Category: Uncategorized
The returns to good data are rising
When we want A.I. to solve real problems for real people, we need to make sure the data exists. That means cleaning up government data sets that are currently in a shambles (a project that the province of Alberta’s government found A.I. could make much faster and easier). It may also mean funding the creation of novel data sets that could eventually give A.I. systems traction on scientific problems that are currently beyond our capability to solve. Those data sets — like the Protein Data Bank — would be public goods, and so would need to be funded by the public.
Here is a longer NYT column on AI from Ezra Klein. And this:
But much of the A.I. capacity will remain in the private sector. So a public agenda for A.I. should also give the private sector reason to work on public problems. Like in Operation Warp Speed, the government could define the outcomes it wants — a drug, a solution — and guarantee a market if it’s found and distributed equitably.
Negativism is not going to win in this sphere.
Sunday assorted links
1. A new theory of galaxy formation?
2. Using AI to sell your house (NYT).
3. Ryan Graves.
4. Henry Oliver on reading Proust and also The Golden Bowl, an excellent essay.
5. On Spotify and Apple Music, are now about half of new song releases done by AI?
6. Is Indian cultural soft power somewhat receding?
Lifestyle and living standards arbitrage
Since the Eisenhower administration, the U.S. hasn’t collected comprehensive statistics on the number of citizens leaving. Yet data on residence permits, foreign home purchases, student enrollments and other metrics from more than 50 countries show that Americans are voting with their feet to an unprecedented degree. A millions-strong diaspora is studying, telecommuting and retiring overseas.
The new American dream, for some of its citizens, is to no longer live there.
In the cobblestoned streets of Lisbon, so many Americans are snapping up apartments that the newest arrivals complain they mostly hear their own language—not Portuguese. One of every 15 residents in Dublin’s trendy Grand Canal Dock district was born in the U.S., according to realtors, higher than the percentage of Americans born in Ireland during the 19th-century influx following the Potato Famine. In Bali, Colombia and Thailand, the strains of housing American remote workers paid in dollars have inspired locals to mount protests against a wave of gentrification.
More than 100,000 young students are enrolled abroad for a more affordable university degree. In nursing homes mushrooming across the Mexican border, elderly Americans are turning up for low-cost care.
On a conference call last month hosted by Expatsi, a relocation company, almost 400 Americans signed up to learn how to move to Albania. The former Stalinist state offers a special visa allowing U.S. citizens to live and work there, with no tax on foreign income for a year, no questions asked.
“Previously, the Americans leaving were super-adventurous and well-credentialed,” said Expatsi founder Jen Barnett, a 54-year-old Alabama native who moved to Yucatán, Mexico, in 2024.
“Now they’re ordinary people, like me,” she said as she ticked through growth numbers.
Here is more from the WSJ. And we are not yet into the era of “AI-savvy Americans being paid lots to help foreign countries manage their own transitions.”
Saturday assorted links
1. Which foreign food chains have made it in NYC?
2. Testing products on AI-generated buyers.
3. Are Vatican pronouncements rising in status?
4. A saner Argentina take. I notice that PTDS is spreading.
5. Yupsy-dupsy.
6. Japan lost three million people over the last five years (NYT).
Supply is elastic, installment #1637
With deadly precision, the Trump administration has launched dozens of attacks on small boats in the waters off South America, killing nearly 200 people in a campaign U.S. officials say is meant to curb the flow of illicit drugs to the United States.
But almost nine months into the operation, epidemiologists, addiction scientists and public health experts say cocaine, by far the top drug smuggled out of South America, is as easy to get in much of the United States as it was before the strikes began.
The findings — based on evaluations of street prices, lethal overdoses, purity of samples and drug seizures at U.S. borders — raise questions about the effectiveness of the largest U.S. military deployment in Latin America in decades.
Here is more from the NYT. And here is another report on supply elasticity, note that European airlines are still flying.
Friday assorted links
What I have been learning doing New Aesthetics
Patrick offered his observations here, I will add a few points of my own.
I very often think in terms of regions and geographic places. Currently, artistic movements (of most sorts, not just “New Aesthetics”) seem to lack a centrality of place. New York City is no longer the center of the art world, high rents being one reason for that but not the only one. It is simply no longer the city’s essence. The rebellious spirit is largely gone. Los Angeles has good galleries and plenty of creativity, but never quite stepped up as a number one city for the visual arts. The Bay Area, in spite of all of its money, remains quite behind. Berlin in some ways feels like it could be an art center, but it is not one. Germany is too complacent. Central Europe more generally has the heritage and still the potential, but I do not see “the engine of growth” there. Paris and London are for certain high-end artistic activities, but they too are not centers of creative ferment at the ground level. The visual arts scene in China has declined precipitously with restrictions on freedom of speech and creation.
Overall, looking through the applications my opinions of Spain and Mexico went up. My opinion of parts of Africa, including South Africa, is relatively high, though that was not reflected in the applications I read. Rather it is from my travel. But I fear that none of those locales have the global oomph to lead the way more generally.
So currently I am still looking for a regional center or centers for the next set of artistic revolutions. I see the contemporary world as failing at that.
I also would say that “Asian women” — from all over — put in a pretty impressive showing. I take that to be a marked reason for optimism. Perhaps future artistic revolutions will be less geographically centered than the past ones?
How Much Has Shale Gas Saved U.S. Consumers?
It may seem like a distant memory now, but as of the mid-2000s, U.S. natural gas production had been flat for a decade, and the U.S. was importing liquefied natural gas (LNG), with plans to import much more. Then shale gas happened. Advances in hydraulic fracturing and horizontal drilling caused U.S. natural gas production to increase significantly, and the U.S. went from being a net importer of natural gas to being the world’s largest exporter. This paper calculates how much shale gas has saved U.S. natural gas consumers. Using price differences between the United States, Europe and Japan, we calculate that U.S. natural gas consumers have saved $3.1-$4.3 trillion between 2007 and 2025, equivalent to $164-$227 billion annually. Access to low-price U.S. natural gas has been particularly valuable during major supply shocks such as the war in Ukraine, and the benefits of shale gas have been experienced broadly across sectors and states.
That is from a new NBER working paper by Lucas W. Davis.
Thursday assorted links
1. “Robinhood launched agentic trading and an agentic credit card today that will allow AI agents to trade equities and make credit card purchases on customers’ behalf.” With cash back, of course.
3. Why has Napoleon so rarely been captured well on screen?
4. Guatemala agrees to joint strikes, with the U.S., against drug gangs (NYT).
6. Emmanuel Roman on the need for deeper and thicker European capital markets (FT).
Doc in a Box
The first review of the pilot for AI prescriptions refills in Utah is out and it looks very reasonable. In the 72% of cases where the AI recommend a refill at least one of two physicians agreed in 97% of cases.
In the 28% of Cases Where the AI Escalated to a Physician Without Recommending Renewal
o When the AI declined to recommend renewal without further information, a human telehealth appointment was arranged.
▪ For these patients, 69% of physician reviews agreed that the escalation was appropriate, and more information was needed to authorize a renewal.
▪ In the other 31% of cases, the physician determined the escalation was overly cautious.
● For a new system like this, overcaution is appropriate and welcome. In the long term, reducing overcaution without compromising safety would improve patient access to care, but we aren’t rushing to see that happen.
The founders of Doctronic, the firm running the AI doc, write:
The cost of compute drops roughly 10x every five years. At the same time, the demand for care continues to rise. An AI consultation that costs a few dollars today will cost pennies in a few years. So if AI can safely handle even a fraction of care, we’ve turned an unsolvable supply problem into an engineering problem. And engineering problems have solutions.
My excellent Conversation with Toby Wilkinson
Here is the audio, video, and transcript. Most of all, we cover Ptolemaic Egypt. Here is part of the episode summary:
Tyler and Toby cover how Alexander took over the empire almost without a fight, why Alexandria became the Manhattan of the ancient world, whether the era was as philosophically fertile as it was scientifically, whether your ancient doctor’s visit had positive expected value, what Egypt was actually exporting and selling, whether living standards rose above subsistence or stayed Malthusian, how the ethnic divide between Greek rulers and Egyptian subjects shaped society, what constrained the Ptolemaic Empire from becoming the next Rome, whether Cleopatra has been overhyped, what Julius Caesar was really thinking when he sided with her over her brother, the new frontiers in archeology, whether Herodotus can be trusted, what ancient Egypt knew about Israel and India, when Egyptian jewelry peaked and why, what triggered the sudden emergence of civilization across the ancient world, why a six-year-old Tyler knew King Tut better than Napoleon, and much more.
Excerpt:
COWEN: Either technologically or institutionally, what is it that the Persians had that the Egyptians did not?
WILKINSON: The Persians had a pretty formidable army. Their military technology was certainly superior to the Egyptians at the time that they conquered Egypt originally in the 6th century BC. Like many empires, I suppose, throughout history, they overreached themselves. They overextended themselves, and they found it increasingly hard to hold together this empire stretching all the way from the Aegean to the borders of India. Bits of the empire started to fragment and pull away. Egypt had always had this very strong sense of its own identity. When it had a chance to throw off the Persian yoke, it took it.
COWEN: Let’s think about some of the achievements of Ptolemaic Egypt as an era. Infrastructure. What did they do that was most impressive?
WILKINSON: Build Alexandria. Alexandria the city was a new foundation established by Alexander the Great to bear his name. Unlike all previous ancient Egyptian cities, it was a city built from the outset for commerce. It was a city built on the Mediterranean coast with a great natural harbor, with facilities for loading and offloading ships. It had a great lighthouse guarding the entrance to its harbor, which became one of the wonders of the world. The whole city was really designed from the get-go as a great commercial center looking outwards to the Mediterranean, rather than inwards to the rest of Egypt.
COWEN: Canals, artificial lake. What else did they do?
WILKINSON: They built a city quite unlike anything previously seen in the valley of the river Nile. In fact, any inhabitant today of a modern city would recognize the grid iron pattern of streets. Streets intersecting at right angles, that was something completely unheard of until this point in Egypt with vast public buildings. This was the Manhattan of the ancient world, if you like, in scale, in grandeur, and in the level of commercial activity.
And:
EN: What were the main exports of the Alexandria region? What are they selling, making?
WILKINSON: Oh, the two big exports that account for the lion’s share of Egypt’s wealth at the time are gold and grain. Gold has been mined in Egypt for millennia up to this point, but it’s still the place in the ancient world that produces large quantities of gold. Of course, gold has always been a great currency of international commerce.
Then Egypt is famed as the breadbasket of the ancient world. It produces a superabundance of grain thanks to the fertility of the Nile and the benign climate. It produces more than it needed for its own consumption, by comparison with poorer agricultural regions in Greece and Asia Minor, which struggled to produce enough food. Yes, gold and grain were the absolute engine of Egyptian prosperity.
COWEN: There’s metalwork, there’s glass. What else is there, manufacturing, as we would call it today?
WILKINSON: Oh, yes. There’s a big ceramics industry, so producing not just pots, but terracotta statues and votive objects. There’s glassmaking, as you’ve said. There’s advanced metallurgy, goldsmithing, ironworking, copper and bronze foundries. There’s what we might call the decorative arts, so sculpture, painting. All of these things thrived in ancient Alexandria.
COWEN: Do they have living standards sustainably above subsistence, or is this a Malthusian equilibrium, where they get some wealth and then more people survive and the wage falls again, and it doesn’t get much above what is required to keep people alive?
Recommended, informative and interesting throughout. And I am very happy to recommend all of Toby’s books, including his latest
What should I ask Richard Hanania?
Yes, I will be doing a Conversation with him. Richard does have a new book coming out, Kakistocracy: Why Populism Ends in Disaster. While I liked the book (and blurbed it), I do not feel our conversation about the book would be that interesting — too much beating up on the stupidities of other people, which is an activity not in short supply. So we agreed to (mostly) discuss Joseph Conrad’s Nostromo instead. Given that, what should I ask Richard?
Wednesday assorted links
1. As meat prices rise, the economics of Texas barbecue.
2. Economic historian Eric Jones has passed away.
3. Claims about the Pope and Claude. If true, further evidence for my Straussian hypothesis.
4. Koyama reviews Tyler Goodspeed on business cycles.
5. “Chinese battery manufacturer Calb has broken ground on a €2 Billion gigafactory in southern Portugal which is expected to represent more than 4% of the country’s GDP when in full swing.” Link here.
Can liberals be pacifists?
This is mostly a podcast about Benjamin Britten, and in particular his War Requiem, with Rebecca Lowe (former singer and conductor, in addition to philosopher and also her current role at Mercatus).
Here is the YouTube, here is the transcript and further listening links. Excerpt:
LOWE: Yeah, so we should think about what it means for a conscientious objector to have written this work, which is supposed, in some sense, to maybe pay tribute to the soldiers. Maybe, in some sense, it’s supposed to play some role in the British response to the war. At a time when, of course, conscientious objectors had been seen as maybe betraying the nation. There are very interesting, tense questions about the choice of Britten to compose this work.
COWEN: And Benjamin Britten himself, he described the work as a reparation.
LOWE: Yes.
COWEN: Paid to the dead soldiers.
LOWE: That’s right.
COWEN: I think in some ways, he always had World War I more in mind than World War II. But other parties involved, of course, didn’t see it that way.
LOWE: That’s true.
COWEN: But Wilfred Owen was a World War I poet. And that was the formative experience for him, was World War I. And also, the Spanish Civil War influenced him greatly. So, he wanted to do this work, and I’m not sure he ever found a way to make it succeed with World War II. That, to me, is one of the drawbacks of the work.
Definitely recommended, it is fresh material throughout. Can you find a better podcast on Britten and his War Requiem, arguably his greatest work? And here is the Rebecca Lowe Substack and podcast more generally.
Tuesday assorted links
1. How did the United States bend the health care cost curve?
2. Why are you reading fewer books?
3. Dean Ball on the Papal encyclical. My interpretation is a little different, and I suppose more Straussian. The Pope is basically telling us that AI is here to stay. If the detailed analysis seems thin to you, there is no need to distract from that more important and more essential message. That the Pope presented this with Anthropic, and for that matter quoted Tolkien/Gandalf, and allowed the use of em dashes, does not harm my interpretation. And here is what Perplexity thought I would say.
5. A one-time treatment for bad cholesterol? (NYT) And a Twitter thread.