Category: Uncategorized

Saudi construction project of the day

Saudi Arabia is preparing to begin construction work on its next giga-project: a cube-shaped skyscraper big enough to fit 20 Empire State Buildings.

The Mukaab will be 400-meters on each side when construction is finished, which would make it the largest built structure in the world. The building will be the centerpiece of New Murabba, a community the country hopes will be a new destination within the capital city of Riyadh.

“It’s masquerading as a building today but it’s so much more,” Michael Dyke, chief executive officer of New Murabba, said in an interview. “Ultimately, a capital city the size of Riyadh deserves to have a global, central icon as other capital cities do.”

Here is more from Zainab Fattah at Bloomberg.  Here are various images based on artist renderings.  Here is further information.

The protest culture that is Maine

A man used homemade explosives, some of which he dropped from drones, to attack or intimidate in a dispute rooted in local politics in a community in northern Maine, law enforcement officials said. No one was hurt.

Joshua Brydon, 37, of Woodland, appeared in court this week after authorities say he set off explosives near the homes of several people with devices he created from fireworks, propane bottles and other materials, according to court documents. One of the blasts was strong enough to knock items off a wall in a home, and several of the explosives were dropped by drones operated by Brydon, according to documents.

Court records indicate Brydon targeted people who had taken issue with a former member of the Woodland Select Board or with his father-in-law, the town’s road commissioner.

Here is the full story, via Mike Rosenwald.

The Political Transformation of Corporate America, 2001-2022

This article reconciles conflicting views about the political landscape of corporate America with new data on the revealed political preferences of 97,469 corporate directors and executives at 9,005 different U.S. companies. I find that average ideology for these individuals has shifted meaningfully to the left over time, changing from modestly conservative in 2001 to roughly centrist by 2022. This finding supports a middle-ground position between conventional wisdom casting “big business” as a conservative stronghold and revisionist views holding the opposite. Counterfactual simulations and a difference-in-differences design suggest multifaceted causes for these changes, and hand-collected data on corporate stances on LGBTQ-related legislation coupled with an instrumental variables design indicate that individual ideology has large effects on firm-level political activity. Overall, this transformation has profound implications for American politics, as the individuals comprising one of the most powerful interest groups—corporate elites—appear to be fracturing ideologically and to some degree even switching sides.

That is from a new paper by Reilly Steel.

Saudi claim of the day

The Neom giga-project in Saudi Arabia is currently using one fifth of all the steel produced in the world, an official said on Monday.

The futuristic city will be the world’s largest customer for construction materials for several decades, said Manar Al Moneef, Neom’s chief investment officer.

She told the Global Logistics Forum in the King Abdullah Financial District in Riyadh that the $500 billion project would be one of the world’s leading drivers of the global logistics sector in coming years.

“Neom is going to be the largest customer over the next decade. If you look at our demand in logistics it’s 5 percent of the global logistics market,” she told the forum, in rare public comments.

Here is the full story, via Mike Doherty.

Friday assorted links

1. Choose the right status hierarchies.  An excellent short essay.

2. How to solve America’s housing crisis.

3. Hugh Grant sides with Schelling and rebels against Adam Smith.

4. The new Sienese painting show at the Met (New Yorker).

5. Open Philanthropy looking for someone great to lead a new program on accelerating economic growth in developing economies.

6. AI in Africa (FT).

7. One guy compiles the best Robin Hanson posts.

Noah Smith on the vibe shift

My values haven’t become more conservative — my desire for a more economically egalitarian and socially tolerant society has not diminished an iota. You won’t see me bellowing “I didn’t leave my party, my party left ME!!” and storming over to the GOP in a huff. But I have to say that I now doubt the practical effectiveness of some of the policies I embraced in previous years. Others still seem like good ideas, but I’ve been dismayed at their botched implementation where they were tried. And many progressive ideas simply don’t seem like they’ll be able to win majority political support in the near future. It’s looking more and more likely that America is headed for a more conservative decade.

I’m not the only person to have noticed the shift. Dave Weigel recently wrote a post detailing all the ways that Kamala Harris’ campaign is to the right of Biden’s 2020 run, both in terms of tone and rhetoric and in terms of actual policy. Harris and other Dems have touted their tough stances on the border, abandoned big new spending programs, stopped talking about a public option for health insurance, trumpeted their support for Israel, embraced oil drilling, and gone tough on crime. Harris’ policy agenda includes plenty of pro-business and deregulatory ideas. She even brags about owning a gun and being willing to shoot intruders.

Here is the full post.  And this,  from later on, past the gate:

The sheer range of issues where progressivism seems adrift and directionless leaves me pensive and morose. I believe in the power of wonky technocrats to implement incremental policy tweaks to accelerate the energy transition, fix the immigration system, and make police more effective and less violent. But what’s left to fight for? Other than defending America against the depredations of Trump and the right, what big political goal can mobilize the masses to get out there and vote for left-of-center politicians?

I do see two big bright spots here. The first is industrial policy, which promises not just to restore American manufacturing, but to revitalize whole areas of the country. The second is the abundance agenda and YIMBYism, which promises to provide cheap housing, energy, and transportation for all.

Recommended.

My Conversation with Musa al-Gharbi

I am a big fan of Musa’s work, most of all his new book We Have Never Been Woke: The Cultural Contradictions of a New Elite.  As for the podcast, here is the video, audio, and transcript.  Here is the episode summary:

Tyler and Musa explore the rise and fall of the “Great Awokening” and more, including how elite overproduction fuels social movements, why wokeness tends to fizzle out, whether future waves of wokeness will ratchet up in intensity, why neuroticism seems to be higher on the political Left, how a great awokening would manifest in a Muslim society, Black Muslims and the Nation of Islam, why Musa left Catholicism, who the greatest sociologist of Islam is, Muslim immigration and assimilation in Europe, and more.

Excerpt:

COWEN: Let me give you an alternate theory of the Great Awokening, and tell me what’s wrong with it. It’s not really my view, but I hear it a lot.

So on the Left, there’s some long-term investment in teaching in America’s top universities. You produce a lot of troops who could become journalists, and they’re mostly left-leaning. Then 2011, 2012 — there’s something about the interaction of social media and, say, The New York Times and other major outlets, where all of a sudden they have a much bigger incentive to have a lot of articles about race, gender, Black Lives Matter, whatever. When those two things come together, wokeness takes off based on a background in Christianity and growing feminization of society.

By the time you get to something like 2021, enough of mainstream media has broken down that it’s simply social media out there going crazy. That just gives us a lot of diversity of bizarre views rather than just sheer wokeness — and besides, Elon is owning Twitter, so wokeness ends.

What’s wrong with that account?

AL-GHARBI: For one, I do think that some of the factors that you identified are important for contextualizing the current moment. For instance, a lot of the symbolic professions, like law and consulting, academia, journalism — they are being feminized. I do talk a bit in the book about how this matters for understanding the dynamics in a lot of these institutions. Not just over the last 10 years, but over the last several decades, in part because women and men tend to engage in very different forms of status-seeking and competition and things like that. So that does matter.

Things like social media obviously do change the way interactions play out. But you can see, actually, that things like social media or changes in the media landscape after 2010 — one limitation for using those kinds of explanations to explain the current moment is that it becomes hard, then, to understand how or why it was the case that . . .

There were three previous episodes like this, one in the 1920s through the early ’30s, one in the mid-1960s to the late ’70s, and then one in the late ’80s through early ’90s. In all cases where we didn’t have social media, where the structure of media enterprises was importantly different than it is today, and before you had Gen Z “kids these days” with their idiosyncratic attitudes, or before a lot of these professions were as feminized as they were today.

I think all of those factors you said actually do matter, and they matter in the sense — because each of these episodes, there’s so much in common, an insane amount. When you read the book and I walk through some of these — I think a lot of readers will be troubled, maybe, by how similar these episodes are. But they’re also importantly different. They don’t play out identically. They are importantly different: The role that symbolic capitalists occupy in society changed immensely over the last century. The constitution of these fields has changed immensely. There are a lot more women; there are a lot more nonwhite people in these professions than there were in the past, and so on and so forth.

All of those factors you described: I think they actually do matter, especially for understanding the ways in which this period of awokening might differ from previous episodes, but I don’t think they explain why awokenings happen at all.

COWEN: If “woke” recurs, do you think there’s a ratchet effect where it comes back bigger and stronger each time, a bit like the destructiveness of war? Or is it more of a random walk? Like, the next wave of woke in 37 years might be half as strong as the one we just had. What’s your model?

AL-GHARBI: I think it’s random; that depends a little bit on . . .

What I argue in the book is that the — for instance, when we look at the last period of awokening in the late ’80s and early ’90s, it was much less — that was the last time we had these struggles over what they call political correctness, or the PC culture, which we call wokeness today. As I argue in the book, it didn’t last as long, that awokening. It was shorter than most of the others, actually. Shorter than the one in the ’60s, shorter than the one after 2010. It was a little shorter, and it also wasn’t quite as dramatic.

I think there are these kind of contextual factors that significantly inform how severe it is or how long it lasts, how long it’s able to sustain itself or how long it is until the frustrated elites get — enough of them get satisfied that they disengage. My guess is that it’s more of a random walk, but I’m open to persuasion.

Definitely interesting.

How should strong AI alter philanthropy?

That is the theme of my latest Bloomberg column, and here is one bit:

One big change is that AI will enable individuals, or very small groups, to run large projects. By directing AIs, they will be able to create entire think tanks, research centers or businesses. The productivity of small groups of people who are very good at directing AIs will go up by an order of magnitude.

Philanthropists ought to consider giving more support to such people. Of course that is difficult, because right now there are no simple or obvious ways to measure those skills. But that is precisely why philanthropy might play a useful role. More commercially oriented businesses may shy away from making such investments, both because of risk and because the returns are uncertain. Philanthropists do not have such financial requirements.

And this oft-neglected point:

Strong AI capabilities also mean that the world might be much better over some very long time horizon, say 40 years hence. Perhaps there will be amazing new medicines that otherwise would not have come to pass, and as a result people might live 10 years longer. That increases the return — today — to fixing childhood maladies that are hard to reverse. One example would be lead poisoning in children, which can lead to permanent intellectual deficits. Another would be malnutrition. Addressing those problems was already a very good investment, but the brighter the world’s future looks, and the better the prospects for our health, the higher those returns.

The flip side is that reversible problems should probably decline in importance. If we can fix a particular problem today for $10 billion, maybe in 10 years’ time — due to AI — we will be able to fix it for a mere $5 billion. So it will become more important to figure out which problems are truly irreversible. Philanthropists ought to be focused on long time horizons anyway, so they need not be too concerned about how long it will take AI to make our world a fundamentally different place.

Recommended, interesting throughout.

Letters of recommendation

We analyze 6,400 letters of recommendation for more than 2,200 economics and finance Ph.D. graduates from 2018 to 2021. Letter text varies significantly by field of interest, with significantly less positive and shorter letters for Macroeconomics and Finance candidates. Letters for female and Black or Hispanic job candidates are weaker in some dimensions, while letters for Asian candidates are notably less positive overall. We introduce a new measure of letter quality capturing candidates that are recommended to “top” departments. Female, Asian, and Black or Hispanic candidates are all less likely to be recommended to top academic departments, even after controlling for other letter characteristics. Finally, we examine early career outcomes and find that letter characteristics, especially a “top” recommendation have meaningful effects on initial job placements and journal publications.

That is from a new paper by Beverly Hirtle and Anna Kovner.  Via the excellent Kevin Lewis.