Category: Current Affairs
Democracy and Caeserism
In my 2015 post discussing Joseph Heath’s excellent book Enlightenment 2.0, I had this to say:
One of the reasons that I oppose the extension of democratic politics into every aspect of modern life is precisely that in trying to do too much, democracy delivers incoherence, gridlock and frustration, forces that eventually undermine its own legitimacy. I worry about democratic legitimacy because I see democracy as a check and balance on Leviathan (while Heath sees it as a check on government by experts).
The legislature has become a sideshow. But I worry, because the more Congress is held in contempt the greater the support for a bold executive that takes charge, makes decisions and gets things done. Under these pressures, executive power has grown not just in the United States but also in Canada and Great Britain (on this theme see F.H. Buckley’s The Once and Future King.) But for all its faults, the legislature and the rule of law are more conducive to liberty than the executive and the administrative state. Legislators are satisfied with reelection and a bit of pork but executives hunger for greatness and in so doing they promote the real dangers, idolatry, the centralization of power and war.
In short, I worry that the pathologies of democracy drive the demand not for rational, technocratic government but for Caesarism.
I should note that this was before Donald Trump was a Republican presidential contender, let alone a candidate for office.
Addendum: See also my review of Enlightenment 2.0. It has some good lines!
The propagandizing messages of markets and politics are also very different. Market messages are largely inclusive and cosmopolitan. Coca-Cola advertises “I’d Like to Buy the World a Coke” because they’d like the world to buy a Coke. Firms do try to build brand affiliation but they rarely do so by promoting hatred of their competitors. Pepsi doesn’t tell the Pepsi Generation that Coke drinkers are stealing their jobs and spitting on their gods.
Hat tip: @kingofthecoastt who recently tweeted about the original post.
The End of Friday Nights with Friends
This study examines how Americans’ time with friends has changed over the week, focusing not on how much social interaction has declined but on when it has. Using American Time Use Survey data from 2003 to 2024 (N = 243,095), I map hourly patterns of “friend time” across the days of the week. In the early 2000s, social life followed a clear weekly rhythm: Modest weekday interaction built toward pronounced peaks on Friday and Saturday nights. Since the mid-2010s, that rhythm has collapsed. Friday night, once a central site of social activity, now looks like a typical weeknight. Saturday remains elevated but less so than before. Overall, time with friends has fallen by more than half. The mix of social activities, however, has remained stable. Americans have not replaced one form of interaction with another; they have reduced social interaction across the board. These findings point to a temporal reorganization of social life marked by the disappearance of the “night out.”
That is by Neal Caren, via the excellent Kevin Lewis. So what did you go last evening?
Green shoots for the UK?
Early signs of tech-driven improvements in productivity growth could herald a sustained strengthening in the UK’s economic outlook, analysts have said, in a turnaround after years of underperformance. Private sector productivity grew by 1.8 per cent in the second quarter compared with a year earlier, up from 1.2 per cent previously, according to analysis of official data by investment bank Morgan Stanley.
The rise extended gains since 2024 and reduced the growth gap with the US. The reasons behind the upsurge are heavily contested, but some analysts point to increasing AI adoption in sectors including information technology and business services.
If the recent productivity acceleration can be sustained over years, it could bolster incomes and help alleviate some of the strains on Britain’s public finances.
My excellent Conversation with Luke Burgis
Here is the audio, video, and transcript. Here is the episode summary:
Luke Burgis left Wall Street after two years, founded a few successful companies in his twenties, then walked away to spend three years in a Roman seminary on the path to the priesthood. He now runs the Cluny Institute and teaches at Catholic University. His book Wanting made René Girard legible to a general audience; the new one, The One and the Ninety-Nine, takes mimetic theory into the dynamics of self and crowd in an age of social contagion.
He joined Tyler to discuss whether the age of pessimism is ending, why the Anglo world in particular seems so unhappy, whether Dostoevsky or Thomas Mann better diagnoses modernity, the kind of reader his own book would ruin, why he thinks AI will make social contagion weaker, what put him off consulting with Anthropic on Claude’s constitution, what effective altruism misses, why men and women are drifting apart, what he’d fund in every American city, the case for reintroducing friction, whether a Gnostic reading of the lost sheep explains our moment, what Rod Dreher gets right about withdrawal, why Genoa is Italy’s most underrated city, what confession times reveal about a church, why Italians seem tired of their Catholicism, why he didn’t become a priest, where he differs from Ross Douthat, why exorcists appear to be on the rise, the sudden mimetic antisemitism on the right, the book his 23-year-old self would have hated, what he secretly admires about Silicon Valley, why Michigan never left him, what the original Cluny can teach a modern talent network, how he hopes to face his own death, what he’ll do next, and more.
Excerpt:
COWEN: I’m not saying you’ll ever do it, but what does your escape fantasy look like? One of mine is I’ll go live in a third-tier city in Mexico. I’m not going to do it, but sometimes I think about it. Cost of living would be very low. The food would be amazing. I could improve my Spanish.
BURGIS: It is moving to Genoa with my family, making my US income, living in Italy. I love Italy. I love the food. I love the people. I love the culture. I feel lighter while I’m there. I laugh more. We eat dinner later. I love everything about it. It would probably be living in Italy for the most part, or at least making that my home base, brushing up on my Italian, working less.
COWEN: Why Genoa? It’s a wonderful city. It’s still medieval, right, in a funny way?
BURGIS: It’s medieval. I think it’s the most underrated city in Italy.
COWEN: In Italy, I mean, yes. I agree. Yes.
BURGIS: I think it’s the most underrated city. You agree.
COWEN: I took my wife there. She was stunned. “How come no one goes to Genoa?” She was telling me.
BURGIS: It’s close to Cinque Terre. It’s this city that’s elevated. It has a fascinating history. It was still a very functional port city. It was really the most important city in Italy, arguably the world, during when Spain was a great power. It’s very cosmopolitan. It reminds me of Marseille a little bit. It’s vertical, breathtaking views. The people there, they’re not very touristy. The Italians there seem indifferent to you as a tourist.
It just feels very, very homey. It’s so close to a lot of other great things in Italy. You can get to Torino relatively easily. That whole area up there, Bra, where the Slow Food movement originated, you’re just in striking distance from everything. Nobody I know that goes to Italy goes to Genoa. I plead with them. I’m like, “Please, just go to Genoa.”
COWEN: I am the exception. My wife sometimes talks of wanting to live in the smaller towns nearby, which we’re not going to do because we’re slated for a third-tier city in Mexico, but we’re not going to do that either. I sometimes think of Northern Italy as a place where there were fewer different dimensions for mimetic desire. That is, more people dress the same. There are fewer status dimensions, maybe less room for eccentrics compared to America. Do you think that’s true, or do you think I’m off base? Paris is a bit like this also. There’s a certain notion of what kind of shoes an Italian man should wear. They wear them, and they’re amazing, and actually more affordable than here. There’s a sameness to some things.
Recommended, and do note Luke’s new book The One and the Ninety-Nine: Forging Identity in an Age of Social Contagion.
Morocco facts of the day, Morocco is not hopeless
For decades, South Africa was the great success story of African industrialization. Last year, Morocco took the lead, emerging as the African Development Bank’s top-ranked industrial economy in Africa. In the Bank’s analysis, published in the latest edition of its industrialization index, Morocco’s growth has been “driven by sustained industrial upgrading, export diversification, and strong industrial policy.” Since the mid-2000s, it has leveraged its location and dominant phosphate reserves to get free trade agreements with the US, the EU, and fifty other countries: the Kingdom would like Morocco to be to France what Eastern Europe is to Germany, or what Mexico is to the US: an export-base “workbench.”
Having positioned itself to profit from the shift to clean energy supply, Morocco is nimbly pivoting its auto manufacturing sector to build EVs, working with incumbents like Renault and Stellantis, and is host to Africa’s first battery gigafactory. That single 70 gigawatt-hour battery factory in Casablanca is expected to supply a third of Europe’s current market. Last year, the government approved construction for a new green hydrogen industrial park, aiming to produce ammonia, steel, and industrial fuel worth a total of $32.5 billion. It has also been strategic in focusing its industrial strategy on aerospace manufacturing, with Airbus becoming a strategic partner, along with investments from Boeing, Thales, and Safran. Its aerospace exports more than tripled in the decade to 2024, to reach almost $3 billion.
Here is the full piece by Kate Mackenzie and Tim Sahay.
Somalia facts of the day
The fruits of better security are plain to see. “Business is booming,” says Gamal Hassan, the commerce minister. New buildings are going up at a frenetic pace. The district around the airport, in particular, has grown much denser (see satellite images). Dahab Tower, a 26-floor confection of luxury flats, a mall, a gym and a mosque, is due to open this year. It sits close to the spot where, in 1993, the bodies of two American soldiers were dragged through the streets after militiamen shot down a Black Hawk helicopter. Nearby is Beydan Coffee, a thriving pan-African chain founded by a Somali who returned from Sweden in the 2010s.
What explains the lull in attacks is less obvious. The government boasts that, in the words of a former intelligence officer, it has “completely closed the doors” on al-Shabab. Mr Mahmood of the ICG credits “prosaic” measures such as the spread of CCTV
cameras, and an electronic database that police equipped with iPads use to identify civilian cars at checkpoints. Plainclothes intelligence officers have been deployed in large numbers.
Here is much more from The Economist. I will repeat my recent point that many dangerous places in the world are about to become much, much safer.
Another rationale for sticky prices?
…what can be predicted, Dabis said, is that a recent policy change by the Washington Metropolitan Area Transit Authority requiring drivers to verbally quote the $2.25 fare to passengers may make their job even riskier.
Eight current Metro employees and two former employees who work at the union representing Metro workers told The Washington Post that they are concerned that announcing the fare is ineffective and may increase the risk that bus operators will be harassed or assaulted. As a result, several drivers said they are disregarding the policy to keep themselves safe.
“It’s very disheartening to think that a company would put their operators in harm’s way by allowing this type of change,” said Dabis, who is among those refusing to quote the fare. “I just want to go home the same way that I came to work: healthy, unharmed. I love this company. I love the customers. But quoting the fare is just too much.”
Fare evasion has plagued Metro for years. In 2024, Metro said about 70 percent of bus riders didn’t pay.
Here is the full story. And for the pointer I thank Rich.
A Conservative Case for Liberal Immigration
That is the title of my latest Free Press piece, here is one excerpt:
Or look at the AI revolution, another area where America is leading the world and also using its AI models to exert soft power. Dario Amodei of Anthropic has an Italian father, neural-network pioneer Geoffrey Hinton is originally from the U.K., and Elon Musk and Peter Thiel, who helped initially fund and found OpenAI, are from South Africa and Germany, respectively. OpenAI co-founder Wojciech Zaremba is from Poland. Musk and Thiel, of course, have other achievements to their credit as well. A significant portion of the employees at the major labs are Chinese. In one survey of published AI researchers, 38 percent received their undergraduate education in China, and 72 percent of those are working in the U.S.
Recommended, do read the whole thing.
My very interesting Conversation with Daron Acemoglu
Here is the audio, video, and transcript. Here is the episode summary:
Daron Acemoglu returns for his second appearance with a new book, What Happened to Liberal Democracy?, which Tyler reads as an attempt to redefine and revitalize liberalism for our times. Where Daron’s first visit was about how states and societies contend for the narrow corridor in which liberty survives, this one asks what liberals themselves got wrong, and the answer implicates the educated elite—that is to say, you.
Tyler and Daron discuss what’s wrong with social contract theories and Rousseau’s general will, whether Acemoglu is more objectivist than Rorty, why he blames left liberalism’s own establishment power for its collapse, what standard is left once you refuse to have a book of higher values, nondomination versus noninterference, who counts as working class, why automation alone will not lead to widespread prosperity, how he can call himself a free speech absolutist while wanting to regulate social media, why he worries we’ve given up on educating Americans, whether teachers’ unions need to be reconstituted, what the life expectancy for an educated twenty year old is today, whether open-source models undercut the centralization worry, what pro-worker AI actually means, why the fertility crisis leaves him strangely close to a real business cycle position, whether AI will raise his own already prodigious paper output, why Armenia has disappointed economically, what he wants to learn next, and more.
For an excerpt, let us start from near the beginning:
COWEN: Richard Rorty had a consensus-based defense of liberal democracy. Is your view the same as his, or are there some metrics along which it’s different? Are you more objectivist in some way?
ACEMOGLU: I wouldn’t say it’s more objectivist. I think my commitment in my mind has always been that it’s impossible for us at any point in time not just to know what’s really the absolute truth, but also to have a clear map of what is the right stance. In the same way that I think many people would agree science makes gradual and sometimes uncertain progress toward some better understanding, I think morally, philosophically, we also have to have gradual uncertain evolution toward what we agree on. Objectivism, in some sense, is too strict.
COWEN: Say we’re not evolving toward greater agreement.
ACEMOGLU: No, sometimes we go back.
COWEN: Today, it seems we’re not evolving toward greater agreement, right?
ACEMOGLU: We’re not. Absolutely not. I think you can blame that on reactions to globalization, reactions to technology, better authoritarian challenges. This is the most uncomfortable part because I see myself firmly within the left liberal tradition. I think it’s partly because of the failure of left liberalism. In some sense, if you think of why did Rome fail or collapse, we can tell a story about the barbarians were really too strong. No, really, Rome collapsed because internally it had problems that opened up weaknesses against outside invaders as well as some inside problems.
It’s the same with left liberalism. I think it became quite influential throughout much of the Western world and some of the emerging economies as well over the last 70, 80 years. It did not use that establishment power just in the right way, creating its own weaknesses that made it much more vulnerable to outside attacks. That’s why I think we are now going back because we are at an interregnum period in which ideas are battling again. In some sense, it’s just like the early 19th century where you had all these very different ideas and they were trying to get a toehold in the imagination of people. I think we are going through a period like that, except that there are really many more confusing ideas out there.
COWEN: Say when we’re not evolving toward greater consensus, what’s the external standard you introduce to judge which are the correct ideas and which not? Like Rorty, you need one, though.
ACEMOGLU: I don’t have one.
COWEN: Then why believe in what you believe?
ACEMOGLU: Okay. I think what I believe is, first of all, not as an external standard—I don’t know whether external standard or internal standard is the right word—but that we have to defend some degree of individual freedom because everything starts from that, both in terms of our meaningful lives, but also any kind of improvement in the human condition requires individual initiative, and that individual initiative is impossible without some amount of freedom, a meaningful freedom, not just saying, “Okay, you have the freedom to pray, but you cannot express that idea with others or you cannot turn it into action.” Some meaningful freedom.
That is the only starting point that we need to have. Around that, we need to build things with some sort of consensus within society. That’s what I think liberalism has to recognize, that you have to enshrine those rights, but then give enough elbow room to people to form their own community-level agreements.
COWEN: You present some different values in the book. One is nondomination. Another is noninterference. There’s others. When they clash, what’s the metric you introduce to decide how to resolve that clash?
ACEMOGLU: I wish I had a perfect answer for that. I don’t.
COWEN: You have an imperfect answer.
ACEMOGLU: I have an imperfect answer. I think noninterference by itself isn’t enough because, at least as read or as interpreted by some philosophers and economists, it is just about being left alone from higher authority or typically state-level authority, although it could be some other authorities as well. We do also need opportunities and some way of actualizing our intentions and our freedom. That’s what the idea of nondomination, which goes back to Roman Republican times, recognizes.
It is not, in my mind, an extremely interventionist philosophy. It doesn’t say the state knows it best or that the state should always have an opportunity to override individual or group-level decisions. It does emphasize that providing people some amount of protection against those who have much greater physical or other power relative to them is something that cannot be done at the individual level. It has to have a community-level component.
COWEN: That’s a good answer, but is it an answer to the question? If we’re Sidgwick, we might say, when values clash, we look to utility, or maybe it’d be cost-benefit analysis to decide which gets priority. You’re not willing to say that, so why not? What’s wrong with that answer?
Very much interesting throughout.
Is there a Balkan fertility paradox? (from my email)
The Balkans may be the only region other than central Asia where fertility has increased from 2015 to 2026.*
All of the highest fertility rates in Europe are in the Balkans. As of 2024: Montenegro (1.8), Bulgaria (1.73) Moldova (1.73), and Serbia (1.64) are top four. France was next at 1.61.
Other balkan countries were generally about 1.5 (Slovenia, Croatia, Kosovo, Bosnia, and Slovakia), comparable to the highest non-gallic TFRs in Western Europe: Britain (1.55) and Ireland (1.47).
The lowest Balkan countries (Macedonia, Romania, Albania, and Hungary) sit at ~1.35-1.4, which would be lowish for Western Europe, but extremely high for Southern Europe or the former Warsaw pact/USSR.
During the post-soviet nadir, the Balkans had perhaps the lowest fertility in Europe. The rates rose circa 2010, and have recently continued to slowly rise.
Ostensibly similar cultures/economies have no parallel increase (Ukraine, Belarus, Poland, and the Baltics).
I don’t have any theory that would explain this pattern. Balkan men are famously unhelpful husbands and fathers, and the Balkans aren’t any more religious than Poland, Italy and Belarus.
What could possibly be the deal?
That is from Thomas Hanes.
The Binmen of Birmingham
I was on the British CapX Podcast talking about the Equality Act, riffing off my two posts Equality Act 2010 and The Apples and Oranges Tribunal. One thing I discussed in the podcast which I haven’t blogged on is the amazing Birmingham dustbin dispute.
In 2010 an employment tribunal ruled that Birmingham City Council had discriminated against thousands of female workers — cooks, cleaners, care assistants, caretakers — who were denied bonuses paid to the mostly male binmen, gardeners, and gravediggers. Why were the binmen given bonuses? Well, refuse collection is filthy, heavy, outdoor work and not many people want to be gravediggers. Thus, these jobs command a premium for exactly the reason Adam Smith gave in 1776 — compensating differentials. Or was it sexism? Well, note first that there is nothing stopping women from becoming “binpersons” and indeed there are female binpersons and they earn the same bonuses as their male counterparts (just as with the Next case). Moreover, we can test the sexism versus compensating differentials theory. Let’s see what happened.
Here’s the problem, which contributed to Birmingham going bankrupt in 2023. The council employs roughly 400 binmen and something like 6,000 women in comparable graded roles. Every extra pound paid to a binman therefore implied about fifteen pounds owed to the cooks and cleaners. The council simply didn’t have the money to pay everyone binman wages so they cut the binmen’s wages. But the market wage for collecting rubbish is what it is, so when Birmingham finally deleted the premium in January 2025, the binmen went on strike — and they are still on strike, nearly eighteen months later. The rubbish piled up, 17,000 tonnes of it, and the city declared a major incident.
Here’s the most amazing part. The council hired an outside contractor to take over its rubbish collection and it now pays roughly triple its pre-strike outsourcing bill–more than it was paying its own employees. So much for sexism. Apparently the premium wasn’t a favor to men; it was the price of the job. If you want your rubbish picked up and your graves dug, you must pay the market wage. This was pure regulatory arbitrage, of course. Because the new binmen were contractors they legally had a different employer than the Council’s female caregivers and the Act’s comparator rules stop at the employer’s nexus.
The government mandarins, of course, want to close the “loophole” adding yet another bureaucratic requirement to push the equal pay madness up the supply chain. The rubbish piles up.
Will U.S. cities face a knock-on fiscal crisis from the feds?
Federal money flows to cities in three flavors: direct transfers, indirect transfers, and what we call fiscal dark matter. Direct transfers are exactly what they sound like — money sent directly from the federal government to various localities. These include funds disbursed through programs like the Community Development Block Grant (CDBG), which supports things like public infrastructure and neighborhood services.3 In 2022, direct transfers like the CDBG totaled $146.3 billion.4 That’s significant, but actually the smallest of the three categories.
Less visible are the indirect transfers. These monies are initially awarded to state governments, which then allocate funds to municipal-level programs and services in accordance with state prerogatives. The cleanest example is probably K-12 education, which receives federal Title I dollars to pay for teachers and programs, but federal highway dollars work essentially the same way. All told, in 2022, the federal government handed down $1.1 trillion to state governments. That amounted to 36% of overall state revenue for that year and, depending on the individual state, ranged from roughly 22% to 50% of state revenue. How much of that ultimately flowed down to cities is hard to say, which is itself a problem: it’s difficult to even establish how exposed local governments are to a pullback in federal support of state budgets.
The third category – our fiscal dark matter – is all the federal money spent into local communities that never shows up in a local budget. This includes housing subsidies like the Low-Income Housing Tax Credit (LIHTC) and Section 8. It also includes food support programs like SNAP and even some direct funding for local food banks.
Rightfully or not, when the flow of federal money in this category starts to dry up, the resulting problems will fall squarely on the mayor’s desk. After all, the median voter is never going to see increasing numbers of homeless encampments and think to blame the head of HUD.
Here is the full piece by Jeff Fong.
Taiwan fact of the day
Mexico (Taiwan) fact of the day
Mexico has quietly become a cornerstone of the AI boom, providing 40 per cent of US imports this year of the computer servers that are widely used in the data centres powering artificial intelligence.
Taiwanese manufacturers are rapidly expanding factories in Mexico to assemble servers, which are now the country’s top US export, overtaking autos that dominated its trade for decades.
Mexico is the second-largest provider of enterprise servers to the US so far this year, with sales reaching $46.9bn, behind Taiwan, which sold $53.5bn, though Mexico became the largest on a monthly basis in May.
The phenomenon is helping prop up Mexico’s limp economy, pushing the country’s exports to record levels. Servers and related hardware made up almost one-fifth of the $317bn of goods Mexico exported between January and May, more than double the same period a year earlier. Taiwan, in turn, is now Mexico’s third-largest trading partner, up from eighth place in 2022. Taiwanese companies have spent more than $1.6bn since 2020 on Mexican factories that offer geographic proximity and tariff-free access to US tech giants spending hundreds of billions on data centres.
“Mexico is of tremendous importance to the way this new AI-powered economy is working,” said Jesse Rogers, head of Latin America economics at Moody’s Analytics. “It is really a new frontier of collaboration and even dependency on the Mexican economy when it comes to AI servers.”
Here is more from Christine Murray and Alan Smith at the FT.
Reforms to the PhD?
The Trump administration is pairing top universities with corporate giants in an effort to steer traditional PhD programs toward national scientific priorities.
Today, the White House and National Science Foundation are announcing a $47 million pilot program to fund around 250 four-year doctorates in technical fields, starting this fall. Students in the pilot will be placed at an industry partner, where they will spend at least one year doing “practical research” that can go towards their dissertation. NSF’s investment will fund three years of these PhDs, with 31 universities and 20-plus companies funding the rest.
“About the same amount of basic research is done today in academia as in the private sector,” Michael Kratsios, the director of the White House Office of Science and Technology Policy, told Pirate Wires. “Over time, while the ecosystem has changed and different players have emerged where important scientific work is being done, the institutions which train our next generation of scientists have not really been updated.”
…The pilot represents a small fraction of the more than 45,000 science and engineering doctorates awarded annually — but the administration says it’s a “scalable model” that can expand to more universities and companies.
Here is the full story, I will pass along more details as I learn them.