Trump

Wonderful news from Hungary

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Apr 19 JDN 246150

Hungary’s recent election results were just about as good as they could possibly have been. Victor Orban was not only defeated, but crushed; Magyar’s party didn’t just win, they won a supermajority. They now have the power to implement sweeping reforms that could prevent authoritarians like Orban from ever taking power in Hungary again.

Already Magyar has suspended Hungarian state media broadcasts and released $90 billion in EU aid for Ukraine that Hungary had been holding up. These are immediate, concrete results from just his first few days in office.

I have two goals for this post:

First, I just want to celebrate.

This is a huge victory for democracy, not just in Hungary, but across Europe and indeed around the world. It brings hope in a time when we needed it most. It proves to the world that authoritarians can be toppled, and democracy can be restored—sometimes even without bloodshed.

There is a light at the end of this tunnel. We must keep pressing forward.

Second, I want to use it as a model.

I think the biggest thing that this event teaches us is that democracy and nonviolence can succeed. This is something we should already have recognized from the empirical evidence, but rarely do we see such a clear, unambiguous example of a triumphant victory by nonviolent, democratic means alone.

Hungarians protested, and lobbied, and voted, and they did so in a united voice against Orban’s tyranny. But there was very little violence—and most of what there was, was instigated by the government against peaceful protesters. (Remember, nonviolence doesn’t mean nobody gets hurt.)

And once he took power, Magyar already began the process of reform. It will no doubt be a long and difficult process, and may take years to complete. Orban and his party are defeated, but not destroyed, and they will continue to mount resistance. But Magyar did not wait. He did not try to reconcile or compromise. He immediately set out to make things better.

This is what the Democrats must do when they win the midterm elections this year. They must not be timid and careful, not taking any bold moves to avoid upsetting “moderates”. (Anyone who still thinks Trump belongs anywhere near public office at this point is not and never was a moderate. At best, they might be a low-information voter who literally doesn’t know what’s going on.) They must act swiftly and decisively to repair the damage Trump has done and fix our system so that no similar maniac can do such damage again in the future. This is exactly what Biden failed to do when he took office in 2020. (Yes, I know that Congress and the Supreme Court fought him on a lot of things. But there was definitely still more that he could have done and didn’t, and people are suffering now because of it.)

Ideally, in fact, they would impeach and remove Trump before 2028. (And if it’s not too much trouble, try him at the Hague for all the children he starved?) But if they don’t manage to do that, at the very least, they must ensure that they continue to have such a strong campaign for Congress and the President in 2028 that they take both of those branches of government—and then, they need to pack the Supreme Court in order to secure the third. This damage will not be undone until Republicans are completely removed from the seats of national power, and stay removed for at least a decade.

Of course, in order for that to happen, the Democrats are going to need to win a lot of elections. And that isn’t just on them—it’s also on us. They need to run better candidates, we need to vote for those candidates, and we need to hold those candidates accountable for taking the bold measures necessary to repair America after this disaster. They need to stop taking their own electoral victories for granted: Yes, Clinton and Biden absolutely deserved to win all three elections. But they only actually won one of them, and that is what matters. The Democratic Party should be looking long and hard at what went wrong in 2016 and 2024, and learning from those mistakes.

I’m not even saying the Democrats are perfect; they are not. (Neither is Magyar.) But we need a powerful party to defeat the Republicans and restore American democracy, and only the Democrats are currently in a position to fulfill that role. After the Republicans are totally destroyed and only a distant, unsettling memory like the Nazis, then you can start voting for the Greens or the Libertarians.

And since “Magyar” basically just means “Hungarian”, maybe we should run a Presidential candidate named something like John T. American, just in case.

This is fascism.

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Feb 1 JDN 2461073

The Party told you to ignore the evidence of your eyes and ears. It was their final, most essential command.

– George Orwell, 1984

As I write this, we haven’t even finished January of 2026, and already there have been not one, but two blatant, public executions of innocent people by federal agents that occurred in broad daylight and on video.

I already thought the video of Renee Good’s shooting was pretty clear, but the videos of Alex Pretti’s just leave no room for doubt at all. He was disarmed and restrained when they shot him; this was an execution.

I have heard liberals mocked by leftists as “people who are okay with the government killing people as long as the right paperwork is filed”. This is sort of true, actually—if by “paperwork” you mean due process of law. You know, the foundation of liberal democracy? That little thing?

Yes, I am actually okay with (some) military actions, police shootings in self-defense, and even executions of convicted murderers (though I should note that actually many liberals aren’t okay with the latter). I think that a world where nobody kills anybody is a pipe dream, and the best we can reasonably hope for is one where there are few killings, most of them are justified, and the ones that aren’t are punished. (And if your problem is specifically with the government killing people… who do you think should have that authority, if not democratically-elected representatives?) I understand that the government needs to kill people sometimes, but I expect those killings to be limited to justifiable wars, imminent threats to life and limb, or the result of a proper conviction by a fair jury trial.

But this was not due process of law. There was no judge, no jury, no trial—there wasn’t even a warrant or an arrest. Nor was it an in-the-moment response to an imminent threat—even a perceived one. The videos are crystal-clear: Alex Pretti was no threat to the border patrol agents who shot him to death.

This is fascism.

It’s not like fascism. It’s not toward fascism. This isn’t how it starts. Masked men executing innocent people in broad daylight is fascism. It’s here. It’s happening.

This does not necessarily mean that our entire country has fallen to fascism; there is still hope that we can stop this from happening again, and also hope that this will not escalate into a full-blown civil war. But shooting an innocent unarmed man without a judge or a jury is an inherently, irredeemably fascist act. If the men responsible are not tried for murder, it will be a grave injustice—and it could very well escalate into much larger-scale violence.

I wish I could say this sort of thing is totally unprecedented; but no, it’s not. The United States government has done a lot of horrible things over the years, from slavery to the Trail of Tears to the Japanese internment. I think that our country has been in a profound state of tension from the very beginning, between the high-minded ideals of “all men are created equal” and the deep-seated tribalism that comes naturally to nearly all human beings. I don’t think America is uniquely evil; in fact, I think we are especially good—it’s just that even a good country often does horrible things.

And there is something different about this. It’s not the first time our government has killed anyone, or even killed anyone for an obviously unjustified reason. But I think it might be the first time the government has publicly and blatantly lied about the circumstances in a way that can be directly refuted by video evidence. They aren’t painting it as a “mistake” or saying it was “a few bad apples”; they are actually trying to claim justification where obviously none exists. They are asking you to believe what they say over what you can see with your own two eyes.

This is what authoritarian states do. They try to undermine your belief in objective reality. They try to gaslight you into believing what they say instead of what you can see. And even in an extremely prosperous, well-educated country, they have been shockingly effective at it.

This is what we warned against when Trump was running for election.

Maybe it’s not productive to say “We told you so”, but, uh, we told you so.

He’s done so many terrible things, and has been enabled so many times by Republicans in Congress and the right-wing justices of the Supreme Court. As a result, it’s hard to draw any bright lines in the sand. But if you really want to draw one, this might be a good one to draw.

Honestly, the best time to turn against Trump was ten years ago; but people are finally turning against him, and better late than never.

Hope for the new year

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Jan 4 JDN 2461045

We have just entered 2026. I remember that around this time last year I felt a deep, visceral despair: Trump had just been elected and was about to be inaugurated, and I could only dread what the next year would bring. For the next several weeks I posted sections of my book The Logic of Kindness (at this point, it is probably never actually going to be published?), partly because I felt—and still feel—that these ideas do deserve to be out in the world, but also partly because I had no creative energy to write anything else.

Well, the first year of Trump’s second term was just about as bad as we thought it would be. He has torn apart global institutions that took decades to forge; he has caused thousands if not millions of unnecessary deaths; he has alienated our closest allies—seriously, CANADA!?—and cozied up to corrupt, authoritarian dictators around the world, because that is exactly what he aspires to be.

It’s true, he hasn’t collapsed the economy (yet). Inflation has been about as bad as it was before, despite the ludicrous tariffs. (He promised to bring prices down, but we all knew he wouldn’t. I honestly expected them to go up more than this.) He also hasn’t started any wars, though he looks damn close to it in Venezuela. And as he continues to make a mockery of our whole government, the checks and balances that are supposed to be reining him have languished unused, because the Republicans control all three branches.

Trump is still in office, and poised to be for three more years.

Yet, at last, there is some glimmer of hope on the horizon.

Other Republicans are starting to turn against him, in part because of his obvious and undeniable connections to Jeffrey Epstein and his ring of serial rapists. (Let’s be clear about that, by the way: They’re not just pedophiles. “Pedophile” merely means you are sexually attracted to children. Some pedophiles seek treatment. These men were rapists who sexually assaulted actual teenagers. And at this point it strains credulity to imagine that Donald Trump himself wasn’t an active participant on multiple occasions—no amount of incompetent redactions will change that.)

Trump’s net approval is now negative on almost every major issue, especially on inflation. It is now a statistical certainty that more Americans disapprove of him than approve of him.

Both of these things should have happened more than a year ago, if not a decade ago; but hey, better late than never.

Democrats—even very left-wing democrats, like Mamdani—have done very well in elections lately, and seem poised to continue doing well in the 2026 midterm election. If we can actually secure a majority in both houses of Congress, we might finally be able to start undoing some of the damage Trump has done—or at least stop him from doing even more.

I’m sure there will be plenty of bad things that continue to happen this year, and that many of them will be Donald Trump’s fault. But I no longer feel the deep despair I felt last year; it seems like things might finally be turning around for America—and thus for the world.

What is the cost of all this?

PNRJ core principles, current events, development economics, ethics, inequality, politics , , , , , , , , ,

Nov 23 JDN 2461003

After the Democrats swept the recent election and now the Epstein files are being released—and absolutely do seem to have information that is damning about Trump—it really seems like Trump’s popularity has permanently collapsed. His approval rating stands at 42%, which is about 42% too high, but at least comfortably well below a majority.

It now begins to feel like we have hope, not only of removing him, but also of changing how American politics in general operates so that someone like him ever gets power again. (The latter, of course, is a much taller order.)

But at the risk of undermining this moment of hope, I’d like to take stock of some of the damage that Trump and his ilk have already done.

In particular, the cuts to US foreign aid are an absolute humanitarian disaster.

These didn’t get so much attention, because there has been so much else going on; and—unfortunately—foreign aid actually isn’t that popular among American voters, despite being a small proportion of the budget and by far the most cost-effective beneficial thing that our government does.

In fact, I think USAID would be cost-effective on a purely national security basis: it’s hard to motivate people to attack a country that saves the lives of their children. Indeed, I suppose this is the kernel of truth to the leftists who say that US foreign aid is just a “tool of empire” (or even “a front for the CIA”); yes, indeed, helping the needy does in fact advance American interests and promote US national security.

Over the last 25 years, USAID has saved over 90 million lives. That is more than a fourth of the population of the United States. And it has done this for the cost of less than 1% of the US federal budget.

But under Trump’s authority and Elon Musk’s direction, US foreign aid was cut massively over the last couple of years, and the consequences are horrific. Research on the subject suggests that as many as 700,000 children will die each year as long as these cuts persist.


Even if that number is overestimated by a factor of 2, that would still be millions of children over the next few years. And it could just as well be underestimated.

If we don’t fix this fast, millions of children will die. Thousands already have.

What’s more, fixing this isn’t just a matter of bringing the funding back. Obviously that’s necessary, but it won’t be sufficient. The sudden cuts have severely damaged international trust in US foreign aid, and many of the agencies that our aid was supporting will either collapse or need to seek funding elsewhere—quite likely from China. Relationships with governments and NGOs that were built over decade have been strained or even destroyed, and will need to be rebuilt.

This is what happens when you elect monsters to positions of power.

And even after we remove them, much of the damage will be difficult or even impossible to repair. Certainly we can never bring back the children who have already needlessly died because of this.

Why are so many famous people so awful?

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Oct 12 JDN 2460961

J.K. Rowling is a transphobic bigot. H.P. Lovecraft was an overt racist. Orson Scott Card is homophobic, and so was Frank Herbert. Robert Heinlein was a misogynist. Isaac Asimov was a serial groper and sexual harasser. Neil Gaiman has been credibly accused of multiple sexual assaults.

That’s just among sci-fi and fantasy authors whose work I admire. I could easily go on with lots of other famous people and lots of other serious allegations. (I suppose Bill Cosby and Roman Polanski seem like particularly apt examples.)

Some of these are worse than others; since they don’t seem to be guilty of any actual crimes, we might even cut some slack to Lovecraft, Herbert and Heinlein for being products of their times. (It seems very hard to make that defense for Asimov and Gaiman, with Rowling and Card somewhere in between because they aren’t criminals, but ‘their time’ is now.)

There are of course exceptions: Among sci-fi authors, for instance, Ursula Le Guin, Becky Chambers, Alistair Reynolds and Andy Weir all seem to be ethically unimpeachable. (As far as I know? To be honest, I still feel blind-sided by Neil Gaiman.)

But there really does seem to be pattern here:

Famous people are often bad people.

I guess I’m not quite sure what the baseline rate of being racist, sexist, or homophobic is (and frankly maybe it’s pretty high); but the baseline rate of committing multiple sexual assaults is definitely lower than the rate at which famous men get credibly accused of such.

Lord Acton famously remarked similarly:

Power tends to corrupt and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority; still more when you superadd the tendency of the certainty of corruption by authority.

I think this account is wrong, however. Abraham Lincoln, Mahatma Gandhi, and Nelson Mandela were certainly powerful—and certainly flawed—but they do not seem corrupt to me. I don’t think that Gandhi beat his wife because he led the Indian National Congress, and Mandela supported terrorists precisely during the period when he had the least power and the fewest options. (It’s almost tautologically true that Lincoln couldn’t have suspended habeas corpusif he weren’t extremely powerful—but that doesn’t mean that it was the power that shaped his character.)

I don’t think the problem is that power corrupts. I think the problem is that the corrupt seek power, and are very good at obtaining it.

In fact, I think the reason that so many famous people are such awful people is that our society rewards being awful. People will flock to you if you are overconfident and good at self-promoting, and as long as they like your work, they don’t seem to mind who you hurt along the way; this makes a perfect recipe for rewarding narcissists and psychopaths with fame, fortune, and power.

If you doubt that this is the case:

How else do you explain Donald Trump?

The man has absolutely no redeeming qualities. He is incompetent, willfully ignorant, deeply incurious, arrogant, manipulative, and a pathological liar. He’s also a racist, misogynist, and admitted sexual assaulter. He has been doing everything in his power to prevent the release of the Epstein Files, which strongly suggests he has in fact sexually assaulted teenagers. He’s also a fascist, and now that he has consolidated power, he is rapidly pushing the United States toward becoming a fascist state—complete with masked men with guns who break into your home and carry you away without warrants or trials.

Yet tens of millions of Americans voted for him to become President of the United States—twice.

Basically, it seems to be that Trump said he was great, and they believed him. Simply projecting confidence—however utterly unearned that confidence might be—was good enough.

When it comes to the authors I started this post with, one might ask whether their writing talents were what brought them fame, independently or in spite of their moral flaws. To some extent that is probably true. But we also don’t really know how good they are, compared to all the other writers whose work never got published or never got read. Especially during times—all too recently—when writers who were women, queer, or people of color simply couldn’t get their work published, who knows what genius we might have missed out on? Dune the first book is a masterpiece, but by the time we get to Heretics of Dune the books have definitely lost their luster; maybe there were some other authors with better books that could have been published, but never were because Herbert had the clout and the privilege and those authors didn’t.

I do think genuine merit has some correlation with success. But I think the correlation is much weaker than is commonly supposed. A lot of very obviously terrible and/or incompetent people are extremely successful in life. Many of them were born with advantages—certainly true of Elon Musk and Donald Trump—but not all of them.

Indeed, there are so many awful successful people that I am led to conclude that moral behavior has almost nothing to do with success. I don’t think people actively go out of their way to support authors, musicians, actors, business owners or politicians who are morally terrible; but it’s difficult for me to reject the hypothesis that they literally don’t care. Indeed, when evidence emerges that someone powerful is terrible, usually their supporters will desperately search for reasons why the allegations can’t be true, rather than seriously considering no longer supporting them.

I don’t know what to do about this.

I don’t know how to get people to believe allegations more, or care about them more; and that honestly seems easier than changing the fundamental structure of our society in a way that narcissists and psychopaths are no longer rewarded with power. The basic ways that we decide who gets jobs, who gets published, and who gets elected seem to be deeply, fundamentally broken; they are selecting all the wrong people, and our whole civilization is suffering the consequences.


We are so far from a just world that I honestly can’t see how to get there from here, or even how to move substantially closer.

But I think we still have to try.

Reflections on the Charlie Kirk assassination

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Sep 28 JDN 2460947

No doubt you are well aware that Charlie Kirk was shot and killed on September 10. His memorial service was held on September 21, and filled a stadium in Arizona.

There have been a lot of wildly different takes on this event. It’s enough to make you start questioning your own sanity. So while what I have to say may not be that different from what Krugman (or for that matter Jacobin) had to say, I still thought I would try to contribute to the small part of the conversation that’s setting the record straight.

First of all, let me say that this is clearly a political assassination, and as a matter of principle, that kind of thing should not be condoned in a democracy.

The whole point of a democratic system is that we don’t win by killing or silencing our opponents, we win by persuading or out-voting them. As long as someone is not engaging in speech acts that directly command or incite violence (like, say, inciting people to attack the Capitol), they should be allowed to speak in peace; even abhorrent views should be not be met with violence.

Free speech isn’t just about government censorship (though that is also a major problem right now); it’s a moral principle that underlies the foundation of liberal democracy. We don’t resolve conflicts with violence unless absolutely necessary.

So I want to be absolutely clear about this: Killing Charlie Kirk was not acceptable, and the assassin should be tried in a court of law and, if duly convicted, imprisoned for a very long time.

Second of all, we still don’t know the assassin’s motive, so stop speculating until we do.

At first it looked like the killer was left-wing. Then it looked like maybe he was right-wing. Now it looks like maybe he’s left-wing again. Maybe his views aren’t easily categorized that way; maybe he’s an anarcho-capitalist, or an anarcho-communist, or a Scientologist. I won’t say it doesn’t matter; it clearly does matter. But we simply do not know yet.

There is an incredibly common and incredibly harmful thing that people do after any major crime: They start spreading rumors and speculating about things that we actually know next to nothing about. Stop it. Don’t contribute to that.


The whole reason we have a court system is to actually figure out the real truth, which takes a lot of time and effort. The courts are one American institution that’s actually still functioning pretty well in this horrific cyberpunk/Trumpistan era; let them do their job.

It could be months or years before we really fully understand what happened here. Accept that. You don’t need to know the answer right now, and it’s far more dangerous to think you know the answer when you actually don’t.

But finally, I need to point out that Charlie Kirk was an absolutely abhorrent, despicable husk of a human being and no one should be honoring him.

First of all, he himself advocated for political violence against his opponents. I won’t say anyone deserves what happened to him—but if anyone did, it would be him, because he specifically rallied his followers to do exactly this sort of thing to other people.

He was also bigoted in almost every conceivable way: Racist, sexist, ableist, homophobic, and of course transphobic. He maintained a McCarthy-esque list of college professors that he encouraged people to harass for being too left-wing. He was a covert White supremacist, and only a little bit covert. He was not covert at all about his blatant sexism and misogyny that seems like it came from the 1950s instead of the 2020s.

He encouraged his—predominantly White, male, straight, cisgender, middle-class—audience to hate every marginalized group you can think of: women, people of color, LGBT people, poor people, homeless people, people with disabilities. Not content to merely be an abhorrent psychopath himself, he actively campaigned against the concept of empathy.

Charlie Kirk deserves no honors. The world is better off without him. He made his entire career out of ruining the lives of innocent people and actively making the world a worse place.

It was wrong to kill Charlie Kirk. But if you’re sad he’s gone, what is wrong with you!?

For my mother, on her 79th birthday

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Sep 21 JDN 2460940

When this post goes live, it will be mother’s 79th birthday. I think birthdays are not a very happy time for her anymore.

I suppose nobody really likes getting older; children are excited to grow up, but once you hit about 25 or 26 (the age at which you can rent a car at the normal rate and the age at which you have to get your own health insurance, respectively) and it becomes “getting older” instead of “growing up”, the excitement rapidly wears off. Even by 30, I don’t think most people are very enthusiastic about their birthdays. Indeed, for some people, I think it might be downhill past 21—you wanted to become an adult, but you had no interest in aging beyond that point.

But I think it gets worse as you get older. As you get into your seventies and eighties, you begin to wonder which birthday will finally be your last; actually I think my mother has been wondering about this even earlier than that, because her brothers died in their fifties, her sister died in her sixties, and my father died at 63. At this point she has outlived a lot of people she loved. I think there is a survivor’s guilt that sets in: “Why do I get to keep going, when they didn’t?”

These are also very hard times in general; Trump and the people who enable him have done tremendous damage to our government, our society, and the world at large in a shockingly short amount of time. It feels like all the safeguards we were supposed to have suddenly collapsed and we gave free rein to a madman.

But while there are many loved ones we have lost, there are many we still have; and nor need our set of loved ones be fixed, only to dwindle with each new funeral. We can meet new people, and they can become part of our lives. New children can be born into our family, and they can make our family grow. It is my sincere hope that my mother still has grandchildren yet to meet; in my case they would probably need to be adopted, as the usual biological route is pretty much out of the question, and surrogacy seems beyond our budget for the foreseeable future. But we would still love them, and she could still love them, and it is worth sticking around in this world in order to be a part of their lives.

I also believe that this is not the end for American liberal democracy. This is a terrible time, no doubt. Much that we thought would never happen already has, and more still will. It must be so unsettling, so uncanny, for someone who grew up in the triumphant years after America helped defeat fascism in Europe, to grow older and then see homegrown American fascism rise ascendant here. Even those of us who knew history all too well still seem doomed to repeat it.

At this point it is clear that victory over corruption, racism, and authoritarianism will not be easy, will not be swift, may never be permanent—and is not even guaranteed. But it is still possible. There is still enough hope left that we can and must keep fighting for an America worth saving. I do not know when we will win; I do not even know for certain that we will, in fact, win. But I believe we will.

I believe that while it seems powerful—and does everything it can to both promote that image and abuse what power it does have—fascism is a fundamentally weak system, a fundamentally fragile system, which simply cannot sustain itself once a handful of critical leaders are dead, deposed, or discredited. Liberal democracy is kinder, gentler—and also slower, at times even clumsier—than authoritarianism, and so it may seem weak to those whose view of strength is that of the savanna ape or the playground bully; but this is an illusion. Liberal democracy is fundamentally strong, fundamentally resilient. There is power in kindness, inclusion, and cooperation that the greedy and cruel cannot see. Fascism in Germany arrived and disappeared within a generation; democracy in America has stood for nearly 250 years.

We don’t know how much more time we have, Mom; none of us do. I have heard it said that you should live your life as though you will live both a short life and a long one; but honestly, you should probably live your life as though you will live a randomly-decided amount of time that is statistically predicted by actuarial tables—because you will. Yes, the older you get, the less time you have left (almost tautologically); but especially in this age of rapid technological change, none of us really know whether we’ll die tomorrow or live another hundred years.

I think right now, you feel like there isn’t much left to look forward to. But I promise you there is. Maybe it’s hard to see right now; indeed, maybe you—or I, or anyone—won’t even ever get to see it. But a brighter future is possible, and it’s worth it to keep going, especially if there’s any way that we might be able to make that brighter future happen sooner.

The AI bubble is going to crash hard

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

Sep 7 JDN 2460926

Based on the fact that it only sort of works and yet corps immediately put it in everything, I had long suspected that the current wave of AI was a bubble. But after reading Ed Zitron’s epic takedowns of the entire industry, I am not only convinced it’s a bubble; I’m convinced it is probably the worst bubble we’ve had in a very long time. This isn’t the dot-com crash; it’s worse.

The similarity to the dot-com crash is clear, however: This a huge amount of hype over a new technology that genuinely could be a game-changer (the Internet certainly was!), but won’t be in the time horizon on which the most optimistic investors have assumed it will be. The gap between “it sort of works” and “it radically changes our economy” is… pretty large, actually. It’s not something you close in a few years.


The headline figure here is that based on current projections, US corporations will have spent $560 billion on capital expenditure, for anticipated revenue of only $35 billion.

They won’t pay it off for 16 years!? That kind of payoff rate would make sense for large-scale physical infrastructure, like a hydroelectric dam. It absolutely does not make sense in an industry that is dependent upon cutting-edge technology that wears out fast and becomes obsolete even faster. They must think that revenue is going to increase to something much higher, very soon.

The corps seem to be banking on the most optimistic view of AI: That it will soon—very soon—bring about a radical increase in productivity that brings GDP surging to new heights, or even a true Singularity where AI fundamentally changes the nature of human existence.

Given the kind of errors I’ve seen LLMs make when I tried to use them to find research papers or help me with tedious coding, this is definitely not what’s going to happen. Claude gives an impressive interview, and (with significant guidance and error-correction) it also managed pretty well at making some simple text-based games; but it often recommended papers to me that didn’t exist, and through further experimentation, I discovered that it could not write me a functional C++ GUI if its existence depended on it. Somewhere on the Internet I heard someone describe LLMs as answering not the question you asked directly, but the question, “What would a good answer to this question look like?” and that seems very accurate. It always gives an answer that looks valid—but not necessarily one that is valid.

AI will find some usefulness in certain industries, I’m sure; and maybe the next paradigm (or the one after that) will really, truly, effect a radical change on our society. (Right now the best thing to use LLMs for seems to be cheating at school—and it also seems to be the most common use. Not exactly the great breakthrough we were hoping for.) But LLMs are just not reliable enough to actually use for anything important, and sooner or later, most of the people using them are going to figure that out.

Of course, by the Efficient Roulette Hypothesis, it’s extremely difficult to predict exactly when a bubble will burst, and it could well be that NVIDIA stock will continue to grow at astronomical rates for several years yet—or it could be that the bubble bursts tomorrow and NVIDIA stock collapses, if not to worthless, then to far below its current price.

Krugman has an idea of what might be the point that bursts the bubble: Energy costs. There is a clear mismatch between the anticipated energy needs of these ever-growing data centers and the actual energy production we’ve been installing—especially now that Trump and his ilk have gutted subsidies for solar and wind power. That’s definitely something to watch out for.

But the really scary thing is that the AI bubble actually seems to be the only thing holding the US economy above water right now. It’s the reason why Trump’s terrible policies haven’t been as disastrous as economists predicted they would; our economy is being sustained by this enormous amount of capital investment.

US GDP is about $30 trillion right now, but $500 billion of that is just AI investment. That’s over 1.6%, and last quarter our annualized GDP growth rate was 3.3%—so roughly half of our GDP growth was just due to building more data centers that probably won’t even be profitable.

Between that, the tariffs, the loss of immigrants, and rising energy costs, a crashing AI bubble could bring down the whole stock market with it.

So I guess what I’m saying is: Don’t believe the AI hype, and you might want to sell some stocks.

Solving the student debt problem

PNRJ market failure, public policy, education, inequality, science and academia, politics , , , , , , , ,

Aug 24 JDN 2460912

A lot of people speak about student debt as a “crisis”, which makes it sound like the problem is urgent and will have severe consequences if we don’t soon intervene. I don’t think that’s right. While it’s miserable to be unable to pay your student loans, student loans don’t seem to be driving people to bankruptcy or homelessness the way that medical bills do.

Instead I think what we have here is a long-term problem, something that’s been building for a long time and will slowly but surely continue getting worse if we don’t change course. (I guess you can still call it a “crisis” if you want; climate change is also like this, and arguably a crisis.)

But there is a problem here: Student loan balances are rising much faster than other kinds of debt, and the burden falls the worst on Black women and students who went to for-profit schools. A big part of the problem seems to be predatory schools that charge high prices and make big promises but offer poor results.

Making all this worse is the fact that some of the most important income-based repayment plans were overturned by a federal court, forcing everyone who was on them into forebearance. Income-based repayment was a big reason why student loans actually weren’t as bad a burden as their high loan balances might suggest; unlike a personal loan or a mortgage, if you didn’t have enough income to repay your student loans at the full amount, you could get on a plan that would let you make smaller payments, and if you paid on that plan for long enough—even if it didn’t add up to the full balance—your loans would be forgiven.

Now the forebearance is ending for a lot of borrowers, and so they are going into default; and most of that loan forgiveness has been ruled illegal. (Supposedly this is because Congress didn’t approve it. I’ll believe that was the reason when the courts overrule Trump’s tariffs, which clearly have just as thin a legal justification and will cause far more harm to us and the rest of the world.)

In theory, student loans don’t really seem like a bad idea.

College is expensive, because it requires highly-trained professors, who demand high salaries. (The tuition money also goes other places, of course….)

College is valuable, because it provides you with knowledge and skills that can improve your life and also increase your long-term earnings. It’s a big difference: Median salary for someone with a college degree is about $60k, while median salary for someone with only a high school diploma is about $34k.

Most people don’t have enough liquidity to pay for college.

So, we provide loans, so that people can pay for college, and then when they make more money after graduating, they can pay the loans back.

That’s the theory, anyway.

The problem is that average or even median salaries obscure a lot of variation. Some college graduates become doctors, lawyers, or stockbrokers and make huge salaries. Others can’t find jobs at all. In the absence of income-based repayment plans, all students have to pay back their loans in full, regardless of their actual income after graduation.

There is inherent risk in trying to build a career. Our loan system—especially with the recent changes—puts most of this risk on the student. We treat it as their fault they can’t get a good job, and then punish them with loans they can’t afford to repay.

In fact, right now the job market is pretty badfor recent graduates—while usually unemployment for recent college grads is lower than that of the general population, since about 2018 it has actually been higher. (It’s no longer sky-high like it was during COVID; 4.8% is not bad in the scheme of things.)

Actually the job market may even be worse than it looks, because new hires are actually the lowest rate they’ve been since 2020. Our relatively low unemployment currently seems to reflect a lack of layoffs, not a healthy churn of people entering and leaving jobs. People seem to be locked into their jobs, and if they do leave them, finding another is quite difficult.

What I think we need is a system that makes the government take on more of the risk, instead of the students.

There are lots of ways to do this. Actually, the income-based repayment systems we used to have weren’t too bad.

But there is actually a way to do it without student loans at all. College could be free, paid for by taxes.


Now, I know what you’re thinking: Isn’t this unfair to people who didn’t go to college? Why should they have to pay?

Who said they were paying?

There could simply be a portion of the income tax that you only pay if you have a bachelor’s degree. Then you would only pay this tax if you both graduated from college and make a lot of money.

I don’t think this would create a strong incentive not to get a bachelor’s degree; the benefits of doing so remain quite large, even if your taxes were a bit higher as a result.

It might create incentives to major in subjects that aren’t as closely linked to higher earnings—liberal arts instead of engineering, medicine, law, or business. But this I see as fundamentally a public good: The world needs people with liberal arts education. If the market fails to provide for them, the government should step in.

This plan is not as progressive as Elizabeth Warren’s proposal to use wealth taxes to fund free college; but it might be more politically feasible. The argument that people who didn’t go to college shouldn’t have to pay for people who did actually seems reasonable to me; but this system would ensure that in fact they don’t.

The transfer of wealth here would be from people who went to college and make a lot of money to people who went to college and don’t make a lot of money. It would be the government bearing some of the financial risk of taking on a career in an uncertain world.

Toward a positive vision of the future

PNRJ current events, ethics, inequality, politics, tribal paradigm , , , , , , , , , , , , , , , , , , , , ,

Jun 22 JDN 2460849

Things look pretty bleak right now. Wildfires rage across Canada, polluting the air across North America. Russia is still at war with Ukraine, and Israel seems to be trying to start a war with Iran. ICE continues sending agents without badges to kidnap people in unmarked vehicles and sending them to undisclosed locations. Climate change is getting worse, and US policy is pivoting from subsidizing renewables back to subsidizing fossil fuels. And Trump, now revealed to be a literal fascist, is still President.

But things can get better.

I can’t guarantee that they will, nor can I say when; but there is still hope that a better future is possible.

It has been very difficult to assemble a strong coalition against the increasingly extreme far-right in this country (epitomized by Trump). This seems odd, when most Americans hold relatively centrist views. Yes, more Americans identify as conservative than as liberal, but Trump isn’t a conservative; he’s a radical far-right fascist. Trump recently gave a speech endorsing ethnic cleansing, for goodness’ sake! I’m liberal, but I’d definitely vote for a conservative like Mitt Romney rather than a Stalinist! So why are “conservatives” voting for a fascist?

But setting aside the question of why people voted for Trump, we still have the question of why the left has not been able to assemble a strong coalition against him.

I think part of the problem is that the left really has two coalitions within it: The center left, who were relatively happy with the status quo before Trump and want to go back to that; and the far left, who were utterly unhappy with that status quo and want radical change. So while we all agree that Trump is awful, we don’t really agree on what he’s supposed to be replaced with.

It’s of course possible to be in between, and indeed I would say that I am. While clearly things were better under Obama and Biden than they have been under Trump, there were still a lot of major problems in this country that should have been priorities for national policy but weren’t:

  1. Above all, climate change—the Democrats at least try to do something against it, but not nearly enough. Our carbon emissions are declining, but it’s very unclear if we’ll actually hit our targets. The way we have been going, we’re in for a lot more hurricanes and wildfires and droughts.
  2. Housing affordability is still an absolute crisis; half of renters spend more than the targeted 30% of their income on housing, and a fourth spend more than 50%.Homelessness is now at a record high.
  3. Healthcare is still far too expensive in this country; we continue to spend far more than other First World countries without getting meaningfully better care.
  4. While rights and protections for LGB people have substantially improved in the last 30 years, rights and protections for trans people continue to lag behind.
  5. Racial segregation in housing remains the de facto norm, even though it is de jure illegal.
  6. Livestock remain exempted from the Animal Welfare Act and in 2002 laboratory rats and mice were excluded as well, meaning that cruel or negligent treatment which would be illegal for cats and dogs is still allowed on livestock and lab rats.
  7. Income and wealth inequality in this country remains staggeringly high, and the super-rich continue to gain wealth at a terrifying rate.
  8. Our voting system is terrible—literally the worst possible system that can technically still be considered democracy.

This list is by no means exhaustive, but these are the issues that seem most salient to me.

2 and 3 both clearly showed up in my Index of Necessary Expenditure; these costs were the primary reason why raising a family of 4 was unaffordable on a median household income.

So it isn’t right to say that I was completely happy with how things were going before. But I still think of myself as center left, because I don’t believe we need to tear everything down and start over.

I have relatively simple recommendations that would go a long way toward solving all 8 of these problems:

Climate change could be greatly mitigated if we’d just tax carbon already, or implement a cap-and-trade system like California’s nationwide. If that’s too politically unpalatable, subsidize nuclear power, fusion research, and renewables instead. That’s way worse from a budget perspective, but for some reason Americans are just fanatically opposed to higher gas prices.

Housing affordability is politically thorny, but economically quite simple: Build more housing. Whatever we have to do to make that happen, we should do it. Maybe this involves changes to zoning or other regulations. Maybe it involves subsidies to developers. Maybe it involves deploying eminent domain to build public housing. Maybe it involves using government funds to build housing and then offering it for sale on the market. But whatever we do, we need more housing.

Healthcare costs are a trickier one; Obamacare helped, but wasn’t enough. I think what I would like to see next is an option to buy into Medicare; before you are old enough to get it for free, you can pay a premium to be covered by it. Because Medicare is much more efficient than private insurance, you could pay a lower premium and get better coverage, so a lot of people would likely switch (which is of course exactly why insurance companies would fight the policy at every turn). Even putting everyone on Medicare might not be enough; to really bring costs down, we may need to seriously address the fact that US doctors, particularly specialists, are just radically higher-paid than any other doctors in the world. Is an American doctor who gets $269,000 per year really 88% better than a French doctor who gets $143,000?

The policies we need for LGBT rights are mostly no-brainers.

Okay, I can admit to some reasonable nuance when it comes to trans women in pro sports (the statistical advantages they have over cis women are not as clear-cut as many people think, but they do seem to exist; average athletic performance for trans women seems to be somewhere in between the average for cis men and the average for cis women), but that’s really not a very important issue. Like, seriously, why do we care so much about pro sports? Either let people play sports according to their self-identified gender, or make the two options “cis women” and “other” and let trans people play the latter. And you can do the same thing with school sports, or you can eliminate them entirely because they are a stupid waste of academic resources; but either way this should not be considered a top priority policy question. (If parents want their kids to play sports, they can form their own leagues; the school shouldn’t be paying for it. Winning games is not one of the goals of an academic institution. If you want kids to get more exercise, give them more recess and reform the physical education system so it isn’t so miserable for the kids who need it most.)

But there is absolutely no reason not to let people use whatever pronouns and bathrooms they want; indeed, there doesn’t really seem to be a compelling reason to gender-segregate bathrooms in the first place, and removing that segregation would most benefit women, who often have to wait much longer in line for the bathroom. (The argument that this somehow protects women never made sense to me; if a man wants to assault women in the bathroom, what’s to stop him from just going into the women’s bathroom? It’s not like there’s a magic field that prevents men from entering. He’s already planning on committing a crime, so it doesn’t seem like he’s very liable to held back by social norms. It’s worthwhile to try to find ways to prevent sexual assault, but segregating bathrooms does little or nothing toward that goal—and indeed, trans-inclusive bathrooms do not statistically correlate with higher rates of sexual assault.) But okay, fine, if you insist on having the segregation, at least require gender-neutral bathrooms as well. This is really not that difficult; it’s pretty clearly bigotry driving this, not serious policy concerns.

Not exempting any vertebrate animals from anti-cruelty legislation is an incredibly simple thing to do, obviously morally better, and the only reason we’re not doing it is that it would hurt agribusinesses and make meat more expensive. There is literally zero question what the morally right thing to do here is; the question is only how to get people to actually do that morally right thing.

Finally, how do we fix income inequality? Some people—including some economists—treat this as a very complicated, difficult question, but I don’t think it is. I think the really simple, obvious answer is actually the correct one: Tax rich people more, and use the proceeds to help poor people. We should be taxing the rich a lot more; I want something like the revenue-maximizing rate, estimated at about 70%. (And an even higher rate like the 90% we had in the 1950s is not out of the question.) These funds could either provide services like education and healthcare, or they could simply be direct cash transfers. But one way or another, the simplest, most effective way to reduce inequality is to tax the rich and help the poor. A lot of economists fear that this would hurt the overall economy, but particularly if these rates are really targeted at the super-rich (the top 0.01%), I don’t see how they could, because all those billions of dollars are very clearly monopoly rents rather than genuine productivity. If anything, making it harder to amass monopoly rents should make the economy more efficient. And taking say 90% of the roughly 10% return just the top 400 billionaires make on their staggering wealth would give us an additional $480 billion per year.

Fixing our voting system is also quite straightforward. Ranked-choice voting would be a huge improvement, and has already been implemented successfully in several states. Even better would be range voting, but so far very few places have been bold enough to actually try it. But even ranked-choice voting would remove most of the terrible incentives that plurality voting creates, and likely allow us to move beyond the two-party system into a much more representative multiparty system.

None of this requires overthrowing the entire system or dismantling capitalism.

That is, we can have a positive vision of the future that doesn’t require revolution or radical change.

Unfortunately, there’s still a very good chance we’ll do none of it.