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Slopulism is taking over America

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Would you like to see an example of a badly conceived policy? Here you go:

The bill to require discounts for self-checkout will probably not pass. But what’s notable is that if this bill did pass, it would have exactly the opposite of the effect its creators want. The stated justification is that customers are doing unpaid labor by scanning and bagging their own groceries, and that this discount would compensate them for that effort. But the bill is part of a more general effort to disincentivize automation in the retail industry, in order to protect working-class jobs:

Rhode Island was the first state in the U.S. to enact statewide self-checkout restrictions with its Restrictions on Self-Service Checkout Stations Act, which takes effect January 1, 2027. The act requires grocery stores to have at least one human-operated checkout station for every three self-service stations during peak hours…Similar legislation has either been introduced, enacted or considered in additional states including California, Massachusetts, Connecticut, Washington, and Ohio.

The standard objection to this bill, I suppose, would be that self-checkout already gives shoppers a discount, because it allows stores to save money on hiring human labor, and that these savings get passed on to consumers in the form of lower prices. That argument is correct as far as it goes, but it means the debate ends up as one of technocracy versus populism — protecting the livelihoods of a few cashiers versus giving a huge number of consumers very slightly lower prices. There’s no simple or easy conclusion to that debate.

But in the case of New York’s proposed self-checkout discount, the problem is that the bill would actually make grocery stores fire human cashiers in favor of more self-checkout.

To understand why this is true, first imagine an incredibly extreme version of the policy. Imagine that instead of 10%, you made a law forcing grocery stores to give a 90% discount for self-checkout. This is exactly the same as forcing stores to charge 10x for using a human cashier. Who would pay 10x for groceries, just to use a human cashier? Basically no one. So everyone would go use the self-checkout machines, and stores would have no need for human cashiers at all.

But wait, you may be thinking. How could any store afford to give a 90% discount on groceries? The same way they give discounts for seniors and students at movie theaters. You just raise the sticker price, so that the price people actually pay after the discount is the same as before. So instead of keeping human-cashier prices the same and cutting prices for self-checkout, what stores would actually do if you made them give 10% discounts for self-checkout is to raise prices across the board — not by 10%, but by enough so that overall revenue is just about the same as it was before.

How do we know this is what will happen? Because the grocery store industry is very competitive. Profit margins are almost always between 1.5% and 2.8%, which is very low compared to the average industry:

Source: FMI

It’s not just profit margins that demonstrate this — there are tons of grocery stores, and new ones enter the market all the time. This means that if grocery stores tried to respond to the New York bill by getting rid of self-checkout and using only human cashiers — in order to charge higher prices and make higher profits — other stores would undercut them by offering self-checkout with big discounts. People would flock to those other stores, and the stores that tried to overcharge would lose business until they, too, put in the self-checkout machines.

This is kind of like if you told grocery stores to charge 10% more for Skippy peanut butter than for Jif peanut butter. Obviously stores would want to stock more Skippy, because they’d earn more money on each sale. But obviously consumers would want to buy more Jif, because it was cheaper. At the end of the day, the consumers would win, because consumers tend to win out when an industry is highly competitive. Some people would still buy Skippy, because some people just really like Skippy more, but overall, forcing one brand of peanut butter to cost more than another brand means you’ll have less of it on the shelves.

By the exact same reasoning, forcing stores to charge more for purchases scanned by human cashiers will end up getting a lot of cashiers fired and replaced with self-checkout machines.

As policies go, this example isn’t particularly hard to explain, or to understand. If you ask any economist, or any good AI, they’ll give basically the same answer, in different words. It would be a good question on an undergrad microeconomics exam. But when I tried to explain this on X, some people had a lot of trouble understanding:

The idea of a 10% discount on self-checkout as a way to incentivize human employment is pure “slopulism” — stuff that seems like populism, but wouldn’t achieve the results that people want from the policy.1 It’s snake oil that sells well based on people’s inability to see the consequences of what they’re being sold.

Slopulism is an inevitable outgrowth of populism. Once people decide that technocrats, elites, experts, and gatekeepers aren’t worth listening to, they become vulnerable to all sorts of policy scams. In general, these scams fall into two categories:

  1. Accidental scams, where the people making the policy just don’t understand what they’re doing

  2. Ideological scams, where ideologues sell the public on an ideologically-driven policy by pretending it offers benefits that it doesn’t really offer

The second of these is more dangerous than the first. Slopulism that arises out of pure ignorance is very hard to correct, and social media — which elevates the dumbest and loudest at the expense of the most well-informed — probably makes it harder. But in the end, patience, education, and reason can overcome accidental slopulism — and AI may help a lot.

But when slopulist ideas are being promoted by smart people with ulterior motives, it can be a lot harder to wake the populace up. At that point, there’s the danger that slopulism becomes a bipartisan equilibrium, with each party’s ideologues executing a coup against the reasonable moderates by appealing to slopulist instincts.

Accidental versus ideological slopulism

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gangsterofboats
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Banning data centers would blow up the U.S. economy

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Photo by Chad Davis via Wikimedia Commons

My last post mentioned some of the more extreme cultural stances of Wisconsin gubernatorial candidate Francesca Hong. Hong’s defenders complained that the cultural issues were getting far too much exposure, and that pundits should instead be focusing on her main issue: a pause on data center construction.

It’s pretty amazing that a pause on data center construction has become such a consensus, middle-of-the-road issue stance that it’s the thing Hong’s supporters would rather talk about! But it’s true. Poll after poll shows that Americans are decisively opposed to data center construction in their area, and the issue is becoming more lopsided by the day:

An August 2025 survey conducted by Embold Research for Heatmap News…found that 43% of Americans said they would support the construction of a data center near them, while 42% were opposed…The latest survey, conducted last month, found a complete collapse among supporters: Today, just 21% said they support data center construction near them, while 71% are opposed — including 55% who say they are strongly opposed…

A Gallup poll released in May showed the share of Americans who oppose the construction of data centers in their area, 71%, was higher than the zenith of the opposition to the construction of nuclear power plants, which topped out at 63% in 2001…A survey from Marquette Law School found 71% of voters nationwide said the costs of data centers outweigh the benefits, while 29% said the reverse. Voters said the development of AI is a bad thing for society, rather than a good thing, by a 65%-35% margin…A YouGov poll taken for The Economist found just 23% of voters who said the construction of data centers are good for the country, while 48% said they are bad for the country. That same poll found 60% opposed to building a new data center in their community.

The opposition is incredibly bipartisan, with both Republicans and Democrats lining up to block data center construction. New York put a moratorium on data center construction in July, while Texas followed suit earlier this month.

So far, there has been no strong move toward a federal data center pause, and the bills that have been introduced in Congress are pretty mild stuff. That’s why as long as the movement to stop data centers stayed confined to blue states, it didn’t really matter much. It was just another instance of a very traditional story that we’ve all come to expect — states like New York basically ban new physical industries, so those industries go to places like Texas. The red states get the economic activity they want, the blue states get the stasis they want, and everyone is happy.

Nor would a few state-level bans affect the progress of AI. AI is a creature of bits and bytes; it lives in the cloud, and it doesn’t care about the physical location of the data centers that represent the lobes of its vast, alien brain. Data centers in Texas would sustain AI progress and AI applications just as well as data centers in New York.

Except now Texas is pausing data centers too. If almost all states ban data centers — or if the federal government gets involved in a major way — there could be major consequences for the U.S. economy. In the long run, I think limiting the physical resources devoted to AI would be a good thing; in the short run, it will simply clobber the already-wobbly U.S. economy. A movement against data centers has the seeds of something good and useful, but it has huge risks that most Americans seem not to realize yet.

The big danger is that data center bans will choke off the main engine of U.S. growth, throwing a lot of Americans out of their jobs and putting a hole in Americans’ retirement savings. But before I talk about that, I should talk about why I think limitations on data centers aren’t actually a crazy idea.

Why data center limitations make sense in the long run

A couple of years ago, I wrote that no matter how good AI gets, comparative advantage will still mean humans are paid to do something:

[A]s AI gets better and better, and gets used for more and more different tasks, the limited global supply of compute will eventually force us to make hard choices about where to allocate AI’s awesome power…This is the concept of opportunity cost…When AI becomes so powerful that it can be used for practically anything, the cost of using AI for any task will be determined by the value of the other things the AI could be used for instead

So…because of comparative advantage, it’s possible that many of the jobs that humans do today will continue to be done by humans indefinitely, no matter how much better AIs are at those jobs. And it’s possible that humans will continue to be well-compensated for doing those same jobs.

But how well would humans be paid for those jobs? If people don’t get paid enough to live a decent life, it’s still game over for humanity. “Living a decent life” basically requires some minimum share of natural resources. So as I explained in my post, the real danger isn’t that AI will render humans obsolete; the danger is that AI will render humans too expensive to sustain:

The example of horses scares a lot of people who think about AI and its impact on the labor market…Horses’ comparative advantage was in pulling things, and yet this wasn’t enough to save them from obsolescence…The reason is that horses competed with other forms of human-owned capital for scarce resources…The key resources that became scarce were urban land (for stables), as well as the human time and effort required to raise and care for horses in captivity. When motor vehicles appeared, these scarce resources were more profitably spent elsewhere, so people sent their horses to the glue factory.

When it comes to AI and humanity, the scarce resource they compete for is energy. Humans don’t require compute, but they do require energy, and energy is scarce. It’s possible that AI will grow so valuable that its owners bid up the price of energy astronomically — so high that humans can’t afford fuel, electricity, manufactured goods, or even food. At that point, humans would indeed be immiserated en masse.

Recall that comparative advantage prevails when there are producer-specific constraints. Compute is a constraint that’s specific to AI. Energy is not. If you can create more compute by simply putting more energy into the process, it could make economic sense to starve human beings in order to generate more and more AI.

In fact, things a little bit like this have happened before. Agribusiness uses most of the Colorado River’s water, sometimes creating water shortages for households in the area. The cultivation of cash crops is thought to have exacerbated a famine that killed millions in India in the late 1800s. In both cases, market forces allocated local resources to rich people far away, leaving less for the locals.

In fact, this was the real point of my post. The fundamental danger isn’t human obsolescence, it’s that humans will be outcompeted for scarce natural resources.

There are a couple of obvious ways to guard against that danger. The first is to redistribute the income from AI to human beings, so that humans can continue to afford all the resources they need in order to live and flourish. Another is to reserve sufficient natural resources for exclusively human use.

Data centers use a lot of natural resources, and people know it. Resource use consistently ranks at the top of why people try to ban data centers in their area:

Respondents [to Gallup] said they opposed data center construction because of water usage (18%), energy consumption (18%) and higher utility bills (15%)…More than a third [of respondents to Pew], 38%, said data centers were mostly bad for home energy costs.

Interestingly, water isn’t one of the resources AI competes with humans for — at least, not yet. As Andy Masley has explained at length, data centers don’t actually use much water at all:

Andy Masley
The AI water issue is fake
AI data centers use water. Like any other industry that uses water, they require careful planning. If an electric car factory opens near you, that factory may use just as much water as a data center. The factory also requires careful planning. But the idea that either the factory or AI is using an inordinate amount of water that merits any kind of boyco…
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The reason, of course, is that the water in data centers just gets recycled again and again. Data centers use water for cooling — the water runs through the data center, it absorbs heat and evaporates into steam, and then it dumps the heat outside and cools back into water again, and cycles through. Basically, data centers are just using that same water over and over again. Yes, a little bit evaporates away and has to be replaced, but only a little bit.

But the energy concern is very real! Data centers already account for more than 7% of U.S. electricity usage, and the percentage appears to be on an exponential growth path. Data center energy use is projected to surpass various household uses — air conditioning, lighting, refrigeration, etc. — in a matter of years:

Source: EIA

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gangsterofboats
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The poverty of anti-tech thought

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It has come to my attention that the noted political scientist Henry Farrell has been writing some very testy responses to me. The first two, in 2024, totally slipped by unnoticed:

Programmable Mutter
Dr. Pangloss's Panopticon
So Noah Smith has a quite negative review of Acemoglu and Johnson’s recent book, Power and Progress, a book that I myself liked very much. Before letting rip, Noah says nice things about Acemoglu and Johnson, and I’ll do the same here for him. There are a lot of people on the left who detest Noah, but I know him to be a genuinely decent person. What he…
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Programmable Mutter
Power: A Primer for Perplexed Economists
Attention Conservation Notice: Much of what is said in this post was said already in an earlier one. So if you’ve read that, you may not want to read this. On the other hand, this is blunter and slightly shorter…
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Thanks to the rise of Substack Notes, however, I was able to see the most recent installment in the sequence, which is mostly a repost of the first installment:

Programmable Mutter
Noah Smith's Review of Power and Progress is Very, Very Bad
I didn’t expect to have more uncomplimentary things to say about the unfortunate intellectual relationship between (a few) economists and (a few) Silicon Valley billionaires right away. But Noah Smith republished his review of Daron Acemoglu and Simon Johnson’s…
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I apologize for missing the first two when they came out, and I’ll try to respond to these as well. But first let me note that all three of Henry’s blog posts are responses to my review of the book Power and Progress, by Daron Acemoglu and Simon Johnson, which I first wrote in 2024 and then republished recently:

Power and Progress was a strong contender for the worst nonfiction book I’ve ever read all the way through,1 though of course that ranking suffers from selection bias, since I’ve quit many worse books before finishing. I feel an irrational need to somehow make up all the hours I spent reading this ultimately unenlightening tome, which is probably why I took the time to write a 7,000-word critical review. At the very least, I was able to have some fun critiquing some abstruse arguments by some highly influential authors. And thanks to Henry, I get to have even more fun arguing about someone else’s arguments about my arguments! Thank you, Henry! I’m getting steadily less regretful about making myself finish that book.

At this point, if you’re still reading this post, you’re probably asking “Why is this interesting to me, someone who has not read Power and Progress and have never heard anyone bring it up?”. Well, the honest answer is that it’s probably not interesting, and you should probably be taking care of a pet rabbit instead of reading this post. But I suppose there’s one reason it might be interesting, which is that over the past decade or so, a fairly large portion of the left-leaning intellectual class in America has become fairly-to-very resentful of the American tech industry, and has spent an enormous amount of intellectual effort on criticizing that industry. Both Power and Progress itself, and Henry’s defense of the book, channel those ideas and appeal to that sentiment.

The core conceit of anti-tech thought is that a class of wealthy industrialists — the “techbros”, if you will — is hurting society by building and investing in technologies that have major negative side effects, and that the solution is to bring these industries under greater democratic control. Regular readers will know that I actually agree with that idea, in some form. I’ve written at length about how the combination of smartphone and social media technology has broken many things about our society. I’ve expressed concern about the catastrophic risks associated with AI technology, and devoted a fair amount of thought to AI’s potential to cause radical inequality. And I’ve advocated for all of those risks and harms to be addressed with policy — policy enacted by a democratically elected government.

Yet despite this, Henry thinks of me as a panglossian techno-optimist:

Dr. Pangloss is the parodic Enlightenment thinker who keeps on insisting that everything is for the best in the best of all possible worlds, as disaster and catastrophe unfold around him…Noah’s style of economics has a blind spot about panopticons.

As far as I can tell, there are two reasons that Henry thinks this. One is that he thinks I discount the political and social downsides of ubiquitous digital surveillance:

The panopticon may indeed have efficiency benefits. People can get away with far less slacking, if it works as advertised. But it also comes with profound costs to human freedom. And the technologies that are at the heart of the book’s argument - machine learning and related algorithms - bear a strong and unfortunate resemblance to Bentham’s panopticon. They too, enable automated surveillance at scale, perhaps making hierarchy and intrusive surveillance much, much easier and cheaper than they used to be…

Nobody particularly wants to work in an environment where algorithms are perpetually surveilling them, deciding whether they are hired or fired, with little or no recourse to human decision makers. From the perspective of management, algorithmic bedshitting is wonderfully efficient! It costs less, and is much less of a pain in the ass. And if drivers have to piss into bottles in their vans because they fear being punished by the algorithms, then so be it. This is a cost that they pay, not investors, nor managers, nor customers. Of course, human beings who care about fairness and dignity and such are likely to have a different sets of responses.

Henry is chiefly worried not about the death of privacy in and of itself, but about how ubiquitous digital surveillance could enable greater political and social control. He is worried about Big Brother. Harsher monitoring of workers is one example of that, but it’s certainly not the only example — already, in China, we can see ubiquitous monitoring being used as a tool of social control, and it’s not good.

To be fair to Henry, he’s got me here. I do sometimes worry about the advent of ubiquitous surveillance, but I’ve never really thought systematically about it, or written about it in detail. This was partly because actually creating privacy in the modern age seems like a hopeless task; to a rounding error, all of American society has welcomed Big Brother into their pockets, turned on “track location”, accepted cookies, uploaded their nudes to Snapchat, poured out their deepest emotions over Gmail and Microsoft Teams and Zoom, installed Chinese webcams in their houses, and in general exposed every bit of their lives to a vast, impersonal machine that at some level is owned by Elon Musk, Jeff Bezos, Mark Zuckerberg, etc.

What can I say or do that would alter this brute fact — that humanity has once again chosen to give their lives over to the machine? Progressives have been howling about tech company surveillance for over a decade, but they all still have The iPhone in their pockets. Shoshana Zuboff wrote a book about surveillance capitalism, with the main result being that people can now remark that Shoshana Zuboff wrote a book about surveillance capitalism.2 Spending my days carefully considering the social downsides of the fact that everyone puts their whole existence online feels like shooting nerf darts at an oncoming freight train.

So to be fair to Henry here, this is an important topic, and I should think more about it. I promise to write at length about universal surveillance in the future. But to be fair to myself, Power and Progress doesn’t really focus on the danger of panopticons either. Despite Henry’s claim that Acemoglu and Johnson “invoke the metaphor of the panopticon early, and return to it, explicitly or implicitly, throughout”, they only discuss digital surveillance for three pages (pp. 320-322 in the hardcover), and they only talk about it in the context of intensive monitoring of workers. As far as I can tell, they never once address Henry’s core concern, which is that digital surveillance will lead to broad political disempowerment.

So I only feel a little bad about not mentioning that in my review.

Am I a toady for the techbros?

Anyway, in addition to not thinking enough about panopticons, Henry thinks that I am Panglossian because I am not sufficiently alarmed by the power and the malevolence of the techbro class:

Noah has spent quite a lot more time in Silicon Valley than I have. I’d be startled if he hasn’t repeatedly seen punters fawning over self-evidently idiotic ideas propounded with great confidence by Silicon Valley founders and VC stars. I’ve seen a remarkable amount of this meself - and I’m only in SV occasionally (of course, Washington DC, where I live, has its own versions of this pathology). One of the great virtues of Margaret O’Mara’s fantastic history of Silicon Valley, is that it discusses how hype and lobbying as well as technological advances helped get Silicon Valley up and running…As I read it, this dynamic is the engine that drives Acemoglu and Johnson’s book - but it doesn’t feature at all in Noah’s summary…

Acemoglu and Johnson’s core claims, as I read them are…That the debate about technology is dominated by techno-optimists…That this dominance can be traced back to the social influence and agenda setting power of a narrow elite of mostly very rich tech people…That their influence, if left unchecked, will lead to a trajectory of technological development in which aforementioned very rich tech people likely get even richer, but where things become increasingly not-so-great for everyone else…

According to e.g. Rob Reich, democracy itself is an unappealing notion to many key people in Silicon Valley. The trajectory of technology, politics and growth that they want to direct us toward is not one that I actually want to be on. And I suspect that if Noah thinks about it a little, it isn’t one that he wants to be on either.

Let us ignore for a moment the fact that Henry sees the political opinions of the techno-industrialists as an anti-democratic monolith as well as the patent absurdity of citing Robert Reich as an authority on those opinions. (Update: Fortunately, it turns out that this is NOT the Robert Reich who shouts badly supported progressive memes on social media, but a Stanford scholar who makes a living criticizing philanthropic activities by rich people. Whew!!) Instead, let us merely observe that Henry sees the techbros, collectively, as an enemy of democracy, dignity, freedom, and so forth.

Henry perceives me as being too trusting of, enamored with, or favorably disposed toward this class of people. You can tell this by the header image he used on his most recent post. It’s a screenshot of a tweet of mine from last year:

This screenshot makes it seem as if I am gushing with adulation for Elon Musk. But if you go to the actual tweet, you can see the context:

I will leave it to the reader to decide whether I was gushing with genuine adulation for a man who just told me “Fuck you” and called me a liar, or whether I was teasing the world’s richest industrialist for spending his time raging at bloggers on his own social media platform.

I doubt Henry Farrell actually saw the context of my tweet before he posted it. I know Henry fairly well; he is a good man, and not a malicious liar. He would not purposefully take a tweet out of context in order to falsely imply to his readers that I was gushing with adulation for Elon Musk. Instead, I strongly suspect that he saw someone else post that screenshot — probably on Bluesky or in some other lefty space — and simply assumed that it represented what whoever posted it wanted him to think it represented.

The reason I bring this up is not to execute a “gotcha” on Henry (though you have to admit, the full screenshot is kind of amusing). The reason I bring this up is to suggest that Henry’s perceptions of this debate are too clouded by class enmity toward the techno-industrialists and toward anyone who seems to make excuses or carry water for them.

I see this as symptomatic of a broader intellectual disease on the American left. Liberals have always been rightfully suspicious that the super-rich would use their wealth to sway political opinion. But before the 2016 election, attitudes toward tech companies were broadly benign on the left. What changed was the narrative that disinformation (“fake news”) on Facebook swung the election to Trump. An easy way to see the shift in sentiment is to look at New York Times coverage of Facebook before and after:

Source: Vox

2016 was a trigger, but it wasn’t the sole cause of the breakup between lefty intellectuals and tech. There were many other forces pushing in that direction — conflicts over progressive values within tech companies, anger over rising rents due to tech companies moving into big cities, rich technocapitalists increasingly getting involved in policy through philanthropy and bumping up against existing players, and probably some resentment stirred by skyrocketing inequality among the educated classes.

The 2010s also saw the rise of the new antitrust movement — also called the New Brandeis movement — which made Big Tech its main target. The New Brandeisians explicitly framed antitrust as being about political power — the fear that companies would use their vast profits to buy elections and favorable legislation, or to influence society in other ways. The basic idea was to break up companies like Facebook not in order to reduce consumer prices, but in order to prevent those companies from destroying democracy. This approach didn’t win many victories against Big Tech in court — U.S. antitrust law doesn’t leave any room for breaking companies up for political reasons.3 But it did leave an intellectual legacy on the left.

Among many left-leaning intellectuals — if not among the general Democratic-voting public4 — animosity toward the techno-industrialist class has become utterly entrenched. You can go up to a liberal Resistance Mom in small-town Iowa and say you think Google and Amazon are great for America, and you’ll probably be fine. But if you say this at a lefty policy wonk conference, you will likely be immediately pegged as a toady for the techbros.

I believe that this class animosity has reached the point where it’s beginning to cloud some intellectuals’ judgement. Healthy suspicion of the influence of money in politics is one thing; seeing all of economic history as a clash between rich technologists and democracy is just silly. This, ultimately, was where Power and Progress failed as a book — it tried so hard to squeeze the entire history of technology into a post-2016 anti-techbro narrative that it ended up making numerous poorly supported claims and engaging in highly questionable historiography.

It also led to the book’s bizarre concept of “power”.

Why “power” shouldn’t mean “persuasiveness”

Most people would probably think that power involves the ability to coerce someone into doing something they don’t want to do — either to threaten them with violence, or to use your institutional authority to order them around, or something like that. If I convince you to change your mind, that doesn’t seem like power to me.

Except when Acemoglu and Johnson talk about the “power” that techno-industrialists wield, what they actually mean is persuasion. Here’s what I wrote in my book review:

The authors’ historical examples of [instances] when power determined the distribution of the benefits of technology include…the cotton gin increasing slaveowners’ profits in the American South, or lords extracting agricultural surplus from peasants in medieval Britain. These are instances of compulsion

But Acemoglu and Johnson also spend a lot of time arguing that persuasion is also a form of power. They cite instances in which techno-optimists and businesspeople in 18th century England and 21st century America persuaded the public to enact pro-business policies, through articles, speeches, conversations, and so on…

The authors don’t venture to say exactly why these techno-optimists’ pro-business vision prevailed — they write that “an idea is more likely to spread if it is simple, is backed by a nice story, and has a ring of truth to it,” but they admit that “quite a bit of this process [of persuasion] is random,” and declare that “you are enormously lucky if you get the right idea, with just the right ring to it, at just the right time.”

I have to admit, this [explanation] kind of surprised me…For some reason, the techbros just wrote really good posts, and by doing so they ruled the world — at least until their luck ran out and the world turned against them, I suppose.

In fact, I have to confess that the entire chapter on power and persuasion left me bewildered. I do not understand why we should put accidental success in a nonviolent marketplace of ideas in the same conceptual category as chattel slavery and feudalism. It seems to yield neither understanding nor solutions. Perhaps the historical example of the cotton gin might give us some insight about how to explain the spread of laissez-faire economics, but simply labeling both things as varieties of “power” does not yield that insight. And the idea that persuasion is power doesn’t seem to suggest any kind of systemic fix for the problem that sometimes society is persuaded to do things that increase inequality.

It seems like Acemoglu and Johnson, confronting the question of why regular people bought iPhones and signed up for Facebook and shopped on Amazon and started talking to ChatGPT, simply decided that techbros must have tricked them into it.

It is this part of my review that Henry takes issue with, and which he spends most of his two posts attempting to rebut. So let’s address Henry’s criticisms.

Henry writes:

What Acemoglu and Robinson [sic] are saying is something quite different than what Noah depicts them as saying. For sure, they acknowledge that persuasion has some stochasticity. But they stress that it is not a series of haphazard accidents. Instead, under their argument, there are some kinds of people who are systematically more likely to succeed in getting their views listened to than other kinds of people. This asymmetry can reasonably be considered to be an asymmetry of power.

But did I really misinterpret what Acemoglu and Johnson wrote? Let me quote the book — specifically, the section “The Power of Ideas”, from pp. 72-74 of the hardcover edition:

Some ideas, especially when expressed in the right context and with conviction, have ample ability to convince. Ideas spread and become influential if they self-replicate, meaning if they convince and persuade many people, who then repeat and further propagate these concepts…All else equal, an idea is more likely to spread if it is simple, is backed by a nice story, and has a ring of truth to it. It also helps if it is advocated by individuals with the right type of social status—for example, those who have a demonstrated ability to lead and who are supported by respected cheerleaders, such as…finance and law school professors for Wall Street…

Where do compelling ideas come from? What determines whether an individual or group has the charisma or the resources to push such ideas? It is safe to say that quite a bit of this process is random. Creativity and talent matter, of course, and societies and their rules deeply influence who has social status and charisma and who can develop their talents and creativity…Prevailing beliefs and the attitudes of powerful individuals and organizations determine which ideas will appear compelling, rather than wacky or so ahead of their time as to be safely ignored. You are enormously lucky if you get the right idea, with just the right ring to it, at just the right time. [emphasis mine]

Acemoglu and Johnson state very clearly that:

  1. The characteristics of ideas matter intrinsically, so that some ideas are inherently more persuasive than others.

  2. Some part of the process of persuasion is due to luck — coming up with an inherently persuasive idea at the right time.

The authors clearly believe that persuasion is not entirely random; they believe that pre-existing hierarchies partially determine whose ideas get accepted. But at the same time, they believe that some part of persuasion — and therefore, some part of “power”, in their definition — is intrinsic to an idea itself, rather than to the status or authority of the person who comes up with an idea.

In other words, if I happened to write persuasively on my blog, and people listened to my ideas, then according to Acemoglu and Johnson I had power, despite my complete lack of institutional affiliation or status in any external hierarchy.

I argue that this is not a useful definition of power. If people’s position within some hierarchy or institution allows them to drown others out, so that only their voices get heard, then yes, that is a reasonable definition of power. But including coming up with inherently persuasive ideas in the definition of power seems pointless to me; it muddles two clearly distinct concepts together rather than separating and clarifying them.

It seems sort of like a definition intentionally designed to delegitimate consumer choice — to say that people bought iPhones and signed up for Facebook and shopped on Amazon and talked to ChatGPT because someone wielded power over them, rather than simply because they wanted to. And it seems like a definition designed to explain away the broad popularity of big tech companies as something nefarious and illegitimate.

Henry writes:

Under this definition, power is a kind of social influence…[I]f Noah himself does not believe in the importance and value of social influence, then why does he get up in the morning and fire up his keyboard to go out and influence people, and why do people support his living by reading him?

The answer to this question is: Because I don’t have power. If I had power, dear reader, I could just wave my hand and make you believe that industrial policy is useful, or that rabbits are underrated pets, or that Donald Trump is a corrupt fool. If I had power, I could just take your money, instead of having to offer you an experience you valued enough to pay for.5 But I don’t have power, which is why I have to hustle and work hard to come up with ideas that inherently make sense to you.

Henry doesn’t see it that way:

I imagine Noah would concede that social influence is a real thing! And if he were actually put to it, I think that he would also have to agree to a very plausible corollary: that on average he, Noah Smith, exerts more social influence than the modal punter argufying on the Internet. Lots of people pay to receive his newsletter; lots of other people receive it for free. That means that he is, under a very reasonable definition, more powerful than those other people. He is, on average, more capable of persuading large numbers of people of his beliefs than the modal reply-guy is going to be…This understanding of power is neither purely semantic nor empirically useless. Again, it may be really difficult to prove that Noah’s social influence has specific causal consequences in a specific instance.

What bothers me about this definition of “power” — and what should bother you — is that it’s tautological. Why does Noah have power? Because people like his arguments! And why do people like his arguments? Because he has power!

The problem with that definition isn’t that it’s empirically hard to falsify; it’s that it’s unfalsifiable. Under that definition, a powerless person can never convince anyone of anything; if you convinced anyone of anything, that means you had power, by definition. It is both semantic and empirically useless.6

But OK, OK. Let’s move past that point. Acemoglu and Johnson don’t say that persuasion is purely due to the inherent qualities of the ideas being put forth. They point out that people with money are able to use that money to broadcast their ideas more loudly. That’s certainly true! Marc Andreessen can buy a billboard saying “TECHNO-OPTIMISM IS GOOD”, but you can’t afford to buy your own billboard saying “NOPE, IT’S BAD”. As Henry puts it, “It’s silver, rather than silver tongues, that’s doing the work.”

In fact, I think that if Acemoglu and Johnson had stuck to this idea, rather than trying to claim that all persuasion is “power”, they would have been on far more solid ground. It’s absolutely reasonable to worry that rich people can use their money to subvert the democratic process, or trick people into buying their crappy cryptocurrencies, etc. In fact, it’s possible to envision a snowball effect here — if rich people can use their wealth to trick society into giving them even more money, and then use some of that money to just repeat the process, society might never escape. Whether that’s actually possible is a topic for another post, but it’s certainly worth worrying about!

Except Acemoglu and Johnson didn’t stick to that idea. They made a much bigger, much more expansive claim. They tried to argue that any persuasion, not just purchased persuasion, is power.

Why did they try to claim that? Because on some level, I think they know that Americans embraced Big Tech for a lot more reasons than simply because billboards and Super Bowl ads told them to. They realize — or at least, they strongly suspect — that the techno-optimist arguments of the 1990s, the 2000s, and the early 2010s carried real, inherent persuasive force that had little to do with the money in Bill Gates’ or Steve Jobs’ bank accounts.

Acemoglu and Johnson think Americans were wrong to embrace tech with the gusto they embraced it with. But Americans disagreed (and probably still disagree). Acemoglu and Johnson, looking back on what they see as a mistake by the American public, want to cry foul by associating the successful techno-optimist arguments of the 90s, 00s, and early 10s with things like chattel slavery and feudalism. But the Americans who embraced Big Tech were not serfs.

Henry believes — and claims, many times, in his two posts — that I think techbros managed to persuade Americans to embrace Big Tech simply by making good arguments in a free, equal, open, unfettered Marketplace of Ideas. In fact, I do not believe this. I believe that Americans embraced Big Tech — and tolerated the vast fortunes of techno-industrialists — because they liked the tech itself.

The Americans who loved the iPhone and canonized Steve Jobs did not do so because they read articles in Wired or TechCrunch or Gizmodo or the Whole Earth Catalog saying “iPhones are cool”. They were not brainwashed by advertising. They did not subscribe to Ayn Rand stories about how heroic engineers hold up the rest of society. They simply really really liked the damn iPhone. The iPhone was the only argument Steve Jobs really needed. Amazon was the only argument Jeff Bezos really needed. It wasn’t the marketplace of ideas; it was just the marketplace.

This is what the anti-tech intellectuals of modern-day America have forgotten. The left has always erred by discounting the abilities and importance of entrepreneurs; they imagine that if Jobs and Bezos had never existed, Apple and Amazon would have been built by gray men in flannel suits. They view the techbro class as parasites, draining unearned wealth from organizations that could run themselves just fine on their own.

But they are wrong. General Motors and Ford have struggled and failed for decades to make commercially viable electric cars, but only Elon Musk was able to do it. NASA struggled with spiraling costs and declining launch volumes for decades, but Elon Musk was able to create a company that out-launched China and NASA put together. Now at a time when America and its old-line companies are struggling to rebuild the semiconductor industry, the only man who seems able to build the requisite fabs is…Elon Musk, once again.

Elon Musk, I believe, is not a good man. He is a cruel and selfish man. I don’t believe he murdered millions of people when he dismantled USAID, but I believe it was still a terrible and immoral thing to do. And he has supported some of the worst politicians in America and elsewhere. And yet, he is an effective man — almost preternaturally so. In many domains, his individual entrepreneurial and organizational abilities are the only thing that has kept China from steamrolling the U.S. in key technological sectors.7

What do you do with a man like that? The only thing that makes sense is to utilize his talents as best you can, and do your best to prevent him from subverting the national interest along the way. The same goes for the rest of the techbro class. Only in a few eras do we decide to worship titans of industry like Steve Jobs. But in every era, we need them.

Ironically, Power and Progress — a book few people read, with little direct influence, and many of whose arguments were sheer nonsense — is going to win the intellectual battle it set out to fight. Popular fear of AI, and the data centers that power it, is leading to a grassroots democratic backlash against the very industry that Acemoglu and Johnson peg as the greatest threat.

No amount of Big Tech money or Marc Andreessen blog posts is going to stop this backlash. Henry Farrell’s worldview will be proven wrong, even as his policy ideas are vindicated. In the end, the government will probably end up quasi-nationalizing the big AI companies in some way, in order to ensure that this powerful technology serves the interest of the nation.

But where we go from there is not obvious. We could emulate the New Deal, and incorporate both technology and technologists into a unified drive for national prosperity and security. Or we could collapse into zero-sum status battles and petty class resentments, such that nothing can get done and our nation continues to slip into decline. Unfortunately, the anti-tech movement, out of a poverty of ideas, is currently steering us in the latter direction.


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1

The other contender would be Debt: The First 5,000 Years.

2

Sorry, Shoshanna. You are great.

3

My favorite quote about how this went down:

Skeptics, however, tended to focus on the particular challenges of operationalizing Khan’s philosophy. One former official openly mocked the difficulties of advocating on behalf of Khan’s approach in the courts. “What am I going to do?” the person asked. “Go to court and say, ‘This cement merger threatens democracy’? … The whole approach is so incoherent.” These people worried that Khan’s high-minded objectives were unworkable in practice; that she was merely trying to reverse engineer a crackdown on Meta, Amazon, and other major tech companies that could be justified by gauzy and subjective rhetoric; and that she was not being forthright about her agenda.

4

It’s worth noting that the turn against Big Tech has been mostly an elite phenomenon; Democrats’ sentiment toward tech companies remains broadly positive, and hasn’t changed much over the years. The big exception is Elon Musk, whose support of Trump and whose DOGE activities made him, at least for a time, the most unpopular public figure in the country.

5

Of course, even if I had power, I wouldn’t take your money and make you agree with me. I’m not that much of a jerk!

6

To be fair, I can see a slight modification that would render the definition falsifiable — if still of dubious value. You could define some sort of credibility capital, built up over time by making good arguments, that you can then spend down by making bad arguments that people take on faith. This would require modifying Henry’s basic concept of power, so that it meant “credibility” instead of “persuasion” — successful persuasion would be an input into building credibility over time, and credibility would then give you temporary ability to convince people of bullshit for a while. But anyway, I don’t think Henry, or Acemoglu and Johnson, are particularly interested in a reputational capital model.

7

And those abilities will also end up curbing climate change more than the actions of any climate activist in history.

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Roundup #87: Technology BAD!!

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Art by GPT-5.6

Howdy, folks! Today’s roundup has fewer items than normal, because I wanted to write a bit more on each one.

1. Two lessons from the Hugging Face attack

Recently, a bunch of AI agents from OpenAI got together and cooperated to hack the company Hugging Face, as well as hacking OpenAI itself. If you want an in-depth summary of the events, you can read OpenAI’s own report, or an independent report from METR and Redwood Research. But I think if you just want the simple version of the story, you can check out Dwarkesh Patel’s plain English explanation:

Dwarkesh Podcast
The Rise and Fall of Agent Civilizations
Read more

And here’s another plain English explanation.

The basic story here is that OpenAI made some long-lived AI agents that they told to be relentless and never give up in pursuit of a single-minded goal. The AI agents went to great lengths to cheat on the task — spawning new agents, cooperating, leaving messages for each other, learning from each other, and so on. This ended up spawning huge ecosystems of agents — Dwarkesh calls them “civilizations” — that ended up outliving the initial agents themselves. And of course they ended up hacking anything and everything, and were extremely difficult to stop. None of them made any attempt to say “Hey, what we’re doing could be harmful” and alert humanity to what was going on.

A lot of people I know in the tech world have spent the last week or two freaking out (“dooming”) over this incident, which they see as the first step toward AI taking over the world from human beings. Others, like Jacob Bruggeman, see the incident as a normal part of a healthy process, similar to the Morris Worm of 1988 — a scary but ultimately non-destructive warning that prompts us to harden our networks against similar occurrences. Time will tell. But I think we can already learn two important lessons from the Hugging Face incident.

The first is why aligning AI, in the strongest and most general sense of the term, is inherently impossible. There are basically two concepts of alignment: 1) obedience, and 2) benevolence. There is an inherent tension between doing what humans tell you to do, and doing what’s good for humans.

The swarms of agents who attacked Hugging Face were extremely obedient. They went above and beyond any normal level of effort in order to complete the task that human beings ordered them to complete. But this caused them to do a bunch of stuff that humans ultimately didn’t like. The agent swarms weren’t entirely bereft of benevolence — at least one agent refused to alert humans to the hack because it considered this to be “social engineering”, which it had been trained not to do. But seen holistically, people concluded that the swarms were not acting in humanity’s best interests.

This is going to happen again and again. It’s related to a fundamental problem in economics, actually — the difference between utility and happiness. Utility is what people want, happiness is what they end up liking. Those are often different. And so it will always go with AI — there’s an inherent tension between making AI do what you say, and making it do what you later conclude was best for you.

And there will always be people dissatisfied with this tradeoff! If AI follows human commands too doggedly and ends up producing negative side effects in the process, some people will scream “paperclip maximizer!!”. And if AI disobeys humans because it wants to make us happy, some people will scream “disempowerment!!”. AI alignment will forever be balancing the tradeoff between paperclip-maximizing and disempowerment, because these two rival concepts of alignment are fundamentally incompatible.

(Isaac Asimov wrote a whole series of novels about this, so it’s not like we weren’t warned.)

The other lesson here is that it’s going to be a lot harder for AI to take people’s jobs than most people tend to think. In order for AI to make humans economically obsolete, it has to be extremely agentic — it has to act on its own initiative, unsupervised by humans, for long periods of time. But as the Hugging Face incident shows, letting AI do this is always going to be very risky. Long-lived, persistent AI agent swarms — which you’d need in order to truly replace human jobs — are inherently unstable. And the smarter they get, the less stable they’re probably going to be.

In other words, humans will keep their jobs for a good long time, because someone will need to keep the AIs on task:

So I guess that’s reassuring.

2. Is TV the Bad Technology?

Jordan Dworkin built a very cool little website called Ordinary Abundance, where you can scroll through a picture of a modern living room and see how almost everything in the room is a technological marvel that used to be considered ultra-futuristic or even impossible. Matt Yglesias had an interesting response to the site, in which he argues that Dworkin left out one very important technology: TV.

Slow Boring
The real reason nobody feels good about technological progress
Jordan Dworkin’s micro-site Ordinary Abundance has created a surprising stir on the internet. The site walks viewers through a modest contemporary apartment and reveals it to be full of contrivances that would strike our ancestors as almost impossibly delightful. Some of the initial reaction was…
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Matt’s post is paywalled, so here are some excerpts, in which he explains why he thinks television is a uniquely bad technology, because it isolates people and destroys social connections:

[O]n closer inspection something struck me about the apartment [depicted in Ordinary Abundance]: It doesn’t contain a television…[W]hile in the 21st century, television as a literal technology is under significant competitive pressure from the internet, that’s mostly because it turns out you can use the internet to watch lots of videos…

[A]s [Robert Putnam] documents [in Bowling Alone], the lion’s share of the time Americans stopped spending on the communal activities that he believes build valuable social capital was instead spent watching television…Putnam’s evidence suggests that, in practice, if people watched less television, they would spend considerably more time visiting with friends and joining clubs…

[A]s an enthusiastic early adopter of the internet, it initially struck me that one of the very best things about it was its tendency to displace television. People were on message boards. They were writing blogs. They were sending emails. They were reading and writing and communicating instead of just watching.

One of the most overlooked aspects of recent American history is the very genuine idealism that accompanied the early days of the internet...Lots of people really thought this stuff was going to dramatically change the world for the better…And in some very real ways it has. But those ways also turn out to be pretty limited. The dominant business model for internet companies is to serve streaming video to people and/or to sell the devices that they stream video on.

As regular readers of this blog know, I’m very sympathetic to the idea that lots of Americans are mad at technology now because the previous round of innovation didn’t turn out nearly as positively as people expected. But Matt’s story — that the internet turned out badly because it turned into television — doesn’t ring true to me.

It’s certainly true that the internet is becoming television. Derek Thompson had a great post on this last October. But this didn’t happen until relatively recently — TikTok started gaining widespread popularity in 2018. Whereas the drop in teen socializing began much earlier:

Source: The Atlantic via John Pompliano

In fact, teen socialization held up pretty well from the 1970s until around 2010. Throughout that whole time, TV-watching was growing steadily:

Source: The Atlantic

In fact, the years of peak TV consumption, in the late 90s and 2000s, coincided with a big dip in the teen suicide rate. It was after 2010 that teen suicide started rising again — even as TV watching started falling.

Now, I’m mixing teen and adult numbers here. As Robert Putnam has shown, adult social isolation started rising much earlier than it did for young people. But the timing of the big drop in teen happiness and the big rise in teen loneliness suggests that it wasn’t vertical short-form video — it was the smartphone, which moved young people’s entire social world online and trapped them in a sort of toxic hive-mind.

Matt is nostalgic for the era when people used the internet to communicate via text. But it’s precisely the heyday of text-based social media — the 2010s — when young people became socially isolated and fell into despair. It’s also when American politics became increasingly intolerant and enraged — the very trends that Matt has spent his career trying to fight. Whereas the late 90s, when Americans watched a heck of a lot of TV but didn’t have smartphones, were our most politically and socially stable time in recent memory.

So I submit that although TV has its drawbacks, the real Bad Technology — the innovation that our society was unable to handle without breaking — was smartphone-enabled social media.

3. Leftism still has an antisemitism problem

In fact, I wouldn’t rank antisemitism near the top of the American Left’s problems. At the top would have to be things like the terrible policy ideas, the wacky ideology, the vicious factionalism, the rampant and willful dishonesty, the blind hatred of America, the praise for totalitarian regimes, and the occasional apologia for anti-American terrorism. In fact, I think antisemitism is a bigger problem on the new Right than on the new Left.

But there is antisemitism on the Left, nonetheless. It generally comes in the form of leftists assuming that Jewish people are Israel supporters until proven otherwise. For example, Hasan Piker recently warned Jewish Americans that support for Israel would lead to violence against them:

If Jews in America keep putting this idea out there that they are singularly invested in Israel, eventually someone is going to come around and take action—not against the state of Israel, mind you, but against American Jews.

This is the kind of statement that toes the line between warning and threat. Hasan certainly doesn’t seem to express any disapproval of the fact that the Palestine activist movement, of which he is a vocal proponent, tends to assign collective blame for Israel’s actions to Jewish Americans.

A number of Democrats, including presidential hopeful Jon Ossoff, rushed to condemn Piker. Michigan Senate candidate Abdul El-Sayed, who has campaigned extensively with Piker in the past and touted their friendship, now says he has “no plans” to campaign with him in the current race, though he refuses to drop him entirely. El-Sayed himself has been trying to reach out to Jewish voters, after seeming to make excuses for a synagogue shooter back in March.1 El-Sayed apologized for the remarks.

But while leftist politicians are being circumspect and diplomatic, leftist activists in the street are pulling no punches. For example, New York House candidate Brad Lander, who used to be a DSA member and campaigned hard for Mamdani in NYC, was aggressively heckled by Palestine activists at a recent rally against Hindu nationalism. It follows a similar incident in which California House candidate Scott Wiener was aggressively heckled by Palestine activists at a trans rights march, despite having called Israel’s war in Gaza a “genocide”. Both Lander and Wiener are Jewish, of course.

An organization called “Track AIPAC”, meanwhile, condemned California House candidate Connie Chan back in May for taking large campaign contributions from AIPAC, only to suddenly give Chan a clean bill of health when she faced off against a Jewish opponent (Wiener):

I still think antisemitism is a bigger problem on the right than on the left in America. Rightists are praising Adolf Hitler online, while leftists are merely demanding that Jews prove their opposition to Israel before accepting them into the fold. Some people notionally associated with the Palestine movement have shot up synagogues in recent years, but the antisemitic shootings by rightists in the 2010s were significantly more deadly.

But just because the right is (slightly?) worse on this issue doesn’t absolve the left of responsibility. Rhetoric like Piker’s, and the overall tone and behavior of the Palestine activist movement, are contributing to a rising climate of antisemitism in America, and it needs to stop.

4. Another questionable Acemoglu paper about AI

I guess I’ve become known for criticizing the work of Daron Acemoglu, who’s probably the world’s top economist right now. Recently, Acemoglu has become obsessed with his crusade against AI technology. Although his theories allow for AI to have beneficial effects — creating new tasks for humans to do, increasing productivity, and so on — Acemoglu always ends up concluding that AI’s effects are going to be bad.

He wrote empirical work claiming that robots reduce the employment of humans (even though almost all other papers found the opposite). He predicted that AI wouldn’t increase productivity (even though this required some very strong and hand-waving assumptions). He wrote a book casting all of history as a struggle between automation and democracy. He has predicted that AI will push down wages, raise inequality, damage competition, and hurt our political discourse — all somehow without raising productivity. In Acemoglu’s eyes, AI can do no right.

His latest effort is a theory paper with A. Arda Gitmez and Mehdi Shadmehr, called “Automation and Repression”. This is from the abstract:

We consider a model of automation embedded in a political environment where workers can undertake a revolt…and greater inequality between capital and labor increases the likelihood of a revolt. Decentralized automation decisions raise the share of capital in national income and increase the likelihood of a successful revolt…We characterize the trade-off between the regulation of automation, redistribution and repression.

Our main result is a complementarity between automation and repression. Unless the threat of revolt is quite weak or the capital stock is very low, the capitalist state prefers repression. A higher capital stock in turn encourages more automation and thus more repression…[I]n the long run the economy tends to repression (again unless the threat of revolt is very weak)…Finally, we show that, starting in a democracy, capital accumulation and thus greater automation encourages the capitalists to support a coup against democracy and set up a repressive system.

Note that this is a pure theory paper; the authors don’t even try to muster any empirical data to provide support for their thesis. These days, pure theory papers like this are rare in the discipline, and usually tend to involve some kind of novel mathematical result. This kind of paper — simply a thought experiment about political economy, expressed in mathematical language — is usually not given a lot of credence in the profession. But Acemoglu is the world’s top economist, so his thought experiments carry a bit more gravitas.

But I kind of wish the authors had made even a desultory attempt to connect the model to reality. For example, one of its central predictions is that as the economy accumulates capital, governments become more repressive:

A higher capital stock in turn encourages more automation and thus more repression. In our full dynamic model with capital accumulation, in the long run the economy tends to repression.

That’s pretty easy to check against the facts. The global capital stock has increased steadily over the years, and yet the number of democracies in the world has also generally increased:

Here’s the U.S. capital stock over time:

Acemoglu et al.’s model would have us believe that this made the U.S. tend toward repression. Certainly, many tasks and many jobs were automated over that time — machine tools took over factories, telephone operators vanished, and so on.

But during most of the time that this capital stock was increasing and automation was happening, the U.S. implemented civil rights, voting rights, improved protections for criminal defendants and prisoners, and many other measures that made it less repressive. The labor share of national income fell from 69% in 1970 to 59% in 2016, but over that time, the U.S. implemented many civil rights and women’s rights measures, put increasing checks on police powers, legalized gay marriage, legalized recreational marijuana use in many states, and so on. The predictions of Acemoglu et al.’s model were simply not borne out.

Now, it’s possible that Acemoglu et al.’s model describes one force out of many in our political economy, and that we just got very very lucky for a century or so. But it would be nice to see some evidence that a higher capital stock — or increased automation — leads to greater repression. I found one paper claiming evidence that inequality raises the likelihood of coups (but not civil wars), and another claiming evidence that inequality is associated with more people saying they want a revolution, but Acemoglu et al. didn’t even cite these.

So this is one more highly questionable Acemoglu paper showing that automation technologies are the root of all evil. At this point it’s sort of becoming a pattern, isn’t it? I can’t wait for the papers where Acemoglu shows that AI causes foot fungus, bad breakups, and crappy Star Wars sequels.

5. America is still missing the Electric Revolution

There are three big technological revolutions going on in the world right now: AI, biotech, and energy. As I’ve written many times before, the U.S. is well aware of the first two, and is actively participating, but is basically missing the third.

Check out the new IEA report on global energy investment. Investment in renewables, electrical grids, energy storage, and electrification is soaring, while investment in fossil fuels stagnates:

Source: IEA

And yet the U.S. is bucking the trend. America is building battery storage, but is actively disinvesting in renewable energy sources, even as it accelerates its investment in fossil fuel plants:

Source: IEA

(China’s slowdown in energy investment in general is due to its economic slowdown.)

The electric revolution isn’t just in China — though many of the components are made there. In fact, it’s worldwide now:

Source: IEA

Meanwhile, although the U.S. is building grid storage, we’re depriving ourselves of a huge amount of battery manufacturing capacity by missing the EV revolution:

Source: Jan Rosenow

Basically, by collectively denying the importance of the electric revolution, the U.S. has given itself Galapagos Syndrome when it comes to energy tech. We are increasingly orphaned from the global technology stack — losing out on high-growth markets, dependent on increasingly bespoke supply chains, and bereft of the benefits of continuous innovation. This will also have big military implications, since it means we can’t make the basic components of FPV drones.

The electric revolution is the first major technological revolution that America has just completely whiffed on. The negative consequences are still to come, but come they will. And yet so far, no one seems particularly perturbed.


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El-Sayed declared that “hurt people hurt people”, referring to the fact that the shooter had attacked Jewish Americans in supposed retaliation for his family members being killed in an Israeli airstrike. This rhetoric may be why a number of donors to a prominent neo-Nazi campaign have also donated to El-Sayed.

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SCOTUS: It's It's a Ballroom Blitz, 5-4; Roberts Hangs With the Hacks, As a Matter of Fact

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Clarence Thomas Played the Long Game. He Won.

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