Category: Law

Economics in One Virus

Here is John Cochrane, Megan McArdle, Ryan Bourne and myself on the pandemic. Lots of good material. John Cochrane was excellent on testing in a pandemic and why it’s different than medical testing, starting around 22:00. My follow-up also had some good material, our antibodies, our selves.

Ryan Bourne’s book Economics in One Virus is very good.

 

Atul Gawande and Zeke Emanuel Now Support Delaying the Second Dose

Many people are coming around to First Doses First, i.e delaying the second dose to ~12 weeks. Atul Gawande, for example, tweeted:

As cases and hospitalizations rise again, we can’t count on behavior alone reversing this course. Therefore, it’s time for the Biden admin to delay 2nd vax doses to 12 weeks. Getting as many people as possible a vax dose is now urgent.

Now urgent??? Yes, I am a little frustrated because the trajectory on the new variants was very clear. On January 1, for example, I wrote about The New Strain and the Need for Speed (riffing off an excellent piece by Zeynep Tufekci).  Still, very happy to have Gawande’s voice added to the cause. Also joining Gawande are the power trio of Govind Persad, William F. Parker and Ezekiel J. Emanuel who in an important op-ed write:

If we temporarily delay second doses …that is our best hope of quelling the fourth wave ignited by the B.1.1.7 variant. Because we did not start this strategy earlier, it is probably too late for Michigan, New York, New Jersey and the other Northeastern states. But it might be just in time for the South and California — the next places the more infectious strain will go if historical patterns repeat.

…Drug manufacturers selected the three- or four-week interval currently used between doses to rapidly prove efficacy in clinical trials. They did not choose such short intervals based on the optimal way of using the vaccines to quell a pandemic. While a three- or four-week follow-up is safe and effective, there is no evidence it optimizes either individual benefit or population protection.

…Some complain that postponing second doses is not “following the science.” But the scientific evidence goes far beyond what was shown in the original efficacy trials. Data from the United Kingdom, Israel and now the Centers for Disease Control and Prevention shows that first doses both prevent infection and reduce transmission. In people with prior infection, experts are beginning to recognize that a second dose could provide even less benefit. Following the science means updating policies to recognize new evidence rather than stubbornly maintaining the status quo.

Emanuel is on Biden’s COVID-19 task force so consider this op-ed running the flag up the flagpole. I predict Topol will fall next.

I would be surprised, however, if the US changes course now–too many people would then ask why didn’t we do this sooner?–but dose stretching is going to be important for the rest of the world. Why aren’t we doing more to investigate fractional dosing? Even if we went to half-doses on the second dose–the full second dose appears to be strong–that would still be a significant increase in total supply.

Addendum: I have argued for sending extra doses to Michigan and other hot spots such as NJ. Flood the zone! The Biden administration says no. Why? Production is now running well ahead of distribution as more than 50 million doses have been delivered but not administered. It would be a particularly good idea to send more single-shot J&J to reach hard to reach communities–one and done.

From the comments, on Covid and our response

It is simply not a tenable policy to oppose pandemic lockdowns on the premise that COVID-19 only negatively affects a certain portion of the population. First, the fact that COVID-19 disproportionately killed the elderly was not something that was readily apparent right out of the box, when the virus was spreading rapidly. Hindsight is 20-20. Second, focusing solely on mortality is short-sighted given that approximately one-third of all people who get over COVID-19 suffer “long haul” symptoms that persist for months and may even be permanent in some. We cannot simply claim that the non-elderly have no reason to fear COVID-19.

So far, COVID-19 has killed more Americans than we lost in World War II, and it took the war five years to do what the virus did in one year. Even though the majority of the deaths were 65+, these are staggering numbers. Losing well over 100,000 people under the age of 65 in one year alone is nothing to sneeze at, and that’s with lock-downs and other harsh measures being taken. A “let them live their lives” approach would doubtlessly have escalated those numbers greatly.

The best early policy for any pandemic is to ramp up rapid testing as fast as possible, and test people constantly. A widespread testing regime (like in South Korea) would allow uninfected people to live more or less normally, while stifling the spread of the virus by identifying infected people quickly so they can immediately quarantine and prevent further spread. [Alex’s] earlier post on Testing and the NFL is instructive on that point. Such a testing regime could have enabled us to avoid harsher measures later on. But, unfortunately, America was led at the time by a president who did not prioritize testing (and in fact discouraged it to hide the spread of the virus) and sought to pooh-pooh its danger, shrugging off even the slightest mitigation efforts, like masks. Even after he got it, and was hospitalized, almost put on a ventilator, he acted as though it was nothing. That leadership caused a dangerous cognitive dissonance in public perceptions of COVID-19 — a dissonance that is causing people to take unreasonable risks, refuse to get vaccinated, and otherwise take actions that will make it even harder for us to get out from under this pandemic.

Focusing on the Great Barrington Declaration itself, the big problem with its approach is that it presumes that “herd immunity” will naturally occur with COVID-19 at some point. The evidence indicates, however, that natural infection does not lead to permanent immunity. The worse a person’s symptoms from COVID-19, the longer their immunity lasts, but that’s it. The only immunity that is possible now is through vaccination, and even that will require yearly updates as the virus mutates as it is already doing. Eventually we will have it under control. But the suggestion that people under 65 can just safely infect themselves into herd immunity is likely an impossibility, and certainly not a good enough foundation to rest any pandemic policy on. https://www.nature.com/articles/d41586-021-00728-2

None of this is meant to minimize or challenge the obvious economic and mental health effects of certain pandemic policies. There are a great many costs being imposed by lock-downs and other policies. Businesses are failing and not coming back, jobs are being permanently lost, people are feeling isolated, on and on. All of that is tragic, and could have been largely avoided had we aggressively pursued testing (especially rapid-result testing) from the outset. When the next pandemic comes, I hope our descendants remember that lesson. Because once the pandemic started spreading because we didn’t get a testing regime in place, it was too late, and then the harsher policies became inevitable. The horse was out of the barn, and the game changed for good.

That is from James N. Markels, responding to Don Boudreaux in these comments.

Here is another way to put the broader argument, not my preferred first-order response, but I think significant nonetheless.  Given the way government and public choice work, anything that kills over half a million Americans is going to be a big deal for policy, whether we like it or not (Don should be the first to recognize that government will restrict your liberties for far less than 500k deaths!).  You want the best feasible version of a response, as there isn’t really a stable libertarian response pattern out there.  Trying partial but non-sustainable libertarian approaches will in the end get you more and more statism as the virus keeps on defeating you, deaths rise, and calls for ever-greater state action increase.  A lot of what libertarians don’t like about lockdowns in part stems from the “do nothing” response of the first two months of notice that we Americans had when Covid first appeared in China.

Some of the Covid-era deregulations will stick

Lawmakers in Texas and at least 19 other states that let bars and restaurants sell to-go cocktails during the pandemic are moving to make those allowances permanent. Many states that made it easier for healthcare providers to work across state lines are considering bills to indefinitely ease interstate licensing rules. Lawmakers in Washington are pushing for Medicare to extend its policy of reimbursing for certain telehealth visits. States also are trying to lock in pandemic rules that spawned new online services, from document notarization to marijuana sales.

Deregulation has long been a central tenet among Republican politicians, but many of the coronavirus-inspired changes have gained bipartisan support…

In February, California State Sen. Scott Wiener, a San Francisco Democrat, co-authored legislation with a Republican lawmaker to make permanent the coronavirus-era suspension of liquor laws that prohibited drinking in sidewalk extensions known as parklets and other outdoor dining spaces used by multiple vendors. If approved by two-thirds of the legislature and signed by the Democratic governor, it would take effect in September.

State legislatures in Connecticut and Arkansas also are weighing bills to extend outdoor dining allowances made during the pandemic.

Mr. Wiener said he has spent years studying ways to modernize the state’s liquor laws, some of which are 100 years old.

Here is much more from Aaron Zitner and Julie Bykowicz at the WSJ.  For the pointer I thank Greg Roemer.

Deregulation has never been more imperative

Electric vehicle charging stations can in fact be provided by the private sector, just as gas stations are.  But will state and local governments step out of the way?:

There are several regulatory barriers to the deployment of EV charging infrastructure including permitting of charging infrastructure, the lack of a technical standard for charging infrastructure, policy uncertainty regarding sale of electricity, regulation regarding EV-related investment by utilities, etc. Cities which face these regulatory barriers should address them as early as possible by building political consensus and then mandating the relevant government agency to address each issue whether it be modifying building codes, streamlining permitting, deciding a standard in consultation with OEMs, etc. As mentioned in Chapter 4, city governments hold a comparative advantage in zoning and building codes and permitting, and they should use those levers to good effect. Cities should use their regulatory influence smartly to remove / mitigate barriers to create a conducive environment for private investors. This report also shows that perse a direct subsidy to private infrastructure providers is not required because charging networks offer a viable business opportunity – the notable exemption being cities with large proportions of on-street residential parking where residents might be undersupplied with charging infrastructure as the economics under those conditions are less appealing.

Here is the full report, from Stephen Crolius and the Clinton Climate Change Initiative.

Has Covid ushered in a new era of U.S. regional decentralization?

That is the topic of my latest Bloomberg column, and here is the opener:

The homogenization of America — through national TV and politics, cheap transportation and big online or nationwide businesses such as Walmart and Amazon — is a longstanding story. Regardless of how true it is, or ever was, a new truth is emerging from the pandemic: In the last year, the differences among the U.S.’s states and regions have become increasingly apparent — and they are more temperamental than political.

I recently spent two weeks in Miami Beach, and the mood was festive. On the street, many people wore masks, but once they entered the packed restaurants and clubs, the masks came off and the partying started. (Disclosure: I am vaccinated, and was an observer, not a participant.) The midnight curfew was by no means always respected.

That scene might make you recoil in horror, and many observers predicted catastrophe for Florida’s policies. But Florida’s death toll is close to the national average, and Governor Ron DeSantis is extremely popular. The state’s lockdowns were never very strict, its schools have been open since August, and Miami’s NBA team is welcoming fans, albeit with seating restrictions. The economy has been booming for some time, in part because people who wish to spend money or organize get-togethers have been drawn to Florida.

And my sense is that most Floridians feel vindicated. I spoke to several people who admitted they had had Covid earlier in the year and described the experience with a giggle or a smirk, as if it were nothing serious. Just last week DeSantis announced that Florida would have nothing to do with plans for vaccine passports…

San Francisco is one obvious point of contrast. The schools still have not reopened, with no clear date in sight, even though the teachers have been offered vaccines. (Meanwhile, the school board decided to rename many of its schools.) Large public gatherings are rare, and inside dining has been largely prohibited. Like Florida, the city can boast of very low death rates from Covid, and like Floridians, many San Franciscans seem proud of their course.

You might think this is all because Florida is a Republican-leaning state. But Donald Trump won only 51.2% of the vote there last year, and Joe Biden won Miami-Dade County by seven percentage points…

Overall the Southeast would seem to be a big winner, as the psychological effects of low rates of unemployment may prove more durable than the effects of high rates of casualties.

There is much more at the link, including a comparison of Virginia and Maryland.

Solve for the equilibrium

In their efforts to rein in illicit massage businesses across the country, police sometimes rely on sting operations in which undercover officers engage in sex acts with spa workers, according to law enforcement experts and police records reviewed by The Post. While such tactics are generally permitted by law…

Here is more from Douglas Macmillan and Abha Bhattarai at The Washington Post.

In Praise of Tyler Cowen and Patrick Collison

Here’s a great video on FastGrants, the fast funding-institution started by Tyler and Patrick Collison to fund COVID research at a speed that could make a difference on the ground. And it did.

Lots of other people stepped in with funding including Arnold Ventures, The Audacious Project, The Chan Zuckerberg Initiative, John Collison, Crankstart, Jack Dorsey, Kim and Scott Farquhar, Paul Graham, Reid Hoffman, Fiona McKean and Tobias Lütke, Yuri and Julia Milner, Elon Musk, Chris and Crystal Sacca, Schmidt Futures, and others.

The list of funded people and projects is long and impressive and while the grants were fast, the payoff is going to last well beyond the pandemic.

Thanks, Tyler and Patrick!

In praise of Alex Tabarrok

Here’s a question I’ve been mulling in recent months: Is Alex Tabarrok right? Are people dying because our coronavirus response is far too conservative?

I don’t mean conservative in the politicized, left-right sense. Tabarrok, an economist at George Mason University and a blogger at Marginal Revolution, is a libertarian, and I am very much not. But over the past year, he has emerged as a relentless critic of America’s coronavirus response, in ways that left me feeling like a Burkean in our conversations.

He called for vastly more spending to build vaccine manufacturing capacity, for giving half-doses of Moderna’s vaccine and delaying second doses of Pfizer’s, for using the Oxford-AstraZeneca vaccine, for the Food and Drug Administration to authorize rapid at-home tests, for accelerating research through human challenge trials. The through line of Tabarrok’s critique is that regulators and politicians have been too cautious, too reluctant to upend old institutions and protocols, so fearful of the consequences of change that they’ve permitted calamities through inaction.

Tabarrok hasn’t been alone. Combinations of these policies have been endorsed by epidemiologists, like Harvard’s Michael Mina and Brown’s Ashish Jha; by other economists, like Tabarrok’s colleague Tyler Cowen and the Nobel laureates Paul Romer and Michael Kremer; and by sociologists, like Zeynep Tufekci (who’s also a Times Opinion contributor). But Tabarrok is unusual in backing all of them, and doing so early and confrontationally. He’s become a thorn in the side of public health experts who defend the ways regulators are balancing risk. More than one groaned when I mentioned his name.

But as best as I can tell, Tabarrok has repeatedly been proved right, and ideas that sounded radical when he first argued for them command broader support now. What I’ve come to think of as the Tabarrok agenda has come closest to being adopted in Britain, which delayed second doses, approved the Oxford-AstraZeneca vaccine despite its data issues, is pushing at-home testing and permitted human challenge trials, in which volunteers are exposed to the coronavirus to speed the testing of treatments. And for now it’s working: Britain has vaccinated a larger percentage of its population than the rest of Europe and the United States have and is seeing lower daily case rates and deaths.

Here is more from Ezra Klein at the New York Times.

Personal bankruptcies have declined during the pandemic

The number of people seeking bankruptcy fell sharply during the pandemic as government aid propped up income and staved off housing and student-loan obligations.

Bankruptcy filings by consumers under chapter 7 were down 22% last year compared with 2019, while individual filings under chapter 13 fell 46%, according to Epiq data. After holding above 50,000 filings a month in 2019 and in the first quarter of 2020, bankruptcy filings have remained below 40,000 a month since last March when the pandemic hit.

By contrast, commercial bankruptcy filings rose 29%, with more than 7,100 businesses seeking chapter 11 protection last year, according to Epiq…

Economists and bankruptcy lawyers say federal suspensions of evictions, home foreclosures and student-loan obligations have helped limit bankruptcies—though they worry bankruptcy rates could go up after aid ends. Household spending also dropped as people stayed home, canceled travel and socially distanced to avoid the coronavirus. Several rounds of government aid padded incomes with direct payments to households and enhanced unemployment benefits. The personal saving rate rose.

Here is more from the WSJ.

Maine marijuana markets in everything those new service sector jobs

In Maine it is legal to use and possess marijuana (within limits), but illegal to sell it or give it away.  And so how might a transfer be consummated?:

Cannabis Delivery Services are illegal in Maine.  Gifting Cannabis is illegal in Maine.  Don’t worry though! It is still legal for an Adult age 21/+ to carry 2.5oz of Cannabis Flower and up to 5 grams of concentrates!

So under your scenario you are in Maine vacationing, living, etc… and you lost your weed.  OH NO!  Who do you call? The INCREDIBLES.ME Psychic Service!  We have Psychics roaming all over Portland communicating with their deity, their spirit guides, and having religious moments of clarity. We can guarantee to find your LOST WEED!! (For a small, but very worth while fee!).

Just login to this site, and select the cannabis or cannabis products you lost, and give us your address.  We will find YOUR weed and get it back to you ASAP.  Fees vary based on the time it takes us to find your weed, the quantity of weed we have to locate, and the distance in which we have to travel to get YOUR LOST weed back to you.

Here is more, via Jacob F.

Charter city finally in Honduras?

Próspera is the first project to gain approval from Honduras to start a privately governed charter city, under a national program started in 2013. It has its own constitution of sorts and a 3,500-page legal code with frameworks for political representation and the resolution of legal disputes, as well as minimum wage (higher than Honduras’s) and income taxes (lower in most cases). After nearly half a decade of development, the settlement will announce next week that it will begin considering applications from potential residents this summer.

The first colonists will be e-residents. Próspera doesn’t yet have housing ready to be occupied. But even after the site is built out, most constituents will never set foot on local soil, says Erick Brimen, its main proprietor. Instead, Brimen expects about two-thirds of Prósperans to sign up for residency in order to incorporate businesses there or take jobs with local employers while living elsewhere…

After years of debate, Próspera will be the first real-world test of a divisive libertarian idea, says Beth Geglia, an anthropologist who studies charter cities. “There was a noticeable lull in the startup city movement in general until the Próspera Zede project got off the ground,” she says. “It’s ground zero.”

There is considerably more at the link, if this continues on track I will gladly visit and report back.

My Conversation with Sarah Parcak, space archaeologist and Egypt lover

Here is the audio, video, and transcript.  Here is part of the summary:

She joined Tyler to discuss what caused the Bronze Age Collapse, how well we understand the level of ancient technologies, what archaeologists may learn from the discovery of more than a hundred coffins at the site of Saqqara, how far the Vikings really traveled, why conservation should be as much of a priority as excavation, the economics of looting networks, the inherently political nature of archaeology, Indiana Jones versus The Dig, her favorite contemporary bluegrass artists, the best archeological sites to visit around the world, the merits of tools like Google Earth and Lidar, the long list of skills needed to be a modern archeologist, which countries produce the best amateur space archeologists, and more.

Lots of talk about data issues and rights as well.  Here is one excerpt:

COWEN: Here’s something that struck me studying your work. Give me your reaction. It seems to me your job is almost becoming impossible. You have to know stats. You have to know trigonometry. You have to know geometry. In your case, you need to know Egyptian Arabic, possibly some dialect, possibly some classical Arabic, maybe some other languages.

You have to know archaeology, right? You have to know history. You must have to know all kinds of physical techniques for unearthing materials without damaging them too much. You need to know about data storage, and I could go on, and on, and on.

Hasn’t your job evolved to the point where you’re almost . . . You need to know about technologies, right? For finding data from space — we talked about this before. That’s also not easy. Isn’t your job evolving to the point where, literally, no human can do it, and you’re the last in the line?

PARCAK: I am, I guess, jack of all trades, master of a few. But that’s not true either because I have to know the remote sensing programs. I have to know geographic information systems. I have to be up to date on international cultural heritage laws.

I think I’m not special by a long shot. Every archaeologist is a specialist. This archaeologist is a specialist in the pottery of this period of time, or does DNA, or excavates human remains — they’re bioarchaeologists — or they do computation. We all are specialists in a particular thing, but that’s really broad. My unsexy, more academic term is landscape archaeologist, so I’m interested in ancient human-environment interaction, which encompasses a lot of different fields and subfields. I’ve taken many courses in geology.

All of us who study Egyptology — we do a lot of training in art history because, of course, the iconography and the art and the objects that we’re finding. It takes a lot, but I would say most of the knowledge I’ve gotten is experiential. It’s from being in the field, I’ve visited hundreds of museums. I’ve spent countless hours in museum collections learning, touching objects.

Yeah, it’s a lot, but it’s also the field of archaeology. That’s why so many people really love it — because you get to touch on so many different areas. I would never, for example, consider myself a specialist in bioarchaeology. I know a tibia. When I find pitting on a skull, I know what that could potentially mean.

But also, I’m in a position now where I’m a dig director, so that means I’m in charge of a large group of humans, most of whom are far smarter, more capable than I am in whatever they’re doing. They’re specialists in pottery and bone, in rocks — project geologist — and conservation in art. We have project artists. We have specialists in excavation, and of course, there’s my very talented Egyptian team. They’re excavating. I’m probably a lot more of a manager now than I ever expected to be —

COWEN: And fundraiser perhaps, right?

One of my favorite CWTs in some time.  And here is Sarah’s book Archaeology from Space: How the Future Shapes Our Past.