*The Monastic World*
The author is Andrew Jotischky, and the subtitle is A 1,200-Year History. He writes very well and also can think in terms of organizations. Excerpt:
As such, monasteries were complex institutions. The demands of property ownership included systems for collection and receipt of rents, and thus methods of accountancy and management of finances and human resources. But even the fulfilment of their spiritual functions of communal worship required internal systems and management. The correct performance of the liturgy required training in chant and sacramental theology. It also required service books and specific sacred objects for celebration of the eucharist. In order to fulfil the expectation of constant prayer and praise, the liturgical offices were spread across day and night, which in turn meant that light — from candles or oil, depending on the region — was needed for several hours. All of these items had to be produced or procured. Monasteries thus needed supplies ranging from bread to wine to wax and parchment, and the technical know-how to process these. Moreover, the schools that monasteries developed to train their own monks also provided opportunities for a largely non-literate society to educate their young.
An excellent book, Yale University Press, and currently priced below $15 in hardcover.
Greater Bias Toward Transgender People Compared to Gay Men and Lesbian Women Is WEIRD
The greater acceptance of gay, compared with transgender, people in Western countries may be a result of a specific trajectory—where queer rights was centered by and around White, middle class, gender-conforming gay men—and may not generalize to other places. Two surveys of respondents in 23 countries (Ns∼ = 500 or 1,000 per country) showed that bias toward gay and transgender people is lower in Western (vs. non-Western) countries, but that the relative bias changes as a function of region: there is greater acceptance of gay (vs. transgender) people in most Western countries, whereas the reverse is true in most non-Western countries. Analyses of legal frameworks (N = 193) show that recognition of same-gender unions is prevalent in Western countries but virtually nonexistent elsewhere, whereas recognition of gender marker changes is prevalent throughout the world. Overall, in the most intolerant places, transgender people are relatively more accepted than gay people.
Here is the recent article by Jaimi L. Napier. Via a loyal MR reader.
Saturday assorted links
1. Ludwig Mises papers collection, now online.
2. FAA academy pay to increase thirty percent.
3. “The average South African woman weighs more than the average South African man.”
4. What Dean Ball wants to write about.
5. First new class of antibiotics in thirty years?
6. Singapore Michigan UP fact of the day. And fine that it is legal!
Blame Canada! Measles Edition
Polimath has a good post on measles. The recent spike in U.S. cases has drawn alarm. As the New York Times reports:
There have now been more measles cases in 2025 than in any other year since the contagious virus was declared eliminated in the United States in 2000, according to new data released Wednesday by the Centers for Disease Control and Prevention.
The grim milestone represents an alarming setback for the country’s public health and heightens concerns that if childhood vaccination rates do not improve, deadly outbreaks of measles — once considered a disease of the past — will become the new normal.
But as Polimath notes, U.S. vaccination rates remain above 90% nationally. The problem isn’t broad domestic anti-vax sentiment but rather concentrated gaps in coverage, often within insular religious communities. These local shortfalls do explain how outbreaks spread once they begin—but how do they begin in the first place, given these communities are islands within a largely vaccinated country? Polimath says blame Canada! (and Mexico!)
The greater concern in my mind is not the problem of low measles vaccination coverage in the United States, but among our immediate neighbors. In Ontario, the MMR vaccination rate among 7-year-olds is under 70%. As in the examples above, this rate seems to be particularly low “in specific communities”, whatever that is supposed to mean. This has resulted in the ongoing spread of measles such that Ontario’s measles infection rate is 40 times higher than the United States. Canada officially “eliminated” measles in 1998. But with vaccine rates as low as they are, it seems like Canada is at risk for losing that “elimination” status and becoming an international source for measles.
Similarly, Mexico is having a measles outbreak that is substantially worse than the US outbreak. Importantly, the Mexican outbreak has been the worst in the Chihuahua province (over 3,000 cases), which borders Texas and New Mexico.
I’m less interested in blame than in the useful reminder that not all politics is American politics. Vaccination rates have dipped worldwide and not in response to U.S. politics or RFK Jr. In fact, despite RFK Jr. the U.S. is doing better than some of its North American and European peers. Outbreaks here may be triggered by cross-border exposure, not failures in U.S. public health alone. Not all politics is American—and not all American outcomes are made in America.
Hat tip: the excellent Stephen Landry.
Kimimania?
kimi.com, from China.
Technology Transfer and Development Economics
Polymarket on the next Fed chair
Scott Bessent, Kevin Warsh, and Kevin Hassett are the clear leaders, in that order.
A Unifying Framework for Robust and Efficient Inference with Unstructured Data
This paper presents a general framework for conducting efficient inference on parameters derived from unstructured data, which include text, images, audio, and video. Economists have long used unstructured data by first extracting low-dimensional structured features (e.g., the topic or sentiment of a text), since the raw data are too high-dimensional and uninterpretable to include directly in empirical analyses. The rise of deep neural networks has accelerated this practice by greatly reducing the costs of extracting structured data at scale, but neural networks do not make generically unbiased predictions. This potentially propagates bias to the downstream estimators that incorporate imputed structured data, and the availability of different off-the-shelf neural networks with different biases moreover raises p-hacking concerns. To address these challenges, we reframe inference with unstructured data as a problem of missing structured data, where structured variables are imputed from high-dimensional unstructured inputs. This perspective allows us to apply classic results from semiparametric inference, leading to estimators that are valid, efficient, and robust. We formalize this approach with MAR-S, a framework that unifies and extends existing methods for debiased inference using machine learning predictions, connecting them to familiar problems such as causal inference. Within this framework, we develop robust and efficient estimators for both descriptive and causal estimands and address challenges like inference with aggregated and transformed missing structured data-a common scenario that is not covered by existing work. These methods-and the accompanying implementation package-provide economists with accessible tools for constructing unbiased estimators using unstructured data in a wide range of applications, as we demonstrate by re-analyzing several influential studies.
That is from a recent paper by Jacob Carlson and Melissa Dell. Via Kevin Bryan.
Surveillance is growing
California residents who launched fireworks for the 4th of July have tickets coming in the mail, thanks to police drones that were taking note. One resident, for example, racked up $100,000 in fines last summer due to the illegal use of fireworks. “If you think you got away with it, you probably didn’t,” said Sacramento Fire Department Captain Justin Sylvia. “What may have been a $1,000 fine for one occurrence last year could now be $30,000 because you lit off so many.” Homeowners who weren’t even present at the property also have tickets coming in the mail due to the social host ordinance.
Here is the source. Elsewhere (NYT):
Hertz and other agencies are increasingly relying on scanners that use high-res imaging and A.I. to flag even tiny blemishes, and customers aren’t happy…
Developed by a company called UVeye, the scanning system works by capturing thousands of high-resolution images from all angles as a vehicle passes through a rental lot’s gates at pickup and return. A.I. then compares those images and flags any discrepancies.
The system automatically creates and sends damage reports, Ms. Spencer said. An employee reviews the report only if a customer flags an issue after receiving the bill. She added that fewer than 3 percent of vehicles scanned by the A.I. system show any billable damage.
I await the next installment in this series.
Friday assorted links
The Sputnik vs. DeepSeek Moment: Why the Difference?
In 1957, the Soviet Union launched Sputnik triggering a national reckoning in the United States. Americans questioned the strength of their education system, scientific capabilities, industrial base—even their national character. The country’s self-image as a global leader was shaken, creating the Sputnik moment.
The response was swift and ambitious. NSF funding tripled in a year and increased by a factor of more than ten by the end of the decade. The National Defense Education Act overhauled universities and created new student loan programs for foreign language students and engineers. High schools redesigned curricula around the “new math.” Homework doubled. NASA and ARPA (later DARPA) were created in 1958. NASA’s budget rocketed upwards to nearly 5% of all federal spending and R&D spending overall increased to well over 10% of federal spending. Immigration rules were liberalized (perhaps not in direct response to Sputnik but as part of the ethos of the time). Foreign talent was attracted. Tariff barriers continued to fall and the US engaged with international organizations and promoted globalization..
The U.S. answered Sputnik with bold competition not an aggrieved whine that America had been ripped off and abused.
America’s response to rising scientific competition from China—symbolized by DeepSeek’s R1 matching OpenAI’s o1—has been very different. The DeepSeek Moment has been met not with resolve and competition but with anxiety and retreat.
Trump has proposed slashing the NIH budget by nearly 40% and NSF by 56%. The universities have been attacked, creating chaos for scientific funding. International collaboration is being strangled by red tape. Foreign scientists are leaving or staying away. Tariffs have hit highs not seen since the Great Depression and the US has moved away from the international order.
Some of this is new and some of it is an acceleration of already existing trends. In Launching the Innovation Renaissance, for example, I said that by the Federal budget numbers, America is a warfare-welfare state not an innovation state. However, to be fair, there are some bright spots. Market‑driven research might partially offset public cuts. Big‑tech R&D now exceeds $200 billion annually—more than the entire federal government spending on R&D. Not everything we did post-Sputnik was wise nor is everything we are doing today foolish.
Nevertheless, the contrast is stark: Sputnik spurred investment and ambition. America doubled down. DeepSeek has sparked defensiveness and retreat. We appear to be folding.
Question of the hour. Why has America responded so differently to similar challenges? Can understanding that pivot help to reverse it? Show your work.
The revival of socialism is an example of negative emotional contagion
That is the theme of my latest Free Press column. Rather than present the argument again, let me move directly to the trolling part of the piece:
Even the Soviet Union had some positive and forward-looking elements to its socialist doctrine. The stated goal was to overtake the United States, not “degrowth.” You were supposed to have kids to support the glory of communism, not give up on the idea because the world was too dreadful. Socialist labor was supposed to be fun and rewarding, not something to whine about. Furthermore, there were top performers in every category, including in the schools. Moscow State University was a self-consciously elite institution that intended to remain as such. However skewed the standards may have been, there was an intense desire to measure the best and (sometimes) reward them with foreign travel, as in chess and pianism. In an often distorted and unfair way, some parts of the Soviet system respected the notion of progress. For all the horrors of Soviet communism, at least along a few dimensions it had better ideals than some of those from today, including the undesirability of having children, and a dislike of economic growth.
There is much more at the link.
What does one hundred percent reserves for stablecoins mean?
I asked o3 pro about the Genius Act, and it gave me this answer (there is more at the link), consistent with other responses I have heard:
The statute’s policy goal is to keep a payment‑stablecoin issuer from morphing into a fractional‑reserve bank or a trading house while still giving it enough freedom to:
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hold the specified reserve assets and manage their maturities;
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use overnight Treasuries repo markets for cash management (explicitly allowed);
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provide custody of customers’ coins or private keys.
Everything else—consumer lending, merchant acquiring, market‑making, proprietary trading, staking, you name it—would require prior approval and would be subject to additional capital/liquidity rules.
Recall also that the stablecoins are by law prohibited from paying interest, though the backing assets, such as T-Bills, will pay interest to the stablecoin issuer. Thus when nominal interest rates are high, the issuer will earn a decent spread and have no problem covering costs. When nominal interest rates are low or zero, fees on stablecoin issuance might be required, otherwise there is no way to cover the basic costs of operation.
What will be the costs of intermediation? In the financial sector as a whole, they are arguably about two percent. For money market funds, however, they are closer to 0.2 percent. (Since these entities will be strictly regulated, we cannot estimate fees by looking at current major stablecoin issuers. Across some different inquiries, o3 pro gave me intermediation cost estimates ranging from 0.8 percent to 3 percent.) Whatever number will be the case here, the intermediaries may need to resort to fees if market interest rates are very low, in order to break even. That may in turn induce individuals to yank money out of the accounts — who wants to keep paying those fees?
Perhaps a more likely problem would stem from interest rates that are fairly high. In that case, why hold zero-yielding stablecoins? The sector will again contract, though in an orderly fashion.
Perhaps the sector and its intermediaries are most stable for some band of interest rates “in the middle”?
Inspections of the backing assets are supposed to take place every month, though the regulator can take a look any time. I am not sure what is the optimal frequency. But I worry there is sometimes no “efficiency wage profit margin” to induce responsible behavior. After all, the issuers have no other lines of business and no other sources of revenue. Non-pecuniary competition for deposits might reduce profits further (“come get your free toaster!”). Thus being kicked out of the sector is no major penalty (for those parameter values), which puts a significant burden on the possibility of legal and felony punishments. It can be hard to pull the trigger on those, however.
If interest rates are somewhat higher though, the desire to keep that profit will create an economic incentive for responsible behavior, above and beyond the fear of legal penalties.
As I understand the legislation, the level of interest rates seems important for sector stability and also for the size of the sector. That is because there are no interest payments on stablecoins that can adjust with the underlying rates on the T-Bills. Perhaps that feature of the legislation should be reconsidered? Or perhaps issuer competition across non-pecuniary yields on the accounts will serve a sufficiently comparable purpose?
Grok 4 on economics
My prompt:
What is the best analysis of the incidence of the corporate income tax? How much falls on capital, labor, and the consumer, respectively? In the U.S. What does it work out that way?
Here is the answer, plus my response and its follow-up. For one thing, it is the existence of the non-corporate sector, where capital may be allocated, that is key to getting off on the right foot on this question…
Thursday assorted links
1. Brazil and China sign agreement for Atlantic to Pacific railway (Spanish).
2. After age forty, feelings of career autonomy tend to decline. Not necessarily with justification.
3. The Abundance and Growth Fund at Open Philanthropy is hiring.
5. Youngkin’s deregulatory results.
7. Anthropic economic futures program, also involves research grants.