It was far-ranging, here is the opening bit:
Damir Marusic for TAI: Tyler, thanks so much for joining us today. One of the themes we’re trying to grapple with here at the magazine is the perception that liberal democratic capitalism is in some kind of crisis. Is there a crisis?
TC: Crisis, what does that word mean? There’s been a crisis my whole lifetime.
TC: I think addiction is an underrated issue. It’s stressed in Homer’s Odyssey and in Plato, it’s one of the classic problems of public order—yet we’ve been treating it like some little tiny annoyance, when in fact it’s a central problem for the liberal order.
AS: What about co-determination?
TC: There are too many people with the right to say no in America as it is. We need to get things done speedier, with fewer obstacles that create veto points. So no, I don’t favor that.
AS: John Maynard Keynes.
TC: I suppose underrated. He was a polymath. Polymaths tend to be underrated, and Keynes was a phenomenal writer. I’m not a Keynesian on macroeconomics, but when you read him, it’s so fresh and startling and just fantastic. So I’d say underrated.
AS: Slavoj Zizek, the quirky communist philosopher you debated recently.
TC: Way underrated. I had breakfast with Zizek before my dialogue with him, and he’s one of the 10 people I’ve met who knows the most and can command it. Now that said, he speaks in code and he’s kind of “crazy,” and his style irritates many people because he never answers any question directly. You get his Hegelian whatever. He has his partisans who are awful, but ordinary intellectuals don’t notice him and he’s pretty phenomenal actually. So I’d say very underrated.
Here is the full interview, a podcast version is coming too.
This one is better than the other available conversations with Reid, here is the transcript and audio. Here is part of the CWTeam summary:
Reid joined Tyler to talk about all these leverage points and more, including the Silicon Valley cultural meme he most disagrees with, how Wittgenstein influenced the design of LinkedIn, mystical atheism, what it was like being on Firing Line, why he’s never said anything outrageous, how he and Peter Thiel interpret The Tempest differently, the most misunderstood thing about friendship, how to improve talent certification, what’s needed from science fiction, and his three new ideas for board games.
COWEN: If we think of Peter Thiel and Elon Musk, they could arguably, by the standards of many people, be called weird. I’ve reviewed all the books you’ve written and a lot of your public talks. I can’t recall you saying a single thing that’s outrageous in any way whatsoever. Why aren’t you weirder?
HOFFMAN: [laughs] Maybe I mask it better. That’s my Straussian element, that I hide my weirdness. I would say that a little bit of it comes down to a theory about what is the right way of evolving discourse.
I think I probably do have a variety of views that people would think is weird. I, for example, think of myself as a mystical atheist, which is neither the full atheist category nor any religious category, but some blend in the middle. Or the fact that I actually think that the notion of capitalism is one of the world’s leading interesting technologies, but it’s not a particularly good philosophy, and you’d think that’s odd for an entrepreneur or an investor, and so forth.
So I have areas where I would say groups of people would think I’m weird. I may not highlight it because I tend to always speak in a way to, how do I think I help us make the most progress? And I would only say the weird things if I thought that was the thing that would result from that.
COWEN: So there are weird things that are in your mind?
HOFFMAN: Yes, yeah.
COWEN: How did your interest in the late Wittgenstein influence the construction and design of LinkedIn? I’m sure they ask you this all the time in interviews.
HOFFMAN: [laughs] All the time. The question I’ve always been expecting. I would say that the notion of thinking about — a central part of later Wittgenstein is to think that we play language games, that the way that we form identity and community, both of ourselves and as individuals, is the way that we discourse and the way that we see each other and the way that we elaborate language.
That pattern of which ways we communicate with each other, what’s the channel we do, and what’s the environment that we’re in comes from insights from — including later Wittgenstein, who I think was one of the best modern philosophers in thinking about how language is core to the people that we are and that we become.
COWEN: What else from philosophy influenced the construction and design of LinkedIn?
Recommended. For help in arranging this Conversation I am very much indebted to Ben Casnocha.
Of the 69 rulers of the unified Roman Empire, from Augustus (d. 14 CE) to Theodosius (d. 395 CE), 62% suffered violent death. This has been known for a while, if not quantitatively at least qualitatively. What is not known, however, and has never been examined is the time-to-violent-death of Roman emperors…
Nonparametric and parametric results show that: (i) emperors faced a significantly high risk of violent death in the first year of their rule, which is reminiscent of infant mortality in reliability engineering; (ii) their risk of violent death further increased after 12 years, which is reminiscent of wear-out period in reliability engineering; (iii) their failure rate displayed a bathtub-like curve, similar to that of a host of mechanical engineering items and electronic components. Results also showed that the stochastic process underlying the violent deaths of emperors is remarkably well captured by a (mixture) Weibull distribution.
How will China transform its economy from middle income to high income country in the coming decades? While economists spend large amounts of time studying debt and demographic challenges, I will take a wider approach to the structural challenges facing China needing to remake society from a middle income to income country.
I consider Chris to be one of the least-heralded very influential people. Perhaps more than anyone else, he has brought many American elites around to a more hawkish view of China.
In the US, the normal, oral temperature of adults is, on average, lower than the canonical 37°C established in the 19th century. We postulated that body temperature has decreased over time. Using measurements from three cohorts–the Union Army Veterans of the Civil War (N = 23,710; measurement years 1860–1940), the National Health and Nutrition Examination Survey I (N = 15,301; 1971–1975), and the Stanford Translational Research Integrated Database Environment (N = 150,280; 2007–2017)–we determined that mean body temperature in men and women, after adjusting for age, height, weight and, in some models date and time of day, has decreased monotonically by 0.03°C per birth decade. A similar decline within the Union Army cohort as between cohorts, makes measurement error an unlikely explanation. This substantive and continuing shift in body temperature—a marker for metabolic rate—provides a framework for understanding changes in human health and longevity over 157 years.
There is now transcript and audio from the Holberg debate in Bergen, Norway, courtesy of the CWTeam, here is their summary of the event:
This bonus episode features audio from the Holberg Debate in Bergen, Norway between Tyler and Slavoj Žižek held on December 7, 2019. They discuss the reasons Slavoj (still) considers himself a Communist, why he considers The Handmaid’s Tale “nostalgia for the present,” what he likes about Greta Thunberg, what Marx got right about the commodification of beliefs, his concerns about ecology and surveillance in communist states like China today, the reasons academia should maintain its ‘useless character,’ his beginnings as a Heideggerian, why he is distrustful of liberal optimism, the “Fukuyama dilemma” we face, the importance of “empty manners,” and more.
COWEN: You know the old joke, what’s the difference between a Communist and a Nazi? Tenure.
ŽIŽEK: You mean university tenure?
COWEN: Yes. It’s a joke, but the point is you don’t need Communism. You are much smarter than Communism.
I would describe the proceedings as “rollicking,” including the segment about “smoking the prick.”
Many rare languages are at risk of disappearing, and Seke, which is spoken in just five villages in Nepal has only approximately 700 speakers left in the world, according to a recent study by the Endangered Language Alliance. The organization estimates there are roughly 100 Seke-speakers living in New York, and 50 of them live in one building in Flatbush, Brooklyn. One of the youngest residents there, Rasmina Gurung, has several relatives in the building, and is helping the Endangered Language Alliance compile a Seke-English dictionary. “I feel so much pressure,” she told the New York Times. “I need to get as much knowledge as possible. And fast.”
Here is the full story (NYT), via John Chamberlain.
Tractors manufactured in the late 1970s and 1980s are some of the hottest items in farm auctions across the Midwest these days — and it’s not because they’re antiques.
Cost-conscious farmers are looking for bargains, and tractors from that era are well-built and totally functional, and aren’t as complicated or expensive to repair as more recent models that run on sophisticated software.
“There’s an affinity factor if you grew up around these tractors, but it goes way beyond that,” Peterson said. “These things, they’re basically bulletproof. You can put 15,000 hours on it and if something breaks you can just replace it.”
BigIron Auctions, a Nebraska-based dealer that auctioned 3,300 pieces of farm equipment online in two days last month, sold 27 John Deere 4440 tractors through 2019.
The model, which Deere built between 1977 and 1982 at a factory in Waterloo, Iowa, was the most popular of the company’s “Iron Horse” series of tractors, which used stronger and heavier internal components to support engines with greater horsepower. The tractors featured big, safe cabins, advancing a design first seen in the 1960s that is now standard.
A sale of one of those tractors in good condition with low hours of use — the tractors typically last for 12,000 to 15,000 hours — will start a bidding war today. A 1980 John Deere 4440 with 2,147 hours on it sold for $43,500 at a farm estate auction in Lake City in April. A 1979 John Deere 4640 with only 826 hours on it sold for $61,000 at an auction in Bingham Lake in August.
Maybe there is a great tractor stagnation or in some cases even retrogression? Here is more from Adam Belz, via Naju Mancheril.
That is the topic of my latest Bloomberg column, here is one excerpt:
My main prediction for 2020, if it can be called a prediction, is trend exhaustion: For the first time in a long while, several important trends have come to an end.
What do I mean by that? Trends ebb and flow, of course, but at any given moment many of them embody one of two distinct states: momentum, or reversion to the mean. The first is a continuation of past progress, either upward or downward. The second is a movement back toward “normal,” however that may be defined.
The relevant list of exhausted trends includes the U.S. labor market, Chinese economic growth, the growth of populist parties, and numerous others. And:
One implication is that the coming year may hold an especially large number of surprises. Alternatively, rational people (and readers of Philip Tetlock, who has studied the difficulty of forecasting the future) might discard their hubris and not be very surprised at all.
This year I want to discuss mostly science and technology. First, some thoughts on China’s technology efforts. Then I’ll present a few reflections on science fiction, with a focus on Philip K. Dick and Liu Cixin. Next I’ll discuss books I read on American industrial history. I save personal reflections for the end.
Dan now lives in Beijing. He left out music, however…
In the decades between 1850 and 1950, the United States decisively transformed its place in the world economic order. In 1850, the US was primarily a supplier of slave-produced cotton to industrializing Europe. American economic growth thus remained embedded in established patterns of Atlantic commerce. One hundred years later, the same country had become the world’s undisputed industrial leader and hegemonic provider of capital. Emerging victorious from the Second World War, the US had displaced Britain as the power most prominently situated — even more so than its Cold War competitor — to impress its vision of a global political economy upon the world. If Britain’s industrial revolution in the late eighteenth century marked the beginning of a ‘Great Divergence’ (Pomeranz) of ‘the West’ from other regions around the world, American ascendance in the decades straddling the turn of the twentieth century marked a veritable ‘second great divergence’ (Beckert) that established the US as the world’s leading industrial and imperial power.
That is an excerpt from a new essay in Past and Present by Stefan Link and Noam Maggor. (You’ll find the best summary of the actual thesis in the last few pages of the piece, not in the beginning.) It is one of the more interesting economic history pieces I have read in some time. The pointer is from Pseudoerasmus, who also has been doing some running commentary on the article in his afore-linked Twitter feed.
Having tracked the libertarian “movement” for much of my life, I believe it is now pretty much hollowed out, at least in terms of flow. One branch split off into Ron Paul-ism and less savory alt right directions, and another, more establishment branch remains out there in force but not really commanding new adherents. For one thing, it doesn’t seem that old-style libertarianism can solve or even very well address a number of major problems, most significantly climate change. For another, smart people are on the internet, and the internet seems to encourage synthetic and eclectic views, at least among the smart and curious. Unlike the mass culture of the 1970s, it does not tend to breed “capital L Libertarianism.” On top of all that, the out-migration from narrowly libertarian views has been severe, most of all from educated women.
There is also the word “classical liberal,” but what is “classical” supposed to mean that is not question-begging? The classical liberalism of its time focused on 19th century problems — appropriate for the 19th century of course — but from WWII onwards it has been a very different ballgame.
Along the way, I believe the smart classical liberals and libertarians have, as if guided by an invisible hand, evolved into a view that I dub with the entirely non-sticky name of State Capacity Libertarianism. I define State Capacity Libertarianism in terms of a number of propositions:
1. Markets and capitalism are very powerful, give them their due.
2. Earlier in history, a strong state was necessary to back the formation of capitalism and also to protect individual rights (do read Koyama and Johnson on state capacity). Strong states remain necessary to maintain and extend capitalism and markets. This includes keeping China at bay abroad and keeping elections free from foreign interference, as well as developing effective laws and regulations for intangible capital, intellectual property, and the new world of the internet. (If you’ve read my other works, you will know this is not a call for massive regulation of Big Tech.)
3. A strong state is distinct from a very large or tyrannical state. A good strong state should see the maintenance and extension of capitalism as one of its primary duties, in many cases its #1 duty.
4. Rapid increases in state capacity can be very dangerous (earlier Japan, Germany), but high levels of state capacity are not inherently tyrannical. Denmark should in fact have a smaller government, but it is still one of the freer and more secure places in the world, at least for Danish citizens albeit not for everybody.
5. Many of the failures of today’s America are failures of excess regulation, but many others are failures of state capacity. Our governments cannot address climate change, much improve K-12 education, fix traffic congestion, or improve the quality of their discretionary spending. Much of our physical infrastructure is stagnant or declining in quality. I favor much more immigration, nonetheless I think our government needs clear standards for who cannot get in, who will be forced to leave, and a workable court system to back all that up and today we do not have that either.
Those problems require state capacity — albeit to boost markets — in a way that classical libertarianism is poorly suited to deal with. Furthermore, libertarianism is parasitic upon State Capacity Libertarianism to some degree. For instance, even if you favor education privatization, in the shorter run we still need to make the current system much better. That would even make privatization easier, if that is your goal.
6. I will cite again the philosophical framework of my book Stubborn Attachments: A Vision for a Society of Free, Prosperous, and Responsible Individuals.
7. The fundamental growth experience of recent decades has been the rise of capitalism, markets, and high living standards in East Asia, and State Capacity Libertarianism has no problem or embarrassment in endorsing those developments. It remains the case that such progress (or better) could have been made with more markets and less government. Still, state capacity had to grow in those countries and indeed it did. Public health improvements are another major success story of our time, and those have relied heavily on state capacity — let’s just admit it.
8. The major problem areas of our time have been Africa and South Asia. They are both lacking in markets and also in state capacity.
9. State Capacity Libertarians are more likely to have positive views of infrastructure, science subsidies, nuclear power (requires state support!), and space programs than are mainstream libertarians or modern Democrats. Modern Democrats often claim to favor those items, and sincerely in my view, but de facto they are very willing to sacrifice them for redistribution, egalitarian and fairness concerns, mood affiliation, and serving traditional Democratic interest groups. For instance, modern Democrats have run New York for some time now, and they’ve done a terrible job building and fixing things. Nor are Democrats doing much to boost nuclear power as a partial solution to climate change, if anything the contrary.
10. State Capacity Libertarianism has no problem endorsing higher quality government and governance, whereas traditional libertarianism is more likely to embrace or at least be wishy-washy toward small, corrupt regimes, due to some of the residual liberties they leave behind.
11. State Capacity Libertarianism is not non-interventionist in foreign policy, as it believes in strong alliances with other relatively free nations, when feasible. That said, the usual libertarian “problems of intervention because government makes a lot of mistakes” bar still should be applied to specific military actions. But the alliances can be hugely beneficial, as illustrated by much of 20th century foreign policy and today much of Asia — which still relies on Pax Americana.
It is interesting to contrast State Capacity Libertarianism to liberaltarianism, another offshoot of libertarianism. On most substantive issues, the liberaltarians might be very close to State Capacity Libertarians. But emphasis and focus really matter, and I would offer this (partial) list of differences:
a. The liberaltarian starts by assuring “the left” that they favor lots of government transfer programs. The State Capacity Libertarian recognizes that demands of mercy are never ending, that economic growth can benefit people more than transfers, and, within the governmental sphere, it is willing to emphasize an analytical, “cold-hearted” comparison between government discretionary spending and transfer spending. Discretionary spending might well win out at many margins.
b. The “polarizing Left” is explicitly opposed to a lot of capitalism, and de facto standing in opposition to state capacity, due to the polarization, which tends to thwart problem-solving. The polarizing Left is thus a bigger villain for State Capacity Libertarianism than it is for liberaltarianism. For the liberaltarians, temporary alliances with the polarizing Left are possible because both oppose Trump and other bad elements of the right wing. It is easy — maybe too easy — to market liberaltarianism to the Left as a critique and revision of libertarians and conservatives.
c. Liberaltarian Will Wilkinson made the mistake of expressing enthusiasm for Elizabeth Warren. It is hard to imagine a State Capacity Libertarian making this same mistake, since so much of Warren’s energy is directed toward tearing down American business. Ban fracking? Really? Send money to Russia, Saudi Arabia, lose American jobs, and make climate change worse, all at the same time? Nope.
d. State Capacity Libertarianism is more likely to make a mistake of say endorsing high-speed rail from LA to Sf (if indeed that is a mistake), and decrying the ability of U.S. governments to get such a thing done. “Which mistakes they are most likely to commit” is an underrated way of assessing political philosophies.
You will note the influence of Peter Thiel on State Capacity Libertarianism, though I have never heard him frame the issues in this way.
Furthermore, “which ideas survive well in internet debate” has been an important filter on the evolution of the doctrine. That point is under-discussed, for all sorts of issues, and it may get a blog post of its own.
Here is my earlier essay on the paradox of libertarianism, relevant for background.
Happy New Year everyone!
Very loyal readers may recall that Lemin Wu was a Berkeley Ph.D in economic history and a student of Brad DeLong. Then he seemed to disappear. But for the last few years he was been working and writing, and later in 2020 he has a book coming out in China, in Chinese, title still undetermined.
I have read only parts of the book (the parts in English), and an outline. Still , I am willing to predict it will be the best and most important economics book of the year, in any language. It also likely will mark the first time a Chinese economist, writing in Chinese, created an important work.
I won’t “give away the plot,” but suffice to say it is about the rise of the West, the Malthusian model, group selection in history, why development takes so long, and related big topics. Oh, and it does tie in to and draw upon Cixin Liu’s The Three-Body Problem, just in case you were wondering.
I hope very much this book will be published in English as well.
Hail Lemin Wu!
I had an excellent time in this one, here is the audio and transcript. Here is the opening summary:
Abhijit joined Tyler to discuss his unique approach to economics, including thoughts on premature deindustrialization, the intrinsic weakness of any charter city, where the best classical Indian music is being made today, why he prefers making Indian sweets to French sweets, the influence of English intellectual life in India, the history behind Bengali leftism, the best Indian regional cuisine, why experimental economics is underrated, the reforms he’d make to traditional graduate economics training, how his mother’s passion inspires his research, how many consumer loyalty programs he’s joined, and more.
Yes there was plenty of economics, but I feel like excerpting this bit:
COWEN: Why does Kolkata have the best sweet shops in India?
BANERJEE: It’s a bit circular because, of course, I tend to believe Kolkata has —
COWEN: So do I, however, and I have no loyalty per se.
BANERJEE: I think largely because Kolkata actually also — which is less known — has absolutely amazing food. In general, the food is amazing. Relative to the rest of India, Kolkata had a very large middle class with a fair amount of surplus and who were willing to spend money on. I think there were caste and other reasons why restaurants didn’t flourish. It’s not an accident that a lot of Indian restaurants were born out of truck stops. These are called dhabas.
BANERJEE: Caste has a lot to do with it. But sweets are just too difficult to make at home, even though lots of people used to make some of them. And I think there was some line that was just permitted that you can have sweets made out of — in these specific places, made by these castes.
There’s all kinds of conversations about this in the early-to-mid 19th century on what you can eat out, what is eating out, what can you buy in a shop, et cetera. I think in the late 19th century you see that, basically, sweet shops actually provide not just sweets, but for travelers, you can actually eat a lunch there for 50 cents, even now, an excellent lunch. They’re some savories and a sweet — maybe for 40 rupees, you get all of that.
And it was actually the core mechanism for reconciling Brahminical cultures of different kinds with a certain amount of social mobility. People came from outside. They were working in Kolkata. Kolkata was a big city in India. All the immigrants came. What would they eat? I think a lot of these sweet shops were a place where you actually don’t just get sweets — you get savories as well. And savories are excellent.
In Kolkata, if you go out for the day, the safest place to eat is in a sweet shop. It’s always freshly made savories available. You eat the freshly made savories, and you get some sweets at the end.
COWEN: Are higher wage rates bad for the highest-quality sweets? Because rich countries don’t seem to have them.
BANERJEE: Oh no, rich countries have fabulous sweets. I mean, at France —
COWEN: Not like in Kolkata.
BANERJEE: France has fabulous sweets. I think the US is exceptional in the quality of the . . . let me say, the fact that you don’t get actually excellent sweets in most places —
And this on music:
BANERJEE: Well, I think Bengal was never the place for vocal. As a real, I would say a real addict of vocal Indian classical music, I would say Bengal is not, never the center of . . . If you look at the list of the top performers in vocal Indian classical music, no one really is a Bengali.
In instrumental, Bengal was always very strong. Right now, one of the best vocalists in India is a man who lives in Kolkata. His name is Rashid Khan. He’s absolutely fabulous in my view, maybe the best. On a good day, he’s the best that there is. He’s not a Bengali. He’s from Bihar, I think, and he comes and settles in Kolkata. I think a Hindi speaker by birth, other than a Bengali. So I don’t think Bengal ever had top vocalists.
It had top instrumentalists, and Ravi Shankar, Ali Akbar Khan, Nikhil Banerjee — these were all Bengali instrumentalists. Even now, I would say the best instrumentalists, a lot of them are either Bengali or a few of them are second . . . Vilayat Khan and Imrat Khan were the two great non-Bengali instrumentalists of that period, I would say, of the strings especially. And they both settled in Kolkata, so that their children grew up in Kolkata.
And the other great instrumentalists are these Kolkata-born. They went to the same high school as I did. There were these Kolkata-born, not of Bengali families, but from very much the same culture. So I think Kolkata still is the place which produces the best instrumentalists — sitarists, sarod players, et cetera.
COWEN: Why is the better vocal music so often from the South?
Definitely recommended, Abhijit was scintillating throughout.
This book is more than 1000 pp., here are my impressions:
1. About 600 pp. of this book is a carefully done history of the accumulation and sometimes dissipation of wealth and property. You can evaluate that material without reference to any particular set of political views.
2. At some point the book veers into partisan issues such as the wealth tax. Many of those parts remain interesting, but it also becomes clear that Piketty is “out to lunch,” to wit (p.591):
To return to the Soviet attitude toward poverty, it is important to try to understand why the government took such a radical stance against all forms of private ownership of the means of production, no matter how small. Criminalizing carters and food peddlers to the point of incarcerating them may seem absurd, but there was a certain logic to the policy. Most important was the fear of not knowing where to stop. If one began by authorizing private ownership of small businesses, would one be able to set limits?
I can think of a less naive explanation of Soviet attitudes toward the private sector. Piketty also calls for “participatory socialism” (p.592), a dubious doctrine not to be confused with say Nordic social democracy. For instance, Sweden (among other countries) seems to have fairly extreme wealth inequality.
3. The sentence “Real wages are much higher in America than in Western Europe” does not come easily to his pen. Nor does “The United States is a remarkably successful innovator, let’s see what we can learn from that.” Or even “Raising wages is more important than merely limiting inequality.” Those seems to be banished thoughts in the Piketty intellectual universe.
4. The sections on Soviet and socialist experience can only be called “delusional.” In his account, if only a few political decisions had gone the other way, the USSR might have ended up on a path similar to that of Norway (p.603 and thereabouts).
You know, maybe you think that the inequalities of the current day are much worse than people had been expecting. but that should not revise your view of socialism and the Soviet Union, two matters fairly well settled by historical research.
5. Give these lenses, it is impossible for Piketty to offer any commentary on recent events (about the last 400 pp. of the book) that is anything other than distorted and unreliable. There is massive distrust of the wealthy in this book, and virtually no distrust of concentrated state power.
6. There is a considerable sum of useful and valuable material in this book, and I would not try to dissuade anyone inclined from reading it. Nonetheless I suspect its main import is as another sign of the growing compartmentalization of academic discourse — good work intermingled with highly questionable partisan material — and how so many academics, if the mood affiliation tilts in the right direction, will tolerate or even encourage that.
You can pre-order the book here.