Category: Economics

Rise, Teleonomatons!

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My essay for the Berggruen Prize this year. Of course, the organization missed an opportunity to drop down a staggering rabbit hole and lean into a whole new regime of neologistic energetics, but I do like the prize-winning essays!

Rise, Teleonomatons

Meaning entanglements

I can’t figure out what some statements about science mean, though I have a fair background in a range of scientific areas. Now, I can peruse highly technical papers, browse abstracts, interpret graphs, study conclusions, and typically do just fine. The professional stuff is a procession of arid facts and assumes the reader knows the basic definitions for things. It’s the popular versions of scientific insights that befuddle me—especially the definitions that try mightily to bridge meanings for learners. So do introductory texts. Light is a wave? Not exactly. Atoms are particles? Well, not quite, but they are small. Electrons orbit the nucleus? No, really, no. A force is an influence tending to change the motion of a body? OK, but what is an influence? People are influenced, aren’t they? Or under the influence.

And then there are texts like those of existential philosophers that leave me completely befuddled. What is this “Being” that they write about and how did it get so enlarged in significance, capitalized, and shoehorned by the translator into incomprehensible juxtapositions with other bulbous words?

It may be low pedantry to expect clarity from words and writing. We generally just roll with it and use the terms according to conventions inferred from reading and learning. We rush over the imperfect metaphorical bridges, the analogies, the similes. For physics, definitions are bound to the equations and measurement properties that accompany the words of description, and they become a semantic pier that is constantly informing our relationship with the ideas.… Read the rest

A Myth for Fools and Children

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Like the Overton Window, the Economic Expectations Window is the range of acceptable ideas about economics. Here’s my answer to the question of what I would do about inflation if I had been debating with Trump and Biden:

Folks, these two clowns (and one is more clownish than the other…you be the judge) are not divulging the truth about inflation. Here it is: the best guess by economists about our recent spat of inflation is that it was caused by two factors. First, consumer patterns shifted during COVID and that put demand stress on certain areas of the economy. Money chased after home offices and accessory dwelling units, and it stopped flowing to travel and tourism and eating out. Second, the payments and benefits to people—payments that were needed to head off greater suffering and possibly an economic depression—enhanced the effect. You had more money and lots of time on your hands.

There is no Biden or Trump economy. It’s a myth for fools and children, at least insofar as neither of them does anything dumbly radical (ahem, crazy tariffs).

The primary tool our government uses to manage inflation is the independent Federal Reserve changing certain government interest rates and attempting to slow spending. They have a hard task—a difficult balance—because they don’t want to force the economy into a recession. Raised interest rates ripple out and also impact the affordability of homes and cars. But the president doesn’t control how the Fed sets interest rates. They are independent and for good cause: to avoid creating an economic mess for political reasons like juicing the economy before an election.

There is one other tool that presidents do have a hand in, however, and that is taxes and spending by the government.

… Read the rest

A Manifold of Non-Tiresome Heavens

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It’s the rage these days to wax indignant over the rise of authoritarian figures around the world. From Trump to Putin, Victor Orban, and the right-wing parties of Europe, the fear is that our experiment in post-World War II and then post-Cold War liberalism is at risk of being distorted and abraded by a desire for cultural uniformity. A common refrain is that the visibility of and legal restructuring around LGBTQ+ and ethnic/minority communities, as well as a sprinkling of environmentalism, is moving so quickly that a slight majority of the electorate wants to stand in the path of change “yelling stop,” to paraphrase Bill Buckley. Ripple effects then will break down the slow-built institutions that define contemporary liberal democracies and soon we have concentration camps for dissenters.

In America, there are nostalgic swoons for Ronald Reagan and some idealized middle-class heaven from the economic growth-phase of the 1950s when everyone went to church and the worst swear word was “golly gee!” The uniformity and comfort that people felt about their roles in their communities combined with a bedrock belief in family, faith, and devotion to country that was as reliable as America’s continuous economic growth. It was good to be alive and all the backward peoples of the world would maybe someday catch up if they didn’t all die of famine first.

But I can never quite understand what those who lean authoritarian want for their future world? I call most of the hypothetical visions “tiresome heavens” because they reflect the old joke of how Christian heaven must be a monotonous, uniform place. Just sit around in perfect blissful union with one’s Creator. Nothing really to do, no stressors, no wants, no struggles; it is a transcendent promise that is more geologic than human.… Read the rest

Reverse Engineering the Future

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I’ve been enjoying streaming Apple TV+’s Foundation based on Asimov’s classic books. The show is very different from the high-altitude narrative of the books and, frankly, I couldn’t see it being very engaging if it had been rendered the way the books were written. The central premise of predictability of vast civilizations via “psychohistory” always struck me as outlandish, even as a teen. From my limited understanding of actual history it seemed strange that anything that happened in the past fit anything but the roughest of patterns. I nevertheless still read all the “intellectual history” books that come out in the hope that there are underlying veins that explain the surface rocks strewn chaotically across the past. Cousin marriage bans leads to the rise of individualism? Geography is the key? People want to mimic one another? Economic inequality is the actual key?

Each case is built on some theoretical insight that is stabilized by a broad empirical scaffolding. Each sells some books and gets some play in TED and book reviews. But then they seem to pass away out of public awareness because the fad is over and there are always new ideas bubbling up. But maybe that’s because they can’t help us predict the future exactly (well, Piketty perhaps…see below). But what can?

The mysterious world of stocks and bonds is an area where there seems to be no end to speculation (figuratively and literally) about ways to game the system and make money, or even to understand macroeconomic trends. It’s not that economics doesn’t have some empirical powers, it’s just that it still doesn’t have the kind of reliability that we expect from the physical sciences.… Read the rest

Entanglements: Collected Short Works

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Now available in Kindle, softcover, and hardcover versions, Entanglements assembles a decade of short works by author, scientist, entrepreneur, and inventor Mark William Davis.

The fiction includes an intimate experimental triptych on the evolution of sexual identities. A genre-defying poetic meditation on creativity and environmental holocaust competes with conventional science fiction about quantum consciousness and virtual worlds. A postmodern interrogation of the intersection of storytelling and film rounds out the collected works as a counterpoint to an introductory dive into the ethics of altruism.

The nonfiction is divided into topics ranging from literary theory to philosophical concerns of religion, science, and artificial intelligence. Legal theories are magnified to examine the meaning of liberty and autonomy. A qualitative mathematics of free will is developed over the course of two essays and contextualized as part of the algorithm of evolution. What meaning really amounts to is always a central concern, whether discussing politics, culture, or ideas.

The works show the author’s own evolution in his thinking of our entanglement with reality as driven by underlying metaphors that transect science, reason, and society. For Davis, metaphors and the constellations of words that help frame them are the raw materials of thought, and their evolution and refinement is the central narrative of our growth as individuals in a webwork of societies and systems.

Entanglements is for readers who are in love with ideas and the networks of language that support and enervate them. It is a metalinguistic swim along a polychromatic reef of thought where fiction and nonfictional analysis coexist like coral and fish in a greater ecosystem.

Mark William Davis is the author of three dozen scientific papers and patents in cognitive science, search, machine translation, and even the structure of art.… Read the rest

Ethical Grounding and Numeracy

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I recently discovered the YouTube videos of Paulogia. He’s a former Christian who likes to take on young Earth creationists, apologists, and some historical issues related to the faith. I’m generally drawn to the latter since the other two categories seem a bit silly to me, but I liked his recent rebuttal of some apologist/philosopher arguments concerning the idea that ethics must be ontologically grounded in something. The argument is of the sort stoned high schoolers engage in—but certainly more carefully attended to—as I commented on the video.

So rather than pick on definitional minutiae, let’s take an expansive view of ethical reasoning and try to apply it to contemporary problems in society. For instance, while all societies have generally condemned murder in one way or another, how do we approach something like whether governmental control or regulation of environmental pollution and interaction is necessary or obligatory?

For the apologist/philosophers in the video, they seem to argue that scriptural claims places a grounding of ethics in a person’s “heart,” but then leave open how that gets translated into some kind of decision-making. At one point, one of the guys says he tends towards virtue ethics, while the other notes that some might see deontological ethics as the proper extension of that ontologically- and theistically-grounded impetus.

Let’s take a minimalist and observational approach to ethical behavior. We can perhaps tease out a few observations and then try to fit an explanatory theory onto that.

  1. Moral and ethical perspectives are and have been varied across people and time.
  2. There seems to be some central commonalities about interpersonal and group ideas about what is ethical and moral.
  3. Those commonalities have reflections in the natural world and among non-human species.
… Read the rest

A Most Porous Barrier

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Whenever there is a scientific—or even a quasi-scientific—theory invented, there are those who take an expansive view of the theory, broadly applying it to other areas of thought. This is perhaps inherent in the metaphorical nature of these kinds of thought patterns. Thus we see Darwinian theory influenced by Adam Smith’s “invisible hand” of economic optimization. Then we get Spencer’s Social Darwinism arising from Darwin. And E.O. Wilson’s sociobiology leads to evolutionary psychology, immediately following an activist’s  pitcher of ice water.

The is-ought barrier tends towards porousness, allowing the smuggling of insights and metaphors lifted from the natural world as explanatory footwork for our complex social and political interactions. After all, we are as natural as we are social. But at the same time, we know that science is best when it is tentative and subject to infernal levels of revision and reconsideration. Decisions about social policy derived from science, and especially those that have significant human impact, should be cushioned by a tentative level of trust as well.

E.O. Wilson’s most recent book, Genesis: The Deep Origin of Societies, is a continuation of his late conversion to what is now referred to as “multi-level selection,” where natural selection is believed to operate at multiple levels, from genes to whole societies. It remains a controversial theory that has been under development and under siege since Darwin’s time, when the mechanism of inheritance was not understood.

The book is brief and does not provide much, if any, new material since his Social Conquest of Earth, which was significantly denser and contained notes derived from his controversial 2010 Nature paper that called into question whether kin selection was overstated as a gene-level explanation of altruism and sacrifice within eusocial species.… Read the rest

New Agile Governance

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John Dickerson, in his excellent Atlantic article, The Presidency: The Hardest Job in the World, combines historical analysis with quotes and insights from presidents and past advisers to develop both a critique of the expectations of the role of president and how to achieve better results. The analysis lands on a few recommendations including improving the on-boarding process for new presidents and simplifying the role itself. Having and trusting one’s cabinet leads to better delegation of the impossible responsibilities of the role. Maybe outsourcing the ceremonial aspects of the job to the VP or First Lady would allow the president to concentrate on policymaking and national security flare ups.

While all are reasonable suggestions, resetting expectations about the role of the executive branch should be balanced against reforming the legislative branch in parallel. If both are to be empowered to serve the public’s will with grace and intellect, they face concomitant challenges in overcoming the partisanship and influences of monied interests that have made them unresponsive to the people. Polls show that the public wants reduced health care costs, reasonable gun regulations, humane immigration policies, and an opening of rights for gays and marijuana consumers. But none of these are delivered because they are too complex or politically toxic for Congress to successfully navigate.

Maybe the methodology is wrong. Not in the sense of the Constitution being wrong or in need of updating, but in the sense of how decision making and information gathering is managed through the legislative and executive branches. I’d like to propose an alternative that I will label New Agile Governance (NAG) for simplicity. NAG is based on the simple idea that tracks what Dickerson attributes to H.R.… Read the rest

The Universal Roots of Fantasyland

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Intellectual history and cultural criticism always teeters on the brink of totalism. So it was when Christopher Hitchens was forced to defend the hyperbolic subtitle of God Is Not Great: How Religion Poisons Everything. The complaint was always the same: everything, really? Or when Neil Postman downplayed the early tremors of the internet in his 1985 Amusing Ourselves to Death. Email couldn’t be anything more than another movement towards entertainment and celebrity. So it is no surprise that Kurt Andersen’s Fantasyland: How America Went Wrong: A 500-Year History is open to similar charges.

Andersen’s thesis is easily digestible: we built a country on fantasies. From the earliest charismatic stirrings of the Puritans to the patent medicines of the 19th century, through to the counterculture of the 1960s, and now with an incoherent insult comedian and showman as president, America has thrived on inventing wild, fantastical narratives that coalesce into movements. Andersen’s detailed analysis is breathtaking as he pulls together everything from linguistic drift to the psychology of magical thinking to justify his thesis.

Yet his thesis might be too narrow. It is not a uniquely American phenomenon. When Andersen mentions cosplay, he fails to identify its Japanese contributions, including the word itself. In the California Gold Rush, he sees economic fantasies driving a generation to unmoor themselves from their merely average lives. Yet the conquistadores had sought to enrich themselves, God, and country while Americans were forming their shining cities on hills. And in mid-19th-century Europe, while the Americans panned in the Sierra, romanticism was throwing off the oppressive yoke of Enlightenment rationality as the West became increasingly exposed to enigmatic Asian cultures. By the 20th century, Weimar Berlin was a hotbed of cultural fantasies that dovetailed with the rise of Nazism and a fantastical theory of race, German volk culture, and Indo-European mysticism.… Read the rest

I, Robot and Us

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What happens if artificial intelligence (AI) technologies become significant economic players? The topic has come up in various ways for the past thirty years, perhaps longer. One model, the so-called technological singularity, posits that self-improving machines may be capable of a level of knowledge generation and disruption that will eliminate humans from economic participation. How far out this singularity might be is a matter of speculation, but I have my doubts that we really understand intelligence enough to start worrying about the impacts of such radical change.

Barring something essentially unknowable because we lack sufficient priors to make an informed guess, we can use evidence of the impact of mechanization on certain economic sectors, like agribusiness or transportation manufacturing, to try to plot out how mechanization might impact other sectors. Aghion, Jones, and Jones’ Artificial Intelligence and Economic Growth, takes a deep dive into the topic. The math is not particularly hard, though the reasons for many of the equations are tied up in macro and microeconomic theory that requires a specialist’s understanding to fully grok.

Of special interest are the potential limiting role of inputs and organizational competition. For instance, automation speed-ups may be limited by human limitations within the economic activity. This may extend even further due to fundamental limitations of physics for a given activity. The pointed example is that power plants are limited by thermodynamics; no amount of additional mechanization can change that. Other factors related to inputs or the complexity of a certain stage of production may also drag economic growth to a capped, limiting level.

Organizational competition and intellectual property considerations come into play, as well. While the authors suggest that corporations will remain relevant, they should become more horizontal by eliminating much of the middle tier of management and outsourcing components of their productivity.… Read the rest