Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Saturday, November 29, 2025

Students Deserve Mentors

The best form of education is personal mentoring. More of our educational and work system should get back to that model.

We learned some important things from the Covid pandemic. One is that fiscal stimulus really works. Another is that mRNA vaccines are highly effective, and their rapid and flexible development cycle makes them a superior platform for future vaccines. And another is that social interaction is deeply important, especially for young people. We all got used to Zoom, but for school children, that was a poor substitute, when it was even possible. Children were left significantly behind both academically and socially.

A recent segment on the PBS NewsHour touched on this in a discussion of adolescent development. Its message was that learning requires challenging opportunities and human relationships. Adolescents are going on a heroic quest to become adults. They thrive on active engagement with the world and need models of successful adulthood to learn from. How to provide these key functions in an optimal way? We know how to do this- by apprenticeship and mentorship. This model has been understood forever, from the schools of Athens to the medieval trade guilds to the graduate schools of contemporary academia. My grandfather was a baker in Germany, and in his turn trained many apprentices and journeymen to be bakers. I went to graduate school, which turned out to be a glorified apprenticeship under a renowned researcher, then went on to a journeyman position (aka post-doc) with another mentor. This model is an education in many dimensions- the technical ingredients of a craft, the management practices that make a successful organization, how to participate in a larger community that pursues socially important goals, and the discipline and moral integrity it takes to be a competent adult, capable of leadership.

Example of a certificate of attainment of mastery, 1927, for a bricklayer, attested by his mentors and examiners.


However, as a society, we are reluctant to make these kinds of investments in children and adolescents. Efficiency demands that class sizes be large, colleges impersonal, and money squeezed out of the system. Companies clamor for fully trained job candidates, expecting students to go into debt in trade schools before being hired into a paying job. Few young people get the kind of lengthy, personal training that they would most benefit from. Mentorship becomes a hazard of chance, if a boss in an early job takes an interest, or a teacher decides to make extra time.

Principally, I fault the corporate system, which has sloughed off its civic responsibilities to train people and propagate cultural knowledge. The economy is full of interesting and important jobs representing exquisite technical knowledge and other expertise. As a culture and economy, we are not going to maintain a high standard if we keep losing these skills and knowledge with every generation. Just look what has happened to the industries we have ceded to China. Innovation hubs like Silicon Valley are successful in part because training becomes a shared enterprise. New companies benefit from a large pool of experienced workers, who can switch between organizations with ease. No individual company carries the whole burden of training, but as companies become larger and more specialized, they have to take on the costs of training a larger proportion of their incoming employees. Yet they still benefit from the cross-fertilization of being in a highly skilled employment ecosystem.

To better serve young people, we need to make integration into corporate skills training more accessible and normal. The idea that students should be battling for unpaid internships is absurd and insulting- all internships should be paid, and they should be longer as well. The German trades system is an example, where companies and government cooperate in providing training to young people. The companies get a much better familiarity with future hires, who are also better trained. Many trades/sectors have a communal "training tax", which all companies pay, and which funds salaries to trainees and other training costs. This is one accomplishment of the union system in Germany, which is much stronger and better integrated into their industries than that in the US.

This model could be made more general in the US as a federal program, crossing all organizations in the public and private sector, funding internships and training for more students than is now done, setting up a more lengthy and regular apprenticeship system. The training/salary costs would grade over the first few years of employment from tax-supported to company-supported. Lowering the burden of a young first hire, both in financial terms and terms of knowing the candidates better, should encourage more hiring and more training by employers. 

Companies are often citadels of hermetic wisdom, when they are not going off the rails as predatory enterprises. Integrating more young people and an additional purpose of training into US corporate culture would counteract both of these problems, while helping the youth and preserving / propagating cultural knowledge more effectively.


Saturday, July 26, 2025

The Problem of Desire, Part 2

What is the future of capitalism?

Last week, I discussed how capitalism is a natural way for many of our desires to organize economic activities, though leaving important other desires out in the cold. The philosophical work to come up with alternatives to capitalism appeared, in the end, to be a practical dead end, however appealing to idealists. But what comes next? Once we have settled on the mixed political / economic system that is the rule over most of the modern world, how can we envision it serving humanity into the future? Is it sustainable?

The answer to that is: obviously not. We have far higher population, and use far more resources than the earth can supply sustainably. We might blame capitalism, but that is just the ugly packaging covering our own desires. There was a nice article in the NYRB recently about "degrowth communism", promoting the ideas of Kohei Saito, another provocative self-labeled Marxist. It makes of Marx some kind of prophet of green, which frankly could hardly be farther from the truth. Marx wanted workers to own the means of production so that they could all share in the fruits of modern technology, not to make them return to the idiocy of rural life. So, while degrowth is an important idea, its connection with Marxism is specious, other than the catastrophic degrowth unintentionally induced by the various implementations of Marxism through the last century.

If we excercised our wisdom, we would desire, first and foremost, a sustainable form of life. Unfortunately, our technologies and forms of pillaging the earth have ranged so widely by this point that we hardly have any idea of the harms we are causing and the shortages that are building up. Who would have predicted that plastics and forever chemicals would turn into a growing plague? Who has the answer to climate change? The key thing to realize, however, is that we have the power. We do not need a revolution overturning capitalism, because we have the state. The state can regulate, it can nationalize, it can utility-ize, it can crush companies or create them. It can make the rules and change the rules. It is through the state that we can express our larger desires for sustainable and decent living. 

For example, states can (and have) set up a carbon tax to move the transition away from fossil fuels. California has done so, as have many other countries. Just because we in the US are at a corrupt and mean political moment where short-term (at best) thinking rules the roost does not mean that people's deeper and longer-term interests will forever remain submerged. Indeed, this moment has provided an instructive (if appalling) window into how powerful the state can be. 

The article cited above also maintains that growth is inherently tied to capitalism, and that degrowth requires a revolution of some kind. Again, I beg to differ. Capitalism simply is a way to satisfy our desires. If we want to live simply, it will still serve us. Whether growing or contracting, capitalism marches on doing its best to satisfy our desires. Companies compete for business and growth, but there are plenty who have stable business models, such as, to take one example, the toothpaste business. 


More interesting is the popular revolt against growth that is expressed in declining birth rates. All over the modern economies, people are having fewer children, and causing a great deal of head-scratching and alarm. Is this due to the death of patriarchy? A fear of the future? The death of boredom? I think it has a lot to do with the fundamental contraction of our frontiers and a sense of limits. After a couple of centuries of breakneck growth, when large families were common and there were always new territories to occupy, we in the US hit the ceiling in the 1970s. Cities stopped growing, housing construction slowed, zoning enforced stasis. The expense and complexity of raising children in this environment grew as well, becoming subtly more competitive than cooperative. 

So, growth is slowing already, but not enough to save us from extreme ecological harms. We do need a more conscious degrowth strategy, encompassing accommodation of lower population, slowing down of lifestyles in some regards, strong movement through the sustainable energy transition, expanding natural habitats instead of degrading them. In all these issues, capitalism is not the problem. The problem is figuring out what we really want. In Europe over the centuries, there was a gradual transition from building with wood to building with stone. Which is to say, the value of sustainability gradually won out over wasteful short-term solutions. We need to start building in stone, metaphorically, thinking of the next hundred and thousand years, not just our own brief lifetimes.


Saturday, July 19, 2025

The Problem of Desire

We got what we want... are we happy now?

I have been enjoying a podcast on philosophy, which as is typical for the field, dances around big questions and then pats itself on the back for thinking clearly. What really got to me was a discussion of why Zizek, who calls himself a communist, couldn't be bothered to frame a positive system for how the world should be run. No, he is merely the philosopher and critic of the screwed up system we are in. Plenty of hard work there! Asking for a way forward, well, that would be like making the visionary have to build the rockets and recruit the astronauts to build the new world. That is someone else's work ... grubby details!

Whoa! The thinker who is just a critic is leaving the job almost wholly undone. Everyone is a critic, after all. The paying work should be in thinking up better worlds and solutions, and standing behind them in the face of the inevitable, yes, criticism. A major obsession of the show and these philosophers (around the 200 episode mark) is capitalism- why it is so terrible, the many critiques and complaints about it, and throwing some love at the anarchists, communists, and other outrĂ© comrades ... on the highest philosophical plane, of course. 

But what it all boils down to for me is the problem of desire. The capitalist system is one natural and highly refined way to get what we want. We pay into the system with our toil, and get back the products of everyone else's toil. Fair and square, right? The system is wholly shaped by desire. What the consumer wants out of the system, what the worker knows they need to do in order to be that consumer, and what the capitalist and managerial classes need to do to put the two together, and make a killing for themselves in the bargain. This system is a wonder of labor allocation, providing the most varied and productive forms of work, and of products, ever known.

A still from Chaplin's Modern Times.

And yet... and yet, this system doesn't really give us everything we want, because, well, there are other desires that aren't met in the capitalist market. Desires for love, for community, for a virtuous and just political system, for a wholesome environment. There are a lot of other desires, and letting capitalism gobble everything up and sell itself as the end-all of social organizing principles is obviously not a healthy way to go. Though we have surely tried! Not to mention the warped psychology of pitting everyone against each other in the many competitive planes of capitalism- the labor market, the exploitation by capitalists, assaults of marketing and advertising, and the resulting inequality of income and wealth. There is plenty to complain about here.

The problem is that we have many desires, of which many conflict with the desires of others, and many conflict with each other. Even for the individual person, prioritizing one's own many desires is an excruciating exercise of tradeoffs and negotiation. Imagine what that is like for a whole society. That is why figuring out what is "good" is such a chestnut in philosophy. We all know what is good at some very abstract level, but the variety and relationship of goods is what does us in. 

So it is easy enough to say that the capitalist system is evil, and we would like a new and better system, please. Much more difficult to frame a replacement. Following our desires makes it clear that capitalism is an element of the good life, but far from the only element. Even something as simple as providing toothpaste can not be left entirely to the capitalist system. Our desire for effective toothpaste can easily conjure up fraudulent business "models", where the fluoride is left out, or lead contamination gets in. The government has a role in this most humdrum of capitalist goods, to provide a legal framework for liability, perhaps direct regulation of medical / food products, not to mention guarding against monopolies other forms of business regulation. 

We end up, as we have in practice, with a mixed system where natural capitalist motivations are fostered to provide as much organization as they can, but our many other, often much more lofty and significant, desires lead us to regulate that system extensively. To put a larger frame around this, consider what the good life is in general terms. It is a life where each person is educated to the extent they wish, and contributes in turn to society in some useful way, building a life of mutual respect with others in their community. It aligns very strongly with the American dream of work, striving, and self-reliance, at least once the genocidal clearance of the original inhabitants was taken care of. The Civil war was premised on the abhorrence of slavery, not only on behalf of the abused Blacks, but also as a philosophical system of life where people thought it their right to live parasitically by the sweat of other people's brows. 

This has strong implications for our current moment, where inequality is higher than ever. A well-organized society would reward work with the kind of pay that supports a respectable life. It would not tolerate immiseration and abuse in the labor market. At the same time, it would not allow the incredible concentration of wealth we see today. And especially, it would not allow the intergenerational transfer of that wealth, nor the complexity and laxity of a tax system that provides the majority of work that the rich appear to engage in- that of avoiding taxes. In order for everyone to live a good life, children should neither be born to so much money that they fritter their lives away, nor to so little that their whole futures are immediately wiped away. All this requires a strong and moral state, working in collaboration with a strongly regulated capitalist system.

It has been abundantly proven that neither anarchism, nor communism, nor libertarianism provide the basis for practical societies. No amount of reframing, or consciousness raising, or struggle sessions, will bring such systems to pass. Only theocracies and autocracies have shown a comparably durable basis, though of a distinctly unpleasant kind. Therefore, philosophies that dabble in such utopianism should recognize that they are dealing in abstractions that can be instructive as extreme ends of a spectrum, as well as object lessons in failure. It is simply malpractice to tease people with glimmering alternatives to our communal realities, rather than doing the gritty work of reform within them.


Saturday, June 7, 2025

Party Of The Future

Not the past ... what the Democrats can do to succeed.

The Democratic party has gotten a little lost, perhaps led a bit too well by Joe Biden, who wandered out of a more civilized and decent time. But focusing on personalities would be wrong- there are much deeper currents at work. While it remains hard to believe that billionaires have successfully hijacked the US government on the back of demogogic appeals to the uneducated, resentful, and bigoted, that is pretty much where we are. Those billionaires are dismantling the US government as fast as humanly possible, so it is imperative for the Democratic party to regain its grip on reality, and on a winning coalition.

One of the more remarkable aspects of the new administration is just how retrograde it is. Its obsession with tariffs comes out of economics at least a century out of date. There was the weird fetishization of William McKinley, and of a replay of our colonial interlude from the late 1800's vs Greenland, maybe even Canada. There is the rollback of the regulatory state, the literal gilding of the oval office, and blithe dismissal of the last hundred years of public health advances. Rather than making America great again, it is making America backwards again, waging a bitter war against the universities and any elites not bending the knee. At this rate, we are heading backwards by the week, to perhaps before the Revolution and onwards to the depths of the royal prerogatives of Henry VIII. Who everyone says was a very great king, by the way!

It is fine to complain, (while we still can), but the more important task is to come up with a better message and coalition, so that the US can get back to looking forward, instead of backward. One way to look at the electorate is in very broad thirds- one elite third, rich and business-centric, another elite third, college educated and liberal, and one third working class. 61% of the population have some college, and 45% have a college degree of some sort. The Democratic party has increasingly moved from its base in the working class to this educated portion of the electorate, and we should own up to what is in essence a battle between two elites- the business elite and the educated elite. These have very different ethics, at least at this late phase of capitalism, when business leaders (if we can call the president that) seem just as interested in business models of grift and fraud (subprime loans, lying about fossil fuels, crypto) as those that build the country. 

Face the past

This diametric difference in ethics is why the divisiveness is at such a fever pitch now. But Democrats made a lot of mistakes as well, of which I can mention four. First, immigration. The utter loss of control at the southern border was highly unpopular. It was unfair to everyone who participated in the (highly unfair, and punishing) legal immigration system. It showed scenes of chaos and lawlessness. And it was an economic threat to everyone on the lower end of the economic spectrum- exactly those demographics the Republicans were aiming at. Second, extreme woke. With the best of intentions, liberal elites set up increasingly abstruse and extreme theaters of correctness, demanding oaths of DEI adherence from faculty, celebrating every deviance from tradition- in the political sphere, in children's literature, and the ever-extending letters of the LGBT... etc. community. All this strenuous virtue signaling was highly distracting and estranging from the bedrock of political coalition-building: unity and common sense. Third was foreign policy, principally the disastrous Afghan withdrawal. For all of the Biden administration's competence in policy over a vast gamut, this was handled very poorly. Granted, it was a cake that was baked by the Trump administration's bad deal with the Taliban, and the management on the ground was run by the military, not the White House, but whatever the cause, it looked bad to catastrophic for US standing the world. And fourth is regulatory gridlock, sapping our ability to build anything, driving up housing costs specifically.

Democrats can not just wait out the madness in Washington, and expect to be elected as the default governing party. They have to face up to ways they have strayed from a winning coalition, and think deeply about fixing it and offering a narrative and program that is both responsible and welcoming to most Americans. 

Face the future

The basic problem of US politics is that we have some unpleasant truths to face. The frontier is gone, the climate is rapidly heating up, US international power is declining. We have rapidly switched from a rising, expansive, and optimistic power to a conservative and somewhat crabby power. Our last tango with a new frontier, that of space, ended up cruelly fruitless. Robotic scientific missions have been spectacularly productive, but manned spaceflight has gone from the height of optimism to another rote exercise in great power sclerosis. There is no there there, in terms of any economic, let alone demographic, frontier. And on top of that, the planet we are thus stuck on is becoming increasingly uncomfortable, even hostile. The future is looking a bit constricted, and more so because the rich elites have lost any sense of collective dedication, and devote themselves to screwing everyone else.

Republicans have addressed these issues by lying, denial, and fantasy, powered by their rabid media sphere. Obviously, Democrats have done and will do better. The current administration makes it clearer than ever what the regulatory state is about, and it is about helping people and restraining the powerful. Democrats need to keep beating the drum that financial protection, drug regulation, food inspection, securities fraud investigation.. these are all aimed at keeping the system fair for the regular citizen. They are not "the deep state", they are not very expensive, either. They are hated only by their antagonists- fraudulent businesspeople. More broadly, inequality is culturally corrosive and calls for taxing the rich more, not less. It is insulting to working people that income from capital gains (let alone carried interest) is taxed less than labor. Everything should be taxed the same- investments, labor, estates, changes in trust membership ... everything.

Build the future

At the same time, practicality has to take a front seat. Democrats need to alter course to promise that regulators keep their eye on the ball of efficiency- fulfilling their mission without tying the economy in knots. This applies particularly to building and zoning. The most liberal areas of the country are also the most conservative, in terms of real estate. The dread of "sprawl" has excused total stasis and lack of building, even as immigrants are allowed to flood in. The result is predictable enough. 

Next, the environment. Democrats did the responsible and foresighted thing with climate bills of the Biden administration. And that helped to build up the green transition. Too little, too late, but these were broadly popular, and need to be continued. The problem is that we are still facing a difficult transition, particularly from gas cars, and on a wide spectrum of other harms such as plastics, habitat loss, resource scarcity. Democrats need to take the long view here that sustainability is the ultimate goal. Everyone can see that our current practices are not fundamentally sustainable. Catastrophes ramp up in frequency and intensity. Democrats have to be the truth-tellers here, while pointing out that building green is beneficial across the board.

Lastly, education. Our education system lays the golden eggs, powering the future of better living standards and international competitiveness. It should be easy for Democrats to make the case against the war on education being carried out by the current administration. Yet, some rebalancing is needed. We have neglected the working class end of the system, and should strengthen community colleges to provide more low-cost trades education. It is appalling that the poor are preyed upon by fly-by-night trade schools in a rich country that supposedly has high standards of education and workmanship. 

Additionally, Democrats might address the deeper malaise among the young and in the culture at large by calling for national service. Two years for young people spent on serving others would be highly beneficial. Choices could range from military to conservation corps, and medical assistance. The main condition would be that these would be non-specialized, mixed groups so that participants work with people from all walks of life in the US, (or in the Peace Corps), broadening their experience and vision of what it means to be part of this country. Call this a form of civic education, essential to a democratic society.

Democrats have the tools, and need to reach out a bit to form a bigger coalition. The right wingosphere has successfully demonized learning, knowledge, and regulation, and it is all coming home to roost in the current administration. But the regulatory state was built originally not out of a college educated coalition, but a progressive working class movement, revolted by the corruption and inequality of the gilded age. Republicans can't help themselves but serve the rich and powerful. Democrats can re-align with their natural coalition.


Saturday, April 19, 2025

Making America Great: First Quarter Report Card

Are we great yet? I give some grades.

Enhancing the rule of law, and adhering to the constitution: F

This administration is characterized by contempt. A juvenile contempt for its enemies, and thorough contempt for the law, separation of powers, and the constitution. In asserting its royal prerogative to eviscerate legislatively created agencies, it is taking more power from congress, as if congress weren't sufficiently neutered and ineffective already. We are watching a replay of the transition of Rome from a republic to a monarchy, though in much more ham-fisted fashion, as its senate was sidelined. So far, the Republicans in congress do not see the danger, as they cheer on the mayhem. But it will come for them more directly in due time, maybe in Trump's third term, as he grooms Eric to be next in line.


Economic growth: F

The markets have given their verdict, which is thumbs down. The trade war this administration has started, in royal fashion, is bad for us and bad for everyone else. Even putting aside the short-term insanity, the long-term implications are lower living standards and lower growth. To take one example, what is going to happen if people in the US are effectively confined to buying US-built cars? We will be going back to the 60's and 70's, when cars were poorly built, and the captive market meant that US car makers did not have to innovate. We should focus on strategic industries, to preserve base-line capacity to build things, but otherwise let foreign trade work its economic magic.


Peace on earth: F

The new administration is siding with aggressors all over the world now, especially Russia and Israel. China is the only exception, though its support for Taiwan is quite a bit more tepid than that of the last administration. Siding with aggressors is a recipe for more war. More broadly, the US has lost its moral high ground, such as it was, and is losing friends at a rapid clip. I mean, how can one alienate Canada? That really takes some serious stupidity. Trump was angling for a Nobel Peace Prize, by ending the Ukraine war. But predictably, Putin plays him for the fool he is, and keeps on doing what he wants to. The instability and madness of the current administration is another factor all by itself, leading to international instability and higher risk for war, not to mention driving countries around the world into the arms of the truly stable genius... China.


Education and innovation: F

Of all the things that make our country great, it is education that has the greatest long-term implications. That is where the human capital comes from, and the technological innovation. We can grant that Republicans rely on less educated voters, so logic dictates that they make voters less educated. And that is what this administration has been doing with determination, eviscerating the department of education, cancelling and slashing funding for research, and ultimately promoting the destruction of public schools, through vouchers and other long-standing hobbyhorses of the right. This may make a country more amenable to royal rule, but is unlikely to make the US anything other than a diminished and declining power with lower living standards, less attractive to foreign students and foreign investment. China will shortly be the leading nation in high-level scholarly research.


Health and Safety, Pro-worker Policy: F

Here as well, the administration has spoken loudly through its actions and appointments. Putting an anti-science vaccine denier in charge of HHS, and slashing personnel throughout the health agencies, and OSHA, and immediately kneecapping the labor relations board. Medicaid is slated to lose a trillion dollars, in favor of tax cuts for the rich. It all says that business and the rich are the true constituency of this administration, not people, let alone workers. Workers, indeed, are the evident enemy. How different this is from the campaign rhetoric! But that is how grifters work. And they will be gone before the real costs sink in.


Safeguarding democracy: F

Honestly, is this even a subject?


Culture and style: F

White Potus. Also, the Zelensky meeting


Drain the swamp: F

The inauguration set the tone, as Trump introduced an eponymous meme-coin, which his friends and insiders stocked up on before the public offering, in a naked pump and dump, even if the dump part of the operation has been delayed. Much bigger, however, is the tariff-palooza, which has the world "kissing my ass". No possibility of corruption there! If there were a lower grade than F, it would be awarded here.


Clear and elevated rhetoric: F

Again, the Zelensky meeting. I recently watched a documentary series on John F. Kennedy, which demonstrated that one needn't go back to the 19th century to encounter well-written, coherent, and civil political discourse in America. While admitting that the Biden administration was hardly a high point of forceful communication, at least it was civil- domestically and to our friends and partners abroad. Trump and his toadies compete for juvenile putdowns, unthinking meanness, and large helpings of lies. When actual policy is needed, elliptical "the weave" expressions clear the field of coherent thought, to make room for more chaos and cons.


OK, other than in these areas, things are going great. If your metric is owning the libs, destroying the government, giving away the store to the rich and to Russia, and having people line up to kiss the president's ass, then everything is going very well. 

It is important to understand that, generally speaking, the government exists to protect people from each other, especially protect the little people. The rich can take care of themselves, at least until things get really bad. It is the little people who need the Bill of Rights, the consumer protection bureau, the SEC, the FDA, the VA, OSHA, and all the other regulatory agencies that keep the rapacious wolves of capitalism on their leashes. Everyone benefits from civil service protections, transparency, rules, and law. But the little people benefit the most, because they are beset the worst in the capitalist system. All men are created equal, but not really. The insanity of giving up our government to the people with the most money is truly astounding, and we are seeing the fruits daily.


  • Gary Kasparov gives some advice.
  • Law, schmaw.
  • The three-toed sloth posits AI is not intelligent, but another cultural technology, maybe a regurgitation machine. Or a feral card catalog. But does it help us think better?
  • The barriers to knowing thyself.
  • Making China great again.
  • Gosh, if RFK wanted to get to the bottom of autism, did he attend this talk downstairs?

Saturday, January 11, 2025

A Housing Guarantee

A proposal for an updated poor house.

I agree with MMT economists who propose a job guarantee. That would put a floor on the labor market with an offer to anyone who wants to work for a low, but living wage, probably set below the minimum wage mandated for the private sector. State and local governments would run cleanups, environmental restoration, and care operations as needed, requiring basic discipline and effort, but no further skills. But they could use higher skilled workers as they come along for more beneficial, complex tasks.

Similarly, I think we could offer a housing guarantee, putting a floor on homelessness and misery. In the state of California, homelessness is out of control, and we have not found solutions, despite a great deal of money spent. Housing in the private market is extremely expensive, far out of reach of those with even median incomes. The next level down is housing vouchers and public housing, of which there are not enough to go around, and which is extremely expensive. And below that are shelters, which are heavily adverse settings. They are not private, chaotic, unpleasant, meant to be temporary, can be closed much of the time. And they also do not have enough space. 

A local encampment, temporarily approved during the pandemic under the freeway.

As uncompassionate as it sounds, it is unacceptable, and should be illegal, for public spaces to be commandeered by the homeless for their private needs. Public spaces have many purposes, specifically not including squatting and vagrancy. It is a problem in urban areas, because that is where people are, and where many services exist at the intersection of public and private spaces- food, bathrooms, opportunities to beg, get drugs, etc. Just because we have been, as governments and citizens, neglectful of our public spaces, does not mean we should give them over to anyone who wants to camp on them. I was recently at San Francisco city hall and the beautiful park surrounding it. But at lunch time, I realized that there was nowhere to sit. The plague of homelessness had rendered park benches untenable. We deserve to keep these public spaces functional, and that means outlawing the use of public spaces by the homeless. At the same time, provision must be made for the homeless, who by this policy would have nowhere to go in fully zoned areas. Putting them on busses to the next town, as some jurisdictions do, is also not a solution. As a rich country, we can do more for the homeless even while we preserve public spaces.

I think we need to rethink the whole lower end of housing / shelter to make it a more regular, accessible, and acceptable way to catch those who need housing at a very basic level. The model would be a sort of cross between a hostel, an SRO (single room occupancy hotels) and army barracks. It would be publicly funded, and provide a private room as well as food, all for free. It would not throw people out, or lock them in.

This poor house would not demand work, though it would offer centralized services for finding jobs and other places to live. It would be open to anyone, including runaway teens, battered women, tourists, etc. It would be a refuge for anyone for any reason, on an unlimited basis. The space and the food would be very basic, motivating clients to seek better accommodation. It would be well-policed and its clients would have to behave themselves. The next step down in the ladder of indigent care would not be homelessness, which would be outlawed in areas offering this kind of poorhouse, but would be institutionalization, in increasingly stringent settings for either criminal or mental issues. 

Such a poor house might become a community center, at least for the indigent. It would be quite expensive, but given the level of inequality and lack of care for people in various desperate straits, we need to furnish a humane level of existence between the market housing system and institutionalization. Why not give everyone a house? That is neither financially practical, nor would that co-exist well with the market housing system. Certainly, more housing needs to be built and everything done to bring prices down. But to address the current issues, stronger housing policy is needed.

Why not go back to a public housing model? It turned out that public housing was somewhat unrealistic, promising far more than it could deliver. It promised fully functional neighborhoods and housing, pretty much the equivalent of market housing, but without the ongoing discipline from the market via private financial responsibility by the residents or from the programs via their bureaucratic structures and funding, to follow through on the long term. The public authorities generally took a hands-off approach to residents and their environment, in line with the (respectful) illusion that this was the equivalent of market housing. And the long-term is what counts in housing, since it is ever in need of repair and renovation, not to mention careful use and protection by its residents. Building is one thing, but maintaining is something quite different, and requires carefully though-out incentives. 

With a public poorhouse model, the premises and residents are extensively policed. Individual rooms may descend to squalor, but the whole is built, run and maintained by the public authorities with intensive surveillance and intervention, keeping the institution as a whole functioning and growing as needed for its mission. There is going to be a sliding scale of freedom vs public involvement via financing and policing. The less functional a person is, the more control they will have to accept. We can not wash our hands of the homeless by granting them "freedom" to thrash about in squalor and make dumps of public spaces.


  • Or you could join the squid game.
  • Economic policy should not be about efficiency alone, let alone rewarding capital and management, but about long-term cultural and environmental sustainability.
  • Could AI do biology?
  • Carter was an evangelical. But that was a different time.

Saturday, December 28, 2024

Money For Nothing: Two Views of Crypto

Is crypto more like gold or a simple scam?

I have to confess some perplexity over crypto. Billed as currencies, they are not currencies. Billed as securities, they are not securities, either. They excite a weird kind of enthusiasm in libertarian circles, in dreams of asocial (if not anti-social) finance. From a matter of fringe speculation, they are migrating into the culture at large, influencing our politics, and becoming significant economic actors, with a combined market cap now over three trillion dollars. For me, there are two basic frames for thinking about crypto. One is that they are like gold, an intrinsically worthless, but attractive object of fascination, wealth storage, and speculation. The other is that they are straight Ponzi schemes, rising by a greater-fool process that will end in tears.

Currencies are forms of money with particular characteristics. They are widely used among a region or population, stable in value, and easy to store and exchange. They are typically sponsored by a government to ensure that stability and acceptance. This is done in part by specifying that currency for incoming taxes and outgoing vendor and salary payments. They are also, in modern systems, managed elastically, (and intelligently!), with ongoing currency creation to match economic growth and keep the nominal value stable over time. Crypto entities would like to be currencies. However, they have far from stable value, are not easy to work with, and are not widely used. Securities, on the other hand, have a basis in some kind of collateral (i.e. the "security" part) like business ownership, a contract of bond interest payments, etc. Crypto does not have this either. Crypto has only its own scarcity to offer, a bit like cowrie shells, or gold. Crypto entities are not investments in productive activity. Indeed, they foster the opposite, as their only solid use case has been, at least to date, facilitating crime, as demonstrated by the ransomware industry, which asks to be paid in Bitcoin.

So how about gold? Keynes railed against gold as the most useless, barbaric form of wealth, inducing people to dig holes in the earth and cause environmental degradation. And for what? A shiny substance that looks good, and is useful in a few industrial applications, but mostly was, at the time, held by governments in huge vaults, notionally underpinning their currency values. Thankfully we are past that, but gold still holds fascination, and persists as a store of value. Gold can be held in electronic forms, making it just as easy to hold and transfer as crypto entities, if one is so-inclined. Critically, however, gold is also physical, and humanity's fascination with it is innate and enduring. Thus, after the apocalypse, when the electricity is off and the computers are not connected anymore, gold will still be there, ready to serve as money when crypto has evaporated away. 

Bitcoin barely recovered from an early crisis. 

How durable is the fascination with crypto, as a store of wealth, or for any other purpose, under modern, non-apocalyptic conditions? Bitcoin is the grand-daddy of the field, and seems to have achieved dominance, certainly the field of criminal money laundering and transfer, as well as libertarian speculation. It appears to have a special mystique, whether from the blockchain, its "mining" system, or its mysterious pseudonymous founder. The other forms of crypto range from respectible to passing memes. There is a fascinating competition in the attention space that constitutes the crypto markets. Since they do not have intrinsic value, nor governmental buy-in, they float entirely on buyer sentiment, in a greater-fool cycle of rises and falls. Crashes in the stock market are halted by fundamental value of the underlying asset. As the speculative fervor wanes, vultures step in to, at worst, liquidate the assets. But for crypto, there are no assets. No fundamental value. So crashes can and do go to zero.

There are also external factors, like the fact that many crypto entities have been outright scams, or the environmental costs of Bitcoin, or their facilitation of criminality, which may eventually draw popular and regulatory scrutiny. Boosters have been trying to get the Federal Reserve and other validating entities to buy into the crypto craze, and political contributions from newly crypto-riche holders and exchanges have transformed the landscape to one that seems increasingly sympathetic, especially on the Republican side. Thankfully, the smaller memecoins have market caps in the low millions, so do not present a threat as yet to the financial system, in the almost certain event of their evaporation once each meme passes. This blasĂ© acceptance of "securities" that are pure schemes of speculation is a sad commentary on our current age. The sophisticated investor of today would not study corporate efficiency, market prospects, or finances. He or she would be conversant in current memes on social media, ready to jump on the newest one, and sensitive to the withering of older memes, in an endless conveyor belt of booms and busts. 

It is weird how people fail to learn the lessons of the past, from the tulip craze and other speculative booms. Where there is no value, there is likely to be a very deep crash. The libertarians among us, who may have been gold bugs in the past and now have flocked to the new world of crypto, may represent a psychological type that is ineradicable, so motivated to ditch the humdrum official currency for anything that offers a whiff of notional independence, (though being tethered to the new crypto infrastructure of exchanges and wallets is not for the faint of heart or independent-minded), that they can float these crypto entities indefinitely. But in the absence of deeper value, might their psychologies change to those of hawkers who get in at the ground floor and make out, while the schlubs who buy at the top are left holding the bag? It comes down to human psychology in the end- what is personally and socially valuable, who you think your counterparts are on the other ends of all these trades, and who (and what sort of motivation) is making up the institutions and communities of crypto.


Saturday, November 23, 2024

Things Shouldn't be This Difficult in Retirement

Social Security is engineered to cheat a lot of people. Why?

Social Security was one of the great and enduring accomplishments of the New Deal. It followed European models of progressive policy, insuring old age income for what was at the time a very low cost- a 2% tax on wages. It is fundamentally a semi-progressive program, with payouts indexed to what you earned (and paid in as taxes) while working, but using a formula of sharply diminishing returns at higher income levels. As we live longer and have fewer children, the finances of Social Security have had to be shored up a few times, with higher taxes, longer waits till retirement, and other revisions. One of the most devious of these has been the offer to get early benefits for a lower payout.

Basic Social Security rules: The monthly benefit payment is constructed out of a set of tiered rates, by income level, to define the "primary insurance amount", or PIA. The income level is based on the highest ten years of earnings. The lowest level of income (here up to $774 monthly) is paid back at 90%, for example.

A recent opinion column (with followup) noted that while 90% of people would be better off waiting to take their benefits, only 10% do, missing out on a large amount of lifetime income. The deal is that full retirement age is (now) pegged at 67 years of age. If you take benefits at the earliest time, age 62, you will get 70% of the full payout, forever. On the other hand, if you wait till age 70, you will get 124% of the full payout, (plus some extra based on inflation and other factors), which works out to almost double the lowest payout, each month. The life-time payout is of course highly dependent on when one dies, and the break-even point ends up at about age 77, after which everyone would do better waiting than taking the early payout. For example, if you make it to age 85, you would be 30% ahead in lifetime benefits having waited to take payments till age 70.

This is, as the columnist notes, a fraught policy. Psychologically, it resembles some of the most classic marshmallow experiments, testing self control in children. Just as most children don't have the self-control to wait for the two marshmallows, most retirees apparently do not have the foresight to maximize their ultimate income. And this is quite understandable. Principally, the future holds a great deal of uncertainty. Who knows (or wants to know) when one will die? Even if the average life expectancy, upon reaching age 62 is ~83, well past the breakpoint noted above, it is easy to rationalize taking the money while one can. Poorer people tend to have worse jobs, that they really want or need to retire from as soon as possible. The poorer one is, the less savings one is likely to have to tide one through from 62 to 70. And the poorer one is, the poorer health one is likely to be in, with a shorter prospect of collection. All in all, it can be an attractive, even compelling, deal.

But statistically, this ends up being a regressive policy, cancelling much of the otherwise progressively engineered system. Poorer retirees are in this way snookered out of possible income, on top of getting lower payouts to begin with (due to their lower incomes and contributions), and typically having shorter lives. It seems akin to the ever-loosening restrictions on gambling, sports betting, sub-prime lending, and the like, one more way to separate the poor from their money, via financial chicanery, aka engineering. It was a policy gradually developed over several Social Security reforms, from 1961 onward, and may have seemed a fair way to offer the option of earlier benefits to workers, to meet what can be rather urgent needs. But the psychology of it is very problematic and has produced what is described above- bad decisions by most people.

Some alternative models, accentuating their progressivity. Current Social Security is shown in red. A simple pay-in/payout plan is show in dashed lines, with no progressive aspect at all. And the solid line shows a flat payout scheme, where everyone is paid the same benefit. This was done by the Social Security administration in 2009, and notes that "... the program's progressivity has declined in recent decades."

How could all this be improved? There are innumerable ways to cut this cake, but the one I see as most promising is to go back to basics. Make the retirement age 65, and make the payout the same for everyone, across the board, at whatever level retains system viability. Then perhaps a special request board could be set up to offer earlier retirement, in cases of hardship or disability, related to the SSDI system already in place. This would be a way to reduce the complexity of the existing system, reduce the bad incentives, and make it more progressive at the same time. It would also strongly increase the incentive, at the lower end of the income distribution, to attain the needed work credits to participate in the system, which amounts to ten years of work that pays Social Security taxes. Death makes us all equal in the end anyhow, so a retirement system that brings that fundamental equality forward by a few years seems not just reasonable, but even a little poetic.


Saturday, October 5, 2024

Who Needs the Fed?

Project 2025 promotes "free" banking, which is to say, no pesky regulations or backstopping from the Federal Reserve. What could go wrong?

Policy wonks can't help themselves- they need to write down their plans so that all the world can see how brilliant they are, and how real they could be, if only others recognized their brilliance. In that way, the project 2025 plans from the Heritage Foundation have been a gold mine, at least for Democrats. And since the Republican Party couldn't be bothered to write down a platform, other than "anything Trump wants", this project serves as the functional platform of the current Republican campaign, written as it was by scores of officials from the first Trump administration, plus many others itching to be appointed to a second. And it is crazy- more like a project 1825 than anything we would want to look forward to.

One of its less publicized planks is its approach to banking. It heaps criticism on the Federal Reserve, and recommends, as the most effective solution, its abolition and a return to "free banking". Which means a world where no regulator controls the banks, and no federal reserve backs it up against panics and crises. And just to complete the return to barbarism, it recommends a return to the gold standard as well.

"In free banking, neither interest rates nor the supply of money is controlled by the government. The Federal Reserve is effectively abolished, and the Department of the Treasury largely limits itself to handling the government’s money. Regions of the U.S. actually had a similar system, known as the “Suffolk System,” from 1824 until the 1850s, and it minimized both inflation and economic disruption while allowing lending to flourish." - From Chapter 4

Needless to say, US history is littered with banking panics, runs, and depressions, usually due to the unregulated nature of this "free" banking and to monetary gold backing. It is hard to express just how absurd and damaging it would be to return to such a world. The Federal Reserve was conjured up after a long history of the establishment of the first national bank, then its destruction by Andrew Jackson, a century of economic instability with particularly damaging panics in 1893 and 1907. By 1913, the US finally had had enough, and set up an updated national bank in the form of the Federal Reserve, to regulate and backstop the banking system. 

Illustration from 1873, portraying "Panic" on Wall Street.


Unfortunately, until the advent of Keynesian economics, it didn't really know what it was doing, and was particularly ineffective during the Great Depression, making things worse instead of better. Even now, it amounts to a cabal of bankers who are more interested in jacking up interest rates than in national prosperity. MMT economists tend to think that interest rates should be kept low, and the functions of the Federal Reserve folded into the Treasury Department, with greater political oversight. The use of interest rates- which are such a blunt tool of economic policy- could then be de-emphasized, in favor of more dynamic fiscal policy to manage inflation and monetary conditions. It is worth noting that over the last eighty years, the Fed has routinely over-shot its mark in raising interest rates, ending up with recessions, and rapid, belated retreats to lower rates. It is only with the current cycle that it has achieved, at least so far, the dream of a soft landing, taming inflation while avoiding recession.


Recessions (gray) have regularly followed interest raising campaigns by the Fed, and not always intentionally.


But note that the word "depression" is no longer in our lexicon. For all its faults, the Fed has kept the economy on a much more even keel than was possible under the wild-west free banking era, when monetary conditions were hostage to whatever Yosemite Sam dug up in the Yukon, or how wildly bankers over-extended their issuance of notes. Banks built impressive buildings to foster the illusion of stability in an environment where stability was impossible, lacking the infinite backstop that the Federal Reserve can now bring to bear during a crisis. Both individual depositors and the population as a whole benefit. It is a classic example of the people of the US coming together to create an institution that makes our lives better, so that we can worry about other things than the next banking panic. 

This economic craziness is just one small example of the fevered imaginations of the right wing in current US politics, which seems to have crawled out from the former fringes of Lyndon Larouche and the Birchers to take over an entire half of our political system. And this is fundamentally thanks to the air given them by an appalling right wing media that cares nothing for truth or civility, rather making its money from button pushing, whining grievance, and reflexive anti-state propaganda. And people complain about social media! Just how long ostensibly reasonable and decent (even Christian(!)) people will wallow in this environment is anyone's guess, but our common, rational, and beneficial institutions will in the mean time be in constant danger.


Correction- The Republican convention did actually come up with a platform.

Saturday, September 7, 2024

Jimmy Carter, on Work

Jimmy Carter's "An Hour Before Daylight".

One marked contrast between the recent political conventions was the presence of former presidents. The Republicans had none, (excepting the candidate), not even the very-much alive George W. Bush, or past candidates such as Mitt Romney. The Democrats had two, plus Hillary Clinton, not to mention the current president, Joe Biden. There was additionally a representative of a fourth, Jimmy Carter, to say that he will be happily voting for Kamala Harris in the fall. It speaks to the extremist journey the Republican party has been on, compared to much more conventional (sorry!) path of the Democrats, with recognizably consistent values and respect for character and institutions, both their own and those of the country at large.

None of these Democratic leaders grew up rich. Each was formed in modest circumstances, before joining the meritocracy and working their way up. The Democratic party is now generally viewed as the party of educated people, government workers, and minorities, against the Republican coalition of the very rich and the very poor. One might summarize it as strivers through the educational system, as opposed to strivers through the capitalist system. For one group, being kind, smart, and hard-working are the annointing signs of god, while for the other, it is being rich. Some (usually Republicans) may think these are equivalent, but the current candidates demonstrate the opposite.

This theme is exemplified by the career of Jimmy Carter, who worked his way through Annapolis and a naval career partly spent in the naval nuclear program under Hyman Rickover, then worked his way to the Georgia governorship, the Presidency, and then kept on working through retirement, churning out books and doing good works. The finest of his books, (which are, frankly, a mixed bag), is apparently his memoir of his early life and environment, "An Hour Before Daylight". The theme, for me, was work- hard work. Carter grew up on a large farm, and worked constantly. The book's title comes, naturally, from when the farm day starts. There are pigs to feed, eggs to collect, cows to milk. There are fields to plow, trees to chop down, fences to mend, products to sell, and supplies to buy. The work was evidently endless, as it is on any family farm, and while Carter tells of many swimming, hunting, amorous, and other expeditions, it is the cycle of chores and worries around the farm that was clearly formative.

Jimmy with family, in his Sunday best.

But he was not the hardest worker. His family owned a lot of land, and in this segregated time during the depression, had numerous sharecropping tenants and employees, all black. Carter comments gingerly about this system, balancing his worship of his father with clear descriptions of the hopelessness of the tenant's position. They worked without dreams of attending Annapolis, or inheriting a large estate. Rather, debt was the typical condition, as the Carters ran the supply store as well as owning the land. Carter looked up to many of these employees and tenants, and recounts very close and formative relations throughout his childhood, with both black children and adults. At least until he was drawn, as the system had designed it, into the segregated churches and schools.

Jimmy at his most intense, a naval graduate.

It is hard to grasp, in our heavily urbanized and regulated existence, where work is a 9-5 job and we dream of weekends, family leave, remote work, and retirement, how much work went into a normal existance like this on a farm. Success depended not only on unstinting work, but on an even temper, shrewd foresight, family support, good community relations (including church attendance), and a lot of luck. The wealth and power of the US was built on this kind of scrabbling for economic survival and advancement. The capitalist system continually applied the screws, lowering prices for cotton when too much was being produced, a particular crisis during the depression. Carter tells of the continual inventiveness that his family devoted to new ventures, like selling flavored milks, roasted pecans, sugar cane syrup, boiled peanuts, and tomato catsup, all from their own crops. Not everything was successful, but there was a continual need, even in this out-pf-the-way rural area, to meet the market and keep coming up with new ideas for making money.

Most of all, Carter speaks with pride of his and his family's work. It provided their sustenance, and their relationships, and was thus intrinsically and automatically meaningful. Headed by a benevolent regime, at least as he understood it under his parents, it was an ideal world- busy, endlessly challenging, stimulating, and productive. This is what we need to think about in these end times of the loneliness epidemic and the plague of homelessness and meaninglessness. Religion was a strong presence, but hearing Carter tell it, it weighed relatively lightly on him and his family, (other than sister Ruth, perhaps, who became a renowned evangelist), being more a solace to the poor than a spur to the well-to-do. Their meaning came more from their community and their many and varied occupations. So when people speak of basic income programs, one has to ask whether that really addresses the problem. Much better might be a guaranteed job program, where everyone is offered basic work if they can not find it in the private sector. Productive work that benefits the community, along the lines of the WPA projects of the depression. Work is critical to meaning and mental health, as well as to our communities and nation.


  • Zoning and housing.
  • Religious nutters lose their minds.
  • Another great use of crypto- pig butchering.
  • Unbutchering one candidate's garble.
  • It smells like the mob.

Saturday, May 11, 2024

The Lucky Country

The story of California, the story of the US, and optimism about free frontiers.

I am reading "California, the great exception". This classic from 1949 by Cary McWilliams is stoutly jingoistic and pro-California. But it also provides a deeper analysis of the many things that made California such an optimistic and happy place. Mainly, it boils down to free land and rapid settlement by ambitious working people. The Native Californians were so weak, and so ruthlessly extirpated, that they did not present the irritating conflict that happened elsewhere in the US. California's gold was so widely and thinly distributed (as placer in streams) that mining was a matter of small partnerships, not huge businesses, as it became elsewhere in the West, in the deep hard rock silver and later copper mines of Nevada (Carson city and the Comstock lode) and Montana (Butte). The immigrants were of working age and enthusiastic to work, dismissing slavery and corporatism in favor of a rapacious entrepreneurialism. 

California never had a paternal territorial government, but transitioned directly from self-rule to statehood, its riches speaking volumes to the national government in Washington. And the national government was anxious lest secessionist sentiment spread to the still far-distant west, so it funded the building of a transcontinental railway, during the civil war when money must have been extremely tight. That feared secession was not to join the South, but rather to found a new and prosperous nation on the West Coast. San Francisco went on to serve as the financial capital of the West, particularly of western mining, creating almost overnight a collusus to rival the centers of the East. In due time, gushers of oil also appeared on the California landscape. It is no wonder that Californians became fundamentally optimistic, ready to take on huge challenges such as water management, building a great education system, and the entertainment of the world.

California was also blessed by weak neighbors on all sides. There were no foreign policy predicaments or military threats. It could nurse its riches in peace. It was, in concentrated form, the story of America- of a new continent limited more by its ability to attract and grow its population than by its land and the riches that land held. An isolated continent that wrote its society almost on a blank slate- a new government and a melting pot of people from many places. 

Bound for California, around 1850.

How stark is the contrast to a country like Ukraine, neighbor of imperialist Russia and before that host to the Scythians, Goths, and Huns. A flat land exposed on all sides, that has been overrun countless times. A fertile land, but always contested. The idea that history would stop, that Ukraine could join the West, and enjoy its riches in peace and security- that turns out to have been a dream that bullies in the neighborhood have a different view on. Better to beat up on the little "brother" than to build up both nations and economies through beneficial exchange and prosperity. Better for both to go down in flames than that the little "brother" escapes the bully's clutches into a more humane world.

But the happy place of the US and Calfornia has hit some rough patches too. It turns out that our resource riches are not endless after all. The foundation of material wealth- the agricultural land, the mines, the lumber- underwrote social and technological innovation. No wonder the US was first in flight, and led the way in electricity, automobiles, the internet, the cell phone. Now we have an innovation economy, and get much of our materials and lower-grade goods from far-off places. The people we have attracted and continue to attract are the new wealth, but therein lies a conflict. Places like California have huge homeless populations because we have ceased to grow, ceased to embody the hope and optimism of our lucky past. Conflict has raised its head. There is no more free land, or gold in the streams. Now, with the land all parcelled up and the forests mowed down, everyone wants to hold on to what they have, and damn those who come after. Prop 13 was the perfect expression of this sour and conservative mood- let the newcomers pay for public services, not us.

California is transitioning from a visionary frontier into a cramped, normal, and not especially lucky place. The fabulous climate is suffering under fire and drought. The population is growing significantly older, while next generation is educated less well then their parents. The app innovation economy has fostered a nightmare of surveillance and social dysfunction. The pull of a new frontier is so strong, however, that some of our richest people now imagine it on other planets. The irony of sending rockets, fueled by vast amounts of fossil carbon and compressed oxygen, to other worlds where there isn't even air to breathe, let alone plants to cut down, begs belief. It is the final gasp of a dream that somewhere, out there, is another lucky country.


  • We are a front in the authoritarian war for the world.
  • Truth will out, eventually.
  • Aging is in the crosshairs.
  • The sad fate of Russia's Silicon Valley.
  • Do we vote for merely corrupt, or fully bought and paid for politicians?
  • New advances in low power, low cost, low fright MRI.

Saturday, March 23, 2024

Renewable Power in Africa

Prospects for growth in electricity access and in clean energy.

Africa is an enormous continent, notoriously larger than China, the US, and Europe combined. Its population is also large- as large as that of India, at about 1.4 billion people. This population is growing rapidly, while its social and economic systems are developing more slowly. But as we know, the main ingredient of an advanced economy is power, which as traditionally been drawn from fossil fuels. Advanced economies are in the painful and reluctant process of transitioning away from fossil fuels. We can do a lot to help Africa to leapfrog this history by front-loading renewable energy.

There was a recent paper about the hydropower prospects in Africa. It notes that there are many projects on the drawing board, with many undammed rivers on the continent. But as we have learned in the US, the implications of river damming are quite destructive and wide-spread. For example fish ladders simply do not work- not at the scale needed to keep fish populations (and fisheries) healthy. Then there are problems of siltation, water temperature, erratic flows, and population displacement. There is a movement in the US to remove dams wherever possible, to free ecosystems back to a functional state. 

"More than 300 hydropower plants, corresponding to an additional 100-GW power capacity, are under consideration across the continent."

The article made the basic point that, given the state of other renewable power sources, and the prospect of lower water levels and droughts due to climate change, that roughly half of the planned hydropower projects they know of are economically inviable, even putting aside environmental considerations. 

This leads to the question of what to do instead? Maybe the answer is microgrids. In the developed world, it is increasingly common for people to take control of their own electricity production through the use of solar power. But at a single house level, power inputs and consumption are both erratic and require a lot of storage capacity to furnish a reliable system. The typical system is highly reliant on the larger grid to manage this intermittency. Microgrids occupy a middle range between grid-scale power, which is subject to problems of centralized political and social development, and the individual house, where the expense of managing fully independent electrical supply is highest.

The current grid in Africa, colored for >66 kV (dark blue) and the rest light blue. Note the patchy regional distribution, with lots of underserved areas. The US has a much denser grid. 

A map that suggests likely locations for smaller microgrids in Africa.

These maps note that there are many underserved areas in Africa- some concentrated urban areas, and a great spread of rural areas. Electrification is well-advanced in South Africa and the heart of West Africa. But there are many rural areas that would be better served by microgrids of various scales. Microgrids can be altered over time and integrated into larger systems. Their production and storage capacities are both beneficial for larger grid stability and scalability. Africa is, naturally, positioned ideally for solar power, and the Sahara is a natural location for massive power installations, to serve both Europe, the Middle East, and Africa.

A proposal to run a super-grid around much of Africa, to harness supplies from the Sahara, among other sources.

One of the main characteristics of renewable power is that it has high up-front costs. The fuel is free, and clean. But the mechanisms to capture and store it are expensive. Thus if we want to encourage a more rapid transition to sustainable power systems in Africa, we would help pay for the up front costs, sharing capital investment in the interests of everyone, both here and there. Africa is currently a big exporter of oil and gas. As other regions transition away from those fuels, it is imperative that this production not be redirected and propped up by further Western investment, but rather replaced with better energy sources.