Here is the transcript and audio, a rollicking time was had by all. We covered what you would expect us to have covered. Here is one bit:
COWEN: And that people want to maximize their overall sense of how their life has gone — do you think that is ultimately Darwinian roots? Why is that the equilibrium? Happiness feels good, right?
KAHNEMAN: Yeah, happiness feels good in the moment. But it’s in the moment. What you’re left with are your memories. And that’s a very striking thing — that memories stay with you, and the reality of life is gone in an instant. So memory has a disproportionate weight because it’s with us. It stays with us. It’s the only thing we get to keep.
COWEN: If you think of your own life, have you maximized happiness or the overall sense of how your life has gone?
COWEN: Neither. Citations?
And on his new project:
KAHNEMAN: I’ll tell you where the experiment from which my current fascination with noise arose. I was working with an insurance company, and we did a very standard experiment. They constructed cases, very routine, standard cases. Expensive cases — we’re not talking of insuring cars. We’re talking of insuring financial firms for risk of fraud.
So you have people who are specialists in this. This is what they do. Cases were constructed completely realistically, the kind of thing that people encounter every day. You have 50 people reading a case and putting a dollar value on it.
I could ask you, and I asked the executives in the firm, and it’s a number that just about everybody agrees. Suppose you take two people at random, two underwriters at random. You average the premium they set, you take the difference between them, and you divide the difference by the average.
By what percentage do people differ? Well, would you expect people to differ? And there is a common answer that you find, when I just talk to people and ask them, or the executives had the same answer. It’s somewhere around 10 percent. That’s what people expect to see in a well-run firm.
Now, what we found was 50 percent, 5–0, which, by the way, means that those underwriters were absolutely wasting their time, in the sense of assessing risk. So that’s noise, and you find variability across individuals, which is not supposed to exist.
I enjoyed this particular exchange:
COWEN: Do you think of low intelligence as yet a third independent source of error? Or is that somehow subsumed in bias and noise?
KAHNEMAN: You mean plain stupidity?
COWEN: In some cases.
COWEN: A society such as Argentina that relies so heavily on psychoanalysis — as a psychologist, do you see that as bias? Is it a placebo? Is there a placebo effect in psychoanalysis?
KAHNEMAN: You seem to attribute . . . You seem to think that I think of bias all the time.
COWEN: I can’t imagine why. That’s my bias.
KAHNEMAN: It’s like thinking of sex all the time. I really don’t think of bias that much.
COWEN: Some questions about psychologists outside of what you’ve worked on, but maybe related — Freud. What do you think of Freud’s body of work? And has it influenced you at all?
Definitely recommended, and you will find cameo appearances by Michael Nielsen and Daniel Gross.
From my email, he said this was the entirety of his review:
A reflection on how to best worship humans or some form of enduring human community as a god or gods. From a religious perspective, such an approach may at first seem illusory, but an attentive reader will be left wondering how close that illusion is to the actual truth.
By Joshua Kim, here are a few excerpts:
An oddity of Stubborn Attachments is that Cowen is reluctant to apply his pro-economic growth philosophy to real-world political choices.
[TC: that is on purpose of course]
Stubborn Attachments would have been more persuasive if Cowen was more willing to explore the implications of his philosophy on the political and policy choices before us. The question is, are progressive values are at odds with the belief that long-term economic growth is the engine of progress?
Nor does Cowen answer the question of at what point a wealthy society should be able to provide a measure of economic security to all of its citizens? Does the guarantee that work should come with a living wage and that everyone deserves access to health care and education incompatible with a long-term focus on economic progress?
As is always the case with a Cowen book, his writing will make you think. Stubborn Attachments is too abstract for my tastes. But I’m happy to have spent 3.5 hours arguing with Cowen.
If he reads MR, he can always spend more.
Here is the list of the second set of winners, in the order the grants were made, noting that the descriptions are mine not theirs:
Kelly Smith has a for-profit project to further extend a parent-run charter school system in Arizona, using Uber-like coordinating apps and “minimalist” OER methods.
Andrew L. Roberts, Northwestern University, a small grant to further his work on how sports relates to politics.
Stefan de Villiers, high school student, to create podcasts on the decisions of other high school students and how/why they become successful.
Brian Burns is working (with Samo Burja) on the history of mathematics and career networks, with special attention to the blossoming of innovation in 18th century Göttingen: “The secret to producing flourishing mathematical and scientific traditions may lie in a careful study of institutions. I will undertake this investigation and in the process uncover lost mathematical knowledge.” Gauss, Riemann, and Hilbert!
Can Olcer is one of the two entrepreneurs behind Kosmos School, a K-12 school that exists only in virtual reality, a for-profit enterprise with an emphasis on science education.
Anonymous, working on a board game for ten years, aimed at teaching basic economics, including supply and demand and the core ideas of Ronald Coase. The grant is for marketing the game.
Sophie Sandor is a 23-year-old Scottish film-maker making films with “noticeable themes [of] rational optimism, ambition and a rejection of the victimhood notion that millennials are prone to.” She is also interested in making documentaries in the education space.
Nicholas Dunk has a for-profit to bring voice recognition/machine transcription to the daily tasks of doctors. The goal is to solve paperwork problems, free up doctor time, encourage better record-keeping, and improve accuracy, all toward the end of higher quality and less expensive health care.
I learned a great deal from this stimulating and highly unorthodox biography. Here are a few points from the book:
1. It offers a brief but excellent early economic history of Wichita, where Vernon grew up.
2. Vernon, at the time, was very critical of the use of the atomic bombs on Japan, which he considered to be a disproportionate use of force.
3. In the 1940s he became active in CORE and its fight against racial discrimination.
4. In 1948 Vernon was an antiwar pacifist and a supporter of Norman Thomas.
5. At MIT, Paul Samuelson was a show-off lecturer, according to Vernon.
6. The book has plenty of sentences like: “Grandpa Smith and Uncle Norman were always a delight to have around — lots of jokes, wisecracks, and laughs.”
7. pp.163-164: “The details, as we came to know them, were not the least bit complicated…It was at first thought that she had considered using the knife on herself, but apparently the knife was there because she considered cutting a length from a nearby piece of rope. Instead, she used a chain. It was so like my mother — a clean job with no mess. Everyone who knew her knew that she would never have used the butcher knife. Even the hanging could never have occurred in the house. No fuss, no mess; a clean job, with no room for error.”
8. On attention-switching: “I have always had what my mind has gradually come to recognize — by comparative observation of others — as a brain task-switching problem. When I am thinking, writing, or composing, I pass into another world of experience, a world that is isolated from my surroundings…I experience many chaotic but loosely connected thought. One, then another, rises and there emerges a hint of how they are to come together.” He notes that interruptions are very costly to him, and he much prefers one-to-one conversations rather than group dialogues. Furthermore, he argues that his capacity to “hyper-focus” is more valuable than his measured IQ of 130.
9. There are considerable and interesting discussions of autism, Asperger’s and ADHD.
10. The book offers an excellent account of why Purdue was an important economics department in the 1950s and 1960s.
11. In 1957, Vernon considered going to work for a private railroad and leaving Purdue for St. Louis. He didn’t.
Ever since I was a young teenager I loved Tom Lehrer (thanks to Ken Regan, by the way), and I thought I would re-listen to some fresh. I tried the Copenhagen concert, a good overview of his work and with good visuals. I was struck by the following:
1. Lehrer represented the IDW of his day. He said (sang) things others couldn’t, and his main enemy or target was political correctness. It surprised me to hear how little many of the battle lines have changed. Yet Lehrer, while warring against hypocritical political discourse, was in his day on the Left. (Shades of Eric Weinstein!) He worried about the “decline of the liberal consensus,” following the Kennedy era. In 1982 he wrote that he considered feminism, abortion, and affirmative action “more complicated” than the older liberal causes, so perhaps he simply did not blend into the contemporary Left (the piece is interesting more generally).
2. Lehrer’s songs (repeatedly) indicate he saw nuclear weapons and nuclear proliferation as a major problem; in that regard his time probably was wiser than ours.
3. He is very interested in language and the question of how words are used in the public sphere, and how words are used to obfuscate. Might that be the central theme in his thought?
4. He often sneaks China into the cultural references, for instance: “And I’m learning Chinese, says Werner von Braun.” He seems to think it is a much more important country than Russia, although this concert was from 1967 and often was drawing on songs which were older yet.
5. He is much more interested in math and science than current comedians, for instance his “Elements” is a classic [22:54], and redone here with an Aristotle coda, mocking The Philosopher. His audience seems to take this interest in stride. This song is yet another example of inverting what should be said, or not.
6. Yes I know the tunes sound derivative, but most of them are original. And as music…they’re a lot catchier than most of the other musical theatre of his time and I think of many of them as minor classics. I still enjoy hearing them as music. And other than Sondheim and Dylan, how many better American lyricists were there?
7. When he wants to get really gory, he doubles down on mock sadism (“Poisoning Pigeons in the Park”: “…we’ll murder them all with laughter and merriment…except for the few we take home to experiment…”). He once said: “If, after hearing my songs, just one human being is inspired to say something nasty to a friend, or perhaps to strike a loved one, it will all have been worth the while.”
It would be hard to pull this off today. Yet, when I listen to Lehrer, perhaps because I know the historical context, I am not offended. Plus he is flat-out funny. He cited losing his “nasty edge,” and starting to see things in shades of grey, as one reason for what appeared to be a quite premature retirement.
8. He wore a white shirt and his tie was tightly knotted.
9. He’s one of America’s great comics, and the material is idea-rich to a remarkable extent. He hardly ever sung about social themes or person-to-person social interactions.
10. Many of the songs of his that you never hear are in fact commentaries on various folk song movements. Circa 2018, few can understand their references, but they do showcase Lehrer’s extreme idealism.
11. He was at first a math prodigy and later in the mid-1950s, as a draftee, crunched numbers for the NSA. He remains alive and turned 90 earlier this year.
This is a concordance of responses she received on Twitter, I am not sure she endorses all of these ideas, the rest is her I won’t double indent:
Interpersonal and Mindfulness
- Wake up early.
- Spend time in prayer and/or meditation first thing in the morning. Or, if you can’t fit it in then, find time later in the day. I love using Headspace. If you’re Catholic, pray the Rosary daily.
- Practice gratitude, and be specific when thanking someone.
- Keep a personal calendar.
- Write something, anything, everyday.
- Study a foreign language for 5, 15, or 25 minutes a day. Here’s a list of 10 great options.
- Eat meals with people you love.
- Keep in touch with close friends.
- Read to your children, and take pictures of them frequently.
- Read for at least 15 minutes daily.
- Read or watch something new daily. Ideally something you’re curious about.
- Ask questions often.
- Don’t slouch.
- Learn to dance.
- Call your parents and grandparents.
- Go on lots of first dates. Law of large numbers.
- Introduce yourself to new people.
- Before dinner, write down tomorrow’s priority list.
- Restrict your tv time. Or substitute tv time for your most potent distraction. For me that’s Twitter. Here are some practical ways to reduce screen time.
- For young people, ask people you admire in your area for coffee once, twice, or a few times a month. Email is another option. The likelihood of a positive response in both scenarios is probably higher than you expect.
- Negotiate your salary.
- Practice making money online. For a fun place to start, try PredictIt.
- Contribute early and often to your IRA/401(k).
- Invest as you’re able to. (Would welcome reading suggestions in the comments).
- Save a predetermined percentage from each paycheck.
- Pay off your credit cards monthly.
- Sleep 8 hours or more each night. Limiting your blue light exposure after sunset can also improve your sleep quality.
- Try not to use your cell phone in bed. You can also go even further, and put away your phone 30 minutes, an hour, or even two hours before bedtime.
- Increase your water consumption, and whenever possible, drink it to the exclusion of everything else.
- Reduce your sugar, carb, and processed food intake.
- One way you can do this is by bringing your lunch from home to work rather than ordering take out. Added bonus: saving money.
- When you do eat out, choose the healthier options.
- When grocery shopping, check the ingredients of what you’re buying. Try to avoid processed foods with numerous and complicated ingredients.
- Take the stairs if and when you can. If you live in a fairly walkable area, walk everywhere within a mile.
- Don’t overeat — stop just before you’re full.
- If you can, try intermittent fasting at least once a week.
- Exercise daily. Try exercises that you enjoy, otherwise it’s unlikely that you’ll stick with them.
- Incorporate resistance weight-training into your routine.
TC again: Here is the full Medium essay.
Philosophers are accustomed to discussions about how to value lives distant from our own in time and place; economists are not. But in a new book, “Stubborn Attachments: A Vision for a Society of Free, Prosperous, and Responsible Individuals”, Tyler Cowen of George Mason University argues that the moral status of human lives ought not to be traded off over time in the same way that a bond portfolio might be. He puts the results of discounting in evocative terms: given a 5% rate of discount, one human life today is worth 132 a century hence. Is it really ethically acceptable to save one life now at the expense of so many in the future? The lives of humans born decades from now might be difficult for us to imagine, or to treat as of equal worth to our own. But our own lives were once similarly distant from those taking their turn on Earth; the future, when it comes, will feel as real to those living in it as the present does to us. Economists should treat threats to future lives as just as morally reprehensible as present threats to our own.
In this dilemma, I think of U.K. citizens as a kind of stand-in for the human race. Per capita income and education in the U.K. are well above the global average and, more important, Great Britain has one of the most firmly established democratic traditions in the world. So if the U.K. cannot get this decision right, it’s pretty gloomy news for all of us. I am reminded of the scene in Ingmar Bergman’s “The Seventh Seal,” where the traveling knight has to play a game of chess against the figure of Death, and his life will be spared if he wins…
Paul Krugman opined recently that Brexit would likely cost the U.K. about 2 percent of GDP, a fair estimate in my view. But that is not the only thing at stake here. Humanity is on trial — more specifically, its collective decision-making capacity — and it is the U.K. standing in the dock.
I’ll be glued to my seat, watching.
Recommended! Here is the full column.
Portugal has now had two lost decades. Adjusting for inflation, GDP per capita grew 7% between 2000 and 2008. I mean it grew 7% over that whole period, not on a yearly basis. Then it fell during the crisis and only last year did it get back to 2008 levels, so that between 2000 and 2017, total growth was 7%…
The population who lived in Portugal through the last 10 years now get extactic over 2.2% year-on-year growth. After so many years of nothing, mediocre growth feels amazing. Still, if you cross the border into Spain it no longer feels “this is what Portugal will be in 2021”, it feels like a much wealthier, qualititatively different, better economy. Portugal could have been that, but, at least in my lifetime, it probably won’t be. This is a lost opportunity and it brings me sadness.
Maybe it’s not that I am a regional thinker, but a regional feeler. I have a visceral feel for what it means to “grow to the level of Greece and then stop there” that comes from lived experience.
In summary, this is why I recommend you read Stubborn Attachments.
That is from Luis Pedro Coelho, there is more of interest at the link.
Here is the audio and transcript, Paul was in top form and open throughout. Yes economic growth, blah blah blah, but we covered many related topics too:
COWEN: And you also think we should simplify the English language. Right?
ROMER: [laughs] Well, there’s two parts to that. One is, in writing and communication, there should be a very high priority on clarity. It’s hard to know what’s the mechanism that enforces that. There are variants on English, like the English used to write the manuals people use to service airplanes, where there’s a very restricted vocabulary. The words are chosen so that you can’t have any ambiguity because you don’t want somebody servicing a plane to get confused. So there are some things you could do on writing, word choice, vocabulary, exposition.
There’s a separate issue, which is that amongst the modern languages, English has the worst orthography, the worst mapping between spelling and sounds of any of the existing languages. And it’s a tragedy because English is becoming the universal second language.
The incidence of people who don’t learn to read is substantially higher in English than in other languages. People have known for a long time, it takes longer to learn to read in English because of the bad orthography. But what hasn’t gotten enough attention is that there’s an effect on the variance as well. There are more people who never get over this hurdle to actually learning to read.
If there were a way to do in English what they’ve done in other languages, which is to clean up the orthography, that could make a huge difference in the variation associated with whether or not people can learn to read English.
COWEN: Can a charter city work if we import good laws from the outside world but not the appropriate matching culture?
ROMER: You’ve zeroed right in on the connection. The real motivation that I had for charter cities was exactly this one that you can see in the US versus New Zealand. You can think of a charter city exercise . . .
This is actually the story of Maryland: We’re going to create laws, and we’re going to guarantee freedom of religion in Maryland, and it’s in the laws; it’s in the institution somehow. That didn’t turn out very well. Maryland had a Catholic elite but then large numbers of Protestant indentured servants or workers. And this kind of commitment to freedom of religion was not stable in Maryland at all.
The case that’s worth trying to copy is Pennsylvania, where William Penn recruited large numbers of people who actually believed in freedom of religion. The word charter comes from the charter that Penn wrote for Pennsylvania, but it wasn’t the document that mattered. What mattered was that there were a bunch of people in the founding population who were committed to this idea of a separation of church and state and religious freedom. And that’s what made it durable in Pennsylvania in a way it wasn’t in Maryland.
ROMER: …Moses was of this generation that was too enamored of the car, and this is where I think Jacobs had a better intuition. But the challenge, the dichotomy I would pose would be Jane Jacobs versus Gouverneur Morris.
Morris was the guy who drew the grid that laid out the rectangular street map for Manhattan.
We also discussed music, including Hot Tuna, Clarence White, and Paul’s favorite novel, dyslexia, what Paul has learned about management, and much more. Self-recommending, if there ever was such a thing.
The excellent Jason Brennan with a short introduction to his new book, When All Else Fails: The Ethics of Resistance to State Injustice:
Imagine a situation in which a civilian commits an injustice, the kind against which you believe it is permissible to use deception, subterfuge or violence to defend yourself or others. For instance, imagine your friend makes an improper stop at a red light, and his dad, in anger, yanks him out of the car, beats the hell out of him, and continues to strike the back of his skull even after your friend lies subdued and prostrate. May you use violence, if it’s necessary to stop the father? Now imagine the same scene, except this time the attacker is a police officer in Ohio, and the victim is Richard Hubbard III, who in 2017 experienced just such an attack as described. Does that change things? Must you let the police officer possibly kill Hubbard rather than intervene?
Most people answer yes, believing that we are forbidden from stopping government agents who violate our rights. I find this puzzling. On this view, my neighbours can eliminate our right of self-defence and our rights to defend others by granting someone an office or passing a bad law. On this view, our rights to life, liberty, due process and security of person can disappear by political fiat – or even when a cop has a bad day. In When All Else Fails: The Ethics of Resistance to State Injustice (2019), I argue instead that we may act defensively against government agents under the same conditions in which we may act defensively against civilians. In my view, civilian and government agents are on a par, and we have identical rights of self-defence (and defence of others) against both. We should presume, by default, that government agents have no special immunity against self-defence, unless we can discover good reason to think otherwise.
I think it helps in answering this question to think of other countries say South Africa under Apartheid or China today among the Uighur in Xinjiang province…then be consistent. Note that resistance to state injustice may be unwise even when it is ethical.
For the pointer I thank Christina.
“What Tyler Cowen Thinks About Basically Everything.” The first half of so covers Stubborn Attachments, the second half is an entirely new set of topics, including what I think of various people, honest answers given!
I will be doing a Conversations with Tyler with her, no associated public event. Here is her New Yorker bio:
Larissa MacFarquhar has been a staff writer at The New Yorker since 1998. Her Profile subjects have included John Ashbery, Barack Obama, Noam Chomsky, Hilary Mantel, Derek Parfit, David Chang, and Aaron Swartz, among many others. She is the author of “Strangers Drowning: Impossible Idealism, Drastic Choices, and the Urge to Help” (Penguin Press, 2015). Before joining the magazine, she was a senior editor at Lingua Franca and an advisory editor at The Paris Review, and wrote for Artforum, The Nation, The New Republic, the New York Times Book Review, Slate, and other publications. She has received two Front Page Awards from the Newswomen’s Club of New York and the Academy Johnson & Johnson Excellence in Media Award. Her writing has appeared in “The Best American Political Writing” (2007 and 2009) and “The Best Food Writing” (2008). She is an Emerson Fellow at New America.
So what should I ask her?