Category: Law
My podcast with Reason
With Liz Wolfe and Zach Weissmueller:
The link here contains the YouTube video, text description, and links to audio versions at reason.com: https://reason.com/podcast/2025/01/10/tyler-cowen-why-do-we-refuse-to-learn-from-history/
Youtube page for embedding is here: https://www.youtube.com/watch?v=p-Kpyg2mFU8
Lots of about libertarianism and state capacity libertarianism, and The Great Forgetting, food at the end…interesting throughout!
Martha
Martha (Netflix): A compelling bio on Martha Stewart. Her divorce from Andrew Stewart happened more than 30 years ago so the intensity of her anger and bitterness comes as a surprise. With barely concealed rage, she recounts his affairs and how poorly he treated her. “But didn’t you have an affair before he did?” asks the interviewer. “Oh, that was nothing,” she replies waving it off, “nothing.”
Stewart’s willpower and perfectionism are extraordinary. She becomes the U.S.’s first self-made female billionaire after taking her company public in 1999. Then comes the insider trading case. The amount in question was trivial—she avoided a $45,673 loss by selling her ImClone stock early. Stewart was not an ImClone insider and not guilty of insider trading. However, in a convoluted legal twist, she was charged with attempting to manipulate her own company’s stock price by publicly denying wrongdoing in the ImClone matter. Ultimately, she was convicted of lying to the SEC. It’s worth a slap on the wrist but the lead prosecutor is none other than the sanctiminous James Comey (!) and she gets 5 months in prison.
Despite losing hundreds of millions of dollars and control of her own company, Martha doesn’t give up and in 2015, now in her mid 70s, she creates a new image and a new career starting with, of all things, a shockingly hard-assed roast of Justin Bieber. The Bieber roast leads to a succesful colloboration with Snoop Dogg. Legendary.
Stewart is as compelling a figure as Steve Jobs or Elon Musk. Not entirely likable, perhaps, but undeniably admirable.
Claims about fires?
In 2007 the Sierra Club successfully sued the Forest Service to prevent them from creating a Categorical Exclusion (CE) to NEPA for controlled burns (the technical term is “fuel reduction”). The CE would have allowed the forest service to conduct burns without having to perform a full EIS (the median time for which is 3.5 years). See: caselaw.findlaw.com/court/us-9th-c John Muir project helped to claw back the full scope of Categorial Exclusions from the 2018 Omnibus Bill as well (though some easement did make it through). In 2021 the outgoing Trump BLM was served with the following notice of intent to sue by the Center for Biological Diversity for their fuel reduction plan in the Great Basin: biologicaldiversity.org/programs/publi BLM backed away from the plan after the transition. These are specific cases, but the cumulative outcome is that CA state agencies don’t even try it because they know they’ll be sued.
Some of the latter part is exaggerated, here is o1 pro commentary.
In California it is apparently illegal to price fire insurance according to risk? o1 pro seems a bit off on this question, but I think you can read between the lines.
Which are the best analyses you are seeing?
Nuclear Deregulation
Nuclear deregulation. Yes, I know how that sounds but bear with me. As Koopman and Dourado write in the WSJ:
The Atomic Energy Act of 1954 established a precise framework for nuclear regulation, requiring federal licensing only for facilities that either use nuclear material “in such quantity as to be of significance to the common defense and security” or use it “in such manner as to affect the health and safety of the public.” This careful distinction recognized that not every nuclear reactor poses meaningful risks.
Those qualifiers were intentional but for a long time were unimportant because nuclear reactors were big and potentially quite dangerous but that was 70 years ago! Today, there are small, safe nuclear reactor designs which meet the requirements of the 1954 Act.
Small modular reactors are dramatically different from the massive reactors envisioned during the Cold War. The reactors at issue in this case generate a fraction of the power of conventional nuclear plants—around 20 megawatts or less—and are designed with modern safety features that would release close to zero radiation even in a worst-case meltdown scenario. Last Energy’s design operates entirely inside a container with 12-inch steel walls that has no credible mode of radioactive release even in the worst reasonable scenario.
Even in such a scenario, according to the plaintiffs, radiation exposure would be less than a tenth what the NRC has deemed too safe to require regulation in other contexts—and less than 1/800th of a routine abdominal CT scan.
The NRC should not be regulating these reactors. Small scale nuclear should be regulated like x-Ray machines or gas turbines not like billion dollar nuclear power plants, the current rule. Reasonable regulation will allow iterative innovation. As I sais in my post Give Innovation a Chance, innovation is a dynamic process. You must build to build better.
Yet the NRC is stifling this progress. The licensing process alone can take up to nine years. Small modular reactor company NuScale spent more than $500 million just to get its design certification approved by the NRC, a process that took more than two million hours of labor and required millions of pages of information. NuScale still needs to apply for its license, which will multiply these costs.
The NRC rule is currently being challenged in State of Texas v. U.S. Nuclear Regulatory Commission. I think the case has a good chance of winning which would be a wonderful win for energy abundance.
One early report on congestion pricing in NYC
That is my latest Bloomberg column, here is one bit:
The core version of the plan stipulates a $9 toll for drivers entering Manhattan below and including 60th Street. Implementation is by E-Z Pass, and the tolls can vary in complex ways. But if you don’t cross the line, you don’t pay. So residents below 60th Street are exempt, provided they stay within the zone.
And:
The data do indicate some effective immediate adjustments. Most notably, morning commutes through the major bridges and tunnels into Manhattan have eased. Presumably the tolls have discouraged some drivers whose trips were less important to them, leading to quicker travel times for those drivers willing to pay. Economists typically consider such changes to be an improvement.
Such changes, however, aren’t of much help to native New Yorkers, in particular those living inside the zone. The earliest measurements indicate that traffic within the zone has not eased notably. So far, I would say the biggest beneficiaries of the policy are the wealthier residents of New Jersey and the New York state government, which is now set to take in more revenue.
Whatever you think of those consequences — YMMV, as they say — at least there is now actual data to sift through. You can track it here, and again it is important to stress that these preliminary assessments may change with time.
Many Manhattanites supported the charges on the grounds that they wanted a quieter, cleaner, less congested center city that was more friendly to bicycles and pedestrians. Think of Copenhagen or Amsterdam, if you have ever been. What they may end up getting is a central city more friendly to their cars — and less friendly to outsiders. It remains to be seen if central Manhattan has a path to becoming truly pleasant in the Nordic sense.
I will continue to follow this issue, as new results will be coming in. Of course stiff tolls on those living inside the zone were the correct thing to do. But that is not how politics works.
China fact of the day
China is loosening its visa policy and allowing some travelers to stay in the country for up to 10 days without obtaining the document.
The United States is among the dozens of countries eligible for the more lenient measure, part of a movement to ease restrictions and welcome back foreigners. The National Immigration Administration announced the change earlier this week.
To qualify for a 240-hour visa-free stay, travelers must transit through any of 60 airports, train stations or seaports in 24 provinces or regions, including such major destinations as Beijing, Shanghai and Sichuan…
One stipulation is the same, however. The China stop is technically for a layover, so you will need a reservation for a third country. For example, you can’t fly from New York to Beijing round-trip, but you could fly from New York to Bangkok to Beijing before returning home. Or from New York to Beijing to Bangkok.
“You will need to show your flight itinerary to show which third country you’re going to and that you’re going to leave within 10 days,” Peat said. “But that’s all you have to do.”
Here is the full story.
India has Too Few Tourists
In 2017, I wrote an article on India’s underperformance in tourism:
India is one of the most desirable tourist destinations in the world. Thirty-five [now 43, AT!] UNESCO World Heritage sites–among them the Taj Mahal, one of the “New Seven Wonders of the World”—attract a global audience. India’s many food, dance and religious cultures are enticing. The widespread availability of English speakers makes India a welcome destination not only for Americans, Canadians and the British but also for many Europeans and others who speak English as a second language. Prices in India are very reasonable for visitors from developed countries.
India has tremendous advantages as a producer of tourism, but its tourism sector is far too small. India is underperforming and in the process giving up tens of billions of dollars in foreign exchange revenue that could lift millions out of poverty.
The Economist concurs noting “a fabulous destination for foreign tourists does little to lure them.” Indeed, India had fewer tourists in 2024 than in 2017. Tunisia attracts more tourists than India! India did improve its visa process, which I complained about in 2017, but it could do much better:
To its credit, the government replaced the onerous process of applying for visas in person with online e-visas. But that was a decade ago and the process remains unpredictable and fiddly; it requires using a website that looks like it was designed during the dot-com boom. Most countries in South-East Asia and the Middle East have slicker sites. Many offer either visas on arrival or visa-free entry.
When I recently visited the UK I entered without being stopped or questioned by a single individual! In contrast, entering India can often take several hours and even with a visa there are forms that have to be filled out for no apparent reason or purpose. Moreover, exiting India is often more time consuming than entering! Yet when I visited India shortly after COVID our tour guide in Bundi was practically in tears as we were the first foreign tourists he had seen in over a year and the money was very welcome.
India should drop its visa requirements for US and European countries entirely and immediately. The tourism industry should be seen as an export industry. Countries go to great lengths to increase exports but India’s government does little to help its tourism industry despite the fact that it’s actually a huge export industry–far bigger than India’s export of pharmaceuticals for example!
Turkey has 55 million tourist visitors a year. That’s 5 times India’s rate which suggests that India could dramatically increase earnings from tourism. More tourists would be great for India and also great for the tourists!
Here is a picture of the fourth tallest statue in the world, in a tiny town in India that no one goes to. Amazing!
Those new service sector jobs, Ace Ventura edition
But Butcher relies on old-fashioned detective work and his 10-year-old working cocker spaniel. Together, the pair have recovered hundreds of pets.
“I could work every single day of the week and every weekend there’s so much demand right across the board,” he said. “I probably get about on average 15 emails or calls just on missing cats every single week, a busy week might be as many as 30.”
His successful recovery rate for cats is somewhere between 82% and 85%. And his work has taken him across the world, tracking down a yorkshire terrier who went missing on the Grenadian island of Carriacou, and investigating a corrupt dog rescue centre in Turkey.
Often he recovers the animals within a day – he found a snatched cavapoo by tracking down CCTV, noticing an identifiable sticker in the window of the offending car, and putting out an appeal leading to the too-hot-to-handle dog being found dumped shortly after.
The AIs will not take these jobs anytime soon. Here is more from The Guardian. Via Henry Oliver.
The Cows in the Coal Mine
I remain stunned at how poorly we are responding to the threat from H5N1. Our poor response to COVID was regrettable but perhaps understandable given the US hadn’t faced a major pandemic in decades. Having been through COVID, however, you would think that we would be primed. But no. Instead of acting aggressively to stop the spread in cows we took a gamble that avian flu would fizzle out. It didn’t. California dairy herds are now so awash in flu that California has declared a state of emergency. Hundreds of herds across the United States have been infected.
I don’t think we are getting a good picture of what is happening to the cows because we don’t like to look too closely at our food supply. But I reported in September what farmers were saying:
The cows were lethargic and didn’t move. Water consumption dropped from 40 gallons to 5 gallons a day. He gave his cows aspirin twice a day, increased the amount of water they were getting and gave injections of vitamins for three days.
Five percent of the herd had to be culled.
“They didn’t want to get up, they didn’t want to drink, and they got very dehydrated,” Brearley said, adding that his crew worked around the clock to treat nearly 300 cows twice a day. “There is no time to think about testing when it hits. You have to treat it. You have sick cows, and that’s our job is to take care of them.”
Here’s another report from a vet:
…the scale of the farmers’ efforts to treat the sick cows stunned him. They showed videos of systems they built to hydrate hundreds of cattle at once. In 14-hour shifts, dairy workers pumped gallons of electrolyte-rich fluids into ailing cows through metal tubes inserted into the esophagus.
“It was like watching a field hospital on an active battlefront treating hundreds of wounded soldiers,” he said.
Here’s Reuters:
Cows in California are dying at much higher rates from bird flu than in other affected states, industry and veterinary experts said, and some carcasses have been left rotting in the sun as rendering plants struggle to process all the dead animals.
…Infected herds in California are seeing mortality rates as high as 15% or 20%, compared to 2% in other states, said Keith Poulsen, a veterinarian and director of the Wisconsin Veterinary Diagnostic Laboratory who has researched bird flu.
The California Department of Food and Agriculture did not respond to questions about the mortality rate from bird flu.
Does this remind you of anything? Must we wait until the human morgues are overrun?
The case fatality rate for cows appears to be low but significant, perhaps 2%. A small number of pigs have also been infected. On the other hand, over 100 million chickens, turkeys and ducks have been killed or culled.
There have now been 66 cases in humans in the US. Moreover, the CDC reports that in at least one case the virus appears to have evolved within its human host to become more infectious. We don’t know that for sure but it’s not good news. Recall that in theory a single mutation will make the virus much more capable of infecting humans.
When I wrote on December 1 that A Bird Flu Pandemic Would Be One of the Most Foreseeable Catastrophes in History Manifold Markets was predicting a 9% probability of greater than 1 million US human cases in 2025. Today the prediction is at 20%.
Once again, we may get lucky and that is still the way to bet but only the weak rely on luck. Strong civilizations don’t pray for luck. They crush the bugs. So far, we are not doing that.
Happy new year.
Top MR Posts of 2024!
The number one post this year was Tyler’s The changes in vibes — why did they happen? A prescient post and worth a re-read. Lots of quotable content that has become conventional wisdom after the election:
The ongoing feminization of society has driven more and more men, including black and Latino men, into the Republican camp. The Democratic Party became too much the party of unmarried women.
The Democrats made a big mistake going after “Big Tech.” It didn’t cost them many votes, rather money and social capital. Big Tech (most of all Facebook) was the Girardian sacrifice for the Trump victory in 2016, and all the Democrats achieved from that was a hollowing out of their own elite base.
Biden’s recent troubles, and the realization that he and his team had been running a con at least as big as the Trump one. It has become a trust issue, not only an age or cognition issue.
I would also pair this with two other top Tyler posts, I’m kind of tired of this in which Tyler bemoans the endless gaslighting. Tyler is (notoriously!) open-minded and reluctant to criticize others, so this was a telling signal. See also How we should update our views on immigration in which Tyler notes that serious studies on the benefits and costs of immigration are quite positive but:
…voters dislike immigration much, much more than they used to. The size of this effect has been surprising, and also the extent of its spread…Versions of this are happening in many countries, not just a few, and often these are countries that previously were fairly well governed.
…Politics is stupider and less ethical than before, including when it comes immigration…We need to take that into account, and so all sorts of pro-migration dreams need to be set aside for the time being
In short if you were reading MR and Tyler you would have a very good idea of what was really going on in the country.
The second biggest post of the year was my post, Equality Act 2010 on Britain’s descent into the Orwellian madness of equal pay for “equal” work. It’s a very good post but it wrote itself since the laws are so ridiculous. Britain has not recovered from woke. Relatedly, Britain’s authoritarian turn on free speech remains an under-reported story. I worry about this.
Third, was my post The US Has Low Prices for Most Prescription Drugs a good narrative violation. Don’t fail the marshmallow test!
Fourth was another from me, No One’s Name Was Changed at Ellis Island.
Fifth, the sad Jake Seliger is Dead.
Sixth, I’m kind of tired of this, as already discussed.
Seventh was What is the Best-Case Scenario for a Trump Presidency? Rhetorically Trump isn’t following the script I laid out but in terms of actual policy? Still room for optimism.
Eighth was Tyler’s post Taxing unrealized capital gains is a terrible idea; pairs well with my post Taxing Unrealized Capital Gains and Interest Rate Policy.
Ninth, Venezuela under “Brutal Capitalism”, my post on the insane NYTimes piece arguing that Venezuela is now governed by “brutal capitalism” under Maduro’s United Socialist Party!
Tenth, Tyler’s post Who are currently the most influential thinkers/intellectuals on the Left? More than one person on this list now looks likes a fraud.
Your favorite posts of the year?
When should DOGE scream in public and push for maximum transparency?
Here is a tweet from Elon, I won’t reproduce it directly on MR. Suffice to say it is strongly worded on the visas issue. Here is a summary of that debate. Much of it is about who should rise or fall in status (duh).
I have some simple, to the point free advice for the DOGERs — the public is not always with you. Making your fight more public, and putting it more on social media, is no guarantee of victory, and indeed it often boosts the chance you will lose or be stymied.
Right now there is an anti-immigration mood, for better or worse, in many countries. But how many voters (former immigrants aside) know what these different types of visas mean, or how many o1s are given out in a year? Yet a lot of influential tech people, and tech donors, know this information pretty well.
So in a non-public fight, you have a big advantage. Trump could maintain or up the number of o1 visas, or make other changes to please the tech people, and few MAGA voters would be very aware of this. But when you scream about this issue, and make it A BATTLE, suddenly it becomes “your pro-immigration sentiment vs. the anti-immigration sentiment of the voters.”
And that is a fight which is very easy to lose. It becomes “The Current Thing,” and everyone is paying attention to the new status game.
So please develop a better sense of when to keep your mouths shut and work behind the scenes.
Full-length documentary on the life and legacy of Rene Girard
Very well done.
The New FDA and the Regulation of Laboratory Developed Tests
The FDA under President Trump and new FDA head Martin Makary should rapidly reverse the FDA’s powergrab on laboratory developed tests. To recap, laboratory developed tests (LDTs) are the kind your doctor orders, they are a service not a product and are not sold directly to patients. Congress has never given the FDA the authority to regulate LDTs. Indeed, in 2015, Paul Clement, the former US Solicitor General under George W. Bush, and Laurence Tribe, a leading liberal constitutional lawyer, wrote an article that rejected the FDA’s claims writing that the “FDA’s assertion of authority over laboratory-developed testing services is clearly foreclosed by the FDA’s own authorizing statute” and “by the broader statutory context.”
Moreover, in addition to legal reasons there are sound public policy reasons to reject FDA regulation of LDTs. Lab developed tests have never been FDA regulated, except briefly during the pandemic when the FDA used the declaration of emergency to issue so-called “guidance documents” saying that any SARS-COV-II test had to be pre-approved by the FDA. Thus, the FDA reversed the logic of emergency. In ordinary times, pre-approval was not necessary but when speed was of the essence it became necessary to get FDA pre-approval. The FDA’s pre-approval process slowed down testing in the United States and it wasn’t until after the FDA lifted its restrictions in March that tests from the big labs became available.
In a remarkably prescient passage, Clement and Tribe (2015, p. 18) had warned of exactly this kind of delay:
The FDA approval process is protracted and not designed for the rapid clearance of tests. Many clinical laboratories track world trends regarding infectious diseases ranging from SARS to H1N1 and Avian Influenza. In these fast-moving, life-or-death situations, awaiting the development of manufactured test kits and the completion of FDA’s clearance procedures could entail potentially catastrophic delays, with disastrous consequences for patient care.
We are seeing the same kind of FDA-caused delay for tests for bird-flu.
Moreover, unlike some of the proposals associated with incoming HHS head Robert Kennedy, reversing the FDA on lab-developed tests has significant support from a wide-variety of experts. Here, for example, is the American Hospital Association:
…we strongly believe that the FDA should not apply its device regulations to hospital and health system LDTs. These tests are not devices; rather, they are diagnostic tools developed and used in the context of patient care. As such, regulating them using the device regulatory framework would have an unquestionably negative impact on patients’ access to essential testing. It would also disrupt medical innovation in a field demonstrating tremendous benefits to patients and providers.
The Trump administration has a number of options:
…the LDT Final Rule was promulgated in time to escape Congressional Review Act scrutiny; however, the executive branch and a Republican-controlled Congress have other tools to limit or vitiate FDA’s authority. These include, in no particular order:
The U.S. Department of Health and Human Services (HHS) could revoke the LDT Final Rule. The recission of a rule is treated the same as the promulgation of a new rule. If HHS revokes the final rule, the cases will likely be dismissed as moot. The timing of such action is uncertain at this time.
FDA could extend or revise its policies of enforcement discretion. LDTs are currently subject to FDA’s phaseout policy which has five stages, the last of which begins in May 2028. Specific categories of IVDs will continue under an enforcement discretion policy indefinitely as described in the preamble to the final rule. HHS could quickly issue such a revised policy or policies without prior public comment if it determines such policy meets the threshold in 21 CFR 10.115(g)(2).
Congress could act. With a Republican-controlled House and Senate to start the new Trump administration, there is a chance that efforts to legislate the regulation of LDTs could be reignited. Based on prior congressional efforts, it is likely that such legislation would place LDTs under control by CMS and CLIA, rather than require LDTs to comply with FDA requirements.
HHS could let the litigation continue. The new administration may view the U.S. District Court for the Eastern District of Texas to be sympathetic to the Plaintiffs’ arguments and therefore proceed unabridged assuming the final rule will be struck-down, if that is indeed the deregulatory objective of the new administration.
The U.S. Department of Justice (DOJ) could act concerning the litigation. DOJ options are constrained by ethics rules but DOJ could request to amend its filings, pause the case pending rule-making proceedings, or take other actions intended to stall or moot the litigation in a deregulatory fashion.
Jefferson’s DOGE (that was then, this is now)
Jefferson swiftly undid twelve years of Federalism. He allowed the Sedition Act to expire and adopted a more catholic naturalization law. He reduced the federal bureaucracy — small even by today’s standards — particularly in the Treasury Department (a slap at Hamilton, who had been Secretary under Washington), slashing the number of employees by 40 percent and eliminating tax inspectors and collectors altogether. He cut the military budget in half, which was then 40 percent of the overall federal budget. He eliminated all federal excise taxes, purging the government of what he called Hamilton’s “contracted, English, half-lettered ideas.” Reluctantly he kept the First Bank of the United States, but paid off nearly half the national debt. “No government in history,” the historian Gordon S. Wood has observed, “had ever voluntarily cut back on its authority.”
That is from the new and very good book Martin van Buren: America’s First Politician, by James M. Bradley. Later things were different:
Martin van Buren went into office deermined to avoid Andrew Jackson’s fateful staffing mistakes. The backbiting and intrigue wasted two years of Jackson’s presidency. This van Buren could not afford.
And a wee bit later:
Then the voters had their say. The November elections in New York were an absolute bloodbath for the Democrats. There were 128 elections for assembly in 1837, and the Whigs won 101 of them.
The book is well-written.
Incarceration sentences to ponder
My analysis reveals a significant change in political beliefs since being incarcerated. There is an increased effect of changing political beliefs for women and people of color incarcerated. The effect reveals that people of color are becoming, either for the first time or further aligned, with the Republican Party since being incarcerated.
That is from researcher Hope Martinez. And here is the explanation for the mechanism:
The experience of violence and abuse while incarcerated extends the tools of white supremacy in the prison system by influencing feelings of shame, hopelessness, and cultural inferiority, further aligning vulnerable groups to conservatism and whiteness.
Via tekl.