Wednesday, July 1, 2026

US vs. Chinese public policy

The US: 

Matt Stoller explains the history of why US public policy has been twisted to serve the billionaires here. Excerpt: "Someone with great foresight killed the left’s ability to govern, a long time ago....

"Gingrich was an intellectual, as were some of his colleagues. When he first was elected in 1978 as part of what was known as the “New Right,” every young Republican candidate was obsessively reading Robert Bork’s The Antitrust Paradox. In 1995, his goal wasn’t just to pass legislation, but to fundamentally re-gear Congress so it could no longer serve as the brains for the Democratic Party, as it had for the last half century. That was an institutional task, and he set about restructuring the institutions.

"First to go was the Office of Technology Assessment, a nonpartisan think tank that conducted long-term studies on important scientific and engineering topics, like how to decommission the Space Shuttle or early warnings on climate change. Gingrich also slashed Congressional staff by a third, eliminated dozens of subcommittees, and killed budgets for the legislative service organizations that helped specific groups of members, like the Black Caucus, the Caucus on Women’s Issues, the Environment and Energy Study Conference, and so forth. Most importantly, the Democratic Study Group, a network of staff and members who organized the rhythm of the House, disappeared.

"And Gingrich bulled the Congressional Budget Office, which was set up to rival the executive branch’s capacity to govern. “It’s our intention to largely replace CBO [sic] with more moderate economists,” Gingrich spokesperson Tony Blankley said. Other institutions, like the Congressional Research Service, got the message. Fall in line."

China: 

Meanwhile, Arnaud Bertrand reviews Xi Jinping's book explaining China's philosophy of governing here.

Excerpt: "[Xi's analysis says] the biggest problems with Western modernization are that it is capital-centered rather than people-centered and that it seeks to maximize capital gains rather than serve the interests of the people."

Bertrand quotes Xi contradicting those who insist China's success originated with its imitation of capitalists' policies: "Following the founding of the PRC, our Party continued to lead the people in carrying out socialist revolution—dismantling the feudal system that had persisted for thousands of years and establishing socialism as the country's basic system. This transformation represented the most comprehensive and profound social change in Chinese history, and laid the political and institutional foundations for China's drive for modernization. During this period, China lagged so far behind much of the rest of the world that even basic household items like kerosene, matches and nails had to be imported from other countries." 

 ===

Both essays are well worth reading in full. They clarify the dynamics and history of the differences between China and the US. 

Monday, June 29, 2026

The limits of capitalism

"We often hear about Capitalism's contraditions, but I think the most tragic one is that we teach children pro-social behaviors: to share, to be kind, to cooperate, and to work together. We try to raise them to be decent human beings. But then, when they grow up, they are rewarded for outcompeting others, being cutthroat and ruthless in the workplace, and if they achieve wealth and power, they are often rewarded for many anti-social behaviors." - David Graeber

The Monetary Component of Post-Civil-War USA

This is a response to Matt Stoller's concise summary of post-Civil War economics.

Dear Matt,

I loved your post-Civil War summary, but it omits a few items that are often ignored.

First, in the period leading up to the Civil War, as he was stealing the Southeastern US from the Cherokees, President Andrew Jackson also paid off the national debt in full in 1835 and decommissioned the US central bank. 

Both the national and Georgia Supreme Courts validated the Cherokees' title to their land, so Trump is not the first president to ignore the Supreme Court's decisions.

Since public currency is a component of national debt, just as an asset like your bank account is the bank's liability, terminating the central bank and paying off national debt meant public currency vanished, reducing people's savings. It was austerity on steroids.

In the aftermath of Jackson's massive financial bungle, people did their business with monetized gold ("specie") and over 7,000 varieties of private banknotes of varying reliability. There was no FDIC then, either.

So, as with all significant reductions in national debt, Jackson's debt payoff made the economy more fragile. A wave of asset forfeitures and foreclosures called the "Panic of 1835" ensued. One might even say this was a significant contributor to the tensions leading to the Civil War itself and the post-Civil War depressions.

The Civil War itself meant the Union had to spend lots of money to fight the seceding states. I've read that the bankers offered to lend Lincoln the money at 26% interest. Lincoln sidestepped handing the banks an enormous profit by issuing "greenbacks" from the Treasury as currency.  They were valuable because they were accepted in payment for taxes. 

The feds also abandoned traditional accounting for greenbacks issued and did not call them liabilities. This was a covert (re)expansion of national debt.

Post-war, government began withdrawing greenbacks from circulation. (See Lawrence Goodwin's The Populist Moment: A Short History of the Agrarian Revolt in America) Losing the Civil War meant the Confederacy lost most of its assets (slaves), none of its money was valuable, and all of its banks failed. As a consequence Connecticut alone had as much currency as the Confederate states put together. Southerners were very poor, and resented the Northern banks backing the creditors. There's even a continuing movement to deny ending slavery was what started the Civil War, saying Northern banks were the spark that set it off.

So...what do people do when there's no money and they need to buy seeds for their farm, and food for their family? They buy on credit. A credit store run by the "Furnishing Man" came along to cater to such customers. The name was later shortened to just "the Man," as in "Working for the Man every night and day" in the Creedence Clearwater Revival song.

The Man charged one price for cash and another for credit. The credit price would put today's payday lenders to shame. The security for credit extended was the "crop lien." The farmers bore all the risk of price swings and weather, while the Man often took advantage of such emergencies to foreclose and make tenant farmers out of farm owners. It was an example of "disaster capitalism" on steroids. The people in charge of rail transportation of crops also colluded to support the Man, refusing to take crops to markets where they might be more valuable.

One response to this crushing blow to the poor was the Farmers' Alliance. The Farmers' Alliance moved into politics in the early 1890s under the banner of the People's Party, commonly known as the "Populists." They elected people to political office both locally and federally, and were one of the driving forces behind the creation of the Federal Reserve and the State Bank of North Dakota, as well as farm co-ops.

The forces of austerity run in parallel to the monopolists you cover, saying we can't afford to house, treat, or constructively use poor people in our civilization because (Eeek!) we're running out of money. We've had plenty of historical examples of austerity. Every one precedes a significant economic downturn.

=========

Incidentally, today's post from Stoller is simply awesome. It answers the question previously asked by Congressman Pascarell: "Why is Congress so dumb?" 


Sunday, June 21, 2026

von Mises' Economic Calculation Problem….. Debunked

Economic Calculation Problem….. Debunked

[historic.ly, 19 Jun 2026]

According to libertarians, the Economic Calculation Problem is the ultimate kryptonite against socialism — a decisive argument that no one has ever refuted. Austrian economist Ludwig von Mises presented it as a logical proof that socialism is inherently irrational….

Mises maintained that the information necessary for economic calculation cannot be directly derived from physical quantities alone. Steel, labor, coal, machinery, and land are qualitatively different inputs that cannot be compared through simple measurement. Market exchange generates prices that reduce these heterogeneous goods to a common monetary denominator, allowing alternative production plans to be compared. Millions of exchanges produce prices that summarize dispersed information about relative scarcity and demand. In his view, the market functions as a mechanism for coordinating information that no individual planner could assemble independently.(Mises 1949, 92–97; 1920; 1922).

Without price-based calculation, Mises concluded, socialist planning must be arbitrary, leading to waste, inefficiency, and eventual collapse….

A central assumption in Mises’s argument is that profitability indicates that resources are being used more effectively. If a producer cannot compete profitably, Mises argues that others have found a better use for the resources involved (Mises 1949, pp. 300–302, 334–336; see also 1920)

Yet profitability in this system often comes not from genuine improvements or feeding more people, but from engineered scarcity and the quiet destruction of life….

Prices embed existing inequalities and power relations rather than revealing objective scarcity or true societal value.For example, in order to mine cobalt (a critical input for electric vehicle batteries and other high-tech goods), children between the ages of 3–17 in the mining communities of the copper-cobalt belt in the Democratic Republic of Congo are heavily involved in the labor. According to a 2017 UC Berkeley CEGA white paper, 11% of children aged 3–17 work outside the household in these artisanal mining areas, while an additional 57% perform domestic household tasks that support the mining economy.Even when prices exist, they reflect the current structure of power and property relations, not moral value or labor input…."

=========

From your humble blogger: 

This debunk is yet another example of applying what classical economics calls the "law of declining profits." In a perfectly free market without barriers to entry, firms compete for business on (lower) price and (higher and higher-priced) quality.  This inevitably leads profits to decline.

Firm managers and investors know this inside out. Champion stock-picker Warren Buffett said he always looked for firms with "moats," to discourage competition, when he invested. Other strategies to avoid the law of declining profits include predatory labor practices (to lower costs), buying out other firms to make monopolies and oligopolies control markets, "dumping" - selling goods at lower-than-production costs to drive less capitalized competitors out of the market, and unproductive activities. 

The best example of unproductive activities is military expenditure. Nothing is less productive than a product literally designed to blow up. On top of that military acquisitions are often done with cost plus contracts. The "plus" is the profit, and is figured as a percentage of costs. So the more expensive the weapon, the better, at least from a profit perspective. Whether it works or not is secondary. Iran's drones are cheap, and the US/Israel countermeasures are easily hundreds of times more expensive...and they're not always reliable.

Of course seekers of profit are not shy about using warfare, too. Von Clausewitz said "War is politics by other means." One might add that "Economics is war by other means," too. 

The US used to manage it's "free" market very closely with measures like the Wright-Patman act that forbade price discrimination between big and little buyers. So when Walmart gets its soda at a difference price than mom-and-pop stores that's forbidden under Wright-Patman. Matt Stoller reports the FTC stopped enforcing that law, which would be very damaging to Walmart's business model.

 It also used to be illegal to buy back stock, or to pay executives with stock or options. A bipartisan effort rolled back these regulations. The political class has succumbed to the influence of the plutocrats, and public policy is the foundation of the current level of income inequality.

 

 

Friday, June 19, 2026

Today's Bee Letter (Published! ... kinda)

Responding to the Bee's publication 6/19/26 "Sacramento leader: The county's budget rewards failure, cuts public safety" by Rosario Rodriguez, on page B10

Supervisor Rodriguez' editorial fails to mention that the County's commitment to "safety" relies primarily on coercion after the fact rather than prevention. Cops, courts and cages are what she complains are being underfunded, despite being roughly 70% of the County's budget. Incarcerating for addiction is seven times the cost of medical treatment, and is less effective, but Rodriguez proposes no expansion of rehab. She just wants a jail expansion, even though the Mays decision settlement doesn't request it. 

She also omits that Sheriff Cooper confessed his "cuts" were illusions. He is re-assigning deputies to existing vacancies, not reducing police staffing. It’s not news that cops just want more money, even if they solve less than 15% of crimes--and don't solve 85% of them. The world is scary enough without the Bee appealing to fear with this kind of incomplete reporting. Please start solving problems, and stop adding to them.

====

I might add that it's extraordinarily frustrating to have no interest from local publications in the editorial I wrote responding to Ms. Rodriguez appeal for more coercion. My writing has appeared in these publications previously, but they're just not interested in contradicting the belief that cops, courts and cages are the way to deal with the desparate people in Sacramento County. One example of a better way to prevent such desperation is Contra Costa County's "Destination Home," a program to provide people on the brink of losing their rental with some funds to keep their housing.

===========

After complaining that the Bee never publishes my stuff, they published this letter, edited.

Here's their version:

BUDGET REALITIES
Sacramento Supervisor Rosario Rodriguez's editorial fails to mention that the county's commitment
to "safety" relies primarily on coercion after the fact rather than prevention. Cops, courts andd cages are
what she complains are being underfunded, despite being roughly 70% of the county's budget. Incarceration for for addiction is seven times the cost of medical treatment, and it is less effective. But Rodriguez proposes no expansion of rehab. She just wants a jail expansion, even though the Mays decision settlement didn't request it. It's not news that cops just want more money without being more effective. Please start solving problerns, and stop adding to them.
 

Mark Dempsey
Orangevale 

That's 104 words, while the Bee solicits letters that are as long as 150 words. ... Omitted [Added]:

She also omits that Sheriff Cooper confessed his "cuts" were illusions. He is re-assigning deputies to existing vacancies, not reducing police staffing. It’s not news that cops just want more money [without being more effective], even if they solve less than 15% of crimes--and don't solve 85% of them. The world is scary enough without the Bee appealing to fear with this kind of incomplete reporting.  

===

Really Milquetoasts the message, doesn't it? Gee, I wonder how Trump gets traction with the "fake news" accusations...! Of course the Bee wouldn't publish the full editorial, although the Davis Vanguard did.

The Bipartisan War on Venezuela, Cuba, and Nicaragua

(from LA Progressive)

by Roger D. Harris and John Perry
Jun 18, 2026

While Democrats criticize Trump's foreign policy style, both parties continue to support sanctions, economic coercion, and efforts to reshape governments across Latin America and the Caribbean.

Donald Trump’s second term has precipitated a tsunami of criticism from Democrats over his foreign policy. Yet when it comes to Washington's efforts to dominate Latin America and the Caribbean, the substantive dispute – if there is any substance remaining, once stripped of partisan bickering – is less about ends than means.

Beneath the rhetoric of inter-party conflict lies a broad bipartisan consensus in favor of promoting US hemispheric hegemony and crushing governments that resist it – with Venezuela, Cuba, and Nicaragua at the forefront. While Democrats frequently portray Trump as reckless, they generally accept the underlying premises of economic coercion, political intervention, and regime-change pressure. Their objections mainly focus on the execution of policy rather than its legitimacy.

The central role of sanctions in projecting imperial coercive power

Under Democratic administrations, the US forged and institutionalized what may be its most effective instrument of hegemony. Coercive economic measures, commonly called “sanctions,” were first deployed by Franklin D. Roosevelt against Mexico in the 1930s. They were used by Dwight D. Eisenhower to pressure Guatemala in 1954 and then – most drastically – against Cuba by both Eisenhower and John F. Kennedy in 1960. Today, one-third of the world’s nations are under US sanctions.

Sanctions – a form of collective punishment – are held by legal experts to be contrary to international law. Paradoxically, not only does Washington disregard international law in imposing sanctions, but the US then behaves as if they are applying the law when, for example, they pirate a ship delivering humanitarian supplies to a sanctioned country.

Use of sanctions has accelerated because successive administrations have seen their unique advantages. Compared with “forever wars,” they are more easily justified to US voters as cost-free and as not imperiling US lives. If sanctions are the precursor to military intervention – as in Guatemala in 1954, Cuba in 1961, Grenada in 1983, Panama in 1989 and, of course, Venezuela in 2026 – the interventions have usually been limited, with few US casualties.

Yet sanctions are very potent: between 2010 and 2021, they caused around 560,000 deaths globally each year – more than five times the number of people killed annually in direct armed combat.

While sanctions are made more palatable by being described as “targeted” at governments or individuals seen as undesirable by Washington, in practice the “targeting” is deliberately far wider. Sanctions do most damage to the poorest sectors of societies – the sectors most likely to support progressive governments. The barely veiled message is that only by withdrawing this support will such communities be able to prosper and avoid the threat of even greater US intervention.

The frequent description of sanctions as “targeted” carries another implication – that they are intended to have a precise and conclusive effect. However, while sanctions cause severe economic damage, there is little evidence that they achieve intended regime change. Even so, sanctions on countries which refuse to change are maintained and – very frequently – intensified. Democrats are as guilty of this folly as Republicans.

Indeed, US sanctions have imperial utility through their “demonstration effect”: attempting to cripple progressive alternatives to the neoliberal world order. Recently subjected to draconian sanctions, Cuban President Díaz-Canel proclaimed: “Cuba is not a failed state; Cuba is a besieged state.” Still, infant mortality in Cuba is lower than among African Americans.

Transitioning to “democracy” in Venezuela

In the case of Venezuela, the Democrats have criticized the Republicans from the right, complaining that the cudgel of imperial power against essentially defenseless small states has not been wielded with sufficient malice.

Washington has imposed illegal unilateral coercive measures on Venezuela since 2015 in efforts to asphyxiate its Bolivarian Revolution. The transparently false rationale for continuing sanctions is that Venezuela poses an “extraordinary threat” to the national security of the US. Although the threat is obviously the other way around, mainstream Democrats have not exposed this lie. How could they, when it originated with Obama and was subsequently echoed by Biden and then Trump?

Despite the horrific toll of an estimated 100,000 excess deaths attributed to US-imposed sanctions, Venezuela has resisted and maintained an unbroken continuity of leadership from Hugo Chávez to Nicolás Maduro and to now Delcy Rodríguez. And that’s the rub for the Democrats.

Ranking Democrat members of the House and Senate foreign affairs committees, Representative Gregory W. Meeks and Senator Jeanne Shaheen, issued a “request [for] a clear explanation” of Trump’s Venezuela policy. Their meek missive came a full five months after the abduction of the Venezuelan president, an operation that resulted in more than 100 collateral deaths. Meanwhile, more than 200 occupants of small boats in the Caribbean and eastern Pacific have been subjected to extrajudicial murder by the Trump administration.

Yet these inconvenient facts are absent from the June 8 Democratic Party congressional foreign-policy leadership’s statement on Venezuela. Their complaint is that Trump’s White House has failed to sufficiently “exercise its leverage.” As they put it: “As of today, the [state] department has yet to provide any evidence the Trump Administration is doing any of this hard work.”

The contradiction of kidnapping a lawful head of state in the name of restoring democracy does not trouble the Democrats. Rather, they “strongly support the Venezuelan people’s right to choose their leaders,” … after the US abducts their president.

These Democrat leaders are also troubled that Venezuelan authorities were allowed to appoint a new attorney general and defense minister without apparent US interference. In addition, they express impatience with Trump’s lethargy in not yet overhauling Venezuela’s supreme court and electoral council.

To the extent that they make any concrete demand, the putative opposition party wants Trump to impose an “electoral timeline” on Venezuela. Yet, the same party has no problem with Volodymyr Zelenskyy in Ukraine who suspended elections after his legal term in office expired two years ago, banned opposition parties, shuttered critical media, and arrested political opponents.

Restoring “democracy” in Cuba

Democratic Party policy toward Cuba is perhaps best exemplified by Biden’s retention of the State Sponsor of Terrorism designation, which he inherited from Trump. Then, just six days before leaving office, Biden rescinded the designation with full certainty that the incoming Republican would – and did – reverse his decision.

Former National Security Council officer Ricardo Zúñiga was Obama’s adviser for the Americas and Biden’s special envoy for the Northern Triangle. He writes in Foreign Affairs offering advice on, rather than criticism of, Trump’s Cuba policy.

Zúñiga advocates achieving regime change in Cuba through “diplomacy” rather than “force.” Scare quotes are used because, for this Democrat, brute economic strangulation is regarded as diplomacy. Zúñiga would “forswear military action,” but only if Cuba submits to US dictates. And so long as “pro-market reforms” are adopted, “democracy” can wait.

Without a hint of opprobrium, Zúñiga casually references the US invasion of Iran and the kidnapping of the Venezuelan president as policy options that would not be effective in Cuba. Given these examples, he then complains that Cubans remain resistant to “American views on democracy and human rights.”

He acknowledges that even if Trump wished to selectively roll back the murderous sanctions currently imposed on Cuba, he would face opposition not only from Republicans but also from Democrats. Where this Democrat differs from Republicans is in his supremely hypocritical conclusion: “It is ultimately Cuban citizens who will determine their country’s future” … after the US overthrows their government.

Promoting “democracy” in Nicaragua

Tiny Nicaragua is also labelled an “extraordinary threat” to the US. While the harshest and most successful sanctions against it were applied during the Reagan administrations, when an economic blockade and the US-financed Contra war eventually unseated the Sandinista government in 1990, economic pressure quickly resumed once the Sandinistas returned to power in 2007. Both the Bush and then Obama administrations made cuts in aid, and it was under Obama that Democrats joined with Republicans to launch the NICA Act, eventually implemented (under Trump) in 2018.

While Trump signed the NICA Act and sanctioned various Nicaraguan functionaries, Democrat senators took the lead in formulating stronger measures in the RENACER Act, signed by Biden in 2021. This led to an estimated loss of $500 million annually in development finance that would have been directed at Nicaragua’s poorest communities. Democrat senator Tim Kaine, with Marco Rubio, put forward new legislation in 2023 that was intended to strengthen the RENACER Act and ensure even greater damage.

Biden officials were consistently aggressive toward Nicaragua. In 2022, his nominee for ambassador to Managua, Hugo Rodríguez, promised the US Congress that he would “support using all economic and diplomatic tools to bring about a change in direction in Nicaragua.” As a result, Rodríguez was never accepted as ambassador and the post remains unfilled.

In 2024, Biden’s trade representative launched a hostile investigation clearly aimed at disrupting trade with Nicaragua and possibly at excluding it from the regional trade treaty, CAFTA. When it eventually reported in late 2025 it recommended punitive tariffs, but only relatively mild penalties were actually implemented by Trump.

Marco Rubio regularly imposes sanctions on individual Nicaraguans, including a hundred more just this month. More than 2,300 have now been sanctioned by successive administrations. Nevertheless, hardline Democrats, as well as Republicans, are pushing Rubio to do far more.

Two parties, one strategy

The shared strategic objective of the bipartisan Washington consensus is the projection of US hemispheric dominance. The two major parties differ mainly in messaging and, to a lesser extent, on tactics. Their theatrical contention is neither between intervention and nonintervention, nor between coercion and diplomacy. More often, it is between competing methods for achieving the same strategic objective.

Republicans may be more inclined toward overt confrontation, selective military assaults and maximal pressure; Democrats typically prefer a combination of inhumane sanctions, diplomatic isolation, and multilateral coercion. But both approaches rest on the assumption that Washington has the right to shape the political future of other nations.

Despite differences in tone and tactics, the supposed opposition party offers not an articulated alternative to the Trump Corollary to the Monroe Doctrine but, at the very most, a variation of it.

The opinions expressed here are solely the author's and do not reflect the opinions or beliefs of the LA Progressive.
 

CubaNicaraguaTrump RegimeVenezuelaLatin America

By Roger D. Harris


Roger D. Harris is a founding member of the Venezuela Solidarity Network and is active with the Task Force on the Americas and the SanctionsKill Campaign.

By John Perry

John Perry is a writer based in Nicaragua and writes on Central America for the Nation, the London Review of Books, openDemocracy, the Council on Hemispheric Affairs, and other outlets.

Saturday, June 13, 2026

The cost of the suburbs

 

Friday, June 12, 2026

The Supervisor Rodriguez Conundrum

(c) by Mark Dempsey

In Sacramento County Supervisor Rosario Rodriguez's latest newsletter, she decries the County's budget deficit as a threat to public safety. Why? Because cops, courts and cages are not fully funded. And this, she says, is a big, big problem.

Sure:

  • Incarceration is seven times more expensive than medical treatment for addiction (rehab) 
  • The US incarcerates at five times the world average, per-capita. 
  • Funding for cops, courts and cages has increased, nationwide, four times faster than US population growth since the '80s, and 
  • Police solve less than 15% of crimes (13.2% of felonies in California in 2022). 
But we must have more policing!

Per-capita, Canada incarcerates one-seventh as many as the US, yet has lower crime rates. Of course the US has more than half a million medical bankruptcies annually, while Canada has single-payer healthcare, so social services might actually be cheaper and more effective at preventing crime.

She asserts that the Mays Decision - a lawsuit the County Jail lost for mistreating prisoners - requires physical improvements to the jail. That's not true, but the likes of Ms. Rodriguez would love a multi-million-dollar mega-jail renovation there. Why we don't incarcerate nearly enough people at five times the world's average per-capita rate!

In fairness, the jail is full. But 60-80% of the prisoners are not convicted of anything other than being unable to pay bail. In Sacramento County, you're not "innocent until proven guilty," you're "guilty until proven wealthy."

And if you believe prosecutors don't use that pre-trial incarceration as a lever to extort plea bargains, then I've got a bridge in Brooklyn to sell you. It's not justice; it's an extortion racket.

Is there any discussion of no-cash bail (as Illinois currently has) or pre-trial supervision? Not that I can detect. 

The Supervisor also complains that the County's maintenance costs are rising. Is there any move to deny land speculators their big payday, and curtail edge city development? Not that I can detect. After all, the region has 20 years' worth of unbuilt infill, and infill maintenance costs half as much to maintain as edge city development since the roads and utilities are shorter and already in place.

What Ms. Rodriguez (and her predecessor) are advocating is the domestic equivalent of the "No war is too expensive to fund or fight" international policy that has the US starting wars it can neither afford nor finish. That domestic equivalent isn't e pluribus unum ("from many, one"), it's "The beatings will continue until morale improves." 

Update #1: Signs of Reform - German prisons inspire changes. (appears in the same issue of the Davis Vanguard where the original essay appeared.

Update #2: The Mays Decision (settlement summary) In case you're wondering whether Rodriguez argument we need to expand the jail is true (it's not):

"On June 10, 2019, the parties submitted a joint notice of settlement in the form of a proposed Consent Decree, which involved a Remedial Plan requiring the County to expand its mental health programs and services, provide constitutionally-adequate medical care, provide additional safeguards to reduce suicides by people in custody, identify people with disabilities and ensure that they receive appropriate accommodations, and expand mental health input into the jail's disciplinary and use of force practices. Under the proposed Consent Decree, the Court retained jurisdiction to enforce the Consent Decree and the agreement would last for six years from the date it was entered by the court." 


Update #3: Internal records expose no real layoffs for Sacramento deputies

[From the Sacramento News & Review: It turns out the budget "cuts" are an illusion summoned in service to further the Copaganda]

Sheriff Jim Cooper has warned publicly that Sacramento County’s proposed 2026-27 budget would force his department to gut specialized units and trigger a “public safety crisis,” claiming patrol deputies and detectives would drop from 480 to 394.

County Supervisor Rosario Rodriguez echoed the alarm on social media, posting that the proposed budget would “significantly reduce law enforcement services” and weaken neighborhood safety.

An examination of the Sheriff’s Office’s internal budget submittal, obtained by The Observer, tells a different story.

The sheriff proposed eliminating approximately 140 positions and several specialized units to meet county budget targets, but the document states those positions would be reassigned into existing vacancies rather than eliminated.

In other words, the proposed budget would lay off no active law enforcement personnel.

....

Warnings of an impending safety crisis also are undercut by the sheriff’s own crime data.

The office investigated 18 homicides in 2025, down from 37 in 2024, 38 in 2023, and 39 in 2022. Spokesperson Lt. Amar Gandhi told the Sacramento Bee in January that last year’s figure represents the lowest annual homicide total the office has investigated since the 1980s.
 

  

 

Tuesday, June 9, 2026

7 Ideas That Should Make You Distrust Your Own Mind

by Hunter Trace
June 3, 2026 - 6 min readArticle

 



When Robert Trivers died this year, I lost a friend and the world lost one of the few people who genuinely understood why we lie to ourselves. Skeptic readers know his work even if the name sits just out of reach—his fingerprints are on half of modern evolutionary psychology. Bob once let me fly him out to lecture my state pharmacy association on the science of deceit: a room full of pharmacists learning, from the man who worked it out, that the mind is built to fool its own owner before it fools anyone else. He was generous like that, and funnier than his reputation. That idea—self-deception as design, not defect—is where any honest account of our species has to begin.

It’s also the first entry on a list I’ve spent years assembling in an attempt to gather the load-bearing findings about human nature—scattered across biology, psychology, economics, and anthropology, buried in thousands of pages no busy person will ever read—and compress them into something you can hand to a friend. What follows is the compression of the compression. Seven ideas. If they’re new to you, they will rearrange how you see nearly everything. If they’re not, consider this the map of where the bodies are buried.
The line between clear sight and self-deception runs through every skull, and it does not stop running because you’ve read an article about it.

A warning before we start: there is no flattering way to read this list. I am implicated in every item on it. So are you. 


1. You are the mark, not the con artist.

Trivers’s central insight, laid out in The Folly of Fools, is that self-deception is not a malfunction. It’s an adaptation. The most convincing liar is the one who believes his own lie—he leaks no tells, because there’s nothing to leak. So natural selection built minds that hide their real motives from the conscious tenant upstairs. The unsettling part is the part most people skip: in this arrangement, the “you” that experiences your own reasoning isn’t running the con. You’re the one being conned. Your sense of why you do what you do is a press release, not the minutes of the meeting.
 

2. The rider works for the elephant.

Jonathan Haidt’s metaphor, with the mechanism supplied by Daniel Kahneman’s two systems: conscious reasoning (the rider) imagines it’s steering, but the automatic, emotional, intuitive part (the elephant) decides first—in milliseconds—and the rider’s actual job is to invent justifications after the fact. When you form a political opinion, you do not reason your way to it. You feel your way to it, then reason your way to a defense. This is why facts so rarely change minds. You’re not arguing with someone’s logic. You’re arguing with their elephant, and the rider you’re talking to is just the press secretary. And here’s the twist that should keep an honest person up at night: the implication is notthat morality is arbitrary. There are almost certainly better and worse answers to how conscious creatures should treat one another—Sam Harris is right that the moral landscape has real peaks and valleys. The problem is that the machinery generating your moral certainty was never built to track those peaks. It was built to track your tribe.
Our power has outrun our self-knowledge. That gap is no longer a curiosity. It’s the central problem of the species. 


3. You are a monkey with a machine gun.

For the overwhelming majority of our existence, we lived in bands of roughly 150, chased scarce calories, faced physical threats, and tracked reputation face-to-face. That world is gone. The brain is not. You are running twenty-first-century software—cable news, dating apps, global markets, eight billion strangers—on hardware and instincts shaped over deep evolutionary time, in a world that vanished in an eyeblink by comparison. Nearly every modern pathology is this mismatch wearing a different mask: obesity is the calorie-seeking system in a world of abundance, social-media misery is the status-tracking system run at a volume it was never built for, chronic stress is a threat-detection system designed for lions and now triggered by email. Our power has outrun our self-knowledge. That gap is no longer a curiosity. It’s the central problem of the species. 


4. Tribalism is a feature to be managed, not a bug to be solved.

This is the sentence most people across the spectrum get wrong. Progressives tend to think tribalism is ignorance that education will cure. Conservatives think it’s a virtue when aimed at the right targets. Libertarians think clear thinking dissolves it. All three are wrong, because the impulse to sort the world into us and them is as deep in the architecture as language. You will not eliminate it. The groups that out-survived the others were the ones that cooperated inside and competed outside, and you are their descendant. The functional question is never how to abolish tribalism but how to channel it—through cross-cutting institutions, productive competition, and norms of engagement. Societies that manage it thrive. Societies that let it run loose produce Yugoslavia, Rwanda, and Weimar. The historical record on this is not ambiguous. 

5. The Blank Slate is not just wrong—it’s dangerous.

Steven Pinker’s target is the still-dominant assumption that humans arrive infinitely malleable, with no nature worth mentioning—that every difference between individuals, groups, and sexes is pure socialization. The science doesn’t support it. But the deeper problem is moral, not empirical. If people have no nature, then anyone who refuses to be molded to your program must be acting in bad faith—stupid, corrupt, or evil. That inference is the seed of every utopian catastrophe in history. The planners who believed they could manufacture a New Man had the power. They lacked the knowledge. The gap between the two filled with corpses. You cannot modulate what you refuse to acknowledge; a pilot who denies gravity does not fly well.
 

6. Patternicity will fool you, and it feels exactly like insight.

This one belongs to Skeptic’s own founder. Michael Shermer’s point is that the brain is a pattern-detection machine with the sensitivity dial turned all the way up—because mistaking a shadow for a predator a hundred times is cheaper than mistaking a predator for a shadow once. So we find faces in clouds, meaning in coincidence, conspiracies in noise. Layer motivated reasoning on top, and you don’t just find patterns everywhere; you preferentially find the ones that confirm what your tribe already believes. The feeling of having seen through to the truth is generated by the same machinery whether or not there’s anything there. Which means the conviction can’t be your evidence. It never could.
The smartest reasoners are often the most expertly biased, because they’re better at building the defense. 


7. Design for the animal, not the angel.

Here’s the payoff, and it’s strangely hopeful. The systems that work are the ones built for the creature that actually exists. Markets succeed because they channel self-interest instead of pretending it away—the butcher feeds you out of his own interest, not his benevolence. The American founders built checks and balances not for angels but for the ambitious, self-interested primates who would actually hold power. “If men were angels,” Madison wrote, “no government would be necessary.” The institutions that fail are the ones designed for a species we wish we were. Understand the animal, and you can build a civilization worthy of it. Deny the animal, and the animal runs the show.

♦ ♦ ♦

There’s an eighth idea, and it’s the one that makes the other seven dangerous to summarize: the bias blind spot. We can see every distortion clearly—in other people. Hand a sharp partisan a list like this one and watch him aim it across the aisle, never once at himself. The studies are brutal on this point: greater intelligence and scientific literacy don’t reduce motivated reasoning on identity-defining issues. They supercharge it. The smartest reasoners are often the most expertly biased, because they’re better at building the defense.

So I’ll say what the science forces me to say. Nothing on this list exempts me from anything on this list. I am the mark in my own mirror as surely as Trivers was in his—and he knew it, and knowing it was the closest thing to an escape hatch our species has ever found. Solzhenitsyn wrote that the line between good and evil runs through every human heart. The line between clear sight and self-deception runs through every skull, and it does not stop running because you’ve read an article about it.

You are not the exception. Neither am I. But the effort to catch yourself—to ask, before the next certainty hardens: Is this my thinking or my tribe’s? Is this evidence or is it rationalization?—is the one thing the animal can do that the animal it evolved from could not.

That effort is what my book The Why Behind Things is for. This was the cheat sheet.

Remember when "People are starving in China" got you to eat your broccoli?

 

 

Update: China may have fewer people living in poverty than the US 

Saturday, June 6, 2026

Is federal spending a solution, not necessarily a problem?

(c) by Mark Dempsey 

Don't get me wrong, federal spending isn't always good. The most recent initiator of massive deficit spending was the Milton Friedman acolyte Reagan administration 46 years ago. His deficits exceeded the sum of all previous ones, and for his trouble, Reagan got an average business cycle recovery, but jump-started the American oligarchy by cutting taxes on the wealthy roughly in half.

Here are US GDP growth rates, historically. 

 

Note the two large increases in GDP growth in the early years graphed occurred with the New Deal and that big public works project called "World War II," both instances of big deficit spending. Both dwarf the "Morning in America" (the Wall St. Journal's expression) Reagan recovery in the '80s (see the graph above).

Milton Friedman's failures aside, let's consider the possibility that government "overspending" is at the root of inflation--a problem, not a solution. If the government spends too much money, it's certainly conceivable that the spending could bid up the prices of various resources, causing inflation. But what if the government activated otherwise idle resources--for example, with a job guarantee for the unemployed? What bidding would occur then? And would spending be the only initiator of inflation? Couldn't a shortage of critical goods like food or energy also explain an inflation surge?

One online commenter's remark decrying "25 years of massive deficit spending" implies that those deficits were inherently inflationary because they give money to the population, which was ultimately spent, bidding up prices. But supply and balance of payments issues precede all the hyperinflations (says a Cato Institute study). A public eager to save (in Japan) accompanies massive public debts, as high as 240% of GDP, without producing inflation, so the assertion that inflation is always the government's fault is at least myopic.

But shouldn't we reduce national debt? The US has been fooled by plausible deceivers like Friedman and has significantly reduced its debt seven times since 1776. The problem is that reducing spending or increasing taxes reduces national debt, and it ultimately injects fragility into the economy by reducing people's savings. One hundred percent of the time the significant national debt reductions have occurred in the US, they're followed by a massive wave of asset forfeitures and foreclosures--not a big surprise since smaller savings accounts reduce economic resilience.

The Great Depression followed such national debt reductions in the Coolidge and Hoover administrations, but perhaps the most dramatic instance of this phenomenon occurred when Andrew Jackson paid the debt off entirely in 1835, and closed the central bank that issued dollars. That meant there was no public currency. People did their business with monetized gold ("specie") and over 7,000 varieties of private bank notes of varying reliability. It was a business nightmare, which led to a wave of asset forfeitures and foreclosures called the "Panic of 1837"--a Great Depression-sized hole in the economy. 

Independent of inflation considerations, one added dimension to this problem is the bizarre belief that dollars grow on billionaires. The government is not like a household that has to get its dollars from somewhere else (like billionaires). It literally makes all the (legal) dollars. Taxes create the demand for dollars; they don't provision federal programs.

In fact, the phrase "tax and spend" is an impossible sequence of events. Where would people get the dollars to pay taxes if the monopoly provider of dollars didn't spend them out into the economy first?

So it's not "tax and spend," it's "spend first, then retrieve some dollars in taxes." And what do we call the dollars spent, but not retrieved in taxes...you know, the ones in your wallet? First, they are the dollar financial assets of the population--people's savings. Perhaps less obviously, they are also national debt.

This is not exotic economics; it's double-entry bookkeeping. 

In addition to his failed economic predictions, Milton Friedman gave intellectual respectability to the notion that the pursuit of profit excuses all behavior, no matter how bad. Politically interested people will even tell you, despite all the historical evidence to the contrary, that corporations are obliged by law to ignore the community, their workers, and society at large because they are compelled to pursue profit at all costs (The Ferengi ethic!). It's not true, but this is yet another demostration that you're as likely to get truth from a Friedmanite economist as you are from your opponents in a poker game.

 

What do spiders and peacocks have in common?

 

AI Limits

 

 



Also worth a look: Michael Roberts' take on AI's impact on the economy

Wednesday, May 27, 2026

Replying to the Anti-Steyer Campaign

About Steyer: He's a billionaire, but endorsed by Bernie Sanders. Talk about odd political bedfellows!

Not mentioned: Becerra's donors appear on the left in the graphic. Steyer's are on the right:



Becerra donor PG&E's electricity is 35% more expensive than SMUD, and PG&E's executives have attorneys on speed dial in case they face charges of negligent homicide for incidents like blowing up a residential neighborhood in San Bruno, and burning down the ironically-named town of Paradise. Publicly-owned SMUD doesn't need to skimp on maintenance to goose profits like PG&E. (In fairness, Steyer says he wants competition to cure the price disparity, but that's not too likely for natural monopolies like utilities)

Becerra's donations include the following (quoted from X.com):
— $4,500,000 from the healthcare industry to oppose single payer 
— $1,000,000 from Chevron and Big Oil to keep gas prices high and increase oil drilling 
— $700,000 from private ambulance companies to rip patients off 
— $300,000 from Big Pharma to keep drug prices high

How committed is Becerra to corporate D's, as opposed to his own constituents? In 2016, as a superdelegate, he voted for Hillary Clinton in the Democratic convention, even though Bernie won his home district (CA-34). We could be charitable and say he thought he was making a political calculation, backing a winner rather than someone certain to lose, but that's a bit too charitable for me.

I'm not sure a progressive governor is what you want, but thought I'd fill in some of the blanks.

Will Rogers used to say, "If it weren't for lies, there wouldn't be any politics."  It's not much of a surprise that the political class tries to deceive the public into voting against their own interests--roughly like trying to persuade sports teams to score goals for their opponents. "Own goal" behavior is very common in political discourse, so...beware!

Tuesday, May 26, 2026

The History of the US vs. Iran

 

Artificial Sweetners' Harm

From Naked Capitalism

And there is evidence of harm. Diet soda drinkers (and that is overwhelmingly aspartame, although some use sucralose or stevia) :


A new study published in the Journal of the American Geriatrics Society found that people who drank diet soda gained almost triple the abdominal fat over a nine-year period as those who didn’t drink diet soda. The study analyzed 749 individuals 65 and older and were asked every few years how many cans of soda they drank every day and how many of those cans were diet or regular.

After researchers adjusted for factors such as diabetes, smoking and levels of physical activity, the study found that soda was a major factor in abdominal-fat gain. Participants of the study who did not drink diet soda gained about 0.8 inches around their waists, but those who drank diet soda gained 3.2 inches around their waist. Occasional soda drinkers gained about 1.8 inches.

https://communitycare.com/new-study-links-diet-soda-to-weight-gain-and-belly-fat-asp/

The WHO deems aspartame as possibly carcinogenic and recommend watching daily intake:

Assessments of the health impacts of the non-sugar sweetener aspartame are released today by the International Agency for Research on Cancer (IARC) and the World Health Organization (WHO) and the Food and Agriculture Organization (FAO) Joint Expert Committee on Food Additives (JECFA). Citing “limited evidence” for carcinogenicity in humans, IARC classified aspartame as possibly carcinogenic to humans (IARC Group 2B) and JECFA reaffirmed the acceptable daily intake of 40 mg/kg body weight.

https://www.who.int/news/item/14-07-2023-aspartame-hazard-and-risk-assessment-results-released

Monday, May 25, 2026

Sunday, May 24, 2026

The Inflation Conundrum

 (c) by Mark Dempsey

Myths are often at the foundations of nations. For example, George Washington actually didn't cut down a cherry tree and confess, "I cannot tell a lie." That's fiction, not history. Perhaps one of the most persistent current fictions is Milton Friedman's declaration that "Inflation is always and everywhere a monetary phenomenon." Like most of Friedman's economics, this is plausible, but false.  

Consider the dynamics of inflation. In an inflationary environment, people compete for something, bidding up the price. The more money they have, the higher that price can go. Missing from Friedman's proclamation: the scarcer the thing people are bidding for, the higher the price can go, especially if it's essential. So supply, not just demand is at least a factor.

And the plausible part of Friedman's declaration is the presence of a lot of money when inflation goes hyper. Take a look at a guy from Weimar Germany going to buy a loaf of bread:

wheelbarrowcash.jpg 

That's a lot of (government-issued) cash! 

But the hyperinflationary "over-printing" is not the whole story. The thing that initiated the inflation in Weimar Germany was not a central bank printing too much money. Before that occurred, French soldiers shut down the German industrial heartland, the Ruhr, because France objected to the Germans' tardiness in paying some WWI reparations. 

Germany already had a balance of payments problem from those reparations, and then they had their big manufacturing center shut down.  Those things--a shortage of goods and a balance of payments problem  predated the printing. (For more details about the Weimar inflation, read this.)

Something similar occurred in the other bout of hyperinflation often cited. Zimbabwe became independent, renaming itself from Rhodesia, and redistributed land previously farmed by its colonial masters. But agriculture in Africa isn't trivial. For example, unless you have an effective tsetse fly eradication program, European cattle die from sleeping sickness, the parasite tsetse flies carry. 

So because of their inept farming, Zimbabwe lacked food, and tried to import enough to feed its population. A shortage of goods accompanied by a balance of payments problem predated any excessive currency printing.

In fact, if you consult the (right-wing, Koch-funded, libertarian) Cato Institute, record of 56 hyperinflations throughout history, you'll find that such hyperinflations were never started by a central bank printing too much money.

Even the steepest recent US inflation--the 1970s--follows this pattern. Pre-fracking peak oil for the US occurred in 1971. The price of oil in 1971: $1.75/bbl. At that time, the US imported roughly 30% of its oil from OPEC. Following the 1973 Yom Kippur war, the Arabs decided to use the "oil weapon," and reduced their exports to the US. 

Because of a shortage the US couldn't overcome with domestic production, the price of oil quadrupled virtually overnight, peaking during the Reagan administration in 1982 at $42/bbl (about the pre-Iran-war price when adjusted for inflation). Reagan got lucky because shortly after that peak, Alaska's North Slope oil production came on line, and the price receded.

As for affordability, here's Corbin Trent's comment: 

"Affordability is not a regulatory problem. It’s a production problem. The Abundance answer is that markets respond to scarcity by adding capacity. The COVID lumber spike showed they don’t. Prices ran from $400 per thousand board feet to over $1,500 by May 2021. The classical story says producers reopen mills, build new ones, expand supply. None of that happened at scale. Mills shuttered after the Great Recession did not reopen. The producers pocketed the margin, ran the buybacks, and went back to bed. Lumber came back down only because demand cooled, not because supply caught up. Capacity today is what it was twenty years ago.

"[We] have to bring prices down, not wait for the market to add capacity at the price it likes. The way we have actually brought prices down on things that mattered has never once been through deregulation. It has always been a mission. The Arsenal of Democracy. The New Deal. The Space Race. Oak Ridge. The Manhattan Project. The TVA dam system. Rural electrification. During World War II, the Defense Plant Corporation financed over 2,300 industrial facilities worth $9.2 billion, roughly two-thirds of all new private industrial capacity added before and during the war. The Reconstruction Finance Corporation worked as a public bank, funding what private capital wouldn’t. We trained millions of nurses and welders and electricians as capacity build-outs, not funding rounds.

"Then we killed it. Successive administrations sold it off and called it efficiency. CEOs offshored the factories and called it shareholder value. Wall Street bought the husks and called it growth. None of this happened by accident. It happened on purpose, by people we can name, in service of a class of beneficiaries who are still cashing the checks.

"A handful of people are arguing for getting it back. Saikat Chakrabarti, running in California’s 11th, has published the cleanest version in a document called Mission for America. It calls for restoring the Reconstruction Finance Corporation as a public bank to finance the build-out we need. He’s also calling for public ownership of AI....Everything I’ve said so far would be true if AI didn’t exist. AI just sets the deadline.....

[Local note: Sacramento is now starting a public bank, and the Bay Area and other West Coast regions (Los Angeles, Seattle) are starting public banks too. Remember, by extending credit, banks create money, not necessarily inflation, especially if they lend for productive activities rather than speculation.] 

"If we lose another massive fraction of the workforce to displacement and the only tool we have is checks, those checks will chase the same scarce housing, the same scarce health care, the same scarce energy. The prices that are already crushing people will go ballistic.

"You cannot subsidize your way out of scarcity. Pour more money into a market with constrained supply and you don’t get more supply. You get higher prices. Health care subsidies don’t make Americans healthier. They make UnitedHealthcare and Aetna and CVS more and more powerful. Housing subsidies don’t make homes cheaper. They get capitalized into the asset, and Blackstone and Invitation Homes and Pretium take the spread.

"We have to make things. And we have to own the things that make the things. Otherwise Wall Street and the commodities markets bleed us dry, taking an exorbitant share for doing next to nothing. Public banking. Public capacity. Public ownership is the base everything else rests on.

"What America has in abundance is zeros in the bank accounts of a tiny minority. The things we need are scarce. The richest nation in the history of the world has built its wealth on stock prices, asset prices, and home equity. None of that produces a transformer or trains a nurse or frames a house. The wealth is there on paper but it’s absent in the physical world.

"We cannot solve the affordability crisis until we solve the scarcity crisis. Affordability and scarcity are incompatible."

So it's not as though there hasn't been inflation. Scarcity is at its root, though. As economic historian Michael Hudson observes "The guiding fiction in the idea that rising interest rates will slow price inflation by reducing bank credit creation and thus investment and employment. The fiction is based on the myth that banks help the industrial economy by creating credit to lend to companies to expand the economy. But that is not what banks do under [our current system of] finance capitalism. They lend against assets already in place and available to be pledged as collateral, for the purpose of buying more real estate, bonds and stocks. The effect of these loans is to inflate asset prices, not consumer prices."

Steve Keen's Economic Predictions


 

Thursday, May 21, 2026

AI Flunks

 

 

Update: How does AI harm humans?

from here:

"There are some really high-profile cases that I think are the tip of the iceberg—the teen suicides, AI psychosis, people spending immense amounts of time or money engaging with these AI chatbots that are designed to be incredibly sycophantic. I think those harms are already there." 

See Stuart McMillan's Supernormal Stimulus comic for a catalog of vulnerabilities.

Also worth remembering: "The inferior man thinks only of comfort; the superior man thinks only of virtue." - Confucius 

 

 

Wednesday, May 20, 2026

The Politics of Disgust Anand Giridharadas' The Persuaders: At the Front Lines of the Fight for Heards, Minds and Democracy

p.8 (ebook)

The [Russian] troll farm wanted Americans to regard each other as immovable, brainwashed, of bad faith, not worth energy, disloyal, repulsive. "The [Russian Internet Research Agency] IRA, knows that in political warfare disgust is a much more powerful tool than anger," [Darren] Linvill and [Patrick] Warren [scholars at Clemson University...leading analysts of Russia's US campaign] have written. "Anger drives people to the polls; disgust drives countries apart." 

...and obviously, more than just Russians are promoting digust. Giridharadas' book is about the people who have chosen to answer such political machinations. 

Monday, May 18, 2026

African Reality

 

Sunday, May 17, 2026

Limits to Capitalism

 (c) by Mark Dempsey

I just bought some sandwiches for a trip at Noah's Bagels.

Noah's sandwiches were previously delicious, as were their side dishes. And don't get me wrong, the bagels still are still delicious, but the filling and side dishes were second-rate.

After a little Googling, I discovered that Noah's chain first went public and was later sold to what appears to be a private equity firm. You can practically hear the bean counters crunching the numbers and eliminating the delicious side dishes (cole slaw, potato salad). But ya can't eat money! Now you can eat stale potato chips.

This is going around, too. Rubio's closed its California restaurants, blaming the higher ($20/hr) minimum wage. Actually, its private equity owners took on so much debt that it couldn't afford to pay its workers in California.

There's further evidence that homebuilders are colluding to keep land in short supply, even as rents rise faster than wages, and the US has the biggest homeless population since the Great Depression.

Almighty profit blesses such collusion, and even conspires to make sandwiches worse. This is one of the genuine limitations of capitalism.

 

The Affordable Housing Conundrum

(c) by Mark Dempsey

A local pundit recently wrote that affordable housing is nice to talk about, but difficult to build. The costs are exorbitant (he quotes a reader saying $400-$800/sq ft, excluding land!) and our resources are already stretched to their limits, never mind the bothersome question of where to get the money.

This discouraging line of talk was echoed by an HVAC technician's comment to this writer about affordable housing he worked on. The poor occupants "trashed" their homes, he said.

So let's clear up a few of the misconceptions that include "housing is too expensive," or "it's too difficult to build," and "it's unappreciated by poor people." Talk may be cheap, but it's important that it be accurate.

First of all, nationwide, there are more vacant homes than homeless. San Francisco has five times its homeless population in vacant homes. As for the expense, Google tells us that Sacramento's median home price is $339 per square foot, including land. And that's for built homes, not theoretical ones. New construction on large lots in a nice neighborhood in eastern Sacramento County sells for less than $370 per square foot, including the land. Overstating the costs or shortages is not helpful here.

Incidentally, "it seems kind of crazy that large homebuilders would be doing joint ventures with each other on land acquisition, when that could very easily lead to holding supply off the market and preventing smaller developers from competing to build cheaper homes." Yes, monopolies in land and building supplies are raising prices. The US stopped prosecuting most antitrust violations in the '80s. Markets aren't competitive if the players collude to raise prices.

And what about the money? The government makes all the dollars it needs whenever it needs them to pursue whatever priorities the governing class wants, whether it's affordable housing or warfare. Incidentally, the sentiment that "printing" money is inflationary is baloney, but let's save that conversation for a later article.

Actually, the lack of affordable housing is a public policy choice. This shortage began when Nixon stopped the feds from building (more) affordable housing, and, as he cut taxes on the wealthy roughly in half, Reagan cut HUD's affordable housing budget by 75%. The largest homeless population since the Great Depression isn't an accident; it's the product of the generations-long, bipartisan attack on the poor.

Won't the poor trash the housing, though? Yes, poor people are comfortable with squalor. They are not concerned about material things; that's why they're poor. The positive side of that attitude is that they're generous and compassionate, sentiments that would profit the wealthy if they ever chose to pay attention to them.

So building affordable housing without either mixing the poor and the rich populations to have neighbors pressure poor people to pay attention to the condition of their homes, and neighbors instruct rich people to be more compassionate and generous...or budgeting not enough maintenance if rich and poor are separate, is a subtle form of sabotage. Rich people get to say, "See! They don't appreciate the crumbs we let fall from our table!"

Incidentally, Finland gave its homeless population homes. Reportedly, 85% of the re-housed had jobs within six months of that change.

One of the key components for affordable housing is affordable land. Want to cut per-unit land costs in half? Build two units on the land. Why don't we do this?

Multi-family housing has problems that public policy makers are eager to ignore. Smaller or non-existent yards--that occupants would otherwise have to mow--mean people need bigger public parks. Parks, culture, and education are the kinds of public amenities the governing class has downplayed in the US for generations now. Public policy makers have done everything they can to say "We can't afford that cultural/educational stuff!" while assiduously casting the isolation and cultural deprivation of suburban life in concrete.

Just about all the complaining about overregulation and intrusive state requirements is overblown. Locally, land speculators seldom find zoning or regulations they can't change to make their bets pay off.

Building codes do increase costs, but not nearly enough to make homes as expensive as they are now. In fact, increased insulation and solar panels requirements make utility costs lower, and earthquake readiness makes insurance less expensive. Nevertheless, there is no shortage of complaining about the "cost" of such regulation.

So to deal with the homeless (40% of whom are employed) and the homes for the poor and even the not-so-poor:
  • We don't necessarily need more homes; we need to distribute them more evenly. Vancouver, Canada, began taxing homes left vacant to restrict supply and boost rents, and rents receded after Vancouver implemented the tax. California's governing class would like you to ignore this, but it's true.
  • We need to be realistic about how much affordable homes cost to build, and understand that money is always available for society's priorities, without necessarily inflating other costs. USDA used to make ("Farm Home") loans subsidized so even farm workers could afford to own their own house. Needless to say, the Farm Home loans are seldom funded.
  • We need to expect poor people will be less attentive to material conditions, and account for that in any affordable housing plan, whether mixing the poor with the rich (multiple units among the mansions) or stand-alone affordable housing (with a larger maintenance budget).
  • To reduce land costs, and not incidentally make such things as economically viable neighborhood commerce and public transportation possible, we need denser housing than sprawl. If there aren't enough riders within a comfortable walk of transit stops, then we'll just roll around a bunch of empty buses or trains. The lower threshold is about 11 units per acre, says Berkeley planner Robert Cervero. That's slightly more than duplexes, and amounts to an occasional 4- or 8-plex among the single-family homes.
  • Amenities like parks, culture, and education are not optional for more concentrated housing to work. We've tried defunding the "public realm"-- what's available even to the poor--for decades now. That defunding began with "white flight" (i.e., racism)--but it's a dead end.
So...that's what is not just possible, it's necessary. Will it happen? Intelligent pundits discourage it, and try to persuade other it's not even possible, ignoring accuracy in the process. Facing up to the obvious is not automatic.

Scoring a goal for the opposing team is called an "own goal." When people vote against their own interests, it's a version of the "own goal." A large part of political commentary tries to deceive people into "own goal" behavior so the plutocrats can continue to direct resources, even resources they don't use in a tragic pursuit of conspicuous consumption. That's the current state of play.

Sunday, May 10, 2026

Cowboys & Conquistadors vs. Indians

 Here's Charles Mann's short version of his book 1491 delivered as a lecture. Highly recommended.

 


 

Saturday, May 9, 2026

How to Master Life

From X/Twitter

A Hungarian psychologist raised three daughters to prove that any child could become a chess grandmaster through early specialization. He succeeded. Two of them became grandmasters. One became the greatest female chess player who ever lived. 

Then a sports scientist looked at the data and found something nobody wanted to hear. 

His name is David Epstein. The book is called "Range." 

The Polgar experiment is one of the most famous case studies in the history of deliberate practice. Laszlo Polgar wrote a book before his daughters were even born arguing that geniuses are made, not born. He homeschooled all three girls in chess from age four. By their teens, Susan, Sofia, and Judit were dominating tournaments against grown men. Judit became the youngest grandmaster in history at the time, breaking Bobby Fischer's record. The story became the gospel of early specialization. Pick a domain young, drill it hard, and you can manufacture excellence. 

Epstein opens his book by telling that story honestly and then quietly demolishing the conclusion most people drew from it. 

Chess works that way. Most things do not. 

Here is the distinction that took him four years of research to articulate, and that almost nobody who  quotes the 10,000 hour rule has ever read. 

There are two kinds of environments in which humans develop expertise. Psychologists call them kind and wicked. A kind environment has clear rules, immediate feedback, and patterns that repeat reliably. Chess is the cleanest example. Every game ends with a winner and a loser. Every move is recorded. The board never changes shape. The pieces never invent new ways to move. A child who plays ten thousand games will see most of the patterns that exist in the game, and pattern recognition is exactly what chess mastery is built on. 

A wicked environment is the opposite. Feedback is delayed or misleading. Rules shift. The patterns that worked yesterday may be exactly the wrong patterns to apply tomorrow. Most of the real world looks like this. Medicine is wicked. Investing is wicked. Building a company is wicked. Scientific research is wicked. Almost every job that involves a complex changing system with humans in it is wicked. 

The Polgar sisters trained in the kindest environment any human can train in. Their success was real and the method was correct. The mistake was generalizing the method to fields where the underlying structure of the environment is completely different. 

Epstein's research is what made the implication impossible to ignore. 

He looked at the careers of elite athletes outside of chess and golf and found that the pattern was almost the inverse of what people assumed. The athletes who reached the very top of their sports were overwhelmingly people who had played multiple sports as children, specialized late, and often switched disciplines well into their teens. Roger Federer played squash, badminton, basketball, handball, tennis, table tennis, and soccer before tennis became his focus. The kids who specialized in tennis at age six and trained year-round for a decade mostly burned out, got injured, or topped out at lower levels of the sport. 

The same pattern showed up everywhere he looked outside of kind environments. Inventors with the most patents had worked in multiple unrelated fields before their breakthrough work. Comic book creators with the longest careers had drawn for the most different genres before settling. Scientists who won Nobel Prizes were dramatically more likely than their peers to be serious amateur musicians, painters, sculptors, or writers. 

The skill that mattered in wicked environments was not depth in one pattern. It was the ability to recognize when a pattern from one domain applied unexpectedly in another. That kind of thinking cannot be built by drilling a single subject. It can only be built by accumulating mental models from many subjects and learning to move between them. 

The deeper finding is the one that should change how you think about your own career. 

Specialists in wicked environments often get worse with experience, not better. Epstein cites studies of doctors, financial analysts, intelligence officers, and forecasters showing that years of experience in a narrow domain frequently produce more confident judgments without producing more accurate ones. The expert builds elaborate mental models that feel comprehensive and turn out to be increasingly disconnected from the actual structure of the problem. They stop noticing what does not fit their framework. They mistake fluency for understanding. 

Generalists do better in wicked domains for a reason that sounds almost mystical until you understand the mechanism. They have less invested in any single mental model, so they abandon broken models faster. They are used to being a beginner, so they are not threatened by the discomfort of not knowing. They have seen enough different domains that they can usually find an analogy from one field that unlocks a problem in another. The technical name for this is analogical thinking, and the research on it is one of the most underrated bodies of work in cognitive science. 

The single most useful sentence in the entire book is the one Epstein puts almost as a throwaway. 

Match quality matters more than head start. 

A person who tries six different fields in their twenties and finds the one that genuinely fits them will outperform a person who picked one field at fourteen and stuck to it on willpower alone. The lost years were not lost. They were the search process that produced the match. Every field they walked away from taught them something they later imported into the field they finally chose. 

The reason this is so hard to accept is cultural, not empirical. We tell children to pick a path early. We reward the prodigy who knew at six. We treat the late bloomer as someone who failed to launch on time, when the data suggests they were running an entirely different and often more effective optimization process underneath. 

The Polgar sisters were not wrong. The conclusion the world drew from them was. 

If your environment is genuinely kind, specialize early and drill hard. If it is wicked, and almost every interesting human problem is, then the people who win are the ones who refused to specialize until they had seen enough to know what was actually worth specializing in. 

You are not behind. You were running the right experiment all along.

Monday, April 27, 2026

The Healthcare Update

 

Sunday, April 26, 2026

"Gambling is a tax on ignorance." - Warren Buffett

 

Friday, April 24, 2026

An Italian Economist: Why Capitalism Isn't Natural or Inevitable, It's Enforced.

 


Jail Talk

(c) by Mark Dempsey 

A "listening session" for the Sacramento County Jail Master Plan (PSJA@saccounty.gov) just occurred. It sought to shape the jail's future, and a presentation, eventually, to the County's Supervisors. The county is motivated to change because it lost the Mays Decision, a federal lawsuit filed on behalf of mistreated prisoners.

The Mays Decision itself doesn't request bigger facilities; jail personnel are the problem. Public comments said this remains unchanged, and jailers remain abusive, even denying inmates their medication.

In fairness to the County, the jail is full. However, the County did not mention that 60%-80% of the prisoners are not convicted of anything except being too poor to afford bail. The US and the Philippines are the only two countries that require cash bail. Illinois and Washington, D.C., have abandoned it for selected crimes without bad consequences. The public, not the County, brought up eliminating cash bail.

The US incarcerates at five times the world's per-capita average, seven times more than Canada, and Canadian crime rates are lower. Prisons do not prevent crime.

The only prisoners described in the County's presentation were mentally ill or addicted. There was no mention of anything to address the poverty that prevents prisoners from posting bail. That's despite the largest homeless population since the Great Depression--driven primarily by poverty, not mental illness; in a country where 40% of the population can't afford a $400 emergency, and 60% of workers live check to check.

Santa Clara County has Destination: Home, which supplies emergency funds to those on the verge of homelessness. It took the public, not the County, to bring this up.

Will the "listening" produce any change in the County's willful ignorance about poverty driving people to desperate behavior like crime? Let's just say I'm not holding my breath.



From William Murphy here:

The United States does not have a “crime problem” in the way it’s usually framed. It has a social organization problem—a system that reliably generates the conditions under which crime becomes rational, predictable, and, in many cases, unavoidable. ....

When large sections of a population face economic precarity, unstable housing, inadequate healthcare, and underfunded education, those conditions shape behavior. Not in a simplistic, deterministic way—but in a probabilistic one. The more pressure you apply to a system, the more predictable its outcomes become.

In the U.S., those pressures are intense:

  • Wages that lag far behind cost of living
  • Housing markets that function as speculative assets rather than human necessities
  • Healthcare tied to employment or priced out of reach
  • Education systems stratified by zip code
  • A labor market that oscillates between exploitation and exclusion

 Under those conditions, “crime” is not an anomaly. It is one of several adaptation strategies.

The key point: these outcomes are not bugs in the system. They are features.....

And it leads to a fundamental contradiction: the same system that produces the conditions for crime also deploys force to contain its consequences. ...



Under capitalism, certain social conditions are not just tolerated—they are functional:

  • Cheap labor requires economic vulnerability
  • High rents require housing scarcity
  • Private healthcare profits require limited access
  • Consumer markets thrive on debt and instability

These dynamics generate inequality. And inequality, in turn, generates crime.

At the same time, entire industries profit from the management of crime:

  • Private prisons
  • Surveillance technologies
  • Security services
  • Insurance markets

This creates a feedback loop where the system has no structural incentive to eliminate the root causes of crime. It only has incentives to manage and monetize its effects.

 
If the problem is structural, then the solution has to be structural. Not cosmetic reforms, not rhetorical shifts—
material changes.



Here’s what the evidence shows works:
1. Economic Stability - Cash transfers, wage increases, and employment programs consistently reduce property crime and, in some cases, violence.

2. Housing as a Right - [Also] Lowers overall system costs

3. Universal Healthcare Mental health issues and substance use are deeply intertwined with crime, particularly at the street level.Treating these as criminal issues rather than health issues produces predictable results: cycling people through jails without addressing the underlying causes.

4. Education and Youth Investment - These are not quick fixes. They are long-term investments.

5. Community-Based Violence Reduction - ...don’t rely on coercion. They rely on legitimacy.

6. Justice System Reform The current system often exacerbates the very problems it claims to solve.

  • Ending cash bail for low-level offenses
  • Reducing excessive sentences
  • Expanding parole and reentry support
  • Using restorative justice where appropriate


The goal is not to eliminate accountability—but to make it constructive rather than purely punitive.

7. Redefining the Role of Police - Not every social problem requires an armed response.
  At the same time, accountability for use of force must be real, not symbolic.

The Real Question ...The deeper question is this: What kind of society are we trying to build? One that manages inequality through force? Or one that reduces inequality so that force becomes less necessary?



.... Crime is not an isolated pathology. It is a system output.



Update:

US vs. Chinese public policy

The US:   Matt Stoller explains the history of why US public policy has been twisted to serve the billionaires here . Excerpt: "Someone...