Category: Law

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.

The juvenile legal culture that is North Carolina

The 6-year-old dangled his legs above the floor as he sat at the table with his defense attorney, before a North Carolina judge.

He was accused of picking a tulip from a yard at his bus stop, his attorney Julie Boyer said, and he was on trial in juvenile court for injury to real property.

The boy’s attention span was too short to follow the proceedings, Boyer said, so she handed him crayons and a coloring book.

“I asked him to color a picture,” she said, “so he did.”

He didn’t know it, but no matter what the judge decided, the experience could change the boy’s life, experts say, from how he sees the court system to increasing his chance of getting into trouble again and being sent to alternative school.

Seems crazy!  By the way, 82% of the complaints were against boys.  Via Anecdotal.

That was then, this is now, the median voter theorem remains underrated

In March 2020, the Trump administration put into place one of the most controversial and restrictive immigration policies ever implemented at the U.S. border — and in January, President Biden quietly continued it.

The Biden administration says the Trump-era policy known as Title 42, which relies on a 1944 public health statute to indefinitely close the border to “nonessential” travel, remains necessary to limit the spread of the coronavirus. At the same time, Biden officials say, migrants at the southern border still can seek protection in the United States, a right afforded to them under U.S. law.

Yet since March 20, 2020, when the Centers for Disease Control and Prevention issued its order invoking Title 42, U.S. border officials have claimed unchecked, unilateral authority to summarily expel from the country hundreds of thousands of immigrant adults, families and unaccompanied minors who didn’t have prior permission to enter, without due process or access to asylum — let alone testing for the coronavirus.

In a year of Title 42, of more than 650,000 encounters with migrants at the U.S.-Mexico border, fewer than 1% have been able to seek protection, the Los Angeles Times has learned…

“The Biden administration’s use of Title 42 is flatly illegal,” said Lee Gelernt of the American Civil Liberties Union, who sued the Trump administration over the policy, which the Biden administration is defending in court. “There is zero daylight between the Biden administration and Trump administration’s position.”

Here is the full story, via Rich.  Here is further coverage.  And why is the problem not going away?  Here is the FT:

Experts said Biden’s decision to exempt minors from expulsion will keep the numbers flowing. “It’s a no-brainer”, said Jasmin Singh, a New York-based immigration lawyer. “It’s all kids at the moment,” said one person in Guatemala involved in the smuggling, or coyote, trade.

Ongoing…

India Should Embrace Not Ban Crypto

Should India ban crypto in a return to foreign currency regulations of the past or embrace cryptocurrency? Shruti Rajagopalan has an excellent column reminding us of India’s old system of currency control under the License Raj.

If India proceeds with a rumored ban on cryptocurrency, it wouldn’t be the country’s first attempt to impose currency controls. This time, however, a ban is even less likely to succeed — and the consequences for India’s economy could be more dire. The country shouldn’t make the same mistake twice.

In the 1970s and 80s, at the height of what was known as the License Raj, Indians could only hold foreign currency for a specific purpose and with a permit from the central bank. If a businessman bought foreign exchange to spend over two days in Paris and one in Frankfurt, and instead spent two days in Germany, the Reserve Bank of India would demand to know why he’d deviated from the currency permit. Violators were routinely threatened with fines and jail time of up to seven years.

Imports required additional permits. Infosys Ltd. founder Narayana Murthy recalls spending about $25,000 (including bribes) to make 50 trips to Delhi over three years, just to get permission to import a $150,000 computer. Plus, since any foreign exchange that the company earned notionally belonged to the government, the RBI would release only half of Infosys’s earnings for the firm to spend on business expenses abroad.

Naturally a black market, with all its unsavory elements, emerged for foreign currency. The government doubled down, subjecting those dealing in illicit foreign exchange to preventative detention, usually reserved for terrorists. Businessmen selling Nike shoes and Sony stereos were arrested as smugglers.

The system impoverished Indians and made it impossible for Indian firms to compete globally. There’s a reason the country’s world-class IT sector took off only after a balance of payments crisis forced India to open up its economy in 1991.

…While details of the possible crypto ban remain unclear, a draft bill from 2019 bears eerie resemblance to the 1970s controls. It would criminalize the possession, mining, trading or transferring of cryptocurrency assets. Offenders could face up to ten years in jail as well as fines. Such a blanket prohibition would be foolish on multiple levels….

A related problem is that you may think you are banning a cryptocurrency but if you are banning something like Ethereum or Elrond what you are really banning is an experimental workspace, a platform capable of supporting an ecosystem of innovations in finance, art and new forms of cooperation and organization. As I said some time ago:

The Decentralized Autonomous Organization (DAO) is a new organizational form potentially as important as the creation of the corporate form in the 1600s.

and that’s just one example of how crypto will–in one form or another–under-gird much of our life in the 21st century in ways we don’t yet fully see. Banning is premature to say the least.

Moreover, the irony is that India has one of the world’s most advanced identity and payments systems, the India stack. By integrating the India stack with crypto systems regulated similarly to foreign currencies under India’s Foreign Exchange Management Act, India could become a leader in fintech. Balaji Srinivasan presents practical steps forward:

Basically, India doesn’t need to take a risk with a novel ban on the financial internet. It can just modify FEMA to regulate decentralized cryptocurrencies and national digital currencies as foreign assets. A 64-page report by the Indian law firm Nishith Desai Associates outlines in detail how that could work. In brief, the report recommends:

  • Treating crypto as a foreign asset. FEMA provides language that could be used to expressly classify digital assets as “securities”, “goods”, “software”, or “foreign currencies” depending on their features and attributes.
  • Regulating exchanges with startup-friendly licensing. RBI could use FEMA to regulate crypto exchanges as “authorised persons” per the Act, thereby permitting them to deal in foreign currency. Some provision would need to be made to accommodate startups, perhaps by monitoring small new licensees under a regulatory sandbox framework. By repurposing this well-established regulatory mechanism, crypto-assets become subject to all the existing safeguards that the Act provides, including RBI oversight and KYC/AML.
  • Adopting KYC/AML rules. Most developed jurisdictions, including Australia, Canada, the EU, Japan, South Korea, and the US, have brought crypto-asset business activity within their AML regimes. Such an approach has also been recommended by the FATF. India can do this with a simple Central Government notification under the Prevention of Money-Laundering Act.

The FEMA-based model (or a close alternative) would allow us to turn all licensed, regulated Indian exchanges like CoinDCX, WazirX, Coinswitch, Zebpay, Unocoin, and Pocketbits into well-lit venues for trading cryptocurrency. Over time, they will also become huge drivers of remittances for Indians abroad performing remote work, thereby bringing capital into India.

Nominal Taiwanese salmon arbitrage

Have your fun while you can:

A Taiwanese official has pleaded with people to stop changing their name to “salmon” after dozens made the unusual move to take advantage of a restaurant promotion.

In a phenomenon that has been labelled “salmon chaos” by local media, about 150 mostly young people visited government offices in recent days to officially change their name.

The cause of this sudden enthusiasm was a chain of sushi restaurants.

Under the two-day promotion, which ended on Thursday, any customer whose ID card contained gui yu” – the Chinese characters for salmon – would be entitled to an all-you-can-eat sushi meal along with five friends…

The United Daily News reported that one resident decided to add a record 36 new characters to his name, most of them seafood themed, including the characters for “abalone”, “crab” and “lobster”.

Here is the full story, via Jeremy Rubinoff.

Is this truly an Irish equilibrium?

The British health system is the single most important issue driving opposition to Irish unification in Northern Ireland. Citizens of Northern Ireland get free medical care as part of the U.K.’s socialized medicine. British taxpayers subsidize Northern Ireland’s public services to the tune of $12.5 billion, according to one estimate. That’s a lot of money to give up for the nationalist cause. Nor is it clear more generally what the costs of unification would be or who would pay them, or what the economic benefits of unification might involve and who would get them.

It rubs my intuition the wrong way to believe that one form of socialised medicine over another is actually the major factor.  In any case, here is more from Kimberly Cowell-Myers.