Something to Consider

Something to Consider discusses the interplay between economics, history, and various societal issues. It critiques theories, explores institutional impacts, evaluates economic policies, and investigates public behaviors. Recurring themes include economic development, decision-making, the role of institutions, and societal progress.

Economics History Public Policy Social Issues Human Behavior Institutional Analysis Healthcare Innovation

The hottest Substack posts of Something to Consider

And their main takeaways

The problem with psychology is that it has no theory

1019 implied HN points • 07 Jul 24
📖 Philosophy Psychology Economics Human behavior Theories Science
  1. Psychology lacks a solid theoretical framework, making it difficult to draw reliable conclusions from research. Without a guiding theory, findings can feel random and disconnected.
  2. Economics, on the other hand, is built on clear theories that help explain and predict human behavior in markets. These theories allow economists to make strong and testable predictions.
  3. A theory in economics helps researchers know what to expect, and it can influence actual outcomes in the real world, unlike the often unclear results in psychology.

Let’s Use Prediction Markets for Olympic Athlete Selection!

139 implied HN points • 01 Aug 24
🎾 Sports Athletics Olympics Competition Betting Selection
  1. Using prediction markets could help select the best Olympic athletes. It lets people bet on who they think will win medals, creating a more informed decision.
  2. A single race can be too random to decide who goes to the Olympics. Markets can help show which athletes have the best chances over time.
  3. This approach could work alongside the current Olympic trials, giving athletes an extra chance to prove themselves. It encourages transparency and competition among the athletes.

The High-Wage Thesis isn’t even wrong!

159 implied HN points • 26 Jul 24
💾 History Economic History Industrial Revolution Labor Economics Technological Change
  1. The High-Wage Thesis suggests that higher wages encourage investment in technology, but this idea is poorly supported by evidence. It means that just because wages are higher, it doesn't necessarily lead to faster innovation.
  2. Instead of focusing solely on labor costs, we should consider the absolute costs of resources like coal that made certain technologies more practical. This could explain some innovations without relying on the idea of higher labor costs.
  3. The assumptions behind the High-Wage Thesis might not hold true, and questioning these assumptions can lead to a deeper understanding of economic history and industrial innovations. It shows the need for careful examination of widely accepted theories.

The Medicare Price Caps are the Moral Equivalent of Genocide

239 implied HN points • 01 Jul 24
🏥 Health Politics Healthcare policy Pharmaceuticals Public Health Economic Impact Regulation
  1. Medicare price caps could lower investment in new drugs, as they cut profits for pharmaceutical companies. Less investment might mean fewer new medicines in the future.
  2. Reducing drug prices could result in significant loss of life, as fewer new drugs mean fewer treatments for diseases. This effect is not just for the U.S., but could impact people globally.
  3. Instead of cutting prices, the focus should be on finding ways to help people afford medications. It's important to invest in pharmaceuticals to save lives rather than trying to cut costs at the expense of future health advancements.

Must we have these institutions forever?

139 implied HN points • 10 Jul 24
📖 Philosophy Institutions Trust Corruption Development Colonialism
  1. Our institutions and rules affect how well a society can produce and grow. Good institutions help foster trust among people, while bad ones can keep societies trapped in poverty.
  2. The legacy of harmful practices, like the slave trade, has long-lasting effects on trust and cooperation in societies. Areas that were heavily affected tend to have less trust even today.
  3. Changing poor institutions can help lift countries out of poverty. This might involve outside help or imposing better rules that foster cooperation and trust among the people.
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Experiences Quitting Twitter

99 implied HN points • 22 Jul 24
🎭️ Culture Social media Mental health Productivity Personal Growth Lifestyle
  1. Quitting Twitter can be easier than you think. After a short period of craving, you might find more freedom and productivity.
  2. Removing social media entirely might be more effective than just cutting back. It's like going on a strict diet; all or nothing might work better for habits you want to change.
  3. After cutting out Twitter, you might feel an initial sense of anxiety but it can quickly turn into a sense of relief and focus, helping you pursue more meaningful activities.

Will you turn down the darn lights?

59 implied HN points • 10 Aug 24
🕹 Technology Automotive Safety Lighting Regulation Innovation
  1. Modern headlights are much brighter than before, making it hard for drivers to see at night. This change is mainly due to safety standards that encourage brighter lights.
  2. The bright lights create a problem called negative externality, where too many bright headlights make it harder for everyone to see. Lowering the brightness can help improve safety and comfort for all drivers.
  3. New technology can help adjust headlights automatically based on other cars' positions. Advocating for softer lights and using adaptive headlights can make nighttime driving safer and more pleasant.

An Appreciation of Joe Stiglitz

139 implied HN points • 03 Jul 24
💼 Business Economics Market Theory Statistical Analysis Public Policy
  1. Markets work best when everyone has the same information, but that's rarely the case in reality. Stiglitz shows us how imperfect information affects economic decisions.
  2. Share-cropping has its own risks and benefits. It allows landlords to provide safety nets for tenants, but it can also limit tenants' work incentives.
  3. When companies pay higher wages, they can improve worker effort and reduce turnover. This is known as the efficiency wage theory, which explains why some businesses might choose to hire fewer employees at higher salaries.

We Must Pay More for Drugs

79 implied HN points • 27 Jul 24
🏥 Health Politics Drug Pricing Pharmaceuticals Consumer Rights Health economics
  1. Patents help inventors protect their ideas, but they alone can't ensure fair profits from innovations. We need more support to make sure inventors get what they deserve.
  2. In a monopoly, the price of goods reflects production costs, not research costs. This can lead to less innovation if prices don't encourage investment.
  3. To encourage more drug discoveries, we might need to pay higher prices or create subsidies and prizes for medical breakthroughs. It’s a tough choice, but necessary for progress.

Inequality is overwhelmingly between firms, not within

99 implied HN points • 13 Jul 24
💰 Finance Income Inequality Corporate Structure Economic Theory Labor Market Public Policy
  1. Income inequality is mainly based on differences between companies, not just between workers in the same company. Some companies pay their workers a lot more than others, and that's a big part of why inequality has grown.
  2. About 40% of this inequality comes from workers choosing to work at different firms. The other 20% is because some firms are simply more productive or profitable than others.
  3. We should focus more on how many highly skilled workers are earning a lot overall, rather than just looking at top executives. More people than ever have high incomes, showing that there's great potential for those who can add value in the economy.

Abraham Lincoln as Messiah

59 implied HN points • 04 Aug 24
⛪ Faith & Spirituality Mythology Historical Figures Cultural Identity American history
  1. America is often seen as a secular nation, but it actually has deep divine roots. The founding of the nation is tied to the idea of liberty, which is seen as sacred.
  2. Abraham Lincoln is viewed as a key figure for America's redemption. He is likened to a messianic figure who freed the slaves and is remembered for his ideals of equality.
  3. The National Mall symbolizes the body politic of America, with various monuments representing different aspects of governance and justice. It illustrates the connection between the nation's legacy and its core values.

The existence of the monopsony model does not imply a minimum wage is optimal

99 implied HN points • 12 Jul 24
🇺🇸 U.S. Politics Economic Theory Market Power Public Policy
  1. The monopsony model suggests there might be just one buyer for labor, which can create wage issues. However, just because this model exists doesn't mean we should automatically support a minimum wage.
  2. Implementing a minimum wage isn't straightforward because we can't easily measure supply and demand for labor. Different firms have different needs, making a one-size-fits-all wage unrealistic.
  3. Studies on minimum wage effects are mixed, but many show that while it can help some workers, it can also lead to slight job losses and reduced hours. It's also more complex than just raising pay; sometimes, directly giving support to people may be a better solution.

EAs should probably focus on recruiting the ultra-wealthy

99 implied HN points • 11 Jul 24
📖 Philosophy Ethics Altruism Economics Social Impact Fundraising
  1. Effective Altruism should prioritize recruiting wealthy individuals because a big donation can have a much larger impact than many small ones. It's more beneficial to convince one billionaire to give a large amount than to have thousands give small amounts.
  2. The reputation issues from past events, like the collapse of Sam Bankman-Fried's companies, shouldn't discourage efforts to recruit wealthy donors. The potential benefits of their donations greatly outweigh these concerns.
  3. Investing resources in programs that can attract wealthy individuals is seen as a very cost-effective strategy for Effective Altruism, as the benefits can be significantly greater.

Songs on the Death of Children

99 implied HN points • 05 Jul 24
🎭️ Culture Literature Poetry Art History Philosophy
  1. Friedrich Rückert wrote hundreds of poems after losing his children, showing how deeply grief can affect a parent. It's a powerful reminder of how loss can inspire profound creativity.
  2. People in the past faced death more regularly, especially with children. It's important to recognize that they felt grief just as strongly as we do today.
  3. The loss of children is still a significant issue today, as illustrated by the high number of child deaths from preventable causes like malaria. It's crucial to address and care for these vulnerable lives.

Kremer Patent Auctions

39 implied HN points • 05 Aug 24
💰 Finance Economics Patents Auctions Healthcare Innovation
  1. Patents are meant to reward inventors, but they can lead to inefficiencies and high drug prices. Finding a balance is important to encourage innovation while ensuring access.
  2. Kremer's idea of patent auctions could help by allowing the government to buy patents, making drugs cheaper and more available to everyone while still fairly compensating inventors.
  3. Collusion among companies can be a concern in patent auctions, but even with this risk, the potential benefits of better research funding could outweigh the drawbacks of higher prices from collusion.

Why can’t we just skip the ritual?

39 implied HN points • 03 Aug 24
🎭️ Culture Rituals Social Behavior Human Psychology Self-Expression Community
  1. Hypnotism is not magical; it helps people express what they want to do but don't usually allow themselves. It’s like getting permission to be silly and enjoy life.
  2. Many people drink alcohol to socialize, but it's more about feeling free to be open rather than because they need it. Alcohol acts as a permission slip for some to act more social.
  3. You can be fun and social without alcohol or any other crutch. The ability to connect and play is already within you; you just need the confidence to let it out.

Overestimating Climate Change Damages

79 implied HN points • 30 Jun 24
🌞 Climate & Environment Climate Science Policy Analysis Economic Impact
  1. Estimating climate change damages is tricky. It's important to look at unexpected temperature changes instead of just the overall rise in temperatures over time.
  2. People adapt better in the long run than we might think. While weather shocks can hurt people immediately, they learn and adjust to new conditions over time.
  3. The costs of climate change are serious but not as high as some estimates suggest. Humanity has a good capacity for adaptation, which should be considered when assessing potential damages.

Who Really Creates Externalities?

99 implied HN points • 15 Jun 24
  1. Externalities occur when one's actions affect people who were not involved in the decision. This can be good or bad, like pollution hurting others.
  2. To handle negative externalities, taxes can be placed, but it’s important to consider all options. Sometimes it's better for people to change behavior in different ways, like installing filters instead of stopping emissions.
  3. Governments should clearly define their goals and use market methods to find the best solutions for reducing externalities, rather than simply punishing those seen as the problem.

Futarchy, Distortions from Hedging, and Other Thoughts

79 implied HN points • 28 Jun 24
🇺🇸 U.S. Politics Governance Prediction Markets Economic Policy Risk management Voting Systems
  1. Futarchy is a new way to make decisions where people vote on what they want to achieve, but experts decide the best way to get there using prediction markets. This means we focus on outcomes instead of specific policies.
  2. When people are risk-averse, they might prefer safer options, and this can affect the choices made in a futarchy setup. It’s important to balance between achieving high goals and taking on too much risk.
  3. Even though prediction markets are useful, they can be skewed by people's efforts to hedge against risks. This means prices might not always reflect the true chances of outcomes, but they can still provide valuable information.

Conspicuous Consumption

39 implied HN points • 28 Jul 24
🎭️ Culture Consumption Status Leisure Economics History
  1. People often consume things not just for their value, but to show off and maintain social status. This is called conspicuous consumption.
  2. Sometimes, conspicuous consumption can lead to positive changes in society by encouraging people to work more, especially when new and interesting goods are available.
  3. Shifting our focus from comparing social status to comparing consumption might lead to better relationships and institutions.

The Chicago Cubs Really Were Hurt by Playing Day Games

139 implied HN points • 09 May 24
🎾 Sports Baseball Statistics Team performance Game analysis Historical context
  1. The Chicago Cubs had many daytime games which may have made them tired in the second half of the season. This could explain why they didn't perform as well later in the year.
  2. The team only started playing night games in 1988, much later than other teams, which might have also hurt their performance.
  3. Even today, the Cubs have fewer night games compared to other teams, and this could still affect their chances of winning.

You should get a pre-nuptial agreement

79 implied HN points • 18 Jun 24
💰 Finance Insurance Contracts Marriage Investment Risk management
  1. Getting a pre-nuptial agreement is like buying insurance for your marriage. It protects both partners in case things don't go as planned.
  2. Many people think a prenup shows distrust, but it actually helps avoid messy court battles later. It's about planning for the future.
  3. Not having a prenup means accepting a default contract from the state. It's better to negotiate your own terms when you both feel good about each other.

Please stop overusing Baumol’s cost disease

59 implied HN points • 29 Jun 24
💼 Business Economics Labor Productivity Healthcare Education
  1. Baumol's cost disease is often misused to explain high costs; it doesn't make things unaffordable, just shifts what we spend on.
  2. This theory shows that wages can rise in unproductive areas, like music or certain services, because they adjust to wages in other sectors.
  3. If services like healthcare or education are getting more expensive, it might be because they're experiencing lower productivity, not because they're doomed to be unaffordable.

Brain drain is probably just totally wrong

59 implied HN points • 26 Jun 24
🇺🇸 U.S. Politics Immigration Economics Labor Market Globalization Human Capital
  1. Immigration from developing to developed countries might actually benefit the home country, not hurt it. Allowing skilled workers to leave can lead to better investments in education and skills in their home countries.
  2. When people have chances to immigrate, it encourages more individuals to pursue education and develop their skills. This can raise the overall talent level in their country over time.
  3. Countries with more open borders often do better economically than expected. For example, Puerto Rico shows that having immigration opportunities can lead to a higher quality of life for everyone.

Scattered thoughts on slavery and the Byzantine Empire

59 implied HN points • 22 Jun 24
💾 History Slavery Warfare Socioeconomics Cultural Studies
  1. The time period between 600 and 900 AD was marked by constant warfare and widespread slavery, making it an unsafe and anxious era to live in.
  2. Historical records from this time mainly focus on kings and religious leaders, leaving out the everyday struggles and events of regular people.
  3. Slavery's demand mainly stemmed from economic reasons, with foreign slaves often seen as more profitable due to their cultural differences and the dynamics of warfare.

The O-Ring Theory of Economic Development

59 implied HN points • 15 Jun 24
💼 Business Economic Theory Human Capital Productivity Trade policy Labor markets
  1. Production can be broken down into many steps, and a failure at any step can ruin the entire process. The skill level of workers, known as human capital, plays a key role in this.
  2. Regions can be stuck in a bad place with low investment in education due to a lack of returns. Immigration can help individuals escape this situation, leading to better education and economic growth in both their new home and their original country.
  3. Trade policies can significantly impact production. Quotas can be much more damaging than tariffs because they disrupt the entire production process, leading to larger losses than expected.

So what if they’re below average?

39 implied HN points • 08 Jul 24
🇺🇸 U.S. Politics Immigration Economics Public Policy Social Issues Labor Market
  1. Immigration can be beneficial even if new arrivals have lower average intelligence. People with high intelligence can greatly contribute to economic growth and help lift others out of poverty.
  2. Knowledge is essential for progress, but it's not shared equally. Smart people create innovations that can benefit everyone, even if some tasks are done by less skilled workers.
  3. Countries benefit collectively from advancements made in one area. For example, technologies developed in rich nations can significantly improve lives and economies in poorer regions.

On Insurance

59 implied HN points • 03 Jun 24
💰 Finance Insurance Risk management Economic Policy Behavioral Economics
  1. Moral hazard happens when people take more risks because they have insurance, like thinking they can be careless if they have fire insurance. This means insurance can't cover every behavior to keep premiums fair.
  2. A better way to provide insurance is to focus on events that you can't control, like natural disasters, rather than paying out for specific losses. This keeps people motivated to protect their property since their actions impact their safety.
  3. Government assistance can be more effective if it's tied to things outside a person's control, like race or family status, rather than just income. This way, people are still encouraged to work hard because their benefits don’t change based on their work efforts.

What’s Deadweight Loss?

19 implied HN points • 31 Jul 24
💰 Finance Economics Trade Market Monopoly Taxation
  1. Deadweight loss happens when goods that could have been produced and sold efficiently are not. It means losing out on potential benefits to both sellers and buyers.
  2. This loss can occur in situations like monopolies where one seller controls the market and prices goods higher than in a competitive market.
  3. Taxes can also create deadweight loss by making some products too expensive to produce, which leads to fewer goods being available for consumers.

What is Ethereum for?

39 implied HN points • 20 Jun 24
🔮 Crypto Blockchain Cryptocurrency Smart Contracts Decentralization Economics
  1. Ethereum is a programmable blockchain, allowing for more than just currency transactions. It's unique because it can create smart contracts that automatically enforce agreed terms.
  2. It’s useful especially when contracts can be clearly defined and don’t require constant human input. Things like online services or products that are fully digital fit this well.
  3. Ethereum has potential for improving access to banking for underserved communities, like in Africa. Its ability to facilitate transactions without traditional banking could help many people who lack basic financial services.

On Mahler

39 implied HN points • 17 Jun 24
🎶 Music Classical Composition Analysis History Influence
  1. Gustav Mahler's music feels unique because it's complex and doesn't fit into traditional categories of melody and harmony. His pieces blend several melodies together in a way that feels seamless.
  2. He composed music without being tied to the piano, using multiple staves instead. This means he imagined his music without testing it out, much like coding without running the program until it's done.
  3. Despite not having a large amount of music, Mahler's works are filled with deep emotions and beauty. His few compositions leave a lasting impact that few others can match.

The Case for Blockchain Decentralization is Overstated

19 implied HN points • 24 Jul 24
🔮 Crypto Blockchain Decentralization Efficiency Auctions Market
  1. A lot of blocks on Ethereum are being built in a centralized way, which raises concerns about fairness and efficiency. People enjoy the open nature of blockchains, but if they feel transactions could be ignored or censored, they might stop using them.
  2. Some proposed solutions, like execution tickets, aim to mix fairness with efficiency when it comes to block-building. However, some argue that just focusing on the most efficient way to auction blocks won't account for user concerns about centralization.
  3. The debate about how decentralized block-building should be is complex. Finding the right balance between efficiency and fairness may require long-term studies or prediction markets to get a clearer picture.

Cooperation is really quite strange

19 implied HN points • 23 Jul 24
📖 Philosophy Ethics Cooperation Game Theory Trust Society
  1. In games where people simply act in their own self-interest, everyone can end up worse off. This shows how strange cooperation can be.
  2. People's beliefs about currency stability can create real economic problems, even if those beliefs are not matched by reality.
  3. Trust and cooperation are essential for a functioning economy and society. Improving these relationships takes time and effort, often needing everyone to change together.

I really don’t care why evolution happened

19 implied HN points • 17 Jul 24
🔬 Science Evolution Economics Cultural Studies Public Policy Research Ethics
  1. Science should help us make better choices now, not just speculate about the past. We should focus on how what we learn can improve our lives today.
  2. Understanding historical impacts like slavery can teach us more about current issues, such as trust and economic development, rather than just dwelling on the past for its own sake.
  3. Scientists should prioritize research that benefits society instead of just following personal interests. Our work should aim to make the world better and address current problems.

A lot of times you just need more bidders

19 implied HN points • 14 Jul 24
💼 Business Economics Auctions Valuation Market Power Competition
  1. Having more bidders in an auction often leads to better outcomes. More bidders means a higher chance that someone will value the item enough to buy it.
  2. In auctions, it's usually better to have more bidders than to have perfect control over the auction. More bidders can drive up the price and lead to better allocation of goods.
  3. Collusion is less likely to happen when there are many bidders competing against each other. More competition means it's harder for bidders to secretly agree on lower prices.

How We Read

39 implied HN points • 11 May 24
📚 Literature Writing Reading Fiction Communication Criticism
  1. Great writing is more than just being understood; it's about how effectively it communicates complex ideas. Sometimes, what we call 'great' can actually be harder to grasp.
  2. We read not just to learn, but to judge the author's skill. Good writing shows intelligence, while mistakes can hint at a lack of it.
  3. Bad writing can still be easily understood, but it doesn't impress us. Great writing often challenges us and makes us think differently.

IPOs are underpriced

19 implied HN points • 25 Jun 24
💰 Finance Stock Market Investments Economics Corporate Finance Market Trends
  1. IPOs, or initial public offerings, often sell for less than their true value. This means companies miss out on money they could have earned.
  2. There are better ways to sell shares, like auctions, that could help get a fairer price. Selling all shares at once is not ideal.
  3. Releasing shares gradually could lead to better pricing and less underpricing. This way, companies wouldn’t leave money on the table when they go public.

Cross-country income inequality

19 implied HN points • 23 Jun 24
🇺🇸 U.S. Politics Income Inequality Human Capital Immigration Policy
  1. Cross-country income inequality exists because countries have different levels of human capital. This means that education and skills significantly affect economic growth.
  2. Poor countries often have short-sighted and corrupt governments, which keeps people stuck in poverty. Moving to countries with better institutions can help improve people's lives.
  3. External help can be beneficial for poorer nations by promoting good governance and better economic practices, but it's important to avoid harmful past methods of interference. There's hope for reducing global poverty.

Heblich, Redding, and Voth are Wrong!

19 implied HN points • 19 Jun 24
💾 History Economic History Industrial Revolution
  1. The paper argues that the benefits of slave ownership during the Industrial Revolution are overstated. The claims about the economic impacts should be viewed more critically.
  2. The costs of maintaining slave colonies, like the expenses of the Royal Navy and sugar tariffs, need to be considered when evaluating the profits from slavery. These costs affect the overall economic gain for Britain.
  3. There's a need for skepticism regarding how beneficial the sugar colonies were to Britain's economy. The evidence suggests they may not have contributed as positively as previously thought.

Some Observations on Criminality and Recidivism

39 implied HN points • 04 Apr 24
🇺🇸 U.S. Politics Criminal Justice Prison Reform Public Policy Societal Issues
  1. Prisons should focus more on rehabilitation rather than just punishment. Helping prisoners find jobs and complete education can lower the chance of reoffending.
  2. Countries like Norway, which has nicer prisons and a focus on rehabilitation, have lower crime and recidivism rates. This suggests that how we treat prisoners matters.
  3. We might need to change how we sentence people. Young offenders could get longer sentences since they might reoffend more, while older, first-time offenders could get shorter sentences for better chances of reform.