Could China Have Gone Christian?

The Taiping Rebellion is arguably the most important event in modern history that even educated Westerners know very little about. It’s also known as the Taiping Civil War and it was one of the largest conflicts in human history (1850–1864), with death toll estimates ranging from 20 to 30 million, far exceeding deaths in the US civil war (~750,000) with which it overlapped.  The civil war destabilized Qing China, weakening it against foreign powers and shaped the trajectory of 19th- and 20th-century Chinese politics. In China the Taiping Civil War is considered the defining event of the 19th-century.

The most surprising aspect of the civil war is that the rebels were Christian. The rebellion has its genesis in 1837 with the dramatic visions of Hong Xiuquan. In his visions, Hong and his elder brother traveled the world slaying demons, guided onwards by an old man who berated Confucius for failing to teach proper doctrines to the Chinese people. (I draw here on Steven Platt’s excellent Autumn in the Heavenly Kingdom). It is perhaps not coincidental that Hong began experiencing his visions after failing the infamously stressful Chinese civil service exams for the third time. It wasn’t until 1843, however, after he failed the exams for the fourth time, that he had an epiphany. A Christian tract that he had never read before suddenly unlocked the meaning of his visions–the elder brother was Jesus Christ, making Hong the second son of the old man, God.

With his visions unlocked, Hong threw himself into learning and then teaching the Gospels. He quickly converted his cousin and a neighbor and they baptized themselves and began taking down icons of Confucianism at their local school. Confucianism, of course, underpinned the exam system that Hong had grown to hate (Recall, that a similar pattern is visible in India today, where mass exams generate large numbers of educated but frustrated youth).

The wild visions of a lowly scholar wouldn’t seem to have the makings of a revolutionary movement but this was the beginning of the century of humiliation when China was forced to confront the idea that far from being the center of civilization it was in fact a backward and weak power on the world stage. Moreover, China was governed by foreigners, the Manchus, who despite ruling for 200 years had never really integrated with the Chinese population. Hence, Hong’s calls to kill the demons merged with a nationalist fervor to massacre the Manchus. Hong proclaimed himself the Heavenly King and his movement quickly grew to more than a million zealous warriors who captured significant territory including establishing the Taiping Heavenly Kingdom with its capital at Nanjing.

The regime banned foot‑binding, prostitution and slavery, promoted the equality of men and women, distributed bibles, and instituted a 7-day week with strict observance of the sabbath. To be sure, this was a Sinicized, millenarian Christianity, more Old Testament than new but the Christianity was serious and real and the rebels appealed to British and Americans as their Christian brothers. One Taiping commander wrote to a British counterpart:

You and I are both sons of the Heavenly Father, God, and are both younger brothers of the Heavenly Elder Brother, Jesus. Our feelings towards each other are like those of brothers, and our friendship is as intimate as that of two brothers of the same parentage. (quoted in Platt p.40)

Now, as it happened, the Heavenly Kingdom fell to the Qing, but it was a close thing and could easily have gone the other way. Western powers—above all Britain, but also the United States—hedged their bets and at times fought both sides, yet for short-sighted reasons ultimately tilted toward the Qing, an intervention Ito Hirobumi later called “the most significant mistake the British ever made in China.” Internal purges fractured the movement, alliances went unmade, and crucial opportunities slipped away. Yet the moment was pregnant with possibility. Hong Rengan, Hong Xiuquan’s cousin and prime minister from 1859, pushed sweeping modernization: railroads, steamships, postal services, banks, and even democratic reforms. These initiatives would likely have brought what one might call Christianity with Chinese Characteristics into closer alignment with Western Christianity.

Indeed, it is entirely plausible that with only a few turns of history, China might now be the world’s most populous Christian nation. And if that seems hard to believe, consider what did happen. Sixty three years after the fall of Nanjing in 1864, China again erupted into civil war under Mao Zedong. This time the rebels triumphed, and instead of a Christian Heavenly Kingdom the world got a Communist People’s Republic. The parallels are striking: both Hong and Mao led vast zealous movements that promised equality, smashed tradition, and enthroned a single man as the embodiment of truth. Both drew on foreign creeds—Hong from Protestant Christianity, Mao from Marxism-Leninism. Both movement had excesses but of the counter-factual and the factual I have little doubt which promised more ruin. The Heavenly Kingdom pointed toward a biblical moral order aligned with the West, the People’s Republic toward a creed that delivered famine, purges, and economic stagnation. Such are the contingencies of history—an ill-timed purge in Nanjing, a foreign gunboat at Shanghai, a missed alliance with the Nian. Small events cascaded into vast consequences. For the want of a nail, the Heavenly Kingdom was lost, and with it perhaps an entirely different modern world.

Policy uncertainty matters right now

More than half of Fourth District business contacts said that “uncertainty and the potential impact on demand” was the most important factor influencing their capital expenditure plans for the rest of 2025. Contacts most often reported that their inventory levels were the same as they were one year ago, though more firms reported lower inventory levels than higher ones. More than half of firms anticipated that they would work through their current inventories in one to three months. Most survey respondents said that one-fourth or less of their current inventory had been subject to additional duties in 2025 because of changes to trade policy.

Here is more from the Cleveland Fed.

The polity that is Brazil

Yet perhaps the biggest reason spending is high is that the constitution requires it. The charter mandates an extraordinary 90% of all federal spending. Notably it ties most public pensions to wage growth, and requires health and education spending to rise in line with revenue growth. If Brazil were to end most tax exemptions and undo these two policies, its debt-to-gdp ratio, which is already above 90%, would be almost 20 percentage points lower by 2034 than it would be without any reform, reckons the IMF. To deal with all this, what is really needed is to amend the constitution.

High spending and a tangle of subsidised credit schemes also reduce the effectiveness of monetary policy. That means the central bank must increase rates even higher to control inflation. Brazil’s real interest rate of 10% is among the highest in the world. Such rates cripple investment and drag down growth, while well-connected businessmen can get their hands on artificially cheap rates.

Among those who must pay the full rate is the government itself.

And:

Tax exemptions total 7% of gdp, up from 2% in 2003 (see chart 2). Dozens of sectors receive tax breaks or credit subsidies on the basis that they are national champions, or from “temporary” help that has never ended. Brazil’s courts cost 1.3% of gdp, making them the second-most expensive in the world, with much of that going on cushy pensions and perks. Some $15bn a year, or 78% of the military budget, is spent on pensions and salaries. The United States spends just one-quarter of the defence budget on personnel.

Here is more from The Economist.

What determines business school faculty pay?

We examine the determinants of business school faculty pay, using detailed data on compensation, research, teaching, and administrative service. We estimate that a top-tier journal publication is worth $116,000, with significant variation across disciplines. Second-tier publications are worth one-third as much, and other publications have no impact. Further analysis of salaries and cross-discipline publication records suggests that researchers are compensated based on the journals they publish in rather than the departments they belong to. Conference presentations and teaching evaluations have significant but smaller effects than top-tier publications. Faculty administrators earn a premium, with department chairs receiving 11-35% and deans 58-94%. Post-Covid-19, real faculty pay has fallen more than in comparable fields and the sensitivity of pay to research performance has weakened.

That is from a new paper by Michelle Lowry, Daniel Bradley, April M. Knill, and Jared Williams.  Via Arpit Gupta.

I podcast with Jacob Watson-Howland

He is a young and very smart British photographer.  He sent me this:

Links to the episode:

Youtube: https://youtu.be/4nMg0Qg7KRI

Spotify: https://open.spotify.com/episode/2wDyCaXhGN5ruN1SNkcaBt?si=3c054eb0396f4787

Apple: https://podcasts.apple.com/gb/podcast/watson-howland/id1813625992?i=1000724051310

Jacob’s episode summary is at the first link.

What are the markets telling us?

That is the topic of my latest piece for The Free Press, as after all stock valuations are high.  Excerpt:

First, the One Big Beautiful Bill Act, passed earlier this year, slashed corporate taxes. Before Trump’s first term, the corporate tax rate was 35 percent; in his first term Trump cut it to 21 percent, and this year he and the Republican Congress extended aspects of that first-term tax bill. Factors such as 100 percent bonus depreciation and expanded interest deductions give many companies the ability to lower their tax bill further, though not in a way that can be expressed readily by any single number.

With these lower tax burdens, companies should be worth much more. At the same time, the American taxpayer now owes more than $37 trillion in debt. So someone has to pay higher taxes over time, to satisfy those obligations. That someone probably is you, so you might want to take that into account in your overall assessment. But you should feel good about the companies, and somewhat less good about yourself and your children, given the tax hikes in the offing, sooner or later. You are paying for some of those higher stock market values.

Plus the ten or so percent decline in the value of the dollar can be seen as a loss of confidence in the United States, for a bunch of the obvious reasons.  But will the country fall apart?  Probably not:

That said, some of the worries are exaggerated. I’ve seen lots of posts on X lately saying that Trump is destroying the independence of the Federal Reserve system, and that this change will bring much higher rates of price inflation. Maybe. But that is not what the markets are saying. There are different measures of expected inflation, and most stand between 2 and 3 percent, with some of the more important market measures clustered near 2.5 percent. You might think that is higher than it should be, but it is hardly a sign of pending hyperinflation. It’s also not different from how things were toward the close of Joe Biden’s term.

And this:

Finally, are you worried about fascism coming to America? The collapse of democracy? Did you read about the Trump critics Jason Stanley, Timothy Snyder, and Marci Shore moving from America to Canada?

Well, head on over to the prediction markets—for instance, Kalshi. Currently the Democrats are favored at 53 percent to win the next presidential election. In other words, it costs 53 cents to buy a security that pays off a dollar if the Democrats win. In turn, that means the market thinks the Democrats have a very slight advantage in 2028. Does that sound like the collapse of democracy to you?

I return here to the same logic: If you think the market is being naive and foolish, why aren’t you placing your bets in the opposite direction? At the very least you could be wealthier under the forthcoming fascism you predict, and you might even be able to donate your winnings to antifascist causes.

Comments that fail to understand the distinction between optimal ex ante prediction and ex post outcomes should be shamed!

Inside India’s endless trials

The FT’s Krishn Kaushik covers the courts in India:

…in one recent example a Delhi court concluded a property dispute after 66 years. Both the original litigants were dead. Still, the lawyer for one of the warring parties cautioned that the conclusion was in fact not the end, as the ruling would be appealed.

Three years ago, after pondering a dispute for 16 years, the supreme court sent back a 60-year-old land case for fresh adjudication to a lower court, which had already taken over 30 years to give its judgment in 2006.

A 2021 study [excellent study, AT] of Mumbai real estate found that more than a quarter of the projects under planning or construction and 43 per cent of all “built-up spaces” in the city were under some litigation. My apartment block was one of them.

…One of the reasons for this accumulation is human resources. India has around 16 judges per million people, compared to over 150 for the US. In 2016, the issue brought the country’s chief justice, TS Thakur, to tears during a speech as he requested that the government hire more judges to wade through the “avalanche” of backlog.

Reminds me of one of my favorite MR posts, A Twisted Tale of Rent Control in the Maximum City.

The school without WiFi

Until recently, a nearby radio telescope meant the local school could not use WiFi.  And how did that go?

In many ways, Green Bank was an unintentional experiment in pedagogy. While the rest of the country rushed to bring tech into classrooms, Green Bank remained stuck in 1999. Without WiFi, the school’s 200 students couldn’t use Chromebooks or digital textbooks, or do research online. Teachers couldn’t access individualized education programs online or use Google Docs for staff meetings. Even routine tasks such as state-mandated standardized testing became challenging, with students rotating through a small, hardwired computer lab where they took the exams.

“The ability to individualize learning with an iPad or a laptop — that’s basically impossible,” said teacher Darla Huddle, who previously taught in Pennsylvania. The school uses the Eureka Math curriculum, which also has a large digital platform with interactive videos and customizable instruction, but those add-ons aren’t available in Green Bank’s classrooms.

“Without the online component of our curriculum fully working, it’s really detrimental to our instruction,” said teacher Sarah Brown, who has worked in schools in North Carolina. “It feels very antiquated because the technology that we’re using is so out of date.”

Proposals had been floated over the years for the school to get WiFi without interfering with the observatory. One idea was to install LiFi, which emits low-range WiFi through lightbulbs, but the technology was finicky and expensive. Another thought was to pile an enormous dirt mound behind the school to prevent the WiFi from radiating toward the telescopes, but that would have destroyed the soccer fields.

While those discussions dragged on, students fell further behind in math and reading, with Green Bank consistently posting the lowest test scores in the county. “Our kids are no different than the other kids in the county,” said Principal Melissa Jordan. “The only difference, in my opinion, is their lack of access to engaging technology.”

Here is the full WaPo story, via the excellent Kevin Lewis.

*How to be a Public Ambassador for Science*

The subtitle is The Scientist as Public Intellectual, and the author is my very good friend Jim Olds, who works at George Mason University.  A very timely topic, here is one excerpt:

I was only about eight weeks into my new job.  I’d been sworn in and found myself very much thrown into the pool’s deep end.  First, the job was much more than serving as the National Science Foundation’s (NSF) lead for President Obama’s Brain Research through Advancing Innovative Neurotechnologies (BRAIN) project.  Second, the learning curve was very steep.  There were meetings full of acronyms that meant nothing to me.  And these were my meetings — with my direct reports.  I had learned the hard way that the Eisenhower Conference Center in the White House complex was made of steel and acted like a Faraday cage: cell phones didn’t work there.  Tuesdays started with breakfast at 7:30 a.m. and went straight through for 12 hours with meeting after meeting.

Recommended, most of all informative about the NSF and also neuroscience.