Month: August 2024
Thursday assorted links
1. Why has ornament in architecture declined?
2. Patrick McKenzie on the Crowdstrike failure.
3. David Brooks on AI (NYT).
4. I’ve already linked to this podcast with Julia La Roche, recorded before Biden left office. In it I predicted Kamala Harris will be the next POTUS.
5. The physics of the emergence of life and assembly theory (NYT),
6. Information aggregation under (not so) naive learning.
7. A rare, funny econ + Olympics joke.
8. ChatGPT Advanced Voice Mode, seven good examples. I very much like it.
9. All good news on the U.S. productivity front, up 2.7 percent for the year (NYT).
Operation Warp Speed for Cows
The UK Health Security Agency has raised their pandemic threat level for H5N1 bird flu from a 3 to a 4 on a 6 point scale.
My takeaway is that we have completely failed to stem the outbreak in cattle, there has been animal to human transmission which we are surely undercounting, but so far the virus has not mutated in a way to make it very adaptable to humans.
The failure to stem the outbreak in cattle is concerning because it suggests we would not be able to stem a human outbreak. We can easily test, quarantine and cull cattle!
It is absolutely outrageous that dairy farmers are refusing to cooperate on testing:
To date dairy farmers have, in large measure, refused to cooperate with efforts to chart how deeply the virus has infiltrated U.S. herds, seeing the possible stigma of admitting they have H5N1-infected cows as a greater risk than the virus itself.
We should be testing at much higher rates and quarantining and culling. The dairy farmers should be and are being compensated but frankly the farmers should have no say in the matter of testing. Externalities! Preventing a pandemic is much cheaper both in resources and in restrictions on liberty than dealing with one.
And how about an Operation Warp Speed for a vaccine for cows? Vaccinate. Vacca! It’s right there in the name! If only we could come up with a clever acronym for an Operation Warp Speed for COWS.
Developing a vaccine for cows would also speed up a human vaccine if one were needed.
Here are some key points from the UK HSA:
There is ongoing transmission of influenza A(H5N1) in the US, primarily through dairy cattle but with multispecies involvement including poultry, wild birds, other mammals (cats, rodents, wild mammals) and humans (1, 2). There is high uncertainty regarding the trajectory of the outbreak and there is no apparent reduction in transmission in response to the biosecurity measures that have been introduced to date. There is ongoing debate about whether the current outbreak should be described as sustained transmission given that transmission is likely to be facilitated by animal farming activities (3). However, given that this is a permanent context, the majority of the group considered this outbreak as sustained transmission with the associated risks.
…There is evidence of zoonotic transmission (human cases acquired from animals). There is likely to be under-ascertainment of mild zoonotic cases.
..Overall, there is no evidence of change in HA which is suggestive of human adaptation through these acquired mutations. Although genomic surveillance data are likely to lag behind infections, the lack of evidence of viral adaptation to α2,6SA receptors after thousands of dairy cattle infected may suggest that transmission within cows does not strongly predispose to human receptor adaptation. Evidence of which sialic acid receptors are present in cows, which is needed to support this hypothesis, is still preliminary and requires confirmation.
Approval timelines really matter for housing
We provide credible estimates of the effect of duration and uncertainty in local regulatory approval times on the rate of housing production. The analysis derives from a novel dataset of development timelines for all multifamily housing projects permitted in the City of Los Angeles between 2010 and 2022. As a lower bound, simply by pulling forward in time the completion of already started projects, we estimate that reductions of 25% in approval time duration and uncertainty would increase the rate of housing production by 11.9%. If we also account for the role of approval times in incentivizing new development, we estimate that the 25% reduction in approval time would increase the rate of housing production by a full 33.0%. Both the expected value and the uncertainty in approval times are salient to incentivizing new development. The results provide new evidence that local approval processes are a significant driver of housing supply and reinforce the notion that municipal regulatory reform is an important component of housing reform.
That is from a new research paper by Stuart Gabriel and Edward Kung, via the excellent Kevin Lewis. Speed also influences total supply! (rooftops)
When does a Bitcoin reserve make sense?
That is the topic of my latest Bloomberg column, here is one excerpt:
Now enter Bitcoin. Senator Cynthia Lummis of Wyoming has introduced a bill to have the Treasury create a $67 billion (at current value) stockpile of the cryptocurrency, and Republican presidential nominee Donald Trump supports the idea, saying it would be “a permanent national asset to benefit all Americans.” The bill may not be a serious piece of legislation — it is highly unlikely to pass — but it raises a serious question: Under what circumstances can governmental purchases of cryptocurrency be justified?
And:
To see one version of the case for government purchases of Bitcoin, consider Argentina, where past hyperinflation has made both dollars and Bitcoin very popular. Inflation rates are declining under President Javier Milei, but Argentina’s currency future will probably still feature both currencies. Milei even suggested as much recently.
El Salvador is another case in point. The country already is fully dollarized, and President Nayib Bukele has been taking steps to encourage crypto use and investment. So far his intended crypto revolution has not taken off, but the country does offer highly favorable terms for crypto users and investors. If crypto rises in importance, some of that financial activity may take place in El Salvador, if only for regulatory reasons.
In short, there might be a number of governments that use dollars and crypto as a significant part of their natural monetary base, along with the domestic currency (if it still exists). In fact, the more dollarization spreads, the more the demand for crypto and Bitcoin may rise.
Many countries are aware of the advantages to using the dollar, but they may also come to see crypto as a useful tool that weakens the ability of the US government to apply financial sanctions. The end result may be more dollarization — but with crypto as a complementary back-up financial system. Crypto also could give those countries more elastic money supplies, in case they find Fed policy too tight for their economy.
To bring it back to domestic US concerns: If crypto and the dollar are complements internationally, the US government might want to encourage crypto as a way to expand the reach of the dollar. The dollar truly would become further entrenched as the global reserve currency, boosting possible levels of US consumption.
But not yet.