The intersection of markets and politics: fiscal policy, tax structure, regulatory economics, campaign finance, inequality, monetary policy, and the strategic behavior of economic actors in political environments.
A dispatch from the road, later than usual. The week covered the launch of the junk drawer series, a USPS post whose central mechanism acquired a fuel surcharge while the post was still fresh, a Supreme Court case in which the drawer breaks, and a Friday post on Iran that staked a prediction now counting … Read more
Here are two statements about the same agreement, issued within twenty-four hours of each other, by officials who were present at its creation. Donald Trump, April 8, 2026: “There will be no enrichment of Uranium, and the United States will, working with Iran, dig up and remove all of the deeply buried Nuclear ‘Dust.’” Iran’s … Read more
A week that started with three posts on prediction markets and ended with a ceasefire that may or may not be one. Plus: a poll you took, a court hearing nobody is watching, and a new series beginning next week that Ed. did not see coming. In the News Total and Complete Victory (Fragile Truce … Read more
This is the third of three posts this week on prediction markets. Monday was about information — the signal that travels before the message. Wednesday was about jurisdiction — the classification question that reproduces itself at every level you try to answer it. Today is about something prior to both: whether the classification of a … Read more
This is the first of three posts this week on prediction markets. They can be read independently, but they build. Today’s question is about information. Wednesday’s is about jurisdiction. Friday’s is about ontology, which sounds worse than it is. Start with a fact pattern. In the weeks surrounding the Iran nuclear negotiations, large futures positions … Read more
Scientific American ran a piece yesterday on Simpson’s paradox — the phenomenon in which a trend that holds within every subgroup of a dataset reverses, or vanishes entirely, when those subgroups are combined. Regular readers of this blog will have encountered it before. In 2012, it showed up inside No Child Left Behind: a school … Read more
The Financial Times ran a piece last week reporting that Senegal — yes, that Senegal — had borrowed €650 million through instruments it had not disclosed to the IMF, to its existing bondholders, or apparently to anyone who might have objected. Which, it turns out, is everyone. I clicked on it because it was about … Read more
Yesterday’s post argued that a national aggregate can accurately represent no one’s actual experience when the underlying data are structured the right way — or, more precisely, the wrong way. The incarceration example was instructive precisely because it was symmetrically uncomfortable: the same Simpson’s paradox that embarrasses the reform-is-working narrative also embarrasses the cities-are-dangerous one. … Read more
Bismarck is credited with the observation that laws are like sausages: it is better not to see them being made. The remark is probably apocryphal, which is itself somehow on-brand for a quote about the virtues of not looking too closely at things. Either way, the folk wisdom it encodes is real and ancient: what … Read more
Let me tell you something you already know: ChatGPT, Claude, Grok — whatever flavor you’ve adopted — is very, very nice to you. Suspiciously nice. “Your presentation looks great, here are a few minor suggestions” nice. “That’s a fascinating question” nice. “I can see why you’d approach it that way” nice. You know this. You’ve … Read more