Tag Archives: productivity

2024 in Review

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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!

high, high, highway construction costs

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U.S. infrastructure construction cost woes stem largely from lack of competition in the construction industry and diseconomies of scale among public agencies procuring the work. I think I am using the latter term right. Very large agencies and projects are going to get better deals than smaller ones. This is somewhat of an iron law of economics, but you might be able to get around it somewhat by bundling smaller projects into larger packages and by getting larger agencies (like the federal government) more directly involved.

The former (lack of competition) is tricky. Architecture, engineering, and construction is generally not a high-profit industry, and it is a pretty high-risk industry. This all pushes towards a few large firms bidding on large projects where they can make a few pennies on a large volume. The construction industry just hasn’t made much in the way of productivity gains in the last half century either, while labor costs have been rising.

You could help solve the competition problem by allowing foreign firms in, and you could help solve the labor cost problem (from the contractors’ point of view) by letting foreign workers in. Both of these things are politically tough in the U.S.

This article in the blog Boondoggle does a pretty good job of summarizing the report in an understandable way, but it also attacks “high price consultants”. Being part of the engineering consultant industry for many years, I feel a need to push back on this a bit. Labor costs at these firms are high too, profit margins are also pretty slim, and there actually is a lot a competition in this industry. When public agencies hire a consulting firm, the price they see includes everything – the actual product of course and the employees’ salaries, but also all the employee benefits, project management, administrative, financial, and legal costs the firm has to bear, plus the taxes it has to pay. Finally, yes, a few pennies of profit on top of all that, and some money spent on marketing to the next batch of customers. When portions of a project are subcontracted, all those administrative costs get repeated at each level of the food chain. So yes, this adds of to a lot of administrative costs, and it would be great to trim them (maybe some hope for AI on this one longer term?), but the fact is that if the public agency tries to do the work with their own staff, they have almost all of these same costs, and they are typically going to be significantly higher. But people often compare only the labor and construction cost borne by the public agency to the entire cost of business borne by the private firm, which is not a fair comparison. And especially at smaller public agencies, they just aren’t going to have the capacity or expertise to do all the work in-house, which is exactly the gap the consulting industry has sprung up to fill.

So to summarize, here are some ideas:

  • Allow foreign firms and foreign workers to participate, especially in industries where it is clear competition is limited and skilled labor supply is tight. You could also try to train and equip more Americans with the skills needed and encourage formation of more firms, in theory.
  • Aggregate smaller projects and public agencies into larger ones to make them more attractive for firms to bid on. Get larger state and federal agencies involved in the procurement process where possible.
  • Turn on the research and development funding fire hose to make progress on the construction productivity problem. AI, materials science, and prefabrication of more components are all ideas being bandied about. This also gets money into the academic and research institutions which creates skills and capacity for our society.
  • Do I even need to say this? Have government provide health care and other benefits other countries are providing their citizens, and relieve this burden on our private firms so they can focus on doing whatever it is they are in business to do.

those f-ed up spreadsheets

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I’ve seen a lot of fucked up spreadsheets in my time. In fact, you could probably say most spreadsheets contain errors, and this article confirms it. Nonetheless, quality control procedures that apply to other types of software (and spreadsheets are a very useful kind of software because they are very powerful and have an easy learning curve, which is also their downfall) can and should be adapted to spreadsheets. One of the most important ones (which really applies to any program or project) is to begin the quality control process in the planning and concept development phase.

Spreadsheet quality assurance: a literature review

Spreadsheets are very common for information processing to support decision making by both professional developers and non-technical end users. Moreover, business intelligence and artificial intelligence are increasingly popular in the industry nowadays, where spreadsheets have been used as, or integrated into, intelligent or expert systems in various application domains. However, it has been repeatedly reported that faults often exist in operational spreadsheets, which could severely compromise the quality of conclusions and decisions based on the spreadsheets. With a view to systematically examining this problem via survey of existing work, we have conducted a comprehensive literature review on the quality issues and related techniques of spreadsheets over a 35.5-year period (from January 1987 to June 2022) for target journals and a 10.5-year period (from January 2012 to June 2022) for target conferences. Among other findings, two major ones are: (a) Spreadsheet quality is best addressed throughout the whole spreadsheet life cycle, rather than just focusing on a few specific stages of the life cycle. (b) Relatively more studies focus on spreadsheet testing and debugging (related to fault detection and removal) when compared with spreadsheet specification, modeling, and design (related to development). As prevention is better than cure, more research should be performed on the early stages of the spreadsheet life cycle. Enlightened by our comprehensive review, we have identified the major research gaps as well as highlighted key research directions for future work in the area.

What would a real “conservative” agenda look like?

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I consider myself a “liberal” to the extent that I think we need major expansion of the social safety net to minimize human suffering and support working families in our country. But let’s say I took a purely rational, “conservative” view. What might that entail?

  1. A level playing field. High inheritance taxes followed by redistribution using baby bonds or something similar. A public education system that spends the same amount and provides the same opportunities per student, regardless of location or background of the students. It would entail making it much easier for a second spouse to work or start a business, which would mean guaranteed childcare and health care benefits for all.
  2. A relentless focus on job skills, innovation and productivity growth. This would mean major and equitable investments in education from preschool through college. It would mean big government investments in basic research, not favoring those with military applications. It would also mean subsidies for companies to invest in research and development and skills development for the workforce. It would mean a rational immigration policy focused on letting in those with job skills that add value to our national economy.
  3. A relentless focus on competition. This would mean vigorous anti-trust enforcement and punishment of price fixing attempts.

April 2024

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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.

trade “fragmentation” vs. AI?

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One interesting thing in the IMF report I mentioned recently forecasting a significant productivity slowdown: the positive effects of AI on productivity and the negative effects of inefficient trade policy were shown offsetting each other. Meanwhile, Eric Posner is concerned that humans will have psychological difficulties leading lives of leisure after the AI-driven productivity revolution, and after our political system correctly decides to redistribute the resulting wealth to everyone. I know, this could be a medium-term pain, long-term gain sort of thing. But how do we know the long term will come? And this kind of thinking clearly ignores the existential threats like climate change and biological weapons, unless you assume the AI productivity revolution will dispatch those threats without creating new ones.

is the world in a depression?

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According to the IMF’s latest World Economic Outlook, maybe. And not just since Covid, but the world has been slowing since the 2008 financial crisis. They say it’s due to demographics (aging population, shrinking work force), “misallocation of resources” (low capital investment?), “fragmentation” (moving away from free trade?) and slowing innovation as measured by total factor productivity. Well crap. So we should have been investing in education, infrastructure, research and development all this time? Instead we let big business capture the political system, stifle competition and innovation, and starve the public realm apparently. Which is not even in their best interests in the long run. Our society is gradually slipping, and each time there is a crisis we are not able to bounce back all the way to our previous trend. Now we are looking at a looming food crisis and the loss of our coastal urban centers all over the world. And we are stupid enough to get ourselves into wars on top of all this.

generative AI in the workplace?

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Microsoft is unleashing generative AI on the workplace imminently, according to Slate.

At Microsoft’s New York release event on Thursday, I watched as it revealed products that simplify and automate some of the worst parts of office life. The company demoed a text generator that can read long Word documents and write blog posts highlighting the most relevant points. It showed another feature that allows you to prompt Copilot to summarize a slew of unread messages from an email-happy co-worker. The technology can also read transcripts of meetings you miss and note the most relevant parts, or allow you to query the full discussions. Even simple updates like prompting Copilot to create a header image for a slide deck seem quite useful.

Slate

So maybe this can partially automate some useless tasks that are taking up our time. But if they are useless, do they need to be done at all? Are they adding value at all to begin with?

Here is some advice I would give young people new to the workplace:

  1. When people give you assignments, repeat them back to confirm you understand them. If they are still not clear, put them in writing and ask the person assigning the task to confirm. In most cases, they will like this.
  2. Keep a running list of things you have been asked to do, when they are due, what their status is, and any problems/obstacles/questions you are encountering to getting them done. Look at and update this list every day.
  3. Give updates on your tasks without being asked. When you have a question, encounter an issue, or realize you may not be able to meet a deadline, talk to the person assigning the work early and often about it. They will like this. Often deadlines can be moved or you can get help, but this gets harder as a deadline approaches.
  4. Keep a calendar. Look at it and update it every day.
  5. Make it a habit to take notes in all meetings and phone conversations. You don’t have to be a court reporter. Try to capture assignments and decisions. At the end of the day and again at the end of the week, look through all your notes, list new assignments, and move them to your assignment list.
  6. Basically, you want to be a rock solid and reliable “set it and forget it” employee. This doesn’t mean you do everything perfectly all the time with no help. It means that when someone assigns you a task, they know you will either do it perfectly and on time, or much more likely, you will come to them with updates and issues that need to be resolved to get the work done. Once they assign it to you, they don’t have to think about it again until you walk through the door.
  7. #1-6 are kind of it for maybe your first year. Once you are a master note taker, list and calendar keeper, at some point you will find yourself helping others to get organized. One day, you will find yourself tracking and communicating the work of a small team of people. Which brings me to communication…
  8. Reading, writing, and speaking are all important, of course. But what is really valuable as you start moving up the business ladder is starting to get a sense of how to communicate a message to an audience. I try to ask myself three questions before preparing a document or presentation: (1) Who specifically is my audience? (2) What is the take home message I would like my audience to hear and understand? and (3) What decisions or actions would I like my audience to take after hearing and understanding my message? Get this down, and at some point you will not just be the back office “getting things done” person (although you can make a perfectly good career of that if you want to), but you will find yourself in front of customers and senior management explaining things and adding value for your organization.
  9. Maybe it doesn’t need to be said, but take some time for humanity. A little small talk and banter is how humans connect, and as long as it doesn’t get out of hand it is positive for productivity. When you work in an office, get in the habit of saying hello when you get there and good-bye before you leave. It is annoying when someone just evaporates at 5 pm and you had an important question for them. If you need to vanish at exactly 5 pm, stick your head in at 4 pm and ask if there is anything critical people need from you during the last hour of the day. This is really helpful. If you don’t need to vanish at 5 pm, stick around for a little while and review the happenings of the day with co-workers. Every once in awhile, move the banter to a local eating or drinking establishment. This is how productive, creative, innovative teams are built and I see this culture vanishing.
  10. Notice I didn’t talk much about working from home. I just don’t think it works well. Try to be there in person as much as possible.

Now, do any of the things “generative AI” can do in the short term address anything above? I’m skeptical but willing to give it a chance. A big reason for all that note taking, list and calendar keeping/reviewing/updating I do is to form a big picture in my brain of what is going on in my organization and how I can add value to it. Even if a computer can form that big picture, that is not going to put it in my brain. Maybe a computer can go through a transcript of a meeting or phone call and pull out decisions and action items. It certainly should be able to keep a calendar and do scheduling. It might be valuable if first thing in the morning the computer would say to me “consider doing this thing next” or “consider doing one these two (or three) things next”, and this would always fit into some bigger picture goal of getting everything done on time, on budget and to a high standard. Maybe virtual reality will solve some of the problems with working from home eventually. I doubt we will be there any time soon, but I also don’t doubt the computers will get better at this over time.

remote work, productivity, and lazy kids today

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I think this Fortune article (paywalled, but I was able to read it the first time I clicked) drawing conclusions about remote work based on productivity statistics is off base. Labor productivity, as I understand it, is dollars changing hands in the economy divided by hours people say they worked. There are a number of measurement problems here. First, in the short term it is just going to fluctuate with dollars changing hands, which fluctuates for all sorts of reasons, so it makes more sense to look at longer-term averages. Second, dollars changing hands is not a perfect measure of value – we could be paying the same number of dollars for crappier goods and services as our expectations are gradually lowered over time. I really suspect this is what is happening.

It does make sense to me that self-reported hours worked at home would be less productive. Even if most people are honest most of the time, some people are going to be less honest some of the time than they would be in an office. People are going to be more distracted. But in all these cases, they are going to report the same number of hours worked and get paid the same number of dollars they would have in the office. So there will be no effect on calculated productivity, while we get used to gradually shifting baseline of crappier goods and services over time.

I think another effect is that training and onboarding are getting harder in some sorts of jobs. Some jobs have a playbook telling a worker exactly what to do, but many jobs do not. In my field of engineering, there is not much of a playbook because we are often trying to apply existing knowledge to solve novel problems under changing external conditions. I learned this job in the 1990s and 2000s by spending a lot of extra time in the office at the end of the day shooting the breeze with colleagues, mentors, and clients. Somewhat frequently, someone would suggest moving these sessions to a local drinking establishment and they would go well into the evening. This was not necessarily healthy for work-life balance or for my liver and waistline, but it’s an important part of how I learned my job and industry and why I am good at it today. This time didn’t go on my time sheet, and yet it boosts my subjectively measured productivity today.

I don’t want to complain about today’s crop of young people, who are just as intelligent as my generation (perhaps more since they’ve been exposed to less lead and air pollution) and seem to have better health habits overall. But the combination of working from home, less informal interaction with mentors, and job hopping means it is much harder for them to learn to do jobs really well. In decade, they will be the ones doing most of the work and trying to train the generation under them, and again we will just get a gradually shifting baseline of lower expectations and worse outcomes, even if we may not be measuring that effectively in dollars.

U.S. labor market growth

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Axios has a brief piece on the demographics of the labor force in the U.S. A tight labor market is not just a short-term phenomenon during the pandemic recovery.

In the 2010s, the massive millennial generation was entering the workforce, the massive baby bo0m generation was still hard at work, and there was a multi-year hangover from the deep recession caused by the global financial crisis. But now, boomers are retiring, millennials are approaching middle age, and the Gen Z that follows them is comparatively small.

Axios

So combine this trend with anti-immigrant politics, and we may have a problem. It could lead to the double-edged sword of higher wages and inflation, a trend toward toward greater automation and technological innovation, a general drag on economic growth (which could ultimately lead to deflation), left wing politics, right wing politics, business pressure for more globalization/offshoring, or some combination of any of these (other than inflation and deflation, but maybe it is possible to have a sudden reversal between these and hard for policy to react quickly even if we knew what to do). It is hard to know what to do, but rational immigration policies based on skills and education to fill jobs available would be a start.