Men and violence

Apr4 JDN 2459302

Content warning: In this post, I’m going to be talking about violence, including sexual violence. April is Sexual Assault Awareness and Prevention Month. I won’t go into any explicit detail, but I understand that discussion of such topics can still be very upsetting for many people.

After short posts for the past two weeks, get ready for a fairly long post. This is a difficult and complicated topic, and I want to make sure that I state things very clearly and with all necessary nuance.

While the overall level of violence between human societies varies tremendously, one thing is astonishingly consistent: Violence is usually committed by men.

In fact, violence is usually suffered by men as well—with the quite glaring exception of sexual violence. This is why I am particularly offended by claims like “All men benefit from male violence”; no, men who were murdered by other men did not benefit from male violence, and it is frankly appalling to say otherwise. Most men would be better off if male violence were somehow eliminated from the world. (Most women would also be much better off as well, of course.)

I therefore consider it both a matter of both moral obligation and self-interest to endeavor to reduce the amount of male violence in the world, which is almost coextensive with reducing the amount of violence in general.

On the other hand, ought implies can, and despite significant efforts I have made to seek out recommendations for concrete actions I could be taking… I haven’t been able to find very many.

The good news is that we appear to be doing something right—overall rates of violent crime have declined by nearly half since 1990. The decline in rape has been slower, only about 25% since 1990, though this is a bit misleading since the legal definition of rape has been expanded during that interval. The causes of this decline in violence are unclear: Some of the most important factors seem to be changes in policing, economic growth, and reductions in lead pollution. For whatever reason, Millennials just don’t seem to commit crimes at the same rates that Gen-X-ers or Boomers did. We are also substantially more feminist, so maybe that’s an important factor too; the truth is, we really don’t know.

But all of this still leaves me asking: What should I be doing?

When I searched for an answer to this question, a significant fraction of the answers I got from various feminist sources were some variation on “ruminate on your own complicity in male violence”. I tried it; it was painful, difficult—and basically useless. I think this is particularly bad advice for someone like me who has a history of depression.

When you ruminate on your own life, it’s easy to find mistakes; but how important were those mistakes? How harmful were they? I can’t say that I’ve never done anything in my whole life that hurt anyone emotionally (can anyone?), but I can only think of a few times I’ve harmed someone physically (mostly by accident, once in self-defense). I’ve definitely never raped or murdered anyone, and as far as I can tell I’ve never done anything that would have meaningfully contributed to anyone getting raped or murdered. If you were to somehow replace every other man in the world with a copy of me, maybe that wouldn’t immediately bring about a utopian paradise—but I’m pretty sure that rates of violence would be a lot lower. (And in this world ruled by my clones, we’d have more progressive taxes! Less military spending! A basic income! A global democratic federation! Greater investment in space travel! Hey, this sounds pretty good, actually… though inbreeding would be a definite concern.) So, okay, I’m no angel; but I don’t think it’s really fair to say that I’m complicit in something that would radically decrease if everyone behaved as I do.

The really interesting thing is, I think this is true of most men. A typical man commits less than the average amount of violence—because there is great skew in the distribution, with most men committing little or no violence and a small number of men committing lots of violence. Truly staggering amounts of violence are committed by those at the very top of the distribution—that would be mass murderers like Hitler and Stalin. It sounds strange, but if all men in the world were replaced by a typical man, the world would surely be better off. The loss of the very best men would be more than compensated by the removal of the very worst. In fact, since most men are not rapists or murderers, replacing every man in the world with the median man would automatically bring the rates of rape and murder to zero. I know that feminists don’t like to hear #NotAllMen; but it’s not even most men. Maybe the reason that the “not all men” argument keeps coming up is… it’s actually kind of true? Maybe it’s not so unreasonable for men to resent the implication that we are complicit in acts we abhor that we have never done and would never do? Maybe this whole concept that an entire sex of people, literally almost half the human race, can share responsibility for violent crimes—is wrong?

I know that most women face a nearly constant bombardment of sexual harassment, and feel pressured to remain constantly vigilant in order to protect themselves against being raped. I know that victims of sexual violence are often blamed for their victimization (though this happens in a lot of crimes, not just sex crimes). I know that #YesAllWomen is true—basically all women have been in some way harmed or threatened by sexual violence. But the fact remains that most men are already not committing sexual violence. Many people seem to confuse the fact that most women are harmed by men with the claim that most men harm women; these are not at all equivalent. As long as one man can harm many women, there don’t need to be very many harmful men for all women to be affected.

Plausible guesses would be that about 20-25% of women suffer sexual assault, committed by about 4% or 5% of men, each of whom commits an average of 4 to 6 assaults—and some of whom commit far more. If these figures are right, then 95% of men are not guilty of sexual assault. The highest plausible estimate I’ve seen is from a study which found that 11% of men had committed rape. Since it’s only one study and its sample size was pretty small, I’m actually inclined to think that this is an overestimate which got excessive attention because it was so shocking. Larger studies rarely find a number above 5%.

But even if we suppose that it’s really 11%, that leaves 89%; in what sense is 89% not “most men”? I saw some feminist sites responding to this result by saying things like “We can’t imprison 11% of men!” but, uh, we almost do already. About 9% of American men will go to prison in their lifetimes. This is probably higher than it should be—it’s definitely higher than any other country—but if those convictions were all for rape, I’d honestly have trouble seeing the problem. (In fact only about 10% of US prisoners are incarcerated for rape.) If the US were the incarceration capital of the world simply because we investigated and prosecuted rape more reliably, that would be a point of national pride, not shame. In fact, the American conservatives who don’t see the problem with our high incarceration rate probably do think that we’re mostly incarcerating people for things like rape and murder—when in fact large portions of our inmates are incarcerated for drug possession, “public order” crimes, or pretrial detention.

Even if that 11% figure is right, “If you know 10 men, one is probably a rapist” is wrong. The people you know are not a random sample. If you don’t know any men who have been to prison, then you likely don’t know any men who are rapists. 37% of prosecuted rapists have prior criminal convictions, and 60% will be convicted of another crime within 5 years. (Of course, most rapes are never even reported; but where would we get statistics on those rapists?) Rapists are not typical men. They may seem like typical men—it may be hard to tell the difference at a glance, or even after knowing someone for a long time. But the fact that narcissists and psychopaths may hide among us does not mean that all of us are complicit in the crimes of narcissists and psychopaths. If you can’t tell who is a psychopath, you may have no choice but to be wary; but telling every man to search his heart is worthless, because the only ones who will listen are the ones who aren’t psychopaths.

That, I think, is the key disagreement here: Where the standard feminist line is “any man could be a rapist, and every man should search his heart”, I believe the truth is much more like, “monsters hide among us, and we should do everything in our power to stop them”. The monsters may look like us, they may often act like us—but they are not us. Maybe there are some men who would commit rapes but can be persuaded out of it—but this is not at all the typical case. Most rapes are committed by hardened, violent criminals and all we can really do is lock them up. (And for the love of all that is good in the world, test all the rape kits!)

It may be that sexual harassment of various degrees is more spread throughout the male population; perhaps the median man indeed commits some harassment at some point in his life. But even then, I think it’s pretty clear that the really awful kinds of harassment are largely committed by a small fraction of serial offenders. Indeed, there is a strong correlation between propensity toward sexual harassment and various measures of narcissism and psychopathy. So, if most men look closely enough, maybe they can think of a few things that they do occasionally that might make women uncomfortable; okay, stop doing those things. (Hint: Do not send unsolicited dick pics. Ever. Just don’t. Anyone who wants to see your genitals will ask first.) But it isn’t going to make a huge difference in anyone’s life. As long as the serial offenders continue, women will still feel utterly bombarded.

There are other kinds of sexual violations that more men commit—being too aggressive, or persisting too much after the first rejection, or sending unsolicited sexual messages or images. I’ve had people—mostly, but not only, men—do things like that to me; but it would be obviously unfair to both these people and actual rape victims to say I’d ever been raped. I’ve been groped a few times, but it seems like quite a stretch to call it “sexual assault”. I’ve had experiences that were uncomfortable, awkward, frustrating, annoying, occasionally creepy—but never traumatic. Never violence. Teaching men (and women! There is evidence that women are not much less likely than men to commit this sort of non-violent sexual violation) not to do these things is worthwhile and valuable in itself—but it’s not going to do much to prevent rape or murder.

Thus, whatever responsibility men have in reducing sexual violence, it isn’t simply to stop; you can’t stop doing what you already aren’t doing.

After pushing through all that noise, at last I found a feminist site making a more concrete suggestion: They recommended that I read a book by Jackson Katz on the subject entitled The Macho Paradox: Why Some Men Hurt Women and How All Men Can Help.

First of all, I must say I can’t remember any other time I’ve read a book that was so poorly titled. The only mention of the phrase “macho paradox” is a brief preface that was added to the most recent edition explaining what the term was meant to mean; it occurs nowhere else in the book. And in all its nearly 300 pages, the book has almost nothing that seriously addresses either the motivations underlying sexual violence or concrete actions that most men could take in order to reduce it.

As far as concrete actions (“How all men can help”), the clearest, most consistent advice the book seems to offer that would apply to most men is “stop consuming pornography” (something like 90% of men and 60% of women regularly consume porn), when in fact there is a strong negative correlation between consumption of pornography and real-world sexual violence. (Perhaps Millennials are less likely to commit rape and murder because we are so into porn and video games!) This advice is literally worse than nothing.

The sex industry exists on a continuum from the adult-only but otherwise innocuous (smutty drawings and erotic novels), through the legal but often problematic (mainstream porn, stripping), to the usually illegal but defensible (consensual sex work), all the way to the utterly horrific and appalling (the sexual exploitation of children). I am well aware that there are many deep problems with the mainstream porn industry, but I confess I’ve never quite seen how these problems are specific to porn rather than endemic to media or even capitalism more generally. Particularly with regard to the above-board sex industry in places like Nevada or the Netherlands, it’s not obvious to me that a prostitute is more exploited than a coal miner, a sweatshop worker, or a sharecropper—indeed, given the choice between those four careers, I’d without hesitation choose to be a prostitute in Amsterdam. Many sex workers resent the paternalistic insistence by anti-porn feminists that their work is inherently degrading and exploitative. Overall, sex workers report job satisfaction not statistically different than the average for all jobs. There are a multitude of misleading statistics often reported about the sex industry that often make matters seem far worse than they are.

Katz (all-too) vividly describes the depiction of various violent or degrading sex acts in mainstream porn, but he seems unwilling to admit that any other forms of porn do or even could exist—and worse, like far too many anti-porn feminists, he seems to willfully elide vital distinctions, effectively equating fantasy depiction with genuine violence and consensual kinks with sexual abuse. I like to watch action movies and play FPS video games; does that mean I believe it’s okay to shoot people with machine guns? I know the sophisticated claim is that it somehow “desensitizes” us (whatever that means), but there’s not much evidence of that either. Given that porn and video games are negatively correlated with actual violence, it may in fact be that depicting the fantasy provides an outlet for such urges and helps prevent them from becoming reality. Or, it may simply be that keeping a bunch of young men at home in front of their computers keeps them from going out and getting into trouble. (Then again, homicides actually increased during the COVID pandemic—though most other forms of crime decreased.) But whatever the cause, the evidence is clear that porn and video games don’t increase actual violence—they decrease them.

At the very end of the book, Katz hints at a few other things men might be able to do, or at least certain groups of men: Challenge sexism in sports, the military, and similar male-dominated spaces (you know, if you have clout in such spaces, which I really don’t—I’m an effete liberal intellectual, a paradigmatic “soy boy”; do you think football players or soldiers are likely to listen to me?); educate boys with more positive concepts of masculinity (if you are in a position to do so, e.g. as a teacher or parent); or, the very best advice in the entire book, worth more than the rest of the book combined: Donate to charities that support survivors of sexual violence. Katz doesn’t give any specific recommendations, but here are a few for you: RAINN, NAESV and NSVRC.

Honestly, I’m more impressed by Upworthy’s bulleted list of things men can do, though they’re mostly things that conscientious men do anyway, and even if 90% of men did them, it probably wouldn’t greatly reduce actual violence.

As far as motivations (“Why some men hurt women”), the book does at least manage to avoid the mindless slogan “rape is about power, not sex” (there is considerable evidence that this slogan is false or at least greatly overstated). Still, Katz insists upon collective responsibility, attributing what are in fact typically individual crimes, committed mainly by psychopaths, motivated primarily by anger or sexual desire, to some kind of institutionalized system of patriarchal control that somehow permeates all of society. The fact that violence is ubiquitous does not imply that it is coordinated. It’s very much the same cognitive error as “murderism”.

I agree that sexism exists, is harmful, and may contribute to the prevalence of rape. I agree that there are many widespread misconceptions about rape. I also agree that reducing sexism and toxic masculinity are worthwhile endeavors in themselves, with numerous benefits for both women and men. But I’m just not convinced that reducing sexism or toxic masculinity would do very much to reduce the rates of rape or other forms of violence. In fact, despite widely reported success of campaigns like the “Don’t Be That Guy” campaign, the best empirical research on the subject suggests that such campaigns actually tend to do more harm than good. The few programs that seem to work are those that focus on bystander interventions—getting men who are not rapists to recognize rapists and stop them. Basically nothing has ever been shown to convince actual rapists; all we can do is deny them opportunities—and while bystander intervention can do that, the most reliable method is probably incarceration. Trying to change their sexist attitudes may be worse than useless.

Indeed, I am increasingly convinced that much—not all, but much—of what is called “sexism” is actually toxic expressions of heterosexuality. Why do most creepy male bosses only ever hit on their female secretaries? Well, maybe because they’re straight? This is not hard to explain. It’s a fair question why there are so many creepy male bosses, but one need not posit any particular misogyny to explain why their targets would usually be women. I guess it’s a bit hard to disentangle; if an incel hates women because he perceives them as univocally refusing to sleep with him, is that sexism? What if he’s a gay incel (yes they exist) and this drives him to hate men instead?

In fact, I happen to know of a particular gay boss who has quite a few rumors surrounding him regarding his sexual harassment of male employees. Or you could look at Kevin Spacey, who (allegedly) sexually abused teenage boys. You could tell a complicated story about how this is some kind of projection of misogynistic attitudes onto other men (perhaps for being too “femme” or something)—or you could tell a really simple story about how this man is only sexually abusive toward other men because that’s the gender of people he’s sexually attracted to. Occam’s Razor strongly favors the latter.

Indeed, what are we to make of the occasional sexual harasser who targets men and women equally? On the theory that abuse is caused by patriarchy, that seems pretty hard to explain. On the theory that abusive people sometimes happen to be bisexual, it’s not much of a mystery. (Though I would like to take a moment to debunk the stereotype of the “depraved bisexual”: Bisexuals are no more likely to commit sexual violence, but are far more likely to suffer it—more likely than either straight or gay people, independently of gender. Trans people face even higher risk; the acronym LGBT is in increasing order of danger of violence.)

Does this excuse such behavior? Absolutely not. Sexual harassment and sexual assault are definitely wrong, definitely harmful, and rightfully illegal. But when trying to explain why the victims are overwhelmingly female, the fact that roughly 90% of people are heterosexual is surely relevant. The key explanandum here is not why the victims are usually female, but rather why the perpetrators are usually male.

That, indeed, requires explanation; but such an explanation is really not so hard to come by. Why is it that, in nearly every human society, for nearly every form of violence, the vast majority of that violence is committed by men? It sure looks genetic to me.

Indeed, in anyother context aside from gender or race, we would almost certainly reject any explanation other than genetics for such a consistent pattern. Why is it that, in nearly every human society, about 10% of people are LGBT? Probably genetics. Why is it that, in near every human society, about 10% of people are left-handed? Genetics. Why, in nearly every human society, do smiles indicate happiness, children fear loud noises, and adults fear snakes? Genetics. Why, in nearly every human society, are men on average much taller and stronger than women? Genetics. Why, in nearly every human society, is about 90% of violence, including sexual violence, committed by men? Clearly, it’s patriarchy.

A massive body of scientific evidence from multiple sources shows a clear casual relationship between increased testosterone and increased aggression. The correlation is moderate, only about 0.38—but it’s definitely real. And men have a lot more testosterone than women: While testosterone varies a frankly astonishing amount between men and over time—including up to a 2-fold difference even over the same day—a typical adult man has about 250 to 950 ng/dL of blood testosterone, while a typical adult woman has only 8 to 60 ng/dL. (An adolescent boy can have as much as 1200 ng/dL!) This is a difference ranging from a minimum of 4-fold to a maximum of over 100-fold, with a typical value of about 20-fold. It would be astonishing if that didn’t have some effect on behavior.

This is of course far from a complete explanation: With a correlation of 0.38, we’ve only explained about 14% of the variance, so what’s the other 86%? Well, first of all, testosterone isn’t the only biological difference between men and women. It’s difficult to identify any particular genes with strong effects on aggression—but the same is true of height, and nobody disputes that the height difference between men and women is genetic.

Clearly societal factors do matter a great deal, or we couldn’t possibly explain why homicide rates vary between countries from less than 3 per million per year in Japan to nearly 400 per million per year in Hondurasa full 2 orders of magnitude! But gender inequality does not appear to strongly predict homicide rates. Japan is not a very feminist place (in fact, surveys suggest that, after Spain, Japan is second-worst highly-developed country for women). Sweden is quite feminist, and their homicide rate is relatively low; but it’s still 4 times as high as Japan’s. The US doesn’t strike me as much more sexist than Canada (admittedly subjective—surveys do suggest at least some difference, and in the expected direction), and yet our homicide rate is nearly 3 times as high. Also, I think it’s worth noting that while overall homicide rates vary enormously across societies, the fact that roughly 90% of homicides are committed by men does not. Through some combination of culture and policy, societies can greatly reduce the overall level of violence—but no society has yet managed to change the fact that men are more violent than women.

I would like to do a similar analysis of sexual assault rates across countries, but unfortunately I really can’t, because different countries have such different laws and different rates of reporting that the figures really aren’t comparable. Sweden infamously has a very high rate of reported sex crimes, but this is largely because they have very broad definitions of sex crimes and very high rates of reporting. The best I can really say for now is there is no obvious pattern of more feminist countries having lower rates of sex crimes. Maybe there really is such a pattern; but the data isn’t clear.

Yet if biology contributes anything to the causation of violence—and at this point I think the evidence for that is utterly overwhelming—then mainstream feminism has done the world a grave disservice by insisting upon only social and cultural causes. Maybe it’s the case that our best options for intervention are social or cultural, but that doesn’t mean we can simply ignore biology. And then again, maybe it’s not the case at all:A neurological treatment to cure psychopathy could cut almost all forms of violence in half.

I want to be completely clear that a biological cause is not a justification or an excuse: literally billions of men manage to have high testosterone levels, and experience plenty of anger and sexual desire, without ever raping or murdering anyone. The fact that men appear to be innately predisposed toward violence does not excuse actual violence, and the fact that rape is typically motivated at least in part by sexual desire is no excuse for committing rape.

In fact, I’m quite worried about the opposite: that the notion that sexual violence is always motivated by a desire to oppress and subjugate women will be used to excuse rape, because men who know that their motivation was not oppression will therefore be convinced that what they did wasn’t rape. If rape is always motivated by a desire to oppress women, and his desire was only to get laid, then clearly, what he did can’t be rape, right? The logic here actually makes sense. If we are to reject this argument—as we must—then we must reject the first premise, that all rape is motivated by a desire to oppress and subjugate women. I’m not saying that’s never a motivation—I’m simply saying we can’t assume it is always.

The truth is, I don’t know how to end violence, and sexual violence may be the most difficult form of violence to eliminate. I’m not even sure what most of us can do to make any difference at all. For now, the best thing to do is probably to donate money to organizations like RAINN, NAESV and NSVRC. Even $10 to one of these organizations will do more to help survivors of sexual violence than hours of ruminating on your own complicity—and cost you a lot less.

Why I am not an anarchist

Feb 28 JDN 2459274

I read a post on social media not long ago which was remarkably thoughtful and well-written, considering that it contained ideas that would, if consistently followed, probably destroy human civilization as we know it.

It was an argument in favor of the radical view “ACAB” (for “All Cops Are Bastards”), pointing out that police officers swear an oath to uphold all laws, not only just laws, and therefore are willfully participating in a system of oppression.

This isn’t entirely wrong. Police officers do swear such an oath, and it does seem morally problematic. But if you stop and think for a moment, what was the alternative?

Should we have police officers only swear an oath to uphold the laws they believe are just? Then you have just eliminated the entire purpose of having laws. If police officers get to freely choose which laws they want to uphold and which ones they don’t, we don’t have laws; we just have police officers and their own opinions. In place of the republican system of electing representatives to choose laws, we have a system where the only democratic power lies in choosing the governor and the mayor, and from that point on downward everything is appointments that the public has no say in.

Or should we not have police officers at all? Anyone who chants “ACAB” evidently believes so. But without police officers—or at least some kind of law enforcement mechanism, which would almost certainly have to involve something very much like police officers—we once again find that laws no longer have any real power. Government ceases to exist as a meaningful institution. Laws become nothing more than statements of public disapproval. The logical conclusion of “ACAB” is nothing less than anarchism.

Don’t get me wrong; statements of public disapproval can be useful in themselves. Most international law has little if any enforcement mechanism attached to it, yet most countries follow most international laws most of the time. But for one thing, serious violations of international law are frequent—even by countries that are ostensibly “good citizens”; and for another, international politics does have some kind of enforcement mechanism—if your reputation in the international community gets bad enough, you will often face trade sanctions or even find yourself invaded.

Indeed, it is widely recognized by experts in international relations that more international law enforcement would be a very good thing—perhaps one of the very best things that could possibly happen, in fact, given its effect on war, trade, and the catastrophic risks imposed by nuclear weapons and climate change. The problem with international governance is not that it is undesirable, but that it seems infeasible; we can barely seem to get the world’s major power to all agree on international human rights, much less get them to sign onto a pact that would substantially limit their sovereignty against a global government. The UN is toothless precisely because most of the countries that have the power to control UN policy prefer it that way.

At the national and sub-national scale, however, we already have law enforcement; and while it certainly has significant flaws and is in need of various reforms, it does largely succeed at its core mission of reducing crime.

Indeed, the exceptions prove the rule: The one kind of crime that is utterly rampant in the First World, with impacts dwarfing all others, is white-collar crime—the kind that our police almost never seem to care about.

It’s unclear exactly how much worse crime would be if law enforcement did not exist. Most people, I’m sure, would be unlikely to commit rape or murder even if it were legal to do so. Indeed, it’s not clear how effective law enforcement is at actually deterring rape or murder, since rape is so underreported and most murders are one-off crimes of passion. So, a bit ironically, removing law enforcement for the worst crimes might actually have a relatively small effect.

But there are many other crimes that law enforcement clearly does successfully deter, such as aggravated assault, robbery, larceny, burglary, and car theft. Even controlling for the myriad other factors that affect crime, effective policing has been shown to reduce overall crime by at least 10 percent. Policing has the largest effects on so-called “street crime”, crimes like robbery and auto theft that occur in public places where police can be watching.

Moreover, I would contend that these kinds of estimates should be taken as a lower bound. They are comparing the marginal effect of additional policing—not the overall effect of having police at all. If the Law of Diminishing Marginal Returns applies, the marginal benefit of the first few police officers would be very high, while beyond a certain point adding more cops might not do much.

At the extremes this is almost certainly correct, in fact: A country where 25% of all citizens were police officers probably wouldn’t actually have zero crime, but it would definitely be wasting enormous amounts of resources on policing. Dropping that all the way down to 5% or even 1% could be done essentially without loss. Meanwhile—and this is really the relevant question for anarchism—a country with no police officers at all would probably be one with vastly more crime.

I can’t be certain, of course. No country has ever really tried going without police.

What there have been are police strikes: And yes, it turns out that most police strikes don’t result in substantially increased crime. But there are some important characteristics of police strikes that make this result less convincing than it might seem. First of all, police can’t really strike the way most workers can—it’s almost always illegal for police to strike. So instead what happens is a lot of them call in sick (“blue flu”), or they do only the bare minimum requirements of their duties (“work-to-rule”). Often slack in the police force is made up by deploying state or federal officers. So the “strike” is more of a moderate reduction in policing, rather than a complete collapse of policing as the word “strike” would seem to imply.

Moreover, police strikes are almost always short—the NYPD strike in the 1970s lasted only a week. A lot can still happen even in that time: The Murray-Hill riot as a result of a police strike in Montreal led to hundreds of thefts, millions of dollars in damage, and several deaths—all in a single night. (In Canada!) But even when things turn out okay after a week of striking, as they did in New York, that doesn’t really tell us what would happen if the police were gone for a month, or a year, or a decade. Most crime investigations last months or years anyway, so police going on strike for a week isn’t really that different from, say, economists going on strike for a week: It doesn’t much matter, because most of the work happens on a much longer timescale than that. Speaking as a graduate student, I’ve definitely had whole weeks where I did literally no useful work and nobody noticed.

There’s another problem as well, which is that we don’t actually know how much crime happens. We mainly know about crime from two sources: Reporting, which is directly endogenous to police activity(if the police are known to be useless, nobody reports to them) and surveys, which are very slow (usually they are conducted annually or so). With reporting, we can’t really trust how the results change when policing changes; with surveys, we don’t actually see the outcome for months or years after the policing change. Indeed, it is a notorious fact in criminology that we can’t even really reliably compare crime rates in different times and places because of differences in reporting and survey methods; the one thing we feel really confident comparing is homicide rates (dead is pretty much dead!), which are known to not be very responsive to policing for reasons I already discussed.

I suppose we could try conducting an actual experiment where we declare publically that there will be no police action whatsoever for some interval of time (wasn’t there a movie about this?), and see what happens. But this seems very dangerous: If indeed the pessimistic predictions of mass crime waves are accurate, the results could be catastrophic.

The more realistic approach would be to experiment by reducing police activity, and see if crime increases. We would probably want to do this slowly and gradually, so that we have time to observe the full effect before going too far. This is something we can—and should—do without ever needing to go all the way to being anarchists who believe in abolishing all policing. Even if you think that police are really important and great at reducing crime, you should be interested in figuring out which police methods are most cost-effective, and experimenting with different policing approaches is the best way to do that.

I understand the temptation of anarchism. Above all, it’s simple. It feels very brave and principled. I even share the temperament behind it: I am skeptical of authority in general and agree that the best world would be one where every person (or at least every adult of sound mind) had the full autonomy to make their own choices. But that world just doesn’t seem to be feasible right now, and perhaps it never will be.

Police reform is absolutely necessary. Reductions in policing should be seriously tried and studied. But anarchy is just too dangerous—and that is why we shouldn’t be getting rid of police any time soon.

White-collar crime dwarfs all other property crime

Aug 25 JDN 2458722

When you think of “property crime”, you probably envision pickpockets in crowded squares, muggers in dark alleys or burglars breaking into houses. But this is not the kind of property crime that does the most damage—not by a long shot.

Based on FBI estimates, the total economic value of all stolen property (in this conventional sense) is about $14 billion per year. This is less than 0.1% of US GDP.

Wage theft, in which corporations withhold pay that they are contractually obliged to pay, often by misrepresenting hours or not paying overtime rates, is by itself already $50 billion per year.

But this too pales in comparison to the real threat, which is white-collar crime. The direct cost of white-collar crime to the United States has been estimated at between $250 and $600 billion per year. This is about 1-3% of GDP; the average company loses 6% of its revenue to white-collar crime.

This is comparable to, and quite likely more than, the $280 billion total expenditure of all law enforcement and criminal justice in the United States—which has the highest total law enforcement expenditure in the world, and nearly the highest per capita as well.

This is only direct cost, mind you. If you include the indirect costs of all forms of crime, including violent crime, the total cost of all crime in the US rises to about $1.5 trillion. But this figure does not account for white-collar crime. Since the direct costs of white-collar crime are so much higher than those of other forms of crime, it’s quite likely that the indirect costs are higher as well. (Indeed, I think it can be reasonably argued that The Great Recession was an indirect cost of white-collar crime—and it cost about $14 trillion in lost economic output.)

And this is not including the approximately $300 billion per year in tax evasion (mostly in the form of unreported income and overstated charitable contributions).

The graph below compares these figures visually:

Value_of_crime

Crime pays quite well, as a matter of fact, as long as it’s the right kind of crime.

Our law enforcement system is designed to punish the crimes of the poor, and does so quite relentlessly. But it seems uninterested in punishing the crimes of the rich.

Some of the policies needed to reduce white-collar crime are quite obvious. The first is tax auditing: As the IRS budget has been cut, the number of tax audits has been plummeting, from 1.7 million in 2012 to only 1.1 million in 2017, a decrease of over a third. High-income returns—which are, obviously, where the worst tax evasion happens—have seen an even more precipitous decline in auditing. In 2011, a return over $1 million had about a 12% chance of being audited; now that probability is only 3%.

The budget cuts to the IRS make less than no sense; since 2002, they reduced spending by $14 billion and tax evasion increased by $34 billion. This is the opposite of fiscal responsibility.

Another obvious policy change is to increase spending on the FTC and SEC, the agencies responsible for investigating business transactions and rooting out securities fraud.

Meanwhile, we are actually cutting the SEC budget. This is beyond madness; the total SEC budget is a measly $1.5 billion, and collected entirely from banks, not taxpayers in general. The SEC budget does not contribute to the federal deficit in any way. And think about what madness was to begin with to allocate a budget of only $1.5 billion to regulate an industry with a market value of $26 trillion in this country alone. This is only 0.006%. Since a tax of 0.5% on stock trades, 0.1% on bond trades, and 0.005% on derivatives trades would raise a whopping $220 billion, this means that simply imposing a 0.01% tax on financial transactions would raise enough to increase the SEC budget by an order of magnitude. And this is low enough that it would be felt by basically no one. Frankly if you even care what happens to a single basis point of your rate of return, you are obviously over-leveraged. The difference between making 6.99% and 7.00% per year over 30 years is the difference between turning $1,000 into $7,590.94 and turning it into $7,612.25. That’s a difference of 2% over thirty years.

Simply increasing IRS and SEC audits would not eliminate white-collar crime, of course. It is far too ubiquitous and sophisticated for that. But the fact that we have been cutting these budgets instead of raising them speaks to a much more disturbing truth: These are not the policies of a government that is seriously trying to improve its budget balance. They are the policies of a government that is being corrupted from within, becoming tilted further and further toward the interests of the wealthy.

Defending yourself defends others

Mar 10 JDN 2458553

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Self-defense is a public good.

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

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

The inherent atrocity of “border security”

Jun 24 JDN 2458294

By now you are probably aware of the fact that a new “zero tolerance” border security policy under the Trump administration has resulted in 2,000 children being forcibly separated from their parents by US government agents. If you weren’t, here are a variety of different sources all telling the same basic story of large-scale state violence and terror.

Make no mistake: This is an atrocity. The United Nations has explicitly condemned this human rights violation—to which Trump responded by making an unprecedented threat of withdrawing unilaterally from the UN Human Rights Council.

#ThisIsNotNormal, and Trump was everything we feared—everything we warned—he would be: Corrupt, incompetent, cruel, and authoritarian.

Yet Trump’s border policy differs mainly in degree, not kind, from existing US border policy. There is much more continuity here than most of us would like to admit.

The Trump administration has dramatically increased “interior removals”, the most obviously cruel acts, where ICE agents break into the houses of people living in the US and take them away. Don’t let the cold language fool you; this is literally people with guns breaking into your home and kidnapping members of your family. This is characteristic of totalitarian governments, not liberal democracies.

And yet, the Obama administration actually holds the record for most deportations (though only because they included “at-border deportations” which other administrations did not). A major policy change by George W. Bush started this whole process of detaining people at the border instead of releasing them and requiring them to return for later court dates.

I could keep going back; US border enforcement has gotten more and more aggressive as time goes on. US border security staffing has quintupled since just 1990. There was a time when the United States was a land of opportunity that welcomed “your tired, your poor, your huddled masses”; but that time is long past.

And this, in itself, is a human rights violation. Indeed, I am convinced that border security itself is inherently a human rights violation, always and everywhere; future generations will not praise us for being more restrained than Trump’s abject and intentional cruelty, but condemn us for acting under the same basic moral framework that justified it.

There is an imaginary line in the sand just a hundred miles south of where I sit now. On one side of the line, a typical family makes $66,000 per year. On the other side, a typical family makes only $20,000. On one side of the line, life expectancy is 81 years; on the other, 77. This means that over their lifetime, someone on this side of the line can expect to make over one million dollars more than they would if they had lived on the other side. Step across this line, get a million dollars; it sounds ridiculous, but it’s an empirical fact.

This would be bizarre enough by itself; but now consider that on that line there are fences, guard towers, and soldiers who will keep you from crossing it. If you have appropriate papers, you can cross; but if you don’t, they will arrest and detain you, potentially for months. This is not how we treat you if you are carrying contraband or have a criminal record. This is how we treat you if you don’t have a passport.

How can we possibly reconcile this with the principles of liberal democracy? Philosophers have tried, to be sure. Yet they invariably rely upon some notion that the people who want to cross our border are coming from another country where they were already granted basic human rights and democratic representation—which is almost never the case. People who come here from the UK or the Netherlands or generally have the proper visas. Even people who come here from China usually have visas—though China is by no means a liberal democracy. It’s people who come here from Haiti and Nicaragua who don’t—and these are some of the most corrupt and impoverished nations in the world.

As I said in an earlier post, I was not offended that Trump characterized countries like Haiti and Syria as “shitholes”. By any objective standard, that is accurate; these countries are terrible, terrible places to live. No, what offends me is that he thinks this gives us a right to turn these people away, as though the horrible conditions of their country somehow “rub off” on them and make them less worthy as human beings. On the contrary, we have a word for people who come from “shithole” countries seeking help, and that word is “refugee”.

Under international law, “refugee” has a very specific legal meaning, under which most immigrants do not qualify. But in a broader moral sense, almost every immigrant is a refugee. People don’t uproot themselves and travel thousands of miles on a whim. They are coming here because conditions in their home country are so bad that they simply cannot tolerate them anymore, and they come to us desperately seeking our help. They aren’t asking for handouts of free money—illegal immigrants are a net gain for our fiscal system, paying more in taxes than they receive in benefits. They are looking for jobs, and willing to accept much lower wages than the workers already here—because those wages are still dramatically higher than what they had where they came from.

Of course, that does potentially mean they are competing with local low-wage workers, doesn’t it? Yes—but not as much as you might think. There is only a very weak relationship between higher immigration and lower wages (some studies find none at all!), even at the largest plausible estimates, the gain in welfare for the immigrants is dramatically higher than the loss in welfare for the low-wage workers who are already here. It’s not even a question of valuing them equally; as long as you value an immigrant at least one tenth as much as a native-born citizen, the equation comes out favoring more immigration.

This is for two reasons: One, most native-born workers already are unwilling to do the jobs that most immigrants do, such as picking fruit and laying masonry; and two, increased spending by immigrants boosts the local economy enough to compensate for any job losses.

 

But even aside from the economic impacts, what is the moral case for border security?

I have heard many people argue that “It’s our home, we should be able to decide who lives here.” First of all, there are some major differences between letting someone live in your home and letting someone come into your country. I’m not saying we should allow immigrants to force themselves into people’s homes, only that we shouldn’t arrest them when they try cross the border.

But even if I were to accept the analogy, if someone were fleeing oppression by an authoritarian government and asked to live in my home, I would let them. I would help hide them from the government if they were trying to escape persecution. I would even be willing to house people simply trying to escape poverty, as long as it were part of a well-organized program designed to ensure that everyone actually gets helped and the burden on homeowners and renters was not too great. I wouldn’t simply let homeless people come live here, because that creates all sorts of coordination problems (I can only fit so many, and how do I prioritize which ones?); but I’d absolutely participate in a program that coordinates placement of homeless families in apartments provided by volunteers. (In fact, maybe I should try to petition for such a program, as Southern California has a huge homelessness rate due to our ridiculous housing prices.)

Many people seem to fear that immigrants will bring crime, but actually they reduce crime rates. It’s really kind of astonishing how much less crime immigrants commit than locals. My hypothesis is that immigrants are a self-selected sample; the kind of person willing to move thousands of miles isn’t the kind of person who commits a lot of crimes.
I understand wanting to keep out terrorists and drug smugglers, but there are already plenty of terrorists and drug smugglers here in the US; if we are unwilling to set up border security between California and Nevada, I don’t see why we should be setting it up between California and Baja California. But okay, fine, we can keep the customs agents who inspect your belongings when you cross the border. If someone doesn’t have proper documentation, we can even detain and interrogate them—for a few hours, not a few months. The goal should be to detect dangerous criminals and nothing else. Once we are confident that you have not committed any felonies, we should let you through—frankly, we should give you a green card. We should only be willing to detain someone at the border for the same reasons we would be willing to detain a citizen who already lives here—that is, probable cause for an actual crime. (And no, you don’t get to count “illegal border crossing” as a crime, because that’s begging the question. By the same logic I could justify detaining people for jaywalking.)

A lot of people argue that restricting immigration is necessary to “preserve local culture”; but I’m not even sure that this is a goal sufficiently important to justify arresting and detaining people, and in any case, that’s really not how culture works. Culture is not advanced by purism and stagnation, but by openness and cross-pollination. From anime to pizza, many of our most valued cultural traditions would not exist without interaction across cultural boundaries. Introducing more Spanish speakers into the US may make us start saying no problemo and vamonos, but it’s not going to destroy liberal democracy. If you value culture, you should value interactions across different societies.

Most importantly, think about what you are trying to justify. Even if we stop doing Trump’s most extreme acts of cruelty, we are still talking about using military force to stop people from crossing an imaginary line. ICE basically treats people the same way the SS did. “Papers, please” isn’t something we associate with free societies—it’s characteristic of totalitarianism. We are so accustomed to border security (or so ignorant of its details) that we don’t see it for the atrocity it so obviously is.

National borders function something very much like feudal privilege. We have our “birthright”, which grants us all sorts of benefits and special privileges—literally tripling our incomes and extending our lives. We did nothing to earn this privilege. If anything, we show ourselves to be less deserving (e.g. by committing more crimes). And we use the government to defend our privilege by force.

Are people born on the other side of the line less human? Are they less morally worthy? On what grounds do we point guns at them and lock them away for the “crime” of wanting to live here?

What Trump is doing right now is horrific. But it is not that much more horrific than what we were already doing. My hope is that this will finally open our eyes to the horrors that we had been participating in all along.

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

Jan 28 JDN 2458147

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

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

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

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

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

US_top_income_share_1pct

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

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

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

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

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

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

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

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

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

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

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

What exactly is “gentrification”? How should we deal with it?

Nov 26, JDN 2458083

“Gentrification” is a word that is used in a variety of mutually-inconsistent ways. If you compare the way social scientists use it to the way journalists use it, for example, they are almost completely orthogonal.

The word “gentrification” is meant to invoke the concept of a feudal gentry—a hereditary landed class that extracts rents from the rest of the population while contributing little or nothing themselves.

If indeed that is what we are talking about, then obviously this is bad. Moreover, it’s not an entirely unfounded fear; there are some remarkably strong vestiges of feudalism in the developed world, even in the United States where we never formally had a tradition of feudal titles. There really is a significant portion of the world’s wealth held by a handful of billionaire landowner families.

But usually when people say “gentrification” they mean something much broader. Almost any kind of increase in urban real estate prices gets characterized as “gentrification” by at least somebody, and herein lies the problem.

In fact, the kind of change that is most likely to get characterized as “gentrification” isn’t even the rising real estate prices we should be most worried about. People aren’t concerned when the prices of suburban homes double in 20 years. You might think that things that are already too expensive getting more expensive would be the main concern, but on the contrary, people are most likely to cry “gentrification” when housing prices rise in poor areas where housing is cheap.

One of the most common fears about gentrification is that it will displace local residents. In fact, the best quasi-experimental studies show little or no displacement effect. It’s actually mainly middle-class urbanites who get displaced by rising rents. Poor people typically own their homes, and actually benefit from rising housing prices. Young upwardly-mobile middle-class people move to cities to rent apartments near where they work, and tend to assume that’s how everyone lives, but it’s not. Rising rents in a city are far more likely to push out its grad students than they are poor families that have lived there for generations. Part of why displacement does not occur may be because of policies specifically implemented to fight it, such as subsidized housing and rent control. If that’s so, let’s keep on subsidizing housing (though rent control will always be a bad idea).

Nor is gentrification actually a very widespread phenomenon. The majority of poor neighborhoods remain poor indefinitely. In most studies, only about 30% of neighborhoods classified as “gentrifiable” actually end up “gentrifying”. Less than 10% of the neighborhoods that had high poverty rates in 1970 had low poverty rates in 2010.

Most people think gentrification reduces crime, but in the short run the opposite is the case. Robbery and larceny are higher in gentrifying neighborhoods. Criminals are already there, and suddenly they get much more valuable targets to steal from, so they do.

There is also a general perception that gentrification involves White people pushing Black people out, but this is also an overly simplistic view. First of all, a lot of gentrification is led by upwardly-mobile Black and Latino people. Black people who live in gentrified neighborhoods seem to be better off than Black people who live in non-gentrified neighborhoods; though selection bias may contribute to this effect, it can’t be all that strong, or we’d observe a much stronger displacement effect. Moreover, some studies have found that gentrification actually tends to increase the racial diversity of neighborhoods, and may actually help fight urban self-segregation, though it does also tend to increase racial polarization by forcing racial mixing.

What should we conclude from all this? I think the right conclusion is we are asking the wrong question.

Rising housing prices in poor areas aren’t inherently good or inherently bad, and policies designed specifically to increase or decrease housing prices are likely to have harmful side effects. What we need to be focusing on is not houses or neighborhoods but people. Poverty is definitely a problem, for sure. Therefore we should be fighting poverty, not “gentrification”. Directly transfer wealth from the rich to the poor, and then let the housing market fall where it may.

There is still some role for government in urban planning more generally, regarding things like disaster preparedness, infrastructure development, and transit systems. It may even be worthwhile to design regulations or incentives that directly combat racial segregation at the neighborhood level, for, as the Schelling Segregation Model shows, it doesn’t take a large amount of discriminatory preference to have a large impact on socioeconomic outcomes. But don’t waste effort fighting “gentrification”; directly design policies that will incentivize desegregation.

Rising rent as a proportion of housing prices is still bad, and the fundamental distortions in our mortgage system that prevent people from buying houses are a huge problem. But rising housing prices are most likely to be harmful in rich neighborhoods, where housing is already overpriced; in poor neighborhoods where housing is cheap, rising prices might well be a good thing.
In fact, I have a proposal to rapidly raise homeownership across the United States, which is almost guaranteed to work, directly corrects an enormous distortion in financial markets, and would cost about as much as the mortgage interest deduction (which should probably be eliminated, as most economists agree). Give each US adult a one-time grant voucher which gives them $40,000 that can only be spent as a down payment on purchasing a home. Each time someone turns 18, they get a voucher. You only get one over your lifetime, so use it wisely (otherwise the policy could become extremely expensive); but this is an immediate direct transfer of wealth that also reduces your credit constraint. I know I for one would be house-hunting right now if I were offered such a voucher. The mortgage interest deduction means nothing to me, because I can’t afford a down payment. Where the mortgage interest deduction is regressive, benefiting the rich more than the poor, this policy gives everyone the same amount, like a basic income.

In the short run, this policy would probably be expensive, as we’d have to pay out a large number of vouchers at once; but with our current long-run demographic trends, the amortized cost is basically the same as the mortgage interest deduction. And the US government especially should care about the long-run amortized cost, as it is an institution that has lasted over 200 years without ever missing a payment and can currently borrow at negative real interest rates.

Financial fraud is everywhere

Jun 4, JDN 2457909
When most people think of “crime”, they probably imagine petty thieves, pickpockets, drug dealers, street thugs. In short, we think of crime as something poor people do. And certainly, that kind of crime is more visible, and typically easier to investigate and prosecute. It may be more traumatic to be victimized by it (though I’ll get back to that in a moment).

The statistics on this matter are some of the fuzziest I’ve ever come across, so estimates could be off by as much as an order of magnitude. But there is some reason to believe that, within most highly-developed countries, financial fraud may actually be more common than any other type of crime. It is definitely among the most common, and the only serious contenders for exceeding it are other forms of property crime such as petty theft and robbery.

It also appears that financial fraud is the one type of crime that isn’t falling over time. Violent crime and property crime are both at record lows; the average American’s probability of being victimized by a thief or a robber in any given year has fallen from 35% to 11% in the last 25 years. But the rate of financial fraud appears to be roughly constant, and the rate of high-tech fraud in particular is definitely rising. (This isn’t too surprising, given that the technology required is becoming cheaper and more widely available.)

In the UK, the rate of credit card fraud rose during the Great Recession, fell a little during the recovery, and has been holding steady since 2010; it is estimated that about 5% of people in the UK suffer credit card fraud in any given year.

About 1% of US car loans are estimated to contain fraudulent information (such as overestimated income or assets). As there are over $1 trillion in outstanding US car loans, that amounts to about $5 billion in fraud losses every year.

Using DOJ data, Statistic Brain found that over 12 million Americans suffer credit card fraud any given year; based on the UK data, this is probably an underestimate. They also found that higher household income had only a slight effect of increasing the probability of suffering such fraud.

The Office for Victims of Crime estimates that total US losses due to financial fraud are between $40 billion and $50 billion per year—which is to say, the GDP of Honduras or the military budget of Japan. The National Center for Victims of Crime estimated that over 10% of Americans suffer some form of financial fraud in any given year.

Why is fraud so common? Well, first of all, it’s profitable. Indeed, it appears to be the only type of crime that is. Most drug dealers live near the poverty line. Most bank robberies make off with less than $10,000.

But Bernie Madoff made over $50 billion before he was caught. Of course he was an exceptional case; the median Ponzi scheme only makes off with… $2.1 million. That’s over 200 times the median bank robbery.

Second, I think financial fraud allows the perpetrator a certain psychological distance from their victims. Just as it’s much easier to push a button telling a drone to launch a missile than to stab someone to death, it’s much easier to move some numbers between accounts than to point a gun at someone’s head and demand their wallet. Construal level theory is all about how making something seem psychologically more “distant” can change our attitudes toward it; toward things we perceive as “distant”, we think more abstractly, we accept more risks, and we are more willing to engage in violence to advance a cause. (It also makes us care less about outcomes, which may be a contributing factor in the collective apathy toward climate change.)

Perhaps related to this psychological distance, we also generally have a sense that fraud is not as bad as violent crime. Even judges and juries often act as though white-collar criminals aren’t real criminals. Often the argument seems to be that the behavior involved in committing financial fraud is not so different, after all, from the behavior of for-profit business in general; are we not all out to make an easy buck?

But no, it is not the same. (And if it were, this would be more an indictment of capitalism than it is a justification for fraud. So this sort of argument makes a lot more sense coming from socialists than it does from capitalists.)

One of the central justifications for free markets lies in the assumption that all parties involved are free, autonomous individuals acting under conditions of informed consent. Under those conditions, it is indeed hard to see why we have a right to interfere, as long as no one else is being harmed. Even if I am acting entirely out of my own self-interest, as long as I represent myself honestly, it is hard to see what I could be doing that is morally wrong. But take that away, as fraud does, and the edifice collapses; there is no such thing as a “right to be deceived”. (Indeed, it is quite common for Libertarians to say they allow any activity “except by force or fraud”, never quite seeming to realize that without the force of government we would all be surrounded by unending and unstoppable fraud.)

Indeed, I would like to present to you for consideration the possibility that large-scale financial fraud is worse than most other forms of crime, that someone like Bernie Madoff should be viewed as on a par with a rapist or a murderer. (To its credit, our justice system agrees—Madoff was given the maximum sentence of 150 years in maximum security prison.)

Suppose you were given the following terrible choice: Either you will be physically assaulted and beaten until several bones are broken and you fall unconscious—or you will lose your home and all the money you put into it. If the choice were between death and losing your home, obviously, you’d lose your home. But when it is a question of injury, that decision isn’t so obvious to me. If there is a risk of being permanently disabled in some fashion—particularly mentally disabled, as I find that especially terrifying—then perhaps I accept losing my home. But if it’s just going to hurt a lot and I’ll eventually recover, I think I prefer the beating. (Of course, if you don’t have health insurance, recovering from a concussion and several broken bones might also mean losing your home—so in that case, the dilemma is a no-brainer.) So when someone commits financial fraud on the scale of hundreds of thousands of dollars, we should consider them as having done something morally comparable to beating someone until they have broken bones.

But now let’s scale things up. What if terrorist attacks, or acts of war by a foreign power, had destroyed over one million homes, killed tens of thousands of Americans by one way or another, and cut the wealth of the median American family in half? Would we not count that as one of the greatest acts of violence in our nation’s history? Would we not feel compelled to take some overwhelming response—even be tempted toward acts of brutal vengeance? Yet that is the scale of the damage done by the Great Recession—much, if not all, preventable if our regulatory agencies had not been asleep at the wheel, lulled into a false sense of security by the unending refrain of laissez-faire. Most of the harm was done by actions that weren’t illegal, yes; but some of actually was illegal (20% of direct losses are attributable to fraud), and most of the rest should have been illegal but wasn’t. The repackaging and selling of worthless toxic assets as AAA bonds may not legally have been “fraud”, but morally I don’t see how it was different. With this in mind, the actions of our largest banks are not even comparable to murder—they are comparable to invasion or terrorism. No mere individual shooting here; this is mass murder.

I plan to make this a bit of a continuing series. I hope that by now I’ve at least convinced you that the problem of financial fraud is a large and important one; in later posts I’ll go into more detail about how it is done, who is doing it, and what perhaps can be done to stop them.

No, this isn’t like Watergate. It’s worse.

May 21, JDN 2457895

Make no mistake: This a historic moment. This may be the greatest corruption scandal in the history of the United States. Donald Trump has fired the director of the FBI in order to block an investigation—and he said so himself.

It has become cliche to compare scandals to Watergate—to the point where we even stick the suffix “-gate” on things to indicate scandals. “Gamergate”, “Climategate”, and so on. So any comparison to Watergate is bound to draw some raised eyebrows.

But just as it’s not Godwin’s Law when you’re really talking about fascism and genocide, it’s not the “-gate” cliche when we are talking about a corruption scandal that goes all the way up to the President of the United States. And The Atlantic is right: this isn’t Watergate; it’s worse.

First of all, let’s talk about the crime of which Trump is accused. Nixon was accused of orchestrating burglary and fraud. These are not minor offenses, to be sure. But they are ordinary criminal offenses, felonies at worst. Trump is accused of fundamental Constitutional violations (particularly the First Amendment and the Emoluments Clause), and above all, Trump is accused of treason. This is the highest crime recognized by the Constitution of the United States. It is the only crime with a specifically listed Constitutional punishment—and that punishment is execution.

Donald Trump is being investigated not for stealing something or concealing information, but for colluding with foreign powers in the attempt to undermine American democracy. Is he guilty? I don’t know; that’s why we’re investigating. But let me say this: If he isn’t guilty of something, it’s quite baffling that he would fight so hard to stop the investigation.

Speaking of which: Trump’s intervention to stop Comey is much more direct, and much more sudden, than anything Nixon did to stop the Watergate investigations. Nixon of course tried to stonewall the investigations, but he did so subtly, cautiously, always trying to at least appear like he valued due process and rule of law. Trump made no such efforts, openly threatening Comey personally on Twitter and publicly declaring on national television that he had fired him to block the investigation.

But perhaps what makes the Trump-Comey affair most terrifying is how the supposedly “mainstream” Republican Party has reacted. The Republicans of Nixon had some honor left in them; several resigned rather than follow Nixon’s illegal orders, and dozens of Republicans in Congress supported the investigations and called for Nixon’s impeachment. Apparently that honor is gone now, as GOP leaders like Mitch McConnell and Lindsey Graham have expressed support for the President’s corrupt and illegal actions citing no principle other than party loyalty. If we needed any more proof that the Republican Party of the United States is no longer a mainstream political party, this is it. They don’t believe in democracy or rule of law anymore. They believe in winning at any cost, loyalty at any price. They have become a radical far-right organization—indeed, if they continue down this road of supporting the President in undermining the freedom of the press and consolidating his own power, I think it is fair to call them literally neo-fascist.

We are about to see whether American institutions can withstand such an onslaught, whether liberty and justice can prevail against corruption and tyranny. So far, there have been reasons to be optimistic: In particular, the judicial branch has proudly and bravely held the line, blocking Trump’s travel ban (multiple times), resisting his order to undermine sanctuary cities, and standing up to direct criticisms and even threats from the President himself. Our system of checks and balances is being challenged, but so far it is holding up against that challenge. We will find out soon enough whether the American system truly is robust enough to survive.

Why do so many Americans think that crime is increasing?

Jan 29, JDN 2457783

Since the 1990s, crime in United States has been decreasing, and yet in every poll since then most Americans report that they believe that crime is increasing.

It’s not a small decrease either. The US murder rate is down to the lowest it has been in a century. There are now a smaller absolute number (by 34 log points) of violent crimes per year in the US than there were 20 years ago, despite a significant increase in total population (19 log points—and the magic of log points is that, yes, the rate has decreased by precisely 53 log points).

It isn’t geographically uniform, of course; some states have improved much more than others, and a few states (such as New Mexico) have actually gotten worse.

The 1990s were a peak of violent crime, so one might say that we are just regressing to the mean. (Even that would be enough to make it baffling that people think crime is increasing.) But in fact overall crime in the US is now the lowest it has been since the 1970s, and still decreasing.

Indeed, this decrease has been underestimated, because we are now much better about reporting and investigating crimes than we used to be (which may also be part of why they are decreasing, come to think of it). If you compare against surveys of people who say they have been personally victimized, we’re looking at a decline in violent crime rates of two thirds—109 log points.

Just since 2008 violent crime has decreased by 26% (30 log points)—but of course we all know that Obama is “soft on crime” because he thinks cops shouldn’t be allowed to just shoot Black kids for no reason.

And yet, over 60% of Americans believe that overall crime in the US has increased in the last 10 years (though only 38% think it has increased in their own community!). These figures are actually down from 2010, when 66% thought crime was increasing nationally and 49% thought it was increasing in their local area.

The proportion of people who think crime is increasing does seem to decrease as crime rates decrease—but it still remains alarmingly high. If people were half as rational as most economists seem to believe, the proportion of people who think crime is increasing should drop to basically zero whenever crime rates decrease, since that’s a really basic fact about the world that you can just go look up on the Web in a couple of minutes. There’s no deep ambiguity, not even much “rational ignorance” given the low cost of getting correct answers. People just don’t bother to check, or don’t feel they need to.
What’s going on? How can crime fall to half what it was 20 years ago and yet almost two-thirds of people think it’s actually increasing?

Well, one hint is that news coverage of crime doesn’t follow the same pattern as actual crime.

News coverage in general is a terrible source of information, not simply because news organizations can be biased, make glaring mistakes, and sometimes outright lie—but actually for a much more fundamental reason: Even a perfect news channel, qua news channel, would report what is surprising—and what is surprising is, by definition, improbable. (Indeed, there is a formal mathematical concept in probability theory called surprisal that is simply the logarithm of 1 over the probability.) Even assuming that news coverage reports only the truth, the probability of seeing something on the news isn’t proportional to the probability of the event occurring—it’s more likely proportional to the entropy, which is probability times surprisal.

Now, if humans were optimal information processing engines, that would be just fine, actually; reporting events proportional to their entropy is actually a very efficient mechanism for delivering information (optimal, under certain types of constraints), provided that you can then process the information back into probabilities afterward.

But of course, humans aren’t optimal information processing engines. We don’t recompute the probabilities from the given entropy; instead we use the availability heuristic, by which we simply use the number of times we can think of something happening as our estimate of the probability of that event occurring. If you see more murders on TV news than you used you, you assume that murders must be more common than they used to be. (And when I put it like that, it really doesn’t sound so unreasonable, does it? Intuitively the availability heuristic seems to make sense—which is part of why it’s so insidious.)

Another likely reason for the discrepancy between perception and reality is nostalgia. People almost always have a more positive view of the past than it deserves, particularly when referring to their own childhoods. Indeed, I’m quite certain that a major reason why people think the world was much better when they were kids was that their parents didn’t tell them what was going on. And of course I’m fine with that; you don’t need to burden 4-year-olds with stories of war and poverty and terrorism. I just wish people would realize that they were being protected from the harsh reality of the world, instead of thinking that their little bubble of childhood innocence was a genuinely much safer world than the one we live in today.

Then take that nostalgia and combine it with the availability heuristic and the wall-to-wall TV news coverage of anything bad that happens—and almost nothing good that happens, certainly not if it’s actually important. I’ve seen bizarre fluff pieces about puppies, but never anything about how world hunger is plummeting or air quality is dramatically improved or cars are much safer. That’s the one thing I will say about financial news; at least they report it when unemployment is down and the stock market is up. (Though most Americans, especially most Republicans, still seem really confused on those points as well….) They will attribute it to anything from sunspots to the will of Neptune, but at least they do report good news when it happens. It’s no wonder that people are always convinced that the world is getting more dangerous even as it gets safer and safer.

The real question is what we do about it—how do we get people to understand even these basic facts about the world? I still believe in democracy, but when I see just how painfully ignorant so many people are of such basic facts, I understand why some people don’t. The point of democracy is to represent everyone’s interests—but we also end up representing everyone’s beliefs, and sometimes people’s beliefs just don’t line up with reality. The only way forward I can see is to find a way to make people’s beliefs better align with reality… but even that isn’t so much a strategy as an objective. What do I say to someone who thinks that crime is increasing, beyond showing them the FBI data that clearly indicates otherwise? When someone is willing to override all evidence with what they feel in their heart to be true, what are the rest of us supposed to do?