Category: Law

Make Africa Healthy Again

In the late 1990s, South Africa’s President Thabo Mbeki decided that mainstream science had AIDS wrong. A small circle of “truth-tellers” convinced him that AIDS came from poverty and malnutrition, not a virus. He warned that anti-retroviral therapy (ART) was toxic and that pharmaceutical companies were poisoning Africans for profit.

His government stalled the rollout of ART. Health Minister Manto Tshabalala-Msimang pushed garlic, beetroot, and lemon as medicine. “Nutrition is the basis for good health,” she said, insisting that exercise and diet, not Western drugs, were the real treatment. She warned that antiretrovirals had side effects, including cancer, that the establishment was hiding. When scientists showed data, she waved it off: “No churning of figures after figures will deter me from telling the truth to the people of the country.”

The result was a public health disaster: hundreds of thousand of preventable deaths (see also here and here).

A reminder of what happens when authority trades evidence for ideology.

*Policing on Drugs*

The author is Aileen Teague, and the subtitle is The United States, Mexico, and the Origins of the Modern Drug War, 1969-2000.  I had been wanting to read a book on this topic, and this manuscript covered exactly the ground I was hoping for.  Excerpt:

…in 1965, only 4.8 percent of college students in the Northeast had ever tried marijuana.  By 1970, that figure jmped to 48 percent of college students from Northeast schools having used marijuana within the last year.

Jim Buchanan was right?  Blame the Beatles?  Remember when so much of the drug trade was a Turkish-French thing?

If you are wondering, the Mexican drug cartels emerged during the 1970s.  Perhaps the author blames more of this on U.S. policy than I think is correct?  If Nixon had never cracked down and militarized the issue, I suspect the evolution of the matter would not be so different from current status quo?  Unless of course you wish to go the Walmart route.

In any case a good book on a topic of vital importance.

Thanksgiving and the Lessons of Political Economy

Time to re-up my 2004 post on thanksgiving and the lessons of political economy. Here it is with no indent:

It’s one of the ironies of American history that when the Pilgrims first arrived at Plymouth rock they promptly set about creating a communist society.  Of course, they were soon starving to death.

Fortunately, “after much debate of things,” Governor William Bradford ended corn collectivism, decreeing that each family should keep the corn that it produced.  In one of the most insightful statements of political economy ever penned, Bradford described the results of the new and old systems.

[Ending corn collectivism] had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been by any means the Governor or any other could use, and saved him a great deal of trouble, and gave far better content. The women now went willingly into the field, and took their little ones with them to set corn; which before would allege weakness and inability; whom to have compelled would have been thought great tyranny and oppression.

The experience that was had in this common course and condition, tried sundry years and that amongst godly and sober men, may well evince the vanity of that conceit of Plato’s and other ancients applauded by some of later times; that the taking away of property and bringing in community into a commonwealth would make them happy and flourishing; as if they were wiser than God. For this community (so far as it was) was found to breed much confusion and discontent and retard much employment that would have been to their benefit and comfort. For the young men, that were most able and fit for labour and service, did repine that they should spend their time and strength to work for other men’s wives and children without any recompense. The strong, or man of parts, had no more in division of victuals and clothes than he that was weak and not able to do a quarter the other could; this was thought injustice. The aged and graver men to be ranked and equalized in labours and victuals, clothes, etc., with the meaner and younger sort, thought it some indignity and disrespect unto them. And for men’s wives to be commanded to do service for other men, as dressing their meat, washing their clothes, etc., they deemed it a kind of slavery, neither could many husbands well brook it. Upon the point all being to have alike, and all to do alike, they thought themselves in the like condition, and one as good as another; and so, if it did not cut off those relations that God hath set amongst men, yet it did at least much diminish and take off the mutual respects that should be preserved amongst them. And would have been worse if they had been men of another condition. Let none object this is men’s corruption, and nothing to the course itself. I answer, seeing all men have this corruption in them, God in His wisdom saw another course fitter for them.

Among Bradford’s many insights it’s amazing that he saw so clearly how collectivism failed not only as an economic system but that even among godly men “it did at least much diminish and take off the mutual respects that should be preserved amongst them.”  And it shocks me to my core when he writes that to make the collectivist system work would have required “great tyranny and oppression.”  Can you imagine how much pain the twentieth century could have avoided if Bradford’s insights been more widely recognized?

Addendum: Today (2025) I would add only that the twenty-first century could avoid a lot of pain if Bradford’s insights were more widely recognized.

My excellent Conversation with Cass Sunstein

Cass was in top form, and so we went on for almost two hours.  In his Substack he described it as “The most fun interview I have ever done.”  Here is the audio, video, and transcript.  Here is part of the episode summary:

Tyler and Cass discuss whether liberalism is self-undermining or simply vulnerable to illiberal forces, the tensions in how a liberal immigration regime would work, whether new generations of liberal thinkers are emerging, if Derek Parfit counts as a liberal, Mill’s liberal wokeism, the allure of Mises’ “cranky enthusiasm for freedom,” whether the central claim of The Road to Serfdom holds up, how to blend indigenous rights with liberal thought, whether AIs should have First Amendment protections, the argument for establishing a right not to be manipulated, better remedies for low-grade libel, whether we should have trials run by AI, how Bob Dylan embodies liberal freedom, Cass’ next book about animal rights, and more.

I will reproduce the section Cass pulled for his own Substack:

COWEN: Now, we started with the topic of liberalism. How is it you think about or characterize the liberalism of Bob Dylan?

SUNSTEIN: Bob Dylan is a liberal. His liberalism is captured in the line, “He not busy being born is busy dying.” I hope he’s immortal, but if anything is on his epigraph, that would be a good candidate.

The notion of self-invention, of freedom, is central to basically everything. His refusal to keep singing the same song — you can hear him talking about it in some of the interviews. He said, “I could do that. I could just do that forever. I knew how they’d react.” He said, “What’s that about?” He said, “I needed to do something else.” But of course, the line, “I needed to do something else” — that’s my line. How he would put it would be much more vivid and surprising than that.

His “Like a Rolling Stone” is an anthem of freedom. I heard it, actually, in concert a few years ago. It was a great performance. It wasn’t young, but it was a great performance. The audience went wild when he did “Like a Rolling Stone.” That was the final song. It was the encore. It wasn’t just because it was the greatest rock song ever written. It was because of how he did it. I thought, “What’s going on in this song? Why is everyone exhilarated?” The song, which he described when he wrote it as vomit, hatred directed at somewhere that was real — it wasn’t that, or it was a little bit that, but it was a song of liberty.

“How does it feel to be on your own with no direction home, like a complete unknown, like a rolling stone?” Everyone felt like they were flying. He makes that — “Like a Rolling Stone” — be a song of freedom. If you look at his angry songs — “Positively 4th Street” — there’s a freedom in being, of course, uninhibited, able to say things, but also a freedom of disconnection.

When he’s asked why did he change his name, I have an account of why he actually did. I think he gave it exactly once, but in his more characteristic way, he said, “This is America. You can change your name.” Then he said, “I was born. I didn’t think I was born with the right name. I could make it up. I could say that sounds more like I was.”

Making rootlessness not be a curse, but instead something that is . . . the word joy is too clichéd for Dylan. If you look at his love songs, like “If You See Her, Say Hello,” which isn’t one of my favorites, but it’s good. There’s a connection with the one he loved, who got away, but you can feel the sense of freedom.

COWEN: “Visions of Johanna”?

SUNSTEIN: Yes, completely. He’s torn. That has the great opening line. “Ain’t it just like the night to play tricks When you’re trying to be so quiet?” Did Yeats write better lines than that? Probably, but he was Yeats.

COWEN: Blood on the Tracks — a liberal album?

SUNSTEIN: Oh, yes.

COWEN: How would you express that?

SUNSTEIN: Well, I’m thinking “Buckets of Rain” is the closing song. Right before that, there’s a song, “You’re Gonna Make Me Lonesome When You Go.” That’s it, which is, I think, one of his greatest songs. That’s a liberal song of freedom and separation, that she’s going, but he’s going to see her everywhere, and there’s smiling at impermanence. That is a big liberal theme — smiling at impermanence — because impermanence makes things not routine and also makes for freedom.

COWEN: “Idiot Wind” is the angry song of the batch, right?

SUNSTEIN: Yes, it’s pretty mad. He said about that song, “I don’t know why people like it. There’s so much sadness and distress in it.”

COWEN: Do you see your own liberalism or just yourself in the liberalism of Bob Dylan?

SUNSTEIN: I think so.

COWEN: Reinventing yourself, not quite wanting to be pinned down, doing a lot of stuff.

SUNSTEIN: He likes, I think, abandoning and going on to something that’s very different. I wish I’d gone electric or had some equivalent of that. But doing something quite different — I do share a little bit with him. I like it when I think something I thought was wrong. I now am very enthusiastic about the Austrian economists and Hayek. I’ve always admired them, of course, but I didn’t feel that they were on my team. Now I feel I’ve gone to their team. I don’t feel ashamed that I was wrong before. I feel excited that I’m less wrong now.

Definitely recommended, I could have pulled out many other parts as well.  Again, I am happy to recommend Cass’s new book Liberalism: In Defense of Freedom.

“Why ‘Humane’ Immigration Policy Ends in Cruelty”

That is the title of my latest Free Press column, which is interesting throughout.  Here is one bit from it:

Behind any immigration debate is an uncomfortable truth: In rich, successful democracies, every workable immigration policy, over enough time, offends liberal instincts or public opinion—often both. We oscillate between compassion and coercive control, and the more we do of one, the more we seem to need some of the other.

The dilemma: Due to the ever-rising numbers of migration to the United States, the enforcement of immigration restrictions has to become more oppressive and more unpleasant as time passes. The alternative course, which is equally unpleasant, is that immigration increases to levels that voters find unacceptable, and we fall under the rule of anti-immigrant parties—which are illiberal on many other issues as well.

The news gets worse. The more pro-immigration you are and the more you allow some foreigners to enter this country, the more others on the outside will wish to come too. Unless you are going to open the border entirely (not a good idea), you will end up having to impose increasingly harsh measures on illegal arrivals, and tougher and tougher restrictions on potentially legal applicants. The liberals in essence become the illiberals.

So I mourn our ongoing and intensifying moral dilemma. At the margin, there are so many people who want to come here (a sign of American success, of course) that there is no kind and gentle way to limit their numbers to a level the public finds acceptable.

And this:

A third alternative is to slow the intake. Keep it fast enough for America to remain “a nation of migrants,” but slow enough to avoid major backlash or to asymptotically approach open borders.

That sounds pretty good, right? But here is the illiberal catch: Given the growing attractiveness of migration to America, penalties and enforcement have to get tougher each year. There are no ways to send large numbers of people back that are not cruel and coercive. There are also few ways to keep people out that do not involve the extensive presence of coercive police, border arrests, imprisonment, and other unpleasant measures.

We might decide to let in more migrants, but still we will end up being cruel to the would-be migrants at the margin. And as demand to migrate continues to rise, we have to be increasingly coercive over time.

That does not have to mean masked ICE men grabbing people randomly off the streets (which leads to violating the constitutional rights of mistakenly identified citizens), but one way or another it is going to involve threats of violence against actual human bodies. That can mean turning away boats full of desperate people, flying people back home, putting them in interim jails, and in general treating them in ways I find deeply unpleasant and disturbing. It is no accident that the Biden administration could not completely avoid the Trumpian policy of separating illegal migrants from the children that accompany them.

Definitely recommended, one of my more interesting pieces this year.

Side-Walking Problems

Local Law 11 requires owners of New York City’s 16,000-plus buildings over six stories to get a “close-up, hands-on” facade inspection every five years. Repair costs in NYC’s bureaucratic and labor-union driven system are very high, so the owners throw up “temporary” plywood sheds that often sit there for a decade. NYC now has some 400 miles of ugly sheds.

The ~9,000 sheds stretching nearly 400 miles have installation costs around $100–150 per linear foot and ongoing rents of about 5–6% of that per month, implying something like $150 million plus a year in shed rentals citywide.

Well. at last something is being done! The sheds are being made prettier! Six new designs, some with transparent roofs as in the rendering below are now allowed. Looks nice in the picture. Will it look as nice in real life? Will it cost more? Almost certainly!

Image

To be fair, City Hall is cracking down as well as doubling down: new laws cut shed permits from a year to three months and ratchet up fines for letting sheds linger. That’s a good idea. But the prettier sheds are the tell. Instead of reevaluating the law, doing a cost-benefit test or comparing with global standards, NYC wants to be less ugly.

How about using drones and AI to inspect buildings? Singapore requires inspections every 7 years but uses drones to do most of the work with a follow-up with hands-on check. How about investigating ways to cut the cost of repair? The best analysis of NYCs facade program indicates something surprising–the problem isn’t just deteriorating old buildings but also poorly installed glass in new buildings, thus more focus on installation quality is perhaps warranted. Moreover, are safety resources being optimized? Instead of looking up, New Yorkers might do better by looking down. Stray voltage continues to kill pets and shock residents. Manhole “incidents” including explosions happen in the thousands every year! What’s the best way to allocate a dollar to save a life in NYC?

Instead of dealing the with the tough but serious problems, NYC has decided to put on the paint.

Big, Fat, Rich Insurance Companies

In my post, Horseshoe Theory: Trump and the Progressive Left, I said:

Trump’s political coalition isn’t policy-driven. It’s built on anger, grievance, and zero-sum thinking. With minor tweaks, there is no reason why such a coalition could not become even more leftist. Consider the grotesque canonization of Luigi Mangione, the (alleged) murderer of UnitedHealthcare CEO Brian Thompson. We already have a proposed CA ballot initiative named the Luigi Mangione Access to Health Care Act, a Luigi Mangione musical and comparisons of Mangione to Jesus. The anger is very Trumpian.

In that light, consider one of Trump’s recent postings:

THE ONLY HEALTHCARE I WILL SUPPORT OR APPROVE IS SENDING THE MONEY DIRECTLY BACK TO THE PEOPLE, WITH NOTHING GOING TO THE BIG, FAT, RICH INSURANCE COMPANIES, WHO HAVE MADE $TRILLIONS, AND RIPPED OFF AMERICA LONG ENOUGH.

My very fun Conversation with Blake Scholl

Here is the audio, video, and transcript.  This was at a live event (the excellent Roots of Progress conference), so it is only about forty minutes, shorter than usual.  Here is the episode summary:

Blake Scholl is one of the leading figures working to bring back civilian supersonic flight. As the founder and CEO of Boom Supersonic, he’s building a new generation of supersonic aircraft and pushing for the policies needed to make commercial supersonic travel viable again. But he’s equally as impressive as someone who thinks systematically about improving dysfunction—whether it’s airport design, traffic congestion, or defense procurement—and sees creative solutions to problems everyone else has learned to accept.

Tyler and Blake discuss why airport terminals should be underground, why every road needs a toll, what’s wrong with how we board planes, the contrasting cultures of Amazon and Groupon, why Concorde and Apollo were impressive tech demos but terrible products, what Ayn Rand understood about supersonic transport in 1957, what’s wrong with aerospace manufacturing, his heuristic when confronting evident stupidity, his technique for mastering new domains, how LLMs are revolutionizing regulatory paperwork, and much more.

Excerpt:

COWEN: There’s plenty about Boom online and in your interviews, so I’d like to take some different tacks here. This general notion of having things move more quickly, I’m a big fan of that. Do you have a plan for how we could make moving through an airport happen more quickly? You’re in charge. You’re the dictator. You don’t have to worry about bureaucratic obstacles. You just do it.

SCHOLL: I think about this in the shower like every day. There is a much better airport design that, as best I can tell, has never been built. Here’s the idea: You should put the terminals underground. Airside is above ground. Terminals are below ground. Imagine a design with two runways. There’s an arrival runway, departure runway. Traffic flows from arrival runway to departure runway. You don’t need tugs. You can delete a whole bunch of airport infrastructure.

Imagine you pull into a gate. The jetway is actually an escalator that comes up from underneath the ground. Then you pull forward, so you can delete a whole bunch of claptrap that is just unnecessary. The terminal underground should have skylights so it can still be incredibly beautiful. If you model fundamentally the thing on a crossbar switch, there are a whole bunch of insights for how to make it radically more efficient. Sorry. This is a blog post I want to write one day. Actually, it’s an airport I want to build.

And;

COWEN: I’m at the United desk. I have some kind of question. There’s only two or three people in front of me, but it takes forever. I notice they’re just talking back and forth to the assistant. They’re discussing the weather or the future prospects for progress, total factor productivity. I don’t know. I’m frustrated. How can we make that process faster? What’s going wrong there?

SCHOLL: The thing I most don’t understand is why it requires so many keystrokes to check into a hotel room. What are they writing?

What are they writing?

Cyprus and multiple state sovereignties

I am struck by how many layers of sovereignty there are in Cyprus, sometimes but not always conflicting. There is Greek Cyprus, Turkish Cyprus (the Turkish interpretation), Republic of Cyprus under Turkish occupation (the Greek interpretation), unified Cyprus (recognized by the EU and also many Cypriot citizens, though the Turkish part is exempt from EU laws and obligations, in any case not recognized by Turkey), the EU, and last but not least Britain claims and possesses, as full sovereign, three percent of Cyprus territory, an arrangement contested by no one.

Arguably you could add “Turkey” to that list. The Turkish government does not claim sovereignty over any part of Cyprus, but they put the flag everywhere, they guarantee defense, the currency is the Turkish lira, and they have a de facto veto over major decisions.  It is Turkey in everything but name, though there is a passport check when visitors fly in from Istanbul.  Keep in mind that the earlier 1974 Turkish invasion deprived what is now Greek Cyprus of its then main cargo port and main airport.

While matters have been peaceful for some while now, I fear these political arrangements limit the ability of Cyprus to exploit scale.  The island has only about 1.3 million people, so complications do not help their ability to attract high-productivity investment.

Illegal Immigrants Didn’t Break the Housing Market; Bad Policy Did

In an interview, JD Vance claimed:

[H]ousing is way too expensive….because we flooded the country with 30 million illegal immigrants who were taking houses that ought by right go to American citizens.

I noted on Twitter that this framing reeks of socialist thinking, national socialist to be precise. A demand for the state to designate a privileged class that get special rights to scarce goods. Treating housing as a fixed stock to be allocated to a favored in-group while blaming an out-group for shortages is collectivist politics driven by grievance, not market reasoning. In short, grievance and entitlement, zero-sum thinking and central planning wrapped into one ugly bundle.

That criticism set people off. The first rebuttal was predictable “Ha ha, the economist forgot about supply and demand!”—a miss, because my point wasn’t about the mechanics of house-price growth but about Vance’s rhetoric: the collectivism and the cheap politics of blaming outsiders. The second rebuttal was that “America belongs to Americans” so of course illegal immigrants shouldn’t be allowed to buy homes.

The second objection is amusing because who is harmed most when a government bans immigrants from buying homes or deports a chunk of potential buyers? American home sellers. The way such bans “work” is by preventing sellers from accepting the highest bid. In effect, these policies are a tax on sellers combined with a subsidy to a subset of buyers.

So bans on foreign buyers are really about taxing some Americans and subsidizing others. Moreover, although the economic logic of illegals pushing up demand is sound, the numbers don’t add up to much. First, there aren’t 30 million illegals; the best estimates are roughly 14 million. And second illegals are obviously not the reason homes blow past a million dollars in places like San Francisco, San Jose, Washington, or New York! The effect of illegal immigrant on house prices exists but is small—the bigger factors are native population growth, rising incomes, zoning rules, and strict limits on new construction. Block illegal immigrants from buying homes and you will get a pause in price growth, but once demand from natives keeps rising against a capped supply, prices will climb back to where they were.

That gets to the deeper problem with Vance’s style of thinking. If “fixing” housing scarcity means blaming whichever group is politically convenient, you end up cycling through targets: illegal immigrants first, then legal immigrants (as Canada has done), then the children of immigrants, then wealthy buyers, then racial or religious minorities. Indeed, one wonders if the blame is the goal.

If you actually want to solve the problem of housing scarcity, stop the scapegoating and start supporting the disliked people who are actually working to reduce scarcity: the developers. Loosen zoning and cut the rules that choke what can be built. Redirect political energy away from trying to demolish imagined enemies and instead build, baby, build.

Wise Words Addendum (hat tip G. Scott Shand):

There is a cultural movement in the white working class to blame problems on society or the government, and that movement gains adherents by the day….We’ll get fired for tardiness, or for stealing merchandise and selling it on eBay, or for having a customer complain about the smell of alcohol on our breath, or for taking five thirty-minute restroom breaks per shift. We talk about the value of hard work but tell ourselves that the reason we’re not working is some perceived unfairness: Obama shut down the coal mines, or all the jobs went to the Chinese. These are the lies we tell ourselves to solve the cognitive dissonance—the broken connection between the world we see and the values we preach.

*The Science of Second Chances*

The author is economist Jennifer Doleac, and the subtitle is A Revolution in Criminal Justice.  Excerpt:

We found that adding anyone charged with a felony to the law enforcement DNA database in Denmark reduced future criminal convictions by over 40 percent. Again, people responded to the higher probability of getting caught by committing fewer crimes.  Being added to the database also increased enrollment in school and rates of employment — signs that folks really were on a better path.  This effect was largest for the youngest men, those ages eighteen to twenty-four.

Incentives matter.  An excellent book, recommended, due out next year.

Prediction markets in everything? Tariff refund edition

Oppenheimer changed its terms from offers earlier this year. The firm said it would consider bids starting at 20 percent per refund claim pertaining to “reciprocal” or IEEPA tariffs and 10 percent for tariffs tied to fentanyl.

Gabriel Rodriguez, the president and co-founder of A Customs Brokerage, in Doral, Fla., and a recipient of several emails from Oppenheimer, said he believed Oppenheimer was offering to pay the equivalent of 80 cents on the dollar per claim.

Here is more from the NYT, via Amy.

Solve for the NIMBY equilibrium?

We are just beginning to think these issues through:

The government’s plan to use artificial intelligence to accelerate planning for new homes may be about to hit an unexpected roadblock: AI-powered nimbyism.

A new service called Objector is offering “policy-backed objections in minutes” to people who are upset about planning applications near their homes.

It uses generative AI to scan planning applications and check for grounds for objection, ranking these as “high”, “medium” or “low” impact. It then automatically creates objection letters, AI-written speeches to deliver to the planning committees, and even AI-generated videos to “influence councillors”.

Kent residents Hannah and Paul George designed the system after estimating they spent hundreds of hours attempting to navigate the planning process when they opposed plans to convert a building near their home into a mosque.

Here is the full story.  Via Aaron K.

Mexico estimates of the day

Ms Sheinbaum’s government says Mexico’s murder rate has come down by 32% in the year since she took office. Analysis by The Economist confirms that the rate has fallen, though by a significantly smaller margin, 14%. Counting homicides alone misses an important part of the picture, namely the thousands of people who disappear in Mexico every year, many of whom are killed and buried in unmarked graves. A broader view of deadly crime that includes manslaughter, femicide and two-thirds of disappearances (the data for disappearances is imperfect), shows a more modest decline of 6% (see chart). Still, Mexico is on track for about 24,300 murders this year, horribly high, but well below the recent annual average of slightly over 30,000. Ms Sheinbaum is the first Mexican leader in years to push violent crime in the right direction.

Here is more from The Economist.