Why risking nuclear war should be a war crime

Nov 19, JDN 2458078

“What is the value of a human life?” is a notoriously difficult question, probably because people keep trying to answer it in terms of dollars, and it rightfully offends our moral sensibilities to do so. We shouldn’t be valuing people in terms of dollars—we should be valuing dollars in terms of their benefits to people.

So let me ask a simpler question: Does the value of an individual human life increase, decrease, or stay the same, as we increase the number of people in the world?

A case can be made that it should stay the same: Why should my value as a person depend upon how many other people there are? Everything that I am, I still am, whether there are a billion other people or a thousand.

But in fact I think the correct answer is that it decreases. This is for two reasons: First, anything that I can do is less valuable if there are other people who can do it better. This is true whether we’re talking about writing blog posts or ending world hunger. Second, and most importantly, if the number of humans in the world gets small enough, we begin to face danger of total permanent extinction.

If the value of a human life is constant, then 1,000 deaths is equally bad whether it happens in a population of 10,000 or a population of 10 billion. That doesn’t seem right, does it? It seems more reasonable to say that losing ten percent should have a roughly constant effect; in that case losing 1,000 people in a population of 10,000 is equally bad as losing 1 billion in a population of 10 billion. If that seems too strong, we could choose some value in between, and say perhaps that losing 1,000 out of 10,000 is equally bad as losing 1 million out of 1 billion. This would mean that the value of 1 person’s life today is about 1/1,000 of what it was immediately after the Toba Event.

Of course, with such uncertainty, perhaps it’s safest to assume constant value. This seems the fairest, and it is certainly a reasonable approximation.

In any case, I think it should be obvious that the inherent value of a human life does not increase as you add more human lives. Losing 1,000 people out of a population of 7 billion is not worse than losing 1,000 people out of a population of 10,000. That way lies nonsense.

Yet if we agree that the value of a human life is not increasing, this has a very important counter-intuitive consequence: It means that increasing the risk of a global catastrophe is at least as bad as causing a proportional number of deaths. Specifically, it implies that a 1% risk of global nuclear war is worse than killing 10 million people outright.

The calculation is simple: If the value of a human life is a constant V, then the expected utility (admittedly, expected utility theory has its flaws) from killing 10 million people is -10 million V. But the expected utility from a 1% risk of global nuclear war is 1% times -V times the expected number of deaths from such a nuclear war—and I think even 2 billion is a conservative estimate. (0.01)(-2 billion) V = -20 million V.

This probably sounds too abstract, or even cold, so let me put it another way. Suppose we had the choice between two worlds, and these were the only worlds we could choose from. In world A, there are 100 leaders who each make choices that result in 10 million deaths. In world B, there are 100 leaders who each make choices that result in a 1% chance of nuclear war. Which world should we choose?

The choice is a terrible one, to be sure.

In world A, 1 billion people die.

Yet what happens in world B?

If the risks are independent, we can’t just multiply by 100 to get a guarantee of nuclear war. The actual probability is 1-(1-0.01)^100 = 63%. Yet even so, (0.63)(2 billion) = 1.26 billion. The expected number of deaths is higher in world B. Indeed, the most likely scenario is that 2 billion people die.

Yet this is probably too conservative. The risks are most likely positively correlated; two world leaders who each take a 1% chance of nuclear war probably do so in response to one another. Therefore maybe adding up the chances isn’t actually so unreasonable—for all practical intents and purposes, we may be best off considering nuclear war in world B as guaranteed to happen. In that case, world B is even worse.

And that is all assuming that the nuclear war is relatively contained. Major cities are hit, then a peace treaty is signed, and we manage to rebuild human civilization more or less as it was. This is what most experts on the issue believe would happen; but I for one am not so sure. The nuclear winter and total collapse of institutions and infrastructure could result in a global apocalypse that would result in human extinctionnot 2 billion deaths but 7 billion, and an end to all of humanity’s projects once and forever This is the kind of outcome we should be prepared to do almost anything to prevent.

What does this imply for global policy? It means that we should be far more aggressive in punishing any action that seems to bring the world closer to nuclear war. Even tiny increases in risk, of the sort that would ordinarily be considered negligible, are as bad as murder. A measurably large increase is as bad as genocide.

Of course, in practice, we have to be able to measure something in order to punish it. We can’t have politicians imprisoned over 0.000001% chances of nuclear war, because such a chance is so tiny that there would be no way to attain even reasonable certainty that such a change had even occurred, much less who was responsible.

Even for very large chances—and in this context, 1% is very large—it would be highly problematic to directly penalize increasing the probability, as we have no consistent, fair, objective measure of that probability.

Therefore in practice what I think we must do is severely and mercilessly penalize certain types of actions that would be reasonably expected to increase the probability of catastrophic nuclear war.

If we had the chance to start over from the Manhattan Project, maybe simply building a nuclear weapon should be considered a war crime. But at this point, nuclear proliferation has already proceeded far enough that this is no longer a viable option. At least the US and Russia for the time being seem poised to maintain their nuclear arsenals, and in fact it’s probably better for them to keep maintaining and updating them rather than leaving decades-old ICBMs to rot.

What can we do instead?

First, we probably need to penalize speech that would tend to incite war between nuclear powers. Normally I am fiercely opposed to restrictions on speech, but this is nuclear war we’re talking about. We can’t take any chances on this one. If there is even a slight chance that a leader’s rhetoric might trigger a nuclear conflict, they should be censored, punished, and probably even imprisoned. Making even a veiled threat of nuclear war is like pointing a gun at someone’s head and threatening to shoot them—only the gun is pointed at everyone’s head simultaneously. This isn’t just yelling “fire” in a crowded theater; it’s literally threatening to burn down every theater in the world at once.

Such a regulation must be designed to allow speech that is necessary for diplomatic negotiations, as conflicts will invariably arise between any two countries. We need to find a way to draw the line so that it’s possible for a US President to criticize Russia’s intervention in the Ukraine or for a Chinese President to challenge US trade policy, without being accused of inciting war between nuclear powers. But one thing is quite clear: Wherever we draw that line, President Trump’s statement about “fire and fury” definitely crosses it. This is a direct threat of nuclear war, and it should be considered a war crime. That reason by itself—let alone his web of Russian entanglements and violations of the Emoluments Clause—should be sufficient to not only have Trump removed from office, but to have him tried at the Hague. Impulsiveness and incompetence are no excuse when weapons of mass destruction are involved.

Second, any nuclear policy that would tend to increase first-strike capability rather than second-strike capability should be considered a violation of international law. In case you are unfamiliar with such terms: First-strike capability consists of weapons such as ICBMs that are only viable to use as the opening salvo of an attack, because their launch sites can be easily located and targeted. Second-strike capability consists of weapons such as submarines that are more concealable, so it’s much more likely that they could wait for an attack to happen, confirm who was responsible and how much damage was done, and then retaliate afterward.
Even that retaliation would be difficult to justify: It’s effectively answering genocide with genocide, the ultimate expression of “an eye for an eye” writ large upon humanity’s future. I’ve previously written about my Credible Targeted Conventional Response strategy that makes it both more ethical and more credible to respond to a nuclear attack with a non-nuclear retaliation. But at least second-strike weapons are not inherently only functional at starting a nuclear war. A first-strike weapon can theoretically be fired in response to a surprise attack, but only before the attack hits you—which gives you literally minutes to decide the fate of the world, most likely with only the sketchiest of information upon which to base your decision. Second-strike weapons allow deliberation. They give us a chance to think carefully for a moment before we unleash irrevocable devastation.

All the launch codes should of course be randomized onetime pads for utmost security. But in addition to the launch codes themselves, I believe that anyone who wants to launch a nuclear weapon should be required to type, letter by letter (no copy-pasting), and then have the machine read aloud, Oppenheimer’s line about Shiva, “Now I am become Death, the destroyer of worlds.” Perhaps the passphrase should conclude with something like “I hereby sentence millions of innocent children to death by fire, and millions more to death by cancer.” I want it to be as salient as possible in the heads of every single soldier and technician just exactly how many innocent people they are killing. And if that means they won’t turn the key—so be it. (Indeed, I wouldn’t mind if every Hellfire missile required a passphrase of “By the authority vested in me by the United States of America, I hereby sentence you to death or dismemberment.” Somehow I think our drone strike numbers might go down. And don’t tell me they couldn’t; this isn’t like shooting a rifle in a firefight. These strikes are planned days in advance and specifically designed to be unpredictable by their targets.)

If everyone is going to have guns pointed at each other, at least in a second-strike world they’re wearing body armor and the first one to pull the trigger won’t automatically be the last one left standing.

Third, nuclear non-proliferation treaties need to be strengthened into disarmament treaties, with rapid but achievable timelines for disarmament of all nuclear weapons, starting with the nations that have the largest arsenals. Random inspections of the disarmament should be performed without warning on a frequent schedule. Any nation that is so much as a day late on their disarmament deadlines needs to have its leaders likewise hauled off to the Hague. If there is any doubt at all in your mind whether your government will meet its deadlines, you need to double your disarmament budget. And if your government is too corrupt or too bureaucratic to meet its deadlines even if they try, well, you’d better shape up fast. We’ll keep removing and imprisoning your leaders until you do. Once again, nothing can be left to chance.

We might want to maintain some small nuclear arsenal for the sole purpose of deflecting asteroids from colliding with the Earth. If so, that arsenal should be jointly owned and frequently inspected by both the United States and Russia—not just the nuclear superpowers, but also the only two nations with sufficient rocket launch capability in any case. The launch of the deflection missiles should require joint authorization from the presidents of both nations. But in fact nuclear weapons are probably not necessary for such a deflection; nuclear rockets would probably be a better option. Vaporizing the asteroid wouldn’t accomplish much, even if you could do it; what you actually want to do is impart as much sideways momentum as possible.

What I’m saying probably sounds extreme. It may even seem unjust or irrational. But look at those numbers again. Think carefully about the value of a human life. When we are talking about a risk of total human extinction, this is what rationality looks like. Zero tolerance for drug abuse or even terrorism is a ridiculous policy that does more harm than good. Zero tolerance for risk of nuclear war may be the only hope for humanity’s ongoing survival.

Throughout the vastness of the universe, there are probably billions of civilizations—I need only assume one civilization for every hundred galaxies. Of the civilizations that were unwilling to adopt zero tolerance policies on weapons of mass destruction and bear any cost, however unthinkable, to prevent their own extinction, there is almost boundless diversity, but they all have one thing in common: None of them will exist much longer. The only civilizations that last are the ones that refuse to tolerate weapons of mass destruction.

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

Oct 22, JDN 2458049

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

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

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

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

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

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

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

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

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

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

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

Think of this as a moral recession

August 27, JDN 2457993

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This is a battle for the soul of America

July 9, JDN 2457944

At the time of writing, I just got back from a protest march against President Trump in Santa Ana (the featured photo is one I took at the march). I had intended to go to the much larger sister protest in Los Angeles, but the logistics were too daunting. On the upside, presumably the marginal impact of my attendance was higher at the smaller event.

Protest marches are not a common pastime of mine; I am much more of an ivory-tower policy wonk than a boots-on-the-ground political activist. The way that other people seem to be allergic to statistics, I am allergic to a lack of statistics when broad claims are made with minimal evidence. Even when I basically agree with everything being said, I still feel vaguely uncomfortable marching and chanting in unison (and constantly reminded of that scene from Life of Brian). But I made an exception for this one, because Trump represents a threat to the soul of American democracy.

We have had bad leaders many times before—even awful leaders, even leaders whose bad decisions resulted in the needless deaths of thousands. But not since the end of the Civil War have we had leaders who so directly threatened the core institutions of America itself.

We must keep reminding ourselves: This is not normal. This is not normal! Donald Trump’s casual corruption, overwhelming narcissism, authoritarianism, greed, and utter incompetence (not to mention his taste in decor) make him more like Idi Amin or Hugo Chavez than like George H.W. Bush or Ronald Reagan. (Even the comparison with Vladimir Putin would be too flattering to Trump; Putin at least is competent.) He has personally publicly insulted over 300 people, places, and things—and counting.

Trump lies almost constantly, surrounds himself with family members and sycophants, refuses to listen to intelligence briefings, and personally demeans and even threatens journalists who criticize him. Every day it seems like there is a new scandal, more outrageous than the last; and after so long, this almost seems like a strategy. Every day he finds some new way to offend and undermine the basic norms of our society, and eventually he hopes to wear us down until we give up fighting.

It is certainly an exaggeration, and perhaps a dangerous one, to say that Donald Trump is the next Adolf Hitler. But there are important historical parallels between the rise of Trump and the rise of many other populist authoritarian demagogues. He casually violates democratic norms of civility, honesty, and transparency, and incentivizes the rest of us to do the same—a temptation we must resist. Political scientists and economists are now issuing public warnings that our democratic institutions are not as strong as we may think (though, to be fair, others argue that they are indeed strong enough).

It was an agonizingly close Presidential election. Even the tiniest differences could have flipped enough states to change the outcome. If we’d had a better voting system, it would not have happened; a simple plurality vote would have elected Hillary Clinton, and as I argued in a previous post, range voting would probably have chosen Bernie Sanders. Therefore, we must not take this result as a complete indictment of American society or a complete failure of American democracy. But let it shake us out of our complacency; democracy is only as strong as the will of its citizens to defend it.

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.

Our government just voted to let thousands of people die for no reason

May 14, JDN 2457888

The US House of Representatives just voted to pass a bill that will let thousands of Americans die for no reason. At the time of writing it hasn’t yet passed the Senate, but it may yet do so. And if it does, there can be little doubt that President Trump (a phrase I still feel nauseous saying) will sign it.

Some already call it Trumpcare (or “Trump-doesn’t-care”); but officially they call it the American Health Care Act. I think we should use the formal name, because it is a name which is already beginning to take on a dark irony; yes, only in America would such a terrible health care act be considered. Every other highly-developed country has a universal healthcare system; most of them have single-payer systems (and this has been true for over two decades).
The Congressional Budget Office estimates that the AHCA will increase the number of uninsured Americans by 24 million. Of these, 14 million will be people near the poverty line who lose access to Medicaid.

In 2009, a Harvard study estimated that 45,000 Americans die each year because they don’t have health insurance. This is on the higher end; other studies have estimated more like 20,000. But based on the increases in health insurance rates under Obamacare, somewhere between 5,000 and 10,000 American lives have been saved each year since it was enacted. That reduction came from insuring about 10 million people who weren’t insured before.

Making a linear projection, we can roughly estimate the number of additional Americans who will die every year if this American Health Care Act is implemented. (24 million/10 million)(5,000 to 10,000) = 12,000 to 24,000 deaths per year. For comparison, there are about 14,000 total homicides in the United States each year (and we have an exceptionally high homicide rate for a highly-developed country).
Indeed, morally, it might make sense to count these deaths as homicides (by the principle of “depraved indifference”); Trump therefore intends to double our homicide rate.

Of course, it will not be prosecuted this way. And one can even make an ethical case for why it shouldn’t be, why it would be impossible to make policy if every lawmaker had to face the consequences of every policy choice. (Start a war? A hundred thousand deaths. Fail to start a war in response to a genocide? A different hundred thousand deaths.)

But for once, I might want to make an exception. Because these deaths will not be the result of a complex policy trade-off with merits and demerits on both sides. They will not be the result of honest mistakes or unforeseen disasters. These people will die out of pure depraved indifference.

We had a healthcare bill that was working. Indeed, Obamacare was remarkably successful. It increased insurance rates and reduced mortality rates while still managing to slow the growth in healthcare expenditure.

The only real cost was an increase in taxes on the top 5% (and particularly the top 1%) of the income distribution. But the Republican Party—and make no mistake, the vote was on almost completely partisan lines, and not a single Democrat supported it—has now made it a matter of official policy that they care more about cutting taxes on millionaires than they do about poor people dying from lack of healthcare.

Yet there may be a silver lining in all of this: Once people saw that Obamacare could work, the idea of universal healthcare in the United States began to seem like a serious political position. The Overton Window has grown. Indeed, it may even have shifted to the left for once; the responses to the American Health Care Act have been almost uniformly comprised of shock and outrage, when really what the bill does is goes back to the same awful system we had before. Going backward and letting thousands of people die for no reason should appall people—but I feared that it might not, because it would seem “normal”. We in America have grown very accustomed to letting poor people die in order to slightly increase the profits of billionaires, and I thought this time might be no different—but it was different. Once Obamacare actually passed and began to work, people really saw what was happening—that all this suffering and death wasn’t necessary, it wasn’t an inextricable part of having a functioning economy. And now that they see that, they aren’t willing to go back.

Tax plan possibilities

Mar 26, JDN 2457839

Recently President Trump (that phrase may never quite feel right) began presenting his new tax plan. To be honest, it’s not as ridiculous as I had imagined it might be. I mean, it’s still not very good, but it’s probably better than Reagan’s tax plan his last year in office, and it’s not nearly as absurd as the half-baked plan Trump originally proposed during the campaign.

But it got me thinking about the incredible untapped potential of our tax system—the things we could achieve as a nation, if we were willing to really commit to them and raise taxes accordingly.

A few years back I proposed a progressive tax system based upon logarithmic utility. I now have a catchy name for that tax proposal; I call it the logtax. It depends on two parameters—a poverty level, at which the tax rate goes to zero; and what I like to call a metarate—the fundamental rate that sets all the actual tax rates by the formula.

For the poverty level, I suggest we use the highest 2-household poverty level set by the Department of Health and Human Services: Because of Alaska’s high prices, that’s the Alaska poverty level, and the resulting figure is $20,290—let’s round to $20,000.

I would actually prefer to calculate taxes on an individual basis—I see no reason to incentivize particular household arrangements—but as current taxes are calculated on a household basis, I’m going to use that for now.

The metarate can be varied, and in the plans below I will compare different options for the metarate.

I will compare six different tax plans:

  1. Our existing tax plan, set under the Obama administration
  2. Trump’s proposed tax plan
  3. A flat rate of 30% with a basic income of $12,000, replacing welfare programs and Medicaid
  4. A flat rate of 40% with a basic income of $15,000, replacing welfare programs and Medicaid
  5. A logtax with a metarate of 20%, all spending intact
  6. A logtax with a metarate of 25% and a basic income of $12,000, replacing welfare programs and Medicaid
  7. A logtax with a metarate of 35% and a basic income of $15,000, cutting military spending by 50% and expanding Medicare to the entire population while eliminating Medicare payroll taxes

To do a proper comparison, I need estimates of the income distribution in the United States, in order to properly estimate the revenue from each type of tax. For that I used US Census data for most of the income data, supplementing with the World Top Incomes database for the very highest income brackets. The household data is broken up into brackets of $5,000 and only goes up to $250,000, so it’s a rough approximation to use the average household income for each bracket, but it’s all I’ve got.

The current brackets are 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. These are actually marginal rates, not average rates, which makes the calculation a lot more complicated. I did it properly though; for example, when you start paying the marginal rate of 28%, your average rate is really only 20.4%.

Worst of all, I used static scoring—that is, I ignored the Laffer Effect by which increasing taxes changes incentives and can change pre-tax incomes. To really do this analysis properly, one should use dynamic scoring, taking these effects into account—but proper dynamic scoring is an enormous undertaking, and this is a blog post, not my dissertation.

Still, I was able to get pretty close to the true figures. The actual federal budget shows total revenue net of payroll taxes to be $2.397 trillion, whereas I estimated $2.326 trillion; the true deficit is $608 billion and I estimated $682 billion.

Under Trump’s tax plan, almost all rates are cut. He also plans to remove some deductions, but all reports I could find on the plan were vague as to which ones, and with data this coarse it’s very hard to get any good figures on deduction amounts anyway. I also want to give him credit where it’s due: It was a lot easier to calculate the tax rates under Trump’s plan (but still harder than under mine…). But in general what I found was the following:

Almost everyone pays less income tax under Trump’s plan, by generally about 4-5% of their income. The poor benefit less or are slightly harmed; the rich benefit a bit more.

For example, a household in poverty making $12,300 would pay $1,384 currently, but $1,478 under Trump’s plan, losing $94 or 0.8% of their income. An average household making $52,000 would pay $8,768 currently but only $6,238 under Trump’s plan, saving $2,530 or about 4.8% of their income. A household making $152,000 would pay $35,580 currently but only $28,235 under Trump’s plan, saving $7,345 or again about 4.8%. A top 1% household making $781,000 would pay $265,625 currently, but only $230,158 under Trump’s plan, saving $35,467 or about 4.5%. A top 0.1% household making $2,037,000 would pay $762,656 currently, but only $644,350 under Trump’s plan, saving $118,306 or 5.8% of their income. A top 0.01% household making $9,936,000 would pay $3,890,736 currently, but only $3,251,083 under Trump’s plan, saving $639,653 or 6.4% of their income.

Because taxes are cut across the board, Trump’s plan would raise less revenue. My static scoring will exaggerate this effect, but only moderately; my estimate says we would lose over $470 billion in annual revenue, while the true figure might be $300 billion. In any case, Trump will definitely increase the deficit substantially unless he finds a way to cut an awful lot of spending elsewhere—and his pet $54 billion increase to the military isn’t helping in that regard. My estimate of the new deficit under Trump’s plan is $1.155 trillion—definitely not the sort of deficit you should be running during a peacetime economic expansion.

Let’s see what we might have done instead.

If we value simplicity and ease of calculation, it’s hard to beat a flat tax plus basic income. With a flat tax of 30% and a basic income of $12,000 per household, the poor do much better off because of the basic income, while the rich do a little better because of the flat tax, and the middle class feels about the same because the two effects largely cancel. Calculating your tax liability now couldn’t be easier; multiply your income by 3, remove a zero—that’s what you owe in taxes. And how much do you get in basic income? The same as everyone else, $12,000.

Using the same comparison households: The poor household making $12,300 would now receive $8,305—increasing their income by $9,689 or 78.8% relative to the current system. The middle-class household making $52,000 would pay $3,596, saving $5,172 or 10% of their income. The upper-middle-class household making $152,000 would now pay $33,582, saving only $1998 or 1.3% of their income. The top 1% household making $782,000 would pay $234,461, saving $31,164 or 4.0%. The top 0.1% household making $2,037,000 would pay $611,000, saving $151,656 or 7.4%. Finally, the top 0.01% household making $9,936,000 would pay $2,980,757, saving $910,000 or 9.1%.

Thus, like Trump’s plan, the tax cut almost across the board results in less revenue. However, because of the basic income, we can now justify cutting a lot of spending on social welfare programs. I estimated we could reasonably save about $630 billion by cutting Medicaid and other social welfare programs, while still not making poor people worse off because of the basic income. The resulting estimated deficit comes in at $1.085 trillion, which is still too large—but less than what Trump is proposing.

If I raise the flat rate to 40%—just as easy to calculate—I can bring that deficit down, even if I raise the basic income to $15,000 to compensate. The poverty household now receives $10,073, and the other representative households pay $5,974; $45,776; $297,615; $799,666; and $3,959,343 respectively. This means that the poor are again much better off, the middle class are about the same, and the rich are now substantially worse off. But what’s our deficit now? $180 billion—that’s about 1% of GDP, the sort of thing you can maintain indefinitely with a strong currency.

Can we do better than this? I think we can, with my logtax.

I confess that the logtax is not quite as easy to calculate as the flat tax. It does require taking exponents, and you can’t do it in your head. But it’s actually still easier than the current system, because there are no brackets to keep track of, no discontinuous shifts in the marginal rate. It is continuously progressive for all incomes, and the same formula can be used for all incomes from zero to infinity.
The simplest plan just replaces the income tax with a logtax of 20%. The poor household now receives $1,254, just from the automatic calculation of the tax—no basic income was added. The middle-class household pays $9,041, slightly more than what they are currently paying. Above that, people start paying more for sure: $50,655; $406,076; $1,228,795; and $7,065,274 respectively.

This system is obviously more progressive, but does it raise sufficient revenue? Why, as a matter of fact it removes the deficit entirely. The model estimates that the budget would now be at surplus of $110 billion. This is probably too optimistic; under dynamic scoring the distortions are probably going to cut the revenue a little. But it would almost certainly reduce the deficit, and very likely eliminate it altogether—without any changes in spending.

The next logtax plan adds a basic income of $12,000. To cover this, I raised the metarate to 25%. Now the poor household is receiving $11,413, the middle-class household is paying a mere $1,115, and the other households are paying $50,144; $458,140; $1,384,475; and $7,819,932 respectively. That top 0.01% household isn’t going to be happy, as they are now paying 78% of their income where in our current system they would pay only 39%. But their after-tax income is still over $2 million.

How does the budget look now? As with the flat tax plan, we can save about $630 billion by cutting redundant social welfare programs. So we are once again looking at a surplus, this time of about $63 billion. Again, the dynamic scoring might show some deficit, but definitely not a large one.

Finally, what if I raise the basic income to $15,000 and raise the metarate to 35%? The poor household now receives $14,186, while the median household pays $2,383. The richer households of course foot the bill, paying $64,180; $551,031; $1,618,703; and $8,790,124 respectively. Oh no, the top 0.01% household will have to make do with only $1.2 million; how will they survive!?

This raises enough revenue that it allows me to do some even more exciting things. With a $15,000 basic income, I can eliminate social welfare programs for sure. But then I can also cut military spending, say in half—still leaving us the largest military in the world. I can move funds around to give Medicare to every single American, an additional cost of about twice what we currently pay for Medicare. Then Medicaid doesn’t just get cut; it can be eliminated entirely, folded into Medicare. Assuming that the net effect on total spending is zero, the resulting deficit is estimated at only $168 billion, well within the range of what can be sustained indefinitely.

And really, that’s only the start. Once you consider all the savings on healthcare spending—an average of $4000 per person per year, if switching to single-payer brings us down to the average of other highly-developed countries. This is more than what the majority of the population would be paying in taxes under this plan—meaning that once you include the healthcare benefits, the majority of Americans would net receive money from the government. Compared to our current system, everyone making under about $80,000 would be better off. That is what we could be doing right now—free healthcare for everyone, a balanced budget (or close enough), and the majority of Americans receiving more from the government than they pay in taxes.

These results are summarized in the table below. (I also added several more rows of representative households—though still not all the brackets I used!) I’ve color-coded who would be paying less in tax in green and who would be more in tax in red under each plan, compared to our current system. This color-coding is overly generous to Trump’s plan and the 30% flat tax plan, because it doesn’t account for the increased government deficit (though I did color-code those as well, again relative to the current system). And yet, over 50% of households make less than $51,986, putting the poorest half of Americans in the green zone for every plan except Trump’s. For the last plan, I also color-coded those between $52,000 and $82,000 who would pay additional taxes, but less than they save on healthcare, thus net saving money in blue. Including those folks, we’re benefiting over 69% of Americans.

Household

pre-tax income

Current tax system Trump’s tax plan Flat 30% tax with $12k basic income Flat 40% tax with $15k basic income Logtax 20% Logtax 25% with $12k basic income Logtax 35% with $15k basic income, single-payer healthcare
$1,080 $108 $130 -$11,676 -$14,568 -$856 -$12,121 -$15,173
$12,317 $1,384 $1,478 -$8,305 -$10,073 -$1,254 -$11,413 -$14,186
$22,162 $2,861 $2,659 -$5,351 -$6,135 $450 -$9,224 -$11,213
$32,058 $4,345 $3,847 -$2,383 -$2,177 $2,887 -$6,256 -$7,258
$51,986 $8,768 $6,238 $3,596 $5,794 $9,041 $1,115 $2,383
$77,023 $15,027 $9,506 $11,107 $15,809 $18,206 $11,995 $16,350
$81,966 $16,263 $10,742 $12,590 $17,786 $20,148 $14,292 $17,786
$97,161 $20,242 $14,540 $17,148 $23,864 $26,334 $21,594 $28,516
$101,921 $21,575 $15,730 $18,576 $27,875 $30,571 $23,947 $31,482
$151,940 $35,580 $28,235 $33,582 $45,776 $50,655 $50,144 $64,180
$781,538 $265,625 $230,158 $222,461 $297,615 $406,076 $458,140 $551,031
$2,036,666 $762,656 $644,350 $599,000 $799,666 $1,228,795 $1,384,475 $1,618,703
$9,935,858 $3,890,736 $3,251,083 $2,968,757 $3,959,343 $7,065,274 $7,819,932 $8,790,124
Change in federal spending $0 $0 -$630 billion -$630 billion $0 -$630 billion $0
Estimated federal surplus -$682 billion -$1,155 billion -$822 billion -$180 billion $110 billion $63 billion -$168 billion