Friday assorted links

1. The excellent Ben Westhoff on Joe Rogan.

2. A Canadian pro experiences the world and management system of Russian hockey.

3. The Cato study on wealth inequality.  And why did the UK Labour government abandon the wealth tax idea in the 1970s?

4. Kocherlakota argued in Econometrica that optimal wealth taxes should be zero on average.

5. David McCabe at NYT: “The debate can take on a heated and personal tone. At a conference this spring, the soft-spoken legal academic Tim Wu responded to doubts raised by Tyler Cowen, an economist, about whether America has dangerous levels of corporate concentration by saying it was like arguing with someone who believes the earth is flat.”

6. “An inmate claimed his life sentence ended when he died and was revived.

7. Megan McArdle on the historical importance of the Church.

Model this dopamine fast

“We’re addicted to dopamine,” said James Sinka, who of the three fellows is the most exuberant about their new practice. “And because we’re getting so much of it all the time, we end up just wanting more and more, so activities that used to be pleasurable now aren’t. Frequent stimulation of dopamine gets the brain’s baseline higher.”

There is a growing dopamine-avoidance community in town and the concept has quickly captivated the media.

Dr. Cameron Sepah is a start-up investor, professor at UCSF Medical School and dopamine faster. He uses the fasting as a technique in clinical practice with his clients, especially, he said, tech workers and venture capitalists.

The name — dopamine fasting — is a bit of a misnomer. It’s more of a stimulation fast. But the name works well enough, Dr. Sepah said.

The purpose is so that subsequent pleasures are all the more potent and meaningful.

“Any kind of fasting exists on a spectrum,” Mr. Sinka said as he slowly moved through sun salutations, careful not to get his heart racing too much, already worried he was talking too much that morning.

Here is more from Nellie Bowles at the NYT.

Did the medieval church make us WEIRD?

A growing body of research suggests that populations around the globe vary substantially along several important psychological dimensions and that populations characterized as Western, Educated, Industrialized, Rich, and Democratic (WEIRD) are particularly unusual. People from these societies tend to be more individualistic, independent, and impersonally prosocial (e.g., trusting of strangers) while revealing less conformity and in-group loyalty. Although these patterns are now well documented, few efforts have sought to explain them. Here, we propose that the Western Church (i.e., the branch of Christianity that evolved into the Roman Catholic Church) transformed European kinship structures during the Middle Ages and that this transformation was a key factor behind a shift towards a WEIRDer psychology.

That is a new piece in Science by Jonathan F. Schulz, Duman Bahrani-Rad, Jonathan P. Beauchamp, and Joe Henrich, try this link tooThis one works for sure.  Here is Harvard magazine coverage of the piece.  Here is a relevant Twitter thread.

The two Jonathan co-authors are new colleagues of mine at GMU economics, so I am especially excited this work is seeing the light of day in such a good venue.

“OK Boomer”

That is the topic of my latest Bloomberg column, how can I excerpt this one?:

On the negative side, I worry that those who deploy “OK Boomer” are putting themselves down and signaling their own impotence. I am not arguing for “[Expletive Deleted] Boomer,” even though it would have a vitality and rebellious spirit very much reminiscent of the 1960s or 1970s (which of course were quintessential boomer eras). But when I read or hear “OK Boomer,” I start to think there might be something special about baby boomers after all. We boomers may not be different in kind from other generations, but we do seem to inspire rhetorical creativity in our critics.

The closest earlier analog to “OK Boomer” is probably “OK, Chief,” a slightly sardonic response to a bossy or persistent request. So the phrase “OK Boomer” is itself an implicit and indeed somewhat passive admission as to who is really in charge. Members of Gen Z are subtly demonstrating that the clichés about them may have a grain of truth.

As I said I am a baby boomer, born in 1962, and I do a lot of public speaking about such topics as the absence of free lunches in this world. Yet I have never heard anyone say “OK Boomer” back to me. Instead I see the phrase on social media — another sign of the essentially passive nature of the response. (And wearing an “OK Boomer” hoodie or buying other such merchandise doesn’t seem like a major sign of rebellion, either.)

If there is any native medium for the “OK Boomer” meme, in fact, it is short TikTok videos, one of the more evanescent forms of social media. That the site seems plagued by Chinese censorship is just another state of affairs that boomers find more offensive than does Generation Z.

There is also this:

I am greatly pleased that the post-boomer generations are by all appearances less racist and sexist than their predecessors. Still, prejudices are part of human nature. There is always a danger that they will re-emerge, redirected at other targets — defined by their age, their political views, their wealth, the size of their carbon footprint, or some other salient variable. Prejudice doesn’t become acceptable simply because it is not directed at someone’s race, ethnicity or gender.

There is indeed much more at the link.  A better cause for young people would be to fight against the growing age segregation in American society.

Can an Artificial Intelligence Write A Good Blog Post?

A blog post by an artificial intelligence that has just been taught to write about an artificial intelligence is still far from being a good blog post by any human being.

There are many reasons why a blog post by an artificial intelligence is unlikely to be a good blog post by any human being.

First, the post is still a huge piece of written material, so it will be a big task for the AI to read it all. This is similar to reading a huge, long book, which is a huge task for you as an author.

Second, it is likely that the AI will use its knowledge about writing to create a very bad, misleading, or otherwise nonsensical blog post. In this case, the AI will be writing a blog post about its own stupidity.

Third, even if the blog post is not written by a computer but rather by a human author, the human author will not understand it and will not be able to correct it. This is because the blog post will include very basic, incorrect, or outdated knowledge about writing,

Consistency about elasticities, revisited

From Ross Rheingans-Yoo, the content is all his, I will not do a double indent:

  • If marginal wealth is taxed an additional 0.5%/yr at the high end, then fewer people will amass and invest that much wealth—some will instead disperse it among a wider number of family members, donate it to charitable or political causes, or spend it on expensive consumption. (Saez and Zucman, in their potential-revenue analyses, assume that this effect is quite small, and that the wealthy will mostly accept lower returns on wealth.)
  • Similarly, if the marginal opportunities to invest became worse by 0.5%/yr, fewer people would chose to invest, by the same token. Additionally,the effects should be the same size, as it’s the same decision-makers facing the same incentives!
  • But if pushing on the price (read: rate of return) has little effect on the quantity of investment, then pushing on the quantity of investment should have a large​ effect on the price! (Unless we’re at some magic kink in the supply curve for unspecified reasons…)
  • So a small amount of additional capital competing for investment opportunities should quickly reduce the competitive rate of return.

What’s the practical upshot? Well, if the authors’ assumptions about revenues are right, then Piketty’s r>gr>g “wealth spiral” can’t proceed unchecked, since capital simply can’t accumulate without competition quickly reducing the average rate of return back below gg.

Effort: The Unrecognized Contributor to US Income Inequality

That is a new paper by J. Rodrigo Fuentes and Edward E. Leamer:

This paper provides theory and evidence that worker effort has played an important role in the increase in income inequality in the United States between 1980 and 2016. The theory suggests that a worker needs to exert effort enough to pay the rental value of the physical and human capital, thus high effort and high pay for jobs operating expensive capital. With that as a foundation, we use data from the ACS surveys in 1980 and 2016 to estimate Mincer equations for six different education levels that explain wage incomes as a function of weekly hours worked and other worker features. One finding is a decline in annual income for high school graduates for all hours worked per week. We argue that the sharp decline in manufacturing jobs forces down wages of those with high school degrees who have precious few high-effort opportunities outside of manufacturing. Another finding is that incomes rose only for those with advanced degrees and with weekly hours in excess of 40. We attribute this to the natural talent needed to make a computer deliver exceptional value and to the relative ease with which long hours can be chosen when working over the Internet.

I like that last sentence in particular.

My Conversation with Ted Gioia

Here is the audio and transcript, the chat centered around music, including Ted’s new and fascinating book Music: A Subversive History.  We talk about music and tech, the Beatles, which songs and performers we are embarrassed to like, whether jazz still can be cool, Ted’s family background, why restaurants are noisier, why the blues are disappearing, Elton John, which countries are underrated for their musics, whether anyone loves the opera, whether musical innovation is still possible, and much much more.  Here are some excerpts:

GIOIA: …Spotify still isn’t profitable. I believe Spotify will become profitable, but they’re going to do it by putting the squeeze on people. Musicians will suffer even more, probably, in the future than they have in the past. What’s good for Spotify is not good for the whole music ecosystem.

Let me make one more point here. I think it’s very important. If you go back a few years ago, there was a value chain in music — started with the musician, worked for the record label. The records went to the record distributor. They went to the retailer, who sold the record to the consumer. At that point, everybody in that chain had a vested interest in a healthy music ecosystem in which people enjoyed songs. The more people enjoyed songs, the better business was for everybody.

That chain has been broken now. Apple would give away songs for free to sell devices. They don’t care about the viability of the music subeconomy. For them, it could be a loss leader. Google doesn’t care about music. They would give music away for free to sell ads. In fact, they do that on YouTube.

The fundamental change here is, you now have a distribution system for music in which some of the players do not have a vested interest in the broader musical experience and ecosystem. This is tremendously dangerous, and that’s the real reason why I fear the growth of streaming, is because the people involved in streaming don’t like music.


COWEN: Do you think music today is helping the sexual revolution or hurting it? Speaking of Prince…

GIOIA: It’s very interesting. There’s market research and focus groups about how people use music in their day-to-day life. Take, for example, this: you’re going to bring a date back to your apartment for a romantic dinner. So what do you worry about?

Well, the first thing I have to worry about is, my place is a mess. I’ve got to clean it up. That’s number one. The second thing you worry about is, what food am I going to fix? But number three on people’s list — when you interview them — is the music because they understand the music is going to seal the deal. If there’s going to be something really romantic, that music is essential.

People will agonize for hours over which music to play. I think that we miss this. People view music as distance from people’s everyday life. But in fact, people put music to work every day, and one of the premier ways they do it is in romance.

COWEN: Let’s say you were not married, and you’re 27 years old, and you’re having a date over. What music do you put on in 2019 under those conditions?

GIOIA: It’s got to always be Sinatra.

COWEN: Because that is sexier? It’s generally appealing? It’s not going to offend anyone? Why?

GIOIA: I must say up front, I am no expert on seduction, so you’re now getting me out of my main level of expertise. But I would think that if you were a seducer, you would want something that was romantic on the surface but very sexualized right below that, and no one was better at these multilayered interpretations of lyrics than Frank Sinatra.

I always call them the Derrida of pop singing because there was always the surface level and various levels that you could deconstruct. And if you are planning for that romantic date, hey, go for Frank.

There is much more at the link, interesting throughout, and again here is Ted’s new book.

Revisiting NSA Spying

In 2013 in light of the Snowden revelations about NSA spying I wrote, Did Obama Spy on Mitt Romney?

Did Obama spy on Mitt Romney? As recently as a few weeks ago if anyone had asked me that question I would have consigned them to a right (or left) wing loony bin. Today, the only loonies are those who think the question unreasonable. Indeed, in one sense the answer is clearly yes. Do I think Obama ordered the NSA to spy on Romney for political gain? No. Some people claim that President Obama didn’t even know about the full extent of NSA spying. Indeed, I imagine that President Obama was almost as surprised as the rest of us when he first discovered that we live in a mass surveillance state in which billions of emails, phone calls, facebook metadata and other data are being collected.

The answer is yes, however, if we mean did the NSA spy on political candidates like Mitt Romney. Did Mitt Romney ever speak with Angela Merkel, whose phone the NSA bugged, or any one of the dozens of her advisers that the NSA was also bugging? Did Romney exchange emails with Mexican President Felipe Calderon? Were any of Romney’s emails, photos, texts or other metadata hoovered up by the NSA’s break-in to the Google and Yahoo communications links? Almost certainly the answer is yes.

As I read the situation, mass government surveillance has now become accepted in America, as in China. This bit remains relevant:

Did the NSA use the information they gathered on Mitt Romney and other political candidates for political purposes? Probably not. Will the next president or the one after that be so virtuous so as to not use this kind of power? I have grave doubts. Men are not angels.

“And what a decade it was”

From Alex X.:

With the decade coming to a close, I would be curious on everyone’s favorite of the decade [gives list of categories]:

Without too much pondering, here is what comes to mind right away:

Film: Uncle Boonmee Who Can Recall His Past Lives, or A Touch of Sin.  Might Winter Sleep by next?  It was probably the best decade ever for foreign movies, the worst decade ever for Hollywood movies (NYT).

Blockbuster/action film: Transformers 4?  Big screen only, live or die by CGI!

Album: Kanye West, My Beautiful Dark Twisted Fantasy.

Single: I don’t see an obvious, non-derivative pick here that really stands out.  Kendrick Lamar’s “Alright” probably is the mainstream choice, but do I ever go over to the stereo to put it on?  Janelle Monae’s “Make Me Feel” is another option, but is it such a big step beyond Prince?  Lorde or Beyonce?  LCD Soundsystem seems more about the entire album, same for Frank Ocean.  Something from Kanye’s Yeezus?  To pull a dark horse option out of the hat, how about Gillian Welch, “The Way It Goes“?  Or Death Grips “Giving Bad People Good Ideas“?  I’ve spent enough time on Twitter that I have to opt for that one.

TV Show: Srugim, Borgen, The Americans.

Single Season: Selections from same, you know which seasons.

Book Fiction: The Ferrante quadrology and Houllebecq’s Submission.

Book Non Fiction: Knausgaard, volumes I and II.

Athlete of the Decade: Stephen Curry or Lebron James.

What are your picks?

Can we spend another $52 trillion without raising middle class taxes?

The question seems like a joke, right?  Yet because so much of our elite media class wants Elizabeth Warren to win, they are contorting themselves into every possible direction to make this one sound coherent.  It is not a question of whether total nominal expenditures on health care go up or down, but rather of thinking through incidence and opportunity cost and where the real burdens of the plan will fall.  Those are the core themes of my Bloomberg column, here is one excerpt:

Another part of the plan is to pay lower prices — 70% lower — for branded prescription drugs. That is supposed to save about $1.7 trillion, but again focus on which opportunities are lost. Lower drug prices will mean fewer new drugs are developed. There is good evidence that pharmaceuticals are among the most cost-effective ways of saving human lives, so the resulting higher mortality and illness might be especially severe.

And the close:

Warren’s proposals, when all is said and done, are best viewed not as a way of paying for her program but as a series of admissions about just how expensive it would be. Whether or not you call those taxes, they are very real burdens — and many of them will end up falling on the middle class.

By the way, here is a good NYT summary of Warren’s financing plan.  Here is a good Maxim Jacobs tweet:

It’s really hard to pick out which part of her plan is most insane?: – Lowering brand drug pricing by 70%? – CMS paying specialists less money – Taxing unrealized capital gains – Claim hiring more IRS agents will raise $2.3 trillion – “Not one penny in middle-class tax increases”

Here is more from Peter Suderman.