Back to econ in a second, but let's have fun: how about 50 correct moderate takes: 1) Ukrainians are heroes who suffered a ton. 2) Putin obviously covets Georgia and the Baltics also. 3) EU not in talks because they basically have no hard power; France even lost the Sahel. 1/x
4) The far right European parties are bad. 5) Pretending parties that win state and EU elections, and are in govt in NL and AT and IT, aren't legitimate will not end well. 6) And in fact EU & UK speech laws not on side of liberty. 7) (but EU food and kid culture is better!) 2/x
8) Europe's demographic crisis is really severe; not sure what the solution is. 9) Engineer training esp in France, Italy, Switz is excellent. 10) That talent should produce better econ outcomes, so econ policy must be dreadful. 3/x
11) Trump clearly doesn't value democracy. 12) Most of his actual actions are much milder than his words. 12) Would be a disaster if that changed. 13) Censorious right wing culture will cause backlash just like woke culture did (put another way, 90s civic culture was better!) 4/x
14) Decline in trust in universities, media, and public health was our own fault. 15) Broader ideological diversity would be a huge improvement. 16) "Smart people in private sector" are much more ideologically diverse. 5/x
16) Canada has resources and good demographics so future is strong. 17) But culture based on "we aren't US" is a dead end. 18) CA attitude to US like Calif attitude towards Texas: many stereotypes, little knowledge, and getting crushed on growth. 6/x
19) Most Middle East problems easy to solve but populace even crazier than leaders. 20) With exception of Iran, who would be great ally of West based only on median "voter". 21) Dubai isn't somewhere I'd live, but economically it is most fascinating success of recent decades. 7/x
22) Future of India very bright - English, young, educated, democratic, globally focused, successful expats. 23) Bangladesh as well. 24) Pakistan has problems that are very hard to fix, though Hunza is prettiest place in the world. 8/x
25) China underrated: the growth is actually staggering and tech leapfrogging in many areas is clear. 26) Chinese universities getting very strong, many foreign students from dev world. 27) But society way more closed than when I worked there 20 yrs ago, HK stolen, Taiwan? 9/x
28) Korea and Japan are delightful, but what will happen to countries who lose 20% of population in a generation? 29) Vietnam and Indonesia are very interesting going forward, esp former, as important powers. 30) Australia as well: resources and culture. 10/x
31) The future is African: tautology based on demographics. 32) The Sahel can easily get much much worse. 33) As can Central Africa, largely because of Kagame. 34) Ethiopia, Kenya, Nigeria, Ghana, Bénin as growth miracles seems possible, though. 11/x
35) Latin America is joyous and way underappreciated for cultural interest. 36) But highly polarized Presidential systems make it so hard to improve. 37) And the educational underperformance is a real barrier to growth. 12/x
38) US is clearly economic engine of world, and moreso now than 10 years ago, and you are deluded to think otherwise. 39) Why? Energy costs and tech sector, esp AI, plus growing pop of high grit immigrants. Have to get these right. 13/x
40) Avg US govt quality is not good but generally it doesn't try to do very much, which makes it less of a problem. 41) But it isn't filled with fraud - it is almost all old age transfers and military and interest. 14/x
42) More federalism, weaker courts would be better (this is Canada's secret - federal courts don't matter). 43) More transfers to young would be better: preK, service opps, parental leave, guaranteed vacation. 15/x
44) That said, US policy directionally right, and Germany has more to learn economically from Texas than vice versa (let people build, keep energy cheap). 45) Still, institutions matter, and hard to rebuild once destroyed. 16/x
46) EU = no war in W Eur for 80 years = it is good. 47) NATO, UN, World Bank have flaws, but they are so cheap and global stability so rare historically that they are good. 48) Greenland in CoFA, free labor movement with Canada and US: both good, made harder by DT rhetoric. 17/x
49) Shame is useful to keep public servants and regular Joes on straight and narrow path. 50) But at the end of day, success more important than words. Strong countries and societies and global orders are not build on words & soft power, but on growing liberty & prosperity. 18/18
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France just held a big AI summit. They want to build up their tech sector. Global prosperity would be enhanced by this. But I can't tell you how insane EU regulation is here, and how it inadvertently enhances market power of big US firms. Let's look at GDPR, for example. 1/x
You may think this is just "accept cookie" banners and rules so, like, your personal medical information isn't sold. Not at all. Let's imagine you are a tiny US software company, doing a hundred bucks a month of sales in Europe. What's required? 2/x
First, you need policies for every piece of identifying data you collect. Emails, IP addresses, anything. Those cookie banners? Mandatory. There are six bases on which you can collect data, with different rules. 3/x
Curious about the wide range of reactions to o3 Deep Research. I went through some cases where people found "bad results". I think I understand what is going on - part of this is just bad UX choices by OpenAI, part a misunderstanding of what the model is for. 1/x
So o3 is a reasoning model - an LLM. Deep Research grafts web search, python tools, and a fine-tuned model to use those tools to gather additional data on top of o3. It can't read gated articles, has a mediocre OCR for public pdfs, can't read dynamically generated webpages. 2/x
For "pure fact", a raw LLM is best. For logical or mathematical reasoning on a single question, again, a frontier LLM: o3 does incredible on really really hard math benchmarks. Deep Research adds outside info from the web search. 3/x
The new OpenAI model announced today is quite wild. It is essentially Google's Deep Research idea with multistep reasoning, web search, *and* the o3 model underneath (as far as I know). It sometimes takes a half hour to answer. Let me show you an example. 1/x
So related to the tariff nuttiness, what if you wanted to read about the economics of the 1890 McKinley tariff, drawing on modern trade theory? I asked Deep Research to spin up a draft, with a couple paragraphs of guidance, in Latex, with citations. 2/x
How good can it do literally one shot? I mean, not bad. Honestly, I've gotten papers to referee that are worse than this. The path from here to steps where you can massively speed up pace of research is really clear. You can read yourself here: 3/xkevinbryanecon.com/o3McKinley.pdf
The tariffs are insane; everyone knows that if Congress voted in secret, Senate would be 95-5 against. This whole situation is based on the ignorance of one man, and the lack of fortitude among Congress to push back. It will harm all four countries. So what should Canada do? 1/x
Facts: most N. America trade is intermediate goods, Canada is (much) more reliant on US intermediate than US is on Canada, "negotiation" tough b/c the policy is bad for the US as is (hard to threaten someone who isn't even maximizing US welfare!). 2/x
Obviously tempting to say "Fuck this guy; on Tuesday we are cutting off electric supply to the NE, and banning oil exports until tariffs removed, and also banning every uniquely critical intermediate output from leaving." But... 3/x
I have friends on that AEA committee on social media but seriously, read this report and tell me if you think it is a fair, scholarly, and nonpartisan look at evidence. There are like a half dozen potshots at people who disagree with a certain political consensus. 1/4
Evidence that doesn't support narrative is buried in appendices (eg, in every question there is no gap in harassment by race, so despite the text, no data on that factor is shown at all), "#econtwitter" is seen as neutral environment (it was very left wing applied micro) etc 2/4
Agree that social media has led to harassment of economists, women first and foremost. But I also don't think the AEA should be playing a role here, and "everyone should join bluesky", another very politicized space with much less connection outside academia, as a formal rec? 3/4
Since immigration reform might be on the table: mostly family green cards and H1B via lottery is crazy. Just auction then off with age and field adjustment and a background check + some method for high grit strivers to come in numbers. Abundance!
I'd also make it de facto unrestricted for developed countries where net migration isn't huge. This is status quo for Canadians, Chileans, Singaporeans, Australians by treaty (E3, TN, H1B1). No issues except less friction. If future Jensens, Katlins & Elons want to come let them!
This can improve on Canada points system. That takes credentials not grit/achievements. We don't want just world's rich/Type As. We want people who want to be American & build a life & prosperity. #1 travel lesson: many hardworking folks have hard life by bad luck of birthplace.