On Gamestop and counterfeiting.

On Gamestop and counterfeiting.

In high school economics, you may have learned that the Federal Reserve controls the money supply.

When inflation is low, the Fed prints money. They unleash this money by purchasing bonds. When people have more money, they’ll spend it, so inflation rises.

When inflation is too low, the Fed contracts the money supply. They sell bonds. Cash leaves circulation. With fewer dollars in hand, it’s more difficult for people to buy things, and inflation slows.

This is a nice theory. It’s logical and the math works well.

The only flaw is that it isn’t true.

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The Federal Reserve doesn’t control the money supply – banks do.

If you walk into a bank and apply for a loan, you might expect for them to check how much money they’re holding in deposits, how much money they’ve lent already, whether there’s any more on hand for you to borrow.

That won’t happen. They’ll investigate you, certainly, to assess whether you’re likely to default. But if they like the look of you, you can walk out of there with money.

The bank creates this money. They claim that it exists, and then it does.

I first learned about the distinction between who theoretically controls the money supply (the Federal Reserve!) and who actually controls it (banks!) from economic historian Robert Skidelsky in his book Money and Government.

Skidelsky includes an instructive quote from the investigative report Where Does Money Come From? by Josh Ryan-Collins, Tony Greenham, Richard Werner, and Andrew Jackson:

The theoretical support for deregulation was based on the unrealistic assumptions of neoclassical economics, in which banks are mere intermediaries.

This does not recognize their pivotal role as creators of the money supply.

Since the 1980s, bank credit creation has expanded at a considerably faster rate than GDP, with an increasing amount of bank credit creation channeled into financial transactions. This is unsustainable and costly to society.

As we were taught in high school, increases to the money supply accelerate economic activity.

And our economy is booming. But you might not have noticed. See, banks have been greatly expanding the money supply, but they’ve been injecting all that cash directly into the financial sector.

Investment banks, hedge funds, and the like have been blessed with easy money, and there’s been dramatic inflation in this segment of our economy.

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Brokerages lend stocks.

This is another way to create money – brokerages might lend more stocks than actually exist. At times, this may be inadvertent – if I own a stock, my brokerage can lend it to someone who’d like to short sell it.

When the short seller puts the stock up for sale – hoping to profit if the stock falls before they’re obliged to return it – someone who uses a different brokerage might buy it.

And then that brokerage might also lend it to a short seller – they have no way of knowing that this particular share has already been lent.

All this lending creates money – with each additional sale, the short seller is pulling the stock’s share price out of thin air, subject only to the contract with the brokerage that a share must be returned later – without anyone necessarily intending to break the law.

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When I read poetry with guys in jail, they’ll sometimes mention what they’re in for. Not everyone is telling the truth – according to police reports, somewhere near half are there on domestic assault charges, but out of some thousand men I’ve worked with, only three have said they were in on a domestic, and they all told elaborate stories to explain away the charges.

A guy said that his wife was all bruised because he had to resuscitate her from a medical emergency. Another guy told me that he and his girlfriend were “talking loudly,” some neighbor called the cops, and they saw him throw a towel at her. A third said they busted him for domestic violence after all he’d done was chuck a television at the wall (although this guy had been telling me for weeks that he was in on possession of marijuana).

My point being that I’m never quite sure how much credence to give these stories.

Still, I’ve worked with several guys who said they were doing time for increasing the money supply. In practical effect, what they’d done was the same as a bank lending money it doesn’t have – the money supply increases.

Here’s some money that previously didn’t exist, and there will be repercussions if an investigator can prove that it happened.

A guy was printing bills in his basement. Another passed bad checks. Somebody claimed he was there for credit fraud, but I doubt he was busted for the sort of thing the Russian hackers were doing, trawling the internet for unsecured connections – more likely, he’d lifted somebody’s wallet and got nabbed using their cards.

When individuals get caught at this, we bring the hammer down. Bad check guy caught four years (and the prosecutor was originally trying to get him to plea for twelve, he told me).

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The stock for Gamestop, in and of itself, is worth very little.

The company doesn’t pay a dividend. And the company is failing. They have to pay rent, they have to pay the salaries of living, breathing human employees. They have to maintain an inventory.

They depend on consumers’ willingness to get in the car, drive somewhere, and make eye contact with a living, breathing cashier in order to buy a thing.

But game systems can be bought online. The games themselves can be downloaded. The stylish figurines of people’s favorite characters are cool, and can presumably be sold at a markup in shops since they look more enticing in person than they would as tiny pixelated photos on a telephone screen, but these are heavy and bulky and awkward to ship to the store and keep on the shelves.

I agree with the hedge fund guys who think there’s a high probability that Gamestop was going out of business. That Gamestop might’ve gone under even without the Covid-19 pandemic, and that things look even worse now – the new Gamestop executive’s plans for bringing in money all relied on turning the shops into social spaces, but now nobody’s socializing, and certainly not inside small, poorly ventilated strip mall outlets.

Several hedge funds borrowed lots of shares of Gamestop and sold them, hoping that the price would fall before they were required to return them.

Their positions – short tens of millions of shares of Gamestop – were known. And so people intentionally raised the price of the stock.

The hedge funds were (and possibly still are) contractually obligated to return those shares to the brokerages that they were borrowed from. They’d have to buy shares even if the price became absurd.

So lots of regular people realized they could make a quick buck by buying the shares and then selling them to the hedge fund at a ransom price whenever their loans were up.

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And, yes, when people drove up the price of Gamestop to grift money out of the short-selling hedge funds, that was collusion. Which would be illegal if done in private, but I don’t think there’s any problem when it’s been done entirely on a public forum.

What the banks and brokerages have been doing – creating money by lending things that don’t exist – isn’t illegal. Perhaps it should be – the practical effect is the same as when somebody starts printing money in their basement – but it isn’t.

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If the hedge funds are contractually obligated to buy shares of Gamestop, then is this a good bet?

Should you jump in, too?

I don’t think so.

Please note that I’m not a particularly savvy investor – I’ve put my family’s money in Canadian agriculture, air conditioners, coolants, all sorts of things that will presumably accrue value if the planet Earth becomes less hospitable – nor have I studied contract law. I’m a trained economist and reasonably logical thinker, but not an expert.

I do own a single share of Gamestop – I bought it because I appreciated that people wanted to flip off the hedge funds – but, honestly, I don’t have much personal stake in this.

I do think that the financial sector has been creating large, needless drag on our economy. I’m vaguely anti-capitalist. I believe strongly in a global wealth tax and guaranteed basic income. So I’d like for the hedge funds to go bankrupt.

But I don’t think they will.

The hedge funds have contracts, but their contracts aren’t with me – even if they’ve borrowed my share of Gamestop, they didn’t borrow it from me, they borrowed it from my brokerage.

And my brokerage is run by some reasonable people wearing business suits. They know that the Gamestop company itself is troubled. They would probably rather have money than shares of GME.

I think it’s very risky to gamble on a contract between people who aren’t you. The signing parties of the contract could renegotiate it – as a bystander, I can’t influence their negotiations at all.

Still, there’s a chance that some of the short sellers will tank. So although I wouldn’t recommend buying a bunch of shares of GME, it seems prudent to convert some of your retirement savings to cash, just in case the short sellers have to unload a few of their long positions to cover and the prices of those shares fall. You might have a chance to buy other stocks at a discount soon.

Again, I’m not an expert, nor a savvy investor. That’s just what I’m doing.

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Usually, nobody notices when banks or brokerages create money. We simply assume that they have sufficient holdings to cover whatever they’re lending out.

They often create phantom shares of stocks, and then, when the short sellers resolve their contracts, the phantom shares blip back out of existence, leaving behind only some money – not coins or bills, mind you, but an increased number on a ledger – to indicate that they ever existed.

Account values are like the contrails in a bubble chamber that tell us whether elementary particles briefly existed after a high-energy collision between nuclei.

But Reddit readers’ collusion is causing the contrails to ossify. I don’t have a sell limit set for my single share of Gamestop. Millions of shares are held by people who think short selling ought to be illegal and are planning to let mounting interest payments undermine the hedge funds that were doing it.

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The turbulence here is obviously unrelated to Gamestop.

The issue isn’t even short sellers – financial markets are obviously irrational, but short selling does push stock prices toward fair valuations for their underlying companies. Which isn’t necessarily helpful, or sufficiently important that we, as a people, should reward the people who do it will millions of dollars.

And the issue isn’t hedge funds.

Rather, it’s whether we want a world that conforms to the fictions we teach in high school economics – the Federal Reserve controls the money supply! – or if we want the world we have now, where guys in my poetry class landed in jail for printing money in their basements but bankers and brokers are rewarded lavishly for printing money in their offices.

I’ve written about this previously, here and here, but the ramifications are much more visible now.

And I should mention that, although I think these behaviors ought to be illegal, I’m not saying that bankers have necessarily done anything wrong.

Brokerages, in this whole mess, presumably weren’t trying to break the law. Each brokerage may have thought they had real shares in hand when they lent them.

But they didn’t.

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As it happens, we could easily prevent situations like this from arising again.

I have a rather dour view of Bitcoins – they’ve not as anonymous as people think, and the system is incredibly wasteful, creating more greenhouse gases by design than other forms of currency – but blockchain technology would make the stock market less awful.

A blockchain is like a bunch of stickers plastered to the side of a suitcase – it’s an ordered list of where something has been. You could use blockchains to prevent food-borne illness – for each tomato used for ketchup, you could track its journey from fields to processing plants to restaurants. A blockchain is simply a long list of prior addresses.

With shares of stock, you could track whether that share has previously been lent to a short seller, preventing a single share to be lent twice – which is how brokerages inadvertently counterfeit shares – before the first contract has been resolved.

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The problem, of course, is that people who are currently wealthy benefit from being allowed to create money.

It’s convenient to own a money printer – you get to buy what you want and donate to charities and feel good about yourself.

And it’ll take a bit of work – not much work, as I described above – to shut the money printers down. Still, any effort at all is hard to muster when the people who currently have power would like to keep things as they are.

On inequality and disease.

On inequality and disease.

I should preface these remarks by stating that my political views qualify as “extremely liberal” in the United States.

I’m a well-trained economist – I completed all but the residency requirement for a masters at Northwestern – but I don’t give two shits about the “damage we’re doing to our economy,” except insofar as financial insecurity causes psychological harm to people in poverty.  Our economy should be slower, to combat climate change and inequality.

One of my big fears during this epidemic is that our current president will accidentally do something correctly and bolster his chances of reelection.  The damage that his first term has already caused to our environment and our judiciary will take generations to undo – imagine the harm he could cause with two.

And yet, in arguing that our response to the Covid-19 epidemic is misguided, I seem to be in agreement with our nation’s far right. 

As far as I can tell, the far right opposes the shutdown because they’re motivated by philosophies that increase inequality.  Many of them adore Ayn Rand’s “Who will stop me?” breed of capitalism, as though they should be free to go outside and cough on whomever they want.  They dislike the shutdown because they think our lives are less important than the stock market.

By way of contrast, I care about fairness.  I care about the well-being of children.  I care about our species’ future on this planet.  It’s fine by me if the stock market tanks!  But I’ve written previously about the lack of scientific justification for this shutdown, and I’m worried that this shutdown is, in and of itself, an unfair response.

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Quarantine could have prevented this epidemic from spreading.  If we had acted in December, this coronavirus could have been contained.  But we did nothing until several months after the Covid-19 epidemic began in the United States. 

Then schools were closed: first for two weeks, then a month, then the entire year.

Stay-at-home orders were issued: first for two weeks, then extended to a month.  No data supports the efficacy of these orders – haphazard, partial attempts at social distancing, from which certain people, like my buddy doing construction for a new Amazon facility, have been exempted.  And no metrics were announced that might trigger an end to the shutdown.

Currently, the stay-at-home orders last until the end of April.  But, as we approach that date, what do people expect will be different?  In the United States, we still can’t conduct enough PCR tests – and even these tests yield sketchy data, because they might have false negative rates as high as 30%, and they’re only effective during the brief window of time — perhaps as short as one week — before a healthy patient clears the virus and becomes invisible to testing.

Based on research with other coronaviruses, we expect that people will be immune to reinfection for about a year, but we don’t know how many will have detectable levels of antibody in their blood.  As of this writing, there’s still no serum test.

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In the United States, New York City has the largest concentration of risk – densely populated elderly people with constant exposure to unclean air. But even the New York Times has begun to print articles describing the folly of our response to Covid-19.

The Italian government is considering the dystopian policy of drawing people’s blood to determine if they’ll be eligible for a permit to leave their homes.  If you were worried about the injustice that the virus itself imposed on people who are elderly or immunocompromised, this is worse!

We can’t evaluate our response without tests.  Missteps by the CDC (which was gutted by the Trump administration) have left us blind to the progression of the epidemic.  And we can’t evaluate our response if we have nothing to compare it to – we will have to end the shutdown to see what happens next (with the option of resuming these safety measures if our test shows they were necessary).

We know, clearly, that the shutdown has been causing grievous harm.  Domestic violence is on the rise.  This is particularly horrible for women and children in poverty, trapped in close quarters with abusers.  The shutdown is creating conditions that increase the risk of drug addiction, suicide, and the murder of intimate partners.

We don’t know whether the shutdown is even helping us stop the Covid-19 epidemic.  And we still don’t know whether Covid-19 is scary enough to merit this response.  As of this writing, our data suggest that it isn’t.

Covid-19 is a rare breed, though: a communicable disease where increased wealth correlates with increased risk.

And so we’re taking extreme measures to benefit the most privileged generation to ever walk the face of this Earth, at the cost of great harm to vulnerable populations.  This is why I feel dismayed.

Hopefully I can present some numbers simply enough to explain.

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Many diseases are more likely to kill you if you’re poor.

Malaria kills between 400,000 and one million people every year.  The vast majority are extremely poor, and many are children – the World Health Organization estimates that a child dies of malaria every thirty seconds.

Wealth protects against malaria in two ways.  Wealthy people are less likely to live in parts of the world with a high prevalence of malaria (most of the deaths each year occur in Africa and India), and wealthy people can buy effective anti-malarial medications. 

I took prophylactic Malarone when I visited Ecuador and India.  Lo and behold, I did not get sick. 

I believe Malarone costs about a dollar per day.  I am very privileged.

HIV kills between 700,000 and one million people every year.  Again, the vast majority are poor.  HIV is primarily transmitted through intimate contact – exposure to blood, needle sharing, or sex – so this virus rarely spreads across social boundaries in stratified communities. 

In the United States, HIV risk is concentrated among people living in our dying small towns, people without homes in inner cities, and people trapped inside the criminal justice system. 

It seems that these people are all easy to ignore.

Wealth will protect you even if you do contract HIV.  We’ve developed effective anti-retroviral therapies.  If you (or your government) can pay for these pills, you can still have a long, full life while HIV positive.  About 60% of the people dying of HIV happen to have been born in Africa, though, and cannot afford anti-retrovirals.

Even the myriad respiratory infections that plague our species – of which Covid-19 is but one example – are more likely to kill you if you’re poor.  The World Health Organization lists the top causes of death for people living in low-income versus high-income countries.  The death rate from respiratory infections is twice as high for people living in low income countries.

The second-highest cause of death among people in low-income countries is diarrhea.  Diarrhea kills between one million and two million people each year, including about 500,000 children under five years old.

These deaths would be easy to treat and even easier to prevent. 

Seriously, you can save these people’s lives with Gatorade!  (Among medical doctors, this is known as “oral rehydration therapy.”)  Or you could prevent them from getting sick in the first place by providing clean water to drink.

We could provide clean water to everyone – worldwide, every single person – for somewhere between ten billion and one hundred billion dollars.  Which might sound like a lot of money, but that is only one percent of the amount we’re spending on the Covid-19 stimulus bill in the United States.

We could do it.  We could save those millions of lives.  But we’re choosing to let those people die.

Because, you see, wealthy people rarely die of diarrhea.  Clean water is piped straight into our homes.  And if we do get sick – I have, when I’ve traveled – we can afford a few bottles of Gatorade.

Instead, wealthy people die of heart disease.  Stroke.  Alzheimer’s.  Cancer.

If you’re lucky enough to live past retirement age, your body will undergo immunosenescence.  This is unfortunate but unavoidable.  In old age, our immune systems stop protecting us from disease.

Age-related immunosenescence explains the high prevalence of cancer among elderly people.  All of our bodies develop cancerous cells all the time.  Usually, our immune systems kill these mutants before they have the chance to grow into tumors.

Age-related immunosenescence also explains why elderly people die from the adenoviruses and coronaviruses that cause common colds in children and pre-retirement-age adults.  Somebody with a functional immune system will get the sniffles, but if these viruses are set loose in a nursing home, they can cause systemic organ failure and death.

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I haven’t seen this data presented yet – due to HIPAA protections, it can’t easily be collected – but Covid-19, on average, seems to kill wealthier people than influenza.

On a personal level, wealth will protect you from Covid-19.  We know that early treatment saves lives, which is a reason why Germany’s death rate is so low, and wealthy people are less likely to postpone going to the hospital.  Wealthy people can afford the medications that might keep you out of the ICU. Wealthy people are less likely to experience the stresses, sleep loss, and discrimination that have caused disproportionate numbers of Black people in the United States to succumb to Covid-19.

But on a population level, wealth is correlated with increased risk.

Part of this wealth gap is due to age.  Currently we don’t have enough data to know exactly where the risk curves for seasonal influenza and Covid-19 intersect, but it seems to be around retirement age.  If you’re younger than retirement age, seasonal influenza is more deadly.  If you’re older than retirement age, Covid-19 is more deadly.

And in the United States, if you’re older than retirement age, you’re more likely to be wealthy.

Covid-19 is also more dangerous if you’re already sick.  A study of Covid-19 deaths found that 97% of the people killed were already sick with at least one serious medical condition.  The average person killed by Covid-19 had 2.7 other serious diseases.

Because these people were receiving expensive medical care, they were able to survive despite their other diseases.  Imagine what would have happened if these people had chanced to be born in low-income countries: they would already be dead. 

This is a tragedy: all over the world, millions of people die from preventable causes, just because they had the bad luck of being born in a low-income country rather than a rich one.

We don’t have data on this yet, but it’s likely that Covid-19 will have a much smaller impact in Africa than in Europe or the United States.

When my father was doing rounds in a hospital in Malawi, his students would sometimes say, “We admitted an elderly patient with …”  And then my father would go into the room.  The patient would be 50 years old.

Covid-19 is particularly dangerous for people in their 80s and 90s.  Great privilege has allowed so many people in Europe and the United States to live until they reached these high-risk ages.

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Our efforts to “flatten the curve,” in addition to increasing many people’s risk of death (from domestic violence, suicide, and the lifelong health repercussions of even a few months of sedentary living), will save relatively few lives, even among our country’s at-risk population.

The benefit of this shutdown is simply the difference between how many people would die if we did nothing, compared to how many people will die if we “flatten the curve.” 

Assuming that our efforts to flatten the curve succeed – and neglecting all the other risks of this strategy – we’ll be able to provide ventilation to everyone.  But there will still be a lot of deaths.  The shutdown will not have helped those people.  The shutdown is only beneficial for the small number who would be treated in one scenario, would not be treated in another, and who actually benefit from the treatment.

The Lancet reported that in the initial wave of the Covid-19 epidemic, 97% of patients receiving invasive ventilation died.  Later on, the death rate among people receiving ventilation was still over 80%

Their lives matter, too.  Many of us have a friend or relative whose life was cut short by this. But something that we have to accept is that we all die.  Our world would be horrible if people could live forever.  Due to immunosenescence, it becomes increasingly difficult to keep people alive after they reach their late 70s and 80s.

And the priorities of elderly people are different from mine.  I care deeply about the well-being of children and our planet’s future.  That’s why I write a column for our local newspaper discussing ways to ameliorate our personal contribution to climate change.  That’s why my family lives the way we do.

These priorities may be quite different from what’s in the short-term best interests of an 80-year-old.

Schools are closed.  Children are suffering.  Domestic violence is on the rise.  All to protect people who have experienced such exceptional privilege that they are now at high risk of dying from Covid-19.

Our national response to Covid-19 is being directed by a 79-year-old doctor.  I haven’t gotten to vote in the presidential primary yet, but if I get to vote at all, I’ll be allowed to choose whomever I prefer from a selection of a 77-year-old white man or a 78-year-old white man.  Then comes the presidential election, where there’ll be an additional 73-year-old white man to choose from.

It makes me wonder, what would our national response be like if we were facing a crisis as risky as Covid-19, but where elderly people were safe and children were most at risk?

And then I stop wondering.  Because we are facing a crisis like that. 

It’s climate change.

And we have done nothing.

On sacrifice.

On sacrifice.

Worldwide, people are making huge sacrifices to quell the Covid-19 outbreak.  The burden of these sacrifices falls disproportionately on young people.

Across the United States, universities have closed for the year.  My governor has announced that all elementary and high schools will be closed at least until May 1st.  Bars, restaurants, and malls have been forced to shut down – their employees have been laid off.

Graduating during a recession greatly reduces people’s lifelong earnings.  Young people who have the bad luck of entering the workforce in the next few years will suffer the consequences of this shutdown for their entire lives.

Childhood development has an urgency unmatched by other stages of life.  When children don’t learn to socialize at the appropriate age, they will always struggle to catch up with their peers.  Across the country, huge numbers of children were first learning to read in kindergarten and the early grades.  Now they’re watching television. (My kids, too.) With schools closed until May, and summer break coming soon after, they might be watching TV for months.  They’ll have to work harder to match other people’s educational achievements, for their entire lives.

Many students depend on school meals to stave off hunger.  Kids on free & reduced-price lunch often dread holiday weekends – now, not only have their educations been yanked away, but they’re also suffering through worse food insecurity. Schools and communities are scrambling to provide resources. 

Everyone is being asked to stay at home, to keep at least six feet away from other people. 

The cost of social isolation is lower if you’re established in a white-collar or professional career.  Many office workers can work from home.  The people who were cleaning those offices, or selling coffee and bagels to people on their way to work, get laid off.

The cost of social isolation is lower if you have enough money to stock up on supplies.  The cost of social isolation is much lower if you’re retired.

Everyone is being asked to make sacrifices, but young people are sacrificing more.

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This pandemic wouldn’t be as bad if people could be tested for the virus. We could quarantine the sick and staunch the spread.  But U.S. citizens don’t have access to a test.

Why not?

In their article for the New York Times, Matt Apuzzo and Selam Gebrekidan write that:

As the virus reached into the United States in late January, President Trump and his administration spent weeks downplaying the potential for an outbreak.  The Centers for Disease Control [a government agency gutted by our current president] opted to develop its own test rather than rely on private laboratories or the World Health Organization.

The outbreak quickly outpaced Mr. Trump’s predictions, and the C.D.C.’s test kits turned out to be flawed, leaving the United States far behind other parts of the world – both technically and politically.

Indeed, the Republican party consistently argued against preparing for the virus, downplaying its significance, even as Republican senators used information from confidential briefings for illegal insider trading, selling most stocks and buying shares of companies that make teleconferencing software.

This risk of pandemic was exacerbated by voters who put the Republican party in power.

This is a problem that was created by older Americans.  By age, these were the results of the 2016 presidential election

Image from Wikipedia.

Anyone who is currently younger than 22 – the people who are being made to sacrifice most during this crisis – was not allowed to vote in the 2016 election.

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I was too young to understand the 1980s HIV crisis, but I imagine that it was at least as scary as the Covid-19 pandemic for the people at risk. 

That virus was inevitably fatal.  The deaths were agonizing.  Rampant homophobia and cultural stigmatization – even in the medical community – meant there were few places to seek help. 

The only way to keep safe was to make sacrifices.  Fooling around is fun, but it seemed like it might kill you.  To stay alive, you’d have to tamp down your desire.

But if you made that sacrifice, you’d be safe.  The people making sacrifices were the people who’d benefit.

What about now, during the Covid-19 pandemic?

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My whole family probably contracted Covid-19.  There’s no way to know for sure, because at that time the U.S. didn’t even have tests for people experiencing the acute phase of the illness, and there’s still no antibody test to check whether someone was exposed to the virus in the past. 

I fell sick on February 10th.  I had a pretty bad case, it seems. I had to take high doses of naproxen, but the week-long fever still left me dizzy at times.  The only way I could breathe well enough to sleep soundly was by taking puffs of my spouse’s albuterol inhaler.  My joints ached so much that it hurt whenever I went running even three weeks later.

My children were sick on February 11th and February 13th.  Each napped for half the morning and then felt better.  They’d spiked a high fever, but these lasted less than a day.

In China, 87% of the people who got sick enough to be tested for Covid-19 were at least 30 years old

Only 2% of the people who got sick enough to be tested were 20 years old or younger.

And the risk of death is even more skewed.

Image from Wikipedia.

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Young people are being forced to make tremendous sacrifices.  They will suffer the consequences of this disruption to their education for their entire lives.  But they aren’t the people who benefit. 

Young people have very little risk from Covid-19.  It’s no fun to be sick, but when my children contracted what I assume to be Covid-19, it was no worse than any of dozens of other coughs or colds they come down with each year. 

Most teenagers – whose lives are being up-ended by school closings – could contract Covid-19 and be totally fine.

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My spouse asked, “What would you do about it?  Not months ago, but if you were handed this crisis today?”

My answer was the same as always.  We should enact a wealth tax – preferably a global wealth tax to undermine the tax havens – and use it to fund a guaranteed basic income. 

Using a global wealth tax to fund a guaranteed basic income would help address the persistent inequities caused by historical injustice – it would be a sensible form of reparations.  It would provide a buffer against the economic insecurity caused by automation and the gig economy.  It would transfer money away from the people who drew salaries during the years when we really ravaged our environment, and give it to the people who must now settle for a lower standard of living due to climate change.

Right now, there’s another rationale.  Young people are making huge sacrifices during this pandemic; older people receive the benefit.  A wealth tax used to fund guaranteed basic income would provide some recompense for the sacrifices of young people.

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My family is practicing “social isolation,” although it hasn’t been mandated yet.  My children are willingly making sacrifices for the benefit of others, insofar as a four- and six-year-old understand what’s happening.  And yet I’ve seen little acknowledgement in the news of the enormous, selfless sacrifice that children are making – that young people across the country are being forced to make.

They will endure the consequences of this sacrifice for their entire lives.  This sacrifice almost exclusively benefits others.  And yet there’s been no talk of recompense.  No gesture of gratitude from the people who benefit toward the people who are paying the costs.

Which, unfortunately, is how our country has often worked.

On currency

On currency

The value of money is a useful fiction.

As with most fictions, the story that we tell about money helps some people more than others. 

Money, in and of itself, is useless.  Gold, cowry shells, slips of paper with pictures of dead presidents.  The story makes us want these things.  We tell ourselves that these items can “hold value.”  Instead of lumbering about with all the goods we want to barter, we can carry a small purse of coins.  As long as everyone believes the same fiction, we can trade our apples for some coins, then later use those coins to pay someone to help us dig a well.

The story that money has value is most helpful for the people who already have money.

If everyone suddenly woke up from the story, and decided that coins were worthless, the people who grow apples would be okay.  In some ways, it’s less practical to pay people with apples – coins don’t bruise or rot – but it can be done.  Similarly, the people who dig wells would be okay. 

But the people who owned coins would be worse off – previously, the things they owned could be traded for other, inherently useful goods.  And people who had made loans would be much worse off – they would have given away money at a time when it could be used to buy things, and when they receive the coins back, they’ll be worthless.  No recompense for past sacrifice – only loss.

So people with current wealth benefit most from the fiction that money has value.

This is, as far as I can tell, the only real virtue of Bitcoins.  This form of currency is not anonymous – indeed, it works through the use of “blockchains,” a permanent ledger that records everyone who has ever owned a particular piece of money.  Bitcoins are a little like dollar bills where you have to sign your name on it in order to spend it.  And they’re excruciatingly bad for the environment – it takes energy to mint a real-world, metal coin, but nothing like the amount of energy that’s constantly wasted in order to verify the ledgers of who owns which Bitcoin.  Ownership is determined by vote, and the system was designed to be intentionally inefficient so that it’s difficult for one person to overwhelm the system and claim ownership of everybody’s coins.  And it’s unstable – it’s difficult for someone to outvote the system and take control, but not impossible.

Those all seem like bad features.  But Bitcoins are now incredibly valuable – in the years since I explained all these flaws to a high school runner who’d begun investing in Bitcoins, his $500 investment has burgeoned to be worth $24,000.

The only “good” feature of Bitcoins is that the system is designed to reward past wealth.  The total money supply approaches an asymptote – new Bitcoins are added to the system more slowly over time.  If the currency is successful, this will impose a deflationary pressure on prices.  Today, a certain amount of heroin might cost 0.1 Bitcoin – in the future, that same amount of heroin might cost 0.01 Bitcoin.

This deflationary pressure would cause the value of current holdings to increase.  By simply buying Bitcoins and hoarding them, you’d gain wealth! 

But this only works for as long as people keep believing the fiction that Bitcoins have value.  And the more people who buy and hold Bitcoins, as opposed to actively using them as currency, the less believable the story will be.  Anyone who “invests” in Bitcoins is wagering that other people will behave in a way that maintains the fiction, even though the person who is making the wager is actively undermining the story.

When we immerse ourselves in stories, we often need to temporarily suspend our disbelieve, but that particular set of mental gymnastics is too twisty for my mind.

Modern money barely exists.  Before, we spun stories about the value of coins – now, the fiction lends value to certain strings of numbers.  In addition to the Federal Reserve, any bank can create money by making a loan and claiming that a certain amount of currency has been added to one account or another.

This has allowed our fictions to become more intricate.  In 2008, the banking crisis threatened to make wealthy people much less wealthy – they had purchased certain financial assets that seemed valuable, and then these assets turned out to be worthless. 

It’s as though there was a certain new Magic card that everyone assumed was great, and a few rich kids bought all the copies of it, but then people finally read the card and realized it was terrible.  Now these rich kids are holding hundreds of copies of a worthless piece of cardboard.

This would be sad for those rich kids.  But, lo and behold, it was fixable!  If everyone can be forced to believe, again, that the item has value, then it will.  The story needs to be chanted more loudly.  If I paid $50 for this card last week, then it’s still worth at least $50!

That’s what “quantitative easing” was – governments around the world agreed to buy worthless items in order to convince everyone that these items had value.  This way, the wealthy people who had initially bought them wouldn’t have to suffer.

In the years since I’ve been teaching in our local county jail, I’ve struggled to comprehend the disparities between the way we treat poor people and wealthy people who made mistakes.

For instance, stock traders stole $60 billion from state governments across Europe – the trick was to have two people both temporarily own the stock around tax time, then they lie to the government and claim that they both had to pay taxes on it.  Only one set of taxes were actually paid, but they lie and claim two rebates.  Money from nothing!

From David Segal’s New York Times article:

A lawyer who worked at the firm Dr. Berger founded in 2010, and who under German law can’t be identified by the news media, described for the Bonn court a memorable meeting at the office.

Sensitive types, Dr. Berger told his underlings that day, should find other jobs.

“Whoever has a problem with the fact that because of our work there are fewer kindergartens being built,” Dr. Berger reportedly said, “here’s the door.”

They stole billions of dollars, and the question at stake isn’t whether they will be punished, but whether they can be forced to return any of the money. 

By way of contrast, many of the guys in jail are there for stealing $10 or so.  A guy did five months for attempting to use my HSA card to buy two sandwiches and a pack of cigarettes.  Another violated probation when he stole a lemonade – “In my defense,” he told me, “I didn’t even mean to steal it, I was just really fucking high at the time.

Two weeks ago, a dentist visited the jail during my class.  I go in from 4:00 p.m. to 5:30 – at about 4:15, a guard came to the door and barked somebody’s name.

“Med call?” somebody asked.

“Shakedown?” asked another.

The guard looked at the sheet of paper in his hand, then said “Dentist.”  And suddenly six guys started clamoring, “You got time for extras?  I gotta get on that list!” 

The man whose name had been called jumped out of his chair and sauntered to the door.

After he’d left, the guys explained the system.  “You can get dental, like real dental, but you have to put your name on the list and they only come like every five, six months.  So there’s no hope unless you’re gonna be here for a while.  And it’s kinda expensive, you pay like fifty for the visit and another ten for each tooth they pull.”

Apparently that’s the only service – pulling teeth.

“They do good work,” said the older man next to me, “I got these bottom two done here.”  And he tilted his head back and opened his mouth.  But I grew up wealthy – it’s hard for me to assess quality by eyeballing the blank gap between somebody’s teeth.

About twenty minutes later, the guy came back.

“Which ones you have them do?” somebody asked him.

“I had ‘em get these bottom three,” he said, although his voice was slurry because they’d loaded his mouth with novacaine.

“You idiot!  You didn’t have them get the top one?”

“No, man, that’s my smile!  Gonna find a way to save that tooth.”

“Man, see, how come I couldn’t be on that list?  I would’ve had ‘em pull a whole bunch of ‘em out.  Wouldn’t give ‘em no that’s my smile bullshit.”

As it happens, I’d gone in for a cleaning at my dentist just the day before.  And I’ve had braces.  Invisalign.  I suddenly felt rather self-conscious about my own perfectly clean, perfectly straight, perfectly intact teeth.

“So who was it, that lady doctor?”

“Naw, was the Black guy.”

“What?  Fuck’s it matter that he’s Black?”

“Nobody said it matters, it’s just, there’s three dentists, there’s the lady doctor, the Black guy, and then that other guy.  There’s just three, is all.”

“Oh.”

Our man was out eighty dollars after the visit.  Could’ve spent ninety, but he was holding out hope for that last one.  And they didn’t let him keep the teeth. 

I’m not sure the tooth fairy ever visits the county jail, anyway.

On auctions, politics, quantum computing, and waste.

On auctions, politics, quantum computing, and waste.

I recently played the board game Fists of Dragonstone.  It was fun – the premise is that each turn a spell is revealed and players will make a simultaneous, secret bid to acquire its effect.  The spells might earn victory points, increase your future income, or help you thwart other players’ plans.

Each turn felt tense because Fists of Dragonstone uses “all pay” auctions.  If you bid two dollars, you’ll lose this money whether or not you get the prize you wanted.  This type of auction is a slippery beast – inherently stressful in the real world, but psychologically compelling within the safe confines of a game.

Fists of Dragonstone. Image by hal_99 on Flickr.

When most people think of auctions, they imagine the type that eBay uses – only the winner pays, and the amount paid is equal to the second-highest bid.  In this type of auction, you ought to state your intentions honestly.  If you would get $15 worth of joy from owning an item, you should bid $15 – you’ll either get to have it for that amount of money (or less), or else learn that someone else values the item more.

If we didn’t have such rampant wealth & income inequality, this type of auction would arguably improve the world.  Objects would wind up in the hands of whomever valued them most, boosting overall happiness.

In practice, of course, things don’t work out so well.  Some people have access to far more money than others.  Even if a wealthy person estimates that a blanket would provide $60 of happiness, and a poor person estimates that the same blanket would provide $10 of happiness, it might be that the poor person would actually get more happiness from the blanket.  Inequality means that there’s no universal way to convert between money and joy, but the marketplace treats all our dollars the same.

Image by Todd Huffman on Flickr.

In a board game, you can address inequality by doling out the same set of initial resources to each player.  But the standard auction type – which rewards honest valuation – wouldn’t be much fun.  Everyone should value each item equivalently, and so the game is reduced to a puzzle.  It might be fun to solve once, but there wouldn’t be a reason to play again.

In an “all pay” auction, though, you benefit by being unpredictable.  Because you lose your bid whether or not you win the auction, you should often bid zero even if there’s an item you’d like.  You’re throwing away money if you make a non-zero bid but someone else bids higher.

You could still attempt to “solve” this sort of game, but the optimal solution invokes random behavior.  You should make a bid somewhere between zero and your true valuation, with a certain probability assigned to each.  That’s what a robot would do.

Most humans are pretty terrible at doing things that are actually random, though.  When we try to create a fake list of outcomes from a set of coin flips, for instance, we usually hew to an alternating pattern of heads and tails.

Since we’re bad at making random choices – and we know that other players are bad at it too – we fall back on misguided psychological reasoning.  She bid nothing the last two rounds, so maybe I can sneakily win this next auction with a $1 bid!  We get to feel clever when our stratagems succeed.  We get to curse when they fail.  All much more fun than the honest appraisal encouraged by auctions in which only the winner pays!

In the real world, though, an “all pay” auction is a recipe for waste.

This type of auction is a good proxy for many types of adversarial encounters.  Political contests, computer security, sporting events.  Even restaurant management, if people have a discrete budget set aside for eating out and are simply choosing which establishment to frequent. 

In each of these situations, every player has to pay – to run for political office, you invest years of your life and spend a whole bunch of money on advertisements.  It’s not as though you get that time or money back when you lose.  All players spend their total bids, but only one gets the prize of elected office.

Contemporary political campaigns are incredibly expensive.  So many people have already devoted years of their lives to the 2020 presidential campaign.  The efforts of the losing side will have been wasted.  Because major platforms are willing to air totally fraudulent advertisements, candidates have little chance of victory if they spend much less than their opponents.

Sure, sometimes people will console themselves with the thought that “We may not have won the election, but we changed the tenor of political discourse!”   In our country, this is a fantasy.  U.S. politics is sufficiently polarized that the winners rarely concern themselves with the expressed desires of the losing side.  Two of our past three presidents lost the popular vote and still proceeded with their agendas as though they’d received an overwhelming mandate.

Security is another form of “all pay” auction.  This is an asymmetrical game – your initial resources and victory conditions are clearly different if you happen to be playing as a homeowner or a thief – but the basic principle remains the same.  One player bids an amount on security; the other player bids time and money to undermine it; depending on who bids more, a break-in succeeds or it doesn’t.

As in Fists of Dragonstone, players have an incentive to randomize their behavior.  Sometimes a homeowner should display signs for a security system that hasn’t actually been installed.  Sometimes a thief should pass by a house even if it looks like a juicy target.  If players are too predictable, they can be narrowly outbid.

Computer encryption is an auction like this.  Equifax bid less than the people trying to hack its servers; a huge amount of personal data was stolen.  Mine too.  As an apology for low-balling their security bid, Equifax will send me a settlement check for some amount between $125 and $0.03, depending on how many of the other victims they choose to compensate.

What could I do with three pennies?

I glued pennies together to make little legs for my laptop computer – three cents for the back legs, two for the front – hoping to improve air flow for the exhaust fan.  When a computer overheats, programs malfunction.  The operating system might freeze, the same way I do when I’m typing and somebody says “Hi” to me.  My brain stutters – processing, processing – unable to determine whether I know this person, and, if so, from where.

Shut down, reboot.

Anyway, building these laptop stilts out of pennies seemed cheaper than any other materials.  I’ve already built them, though.  I don’t really need another $0.03 check from Equifax.

But this situation must feel frustrating for the people at Equifax, too.  Improved encryption isn’t valuable in and of itself.  This is an adversarial contest that produces only waste.  A world in which companies spent little or nothing on computer security and other people simply chose not to breach their nonexistent defenses would be better than our world, in which data needs to be scrupulously guarded.

A world in which politicians didn’t advertise, trusting voters to learn about their platforms from impartial sources, would be better than our world.

That’s not where we live, though.  Instead, scientists are working to create quantum computers.  These are marvels of engineering.  In contrast to the behavior of macroscopic objects, certain properties of a quantum transistor can remain undefined during a calculation, collapsing into a discrete binary value only at the end.  To accomplish this, the transistor must be guarded from its environs – you may have heard that “measurement” collapses wavefunctions, but measurement doesn’t mean that a human is looking at something.  Measurement simply means that the state of an object becomes coupled with the state of its environment.

If a photon approaches, the state of the object becomes linked with the state of the photon.  They might’ve collided or not, which narrows the range of space in which the object might exist, which narrows the set of wavefunctions that could be summed to give its momentum.  A collision-less encounter restricts us to a different set of futures than if the photon hit the thing.

In practice, that means a quantum computer needs to be kept dark, and atmosphere-less, and very, very cold.  For a long time – the transistors have to stay unmolested for the entire duration of a calculation.

IBM’s Quantum Q. Photo by IBM research on Flickr.

Obviously, these devices are very expensive to build and run.

And why might we want them?  Well, they’d be better than conventional computers at … um … at factoring the large numbers that are used for computer encryption! 

Quantum computers are fascinating.  Our attempts to build them have helped us learn more about the workings of our world.  But the actual existence of quantum computers – at least until we think of an application other than cracking computer security – will make the world worse.

Worried that people might copy data and then use quantum computers to decode it later — you know, after these computers have been invented — security experts say that we need to start spending more money on encryption now

While playing Fists of Dragonstone, my friends would curse and shout after making an exorbitantly high bid and then seeing that every other player bid zero.  I could have won with $1! 

That’s basically what security experts are encouraging us to do. Not curse — overbid. They say that we should make extremely high bids on encryption now, to protect ourselves from a technology that might never exist.  Otherwise, undesirables might gain access to the password-protected folder of risqué photographs that you and your partner(s) took.  Or break into your bank account.

Occasionally, adversarial work improves the world.  When restaurants compete, service might get better. The food, tastier.

But most adversarial contests are engines for waste.  High-speed stock trading makes the market more fluid – you can log on and purchase a few dozen shares of whatever you’d like since AI algorithms are ready to facilitate transactions between buyers and sellers. 

That’s a small service, though.  High-speed trading firms shouldn’t be extracting as much wealth as they are in this country.  Mostly they eavesdrop on others’ conversations, sneak in front of people who’re trying to buy something, then scalp it back at higher prices.  Trading firms pay exorbitant rent on shelf space that’s close as possible to the stock exchange mainframes – if one scalper is microseconds faster than another, that’s the one who gets to shake you down.

In a board game, cooperation is generally less fun than adversarial play.  For the former, players are trying to solve a puzzle created by the designer.  With adversarial rules, players are using their intelligence to create puzzles for each other in real time.

In a game, the waste is the entire point.  Nothing tangible is produced, but the expended time leads to social camaraderie.  The expended brainpower can give you a sense of satisfaction from having worked through intellectual puzzles.  And, hopefully, you’ll have fun.

But – whoops – we’ve used the principles of good game design and mistakenly applied them to the real world.  Fists of Dragonstone was fun; our political system shouldn’t be based on all-pay auctions.  With major politicians poised to ravage the Amazon, cull the world’s few remaining old-growth forests, and dredge up Arctic oil fields, the people wealthy enough to make high bids on upcoming elections might well destroy us.

NASA image revealing the ongoing deforestation of the Amazon rainforest.  Just f.y.i., the forest is being cleared to make space for cows.  Each time you choose eat beef or dairy cheese, you’re contributing to the destruction of the “Lungs of our Planet.”

Featured image for this post: “Auction Today” by Dave McLean on Flickr.

On a guaranteed basic income.

On a guaranteed basic income.

For several months, a friend and I have volleyed emails about a sprawling essay on consciousness, free will, and literature.

Brain_powerThe essay will explore the idea that humans feel we have free will because our conscious mind grafts narrative explanations (“I did this because…”) onto our actions. It seems quite clear that our conscious minds do not originate all the choices that we then take credit for. With an electroencephalogram, you could predict when someone is about to raise an arm, for instance, before the person has even consciously decided to do so.

Which is still free will, of course. If we are choosing an action, it hardly matters whether our conscious or subconscious mind makes the choice. But then again, we might not be “free.” If an outside observer were able to scan a person’s brain to sufficient detail, all of that person’s future choices could probably be predicted (as long as our poor study subject is imprisoned in an isolation chamber). Our brains dictate our thoughts and choices, but these brains are composed of salts and such that follow the same laws of physics as all other matter.

That’s okay. It is almost certainly impossible that any outside observer could (non-destructively) scan a brain to sufficient detail. If quantum mechanical detail is implicated in the workings of our brains, it is definitely impossible: quantum mechanical information can’t be duplicated. Wikipedia has a proof of this “no cloning theorem” involving lots of bras and kets, but this is probably unreadable for anyone who hasn’t done much matrix math. An easier way to reason through it might be this: if you agree with the Heisenberg uncertainty principle, the idea that certain pairs of variables cannot be simultaneously measured to arbitrary precision, the no cloning theorem has to be true. Otherwise you could simply make many copies of a system and measure one variable precisely for each copy.

So, no one will ever be able to prove to me that I am not free. But let’s just postulate, for a moment, that the laws of physics that, so far, have correctly described the behavior of all matter outside my brain also correctly describe the movement of matter inside my brain. In which case, those inviolable laws of physics are dictating my actions as I type this essay. And yet, I feel free. Each word I type feels like a choice. My brain is constantly concocting a story that explains why I am choosing each word.

Does the same neural circuitry that deludes me into feeling free – that has evolved, it seems, to constantly sculpt narratives that make sense of our actions, the same way our dreams often burgeon to include details like a too hot room or a ringing telephone – also give me the ability to write fiction?

In other words, did free will spawn The Iliad?

iliad.JPG

The essay is obviously rather speculative. I’m incorporating relevant findings from neuroscience, but, as I’ve mentioned, it’s quite likely that no feasible experiments could ever test some of these ideas.

The essay is also unfinished. No laws of physics forbid me from finishing it. I’m just slow because K & I have two young kids. At the end of each day, once our 2.5 year old and our 3 month old are finally asleep, we exhaustedly glance at each other and murmur, “Where did the time go?”

tradersBut I am very fortunate to have a collaborator always ready to nudge me back into action. My friend recently sent me an article by Tim Christiaens on the philosophy of financial markets. He sent it because the author argues – correctly, in my opinion – that for many stock market actions it’s sensible to consider the Homo sapiens trader + the nearby multi-monitor computer as a single decision-making entity. Tool-wielding is known to change our brains – even something as simple as a pointing stick alters our self-perception of our reach. And the algorithms churned through by stock traders’ computers are incredibly complex. There’s not a good way for the human to check a computer’s results; the numbers it spits out have to be trusted. So it seems reasonable to consider the two together as a single super-entity that collaborates in choosing when to buy or sell. If something in the room has free will, it would be the tools & trader together.

Which isn’t as weird as it might initially sound. After all, each Homo sapiens shell is already a multi-species super-entity. As I type this essay, the choice of which word to write next is made inside my brain, then signals are sent through my nervous system to my hands and fingers commanding them to tap the appropriate keys. The choice is influenced by all the hormones and signaling molecules inside my brain. It so happens that bacteria and other organisms living in my body excrete signaling molecules that can cross the blood-brain barrier and influence my choice.

The milieu of intestinal bacteria living inside each of us gets to vote on our moods and actions. People with depression seem to harbor noticeably different sets of bacteria than people without. And it seems quite possible that parasites like Toxoplasma gondii can have major influences on our personalities.

CaptureIndeed, in his article on stock markets, Christiaens mentions the influence of small molecules on financial behavior, reporting that “some researchers study the trader’s body through the prism of testosterone levels as an indicator of performance. It turns out that traders who regularly visit prostitutes consequently have higher testosterone levels and outperform other traders.”

Now, I could harp on the fact that we designed these markets. That they could have been designed in many different ways. And that it seems pretty rotten to have designed a system in which higher testosterone (and the attendant impulsiveness and risky decision-making) would correlate with success. Indeed, a better, more equitable market design would probably quell the performance boost of testosterone.

I could rant about all that. But I won’t. Instead I’ll simply mention that Toxoplasma seems to boost testosterone. Instead of popping into brothels after work, traders could snack on cat shit.

cat-1014209_1280.jpg

On the topic of market design, Christiaens also includes a lovely description of the interplay between the structure of our economy and the ways that people are compelled to live:

The reason why financial markets are able to determine the viability of lifestyles is because most individuals and governments are indebted and therefore need a ‘creditworthy’ reputation. As the [U.S.] welfare state declined during the 1980s, access to credit was facilitated in order to sustain high consumption, avoid overproduction and stimulate economic growth. For Lazzarato [a referenced writer], debt is not an obligation emerging from a contract between free and equal individuals, but is from the start an unequal power relation where the creditor can assert his force over the debtor. As long as he is indebted, the latter’s rights are virtually suspended. For instance, a debtor’s property rights can be superseded when he fails to reimburse the creditor by evicting him from his home or selling his property at a public auction. State violence is called upon to force non-creditworthy individuals to comply. We [need] not even jump to these extreme cases of state enforcement to see that debt entails a disequilibrium of power. Even the peaceful house loan harbors a concentration of risk on the side of the debtor. When I take a $100,000 loan for a house that, during an economic crisis, loses its value, I still have to pay $100,000 plus interests to the bank. The risk of a housing crash is shifted to the debtor’s side of the bargain. During a financial crisis this risk concentration makes it possible for the creditors to demand a change of lifestyle from the debtor, without the former having to reform themselves.

Several of my prior essays have touched upon the benefits of a guaranteed basic income for all people, but I think this paragraph is a good lead-in for a reprise. As Christiaens implies, there is violence behind all loans – both the violence that led to initial ownership claims and the threat of state violence that compels repayment. Not that I’m against the threat of state violence to compel people to follow rules in general – without this threat we would have anarchy, in which case actual violence tends to predominate over the threat of incipient enforcement.

We all need wealth to live. After all, land holdings are wealth, and at the very least each human needs access to a place to collect fresh water, a place to grow food, a place to stand and sleep. But no one is born wealthy. A fortunate few people receive gifts of wealth soon after birth, but many people foolishly choose to be born to less well-off parents.

The need for wealth curtails the choices people can make. They need to maintain their “creditworthiness,” as in Christiaens’s passage, or their hire-ability. Wealth has to come from somewhere, and, starting from zero, we rely on others choosing to give it to us. Yes, often in recompense for labor, but just because you are willing and able to do a form of work does not mean that anyone will pay you for it.

Unless people are already wealthy enough to survive, they are at the mercy of others choosing to give them things. Employers are not forced to trade money for salaried working hours. And there isn’t wealth simply waiting around to be claimed. It all starts from something – I’d argue that all wealth stems originally from land holdings – but the world’s finite allotment of land was claimed long ago through violence.

A guaranteed basic income would serve to acknowledge the brutal baselessness of those initial land grabs. It is an imperfect solution, I know. It doesn’t make sense to me that everyone’s expenses should rise whenever a new child is born. But a world where people received a guaranteed basic income would be better than one without. The unluckily-born populace would be less compelled to enter into subjugating financial arrangements. We’d have less misery – feeling poor causes a lot of stress. We’d presumably have less crime and drug abuse, too, for similar reasons.

And, of course, less hypocrisy. It’s worth acknowledging that our good fortune comes from somewhere. No one among us created the world.