Category: Law
“Why ‘Humane’ Immigration Policy Ends in Cruelty”
That is the title of my latest Free Press column, which is interesting throughout. Here is one bit from it:
Behind any immigration debate is an uncomfortable truth: In rich, successful democracies, every workable immigration policy, over enough time, offends liberal instincts or public opinion—often both. We oscillate between compassion and coercive control, and the more we do of one, the more we seem to need some of the other.
The dilemma: Due to the ever-rising numbers of migration to the United States, the enforcement of immigration restrictions has to become more oppressive and more unpleasant as time passes. The alternative course, which is equally unpleasant, is that immigration increases to levels that voters find unacceptable, and we fall under the rule of anti-immigrant parties—which are illiberal on many other issues as well.
The news gets worse. The more pro-immigration you are and the more you allow some foreigners to enter this country, the more others on the outside will wish to come too. Unless you are going to open the border entirely (not a good idea), you will end up having to impose increasingly harsh measures on illegal arrivals, and tougher and tougher restrictions on potentially legal applicants. The liberals in essence become the illiberals.
So I mourn our ongoing and intensifying moral dilemma. At the margin, there are so many people who want to come here (a sign of American success, of course) that there is no kind and gentle way to limit their numbers to a level the public finds acceptable.
And this:
A third alternative is to slow the intake. Keep it fast enough for America to remain “a nation of migrants,” but slow enough to avoid major backlash or to asymptotically approach open borders.
That sounds pretty good, right? But here is the illiberal catch: Given the growing attractiveness of migration to America, penalties and enforcement have to get tougher each year. There are no ways to send large numbers of people back that are not cruel and coercive. There are also few ways to keep people out that do not involve the extensive presence of coercive police, border arrests, imprisonment, and other unpleasant measures.
We might decide to let in more migrants, but still we will end up being cruel to the would-be migrants at the margin. And as demand to migrate continues to rise, we have to be increasingly coercive over time.
That does not have to mean masked ICE men grabbing people randomly off the streets (which leads to violating the constitutional rights of mistakenly identified citizens), but one way or another it is going to involve threats of violence against actual human bodies. That can mean turning away boats full of desperate people, flying people back home, putting them in interim jails, and in general treating them in ways I find deeply unpleasant and disturbing. It is no accident that the Biden administration could not completely avoid the Trumpian policy of separating illegal migrants from the children that accompany them.
Definitely recommended, one of my more interesting pieces this year.
Side-Walking Problems
Local Law 11 requires owners of New York City’s 16,000-plus buildings over six stories to get a “close-up, hands-on” facade inspection every five years. Repair costs in NYC’s bureaucratic and labor-union driven system are very high, so the owners throw up “temporary” plywood sheds that often sit there for a decade. NYC now has some 400 miles of ugly sheds.
The ~9,000 sheds stretching nearly 400 miles have installation costs around $100–150 per linear foot and ongoing rents of about 5–6% of that per month, implying something like $150 million plus a year in shed rentals citywide.
Well. at last something is being done! The sheds are being made prettier! Six new designs, some with transparent roofs as in the rendering below are now allowed. Looks nice in the picture. Will it look as nice in real life? Will it cost more? Almost certainly!
To be fair, City Hall is cracking down as well as doubling down: new laws cut shed permits from a year to three months and ratchet up fines for letting sheds linger. That’s a good idea. But the prettier sheds are the tell. Instead of reevaluating the law, doing a cost-benefit test or comparing with global standards, NYC wants to be less ugly.
How about using drones and AI to inspect buildings? Singapore requires inspections every 7 years but uses drones to do most of the work with a follow-up with hands-on check. How about investigating ways to cut the cost of repair? The best analysis of NYCs facade program indicates something surprising–the problem isn’t just deteriorating old buildings but also poorly installed glass in new buildings, thus more focus on installation quality is perhaps warranted. Moreover, are safety resources being optimized? Instead of looking up, New Yorkers might do better by looking down. Stray voltage continues to kill pets and shock residents. Manhole “incidents” including explosions happen in the thousands every year! What’s the best way to allocate a dollar to save a life in NYC?
Instead of dealing the with the tough but serious problems, NYC has decided to put on the paint.
Big, Fat, Rich Insurance Companies
In my post, Horseshoe Theory: Trump and the Progressive Left, I said:
Trump’s political coalition isn’t policy-driven. It’s built on anger, grievance, and zero-sum thinking. With minor tweaks, there is no reason why such a coalition could not become even more leftist. Consider the grotesque canonization of Luigi Mangione, the (alleged) murderer of UnitedHealthcare CEO Brian Thompson. We already have a proposed CA ballot initiative named the Luigi Mangione Access to Health Care Act, a Luigi Mangione musical and comparisons of Mangione to Jesus. The anger is very Trumpian.
In that light, consider one of Trump’s recent postings:
THE ONLY HEALTHCARE I WILL SUPPORT OR APPROVE IS SENDING THE MONEY DIRECTLY BACK TO THE PEOPLE, WITH NOTHING GOING TO THE BIG, FAT, RICH INSURANCE COMPANIES, WHO HAVE MADE $TRILLIONS, AND RIPPED OFF AMERICA LONG ENOUGH.
My very fun Conversation with Blake Scholl
Here is the audio, video, and transcript. This was at a live event (the excellent Roots of Progress conference), so it is only about forty minutes, shorter than usual. Here is the episode summary:
Blake Scholl is one of the leading figures working to bring back civilian supersonic flight. As the founder and CEO of Boom Supersonic, he’s building a new generation of supersonic aircraft and pushing for the policies needed to make commercial supersonic travel viable again. But he’s equally as impressive as someone who thinks systematically about improving dysfunction—whether it’s airport design, traffic congestion, or defense procurement—and sees creative solutions to problems everyone else has learned to accept.
Tyler and Blake discuss why airport terminals should be underground, why every road needs a toll, what’s wrong with how we board planes, the contrasting cultures of Amazon and Groupon, why Concorde and Apollo were impressive tech demos but terrible products, what Ayn Rand understood about supersonic transport in 1957, what’s wrong with aerospace manufacturing, his heuristic when confronting evident stupidity, his technique for mastering new domains, how LLMs are revolutionizing regulatory paperwork, and much more.
Excerpt:
COWEN: There’s plenty about Boom online and in your interviews, so I’d like to take some different tacks here. This general notion of having things move more quickly, I’m a big fan of that. Do you have a plan for how we could make moving through an airport happen more quickly? You’re in charge. You’re the dictator. You don’t have to worry about bureaucratic obstacles. You just do it.
SCHOLL: I think about this in the shower like every day. There is a much better airport design that, as best I can tell, has never been built. Here’s the idea: You should put the terminals underground. Airside is above ground. Terminals are below ground. Imagine a design with two runways. There’s an arrival runway, departure runway. Traffic flows from arrival runway to departure runway. You don’t need tugs. You can delete a whole bunch of airport infrastructure.
Imagine you pull into a gate. The jetway is actually an escalator that comes up from underneath the ground. Then you pull forward, so you can delete a whole bunch of claptrap that is just unnecessary. The terminal underground should have skylights so it can still be incredibly beautiful. If you model fundamentally the thing on a crossbar switch, there are a whole bunch of insights for how to make it radically more efficient. Sorry. This is a blog post I want to write one day. Actually, it’s an airport I want to build.
And;
COWEN: I’m at the United desk. I have some kind of question. There’s only two or three people in front of me, but it takes forever. I notice they’re just talking back and forth to the assistant. They’re discussing the weather or the future prospects for progress, total factor productivity. I don’t know. I’m frustrated. How can we make that process faster? What’s going wrong there?
SCHOLL: The thing I most don’t understand is why it requires so many keystrokes to check into a hotel room. What are they writing?
What are they writing?
Cyprus and multiple state sovereignties
I am struck by how many layers of sovereignty there are in Cyprus, sometimes but not always conflicting. There is Greek Cyprus, Turkish Cyprus (the Turkish interpretation), Republic of Cyprus under Turkish occupation (the Greek interpretation), unified Cyprus (recognized by the EU and also many Cypriot citizens, though the Turkish part is exempt from EU laws and obligations, in any case not recognized by Turkey), the EU, and last but not least Britain claims and possesses, as full sovereign, three percent of Cyprus territory, an arrangement contested by no one.
Arguably you could add “Turkey” to that list. The Turkish government does not claim sovereignty over any part of Cyprus, but they put the flag everywhere, they guarantee defense, the currency is the Turkish lira, and they have a de facto veto over major decisions. It is Turkey in everything but name, though there is a passport check when visitors fly in from Istanbul. Keep in mind that the earlier 1974 Turkish invasion deprived what is now Greek Cyprus of its then main cargo port and main airport.
While matters have been peaceful for some while now, I fear these political arrangements limit the ability of Cyprus to exploit scale. The island has only about 1.3 million people, so complications do not help their ability to attract high-productivity investment.
Illegal Immigrants Didn’t Break the Housing Market; Bad Policy Did
In an interview, JD Vance claimed:
[H]ousing is way too expensive….because we flooded the country with 30 million illegal immigrants who were taking houses that ought by right go to American citizens.
I noted on Twitter that this framing reeks of socialist thinking, national socialist to be precise. A demand for the state to designate a privileged class that get special rights to scarce goods. Treating housing as a fixed stock to be allocated to a favored in-group while blaming an out-group for shortages is collectivist politics driven by grievance, not market reasoning. In short, grievance and entitlement, zero-sum thinking and central planning wrapped into one ugly bundle.
That criticism set people off. The first rebuttal was predictable “Ha ha, the economist forgot about supply and demand!”—a miss, because my point wasn’t about the mechanics of house-price growth but about Vance’s rhetoric: the collectivism and the cheap politics of blaming outsiders. The second rebuttal was that “America belongs to Americans” so of course illegal immigrants shouldn’t be allowed to buy homes.
The second objection is amusing because who is harmed most when a government bans immigrants from buying homes or deports a chunk of potential buyers? American home sellers. The way such bans “work” is by preventing sellers from accepting the highest bid. In effect, these policies are a tax on sellers combined with a subsidy to a subset of buyers.
So bans on foreign buyers are really about taxing some Americans and subsidizing others. Moreover, although the economic logic of illegals pushing up demand is sound, the numbers don’t add up to much. First, there aren’t 30 million illegals; the best estimates are roughly 14 million. And second illegals are obviously not the reason homes blow past a million dollars in places like San Francisco, San Jose, Washington, or New York! The effect of illegal immigrant on house prices exists but is small—the bigger factors are native population growth, rising incomes, zoning rules, and strict limits on new construction. Block illegal immigrants from buying homes and you will get a pause in price growth, but once demand from natives keeps rising against a capped supply, prices will climb back to where they were.
That gets to the deeper problem with Vance’s style of thinking. If “fixing” housing scarcity means blaming whichever group is politically convenient, you end up cycling through targets: illegal immigrants first, then legal immigrants (as Canada has done), then the children of immigrants, then wealthy buyers, then racial or religious minorities. Indeed, one wonders if the blame is the goal.
If you actually want to solve the problem of housing scarcity, stop the scapegoating and start supporting the disliked people who are actually working to reduce scarcity: the developers. Loosen zoning and cut the rules that choke what can be built. Redirect political energy away from trying to demolish imagined enemies and instead build, baby, build.
Wise Words Addendum (hat tip G. Scott Shand):
There is a cultural movement in the white working class to blame problems on society or the government, and that movement gains adherents by the day….We’ll get fired for tardiness, or for stealing merchandise and selling it on eBay, or for having a customer complain about the smell of alcohol on our breath, or for taking five thirty-minute restroom breaks per shift. We talk about the value of hard work but tell ourselves that the reason we’re not working is some perceived unfairness: Obama shut down the coal mines, or all the jobs went to the Chinese. These are the lies we tell ourselves to solve the cognitive dissonance—the broken connection between the world we see and the values we preach.
*The Science of Second Chances*
The author is economist Jennifer Doleac, and the subtitle is A Revolution in Criminal Justice. Excerpt:
We found that adding anyone charged with a felony to the law enforcement DNA database in Denmark reduced future criminal convictions by over 40 percent. Again, people responded to the higher probability of getting caught by committing fewer crimes. Being added to the database also increased enrollment in school and rates of employment — signs that folks really were on a better path. This effect was largest for the youngest men, those ages eighteen to twenty-four.
Incentives matter. An excellent book, recommended, due out next year.
Prediction markets in everything? Tariff refund edition
Oppenheimer changed its terms from offers earlier this year. The firm said it would consider bids starting at 20 percent per refund claim pertaining to “reciprocal” or IEEPA tariffs and 10 percent for tariffs tied to fentanyl.
Gabriel Rodriguez, the president and co-founder of A Customs Brokerage, in Doral, Fla., and a recipient of several emails from Oppenheimer, said he believed Oppenheimer was offering to pay the equivalent of 80 cents on the dollar per claim.
Here is more from the NYT, via Amy.
Solve for the NIMBY equilibrium?
We are just beginning to think these issues through:
The government’s plan to use artificial intelligence to accelerate planning for new homes may be about to hit an unexpected roadblock: AI-powered nimbyism.
A new service called Objector is offering “policy-backed objections in minutes” to people who are upset about planning applications near their homes.
It uses generative AI to scan planning applications and check for grounds for objection, ranking these as “high”, “medium” or “low” impact. It then automatically creates objection letters, AI-written speeches to deliver to the planning committees, and even AI-generated videos to “influence councillors”.
Kent residents Hannah and Paul George designed the system after estimating they spent hundreds of hours attempting to navigate the planning process when they opposed plans to convert a building near their home into a mosque.
Here is the full story. Via Aaron K.
Mexico estimates of the day
Ms Sheinbaum’s government says Mexico’s murder rate has come down by 32% in the year since she took office. Analysis by The Economist confirms that the rate has fallen, though by a significantly smaller margin, 14%. Counting homicides alone misses an important part of the picture, namely the thousands of people who disappear in Mexico every year, many of whom are killed and buried in unmarked graves. A broader view of deadly crime that includes manslaughter, femicide and two-thirds of disappearances (the data for disappearances is imperfect), shows a more modest decline of 6% (see chart). Still, Mexico is on track for about 24,300 murders this year, horribly high, but well below the recent annual average of slightly over 30,000. Ms Sheinbaum is the first Mexican leader in years to push violent crime in the right direction.
Here is more from The Economist.
European Stagnation
Excellent piece by Luis Garicano, Bengt Holmström & Nicolas Petit.
The continent faces two options. By the middle of this century, it could follow the path of Argentina: its enormous prosperity a distant memory; its welfare states bankrupt and its pensions unpayable; its politics stuck between extremes that mortgage the future to save themselves in the present; and its brightest gone for opportunities elsewhere. In fact, it would have an even worse hand than Argentina, as it has enemies keen to carve it up by force and a population that would be older than Argentina’s is today.
Or it could return to the dynamics of the trente glorieuses. Rather than aspire to be a museum-cum-retirement home, happy to leave the technological frontier to other countries, Europe could be the engine of a new industrial revolution. Europe was at the cutting edge of innovation in the lifetime of most Europeans alive today. It could again be a continent of builders, traders and inventors who seek opportunity in the world’s second largest market.
The European Union does not need a new treaty or powers. It just needs a single-minded focus on one goal: economic prosperity.
I’ve quoted the call to arms but there is much more substantive and deep analysis. Naturally, I approve of this theme “If a product is safe enough to be sold in Lisbon, it should be safe enough for Berlin.” Not the usual fare, read the whole thing.
Old school workplace feminization
We investigate whether consequential decisions made by judges are impacted by the gender composition of these judges’ peer group. Using the universe of decisions on juvenile defendants in each courthouse in a Southern state over 15 years, we estimate two-way fixed effects models leveraging random assignment of cases to judges and variations in judge peer composition generated by judicial turnover. The results show that an increase in the proportion of female peers in the courthouse causes a rise in individual judges’ propensity to incarcerate, and an increase in prison time. This effect is driven by the behavior of female judges. We examine the sensitivity of our findings to heterogeneous-robust difference-in-differences estimators for continuous and nonabsorbing treatments.
Here is the full article by Ozkan Eren and Naci Mocan, tekl.
*Marked by Time*
The author is Robert J, Sampson, and the subtitle is How Social Change has Transformed Crime and the Life Trajectories of Young Americans, from Harvard University Press. Excerpt:
…[for part of Chicago]..the chance of being arrested in life among people born in the mid-1980s is more than double that of those born just a decade later, in the mid-1990s. This large arrest inequality does not arise from early-life individual, family, or local neighborhood characteristics. It arises from the larger and highly divergent socio-historical contexts in which the children grew through adolescence into adulthood.
The particular story focuses on guns, death, and lead exposure, though I wonder whether the in-sample implied elasticities are validated out of sample. Nonetheless an interesting book.
Here Comes the Sun—If We Let It: Cutting Tariffs and Red Tape for Rooftop Solar
Australia has so much rooftop solar power that some states are offering free electricity during peak hours:
TechCrunch: For years, Australians have been been installing solar panels at a rapid clip. Now that investment is paying off.
The Australian government announced this week that electricity customers in three states will get free electricity for up to three hours per day starting in July 2026.
Solar power has boomed in Australia in recent years. Rooftop solar installations cost about $840 (U.S.) per kilowatt of capacity before rebates, about a third of what U.S. households pay. As a result, more than one in three Australian homes have solar panels on their roof.
Why is rooftop solar adoption in the U.S. lagging behind Australia, Europe, and much of Asia? Australia has roughly as many rooftop installations as the entire United States, despite having less than a tenth of its population.
First, tariffs. U.S. tariffs on imported solar panels mean American buyers pay double to triple the global market rate.
Second, permits. The U.S. permitting process is slow, fragmented, and expensive. In Australia, no permit is required for a standard installation—you simply notify the distributor and have an accredited installer certify safety. In Australia, a rooftop solar panel is treated like an appliance; in the U.S., it’s treated like a mini power plant. Germany takes a similar approach to Australia, with national standards and an “as-of-right” presumption for rooftop solar that removes red tape.
By contrast, the U.S. system involves multiple layers of approval—building and electrical permits, several inspections, and a Permission-to-Operate from the local utility, which may not be eager to speed things up just to lose your business. Moreover, each of thousands of jurisdictions has different requirements, creating long delays and high costs.
High costs suppress adoption, limiting economies of scale and forcing installers to spend more on sales than installation. Yet Australia and Germany are not so different from the United States—they simply made solar easy. If the U.S. eliminated tariffs, standardized/nationalized rules, and accelerated approvals, rooftop solar would take off, costs would fall, and innovation would follow.
The benefits extend beyond cheaper power. Distributed rooftop generation makes the grid more resilient. Streamlining solar policy would thus cut energy costs, strengthen protection against disasters and disruptions, and speed the transition to a future with more abundant and cleaner power.
My excellent Conversation with Sam Altman
Recorded live in Berkeley, at the Roots of Progress conference (an amazing event), here is the material with transcript, here is the episode summary:
Sam Altman makes his second appearance on the show to discuss how he’s managing OpenAI’s explosive growth, what he’s learned about hiring hardware people, what makes roon special, how far they are from an AI-driven replacement to Slack, what GPT-6 might enable for scientific research, when we’ll see entire divisions of companies run mostly by AI, what he looks for in hires to gauge their AI-resistance, how OpenAI is thinking about commerce, whether GPT-6 will write great poetry, why energy is the binding constraint to chip-building and where it’ll come from, his updated plan for how he’d revitalize St. Louis, why he’s not worried about teaching normies to use AI, what will happen to the price of healthcare and hosing, his evolving views on freedom of expression, why accidental AI persuasion worries him more than intentional takeover, the question he posed to the Dalai Lama about superintelligence, and more.
Excerpt:
COWEN: What is it about GPT-6 that makes that special to you?
ALTMAN: If GPT-3 was the first moment where you saw a glimmer of something that felt like the spiritual Turing test getting passed, GPT-5 is the first moment where you see a glimmer of AI doing new science. It’s very tiny things, but here and there someone’s posting like, “Oh, it figured this thing out,” or “Oh, it came up with this new idea,” or “Oh, it was a useful collaborator on this paper.” There is a chance that GPT-6 will be a GPT-3 to 4-like leap that happened for Turing test-like stuff for science, where 5 has these tiny glimmers and 6 can really do it.
COWEN: Let’s say I run a science lab, and I know GPT-6 is coming. What should I be doing now to prepare for that?
ALTMAN: It’s always a very hard question. Even if you know this thing is coming, if you adapt your —
COWEN: Let’s say I even had it now, right? What exactly would I do the next morning?
ALTMAN: I guess the first thing you would do is just type in the current research questions you’re struggling with, and maybe it’ll say, “Here’s an idea,” or “Run this experiment,” or “Go do this other thing.”
COWEN: If I’m thinking about restructuring an entire organization to have GPT-6 or 7 or whatever at the center of it, what is it I should be doing organizationally, rather than just having all my top people use it as add-ons to their current stock of knowledge?
ALTMAN: I’ve thought about this more for the context of companies than scientists, just because I understand that better. I think it’s a very important question. Right now, I have met some orgs that are really saying, “Okay, we’re going to adopt AI and let AI do this.” I’m very interested in this, because shame on me if OpenAI is not the first big company run by an AI CEO, right?
COWEN: Just parts of it. Not the whole thing.
ALTMAN: No, the whole thing.
COWEN: That’s very ambitious. Just the finance department, whatever.
ALTMAN: Well, but eventually it should get to the whole thing, right? So we can use this and then try to work backwards from that. I find this a very interesting thought experiment of what would have to happen for an AI CEO to be able to do a much better job of running OpenAI than me, which clearly will happen someday. How can we accelerate that? What’s in the way of that? I have found that to be a super useful thought experiment for how we design our org over time and what the other pieces and roadblocks will be. I assume someone running a science lab should try to think the same way, and they’ll come to different conclusions.
COWEN: How far off do you think it is that just, say, one division of OpenAI is 85 percent run by AIs?
ALTMAN: Any single division?
COWEN: Not a tiny, insignificant division, mostly run by the AIs.
ALTMAN: Some small single-digit number of years, not very far. When do you think I can be like, “Okay, Mr. AI CEO, you take over”?
Of course we discuss roon as well, not to mention life on the moons of Saturn…