Icosian Reflections

…a tendency to systematize and a keen sense

that we live in a broken world.

IN  WHICH Ross Rheingans-Yoo—a sometime economist, trader, artist, expat, poet, EA, and programmer—writes on things of int­erest.

Review: The Triumph of Injustice

Or, the coming debate on moral incidence of taxes

You're going to hear a lot about the triumph of injustice in the next 6-12 months. Or rather, you're going to hear a lot about The Triumph of Injustice: How the Rich Dodge Taxes and How to Make Them Pay, by Emmanuel Saez and Gabriel Zucman (2019).

For one thing, the two economists have signed on as economic advisors to 2020 presidential candidate Elizabeth Warren, who has for years been putting questions of economics and notions of justice front-and-center. But more generally, economic justice is having a moment, and I prophesy that you'll hear more about it before you hear less.

So this is my first real attempt to understand exactly what kind of moment it is, in the best way I know how -- by writing. Specifically, by writing a review that unpacks TToI for non-economists. (I am an economist, but not the kind that helps p— I mean, not a macroeconomist.

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Those Emails

If you hadn't heard: A group that was almost certainly Russian military intelligence stole almost 20,000 emails from the DNC and Wikileaks published them on Saturday. Personally, I doubt that there's anything in them, but---

---what's that?---

---they're literally the smoking gun of a plot to steal the nomination for Hillary Cl---

---no, no, I'm certain that they're not---

---um---

---okay, okay, I'll take a look and see what's there. Here we go.

attention conservation notice: This post is long. Like, 7000 words long. If you just want to skip to the executive summary at the end, I won't blame you. There, I go over the material that I cover below with convenient links back to the relevant section, if at any point you want to go back and check against source.


(1a)

Before we do this, I want you to ask yourself what you expect to

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I can't support the Green platform

In a conversation with an acquaintance about the political ethics of voting for Jill Stein, I realized that I had very little idea what the Green Party stood for. (Um...the environment?) So I spent a few hours today reading the Green Party platform. I can't say it was an exciting experience, but now at least I feel like I have some sense of what it means to be Green. I liked a good deal of what I read, but in the end, there were a few things that I just couldn't stomach.

note: At no point in this post am I going to discuss the political ethics of voting for a third-party candidate, in general, in a first-past-the-post race. If you want to read about that sort of thing, you're in the wrong place; this is a post unpacking what the Green Party specifically does and does not (claim to) stand for.


(1)

1. There's actually a good deal to like about the Green platform. It's pro-UBI, (mostly)

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PredictIt Arbitrage

note: Long after I posted this, PredictIt changed their policies on margin requirements in "linked markets", a small step towards market efficiency. Nevertheless, they left in place their 5% tax on withdrawals and 10% tax on gross profits, so the central argument that inefficiencies can stop even the most commonsense arbitrages from correcting out-of-line markets, remains largely true.


(1)

Political betting site PredictIt offers everyone the ability to (legally) bet (real money) on the outcome of political events. For example:

The market in "Who will win the 2016 Republican presidential nomination?", displaying thirteen leading candidates.

You can pay 39¢ for a Yes share in BUSH.RNOM16, which will be worth $1 if Jeb Bush wins the Republican nomination, and $0 if he does not. Similarly, you can pay 63¢ for a No share in BUSH.RNOM16, which will be worth $0 if he wins and $1 otherwise. (Another way to think about this is that you can sell a Yes share for 37¢ or buy one for 39¢. These numbers are different for pretty much the same reason that you can't sell your used textbooks

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Quotable Candidates


(a)

Open borders? No, that's a ... proposal ... which says essentially there is no United States...

It would make everybody in America poorer -- you're doing away with the concept of a nation state, and I don't think there's any country in the world that believes in that. If you believe in a nation state or in a country called the United States or UK or Denmark or any other country, you have an obligation in my view to do everything we can to help [our] poor people. What some people in this country would love is an open-border policy. Bring in all kinds of people, work for $2 or $3 an hour, that would be great for them. I don't believe in that. I think we have to raise wages in this country, I think we have to do everything we can to create millions of jobs...

I think from a moral responsibility we've got to work with the rest of the industrialized world to address the problems of international

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Something About Bernie

warning: speaking from significant socioeconomic privilege.


(0a)

Scott Alexander, writing at Slate Star Codex, has some words:

So presidential candidate Bernie Sanders has proposed universal free college tuition.

On the one hand, I sympathize with his goals. If you can’t get any job better than 'fast food worker' without a college degree, and poor people can’t afford college degrees, that’s a pretty grim situation, and obviously unfair to the poor.

...

But, well, when we require doctors to get a college degree before they can go to medical school, we’re throwing out [$5 billion], enough to house all the homeless people in the country... Senator Sanders admits that his plan would cost $70 billion per year. That's... enough to give $2000 every year to every American in poverty.

At what point do we say "Actually, no, let's not do that, and just let people hold basic jobs even if they don't cough up a a hundred thousand dollars from somewhere to get a degree in Medieval

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