Tag Archives: inequality

some policies to combat inequality

This article in the blog Urbanomics has some ideas on what can be done to combat rising inequality. The blog is India focused, but the suggestions are more or less general.

  • Increase minimum wage.
  • Increase labor’s bargaining power “through institutional (unions, workplace management councils, etc.) and regulatory measures. At some time in future, broad caps on the salary and compensation ratios across levels becoming a norm cannot be ruled out.”
  • Stop exempting gig and contract work from various laws and policies [things like not requiring the entity hiring them to provide health care and other benefits?]
  • Labour-intensive sectors should become the focus of industrial policy. Scarce resources should not be wasted on low-labour-intensity sectors like semiconductor fabrication or data centres… internships, apprentices, reduction in EPF and other costs, wage support for new entrants, industrial policy support through employment generation-linked incentives, etc. [this one is more in a developing country context I suppose]

All this seems…complicated…to me. But maybe these are politically feasible policies. Simple but maybe politically infeasible policies would be to just raise taxes on the rich and powerful and redistribute the proceeds to the masses, as cash, services directly provided by the government, or services indirectly subsidized by the government. In the U.S., perhaps taxes wouldn’t have to be raised as much as we think if we shifted away from some of the massive hidden subsidies we already have – low capital gains tax rates, the cap on social security payroll taxes, deduction of mortgage interest, the 30-year fixed rate mortgage, gas taxes that support highways but not public transportation, and many others. All of this would be politically difficult, of course. But with the Democrats seemingly having become the party of no big ideas, perhaps there is not so much to lose if somebody were to start proposing some.

U.S. Poverty: Facts and Figures

This article from Peter G. Peterson Foundation has some facts and figures on U.S. poverty.

  • It explains the difference between the Official Poverty Measure and Supplemental Poverty Measure, both calculated by the Census Bureau. The former does not consider the effects of government benefits, while the latter does. I was thinking that the spread between the two could be seen as a measure of how effective government benefits are. But the supplemental measure is actually higher than the official one (12.9% vs. 11.1% in 2023) because it also takes into account some expenses that poor families face, including health care, housing, and child support.
  • Of those below the poverty line, about one-third live in deep poverty defined as half or less of the poverty level.
  • Racial disparities are pretty much what you would think. But I was surprised that the poverty rate among Asian-Americans is higher than the poverty rate among white Americans. This is interesting because I know Asian-Americans have a higher median household income as a group than white Americans. For the other groups, poverty rate and median household income seem to track pretty well. For Asian-Americans, this result suggests there is a large disparity with some very high income and some very low income people. The article does not cover Native Americans.
  • The (supplemental) poverty rate among children was 5.1% in 2021 due to pandemic-era programs and bounced back to 13.7% in 2023. Thanks Biden! No, literally thanks Biden 5.1% and no thanks to Congress you cold unfeeling psychopaths for the 13.7%. How can they live with themselves (answer: a majority of politicians are cold unfeeling psychopaths), and how can they be so unbelievably adept at deflecting blame that the public is unaware or supportive (answer: anti-tax and racist propaganda).

There is more interesting stuff in this article, which I may talk about in a future post.

2024 in Review

Intro

What I do here is list all the posts I picked each month as most frightening, most hopeful, and most interesting. Then I attempt some kind of synthesis and analysis of this information. You can drill down to my “month in review” posts, from there to individual posts, and from there to source articles if you have the time and inclination.

Post Roundup

Most frightening and/or depressing stories

  • JANUARY: 2023 was “a year of war“, and so far 2024 is not looking better. Those diplomatic grand bargains you always hear about seem to be getting less grand. And the drumbeat for a U.S. attack on Iran got louder.
  • FEBRUARY: The war on terror continues, and the propaganda umbrella has expanded to cover attacks on any group labeled as “Iran-backed”. Fentanyl gets an honorable mention, but affects mostly the poor and miserable whereas the war on terror threatens to immolate us all.
  • MARCH: Ralph Nader says the civilian carnage in Gaza is an order of magnitude worse than even the Gaza authorities say it is. Which is almost unthinkably horrible if true, and makes the Israeli public statements about collateral damage seem even less credible. However even handed you try to be in considering this war could be a proportionate response to the original gruesome attack, it is getting harder.
  • APRIL: Peter Turchin’s description of a “wealth pump” leading to stagnation and political instability seems to fit the United States pretty well at this moment. The IMF shows that global productivity has been slowing since the US-caused financial crisis in 2008. In Turchin’s model, our November election will be a struggle between elites and counter-elites who both represent the wealthy and powerful. That sounds about right, but I still say it is a struggle between competence and incompetence, and competence is a minimum thing we need to survive in a dangerous world. In early April I thought things were trending painfully slowly, but clearly, in Biden’s direction. As I write this in early May I am no longer convinced of that.
  • MAY: What a modern nuclear bomb would do to a large modern city. Do we already know this intellectually? Sure. Do we constantly need to be reminded and remind our elected leaders that this is absolutely unthinkable and must be avoided at any cost? Apparently.
  • JUNE: Some self-labeled “conservatives” in the United States want to do away with the National Oceanic and Atmospheric Administration, the Census Bureau, the Internal Revenue Service, the Federal Emergency Management Agency, the National Institutes of Health, the Department of Education, and possibly even the Federal Reserve. All these are needed to have a competent, stable government and society and to be prepared to respond and recover from the shocks that are coming, so I would call this nihilist and not “conservative” at all. How is it conservative to want to destroy the institutions that have underpinned the success of our nation thus far? On the other hand, they also want to double down on the unimaginative pro-big-business, pro-war consensus of the two major parties over the last 50 years or so, which has also gotten us to where we are today. And it looks like the amateurs and psychopaths have the upper hand at the moment in terms of our November election. This is certainly not “morning in America”.
  • JULY: Joe Biden’s depressing decline in the international spotlight, and our failed political system that could let such a thing happen. Not much more I can say about it that has not been said. The “election trifecta” – non-partisan, single ballot primaries; ranked-choice general elections; and non-partisan redistricting – is one promising proposal for improving this system.
  • AUGUST: Human extinction, and our dysfunctional political system’s seeming lack of concern and even active ramping up the risk. We have forgotten how horrible it was last time (and the only time) nuclear weapons were used on cities. Is there any story that could be more frightening and/or depressing to a human?
  • SEPTEMBER: There is nothing on Earth more frightening than nuclear weapons. China has scrapped its “minimal deterrent” nuclear doctrine in favor of massively scaling up their arsenal to compete with the also ramping up U.S. and Russian arsenals. They do still have an official “no first strike” policy. The U.S. by contrast has an arrogant foreign policy.
  • OCTOBER: When it comes to the #1 climate change impact on ordinary people, it’s the food stupid. (Dear reader, I’m not calling you stupid, and I don’t consider myself stupid, but somehow we individually intelligent humans are all managing to be stupid together.) This is the shit that is probably going to hit the fan first while we are shouting stupid slogans like “drill baby drill” (okay, if you are cheering when you hear a politician shout that you might not be stupid, but you are at least uninformed.)
  • NOVEMBER: Ugh, the U.S. election. I don’t really want to talk or think too much more about it. What’s really frightening to me is the celebration of irrationality. With incompetent, irrational clowns and fools now in charge of everything, any crises or emergencies that arise are not going to be dealt with rationally, competently, or at all. And this is how an emergency can turn into a system failure. Let’s hope we can muddle through four years without a major acute crisis of some kind, but that is hard to do.
  • DECEMBER: The annual “horizon scan” from the journal Trends in Ecology and Evolution lists three key issues having to do with tipping points: “melting sea ice, melting glaciers, and release of seabed carbon stores”.

Most hopeful stories

  • JANUARY: According to Bill Gates, some bright spots in the world today include gains in administering vaccines to children around the world, a shift toward greater public acceptance of nuclear power, and maybe getting a bit closer to the dream of fusion power. He pontificates about AI, and my personal sense is it is still too soon, but AI does hold some promise for speeding up scientific progress.
  • FEBRUARY: The people who are in charge of the USA’s nuclear weapons still believe in the ideals behind the founding of the country, at least more than the rest of us. Okay, this is lean times for hope, but seriously this at least buys us time to figure some stuff out.
  • MARCH: Yes, there are some fun native (North American) wildflowers you can grow from bulbs. Let’s give the environmental and geopolitical doom and gloom a rest for a moment and cultivate our gardens.
  • APRIL: Some tweaks to U.S. trade policy might be able to significantly ease the “border crisis” and create a broad political coalition of bigots, big business, and people who buy things in stores.
  • MAY: The U.S. might manage to connect two large cities with true high speed rail, relatively soon and relatively cost effectively. The trick is that there is not much between these cities other than flat desert. The route will mostly follow an existing highway, and we should think about doing this more as autonomous vehicles very gradually start to reduce demand on our highways in coming decades.
  • JUNE: Computer-controlled cars are slowly but surely attaining widespread commercial rollout. I don’t care what the cynics say – this will save land, money and lives. And combined with renewable and/or nuclear energy, it could play a big role in turning the corner on the climate crisis.
  • JULY: A universal flu vaccine may be close, the same technology might work for other diseases like Covid, HIV, and tuberculosis.
  • AUGUST: Drugs targeting “GLP-1 receptors” (one brand name is Ozempic) were developed to treat diabetes and obesity, but they may be effective against stroke, heart disease, kidney disease, Parkinson’s, Alzheimer’s, alcoholism, and drug addiction. They may even be miracle anti-aging drugs. But really, it seems like the simple story is that most of us in the modern world are just eating too much and moving our bodies too little, and these drugs might let us get some of the benefits of healthier lifestyles without actually making the effort. Making the effort, or making the effort while turbo-charging the benefits with drugs, might be the better option. Nonetheless, saving lives is saving lives.
  • SEPTEMBER: AI should be able to improve traffic management in cities, although early ideas on this front are not very creative.
  • OCTOBER: AI, at least in theory, should be able to help us manage physical assets like buildings and infrastructure more efficiently. Humans still need to have some up-front vision of what we would like our infrastructure systems to look like in the long term, but then AI should be able to help us make optimal repair-replace-upgrade-abandon decisions that nudge the system toward the vision over time as individual components wear out.
  • NOVEMBER: In a nation of 350 million odd people, there have to be some talented potential leaders for us to choose between in future elections, right? Or is it clowns and fools all the way down? Sorry folks, this is how I feel.
  • DECEMBER: I’m really drawing a blank on this one folks. Since I reviewed a number of book lists posted by others, I just pick one book title that sounds somewhat hopeful: Abolishing Fossil Fuels: Lessons from Movements That Won.

Most interesting stories, that were not particularly frightening or hopeful, or perhaps were a mixture of both

  • JANUARY: The return of super-sonic commercial flight is inching closer.
  • FEBRUARY: I am not a great chef by any means, but all hail recipe websites, however pesky they may be, for helping me make edible food.
  • MARCH: I looked into Belarus, and now I am just a little bit less ignorant, which is nice.
  • APRIL: If the singularity is in fact near, our worries about a productivity slow down are almost over, and our new worries will be about boredom in our new lives of leisure. It doesn’t seem like a good idea to count on this happening in the very near future, and therefore stop trying to solve the problems we have at the moment. This would be one of those “nice to have” problems. If it does in fact materialize, the places to be will be the ones that manage to shut down Peter Turchin’s wealth pump and spread the newfound wealth, rather than the places where a chosen few live god-like existences while leaving the masses in squalor.
  • MAY: Drone deliveries make some sense, but what we really need is infrastructure on the ground that lets all sorts of slow, light-weight vehicles zip around in our cities efficiently and safely. And this means separating them completely from those fast, heavy vehicles designed for highway travel.
  • JUNE: I had a misconception that if the world reduces greenhouse gases today, the benefits will not kick in for decades. Happily, scientists’ understanding of this has been updated and I will update my own understanding along with that. The key is the ocean’s ability to absorb excess carbon dioxide from the atmosphere relatively quickly. (I am not sure this is good for the ocean itself, but it is somewhat hopeful for temperatures here on land.) And it is not all or nothing – any emissions reductions will help, so the failure to act in the past is not an excuse to continue to fail to act.
  • JULY: Maybe we could replace congress with AI agents working tirelessly on behalf of us voters. Or maybe we could just have AI agents tirelessly paying attention to what the humans we have elected are doing, and communicating in both directions.
  • AUGUST: I did some musing about electric vehicles in August. The hype bubble seems to have burst a bit, as they did not explode onto the international commercial scene as some were hoping/predicting. This is partly because public infrastructure has not kept pace with the private sector due to sheer inertia, but I always detect a whiff of the evil oil/car industry propaganda and political capture behind the scenes. Nonetheless, just as I see happening with computer-driven vehicles, the technology and market will continue to develop after the hype bubble bursts. In a way, this almost starts the clock (5-10-20 years?) for when we can expect the actual commercial transition to occur. It will happen gradually, and one day we will just shrug, accept it, assume we knew it was coming all along, and eventually forget it was any other way. And since I seem to have transportation on the brain, here is a bonus link to my article on high speed trains.
  • SEPTEMBER: Countries around the world update their constitutions about every 20 years on average. They have organized, legal processes for doing this spelled out in the constitutions themselves. The U.S. constitution is considered the world’s most difficult constitution to update and modernize.
  • OCTOBER: Some explanations proposed for the very high cost of building infrastructure in the U.S. are (1) lack of competition in the construction industry and (2) political fragmentation leading to many relatively small agencies doing many relatively small projects. Some logical solutions then are to encourage the formation of more firms in the U.S., allow foreign firms and foreign workers to compete (hardly consistent with the current political climate!), and consolidate projects into a smaller number of much larger ones where economies of scale can be realized. There is some tension though between scale and competition, because the larger and more complex a project gets, the fewer bidders it will tend to attract who are willing to take the risk.
  • NOVEMBER: You can charge moving electric vehicles using charging coils embedded in roads.
  • DECEMBER: Bill Gates recommended The Coming Wave as the best recent book to understand the unfolding and intertwined AI and biotechnology revolution. I also listed the 2024 Nobel prizes, which largely had to do with AI and biotechnology.

Synthesis

Nuclear weapons and hypersonic missiles. The massive silver lining here is that, as I write this, there has been no use of nuclear weapons in war since 1945. Let’s hope it stays that way, forever and ever. But the expansion of nuclear arsenals among the existing powers, the open discussion of proliferation to new state actors, and the erosion of treaties and taboos on use of nuclear weapons are all deeply concerning. I find the hypersonic missiles particularly disturbing. These are being used in active, hot wars between nuclear powers – between Russia and NATO’s proxy Ukraine, and between Israel and Iran. We also hear that China has developed these weapons. Missiles are scary to begin with, but what is very, very scary is that these seem to be nuclear capable missiles and they are being actively used in hot wars between nuclear powers right now. If there are only a few minutes of warning when they are incoming, and they effectively can’t be pre-empted or intercepted, how does anyone know for sure that they are not nuclear armed before they hit their targets? So far, it seems like all sides are waiting for missiles to hit before we confirm they are not nuclear missiles. What if a state actor decides they can’t afford to wait and see and considers a pre-emptive strike? China and Iran have no-first-strike policies. The United States does not, and here is a fun fact – the SOVIET UNION had a no-first-strike policy, but modern Russia does not. Just to heap a little more sunshine on this topic, the rapid collapse of Syria, an aspiring nuclear power at one point, made me wonder if something similar could happen in Pakistan. And there is always the prospect of nuclear terrorism, particularly frightening when combined with extremist ideologies that glorify suicide and mass killing of civilians. It is easy to imagine horrible scenarios for all mankind on this one – but again, it is a risk that hasn’t materialized and can be managed. And it actually seems like a simpler, more tractable problem to me than complicated scenarios like climate change. Nuclear weapons are in the hands of relatively few leaders, and there is plenty of precedent for what arms control treaties and risk reduction measures can look like. Courageous leaders can step up on this issue – where are you guys?

Climate change. Let’s continue my little happy pep talk on existential threats. The climate change crisis is biting our civilization right now, and not only that, we are in the middle of it, not the beginning, and it is accelerating every day. This is the physical and socioeconomic reality, while our human civilization’s perception of reality let alone willingness and ability to act lag far behind. This is starting to feel like a story that will not and cannot end well. It is starting to bite our cities in the form of floods and fires, and this is well before relentless sea level rise really starts to bite in a significant way. Another place it will gradually start to bite harder, if it has not already, is food prices and eventually the physical food supply. As much as we have whined about food prices here in the U.S., the rise has been much worse in developing countries. And everything I just said is about the slow, steady, but relentless changes in the climate we have been experiencing and have to expect we will keep experiencing, at a minimum. The small piece of good news here is that if we took action immediately, we would start to see improvement in the trends immediately, rather than having to wait for some lag period to pass. My understanding of this has changed in the past year, and this is something positive. BUT what if rapid, sudden changes are in store? Some of the most terrifying articles I highlighted in 2024 have to do with tipping points, also known as runaway trains. We know about the accelerating melting glaciers and ice sheets, and how a sudden collapse of ice could lead to catastrophic and sudden sea level rise. We are seeing sudden rises in atmospheric methane concentrations – there seems to be some chance that this is the beginning of a feedback loop where frozen soil and seafloor sediments release methane bubbles as they thaw, which leads to more warming, which leads to more thawing, which leads to more warming and so on in a catastrophic exponential feedback loop that can’t be stopped on any time scale meaningful to humans. I hope we are not looking back a few years from now and concluding 2024 was the year that kicked this off. Now for some very small positive words – no matter how long our human political leaders dither and delay and fail, it is never too late to take actions that will make the outcome less bad than it could have been. Think about the reverse – if you were going to purposely try to make the situation as bad a possible, you could do things that would make it worse (like take all energy production back to coal). So past failure is never an excuse to stop trying, it is truly never too late to do better, even if our lack of effective action to date has closed off certain positive outcomes forever.

Bird flu. Continuing the doom and gloom theme, a major pandemic with a high mortality rate is clearly another existential threat we face. It could come from a natural source, a laboratory accident, or an intentional act. The risk of the latter will grow as biotechnology continues to progress and, unlike nuclear weapons, becomes more accessible to the masses. It’s like a major flood or earthquake. It will happen sooner or later. There are things we can do to limit the damage and to recover more quickly when it does happen, and we are probably not doing enough. The current strain of bird flu is concerning as it continues to devastate wild and domestic birds around the world, has spread extensively to domestic cows, there are some reports it has spread to pigs, and it has spread to some humans supposedly through direct contact with animals. Now having said all that, 2025 is probably not the year we get a devastating pandemic flu. Every year is probably not the year, because this is a low probability event in any given year that becomes highly probable over a long period of time. So the thing to do is stay calm and prepare. I actually have some hope that the vaccine technology that was rapidly scaled up and commercialized during Covid-19 will help us when the pandemic flu does hit. Let’s hope it’s not this year or any time during the next four years when we cannot expect to have competent leadership in the United States.

Artificial Intelligence. I suppose I have to say something about it. Well, I can’t recall in my lifetime any technology exploding exponentially into widespread commercial and public use in just over a year from its first announcement. You could almost describe it as…a singularity? Well not quite, but an ongoing exponential growth with no end in site, which is how a singularity would begin. Now, the downside is the sudden, massive, and completely unexpected energy demand this is causing, to the point that recently retired nuclear plants are being turned back on. I joked that AI might be the explanation for the Fermi paradox, where every civilization in the cosmos advanced enough to develop this technology wipes itself out by fouling its own nest when it tries to generate the energy required. I don’t believe this though – given that it’s easy to imagine an alternate history where nuclear fission based energy was scaled up in a serious way, and/or space based solar energy was scaled up in a serious way, and fusion based energy looking at least somewhat plausible, it does not seem like a foregone conclusion that we humans here on Earth had to foul our nest. This does not mean there is hope for us, it just means that there might be hope in a galaxy far, far away or in a billion of them too far away for us to see.

AI Agents. Now, as we foul our nest over the next few decades, there is the question of where AI goes in the next few months and years. And one big thing, I think, that is going to change our lives pretty quick is AI agents. We don’t really have AI going out and actively engaging in communications and transactions on our behalf on a large scale yet. But this has to be happening behind the scenes, and it has to happen in an obvious public way pretty soon. Imagine if I asked an AI to keep track of what one of my elected representatives is doing each day, read and summarize legislation they vote for or against, and just explain it to me in an easily digestible way for five minutes a day. Now imagine my AI is talking to my representative’s AI, and everyone else’s AIs are doing that, and giving the AI a summary of what all these AIs are thinking. That sounds pretty democratic right? But now imagine AIs from companies and governments are trying to manipulate all of us to buy things and believe things and do things they want us to do. Now imagine ALL THESE AIs ARE TALKING AND TRANSACTING WITH EACH OTHER, ALL THE TIME, AND THEY NEVER GET TIRED OR NEED A BREAK. It gets dizzying pretty quick.

Competing Feedback Loops. AI has definitely increased my personal productivity in writing computer programs and communicating the results in the past year. This must be happening on a large scale, at least it certain types of jobs. On the other hand, the IMF tells us worldwide productivity has slowed down since the 2009 financial crisis and was made worse by the Covid-19 crisis. There are also continuing headwinds like aging populations and falling fertility rates in many developed countries. How can both these things be true, an acceleration of productivity and a slowdown of productivity? The way I think about it, they are competing feedback loops, kind of like the faucet in your bathtub being on while at the same time there is no drain plug. Whether your tub is filling up or draining down depends on the relative strength of the positive and negative feedback loops. And unlike your bathtub, both are changing in time and subject to random shocks. So it could go either way – civilization could be going down the drain, the technological singularity might be imminent, or the two could be close to balance so it seems like nothing is happening for a long time, until one of them gets the upper hand. These are not the only feedback loops of course – the ongoing climate and biodiversity crises are also in the mix and since these are negative, we have to really hope that AI faucet is wide open, or find a stopper for the drain, or some combination of the two. We don’t have many world leaders working on the stopper thing right now, many are trying to drill baby drill an even bigger hole.

Biotechnology. AI seems likely to accelerate the progress of biotechnology, leading toward both medical breakthroughs (universal vaccines, cures for cancer and diabetes) and increasing risks of accidents and terrorism. Its hard to predict when these things will hit the news – progress is slow and steady for a long time, and then a technology will seem to burst onto the public scene all at once. Sometimes there is a big hype bubble that reaches a peak and seems to explode, and then while the public assumes the technology is dead, the slow and steady progress toward widespread commercialization resumes and eventually takes hold of the entire system. And then we shrug, forget the past, and assume we knew it was coming all along.

Electric Vehicles and Autonomous Vehicles. The U.S. government might be throwing up some headwinds to technological progress (i.e., doing their best to usher in a dark age not a “golden age”), but the global socioeconomic and scientific systems that drive technological progress are much too big to be constrained by the U.S. government. While many in the U.S. may have the impression that the electric vehicle revolution has stalled, it is forging ahead in Asia and around the world. China is building cars for $10,000, and nobody else (Japan, Korea, or Tesla let alone Detroit) can figure out how to compete with this. I suspect one driver of the protectionist impulse in the U.S. is fear that we have no chance of competing, so our government is willing to imprison us in a bubble of outdated technology at uncompetitive prices, and if they can’t outright restrict information about the outside world from getting in, they will use propaganda to distort that information so we don’t understand what we are missing. It’s like the Soviet Union, or worse, North Korea. We are certainly not as far behind as the Soviet Union or North Korea relative to our peers yet, but this is the path we are headed down. Similarly to electric vehicles, we are hearing from our media that autonomous vehicle technology has stalled or under-delivered or is risky (it’s not, by any rational measure compared to the massive death and suffering caused by human-driven vehicles). But this technology has in fact arrived, just arrived unevenly in certain cities in the U.S. and around the world, and our government policy is slowing its spread for example with policies that do not allow autonomous vehicles on highways. These two technologies – electric and autonomous vehicles – have to combine and reinforce each other sooner or later, and this will change a lot of things about how our cities and infrastructure are configured in the future. It’s hard to give a timetable, but I bet if you go to a leading edge city in China, Korea, or Japan a decade from now these technologies will be everywhere and it will seem like science fiction to a U.S. traveler who has been kept in the dark about the state of the outside world as our once world-leading country has stagnated.

Inequality and the Wealth Pump. I hadn’t heard the term “wealth pump” before reading Peter Turchin in 2024, but it rings true. Wealth and income inequality is just the elephant in the room behind the 2024 U.S. election and many other geopolitical trends around the world. It is getting worse in the U.S., and it is not going to get better as long as the wealthy and powerful are able to continue rigging the rules of the system more and more in their favor. The pain of the masses is very real. And Donald Trump may have found rhetoric that taps into this pain, but his administration is certainly not going to make the situation better. But nor has the Democratic Party shown any signs of making the situation better. They may tinker with some marginal policy changes that slow the trend (for example, the short-lived increase in tax credits to offset childcare expenses, some steps to slow the rise of prescription drug prices) but do not reverse it (for example, creating real childcare, education, and health care benefits that reach the vast majority of working citizens). Bernie Sanders is the only U.S. politician who has spoken authentically to the people about these issues in recent memory, and he reached a lot of people although not quite enough when the established Democratic Party did everything they could to sabotage him. There is also the problem of half a century of very effective anti-tax propaganda that is very hard to overcome. But still, I believe Bernie showed us the way. The Democrats need to embrace the man and his policies, and find him a true protege or several to choose from who are able to speak with his authenticity and maybe a bit more youth and charisma. Trump is all but guaranteed to fuck up massively over the next four years, so the question is will the Democrats let his propaganda machine convince us to blame scapegoats or will they be ready?

Government of the Fools, By the Fools, For the Fools, and Where’s Waldo? Before January 20, 2025 it was clear to me that the U.S. will be governed by fools and amateurs for the next four years. And this alone is sad because it will lead to our continued stagnation and at least relative decline while peer countries are moving into the future. It is also dangerous because the nation might be able to muddle through while there is nothing unusual going on, but fools, amateurs and clowns are not going to prepare or respond effectively to emergencies, disasters, and unexpected events. Four years is a long enough time that some unexpected events should be expected. We can only hope they are not too far out in the tails. But as I write this on January 23, 2025, it seems even worse. Trump is a fool, but a very powerful and dangerous fool, and at least some of the people whispering in his ear are evil cruel-hearted psychopaths, sadists, and outright devils. I don’t think Trump is Hitler, because Hitler believed in things (evil, twisted things) whereas I think Trump is a pure psychopath who believes in nothing and is willing to say or do anything he thinks will increase his own power. But who are the Heydrichs, Himmlers, and Goebbels among his supporters? I am not sure, but whoever they are they are hiding in plain site in a crowd of clowns and fools where they are hard to pick out. It’s time to play a little Where’s Waldo.

Welcome to 2025!

And that is all the sunshine and light I have to offer you here in this January 2025. If you are a human being reading this in close to real time, happy 2025 and may it be better than expected, which is not a high bar at all! If you are an alien archaeologist reading this in the far future, I hope it helps you make sense of the rubble of our civilization. If you are a transhuman reading it after the singularity in the near future (I heard October 2029 according to Ray Kurzweil’s latest prediction?), I hope you are laughing that the problems that seemed so dire to me in January 2025 had solutions just around the corner!

the 2024 Nobel Prize in economics

I learned about the 2024 Nobel in economics from this Planet Money podcast. Basically, the award is for work illustrating how economic growth, and hence economic inequality, can be explained by “institutions”. And specifically “inclusive institutions”. And inclusive institutions seems to come down to what is called (in academic circles and outside the U.S. political context) “liberalism”. Democracy, the rule of law, economic freedom, competitive and well-functioning markets including labor markets, free and fair trade. It all kind of makes sense, just as the world seems headed in other directions. The silver lining, I suppose, is that no matter what hand your country is dealt in terms of geography or natural resources, you can theoretically build good institutions and succeed over time.

The time is now!!! (err…2016)

Bernie Sanders 2016

We’re not going to get Bernie Sanders as President of the United States. If we are lucky, we are going to get the next-in-line representative of the pro-big-business, pro-war center-right consensus, rather than the nuclear war and climate change treaty breaking, science denying, bigoted serial rapist. We are not going to get health care, child care, and education for the vast majority of hard working citizens any time soon.

Who is the next Bernie Sanders? It is not Kamala Harris. I don’t think it’s a member of the “squad”, who seem mostly caught up in rhetoric and symbolic action around race and gender, not benefits for working people. Bernie is not the most articulate or charismatic politician out there, he is just extraordinarily authentic and straightforward. He showed us the formula, now some talented leaders should be able to emerge and follow his example.

April 2024

Most frightening and/or depressing story: Peter Turchin’s description of a “wealth pump” leading to stagnation and political instability seems to fit the United States pretty well at this moment. The IMF shows that global productivity has been slowing since the US-caused financial crisis in 2008. In Turchin’s model, our November election will be a struggle between elites and counter-elites who both represent the wealthy and powerful. That sounds about right, but I still say it is a struggle between competence and incompetence, and competence is a minimum thing we need to survive in a dangerous world. In early April I thought things were trending painfully slowly, but clearly, in Biden’s direction. As I write this in early May I am no longer convinced of that.

Most hopeful story: Some tweaks to U.S. trade policy might be able to significantly ease the “border crisis” and create a broad political coalition of bigots, big business, and people who buy things in stores.

Most interesting story, that was not particularly frightening or hopeful, or perhaps was a mixture of both: If the singularity is in fact near, our worries about a productivity slow down are almost over, and our new worries will be about boredom in our new lives of leisure. It doesn’t seem like a good idea to count on this happening in the very near future, and therefore stop trying to solve the problems we have at the moment. This would be one of those “nice to have” problems. If it does in fact materialize, the places to be will be the ones that manage to shut down Peter Turchin’s wealth pump and spread the newfound wealth, rather than the places where a chosen few live god-like existences while leaving the masses in squalor.

are “western elites” “irrational”?

This long article on Naked Capitalism claims the leadership of western countries is not effective in a crisis, and I think there may be something to this. The Covid non-response and some recent bungled natural disaster responses from New Orleans to Puerto Rico to Hawaii come to mind. This article focuses more on Ukraine, and while that situation is certainly unsatisfactory, it is hard to see what the good options would have been. The U.S. choices (NATO expansion, Balkan War, CIA interference with foreign elections) you can point to as questionable were all made years or decades ago, when this author presumably thinks leadership was better.

I certainly share the sense that our political leadership today is not particularly confidence-inspiring. So why is this? The author gives a few possibilities [my thoughts in brackets]:

  • the rich and powerful are out of touch with ordinary people [nothing new here]
  • stormtrooper syndrome – assuming you are the good guys, your opponents or competitors are the bad guys, and the bad guys can’t win [but this was certainly the case during the Cold War and the public loved it!]
  • a “conspiracy of degenerates” – this would have to be hidden from public view
  • right-wing demagogues promoting conspiracy theories and offering a simple message as an alternative that appeals to the public [certainly happening, and this is the good old Hitler playbook we have to watch out for]
  • Iron Law of Oligarchies – any organization is controlled by a small number of powerful individuals whose top priority is increasing their own power, rather than the success of the organization
  • crabs in a bucket – one crab can escape a bucket, but supposedly two or more crabs will stop each other from escaping, the implication being that relative rank is important to us animals – if I can’t succeed at everyone else’s expense, I will make sure nobody can succeed
  • the “Mowshowitz theory” – a variation on the above where power seeking behavior is rewarded within organizations rather than alignment with the stated goals of the organization, and in fact furthering the goals of the organization without seeking power can be punished
  • “intra-elite signaling dynamics” – the power of ritual to signal acceptance of a particular belief system, and the more bizarre the better [exactly what these rituals are I had trouble following]

I have had my own theories for awhile, and they have to do with education. I do not think children are being educated well in basic logic and being able to spot logical fallacies. This makes us susceptible to propaganda. They are not being educated well in the behavior of complex, dynamic systems. They are learning plenty of math and science, but it results in short-term and literal thinking rather than longer-term and abstract thinking. And finally, I don’t think children are being challenged to think morally. I’m just talking about the habit of asking yourself before you make a small daily decision whether you think on balance the consequences are on the side of right or wrong, justice or injustice.

Saturday Morning Breakfast Cereal

land value tax plan

Detroit is considering a land value tax.

The proposal, dubbed the Land Value Tax Plan, would increase taxes on land while reducing taxes on homes and structures by an expected 30%, or roughly $38 million total. This would apply to every neighborhood in Michigan’s largest city, requires no application and never expires.

If approved by the Michigan Legislature, and later by Detroit voters, Duggan said, the plan would provide relief to homeowners who have been struggling under the burden of high taxes, encourage further neighborhood growth and hold land speculators accountable.

Detroit Free Press

It makes a lot of sense to me. The cynic in me has to ask, how much are the politicians that would have to vote for this in on the land speculation game? Here in Philadelphia they certainly are. But I’m not one to name names…ah hell, COUNCILMAN KENYATTA JOHNSON I’M TALKING TO YOU.

Peter Turchin has a new book

His new book is called End Times but it does not appear to be about the apocalypse, but about a cyclical view of political history with some evidence to back it up.

When a state, such as the United States, has stagnating or declining real wages, a growing gap between rich and poor, overproduction of young graduates with advanced degrees, declining public trust, and exploding public debt, these seemingly disparate social indicators are actually related to each other dynamically. Historically, such developments have served as leading indicators of looming political instability. In the United States, all of these factors started to turn in an ominous direction in the 1970s. The data pointed to the years around 2020 when the confluence of these trends was expected to trigger a spike in political instability.

Peter Turchin

I haven’t read the book, but I have officially added it to my queue of too-many-books-to-read-before-I die. (I’m not terminally ill that I know of, it’s just a long and growing list.) The queue is periodically randomized, so just because it already has too many books to read before I die does not mean I will never read this particular book.

Anyway, one disturbing implication just from the brief description above is that we may not be able to educate our society out of economic inequality. That seems to go against the data which clearly show that people with more education earn more than people with less education. So it’s a case where a dynamic model leads to a different, counterintuitive conclusion compared to a linear extrapolation of data from the recent past.

fair start

I’m not sure, I agree on everything in this opinion piece, but it does help make a connection between childcare and family policy and the rest of society.

These family policies (which might be called constitutive or de-constitutive) do nothing to ensure that all children are born into conditions that comply with the United Nations Children’s Rights Convention—the minimum children need to comprise democracies—but instead push children into horrible conditions with no minimum levels of welfare, something done to ensure economic growth and to avoid “baby busts” or declining fertility rates. This puts wealth in the hands of a few, argues Nobel Laureate Steven Chu

These policies, designed around a system premised on unsustainable growth, aim to prepare children, already suffering from vast inequality, to become consumers and workers for shopping malls rather than preparing them equitably to grow up to become effective citizens in democratic town halls. These inequitable policies have created a fantasy world of self-determination—freedom to take part in markets—while stealing the power each voice should have in true democracies.

Alternet

Logically, if you wanted to create a truly equal opportunity society and level playing field for all people at the moment they are born, you would start with a 100% inheritance tax. Then you would provide some combination of excellent parental leave and childcare benefits and services, so parents have the choice to either take time out from a career to focus on young children, or else have excellent childcare options available to them. You would need excellent health care for all children. Then you would move on to excellent public education, probably extending all the way through four-year college. This would obviously be “expensive”, but the benefits to society would almost certainly outweigh the costs to society. The way to pay for it would be for everybody participating in the economy to pay a little bit for it all the time, rather than the cost falling just on parents just for a few years while their children are young. Society as a whole, and the vast majority of parents, would be best off under this system. A tiny fraction of wealthy individuals and organizations would be worse off, and as long as our system gives these people the vast majority of political power, they will fight like hell against this system and they will prevail.

Inheritance taxes are fair and logical, but I admit they seem distasteful because it seems like you have worked hard your whole life to set your children up for success, and then the government is taking that away and giving it to other children whose parents were not as responsible or hard working. Under this system though, you would know your children are going to be fine, and logically you should be fine with it. I am not claiming logic, human emotions and politics are closely correlated! A value added tax might approximate the same benefit and be more politically palatable. Serious campaign finance reform has to come first before we can even begin to consider this.