Government shutdowns are pure waste

Jan 6 JDN 2458490
At the time of writing, the US federal government is still shut down.

The US government has been shut down in this way 22 times—all of them since 1976. Most countries don’t do this. The US didn’t do it for most of our history. Please keep that in mind: This was an entirely avoidable outcome that most countries never go through.

The consequences of a government shutdown are pure waste on an enormous scale. Most government employees get furloughed without pay, which means they miss their credit card and mortgage payments while they wait for their back pay after the shutdown ends. (And this one happened during Christmas!) Contractors have it even worse: They get their contracts terminated and may never see the money they were promised. This has effects on our whole economy; the 2013 shutdown removed a full $24 billion from the US economy, and the current shutdown is expected to drain $6 billion per week. The government itself is taking losses of about $1 billion per week, mostly in the form of unpaid and unaudited taxes.

I personally don’t know what’s going to happen to an NSF grant proposal I’ve been writing for several weeks: Almost the entire NSF has been furloughed as “non-essential” (most of the military remains operative; almost all basic science gets completely shut down—insert comment about the military-industrial complex here), and in 2013 some of the dissertation grants were outright canceled because of the shutdown.

Why do these shutdowns happen?

A government shutdown occurs when the omnibus appropriations bill fails to pass. This bill is essentially the entire US federal budget in a single bill; like any other bill, it has to be passed by both houses of Congress and signed by the President.

For some reason, our government decided that if this process doesn’t happen on schedule, the correct answer is to shut down all non-essential government services. This is a frankly idiotic answer. The obviously correct solution is that if Congress and the President can’t agree on a new budget, the old budget gets renewed in its entirety with a standard COLA inflation adjustment. This really seems incredibly basic: If the government can’t agree on how to change something, the status quo should remain in effect until they do. And the status quo is an inflation-adjusted version of the existing budget.

This particular shutdown occurred because of Donald Trump’s brinksmanship on the border wall: He demanded at least $5 billion, and the House wouldn’t give it to him.

It won’t be much longer before we’ve already lost more money on the shutdown than that $5 billion; this may tempt you to say that the House should give in. But the wall won’t actually do anything to make our nation safer or better, and building it would displace thousands of people by eminent domain and send an unquestionable signal of xenophobia to the rest of the world. Frankly it sickens me that there were not enough principled Republicans to stand their ground against Trump’s madness; but at least there are now Democrats standing theirs.

Make no mistake: This is Trump’s shutdown, and he said so himself. The House even offered to do what should be done by default, which is renew the old budget while negotiations on the border wall continue—Trump refused this offer. And Trump keeps changing his story with every new tweet.

But the real problem is that this is even something the President is allowed to do. Vetoing the old budget should restore the old budget, not furlough hundreds of thousands of workers and undermine government services. This is a ludicrous way to organize a government, and seems practically designed to make our government as inefficient, wasteful, and hated as possible. This was an absolutely unforced error and we should be enacting policy rules that would prevent it from ever happening again.

The best thing we can do to help them is let them in


 

Dec 23 JDN 2458476

This is a Christmas post, but not like most of my other Christmas posts. It’s not going to be an upbeat post about the effects of holidays on the economy, or the psychology of gift-giving, or the game theory that underlies the whole concept of a “holiday”.

No, today is about an urgent moral crisis. This post isn’t about Christmas as a weird but delightful syncretic solstice celebration. This post is about the so-called “spirit of Christmas”, a spirit of compassion and generosity that our country is clearly not living up to.

At the time of writing, the story had just come out: Jakelin Maquin, a 7-year-old girl from Guatemala died in the custody of US border agents.

Even if it’s true that the Border Patrol did everything they could to help her once they found out she was dying (and the reports coming out suggest that this is in fact the case), this death was still entirely preventable.

The first question we should ask is very basic: Why are there little girls in custody of border agents?
The next question is even more fundamental than that: Why are there border agents?

There are now 15,000 children being held by US Border Patrol. There should not be even one. The very concept of imprisoning children for crossing the border, under any circumstances, is a human rights violation. And yes, this is new, and it is specific to Donald Trump: Bush and Obama never separated children from their families this way. And while two-thirds of Americans oppose this policy, a majority of Republicans support it—this child’s blood is on their hands too.

Yet despite the gulf between the two major parties, the majority of Americans do support the idea of restricting immigration in general. And what I want to know is: Why? What gives us that right?

Let’s be absolutely clear about what “restricting immigration” means. It means that when someone decides they want to come to our country, either to escape oppression, work toward a better life, or simply to live with their family who came here before, men with guns come and lock them up.

We don’t politely ask them to leave. We don’t even fine them or tax them for entering. We lock them in detention camps, or force them to return to the country they came from which may be ruled by a dictator or a drug cartel.

Honestly, even the level of border security US citizens are subjected to is appalling: We’ve somehow come to think of it as normal that whenever you get on an airplane, you are first run through a body scanner, while all your belongings are inspected and scanned, and if you are found carrying any contraband—or if you even say the wrong thing—you can be summarily detained. This is literally Orwellian. “Papers, please” is the refrain of a tyrannical regime, not a liberal democracy.

If we truly believe in the spirit of compassion and generosity, we must let these people in. We don’t even have to do anything; we just need to stop violently resisting them. Stop pointing guns at them, stop locking them away. How is “Stop pointing guns at children” controversial?

I could write an entire post about the benefits for Americans of more open immigration. But honestly, we shouldn’t even care. It doesn’t matter whether immigration creates jobs, or destroys jobs, or decreases crime, or increases crime. We should not be locking up children in camps.

If we really believe in the spirit of compassion and generosity, the only thing we should care about is whether immigration is good for the immigrants. And it obviously is, or they wouldn’t be willing to go to such lengths to accomplish it. But I don’t think most people realize just how large the benefits of immigration are.

I’m going to focus on Guatemala, because that’s where Jakelin Maqin was from.

Guatemala’s life expectancy at birth is 73 years. The life expectancy for recent Hispanic immigrants to the US is 82 years. Crossing that border can give you nine years of life.

And what about income? GDP per capita PPP in the US is almost $60,000 per year. In Guatemala? Just over $8,000. Of course, that’s not accounting for the fact that Guatemalans are less educated; but even the exact same worker emigrating from there to here can greatly increase their income. The minimum wage in Guatemala is 90 GTQ per day, which is about $11.64. For a typical 8-hour workday, the US minimum wage of $7.25 per hour comes to $58 per day. That same exact worker can quintuple their income just by getting a job on the other side of the border.

Almost 60 percent of Guatemalans live in poverty. Over 20% live below the UN extreme poverty line. A full 11% of Guatemala’s GDP is remittances: Money that immigrants pay to help their families back home. A further 7% is exports to the US. This means that almost a fifth of Guatemala’s economy is dependent on the United States.

For comparison, less than 0.5% of Americans live in extreme poverty. (The UN recently claimed almost 6%; the Trump administration has claimed only 0.1% which is even more dubious. Both methodologies are deeply flawed; in particular, the UN report looks at income, not consumption—and consumption is what matters.) The overall poverty rate in the US is about 12%.

These figures are still appallingly high for a country as rich as the US; our extreme poverty rate should be strictly zero, a policy decision which could be implemented immediately and permanently in the form of a basic income of $700 per person per year, at a total expenditure of only $224 billion per year—about a third of the military budget. The net cost would in fact be far smaller than that, because we’d immediately turn around and spend that money. In fact, had this been done at the trough of the Great Recession, it would almost certainly have saved the government money.

Making our overall poverty rate strictly zero would be more challenging, but not obviously infeasible; since the poverty line is about $12,000 per person per year, it would take a basic income of that much to eliminate poverty, which would cost about $3.8 trillion per year. This is a huge expenditure, comparable as a proportion of GDP to the First World War (though still less than the Second). On the other hand, it would end poverty in America immediately and forever.

But even as things currently stand, the contrast between Guatemala and the US could hardly be starker: Immigrants are moving from a country with 60% poverty and 20% extreme poverty to one with 12% poverty and 0.5% extreme poverty.

Guatemala is a particularly extreme example; things are not as bad in Mexico or Cuba, for example. But the general pattern is a very consistent one: Immigrants come to the United States because things are very bad where they come from and their chances of living a better life here are much higher.

The best way to help these people, at Christmas and all year round, literally couldn’t be easier:

Let them in.

How to respond to dog whistles

Oct 21 JDN 2458413

Political messaging has grown extremely sophisticated. The dog whistle technique is particularly powerful one: it allows you to say the same thing to two different groups and have them each hear what they wanted to hear. The term comes from the gadget used in training canines, which emits sounds at a frequency which humans can’t hear but dogs can. Similar concepts have been around for a long time, but the word wasn’t used for this specific meaning until the 1990s.

There was once a time when politicians could literally say different things to different groups, but mass media has made that effectively impossible. When Mitt Romney tried to do this, it destroyed his (already weak) campaign. So instead they find ways to convey two different meanings, while saying the same words.

Classic examples of this include “law and order” and “states’ rights”, which have always carried hidden racist connotations, yet on their face sound perfectly reasonable. “Family values” is another one.

Trump is particularly inelegant at this; his dog whistles often seem to drop into the audible frequency range, as when he called undocumented immigrants (or possibly gang members?) “animals” and tweeted about “caravans” of immigrants, and above all when he said “they’re bringing drugs, they’re bringing crime, they’re rapists”. (Frankly, does that even count as a dog whistle?) He’s a little less obvious in his deployment of “globalist” as a probable anti-Semitic slur.

How should we respond to this kind of coded language?

It’s not as simple as you might think. It’s not always easy to tell what is a dog whistle. Someone talking about crime could be trying to insinuate something about minorities… or, they could just be talking about crime. Someone complaining about immigration could be trying to dehumanize immigrants… or, they could just want a change in our border policy. Accusations of “globalism” could be coded anti-Semitism… or they could just be nationalism.
It’s also easy to accuse someone of using dog whistles even if they probably aren’t: It is now commonplace for the right wing to argue that “common-sense gun control” means confiscating all handguns (when it in fact means universal background checks, mandatory safety classes, and perhaps assault weapon bans and magazine limits, all of which are quite popular even among gun owners), or to argue that “safe, legal, and rare” is just a Trojan horse for unrestricted free abortion (when in fact “safe, legal, and rare” is the overwhelming majority view among Americans). Indeed, it’s quite probable that many of the things that the left wing has taken as dog whistles by Trump were actually overreactions—Trump is bigoted, but not especially so by the standards of old White Republican men. The best reasons to want Trump out of office involve his authoritarianism, his corruption, and his incompetence, not his bigotry. Foreign policy and climate change should be issues that overwhelm basically everything else—these are millions of lives on the line—and they are the two issues that Trump gets most decisively wrong.

The fact that it can be difficult to tell which statements are dog-whistles is not a bug but a feature: It provides plausible deniability.

If you can structure your speech so that it will be heard by your base as supporting a strong ideological platform, but when the words are analyzed they will be innocuous enough that no one can directly prove your extremism, you can have your cake and eat it too. Even if journalists go on to point out the dog whistles in your speech, moderates on your side of the fence might not hear the same dog whistles, and then just become convinced that the journalists are overreacting. And they might even be overreacting.

Instead, I think there are two things we need to do, which are distinct but complementary.’

1. Ask for clarification.

Whether you are in a personal conversation with a friend who is spouting talking points, or a journalist interviewing a politician running for office, there will come opportunities where you can directly respond to a potential dog whistle.
Do not accuse them of using a dog whistle—even if you are confident that they are. That will only make them defensive, and make you appear to be the aggressor. Instead, ask them firmly, but calmly:

What exactly do you mean by that statement?”

If they ignore the question or try to evade it, ask again, a little more firmly. If they evade again, ask again. Keep asking until they answer you or literally force you to shut up. Be confident, but calm and poised. Now they look like the aggressor—and above all, they sound like they have something to hide.

Note also that if it turns out not to be a dog whistle, they will likely not be offended by your request and will have a perfectly reasonable clarification. For example:

“What did you mean when you said you’re worried about Muslim immigrants?”

“Well, I mean that Muslim societies often have very regressive norms surrounding gender and LGBT rights, and many Muslim immigrants have difficulty assimilating into our liberal values. I think we need to spend more effort finding ways to integrate Muslims into our community and disabuse them of harmful cultural norms.”

“What did you mean when you said you are worried about law and order?”

“I mean that gang violence in several of our inner cities is really out of control, and we need to be working on both investing more in policing and finding better methods of crime prevention in order to keep these communities safe.”

“What ‘states’ rights’ are you particularly concerned about, Senator?”

“I don’t like that the federal government thinks it can impose laws against marijuana based on an absurdly broad reading of the Interstate Commerce Clause. I don’t think it’s right that legitimate businesses in California and Colorado have to operate entirely in cash because federal regulations won’t let them put their money into banks without fear of having it confiscated.”

You may even find that you still disagree with the clarified statement, but hopefully it can be a reasonable disagreement, rather than a direct conflict over fundamental values.

2. State your own positive case.

This is one you can probably do even if you don’t actually get the opportunity to engage directly with people on the other side.

I was actually surprised to learn this, but apparently the empirical data shows that including messages of social justice in your political platform makes it more popular, even among moderates.
This means that we don’t have to respond to innuendo with innuendo—we can come out and say that we think a given policy is bad because it will hurt women or Black people. Economic populism is good too, but we don’t need to rely entirely upon that.

To be clear, we should not say that the policy is designed to hurt women or Black people—even if we think that is likely to be true—for at least two reasons: First, we can’t actually prove that, except in very rare cases, so it makes our argument inherently more tendentious; and second, it makes our whole mode of argumentation more aggressive and less charitable. We should always at least consider the possibility that our opponent’s intentions are noble, and unless the facts utterly force us to abandon that view it should probably be our working assumption.

This means that we don’t even necessarily have to come out and challenge dog whistles. We just need to make a better positive case ourselves. While they are making vague, ambiguous claims about “cleaning up our cities” and “making America great”, we can lay out explicit policy plans for reducing unemployment, poverty, and carbon emissions.

Hillary Clinton almost did this—but she didn’t do it well enough. She relied too heavily on constituents being willing to read detailed plans on her website, instead of summarizing them in concise, pithy talking points to put in headlines. Her line Because we’re going to put a lot of coal miners and coal companies out of business, right?” was indeed taken out of contextbut she should have pushed harder by making an actual slogan, like “End coal burning—save coal communities.” (I literally came up with that in five minutes. She had hundreds of professional campaign staff working for her and they couldn’t do better?) The media did butcher her statements—but she didn’t correct them by putting slogans on yard signs or giving stump speeches in Appalachia.

Indeed, the news media didn’t do her any favors—they spent literally more time talking about her emails than every actual policy issued combined, and not by a small margin. But we can’t rely on the news media—and we don’t have to, in the age of blogs and social media. Instead of assuming that everyone already agrees with us and we will win because we deserve to, we need to be doing what actually works at conveying our message and making sure that we win by the largest margin possible.

What really works against bigotry

Sep 30 JDN 2458392

With Donald Trump in office, I think we all need to be thinking carefully about what got us to this point, how we have apparently failed in our response to bigotry. It’s good to see that Kavanaugh’s nomination vote has been delayed pending investigations, but we can’t hope to rely on individual criminal accusations to derail every potentially catastrophic candidate. The damage that someone like Kavanaugh would do to the rights of women, racial minorities, and LGBT people is too severe to risk. We need to attack this problem at its roots: Why are there so many bigoted leaders, and so many bigoted voters willing to vote for them?

The problem is hardly limited to the United States; we are witnessing a global crisis of far-right ideology, as even the UN has publicly recognized.

I think the left made a very dangerous wrong turn with the notion of “call-out culture”. There is now empirical data to support me on this. Publicly calling people racist doesn’t make them less racist—in fact, it usually makes them more racist. Angrily denouncing people doesn’t change their minds—it just makes you feel righteous. Our own accusatory, divisive rhetoric is part of the problem: By accusing anyone who even slightly deviates from our party line (say, by opposing abortion in some circumstances, as 75% of Americans do?) of being a fascist, we slowly but surely push more people toward actual fascism.

Call-out culture encourages a black-and-white view of the world, where there are “good guys” (us) and “bad guys” (them), and our only job is to fight as hard as possible against the “bad guys”. It frees us from the pain of nuance, complexity, and self-reflection—at only the cost of giving up any hope of actually understanding the real causes or solving the problem. Bigotry is not something that “other” people have, which you, fine upstanding individual, could never suffer from. We are all Judy Hopps.

This is not to say we should do nothing—indeed, that would be just as bad if not worse. The rise of neofascism has been possible largely because so many people did nothing. Knowing that there is bigotry in all of us shouldn’t stop us from recognizing that some people are far worse than others, or paralyze us against constructively improving ourselves and our society. See the shades of gray without succumbing to the Fallacy of Gray.

The most effective interventions at reducing bigotry are done in early childhood; obviously, it’s far too late for that when it comes to people like Trump and Kavanaugh.

But there are interventions that can work at reducing bigotry among adults. We need to first understand where the bigotry comes from—and it doesn’t always come from the same source. We need to be willing to look carefully—yes, even sympathetically—at people with bigoted views so that we can understand them.

There are deep, innate systems in the human brain that make bigotry come naturally to us. Even people on the left who devote their lives to combating discrimination against women, racial minorities and LGBT people can still harbor bigoted attitudes toward other groups—such as rural people or Republicans. If you think that all Republicans are necessarily racist, that’s not a serious understanding of what motivates Republicans—that’s just bigotry on your part. Trump is racist. Pence is racist. One could argue that voting for them constitutes, in itself, a racist act. But that does not mean that every single Republican voter is fundamentally and irredeemably racist.

It’s also important to have conversations face-to-face. I must admit that I am personally terrible at this; despite training myself extensively in etiquette and public speaking to the point where most people perceive me as charismatic, even charming, deep down I am still a strong introvert. I dislike talking in person, and dread talking over the phone. I would much prefer to communicate entirely in written electronic communication—but the data is quite clear on this: Face-to-face conversations work better at changing people’s minds. It may be awkward and uncomfortable, but by being there in person, you limit their ability to ignore you or dismiss you; you aren’t a tweet from the void, but an actual person, sitting there in front of them.

Speak with friends and family members. This, I know, can be especially awkward and painful. In the last few years I have lost connections with friends who were once quite close to me as a result of difficult political conversations. But we must speak up, for silence becomes complicity. And speaking up really can work.

Don’t expect people to change their entire worldview overnight. Focus on small, concrete policy ideas. Don’t ask them to change who they are; ask them to change what they believe. Ask them to justify and explain their beliefs—and really listen to them when they do. Be open to the possibility that you, too might be wrong about something.

If they say “We should deport all illegal immigrants!”, point out that whenever we try this, a lot of fields go unharvested for lack of workers, and ask them why they are so concerned about illegal immigrants. If they say “Illegal immigrants come here and commit crimes!” point them to the statistical data showing that illegal immigrants actually commit fewer crimes on average than native-born citizens (probably because they are more afraid of what happens if they get caught).

If they are concerned about Muslim immigrants influencing our culture in harmful ways, first, acknowledge that there are legitimate concerns about Islamic cultural values (particularly toward women and LGBT people)but then point out that over 90% of Muslim-Americans are proud to be American, and that welcoming people is much more effective at getting them to assimilate into our culture than keeping them out and treating them as outsiders.

If they are concerned about “White people getting outnumbered”, first point out that White people are still over 70% of the US population, and in most rural areas there are only a tiny fraction of non-White people. Point out that Census projections showing the US will be majority non-White by 2045 are based on naively extrapolating current trends, and we really have no idea what the world will look like almost 30 years from now. Next, ask them why they worry about being “outnumbered”; get them to consider that perhaps racial demographics don’t have to be a matter of zero-sum conflict.

After you’ve done this, you will feel frustrated and exhausted, and the relationship between you and the person you’re trying to convince will be strained. You will probably feel like you have accomplished absolutely nothing to change their mind—but you are wrong. Even if they don’t acknowledge any change in their beliefs, the mere fact that you sat down and asked them to justify what they believe, and presented calm, reasonable, cogent arguments against those beliefs will have an effect. It will be a small effect, difficult for you to observe in that moment. But it will still be an effect.

Think about the last time you changed your mind about something important. (I hope you can remember such a time; none of us were born being right about everything!) Did it happen all at once? Was there just one, single knock-down argument that convinced you? Probably not. (On some mathematical and scientific questions I’ve had that experience: Oh, wow, yeah, that proof totally demolishes what I believed. Well, I guess I was wrong. But most beliefs aren’t susceptible to such direct proof.) More likely, you were presented with arguments from a variety of sources over a long span of time, gradually chipping away at what you thought you knew. In the moment, you might not even have admitted that you thought any differently—even to yourself. But as the months or years went by, you believed something quite different at the end than you had at the beginning.

Your goal should be to catalyze that process in other people. Don’t take someone who is currently a frothing neo-Nazi and expect them to start marching with Black Lives Matter. Take someone who is currently a little bit uncomfortable about immigration, and calm their fears. Don’t take someone who thinks all poor people are subhuman filth and try to get them to support a basic income. Take someone who is worried about food stamps adding to our national debt, and show them how it is a small portion of our budget. Don’t take someone who thinks global warming was made up by the Chinese and try to get them to support a ban on fossil fuels. Take someone who is worried about gas prices going up as a result of carbon taxes and show them that carbon offsets would add only about $100 per person per year while saving millions of lives.

And if you’re ever on the other side, and someone has just changed your mind, even a little bit—say so. Thank them for opening your eyes. I think a big part of why we don’t spend more time trying to honestly persuade people is that so few people acknowledge us when we do.

How we can actually solve the housing shortage

Sep 16 JDN 2458378

In previous posts I’ve talked about the housing crisis facing most of the world’s major cities. (Even many cities in Africa are now facing a housing crisis!) In this post, I’m going to look at the empirical data to see if we can find a way to solve this crisis.

Most of the answer, it turns out, is really not that complicated: Build more housing.

There is a little bit more to it than that, but only a little bit. The basic problem is simply that there are more households than there are houses to hold them.

One of the biggest hurdles to fixing the housing crisis comes ironically from the left, in resistance to so-called “gentrification”. Local resistance to new construction is one of the greatest obstacles to keeping housing affordable. State and federal regulations are generally quite sensible: No industrial waste near the playgrounds. It’s the local regulations that make new housing so difficult.

I can understand why people fight “gentrification”: They see new housing going in as housing prices increase, and naturally assume that new houses cause higher prices. But it’s really the other way around: High prices cause new construction, which brings prices down. By its nature, new housing is almost always more expensive than existing housing. Building new housing still brings down the overall price of housing, even when the new housing is expensive. Building luxury condos does make existing apartments more affordable—and not building anything most certainly does not.

California’s housing crisis is particularly severe: California has been building less than half the units needed to sustain its current population trend since the crash in 2008. It’s worst of all in the Bay Area, where 500,000 jobs were added since 2009—and only 50,000 homes. California also has a big problem with delays in the permit process: Typically it takes as long as three or four years between approval and actual breaking ground.

We are seeing this in Oakland currently: The government has approved an actually reasonable amount of housing for once (vastly more than what they usually do), and as a result they may have a chance at keeping Oakland affordable even as it grows its population and economy. And yet we still get serious journalists saying utter nonsense like The building boom and resulting gentrification are squeezing the city’s most vulnerable.” Building booms don’t cause gentrification. Building booms are the best response to gentrification. When you say things like that, you sound to an economist like you’re saying “Pizza is so expensive; we need to stop people from making pizza!”

Homeowners who want to increase their property values may actually be rational—if incredibly selfish and monopolistic—in trying to block new construction. But activists who oppose “gentrification” need to stop shooting themselves in the foot by fighting the very same development that would have made housing cheaper.

The simplest thing we can do is make it easier to build housing. Streamline the permit process, provide subsidies, remove unnecessary regulations. Housing is one of the few markets where I can actually see a lot of unnecessary regulations. We don’t need to require parking; we should provide better public transit instead. And while requiring solar panels (as the whole state is now doing) sounds nice, it makes everything a lot more expensive—and by only requiring it on new housing, you are effectively saying you don’t want any new housing. I love solar panels, but what you should be doing is subsidizing solar panels, not requiring them. Does that cost the state budget more? Yes. Raise taxes on something else (a particularly good idea: electricity consumption) if you have to. But by mandating solar panels without any subsidies to support them, you are effectively putting a tax on new housing—which is exactly what California does not need.

It’s still a good idea to create incentives to build not simply housing, but affordable housing. There are ways to do this as well. Denver did an excellent job in creating an Affordable Housing Fund that they immediately spent in converting vacant apartments into affordable housing units.

There are also good reasons to try to fight foreign ownership of housing (and really, speculative ownership of housing in general). There is a strong correlation between current account deficits and housing appreciation, which makes sense if foreign investors are buying up our housing and making it more expensive. If Trump could actually reduce our trade deficit, that would drive down our current account deficit and quite likely make our housing more affordable. Of course, he has absolutely no idea how to do that.

Victor Duggan has a pretty good plan for lowering housing prices in Ireland which includes a land tax (as I’ve discussed previously) and a tax on foreign ownership of real estate. I disagree with him about the “Help-to-Buy” program, however; I actually think that was a fine idea, since the goal is not simply to keep housing cheap but to get people into houses. That wealth transfer is going to raise prices at the producer side—increasing production—but not at the consumer side—because people get compensated by the tax rebate. The net result should be more housing without more cost for buyers. You could have done the same thing by subsidizing construction, but I actually like the idea of putting the money directly in the pockets of homeowners. The tax incidence shouldn’t be much different in the long run, but it makes for a much more appealing and popular program.

We must stop Kavanaugh now!

Post 257: Sep 16 JDN 2458378

I realized that this post can’t afford to wait a week. It’s too urgent.

It’s the best news I’ve heard in a long time: Paul Manafort has pled guilty and is cooperating with the investigation. This is a good day for Mueller, a bad day for Trump—and a great day for America.

Manafort himself has been involved in international corruption for decades. It’s a shame that he will now be getting off light on some of his crimes. But prosecutors would only do that if he had information to share with them that was of commensurate value—and I’m willing to bet that means he has information to implicate the Donald himself. Trump is right to be afraid.

Of course, we are still a long way from impeaching Trump, let alone removing him from office, much less actually restoring normalcy and legitimacy to our executive branch. We are still in a long, dark tunnel—but perhaps at last we are beginning to glimpse the light at the other end.

We should let Mueller and the federal prosecutors do their jobs; so far, they’ve done them quite well. In the meantime, instead of speculating about just how deep this rabbit hole of corruption goes (come on, we know Trump is corrupt; the only question is how much and with whom), it would be better to focus our attention on ensuring that Trump cannot leave a lasting legacy of destruction in his wake.

Priority number one is stopping Brett Kavanaugh. Kavanaugh may seem like just another right-wing justice (after Scalia, how much worse can it get, really?), but no, he really is worse than that. He barely even pretends to respect the Constitution or past jurisprudence, and has done an astonishingly poor job of hiding his political agenda or his personal devotion to Trump. The most fundamental flaw of the US Supreme Court is the near-impossibility of removing a justice once appointed; that makes it absolutely vital that we stop his appointment from being confirmed.

It isn’t just Roe v. Wade that will be overturned if he gets on the court (that, at least, I can understand why a substantial proportion of Americans would approve—abortion is a much more complicated issue than either pro-life or pro-choice demagogues would have you believe, as the Stanford Encyclopedia of Philosophy agrees). Kavanaugh looks poised to tear apart a wide variety of protections for civil rights, environmental sustainability, and labor protections. Sadly, our current Republican Party has become so craven, so beholden to party above country and all else, that they will most likely vote to advance, and ultimately, confirm, his nomination. And America, and all the world, will suffer for it, for decades to come.

If this happens, whom should we blame? Well, first of all, Trump and Kavanaugh themselves, of course. Second, the Republicans who confirmed Kavanaugh. Third, everyone who voted for Trump. But fourth? Everyone who didn’t vote for Clinton. Everyone who said, “She’s just as bad”, or “The two parties are the same”, or “He can’t possibly win”, or “We need real change”, and either sat home or voted for a third party—every one of those people has a little bit of blood on their hands. If the US Supreme Court spends the next 30 years tearing away the rights of women, racial minorities, LGBT people, and the working class, it will be at least a little bit their fault. When the asbestos returns to our buildings, the ozone layer resumes its decay, and all the world’s coastlines flood ever higher, they will bear at least some responsibility. All their claimed devotion to a morally purer “true” left wing will mean absolutely nothing—for it was only our “cynical” “corrupt” “neoliberal” pragmatism that even tried to hold the line. It is not enough to deserve to win—you must actually win.

But it’s not too late. Not yet. We can still make our voices heard. If you have any doubt about whether your Senator will vote against Kavanaugh (living in California, I frankly don’t—say what you will about Dianne Feinstein and Kamala Harris, they have made their opposition to Kavanaugh abundantly clear at every opportunity), write or call that Senator and tell them why they must.

The confirmation vote is this Thursday, September 20. Make your voice heard by then, or it may be too late.

For labor day, thoughts on socialism

Planned Post 255: Sep 9 JDN 2458371

This week includes Labor Day, the holiday where we are perhaps best justified in taking the whole day off from work and doing nothing. Labor Day is sort of the moderate social democratic counterpart to the explicitly socialist holiday May Day.

The right wing in this country has done everything in their power to expand the definition of “socialism”, which is probably why most young people now have positive views of socialism. There was a time when FDR was seen as an alternative to socialism; but now I’m pretty sure he’d just be called a socialist.

Because of this, I am honestly not sure whether I should be considered a socialist. I definitely believe in the social democratic welfare state epitomized by Scandinavia, but I definitely don’t believe in total collectivization of all means of production.

I am increasingly convinced that shareholder capitalism is a terrible system (the renowned science fiction author Charles Stross actually gave an excellent talk on this subject), but I would not want to abandon free markets.
The best answer might be worker-owned cooperatives. The empirical data is actually quite consistent in showing worker co-ops to be as efficient if not more efficient than conventional corporations, and by construction their pay systems produce less inequality than corporations.

Indeed, I think there is reason to believe that a worker co-op is a much more natural outcome for free markets under a level playing field than a conventional corporation, and the main reason we have corporations is actually that capitalism arose out of (and in response to) feudalism.

Think about it: Why should most things be owned by the top 1%? (Okay, not quite “most”: to be fair, the top 1% only owns 40% of all US net wealth.) Why is 80% of the value of the stock market held by the top 10% of the population?

Most things aren’t done by the top 1%. There are a handful of individuals (namely, scientists who make seminal breakthroughs: Charles Darwin, Marie Curie, Albert Einstein, Rosalind Franklin, Alan Turing, Jonas Salk) who are so super-productive that they might conceivably deserve billionaire-level compensation—but they are almost never the ones who are actually billionaires. If markets were really distributing capital to those who would use it most productively, there’s no reason to think that inequality would be so self-sustaining—much less self-enhancing as it currently seems to be.

But when you realize that capitalism emerged out of a system where the top 1% (or less) already owned most things, and did so by a combination of “divine right” ideology and direct, explicit violence, this inequality becomes a lot less baffling. We never had a free market on a level playing field. The closest we’ve ever gotten has always been through social-democratic reforms (like the New Deal and Scandinavia).

How does this result in corporations? Well, when all the wealth is held by a small fraction of individuals, how do you start a business? You have to borrow money from the people who have it. Borrowing makes you beholden to your creditors, and puts you at great risk if your venture fails (especially back in the days when there were debtor’s prisons—and we’re starting to go back that direction!). Equity provides an alternative: In exchange for giving them the downside risk if your venture fails, you also give your creditors—now shareholders—the upside risk if your venture succeeds. But at the end of the day when your business has succeeded, where did most of the profits go? Into the hands of the people who already had money to begin with, who did nothing to actually contribute to society. The world would be better off if those people had never existed and their wealth had simply been shared with everyone else.

Compare this to what would happen if we all started with similar levels of wealth. (How much would each of us have? Total US wealth of about $44 trillion, spread among a population of 328 million, is about $130,000 each. I don’t know about you, but I think I could do quite a bit with that.) When starting a business, you wouldn’t go heavily into debt or sign away ownership of your company to some billionaire; you’d gather a group of dedicated partners, each of whom would contribute money and effort into building the business. As you added on new workers, it would make sense to pool their assets, and give them a share of the company as well. The natural structure for your business would be not a shareholder corporation, but a worker-owned cooperative.

I think on some level the super-rich actually understand this. If you look closely at the sort of policies they fight for, they really aren’t capitalist. They don’t believe in free, unfettered markets where competition reigns. They believe in monopoly, lobbying, corruption, nepotism, and above all, low taxes. (There’s actually nothing in the basic principles of capitalism that says taxes should be low. Taxes should be as high as they need to be to cover public goods—no higher, and no lower.) They don’t want to provide nationalized healthcare, not because they believe that private healthcare competition is more efficient (no one who looks at the data for even a few minutes can honestly believe that—US healthcare is by far the most expensive in the world), but because they know that it would give their employees too much freedom to quit and work elsewhere. Donald Trump doesn’t want a world where any college kid with a brilliant idea and a lot of luck can overthrow his empire; he wants a world where everyone owes him and his family personal favors that he can call in to humiliate them and exert his power. That’s not capitalism—it’s feudalism.

Crowdfunding also provides an interesting alternative; we might even call it the customer-owned cooperative. Kickstarter and Patreon provide a very interesting new economic model—still entirely within the realm of free markets—where customers directly fund production and interact with producers to decide what will be produced. This might turn out to be even more efficient—and notice that it would run a lot more smoothly if we had all started with a level playing field.

Establishing such a playing field, of course, requires a large amount of redistribution of wealth. Is this socialism? If you insist. But I think it’s more accurate to describe it as reparations for feudalism (not to mention colonialism). We aren’t redistributing what was fairly earned in free markets; we are redistributing what was stolen, so that from now on, wealth can be fairly earned in free markets.