This Week in Ridiculous Regulations

The House began preparing articles of impeachment, President Trump announced new tariffs against three allies, a NATO summit was surprisingly contentious, and the federal government is less than two weeks away from a possible shutdown. Meanwhile, agencies published new regulations ranging from old railroads to South Sudanese mail.

On to the data:

  • Last week, 40 new final regulations were published in the Federal Register, after 41 the previous week.
  • That’s the equivalent of a new regulation every four hours and 12 minutes.
  • Federal agencies have issued 2,775 final regulations in 2019. At that pace, there will be 2,940 new final regulations. Last year’s total was 3,367 regulations.
  • Last week, agencies published 364 notices, for a total of 20,410 in 2019. At that pace, there will be 21,621 new notices this year. Last year’s total was 21,656.
  • Last week, 1,258 new pages were added to the Federal Register, after 1,200 pages the previous week.
  • The 2019 Federal Register totals 67,167 pages. It is on pace for 71,152 pages. The 2018 total was 68,302 pages. The all-time record adjusted page count (which subtracts skips, jumps, and blank pages) is 96,994, set in 2016.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. Four such rules have been published this year. Five such rules were published in 2018.
  • The running cost tally for 2019’s economically significant regulations currently ranges from savings of $4.39 billion to $4.08 billion, mostly from estimated savings on federal spending. The 2018 total ranges from net costs of $220.1 million to $2.54 billion, depending on discount rates and other assumptions.
  • Agencies have published 65 final rules meeting the broader definition of “significant” so far this year. 2018’s total was 108 significant final rules.
  • So far in 2019, 463 new rules affect small businesses; 21 of them are classified as significant. 2018’s totals were 660 rules affecting small businesses, with 29 of them significant.

Highlights from last week’s new final regulations:

For more data, see “Ten Thousand Commandments” and follow @10KC and @RegoftheDay on Twitter.

Anonymous – A Warning

Anonymous – A Warning

I read this during the impeachment hearings. The book is clearly a rush job, and it doesn’t break a whole lot of new ground. This book’s effect instead is more cumulative. Its impact comes from painting a consistent picture of President Trump’s personality, his management style, and how it affects policymaking and personnel. Many of the shared inside stories and anecdotes I hadn’t previously heard line up well with Trump’s already known tendencies, and are consistent with what other inside reports from the White House reveal.

Anonymous believes Trump is unfit for office, but opposes both impeachment and any 25th Amendment actions. He (she?) would like Trump to be defeated in the election, whether in a primary or, the committed Republican grudgingly says, by a Democrat. Despite fears that Trump might not respect the results of a close election, Anonymous believes those risks are far less than they would be than with impeachment, or especially a 25th Amendment action.

Anonymous, however, also worries that Democrats are too caught up in Trump’s us-vs.-them style for their own good. They are at risk of choosing a candidate—Anonymous ventures no names—who pairs a Trumpian temperament with far-left policy views. Rather than flattering their opponent through imitation, it would be better for Democrats to choose a moderate. Such a candidate—Anonymous again names no possibilities—would be more electable. They would also do less damage on the policy front, from Anonymous’ conservative perspective. Time in the wilderness could also do the Republicans some good as they think over what they have done. This reviewer almost certainly has a different notion of “good” than Anonymous, but his/her larger point has merit. The GOP needs to cool its overheated emotions.

Anonymous has also rethought the thesis of their New York Times op-ed. The grown-ups in the room are simply not capable of reining all of Trump’s rash decisions. The “steady state” contingent, as Anonymous calls it, has also been shrinking. Good people and/or solid conservatives are leaving the administration in frustration, or are being fired for telling the President things he does not want to hear. Their replacements tend to much more accommodating to the President. As this natural selection process continues, the quality of the administration’s work will continue to deteriorate.

Anonymous argues that a second term would remove the pressure Trump feels to maintain his base’s approval, and move him in a more authoritarian direction. I disagree with this for two reasons. First, his base’s approval means much more to him than just job security. His ego needs it. He genuinely wants and needs popular approbation, hence all the campaign-style rallies and red meat tweets. That said, apparently his staff has long been encouraging him to do as many rallies as possible. Theoretically, when Trump is preoccupied with the rallies, he is less likely to scuttle his own policy initiatives through a tweet or an impulsive, and often temporary, flip-flop.

Second, Trump’s base support has not yet been hurt by anything ranging from his proposing stricter gun control to his obvious non-evangelicalism to his growing spending and deficits, to his trade war’s disproportionate harm to red states. As long as Republicans remain personality-driven rather than policy-driven, Trump has little to worry about from alienating his base.

This is not a book of great depth, but it doesn’t need to be to get its point across. If there is a cause for pessimism, it is that Trump came along during a political realignment, as historian Stephen Davies has argued. In the new nationalism-vs.-cosmopolitan debate, Trump has rapidly pulled the Republicans to the nationalist pole. The Democrats, who currently lack a single figure to rally around, have yet chosen to occupy the same pole or moving to the opposite, cosmopolitan pole. Their primary field contains strong candidates on each side.

Ultimately, the problem isn’t Trump. Nor is it his party. It is a public ideology that is shifting in a nationalist direction. In the short term, America’s more-or-less liberal institutions will pass Trump’s stress test. The more important battle is long-term. Both parties need to discover some semblance of liberal values. Republicans will continue to reject them for as long as Trump is president. From there, who knows. Frankly, a more important short-term objective is getting Democrats to be an effective opposition. If one party is going nationalist and populist, the other should take up the opposite pole. That means resisting the temptation to copy Trump’s amygdala-driven populism.

Umberto Eco – The Name of the Rose

Umberto Eco – The Name of the Rose

A murder mystery set in a medieval monastery. This novel was a publishing sensation in the early 1980s and sold as much as 50 million copies worldwide. Before his writing career took off, Eco was a professor of semiotics in his native Italy. For those not steeped in humanities jargon, semiotics is basically the study of symbols and symbolism. Semiotics are useful in literary interpretation, archaeological research, philosophy, psychology, and unbundling metaphors, allegories, and myths. In line with Eco’s sensibilities, his novel is chock full of symbols and allusions, most of which this reader likely missed entirely.

The Name of the Rose is also a book about books. One of the main characters is an elderly, blind librarian loosely modeled after the famous Argentine writer Jorge Luis Borges. Borges’ stories heavily featured dusty old libraries with labyrinthine architecture, secret knowledge, and mystical qualities—much like the one Eco’s character, also named Jorge, curates.

One of the main themes I was able to detect was the lure of the forbidden. Monks are supposed to be celibate. Just as in real life, these monks were often not. Also true to real-life clergy, not all of their dalliances were with women. But at the same time, they were racked with guilt and were obsessed by it.

Without spoiling the book’s murder mystery too much, the murder weapon involves forbidden literature that the victims are unable to resist. The murderer’s crimes are an attempt to keep this forbidden fruit under wraps, and the monastery’s ultimate fate hinges on his success or failure. The biblical allegory involving forbidden fruit is very appropriate.

Some readers will also be puzzled that names and roses appear have no significance in the book except in the title. Eco did this on purpose. Part of the fun of this book is sleuthing for hidden meanings and symbols. Eco, clever semiotician that he is, chose a nonsense title to throw some readers off the trail.

Eric H. Cline – 1177 B.C.: The Year Civilization Collapsed

Eric H. Cline – 1177 B.C.: The Year Civilization Collapsed

The Late Bronze Age in the Mediterranean, roughly 1500-1200 B.C., is an under-studied period of history. Egyptians, Minoans, Myceneans, Phoenician, Hittites, Akkadians, Babylonians, Canaanites, Assyrians, Cypriots, and more all had thriving civilizations and a complex web of regional interconnectedness. It was, to that point, the most prosperous period in all of human history. Some of their interactions were peaceful, such as in the spread of trade, language, and writing. Other interactions, less so. The first battles with written eyewitness accounts date from this period. Ramses II of Egypt had his epic Battle of Kadesh against Muwatalli II of the Hittites around 1250 BC, of which interested readers can find a dramatic retelling in Norman Mailer’s novel Ancient Evenings. The Trojan War happened sometime around 1200 BC.

Most of Cline’s book is a narrative regional history of roughly a 300-year period ending around the time of the book’s title, 1177 B.C. Around this time, most of those civilizations collapsed. Archaeological records show most major cities were burned, and surviving written sources tell of invasions by Sea Peoples, about whom little is known beyond their ferocity and foreignness. Cline chose 1177 B.C. as a landmark date because in that year, the Egyptian pharaoh Ramses III fought the Sea Peoples’ second invasion, and lost. Just as historians use the sack of Rome in 476 A.D. as shorthand for a longer-term process of collapse, Cline doesn’t literally mean the Late Bronze Age ended in 1177 B.C. That invasion was simply the most visible event in a multi-generation process.

Historians have long thought these Sea Peoples were the main culprit of the rapid region-wide collapse. Cline is not so sure, and many modern scholars agree. Cline also explains recent attempts to figure out just who they were. At present, the best guess is they were not a unified civilization. They likely came from the Northern Mediterranean. One such people are the Shekelesh, who were from Sicily, and likely gave the island its name.

It takes Cline until almost the end of the book to get to the freaking point, but his thesis is essentially a “systems collapse” argument. One thing didn’t go wrong around 1177, everything did. The Late Bronze Age civilizations endured long-term drought, famine, foreign invasions, political changes that lopped off an elite class, wars with each other, and even some earthquakes, all around the same time. None of these factors on their own would have been enough to topple civilizations. Taken together, the cascade effect was fatal.

Cline also argues that the region’s cosmopolitan interconnectedness was a factor in their undoing. When one fell, the others were weakened, and on it went, in a domino effect. Here, I disagree, for much the same reason that investors diversify their portfolios.

Suppose a famine strikes one city-state. At any given time, it is unlikely that the entire region is simultaneously having poor harvests. The stricken city can reach out to others for help. By the Late Bronze Age, agriculture was already five or six millennia old. If, say, every fifth year or so would be a bad year in a given place, then every place knew to plan on growing about a fifth more than what it needs for itself. During good years, it would trade this surplus to needy neighbors. During their own bad years, neighbors in better shape would have their own surplus available for trade. This interconnectedness smooths out year-to-year volatility, making each part of the whole stronger.

The troubles of 1177 or thereabouts happened because drought and other disasters hit region-wide, instead of in select local spots. Even a diversified trading network couldn’t overcome that shock.

If anything, the limits of interconnectedness played a role. Transportation was slow and costly back then. Even though there was likely some long-distance trade with the breadbasket regions of Eastern and Northern Europe and with India, it would have been limited to durable goods such as wood and metals. Wheat and other crops would not have survived the trip—or might not have arrived in time to help. There is a reason why today’s only famines are politically created. Global interconnectedness today is stronger than even the forces of nature.

Wars and skirmishes among Bronze Age kings did not affect the vast majority of people, who were busy in the fields. The biggest battles and sieges of cities were one-time events involving tens of thousands of people. This is out of a population of millions, or perhaps tens of millions. These rare catastrophes dominate the written sources, hence why historians focus on them so heavily. But proportionally, they were often unimportant for the region’s standard of living. Written records can only be made by people who know how to write, and in the Bronze Age that was only a select few people, mostly state functionaries and merchants. This availability bias in the sources means that historians who single out war or invasion as a primary culprit for the 1177 B.C. collapse are likely overselling their case.

Cline’s wider system collapse argument has merit. But his argument that interconnectedness was a source of weakness is almost certainly in error.

Vlad Tarko – Elinor Ostrom: An Intellectual Biography

Vlad Tarko – Elinor Ostrom: An Intellectual Biography 

Tarko is quickly establishing himself as a top-notch economist. In this, his first book, he offers the best available introduction to Nobel Laureate Elinor Ostrom’s work and the concept of polycentrism. Ostrom was the first, and so far the only, woman to win the economics Nobel [Update: I wrote this review before Esther Duflo co-won the 2019 prize in October]. She and her husband Vincent, also an accomplished economist and political scientist, ran a famous Workshop at Indiana University where they paid less attention to disciplinary boundaries than they did to solid theoretical and empirical research.

Elinor Ostrom also popularized the concept of polycentrism. It’s essentially a more finely graded version of federalism. The United States’ federal system has three main levels of government—federal, state, and local, plus a few in-between grades, most commonly counties. But not all services, Ostrom argues, fit cleanly into one of those categories. Services such as parks, police, and schools, have nothing to do with each other. They may also have different optimum characteristics. So why are they often provided at the same fixed level of government? What if a school district’s optimum size extends beyond a city’s boundaries? What if a park district would be better run as multiple, hyperlocal districts? Moreover, these optimum sizes will vary from place to place. A further complication is that these optimum sizes and structures are constantly changing and evolving as culture, technology, and demographics change. Nothing else stays the same, so why should the sizes of government “firms?”

From this polycentric framework, Ostrom teases out some ground rules for institutional design. One is that smaller is usually better. Most federal issues can be more effectively handled at the state level. Many state-level issues can be handled at smaller gradients, whether regional water or irrigation authorities, transportation authorities, or neighborhood-based policing, a term which now means nearly the opposite of what it did when Ostrom began using the term. Two, because times change, institutions need to be designed with flexibility in mind. They need to be able to grow, shrink, merge, separate, and evolve as circumstances dictate. The goal is the service, not this or that corporate structure, so make change easy.

Ostrom was much more than a theorist. She placed a far greater emphasis on field research than most scholars. This empirical backing greatly improved not just her own work, but that of her many students and collaborators. Tarko shares pictures, stories, and the research she conducted across the country and abroad over her long career. For an introduction to her thought and her broader approach, Tarko is an excellent place to start.

Anna Fifield – The Great Successor: The Divinely Perfect Destiny of Brilliant Comrade Kim Jong Un

Anna Fifield – The Great Successor: The Divinely Perfect Destiny of Brilliant Comrade Kim Jong Un

The best biography of Kim Jong-un available. Fifield goes into his basketball- and 1990s Chicago Bulls-obsessed boyhood, including schooling in Sweden, to how he climbed the order of succession in time to be groomed for power beneath the scenes. He might not have been entirely ready to take over when his father Kim Jong-il died in 2011, but he did have some preparation, and learned the political game quickly.

Given his health, he may not have the longest of life expectancies. Kim is reportedly a heavy smoker and drinker, and judging by appearances, now weighs as much as 300 pounds despite his modest height. He also shows signs of gout despite being under 40, which would indicate he is quite sedentary and gets little exercise, which also bodes poorly. But he seems to have reached an equilibrium both domestically and internationally that will keep him in power for the long term.

Domestically, the elites enjoy roughly a Western middle class living standard, despite north Korea being one of the world’s poorest countries. Kim has allowed some modest market reforms that relieve, to a small degree, the worst sufferings of poverty for commoners. That eases social tension, while still making elites fear even a non-lethal fall from grace. Internationally, north Korea’s nuclear capabilities will almost certainly never be used, but occasional bellicosity and successful attempts to appear irrational are enough to keep foreign threats to the regime at bay.

Kim Jong-un remains a mystery, and his personality remains unknown. He does come across as venal and not particularly restrained in his personal life. But he also seems intelligent, and quickly learned how to play a game that can be lethal—and for many of his opponents, including close family members, has. He is not the sort of person a president of the United States should be falling in love with.

In the Media: Trade

The Washington Examiner‘s Sean Higgins quotes me in a piece looking ahead to trade policy in 2020:

Ryan Young, a trade policy expert at the libertarian Competitive Enterprise Institute, expects that Trump will ratchet up the trade wars because tariffs seem to be the only strategy he has. Pulling back from the trade war would mean not getting concessions from Beijing. “Trump is getting frustrated that he is not getting the results that he wants, but instead of trying something else, he is going to lean on tariffs, because that is his primary engine of policy,” Young said. “I don’t see him using anything else.”

Read the whole thing here.

Ruth Goodman – How to Behave Badly in Elizabethan England: A Guide for Knaves, Fools, Harlots, Cuckolds, Drunkards, Liars, Thieves, and Braggarts

Ruth Goodman – How to Behave Badly in Elizabethan England: A Guide for Knaves, Fools, Harlots, Cuckolds, Drunkards, Liars, Thieves, and Braggarts

This book is hilarious and edifying. Not least because it actually is a how-to guide, complete with instructions on how to cuss, insult, gesture rudely, properly bow, and more. It is also a delightful offbeat history that melds the strange and unfamiliar with the somewhat familiar.

It also provides insight on why different things are considered rude or polite in different times and places. One could take a deeper, Hayekian approach to this book, marveling at how unplanned spontaneous orders can result in ever-evolving systems of manners, language, and customs. Or, seen through the lens of Steven Pinker’s Better Angels of Our Nature and declining violence over time, we can see how strict formal norms provided protection against unprovoked violence, and how looser dress and conduct codes usually correlated with peace, prosperity, and physical safety. Or one can have a hearty laugh at the truly outrageous stories Goodman shares. Better, one can do all three.

In the Media: Tariffs

I am quoted on President Trump’s new steel and aluminum tariffs against Brazil and Argentina in Politico ‘s Morning Money and The Washington Times.

Steven Levy – In The Plex: How Google Thinks, Works, and Shapes Our Lives

Steven Levy – In The Plex: How Google Thinks, Works, and Shapes Our Lives

A corporate history of Google from its founding up until 2011 or so. This book was written with the cooperation of Google’s founders, so it is not an objective history, nor should it be treated as such. It is still useful. A sequel may also be in order before too long. Since this book was published, Google has created its own parent company, Alphabet, and diversified into areas from video to maps to driverless cars. It is also undergoing multiple antitrust investigations, and growing ire from right and left populists could have massive consequences for consumer welfare, innovation, and for competition policy going forward.

Google has changed quite a bit since its early days, but anything violating the consumer welfare standard is difficult to find in here—though, again, this book is not an objective history. If anything, fear of regulatory reprisal put a damper on some of Google’s innovative ideas almost as soon as they realized the company would be a success. That, as opposed to market share for searches or advertising, is evidence of consumer harm.

Some of Google’s early mistakes and learning experiences still loom large today, such as its acquiescence to Chinese censorship.

Levy also has a forthcoming book on Facebook out in January 2020.