Tag Archives: Politics

Why I Lean Libertarian

Imagine that one person, or a small group, wants to do something, like watch pornography, do uncertified medical procedures, have gay sex, worship Satan, shoot guns, drink raw milk, etc. Imagine further that many other people outside that small group don’t want them to do this. They instead want the government to make a law prohibiting similar groups from doing similar things.

In this prototypical situation, libertarians tend to say “let them do it” while others say “have the government make them stop.” If we take a cost-benefit perspective here, then the key question here is whether this small group gains more from their activity (or an added increment of it) than others lose (including losing via their “altruistic” concern for the small group). Since this small group would choose to do it if allowed, we can presume they expect to gain something. And if others complain and try to make them stop (or cut back), we can presume they expect to lose. So we are trying to estimate the relative magnitude of these two effects.

I see three considerations that, all else equal, lean this choice in the libertarian direction.

  •  Law & Government Are Costly – It will take real resources to create and enforce a law to ban this activity. We’ll have to negotiate the wording of this law, and then tell people about it. People will complain about violations, and then we’ll have to adjudicate those complaints, and punish violators. We’ll make mistakes in which laws to create, who to punish, and how to manage the whole process. More rules will discourage innovation, and invite more lobbying. All of which is costly.
  • Local Coordination Might Work – If people do something that hurts those around them more, often those nearby others can coordinate to discourage them via contract and freedom of association. If playing your music loud bothers folks in the apartment next door, your common landlord can set rules to limit your music volume. And kick you out if you don’t follow his rules. The more ways that smaller organizations could plausibly solve a problem, the less likely we need central government to get involved.
  • Lawsuits Might Work – Legal systems have well-established processes whereby some people can sue others, claiming that the actions of those others have hurt them. Suit losers must pay, discouraging the activity. Yes, people harmed can need to coordinate to sue together, and yes legal systems tend to demand relatively concrete evidence of real harm, and that the accused caused that harm. It might be hard to figure out who to accuse, the accused might not have enough money to pay, and the legal process might be too expensive to make it worth bothering. But again, the more situations where the law could plausibly solve the problem, the less likely that we need extra government involvement.

Again, each of these considerations leans the conclusion in a libertarian direction, all else equal. Yes, they can collectively be overcome by strong enough other considerations that lean the other way. For example, I’ll grant that for the case of air pollution, we plausibly have strong enough evidence of large harms on outsiders, harms insufficiently discouraged by local coordination and lawsuits. So yes in this case central government might be an attractive solution, if it can act cheaply and efficiently enough.

But the main point here is that the three considerations above justify a libertarian default that must be overcome by specific arguments to the contrary. If outsiders complain about an activity, but aren’t willing to buy less of it via contract, or to sue for less of it in court, maybe they aren’t really being hurt that much. There is an asymmetry here: if we don’t ban an activity and might get too much, contract & law could reduce it a lot, but if we ban an activity and might get too little, contract & law can’t increase it much.

Yes, other persuasive contrary considerations might be found, including considerations not based on the net harm of the disputed actions. But the less you think you know about these other considerations, the more your choice will be influenced by these three basic considerations, all of which seem to me pretty solid.

While I have said before that I am not a libertarian according to common strict definitions, I still usually tend to lean libertarian, because in fact arguments based on further considerations often seem to me pretty weak. While one can often make clever arguments, it is often hard to have much confidence in them; the world seems just too complex. And so I often have to fall back on simple defaults. Which, as I’ve argued above, are libertarian.

GD Star Rating
loading...
Tagged as: , , ,

Tax Coastal Cities?

(Nobel-winner) Thomas Schelling just gave a talk here at GMU Econ on “Two Major Infrastructure Worldwide Projects to Prepare for Global Warming.” He said most work on global warming focuses on how to prevent it, and that there’s been a bit of a taboo on looking at how to mitigate harm if it happens.

He defied that taboo, and talked about two harms from global warming: 1) crop drought due to snowpacks melting earlier in the annual cycle, and 2) sea levels rising if the Greenland or Antarctic ice sheets suddenly slip into the sea. For both problems Schelling wants central governments to start planning possible large engineering projects.

On overly-early farm-water, he wants new canals and reservoirs dug to hold water until farmers want it and then deliver that water to them. For rising sea levels he wants dikes etc. to keep coastal cities dry. Such city protection systems could be at the scale of the harbor of a single city, or at the scale of blocking the Strait of Gibraltar to protect the entire Mediterranean Sea.

On protecting coastal cities, John Nye pointed out that if governments are willing to do anything now they should consider taxing coastal cities to collect revenue to pay for future mitigation. This has the further big benefit of discouraging risky coastal development. And if governments aren’t willing to do this obvious easy thing now, what hope is there of them doing much useful later?

Most of the coastal city structures that would be hurt via rising sea levels probably haven’t been built yet. So trying to get governments to start planning to protect coastal cities runs the risk of encouraging too much coastal development, which then becomes insufficiently protected or protected at excess expense.

The fact that central governments are not coordinating much to reduce global warming suggests that they will also fail to coordinate at large scales to mitigate harm from warming. So a simpler safer solution might be to have central governments try to commit to not protect coastal cities in advance. Don’t even start central government initiatives to coordinate and plan for coastal protection, and stop current central government coastal protection programs, such as subsidized hurricane insurance.

If coastal cities want to tax themselves to pay for their own local mitigation, fine, but to the extent we expect that more central governments won’t be able to resist helping later, have them tax low-lying coastal development in advance to pay for that. Let everyone know its time to start focusing new development away from low coasts.

The problem of building reservoirs for farmers seems more easily dealt with via private property in water. If private parties can pay to dig reservoirs to sell water to private farmers at market prices, it isn’t clear why much central government coordination is required.

Added: Seems Glenn Reynolds proposed to tax coastal development a month ago. HT Robert Koslover in the first comment below.

GD Star Rating
loading...
Tagged as: , ,

Hive Mind

Some people like murder mystery novels. I much prefer intellectual mysteries like that in Garett Jones’ new book Hive Mind: How Your Nation’s IQ Matters So Much More Than Your Own:

Over a decade ago I began my research into how IQ matters for nations. I soon found that the strong link between average IQ and national productivity couldn’t be explained with just the conventional finding that IQ predicts higher wages. IQ apparently mattered far more for nations than for individuals. In my early work, I estimated that IQ mattered about six times more for nations than for individuals: your nation’s IQ mattered so much more than your own. That puzzle, that paradox of IQ, is what set me on my intellectual journey. …

I’ll lay out five major channels for how IQ can pay off more for nations than for you as an individual: Continue reading "Hive Mind" »

GD Star Rating
loading...
Tagged as: , ,

Seeking Super Factors

In a factor analysis, one takes a large high-dimensional dataset and finds a low dimensional set of variables that can explain as much as possible of the total variation in that dataset. A big advantage of factor analysis is that it doesn’t require much theoretical knowledge about the nature of the variables in the data or their relations – factors are mostly determined directly by the data.

Factor analysis has had some big successes in helping us to understand how humans differ. As many people know, intelligence is the main factor explaining variation in cognitive test performance, ideology is the main factor explaining variations in political positions, and personality types explain much of the variation in stable attitudes and temperament. These factors have allowed us to greatly advance our understanding of intelligence, ideology, and personality, even while remaining ignorant of their fundamental causes and natures.

However, people vary in far more ways than intelligence, ideology, and personality, and factor analyses have been applied to many of these other human feature categories. For example, there have been factors analyses of jobs, brands, faces, body shape, gait, accent, diet, clothing, writing styleleisure behavior, friendship networks, sleep habitsphysical health, mortality, demography, national cultures, and zip codes.

As my last post on media genre factors showed, factors found in different feature categories are often substantially correlated with one another. This suggests that if we put together a huge super-dataset describing many individual people in as many ways as possible, a factor analysis of this dataset may find important new super-factors that span many of these features domains. Such super-factors would be promising candidates to use in a wide range of social research, and social policy.

Now it remains logically possible that these super-factors will end up being simple linear combinations of the factors that we have already found in each of these feature categories. Maybe we already know most of what there is to know about how humans vary. But I’d bet strongly and heavily against this. The rate at which we have been learning new things about how humans vary doesn’t remotely suggest we’ve run out of new big things to learn. Yes, merely knowing the super-factors isn’t the same as understanding their origins. But just as we’ve seen with factor analysis in more specific areas, knowing the main factors can be a big help.

So I’d guess that the super-factors found in a super dataset of human details will be revolutionary developments. We will afterward see uncovering them as a seminal milestone in our progress in understanding human variation. A Nobel prize worthy level of seminality. All it will take is lots of tedious work to collect a super dataset, and then do some straightforward number crunching. A quest awaits; who will rise to the challenge?

GD Star Rating
loading...
Tagged as: , , ,

Media Genre More Basic Than Politics Or Personality?

While our personalities are correlated with whether we are liberal or conservative, it seems that neither one of these causes the other. Instead, their correlation is caused by something else that causes both, and that is caused in part by genetics:

The primary assumption within the recent personality and political orientations literature is that personality traits cause people to develop political attitudes. In contrast, … the covariance between personality and political preferences is not causal, but due to a common, latent genetic factor that mutually influences both. … Change in personality over a ten-year period does not predict change in political attitudes. .. Rather, political attitudes are often more stable than the key personality traits assumed to be predicting them. (more)

Amazingly, we know of another variable B that fits this bill, of being correlated with both personality A and political orientation C, and mediating their relation. In technical language, A and C are conditionally independent given B, so that P(C|AB) = P(C|B). This B is preferences for media genres!

Research has consistently demonstrated that political liberalism is predicted by the personality trait Openness to Experience and conservatism by trait Conscientiousness. … Increased preferences for Dark/Alternative and Aesthetic/Musical media genres, as well as decreased preferences for Communal/Popular media genres, mediated the association between Openness to Experience and liberalism. In contrast, greater preferences for Communal/Popular and Thrilling/Action genres, as well as lower preferences for Dark/Alternative and Aesthetic/Musical genres mediated the link between Conscientiousness and conservatism. (more)

So media genre preference is actually a plausible candidate for something closer to whatever causes personality and political orientation, and is caused in part by genes. This makes intuitive sense to me, because I personally feel more aware of, confident in, and comfortable with my media genre preferences than in my personality types or my political orientation.

These authors (Xiaowen Xu & Jordan Peterson) took a survey of 543 US people, and did a factor analysis on their media preferences. They found five factors. The strongest media factor is:

  • Cerebral/Nonfiction: e.g., educational, arts & humanities TV; nonfiction, academic, reference, current events, biography, science, medical books.

This factor doesn’t correlate with political orientation, but it does correlate with the openness personality factor, which has a subfactor of intellect, so this all makes sense.

The other four media factors split nicely into a 2×2 matrix along two dimensions. One dimension is “highbrow” vs. “lowbrow.” (Cerebral/Nonfiction is also “highbrow”.) The other dimension is personality/politics: two factors correlate with both liberals and those with open personalities, and two factors correlate with both conservatives and those with conscientious personalities. Here are these four media factors:

Highbrow:

  • Open/Liberal: Aesthetic/Musical: e.g., world, jazz, opera, folk, classical, funk, gospel, blues, new age music; foreign film, poetry book.
  • Consc/Conser: Communal/Popular: e.g., daytime talk, reality, game, soaps, kids TV; made for TV movies; music TV; family films; pop music.

Lowbrow:

  • Open/Liberal: Dark/Alternative: e.g., horror, science fiction, fantasy, cult, erotic, animation, & independent film; punk, alt, & metal music; sketch comedy.
    Consc/Conser: Thrilling/Action: e.g., action, sports & spy TV; war, western, action film; computer & adventure book.

(My personal tastes favor Cerebral/Nonfiction first, then Dark/Alternative weak second.)

While personality and political variables come from factor analyses of survey answers to relatively abstract attitude and opinion question, media genre variables seem more closely related to concrete real-life choices that people make. And it makes sense to me that our genes (and culture) more directly cause our inclinations to take concrete actions, and that abstract attitudes and opinions result more indirectly, from our trying to rationalize those actions. So it makes sense to me that media genre preferences are closer to more direct genetic (and cultural) causality.

A few more results from the paper: Older people prefer Dark/Alternative less and Cerebral/Nonfiction more, while women prefer Communal/Popular more and Thrilling/Action less. These can explain the personality correlates of age and gender. Agreeableness is higher for those who like highbrow genres (except Aesthetic/Musical has no effect), and less for those who like lowbrow genres. Extraversion is higher for those who like conservative genres, though it doesn’t correlate directly politics directly because personality factors are highly correlated in this dataset. Neuroticism is less for those who like Cerebral/Nonfiction and Thrilling/Action.

GD Star Rating
loading...
Tagged as: , ,

Masking Design Competence

Most real organizations have many design problems. This is most explicit in engineering type organizations, but such issues are nearly as common in all organizations. Any organization must make many choices regarding the design and marketing of their product or service, in how it will be financed, sourced, produced, tested, stored, transferred, priced, evaluated, etc.

For most such design problems, most organizations have some standard ideal design criteria. The organization is supposed to search in the space of possible designs for ones expected to do well according to the ideal criteria. And then adopt those better designs. In profit-oriented firms, many key criteria are closely aligned with firm profit.

According to the usual ideal norm in organizations, everything should be arranged to promote good designs according to the ideals. For example, the people who most influence a design choice should be those with the most relevant info and the strongest incentives to get it right. People should be hired and promoted according to their ability to help make good design choices. Designs should be changed when circumstances suggest that the ideal design has changed. And so on.

Real organizations also have complex Machiavellian politics. Coalitions form that promote their members at the expense of rivals. Members are chosen for their loyalty and ability to help the coalition. Coalitions sometimes reform, dropping some factions and adding others. Members must show loyalty to their coalitions by visibly promoting design choices that benefit their coalition, even when that comes at the expense of the organization’s ideal design criteria.

This conflict between design choices that meet ideals and those that help coalitions drives may of the illusions and hypocrisies in organizations. For example, people are often placed in positions of power for reasons other than their superior design competence, such as their info and abilities regarding key decisions. This creates a demand to give those people the illusion of design competence.

For example:

When I started at Lockheed Research in 1985, my mentor was a veteran who explained his secret for getting funding from the other Lockheed divisions:

Find an idea for a project we could do for them, but don’t tell them the idea. Instead break the idea into a few key parts, describe the parts to them, and let them put the parts together into the total idea. They will be much more willing to fund a project that is their idea.

A related strategy is to design a solution but then weaken it to a space of nearby solutions. Tell your manager “I think something in this space should work but I can’t figure out what” and let him reinvent your particular solution point. He then owns the design more, and can claim more credit for design competence.

As another example, as I’ve mentioned before people often pretend to ask people for advice as if they wanted info, but in fact they are seeking allies. In general, boards of advisors are rarely actually asked for their advice; they are mainly chosen to add prestige to an organization.

Meetings in organizations often take the appearance of searching for design proposals and evaluating proposals presented. But in fact proposals have usually been selected beforehand, and the meeting is to create an appearance of support form them, and for the story presented about who deserves credit. If a problem is presented for which a solution isn’t offered, that is probably because they don’t don’t see a solution with which they’d want to be associated, and would rather someone else take on that failure area.

Powerful people can also create the appearance of more design competence than they actually have by pushing vague design philosophies that others can then claim to adhere to without actually greatly constraining their choices. Also, powerful people can claim that complex organizational considerations require them to keep the reasons for their design choices secret. Others can then just assume they must have great design competence regarding such considerations.

It helps to have a culture of assuming that the people with the best credentials in terms of education and prior organization and positional prestige have the most design competence. Since these people happen to the those that are most useful for coalitions to put into positions of power, the conflict between power and apparent design competitions is reduced.

Can readers think of more examples? If so, I’ll add good ones to this post.

GD Star Rating
loading...
Tagged as: , ,

Specific vs. General Foragers & Farmers

Scott Alexander in 2013:

Rightism is what happens when you’re optimizing for surviving an unsafe environment, leftism is what happens when you’re optimized for thriving in a safe environment. … “Take actions that would be beneficial to survival in case of a zombie apocalypse” seems to get us rightist positions on a lot of issues. We can generalize from zombie apocalypses to any desperate conditions in which you’re not sure that you’re going to make it and need to succeed at any cost.

What about the opposite? Let’s imagine a future utopia of infinite technology. Robotic factories produce far more wealth than anyone could possibly need. … Even death itself has disappeared. What policies are useful for this happy state? …

If the brain finds itself in a stable environment where everything is abundant, it sort of lowers the mental threat level and concludes that everything will always be okay and its job is to enjoy itself and win signaling games. If it finds itself in an environment of scarcity, it will raise the mental threat level and set its job to “survive at any cost”. … Leftism wins over time because technology advances over time which means societies become more secure and abundant over time. …

Both Greece and Rome were relatively leftist, with freedom of religion, democratic-republican governments, weak gender norms, minimal family values, and a high emphasis on education and abstract ideas. After the Fall of Rome, when Europe was set back technologically into a Dark Age, rightism returned with a vengeance. …

“So you mean rightism is optimized for tiny unstable bands facing a hostile wilderness, and leftism is optimized for secure, technologically advanced societies like the ones we are actually in?” And this conclusion, too, I will mostly endorse. (more)

Much of this is pretty compatible with the forager-farmer perspective I outlined in 2010. To review, as foragers our attitudes and inclinations were well adapted to our environment, but the farming environment was so different that to become effective farmers we had to drastically change such things in a short time. So we cranked up the pressure on social conformity, religion, etc. in order to enforce strong new social norms favoring new farming behaviors. But because these were built on fear, and went somewhat against our deeper natures, rich safe elites have often drifted back toward forager styles, and the whole world has drifted that way together since we’ve all gotten rich and safe with industry. This view makes sense of many long term trends over the last few decades, such as trends toward more leisure, travel, product variety, egalitarianism, democracy, peace, and slavery aversion.

However, in addition to the forager-farmer or survive-thrive distinction, there is another related distinction that I think I, and Scott above, haven’t been thinking clearly enough about. And that is the distinction between supporting specific ways of foragers and farmers, and generalizing their attitudes toward simpler more general principles. Let me explain. Continue reading "Specific vs. General Foragers & Farmers" »

GD Star Rating
loading...
Tagged as: , , ,

Youth Movements

Have you heard about the new “effective cars” movement? Passionate young philosophy students from top universities have invented a revolutionary new idea, now sweeping the intellectual world: cars that get you from home to the office or store and back again as reliably, comfortably, and fast as possible. As opposed to using cars used as shrub removers, pots for plants, conversation pits, or paperweights. While effective car activists cannot design, repair, or even operate cars, they are pioneering ways to prioritize car topics.

Not heard of that? How about “effective altruism”?

Effective altruism is about asking, “How can I make the biggest difference I can?” and using evidence and careful reasoning to try to find an answer. Just as science consists of the honest and impartial attempt to work out what’s true, and a commitment to believe the truth whatever that turns out to be, effective altruism consists of the honest and impartial attempt to work out what’s best for the world, and a commitment to do what’s best, whatever that turns out to be. …

I helped to develop the idea of effective altruism while a [philosophy] student at the University of Oxford. … I began to investigate the cost-effectiveness of charities that fight poverty in the developing world. The results were remarkable. We discovered that the best charities are hundreds of times more effective at improving lives than merely “good” charities. .. From there, a community developed. We realized that effective altruism could be applied to all areas of our lives – choosing charity, certainly, but also choosing a career, volunteering, and choosing what ewe buy and don’t buy. (MacAskill, Doing Good Better)

This all sounds rather vacuous; who opposes applying evidence and careful reasoning to figure out how to do better at charity, or anything? But I just gave a talk at Effective Altruism Global, and spent a few days there chatting and listening, and I’ve decided that they do have a core position that is far from vacuous.

Effective altruism is a youth movement. While they collect status by associating with older people like Peter Singer and Elon Musk, those who work and have influence in these groups are strikingly young. And their core position is close to the usual one for young groups throughout history: old codgers have run things badly, and so a new generation deserves to take over.

Some observers see effective altruism as being about using formal statistics or applying consensus scientific theories. But in fact effective altruists embrace contrarian concerns about AI “foom” (discussed often on this blog), concerns based neither on formal statistics nor on applying consensus theories. Instead this community just trusts its own judgment on what reasoning is “careful,” without worrying much if outsiders disagree. This community has a strong overlap with a “rationalist” community wherein people take classes on and much discuss how to be “rational”, and then decide that they have achieved enough rationality to justify embracing many quite contrarian conclusions.

Youth movements naturally emphasis the virtues of youth, relative to those of age. While old people have more power, wealth, grit, experience, task-specific knowledge, and crystalized intelligence, young people have more fluid intelligence, potential, passion, idealism, and a clean slate. So youth movements tend to claim that society has become lazy, corrupt, ossified, stuck in its ways, has tunnel-vision, and forgets its ideals, and so needs smart flexible idealistic people to rethink and rebuild from scratch.

Effective altruists, in particular, emphasize their stronger commitment to altruism ideals, and also the unusual smarts, rationality, and flexibility of their leaders. Instead of working within prior organizations to incrementally change prior programs, they prefer to start whole new organizations that re-evaluate all charity choices themselves from scratch. While most show little knowledge of the specifics of any charity areas, they talk a lot about not getting stuck in particular practices. And they worry about preventing their older selves from reversing the lifetime commitments to altruism that they want to make now.

Effective altruists often claim that big efforts to re-evaluate priorities are justified by large differences in the effectiveness of common options. Concretely, MacAskill, following Ord, suggested in his main conference talk that the distribution looks more like a thick-tailed power law than a Gaussian. He didn’t present actual data, but one of the other talks there did: Eva Vivalt showed the actual distribution of estimated effects to be close to Gaussian.

But youth movements have long motivated members via exaggerated claims. One is reminded of the sixties counter-culture seeing itself as the first generation to discover sex, emotional authenticity, and a concern for community. And saying not to trust anyone over thirty. Or countless young revolutionaries seeing themselves as the first generation to really care about inequality or unwanted dominance.

When they work well, youth movements can create a strong bond within a generation than can help them to work together as a coalition as they grow in ability and influence. As with the sixties counter-culture, or the libertarians a bit later, while at first their concrete practice actions are not very competent, eventually they gain skills, moderate their positions, become willing to compromise, and have substantial influence on the world. Effective altruists can reasonably hope to mature into such a strong coalition.

Added 1a: The last slide of my talk presented this youth movement account. The talk was well attended and many people mentioned talked to me about it afterward, but not one told me they disagreed with my youth movement description.

Added 10a: Most industrials and areas of life have a useful niche to be filled by independent quality evaluators, and I’ve been encouraged by the recent increase in such evaluators within charity, such as GiveWell. The effective altruism movement consists of far more, however, than independent quality evaluators.

Added 8Aug: OK, for now I accept Brienne Yudkowsky’s summary of Vivalt, namely that she finds very little ability to distinguish the effectiveness of different ways to achieve any given effect, but that she doesn’t speak to the variation across different kinds of things one might try to do.

GD Star Rating
loading...
Tagged as: , ,

Em Redistribution

I’m in the last few weeks of finishing my book The Age of Em: Work, Love, and Life When Robots Rule The Earth, about social outcomes in a world dominated by brain emulations. As a teaser, let me share some hopefully non-obvious results about redistribution in the em world.

There are many kinds of inequality. Inequality exists between different species, between generations born at different times, and between nations of the world at a time. Within a nation at a time, there is inequality both between families and within families. There is also inequality across the moments of the life of each person. In all of these cases, there is not only financial inequality, but also inequality in status, prestige, pleasure, lifespan, happiness, and more. There is also inequality between the size of families, firms, cities, or nations, even when individuals within those groupings are equal.

Today, we have relatively little intentional redistribution between generations or between nations. Redistribution within the moments of a person’s life happens, but that is mostly left to that person to choose and to fund. Similarly, redistribution between siblings is mostly achieved via differential treatment by parents. Instead, most concern today about inequality, and most debate about redistribution to address inequality, focuses on one very particular “standard” kind of inequality.

This standard inequality looks at differences in average individual financial incomes between the families of a nation, all at a given time. This type of inequality is actually one of the smallest. For example, in the U.S. today financial inequality between families is only one third the size of that inequality between siblings within families, and even that is much less than the inequality between individuals from different nations. We may focus our redistribution feelings on this standard inequality because it seems to us the most analogous to the inequality that forager sharing norms addressed. Alternatively, perhaps it is the most profitable type of redistribution for opportunistic rent-seekers.

This history suggests that the em world will have little redistribution between em generations or city states, and also that each clan is mostly in charge of deciding how to address inequality within that clan. After all, em clan members are more similar and closer to each other than are human siblings, even if they may sometimes be more distant from each other than are typical human life moments. Also, clan members have rather complex relations with each other, making it hard pick a natural sub-clan unit to be the standard basis for counting inequality. So that leaves ems with comparing inequality between clans.

A set of em clans can be unequal in two different ways. One way focuses on individual incomes, or perhaps individual happiness or respect, and says that a clan is better off if its individuals are on average better off. The other way focuses on the overall size and success of a clan. Here a clan is better off if it has more members, resources, or respect. Historically, most redistribution efforts have focused on average individual outcomes. For example, we have seen very little efforts to redistribute between human family clans based on family size. That is, we almost never take from families with many descendants in order to give to families that have few descendants. Nor do we take much from big nations, cities, or firms to give to smaller ones.

Because most em wages are near subsistence levels, unregulated wages have less inequality than do wages today. So em clans naturally have less inequality of the standard sort that is the focus of today’s redistribution. In contrast, em clans have enormous inequality in clan size, resources, and respect. However, history gives little reason to expect much redistribution to address this inequality. It is not very analogous to forager sharing, nor does it lend itself to profitable rent-seeking.

Thus the main kind of redistribution that we have reason to expect in the em era is between the clans of a city, based on differences of average within-clan individual income. But we expect less inequality of this sort in the em world, and so expect less redistribution on this basis.

Income taxes are today one of our main mechanisms for reducing the standard inequality that compares individual incomes between families within a nation. Over the last two centuries, big increases in the top marginal tax rates have mostly followed wars where over two percent of the population served in the military. For example, in the U.S. the top marginal tax rate jumped from 15% to 67% in 1917, during World War I. Controlling for this effect, top tax increases have not been correlated with wealth, democracy, or the political ideology of the party running the government. This weakly suggests that the local degree of individual income redistribution between the clans of an em city may depend on the local frequency of large expensive em wars.

If ordinary humans are included straightforwardly in the redistribution systems of the em world, then the simple result to expect is transfers, not only away from richer humans, but also from humans to ems overall. After all, in purely financial terms typical ems are poorer than the poorest humans. Redistribution systems may perhaps correct for the fact that em subsistence levels are much lower than are human subsistence levels. But if so such systems may also encourage or even require recipients of aid to switch from being a human to being an em, in order to lower costs.

During the em era, humans typically have industrial era incomes, which are much higher than subsistence level incomes. While many and perhaps most humans may pay to create a few ems, they tend to endow them with much higher than subsistence incomes. In contrast, a small number of successful humans manage to give rise to large em clans, and within these clans most members have near subsistence incomes. Thus transfers based on individual income inequality take from the descendants of less successful humans and give to descendants of more successful humans.

GD Star Rating
loading...
Tagged as: , ,

Regulating Government

Wall Street is apparently profiting from helping local governments use an accounting trick to underfund pensions:

Pension bonds … current boom is … being driven … by a new accounting quirk that has largely escaped public notice while morphing into a major marketing tool for Wall Street banks. The quirk stems from a rule change that was meant to force governments to more clearly disclose the health of their pension funds. … If a pension plan is so poorly funded that it is projected to run out of cash, the new rules require it to make less optimistic projections about future returns. That increases the reported pension shortfall. But if governments infuse a big slug of borrowed money into the fund, they can resume using optimistic projections, and the shortfall shrinks. …

A review by ProPublica and The Post of the 20 largest pension bonds issued since 1996 found that in three-fourths of the deals, governments did not make their full required contribution in the years after the bonds were sold. … Because of the underfunding, most of the pension funds now are worse off than before the bonds were issued. (more)

I find it plausible that these pension bonds are often bad ideas, and that some general regulation might be useful to prevent their misapplication. But today I’m less interested in the particular issue of pensions, and more in the general issue of when democratic governments can be trusted to act in the interest of their voters.

Consider also the examples of public employee unions, and of eminent domain. In all these cases we don’t trust democratic governments to make the best choices for their citizens, and so we may empower some other democratic government to regulate or constrain those distrusted governments. For example, it seems we don’t trust governments to choose good wages for their employees, since we empower unions to negotiate with them.

It is not just that some citizens aren’t allowed to vote, or that governments representing different regions may have conflicts, or that the same government at different times can have conflicting time-inconsistent preferences. It seems to also be about a limited ability of citizens to pay attention to government activities. But how is it exactly that citizens can pay enough attention to the regulating government to help it choose a good regulation role, but can’t pay enough attention to the regulated government, tempting that government to make bad decisions? How is this supposed to work, even in theory?

This seems an important issue, and I’m interested in reading more about it. I expect there is a literature out there on this, but I don’t recall ever coming across it. Anyone have some good cites?

This topic is of course related to the possibility that governments may often be over-regulated.

GD Star Rating
loading...
Tagged as: ,