the Bible in order to persuade Christians to help the poor more. There are certainly plenty of passages you can point them to where Jesus talks about how important it is to help the poor. Likewise, Jesus doesn’t seem to much like the rich, so it is fair to ask: How Christian is it for Republicans to keep cutting taxes on the rich? (I literally laughed out loud when I first saw this meme: “Celebrate Holy Week By Flogging a Banker: It’s What Jesus Would Have Done!“) But you should not accuse people of “pretending to be Christian”. They really do strongly identify themselves as Christian, and would sooner give up almost anything else about their identity. If you accuse them of pretending, all that will do is shut down the conversation.

Now, after all that, let me give one last example that doesn’t fit the trend, one example where I really do think the other side is acting in bad faith.


Example 4: “#AllLivesMatter is a lie. You don’t actually think all lives matter.”

I think this one is actually true. If you truly believed that all lives matter, you wouldn’t post the hashtag #AllLivesMatter in response to #BlackLivesMatter protests against police brutality.

First of all, you’d probably be supporting those protests. But even if you didn’t for some reason, that isn’t how you would use the hashtag. As a genuine expression of caring, the hashtag #AllLivesMatter would only really make sense for something like Oxfam or UNICEF: Here are these human lives that are in danger and we haven’t been paying enough attention to them, and here, you can follow my hashtag and give some money to help them because all lives matter. If it were really about all lives mattering, then you’d see the hashtag pop up after a tsunami in Southeast Asia or a famine in central Africa. (For awhile I tried actually using it that way; I quickly found that it was overwhelmed by the bad faith usage and decided to give up.)

No, this hashtag really seems to be trying to use a genuinely reasonable moral norm—all lives matter—as a weapon against a political movement. We don’t see #AllLivesMatter popping up asking people to help save some lives—it’s always as a way of shouting down other people who want to save some lives. It’s a glib response that lets you turn away and ignore their pleas, without ever actually addressing the substance of what they are saying. If you really believed that all lives matter, you would not be so glib; you would want to understand how so many people are suffering and want to do something to help them. Even if you ultimately disagreed with what they were saying, you would respect them enough to listen.

The counterpart #BlueLivesMatter isn’t in bad faith, but it is disturbing in a different way: What are ‘blue lives’? People aren’t born police officers. They volunteer for that job. They can quit if want. No one can quit being Black. Working as a police officer isn’t even especially dangerous! But it’s not a bad faith argument: These people really do believe that the lives of police officers are worth more—apparently much more—than the lives of Black civilians.

I do admit, the phrasing “#BlackLivesMatter” is a bit awkward, and could be read to suggest that other lives don’t matter, but it takes about 2 minutes of talking to someone (or reading a blog by someone) who supports those protests to gather that this is not their actual view. Perhaps they should have used #BlackLivesMatterToo, but when your misconception is that easily rectified the responsibility to avoid it falls on you. (Then again, some people do seem to stoke this misconception: I was quite annoyed when a question was asked at a Democratic debate: “Do Black Lives Matter, or Do All Lives Matter?” The correct answer of course is “All lives matter, which is why I support the Black Lives Matter movement.”)

So, yes, bad faith arguments do exist, and sometimes we need to point them out. But I implore you, consider that a last resort, a nuclear option you’ll only deploy when all other avenues have been exhausted. Once you accuse someone of bad faith, you have shut down the conversation completely—preventing you, them, and anyone else who was listening from having any chance of learning or changing their mind.

The fable of the billionaires

PNRJ critique of neoclassical economics, inequality, market failure, public policy , , , , , , ,

May 31 JDN 2458999

There are great many distortions in real-world markets that cause them to deviate from the ideal of perfectly competitive free markets, and economists rightfully spend much of their time locating, analyzing, and mitigating such distortions.

But I think there is a general perception among economists, and perhaps among others as well, that if we could somehow make markets perfectly competitive and efficient, we’d be done; the world, or at least the market, would be just and fair and all would be good. And this perception is gravely mistaken. To make that clear to you, I offer a little fable.

Once upon a time, widgets were made by hand. One person, working for one eight-hour day, could make 100 widgets. Most people were employed making widgets full-time. The wage for making widgets was $1 per widget.

Then, an inventor came up with a way to automate the production of widgets. For $100 per day, the same cost to hire a worker to make 100 widgets, the machine could instead make 101 widgets.

Because it was 1% more efficient, businesses began adopting the new machine, and now made slightly more widgets than before. But some workers who had previously made widgets were laid off, while others saw their wages fall to only $0.99 per widget.


If there were more widgets, but fewer people were getting paid less to make them, where did the extra wealth go? To the inventor, of course, who now owns 10% of all widget production and has billions of dollars.

Later, another inventor came up with an even better machine, which could make 102 widgets in a day. And that inventor became a billionare too, while more became unemployed and wages fell to $0.98 per widget.

And then there was another inventor, and another, and another; and today the machines can make 200 widgets in a day and wages are only $0.50 per widget. We now have twice as many widgets as we used to have, and hundreds of billionaires; yet only half as many people now work making widgets as once did, and those who remain make only half of what they once did.

Was this market inefficient or uncompetitive? Not at all! In fact it was quite efficient: It delivered the most widgets for the least cost every step of the way. And the first round of billionaires didn’t get enough power to keep the next round from innovating even better and also becoming billionaires. No one stole or cheated to get where they are; the billionaires really made it to the top by being brilliant innovators who made the world more efficient.

Indeed, by the standard measures of economic surplus, the world has gotten better with each new machine. GDP has gone up, wealth has gone up. Yet millions of people are out of work, and millions more are making pitifully low wages. Overall the nation seems to be worse off, even though all the numbers keep saying things are getting better.

There are some relatively simple solutions to this problem: We could tax those billionaires, and use the money to provide public goods to everyone else; and then the added wealth from doubling our quantity of widgets would benefit everyone and not just the inventors who made it happen. Would that reduce the incentives to innovate? A little, perhaps; but it’s hard to believe that most people who would be willing to invent something for $1 billion wouldn’t be willing to do so for $500 million or even for $50 million. At some point that extra money really isn’t benefiting you all that much. And what’s the point of incentivizing innovation if it makes life worse for most of our population?

In the real world there are lots of other problems, of course. Corruption, regulatory capture, rent-seeking, collusion, and so on all make our markets less efficient than they could have been. But even if markets were efficient, it’s not clear that they would be fair or just, or that they would be making most people’s lives better.

Indeed, I’m not convinced that most billionaires really got where they are by being particularly innovative. I can appreciate the innovations made by Cisco and Microsoft, but what brilliant innovation underlies Facebook or Amazon? The Internet itself is a great innovation (largely created by DARPA and universities), but is using it to talk to people or sell things really such a great leap? Tesla and SpaceX are innovative, but they have largely been money pits for Elon Musk, who inherited a good chunk of his wealth and made most of the rest by owning shares in PayPal. Yet even if we suppose that all the billionaires got where they are by inventing things that made the economy more efficient, it’s still not clear that they deserve to keep that staggering wealth.

I think the fundamental problem is that we have mentally equated ‘value of marginal product’ with ‘what you rightfully earn’. But the former is dependent upon the rest of the market: Who you are competing with, what your customers want. You can work very hard and be very talented, but if you’re making something that people aren’t willing to pay for, you won’t make any money. And the fact that people won’t pay for something doesn’t mean it isn’t valuable: If you produce public goods, they could benefit many people a great deal but still not draw in profits. Conversely, the fact that something is profitable doesn’t necessarily make it valuable: It could just be a very effective method of rent-seeking.

I’m not saying we should do away with markets; they’re very useful, and they do have a lot of benefits. But we should acknowledge their limitations. We should be aware not only that real-world markets are not perfectly efficient, but also that even a perfectly efficient market wouldn’t make for the best possible world.

Failures of democracy or capitalism?

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

May 24 JDN 2458992

Blaming capitalism for the world’s woes is a common habit of the left wing in general, but it seems to have greatly increased in frequency and volume in the era of Trump. I don’t want to say that this is always entirely wrong; capitalism in its purest form certainly does have genuine flaws that need to be addressed (and that’s why we have taxes, regulations, the welfare state, etc.).

But I’ve noticed that a lot of the things people complain about most really don’t seem to have a lot to do with capitalism.

For instance: Forced labor in Third World countries? First of all, that’s been around for as long as civilization has existed, and quite probably longer. It’s certainly not new to capitalism. Second, the freedom to choose who you transact with—including who employs you—is a fundamental principle of capitalism. In that sense, forced labor is the very opposite of capitalism; it spits upon everything capitalism stands for.

It’s certainly the case that many multinational corporations are implicated in slavery, even today—usually through complex networks of subsidiaries and supply chains. But it’s not clear to me that socialism is any kind of solution to this problem; nationalized industries are perfectly capable of enslaving people. (You may have heard of a place called the Gulag?)

Or what about corporate welfare, the trillions of dollars in subsidies we give to the oil and coal industries? Well, that’s not very capitalist either; capitalism is supposed to be equal competition in a free market, not the government supporting particular businesses or industries at the expense of others. And it’s not like socialist Venezuela has any lack of oil subsidies—indeed it’s not quite clear to me where the government ends and PDVSA begins. We need a word for such policies that are neither capitalist nor socialist; perhaps “corporatist”?

And really, the things that worry me about America today are not flaws in our markets; they are flaws in our government. We are not witnessing a catastrophic failure of capitalism; we are witnessing a catastrophic failure of democracy.

As if the Electoral College weren’t bad enough (both Al Gore and Hillary Clinton should have won the Presidency, by any sensible notion of democratic voting!), we are now seeing extreme levels of voter suppression, including refusing to accept mail-in ballots in the middle of a historic pandemic. This looks disturbingly like how democracy has collapsed in other countries, such as Turkey and Hungary.

The first-past-the-post plurality vote is already basically the worst possible voting system that can still technically be considered democratic. But it is rendered far worse by a defective primary system, which was even more of a shambles this year than usual. The number of errors in the Iowa caucus was ridiculous, and the primaries as a whole suffered from so many flaws that many voters now consider them illegitimate.

And of course there’s Donald Trump himself. He is certainly a capitalist (though he’s not exactly a free-trade neoliberal; he’s honestly more like a mercantilist). But what really makes him dangerous is not his free-market ideology, which is basically consistent with the US right wing going back at least 30 years; it’s his willingness to flaunt basic norms of democracy and surround himself with corrupt, incompetent sycophants. Republicans have been cutting the upper tax brackets and subsidizing oil companies for quite some time now; but it’s only recently that they have so blatantly disregarded the guardrails of democracy.

I’m not saying it’s wrong to criticize capitalism. There certainly are things worth criticizing, particularly about the most extreme free-market ideology. But it’s important to be clear about where exactly problems lie if you want to fix them—and right now we desperately need to fix them. America is in a crisis right now, something much bigger than just this pandemic. We are not in this crisis because of an excessive amount of deregulation or tax-cutting; we are in this crisis because of an excessive amount of corruption, incompetence, and authoritarianism. We wouldn’t fix this by nationalizing industries or establishing worker co-ops. We need to fix it first by voting out those responsible, and second by reforming our system so that they won’t get back in.