Category: Law
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.
Midnight regulations on chip access
Let us hope the Biden administration does not do too much damage on its way out the door (WSJ):
The U.S. is preparing rules that would restrict the sale of advanced artificial-intelligence chips in certain parts of the world in an attempt to limit China’s ability to access them, according to people familiar with the matter.
The rules are aimed at China, but they threaten to create conflict between the U.S. and nations that may not want their purchases of chips micromanaged from Washington.
…The purchasing caps primarily apply to regions such as Southeast Asia and the Middle East, the people said. The rules cover cutting-edge processors known as GPUs, or graphic processing units, which are used to train and run large-scale AI models.
Should we not want to bring the UAE more firmly into the American orbit? Is there not a decent chance they will have the energy supply for AI that we are unwilling to build domestically? Might not these regulations, over time, encourage foreign nations to become part of the Chinese AI network? More generally, why should an outgoing administration be making what are potentially reversible foreign policy decisions for the next regime?
Tax arbitrage through your business
That is the topic of my latest Bloomberg column, here is one bit:
This phenomenon is one reason that many office jobs in Nordic countries seem so pleasant. The workers have nice lunches and the use of comfortable and stylish furniture, which they are not taxed on, though of course their take-home pay may be less.
If you think that such workplace comforts make people happier than cash, then you may approve of such arrangements. And it is one vision for how to make society marginally less competitive.
An alternative model is that, with a proliferation of workplace perks and a diminution of earning power, workers become somewhat less ambitious on the earnings front. Peer norms may change, and the dynamism and innovation of the economy can decline accordingly. There are, in fact, signs of these problems in current-day Europe.
And this:
A recent study looked at some comparable effects in Portugal where the in-kind benefits accrue to a firm’s owners rather than its workers. When people own enough of a firm to control its behavior, they charge some of their personal consumption to the firm. Or, to put it another way: They draw more in-kind income from the firm, and take less cash. That lowers their total tax burden.
For the top quintile of the Portuguese income distribution, once those people are able to control a business, about 20% to 30% of their consumption expenditures are switched to benefits reaped within the firm. For the top 1% of earners, attaining a position of business manager is associated with an almost 18% drop in monthly expenditures. And lest there be any doubt about what’s happening here, the paper notes that “business expenditures on hotels and restaurants significantly increase by 9.8% in the birthday month of the owner-manager and by 6.1% in the birthday month of the owner-manager’s spouse.”
Worth a ponder.
Marriage markets in everything (tax arbitrage!)
Looking to marry someone with $1m+ of short-term capital gains (LA California) for tax savings (I have $1m+ in losses) and split the savings
I (unfortunately) lost a bunch of money this year with some risky gambles and have ~$1.2m of context of capital losses.
I would like to marry someone with very large ($1m+) short-term capital gains and split the difference on the tax savings.
I am proposing keeping ~40c for every $1 of capital losses I provided for myself and offering you the remainder (~10c or so, $120k context if you are at the highest tax bracket). The formal agreement can be formalized with a lawyer in relation to the marriage
Slight preference for females but open to males too (preference is just to avoid having to explain why I (straight male) married a man in the future).
Prefer if you are in the LA / Socal Area as that’s where I’m located.
That is from Reddit, via Stephen J.
Jennifer Pahlka on DOGE
An excellent piece, one of the best I have read all year. Here is the concluding paragraph:
We can wish that the government efficiency agenda were in the hands of someone else, but let’s not pretend that change was going to come from Democrats if they’d only had another term, and let’s not delude ourselves that change was ever going to happen politely, neatly, carefully. However we got here, we may now be in a Godzilla vs Kong world. Perhaps we’re about to get a natural experiment in which Elonzilla faces off with Larry ElliKong. One of the things we need to be ready to learn is that Elonzilla could lose. Or worse, since Elon and Larry are friends, the expected disruptive could get co-opted. And what would that say about the problem? Conjuring Elon is not bringing a gun to a knife fight. It was never a knife fight.
Recommended.
The Effects of Gender Integration on Men
Evidence from the U.S. military:
Do men negatively respond when women first enter an occupation? We answer this question by studying the end of one of the final explicit occupational barriers to women in the U.S.: in 2016, the U.S. military opened all positions to women, including historically male-only combat occupations. We exploit the staggered integration of women into combat units to estimate the causal effects of the introduction of female colleagues on men’s job performance, behavior, and perceptions of workplace quality, using monthly administrative personnel records and rich survey responses. We find that integrating women into previously all-male units does not negatively affect men’s performance or behavioral outcomes, including retention, promotions, demotions, separations for misconduct, criminal charges, and medical conditions. Most of our results are precise enough to rule out small, detrimental effects. However, there is a wedge between men’s perceptions and performance. The integration of women causes a negative shift in male soldiers’ perceptions of workplace quality, with the effects driven by units integrated with a woman in a position of authority. We discuss how these findings shed light on the roots of occupational segregation by gender.
That is all from
Tabarrok on Bail
I appeared on the Bail in the Midwest Podcast (Apple) to talk about crime and bail. Here is one bit:
I’ve talked about capturing these people and recapturing them and that of course is what you see on television. That’s the sexy part of it but actually a lot of what is going on, as you well know, is that the bail bondsmen understand the system much better than the the clients do. So what they’re often doing is helping their clients to navigate the system and to remind them that “you have a court date”. They call them up and send them a text, “don’t forget you have to be at court at this time in this place,” you know these these people are not necessarily putting it on their Google Calendar right? So the bail bondsmen they really perform a social service in helping people to navigate the intricacies of the criminal justice system at a time of high stress.
Spotify: https://open.spotify.com/episode/7dwB1NX43CEqNzBA2crSDp
Podcast Index: https://podcastindex.org/podcast/5314589?episode=30862010733