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Patrick is co-founder and CEO of Stripe, based in San Francisco.  I recently told a reporter he was one of the five smartest people I have known; he is so smart, in fact, that he asked to interview me rather than vice versa, and so he and I created a new episode of Conversations with Tyler (transcript and podcast at that link, alas no video, and note that was recorded in January so on a few points the timeline may feel off).

We discuss whether macro is underrated, what makes Silicon Valley special, optimal immigration policy, whether Facebook is beneficial for society, whether I might ever vote for Donald Trump, how to start a new religion, Peter Thiel, Brian Eno, where I differ from Thomas Schelling, Michel Houllebecq, how to maintain your composure in an age of Trump, the origins of this blog, how I read so much, why Twitter is underrated, and the benefits of having a diverse monoculture, among many other topics.

Here is one bit:

COLLISON: …You’ve written a lot about how the study of economics has influenced your appreciation for the arts, and for literature, and for food, and all of the rest. You haven’t written as much about the influence in the reverse direction. How has your appreciation for and study of the arts influenced your study of economics? And is this a version of that?

COWEN: This is a version of that. Here would be a simple example: If you think about Renaissance Florence, at its peak, its population, arguably, was between 60,000 and 80,000 people. And there were surrounding areas; you could debate the number. But they had some really quite remarkable achievements that have stood the test of time and lasted, and today have very high market value. Now, in very naive theories of economics, that shouldn’t be possible. People in Renaissance Florence, they didn’t produce a refrigerator that we’re still using or a tech company that we still consult.

But there’s something different about, say, the visual arts, where that was possible, and it was done with small numbers. So there’s something about the inputs to some kinds of production we don’t understand. I would suggest if we’re trying to figure out, like what makes Silicon Valley work, actually, by studying how they did what they did in the Florentine Renaissance is highly important. You learn what are the missing inputs that make for other kinds of miracles.

Ireland and writing would be another example.

…COWEN: And I worry now that people in Ireland hear too much American English, too much English English, and that style of writing, talking, joking, limericks, is becoming somewhat less distinct. Still many wonderful writers from Ireland, but again, it’s like an optimal stock depletion problem, and maybe we’ve pressed on the button a little too hard.

COLLISON: The transaction costs should be higher?

And here is another:

COLLISON: Do we just need a sufficiently obfuscated version of the UBI and then we’re fine?

COWEN: We call it “disability insurance.”

And:

COWEN: Well, I voted on each of these hires. I voted for them. For a lot of them, I was on the hiring committee. Robin Hanson’s a good example. When we hired Robin, he was much older than a typical assistant professor would be. And of course, we don’t practice age discrimination, and neither does anyone else, but . . .

[laughter]

COWEN: Robin was going to have a tough time being hired. And I gave Robin some of my papers to read. He came in. He was a little, actually, obnoxious to me. Though he’s one of the nicest people you’d ever want to meet. He sent me back comments on my papers, that they were all wrong.

[laughter]

COWEN: There was no preliminary politeness: ‘I thought this was interesting, but…’ I thought this was great. So I thought, “We need to hire Robin. Robin is different.” And Robin wrote papers I thought were crazy, but he clearly also was a genius. I pushed very hard to hire Robin, and he made a good impression on a lot of other people. He’s been with us ever since.

COLLISON: Were the papers in fact all wrong?

COWEN: Robin’s criticisms were all good points.

[laughter]

COWEN: But they weren’t entirely wrong.

Self-recommending!

Request for requests

by on January 8, 2017 at 7:40 pm in Weblogs | Permalink

Are there any particular topics or questions you would like me to blog about?  I make no promises!

The very beginning is a little slow, but I thought Ezra was one of the very best guests.  The topics include the nature and future of media, including virtual reality, the nature of leadership (including Ezra’s own), how running a project shapes your political views, a wee bit on health care, what he thinks are the Obama and Clinton models of the world, Robert Putnam’s research on the costs of diversity, the proper role of shame in society, animal welfare, and of course Ezra’s underrated and overrated, with takes on Bob Dylan, The Matrix, William F. Buckley, Joe Biden, and more.  There is no video but here is the podcast and transcript.  Here is one excerpt:

COWEN: …Now Putman, let me ask you about Putnam, and how Putnam relates to Donald Trump. As you know, Robert Putnam at Harvard, he has some work showing that when ethnic diversity goes up that there’s less trust, less cooperation, less social capital.

If you think of yourself in the role of an editor, so you have an American society, diversity has gone up, and a lot of people have reacted to this I would say rather badly — and I think you would agree with me they’ve reacted rather badly — but there’s still a way in which the issue could be framed that while diversity is actually a problem, we can’t handle diversity.

Putnam almost says as such, and do you think there’s currently a language in the media where you have readers who are themselves diverse, where it’s possible not to just be blaming the bigots, but to actually present the positive view, “Look, people are imperfect. A society can only handle so much diversity, and we need to learn this.” What’s your take on that?

KLEIN: I strongly agree. We do not have a language for demographic anxiety that is not a language that is about racism. And we need one. I really believe this, and I believe it’s been a problem, particularly this year. It is clear, the evidence is clear. Donald Trump is not about “economic anxiety.”

COWEN: A bit, but not mainly, I agree.

KLEIN: That said, I think that the way it’s presented is a choice between economic anxiety and racism. And one I don’t think that’s quite right, and two I don’t think that’s a productive way of having that conversation.

COWEN: Why don’t we have that language? Where did it go, or did we ever have it?

And:

COWEN: You see this with Medicaid. A lot of people don’t sign up. They don’t have addresses. You can’t even get them, whatever.

KLEIN: They don’t like doctors. They’re afraid of doctors.

COWEN: This is me.

KLEIN: You’re afraid of doctors?

COWEN: “Afraid” isn’t the word.

KLEIN: Averse. [laughs]

COWEN: Maybe dislike. Averse. [laughs] They should be afraid of me, perhaps.

Definitely recommended.  The same dialogue, with a different introduction, is included in The Ezra Klein Show podcast.

Haven’t you noticed this?

I have a simple hypothesis.  No matter what the media tells you their job is, the feature of media that actually draws viewer interest is how media stories either raise or lower particular individuals in status.  (It’s a bit like “politics isn’t about policy.”)  That’s even true for this blog, though of course that is never my direct intention.

But now you can see why people get so teed off at the media.  The status ranking of individuals implied by a particular media source is never the same as yours, and often not even close.  You hold more of a grudge from the status slights than you get a positive and memorable charge from the status agreements.

In essence, (some) media is insulting your own personal status rankings all the time.  You might even say the media is insulting you.  Indeed that is why other people enjoy those media sources, because they take pleasure in your status, and the status of your allies, being lowered.  It’s like they get to throw a media pie in your face.

In return you resent the media.

A good rule of thumb is that if you resent the media “lots,” you are probably making a number of other emotional mistakes in your political thought.

SolidOpinion leaves the bulk of the comments section to operate as it always has, but it adds three slots at the top for “promoted comments,” which can be auctioned off to the highest bidder. Publishers have the option of using SolidOpinion’s software to moderate all their comments. The startup’s service is free to use, but it takes a cut of all cash transactions.

…Last year, Tablet magazine, a New York-based Jewish publication, started charging people to post any comment on its website. Readers can pay $2 a day, $18 a month, or $180 a year. Alana Newhouse, the magazine’s editor-in-chief, said she was sick of anonymous commenters haranguing her writers but wanted to leave an option for people willing to prove their good intentions by making what amounts to a donation.

The result has been far fewer comments, but Newhouse doesn’t mind.

Here is the Joshua Brustein Bloomberg story, no comments allowed.

The pointer is through Ted Gioia, don’t forget his new and excellent book How to Listen to Jazz.

David writes to me:

Today is the launch of a new podcast series on macroeconomics called Macro Musing and I am privileged to be the host. Each week, with the help of a special guest, we will get to explore in depth various macroeconomic topics. If want to go all wonky on macro this is the podcast for you!

So far I have recorded podcasts with the following guests: Scott Sumner, John Taylor, John Cochrane, Cardiff Garcia, Miles Kimball, Ramesh Ponnuru, and George Selgin. There have been a lot of interesting conversations covering topics such as the origins of the Great Recession, the safe asset shortage problem, negative interest rates, the fiscal theory of the price level, the Eurozone Crisis, Abenomics, the Great Depression, China’s economic problems, and alternative monetary regimes. In addition to these interesting topics, I have enjoyed learning how each guest got into macro, either as an academic or journalist, and how they see the field changing over time as new ideas and new technology emerge. I think you will find it fascinating too.

More guest are scheduled, including some Fed officials, but I would love to hear from you on what guests and topics you would like to see on the show. My first guest is Scott Sumner with whom I discuss his views on the Great Recession, NGDP targeting, and his new book on the Great Depression, The Midas Paradox.

I hope to make this a long-term project, but it success depends in part on you subscribing. So please subcribe via itunes or your favorite podcast app and spread the word. Let’s make this podcast a success together and who knows, maybe we can help make the world a better place.

Here are some key parts:

This email is to let you know that I’m going back to long-form journalism, as I hoped to, at New York Magazine, edited by the incomparable Adam Moss (with whom I’ve worked, on and off, since the late 1980s). I start today and am already working on an essay on Trump. I’ll also be blogging the Democratic and Republican conventions – two discrete, unmissable moments for bloggery in real time. I know, I know. But if I keep the blogging restricted to two bouts of four days each, I’m hoping I won’t relapse.

My other news is that I’ve also committed to two new books. The first, with the working title of “Keeping Faith,” is a spiritual memoir and theological argument about the future and meaning of Christianity in the 21st Century. The second, called “Thinking Out Loud,” is a collection of my essays and reviews and posts over the last thirty years. I’m excited to be published by Simon and Schuster, with Ben Loehnen as my editor. I’ll keep you posted as these projects unfold.

Americans who leave news comments, who read news comments, and who do neither are demographically distinct. News commenters are more male, have lower levels of education, and have lower incomes compared to those who read news comments.

That is from Dr. Natalie (Talia), Jomini Stroud, Cynthia Peacock, and Emily Van Duyn, via the excellent Laura Miller.

Comments are open on this one, people…

https://promarket.org/

Here is a Luigi Zingales post, “Why this blog?”:

By gathering information on the nature and cost of this subversion of competition, by distributing this information among the public at large, and by making this information salient, media outlets can reduce the power of vested interests. By exposing the distortions created by special interests, they can create the political demand for a competitive capitalism.

This is the goal of our Pro-Market blog: to educate the public about the many ways competition can be subverted. In this exercise our only goal is to make the market system work better. In the finest University of Chicago tradition, we will do it with data. We will try to do it with the rigor of the best academic work, but without the pedantry that often accompanies it. This blog will collect opinions, summarize work, and report on relevant research by Chicago faculty and Stigler fellows. We will use every medium at our disposal, because the message is our medium.

Self-recommending…

The New Yorker has done a profile of Michael A. Orthofer, here is one excerpt:

I first contacted him in 2004, asking him if I could write for the the Complete Review; I was an undergraduate at Stanford at the time, and thought that the site was an institution, like The New York Review of Books. I was politely rebuffed. Years later, I e-mailed to ask if I could send him a galley of my first novel. He already had it, he replied—he had picked up an advance review copy for sale at the Strand, for $1.49. He went on to review the book, giving it a B, and later e-mailed to soften the blow. “Bs always have something going for them,” he explained, while a C grade indicates “steer-clear territory.” All books on the site get a rating from A+ to F, part of the site’s endearing, Robert-Christgau-like fustiness.

Michael runs Literary Saloon, one of the very best and most important blogs, focusing on foreign literature in translation.

Oddly, he spent the first six years of his life not reading, and thus he is somewhat behind.  Yet he is working at it:

“I can’t imagine not doing it,” Orthofer told me. “A day in which I don’t read or write, I have trouble falling asleep.” His goal is to read a book a day, though he confesses that this is “unrealistic.” He works on weekends, too, and has written four novels that are in the drawer. His main interests, according to the site, are inline roller-skating in Central Park and building snow sculptures, some of which are big enough that he carves staircases inside them to get to the top. When he tires of working, he steps out to a library or bookstore, “to see, be around books.” Last year, and this year, he worked through Christmas.

I will continue to read him until I can no longer.  The profile is interesting and humorous throughout, and it is so far my favorite magazine piece of the year.

For the pointer I thank Michael Rosenwald.

Paul Krugman is in fact tweeting there.  His first “real tweet” is:

Prediction: By the fall, moderate Republican pundits will declare that given the Democrat’s flaws, Trump is the better choice.

No, basically:

We first look at the number of District taxpayers who have paid self-employment taxes. The data show that the total number of people who pay self-employment taxes has increased in the District from 35,000 in 2006 to nearly 49,000 in 2014. This is a very steep increase (36 percent overall and nearly 4.5 percent annualized) even when compared to the relatively rapid increase in the District’s population and tax filers (tax filers grew at about 2 percent per year during the same period).  But data show that the rapid increase in the number of filers who paid self-employment taxes occurred before 2010. In fact, since 2010, the share of tax filers who pay self-employment taxes has been stable at about 14 percent.

That is from a longer post, there is more at the link.  Here is the broader (and excellent) blog on the law and economics of Washington, D.C., DistrictMeasured.com.

It reads:

The AEA is profiling research from all seven of our journals covering the wide range of topics that economists study. Follow us on Twitter for the latest updates.

For the pointer I thank Aaron Sojourner.