Steve Randy Waldman
@interfluidity.com

i generally have that effect on people. i've such talent i've never understood why i'm not invited to all the parties.

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Steve Randy Waldman
@interfluidity.com

The state undergirds risk-taking under both approaches. 1/

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Steve Randy Waldman
@interfluidity.com

In China, the state is very explicit about where it wants to encourage innovation, it calls industries strategic, subsidizes them, is forgiving of failure. 2/

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Steve Randy Waldman
@interfluidity.com

In the West the state incentivizes risk-taking with the prospect of huge profits, and (at least used to) subsidize the riskiest part of the innovation chain, basic research, via grants to academia and institutions like defense contracting. 3/

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Steve Randy Waldman
@interfluidity.com

The state does not "centrally plan" innovation in either system. In both systems, the state imposes some direction on research that does not obviously pencil, via what grants and other forms of support fund (in the US), via what industries are subsidized (and also academic research funded) in CN. 4/

in reply to self
Steve Randy Waldman
@interfluidity.com

It's true that the Western system of tolerating and helping impose market power enables more incentive for innovation totally out of the blue, on ideas or in sectors the state would not encourage ex ante. 5/

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Steve Randy Waldman
@interfluidity.com

But it has very large costs. The welfare costs of drugs not taken, for example, by virtue of the market-power tax imposed is very large. The market-power approach rewards "innovation" in extraction as much as innovation in useful goods and services. 6/

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Steve Randy Waldman
@interfluidity.com

So there are tradeoffs! And ten years ago, I might have been persuaded that the Western approach was genuinely, importantly more "creative", and would be less willing to write broadsides against it. 7/

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Steve Randy Waldman
@interfluidity.com

But I think this is a harder case to make now, as China is now at the innovation frontier in most industries. It's true in nearly all of these industries they began by copying. But now it's we who have to copy if me mean to catch up. 8/

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Steve Randy Waldman
@interfluidity.com

I think the case is stronger that our historic position at the frontier owed more to path dependence rendering us an insuperably great power (for a while) than for any great genius in the arrangement of our incentives for innovation. /fin

in reply to self
Steve Randy Waldman
@interfluidity.com

Intellectual property is the most explicit version of the create-and-defend sources of market power approach. But look where it's taken us. Is culture, art subsidized, or are huge rents captured by distribution channels and art made ever more derivative?

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Steve Randy Waldman
@interfluidity.com

Who in the leadership of the EU is a stalwart defender and proponent of European social democracy?

Steve Randy Waldman
@interfluidity.com

isn't involution just the name they give when something akin to Econ 101 "perfect competition" takes hold, when price is competed down to variable cost? 1/

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Steve Randy Waldman
@interfluidity.com

Yes, this means fixed costs may not be recoverable absent some form of subsidy. Yes, it's uncomfortable for businesses. But it's not at all clear it's a problem overall. 2/

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Steve Randy Waldman
@interfluidity.com

Subsidy is in fact an option to keep industry sustainable. It's not at all clear that the tax burden of subsidy is worse than the Western approach of creating + protecting sources of market power to help firms cover fixed costs. There is no obvious limiting principle to this "market-power" tax. /fin

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Steve Randy Waldman
@interfluidity.com

first humanoid robot i worry could replace what i actually do. ht @niedermeyer.online

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Steve Randy Waldman
@interfluidity.com

when the third term thing inevitably comes before the Supreme Court, they could just publish this piece as the unanimous opinion, if they were actually calling balls and strikes and devoted to enforcing the original intent of the Constitution’s text. unfortunately a big if.

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Steve Randy Waldman
@interfluidity.com

i feel the same hopelessness and anger. also i’d point out that a growing political tendency elevates UAE as aspirational, perhaps a template for a new world order. those enthusiasts should not be spared accounting for UAE’s intercessions in Sudan.

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Steve Randy Waldman
@interfluidity.com

can’t wait for the new cheetos to drop…

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Steve Randy Waldman
@interfluidity.com

if you’ve written for a long time, you have to hope you don’t become a stereotype of yourself. it’s not an easy thing to avoid.

Steve Randy Waldman
@interfluidity.com

(or you need to assume both a one-dimensional issue space AND precisely two parties for the logic to hold. otherwise the party that captures the median can be a minority party, which might win a plurality or not.)

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Steve Randy Waldman
@interfluidity.com

the average american and the median american just hate each other.

Steve Randy Waldman
@interfluidity.com

“anti-fascists should be attentive not merely to civil society as a general category, but to different kinds of civil society. The Internet and mass media are a form of civil society, but…they are not a substitute for in-person association. (The same applies to professionally managed nonprofits.)”

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Steve Randy Waldman
@interfluidity.com

and makes the case for including universal pediatric dental care in the, um, basket!

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Steve Randy Waldman
@interfluidity.com

it's amazing we all still have hands, rather than vague remnants of fingers twisted into vaguely cylindrical stumps.

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Steve Randy Waldman
@interfluidity.com

also worth keeping in mind that "people who feel like they were 'canceled'" is a category largely orthogonal to "progressive" or "moderate". (perhaps not so orthogonal to the contemporary version of "right", for straightforward reasons.)

Steve Randy Waldman
@interfluidity.com

self-criticism as much as anything: we're very aware of how plutocrats use race, nationality, etc to divide us, but how about faction? when we devote time to countering searchlight etc and the pugnacious internet personalities who promote them, are we really countering or falling into a trap?

Steve Randy Waldman
@interfluidity.com

boo, y'all!

Steve Randy Waldman
@interfluidity.com

isn't he doing to grok what they did to HAL 9000?

Steve Randy Waldman
@interfluidity.com

makes me nostalgic, but not in a great way…

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