Liberal Santa Claus Makes Kid Cry By Refusing To Give Him A Nerf Gun For Christmas

Liberal Santa Claus Makes Kid Cry By Refusing To Give Him A Nerf Gun For Christmas

Tyler Durden

Tue, 12/08/2020 – 10:50

Authored by Paul Joseph Watson via Summit News,

A viral video shows a liberal pro-gun control Santa Claus making a small child cry by refusing to give him a toy nerf gun for Christmas.

The boy asks Santa for a nerf gun, to which he responds, “No, no guns.”

The boy’s mother then tries to interject by clarifying, “A nerf gun.”

“No, not even a nerf gun,” replies Santa.

After the boy looks at his mother puzzled, Santa continues, “Nope. If your dad wants to get it for you, that’s fine, but I can’t bring it to you.”

“What else would you like? There’s lots of other toys. There’s Legos, there’s bicycles, there’s cars and trucks. What do you think? What do you think?” asks Santa with a tone more befitting of an annoying liberal TV anchor rather than jolly old Father Christmas.

The boy then begins to cry out loud and his mother walks over to console him.

“Aww, don’t cry,” Santa then responds in the same annoying, patronizing tone.

The boy continues to sob uncontrollably while the Santa says “Merry Christmas!” in the same patronizing tone.

According to the original poster of the video, the liberal Santa has now been fired.

Respondents to the video will be delighted.

“This literally made me cry. Good job, ‘Santa’, you just broke a little kid’s heart……shame on you,” said one.

“Dude had one job & he couldn’t help himself,” remarked another.

*  *  *

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Hong Kong Arrests 8 More Pro-Democracy Activists As Opposition Crackdown Intensifies

Hong Kong Arrests 8 More Pro-Democracy Activists As Opposition Crackdown Intensifies

Tyler Durden

Tue, 12/08/2020 – 10:29

As Britain processes hundreds of visa applications for Hong Kongers seeking to flee the territory now that Beijing has extinguished its Democratic freedoms, local police on Tuesday continued their roundup of top opposition officials after sentencing two former student activists to brief prison terms and denying bail to one of the island’s most visible media moguls.

Hong Kong police arrested eight more activists on Tuesday over an anti-government protest in July, the latest move by authorities in a relentless crackdown on opposition forces in the Chinese-ruled city. Meanwhile, at least one former opposition lawmaker from Hong Kong’s LegCo – all 19 opposition lawmakers quit en masse last month – has fled to Europe and been granted asylum in the UK, a move that will likely infuriate Beijing.

Perhaps in an attempt to prevent anybody else from running off, Beijing is rounding up and arresting activists left and right. On Tuesday morning in Hong Kong, it was reported that police had arrested another 8 activities between the ages of 24 and 64. One day earlier, police arrested 8 activists said to be between the ages of 16 and 36. None of their names were released.

The latest activists were charged with participating in a skirmish with police on July 1, the anniversary of the colony’s handover to China from the UK. More than 300 people were arrested during the demonstration. Participants were protesting the new national security law, which had just been approved by top CCP leaders in Beijing and signed by President Xi.

Here’s more from Reuters:

Hong Kong police arrested eight more activists on Tuesday over an anti-government protest in July, the latest move by authorities in a relentless crackdown on opposition forces in the Chinese-ruled city.

The police did not identify the people, saying only that they were aged between 24 and 64. Local media said former pro-democracy lawmaker and veteran activist Leung Kwok-hung, known as Long Hair, was among those arrested.

The move comes a day after eight people aged between 16 and 34 were arrested, including three on suspicion of violating a sweeping national security law, over a brief demonstration at a university campus last month.

Hong Kong police fired water cannon and tear gas to disperse protesters on July 1, the anniversary of the former British colony’s handover to Chinese rule, as thousands demonstrated despite a police ban on the annual protest.

In an attempt to discourage Beijing from robbing Hong Kongers of their democratic feedoms and closing a long time “gateway to the West”, the Trump Administration slapped new sanctions and travel restrictions on 14 CCP officials believed to be responsible. The Trump Administration also recently stopped issuing visas longer than 1 month for any known members of the CCP trying to visit the US.

Still, Beijing is doing a pretty good job of making it clear that Hong Kong is no longer safe for those who assiduously supported the pro-democracy movement.

via ZeroHedge News https://ift.tt/3gqXnEr Tyler Durden

BlueCrest Fined $170MM For Secretly Replacing Top Traders Managing Outside Money With Underperforming Algos

BlueCrest Fined $170MM For Secretly Replacing Top Traders Managing Outside Money With Underperforming Algos

Tyler Durden

Tue, 12/08/2020 – 10:16

Back in 2015, after a series of disappointing years prompted clients to pull money from the underperforming BlueCrest Capital Management, Michael Platt announced plans to return all outside capital to investors and transition into a private investment partnership that would manage money for its partners and employees. It proved to be a brilliant decision as the fund has been on a tear since then, generating returns of 50% in 2016, 54% in 2017, 25% in 2018 when the average hedge fund lost money, and 50% in 2019.

BlueCrest founder Michael Platt

We now know why BlueCrest performed so poorly when managing outside money and was Medallion reincarnated when managing its own.

On Tuesday, the SEC announced that BlueCrest agreed to pay $170 million to investors to settle a U.S. regulator’s allegations that it misled clients and did not disclose that it transfered its top traders from its flagship client fund, BlueCrest Capital International (BCI), to a proprietary internal fund, BSMA Limited, and replaced those traders with an “underperforming algorithm.” The stealthy transfer, which took place from October 2011 through December 2015 when BlueCrest returned outside capital, resulted in losses of at least $170 million to investors.

The order finds that BlueCrest did not disclose certain material facts about the algorithm to BCI’s independent directors.  According to the order, the algorithm generated significantly less profit with greater volatility than the live traders.  The order finds that BlueCrest was able to keep more of any performance fees generated by the algorithm than by live traders.

“BlueCrest repeatedly failed to act in the best interests of its investors, including by not disclosing that it was transferring its highest-performing traders to a fund that benefitted its own personnel to the detriment of its fund investors,” said Stephanie Avakian, Director of the SEC’s Division of Enforcement. “This settlement holds BlueCrest responsible for its conduct and furthers the SEC’s goal of returning funds to harmed investors.”

“An adviser’s disclosures to investors and prospective investors in funds they manage must be accurate,” said Adam Aderton, Co-Chief of the SEC’s Asset Management Unit.  “BlueCrest investors were marketed a fund with exceptional trading talent but instead got a fund with an undisclosed algorithm that performed worse than those touted traders.”

The SEC also found that BlueCrest failed to disclose that it reallocated the transferred traders’ capital allocations in BCI to a semi-systematic trading system, which was essentially a replication algorithm that tracked certain trading activity of a subset of BlueCrest’s live traders. 

In other words, when managing its own money, the macro fund would dedicate its best traders to come up with the top trades, and not only that but it would effectively frontrun its clients! Then, when the time came to manage client money, BlueCrest basically used a simply copycat algo to piggyback on its top trades but only after the management team was already in the positions, thus giving it substantial firepower to generate alpha simply by having billions in fund flows rush into the same trades it had already put on, creating a feedback loop.

We wonder if BlueCrest also unloaded its own positions by selling them to its own clients.

In any case, we certainly doubt BlueCrest is alone in this particular eggregious violation of fiduciary standards, and wonder if a similar bait-and-switch is also why RenTec’s internal Medallion fund outperforms the outside client-facing RIEF funds every single year.

Full complaint below:

33-10896 by Zerohedge

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BlueCrest Fined $170MM For Secretly Replacing Top Traders Managing Outside Money With Underperforming Algos

BlueCrest Fined $170MM For Secretly Replacing Top Traders Managing Outside Money With Underperforming Algos

Tyler Durden

Tue, 12/08/2020 – 10:16

Back in 2015, after a series of disappointing years prompted clients to pull money from the underperforming BlueCrest Capital Management, Michael Platt announced plans to return all outside capital to investors and transition into a private investment partnership that would manage money for its partners and employees. It proved to be a brilliant decision as the fund has been on a tear since then, generating returns of 50% in 2016, 54% in 2017, 25% in 2018 when the average hedge fund lost money, and 50% in 2019.

BlueCrest founder Michael Platt

We now know why BlueCrest performed so poorly when managing outside money and was Medallion reincarnated when managing its own.

On Tuesday, the SEC announced that BlueCrest agreed to pay $170 million to investors to settle a U.S. regulator’s allegations that it misled clients and did not disclose that it transfered its top traders from its flagship client fund, BlueCrest Capital International (BCI), to a proprietary internal fund, BSMA Limited, and replaced those traders with an “underperforming algorithm.” The stealthy transfer, which took place from October 2011 through December 2015 when BlueCrest returned outside capital, resulted in losses of at least $170 million to investors.

The order finds that BlueCrest did not disclose certain material facts about the algorithm to BCI’s independent directors.  According to the order, the algorithm generated significantly less profit with greater volatility than the live traders.  The order finds that BlueCrest was able to keep more of any performance fees generated by the algorithm than by live traders.

“BlueCrest repeatedly failed to act in the best interests of its investors, including by not disclosing that it was transferring its highest-performing traders to a fund that benefitted its own personnel to the detriment of its fund investors,” said Stephanie Avakian, Director of the SEC’s Division of Enforcement. “This settlement holds BlueCrest responsible for its conduct and furthers the SEC’s goal of returning funds to harmed investors.”

“An adviser’s disclosures to investors and prospective investors in funds they manage must be accurate,” said Adam Aderton, Co-Chief of the SEC’s Asset Management Unit.  “BlueCrest investors were marketed a fund with exceptional trading talent but instead got a fund with an undisclosed algorithm that performed worse than those touted traders.”

The SEC also found that BlueCrest failed to disclose that it reallocated the transferred traders’ capital allocations in BCI to a semi-systematic trading system, which was essentially a replication algorithm that tracked certain trading activity of a subset of BlueCrest’s live traders. 

In other words, when managing its own money, the macro fund would dedicate its best traders to come up with the top trades, and not only that but it would effectively frontrun its clients! Then, when the time came to manage client money, BlueCrest basically used a simply copycat algo to piggyback on its top trades but only after the management team was already in the positions, thus giving it substantial firepower to generate alpha simply by having billions in fund flows rush into the same trades it had already put on, creating a feedback loop.

We wonder if BlueCrest also unloaded its own positions by selling them to its own clients.

In any case, we certainly doubt BlueCrest is alone in this particular eggregious violation of fiduciary standards, and wonder if a similar bait-and-switch is also why RenTec’s internal Medallion fund outperforms the outside client-facing RIEF funds every single year.

Full complaint below:

33-10896 by Zerohedge

via ZeroHedge News https://ift.tt/3grS0on Tyler Durden

Admiral Giroir Slams Bans On Outdoor Dining As Without Scientific Basis

Admiral Giroir Slams Bans On Outdoor Dining As Without Scientific Basis

Tyler Durden

Tue, 12/08/2020 – 09:54

Authored by Jonathan Turley,

Just before I was interviewed today on Fox about ongoing challenges to shutdown orders, Admiral Brett Giroir was interviewed and gave what must have been welcomed views on the science behind pandemic orders. A hearing is scheduled tomorrow in one of the challenges by businesses in California to the lockdown ordered by Governor Gavin Newsom.  Giroir however stated that there was no evidence or science supporting the type of categorical lockdown in states like California, particularly bans on outdoor dining. The statement presents a potential conflict with Dr. Anthony Fauci. It certainly contradicts the common narrative in the media and the recent election. Giroir is a widely respected public health expert who has reinforced a calm and science-based approach to the White House Coronavirus Task Force.

As I discussed, courts have been applying greater scrutiny to these pandemic orders. The initial deference afforded to pandemic order tends to wane with time. The first such shift came predictably with challenges based on the contravention of constitutional rights, particularly the free exercise of religion under the First Amendment. Such challenges have the advantage of the higher standard of strict scrutiny.

Now, however, there are renewed challenges for businesses under the lower standard of the rational basis test.

This is due to the contradiction of some orders with known science or data on transmission rates and sources.

For example, through the election, Democrats suggested that President Donald Trump was effectively trying to kill children by pushing to reopen schools, including Washington Post columnist Jennifer Rubin. Rubin has previously shown a disregard of the factual foundation for her allegations. Yet, Democrats have maintained until recently that schools must be closed due to the high risk of transmission despite growing scientific evidence to the contrary.  

Ads running before the election cited Dr. Fauci in saying that opening schools was putting the lives of children at risk for political reasons:

Recently, Mayor diBlasio reversed his order to close New York schools after criticism over the lack of scientific support for the policy. Indeed, it contradicts the long-standing findings of health organizations that young children show an exceptionally low risk for contracting or passing Covid-19.  There are also studies showing the high cost of lockdown from massive economic losses to spikes in suicide to increasing medical (non-Covid-19) emergencies.

Thankfully, courts tend to be more attentive to the factual foundation of their own conclusions.  At most, they will find a mixed scientific record supporting the categorical bans.

Notably, Dr. Anthony Fauci, said publicly that he supported the new lockdowns in California. However, Giroir referenced Fauci and the other Task Force members in saying that they have not seen “any data that says you need to shutdown outdoor dining or outdoor bars.” He said that the science does not support such categorical lockdowns, explaining

“We do, in a surge place, need to limit indoor dining, indoor bars, but you don’t have to close schools, you don’t have to close universities, you don’t have to close your major industries… The science does not support limiting indoor dining and bars…It’s time to nuance. This is not March or April. This is December. We know what the science says, we know there are countermeasures that are effective…

…Whatever the expression is, throwing the baby out with the bathwater, I think we could be causing a lot more harm by overly restrictive recommendations that are not supported by the science,” he said. “What I am saying is the evidence clearly does not support limitations on things like outdoor dining particularly that are spaced, outdoor bars — the evidence just isn’t there. . . Shutting down completely, particularly if you don’t have evidence, can be counterproductive.”

That is likely to be featured prominently in these increasing challenges to blanket shutdown orders.  State and local officials will still be afforded deference but the science on some of these limitations can now be challenged. The best bet for governors is still the rational basis test which ordinarily presents an easy standard to satisfy.

However, the call “follow the science” may not be a clearly supportive in some of these cases. There now appears to be significant science-based arguments that can be raised in opposing to sweeping lockdowns. If a court is presented with science on both sides, the advantage still rests with the states and their pandemic orders. They will have to offer a rational basis for why such lockdowns are needed. That might include reducing the travel of parents with their children to schools and the need for significant numbers of adults to support school operations, including obviously the teachers.  In such a balancing, statements by experts like Admiral Giroir will likely to be raised and considered by courts.

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Texas Sues Georgia, Michigan, Pennsylvania And Wisconsin At US Supreme Court Over Election

Texas Sues Georgia, Michigan, Pennsylvania And Wisconsin At US Supreme Court Over Election

Tyler Durden

Tue, 12/08/2020 – 09:37

The state of Texas filed a lawsuit at the US Supreme Court against Georgia, Michigan, Pennsylvania and Wisconsin on the grounds that various changes to their voting rules or procedures – either through the courts or via executive actions – violated the Electors Clause of the Constitution because they did not go through the legislatures.

Texas also argues that differences in rules and procedures in different counties within the same state violates the Constitution’s Equal Protection Clause, and that “voting irregularities” occurred in these states as a result.

The lawsuit, filed shortly before midnight on Monday, asks the Supreme Court to allow their legislators to directly appoint electors, according to Breitbart.

From the filing:

Certain officials in the Defendant States presented the pandemic as the justification for ignoring state laws regarding absentee and mail-in voting. The Defendant States flooded their citizenry with tens of millions of ballot applications and ballots in derogation of statutory controls as to how they are lawfully received, evaluated, and counted. Whether well intentioned or not, these unconstitutional acts had the same uniform effect—they made the 2020 election less secure in the Defendant States. Those changes are inconsistent with relevant state laws and were made by non-legislative entities, without any consent by the state legislatures. The acts of these officials thus directly violated the Constitution.

This case presents a question of law: Did the Defendant States violate the Electors Clause by taking non-legislative actions to change the election rules that would govern the appointment of presidential electors? These non-legislative changes to the Defendant States’ election laws facilitated the casting and counting of ballots in violation of state law, which, in turn, violated the Electors Clause of Article II, Section 1, Clause 2 of the U.S. Constitution. By these unlawful acts, the Defendant States have not only tainted the integrity of their own citizens’ vote, but their actions have also debased the votes of citizens in Plaintiff State and other States that remained loyal to the Constitution.

Developing…

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Universal Student Debt Forgiveness Is Regressive, Say Economists

polspphotos661265

Wiping out student loan debt for American college graduates would benefit the wealthy much more than it benefits less privileged students, according to a new working paper from the National Bureau of Economic Research. “Blacks and Hispanics would also benefit substantially less than balances suggest,” the authors say.

In the paper, titled “The Distributional Effects of Student Loan Forgiveness,” economists Sylvain Catherine and Constantine Yannelis conclude that universal student loan “forgiveness would benefit the top decile as much as the bottom three deciles combined.”

Not all student-loan-forgiveness schemes would have the same effects, they note:

There are a number of ways in which debt can be discharged, with important distributional implications. For example, forgiveness can be universal, capped or targeted to specific borrowers. These debt cancellation policies can benefit different socioeconomic and ethnic groups. This paper explores their distributional impacts. We find that the benefits of universal debt forgiveness policies largely accrue to high-income borrowers, while forgiveness through expanding income-contingent loan plans instead favors middle-income borrowers.

Income-contingent payment plans and loan forgiveness schemes already exist in the U.S.  Increasing enrollment in such plans “or increasing these plans’ generosity is another option for targeted debt forgiveness,” and one that would actually benefit middle-income debtors more than their wealth counterparts, the authors suggest.

But full or partial loan forgiveness regardless of income and loan size would be “highly regressive, with the vast majority of benefits accruing to high-income individuals,” they conclude.

Reason‘s Mike Riggs offers some better ideas for student loan reform here.


FREE MINDS

“It is possible for a person—or at least their views—to be both loud and silenced,” suggests Tom Chivers at UnHerd:


FREE MARKETS

Uber is abandoning self-driving cars. Uber “has sold its self-driving car division to Aurora Innovation and has taken a stake in the startup as it looks to pivot away from creating its own autonomous vehicles and focus on profitability following a year of being decimated by the pandemic,” reports The Street.


QUICK HITS

  • Why Thomas Massie is wrong about the federal marijuana legalization bill.
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Goya CEO Names AOC “Employee Of The Month” After Boycott Resulted In Soaring Sales

Goya CEO Names AOC “Employee Of The Month” After Boycott Resulted In Soaring Sales

Tyler Durden

Tue, 12/08/2020 – 09:36

In what has turned out to be a spectacular backfire, Goya Foods and president CEO Bob Unanue revealed that progressive icon Rep. Alexandria Ocasio-Cortez, a New York Democrat, has been named “Employee of the Month” because sales erupted after calls for a boycott. 

Unanue accepted an invitation in July to the White House by President Trump to promote a program directed at assisting the Hispanic American community. Accepting the invitation was risky enough for the CEO as he went one step further and praised the president: 

“We are all truly blessed … to have a leader like President Trump who is a builder,” Unanue said alongside Trump at the Rose Garden.

“That is what my grandfather did. He came to this country to build, to grow, to prosper. We have an incredible builder … and we pray.”

Liberals went bonkers after Unanue’s comments about the president. Social justice warriors took to social media and called for Goya’s boycott.

“Oh look, it’s the sound of me Googling ‘how to make your own Adobo,'” AOC tweeted, later sharing an alternative recipe to her followers. 

Almost immediately, social justice warriors started Twitter trends such as #BoycottGoya and #Goyaway that were trending topics for days. 

But a mob of social justice warriors to crush Goya began to backfire when radio host Mike Opelka began encouraging people on Twitter to purchase Goya products and donate them to their local food bank. 

He Tweeted: “My brother came up with a terrific idea, and I am encouraging all to join me in purchasing $10 worth of Goya Foods products and donating them to your local food bank. Let’s push a BUY-cott, not a boycott. Let’s show the #Goyaway people what compassion can do.”

Other conservative voices joined in:

In September, Unanue warned that “hatred and destruction” from the destruction of small businesses are driving Latino voters to the president. He spoke with JustTheNews’s John Solomon: 

The rise in support for Trump is due to “fatigue over all the destruction and hatred, tearing down businesses, by people — a lot of people that are from outside the community — because if you’re within the community, you’re building it, you don’t want to tear down what you just built,” Unanue said.

“And this is organized. People coming in from the outside to destroy. And so you know, we have two paths to take: Love and build, hate and destroy. We need to take the path of loving and building. And that’s why we’re looking at prosperity. How do we get our country back on our feet, and prosper in all aspects. So let’s love. Let’s build.”

Appearing on The Michael Beery Show on Monday, Unamue said AOC “was actually our employee of the month.” Some of the transcript of the interview is provided via The Daily Wire.

When you see the radical plans like the Green New Deal, when you hear politicians like AOC spouting these things off, agriculture is a major employer in this country but it’s also a major consumer of energy, as you noted earlier. It’s an intensive process for labor and energy. And they are talking about things that would drive the cost of energy through the roof in some cases making it prohibitive for marginal players. How much does that concern you and how much do you feel the need to step up and say, “Hey, guys, you want me to lay off these thousands of employees because that’s what would have to happen?”

Unanue replied:

You know, communism works until you run out of other people’s money to spend. We’re not going to be able to do that. It’s interesting that AOC was one of the first people to step in line to boycott Goya; go against her own people, as supposedly a Puerto Rican woman, to go against people of her own Latin culture. She’s naïve. To some extent I can understand AOC; she’s young; she’s naïve; she doesn’t get it. But you’ve got someone like (Bernie) Sanders, who’s older than us, older than me, and he still doesn’t get it.

“We still have to chat with AOC; I love her,” Unanue continued. “She was actually our Employee of the Month; I don’t know if you know about this, but when she boycotted us, our sales actually increased 1,000%. So we gave her an honorary — we never were able to hand it to her but she got Employee of the Month for bringing attention to GOYA and our adobo. Actually our sales of adobo did very well after she said ‘Make your own Adobo.'”

Berry wondered, “Was it P.T. Barnum who said, ‘Say what you want just spell my name right. All publicity is good publicity.”

Unanue replied, “She’s our hero. She helped boost sales tremendously.”

Berry asked, “I don’t know, I’m sure you know your demographics better than anyone, but I would be interested to know how many samplers you achieved after that because I suspect a lot of people went to the grocery store and said for the very first time, ‘Can you tell me where I can find a can of Goya?’ and bought a cart full of ’em that had never bought your products and some of that residual stays?”

Unanue answered, “What happened was we reached so many new people at the same time we maintained our base…

Full Interview Here

Listen to “Bob Unanue” on Spreaker.

Buying Goya beans became a political statement when the president tweeted: “I LOVE @GoyaFoods!” 

Ivanka Trump also posted an image of herself on Twitter, holding a can of Goya beans. 

It’s great to see a corporate leader like the Goya CEO standing up to social justice warriors and poking fun at their failed attempt to crush his company. 

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Universal Student Debt Forgiveness Is Regressive, Say Economists

polspphotos661265

Wiping out student loan debt for American college graduates would benefit the wealthy much more than it benefits less privileged students, according to a new working paper from the National Bureau of Economic Research. “Blacks and Hispanics would also benefit substantially less than balances suggest,” the authors say.

In the paper, titled “The Distributional Effects of Student Loan Forgiveness,” economists Sylvain Catherine and Constantine Yannelis conclude that universal student loan “forgiveness would benefit the top decile as much as the bottom three deciles combined.”

Not all student-loan-forgiveness schemes would have the same effects, they note:

There are a number of ways in which debt can be discharged, with important distributional implications. For example, forgiveness can be universal, capped or targeted to specific borrowers. These debt cancellation policies can benefit different socioeconomic and ethnic groups. This paper explores their distributional impacts. We find that the benefits of universal debt forgiveness policies largely accrue to high-income borrowers, while forgiveness through expanding income-contingent loan plans instead favors middle-income borrowers.

Income-contingent payment plans and loan forgiveness schemes already exist in the U.S.  Increasing enrollment in such plans “or increasing these plans’ generosity is another option for targeted debt forgiveness,” and one that would actually benefit middle-income debtors more than their wealth counterparts, the authors suggest.

But full or partial loan forgiveness regardless of income and loan size would be “highly regressive, with the vast majority of benefits accruing to high-income individuals,” they conclude.

Reason‘s Mike Riggs offers some better ideas for student loan reform here.


FREE MINDS

“It is possible for a person—or at least their views—to be both loud and silenced,” suggests Tom Chivers at UnHerd:


FREE MARKETS

Uber is abandoning self-driving cars. Uber “has sold its self-driving car division to Aurora Innovation and has taken a stake in the startup as it looks to pivot away from creating its own autonomous vehicles and focus on profitability following a year of being decimated by the pandemic,” reports The Street.


QUICK HITS

  • Why Thomas Massie is wrong about the federal marijuana legalization bill.
  • On free speech and Section 230, outgoing FCC chairman Ajit Pai says he is “pessimistic about where this goes in the future.”
  • L.A.’s new district attorney is making some much-needed changes:

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A Point System for the Vaccine Line

The priority order for scarce Covid-19 vaccines has received considerable debate. Should the elderly be ahead of essential workers? Where do teachers stand in line? What doesn’t seem to receive much attention is the basic model for a priority system. The assumption is that there will be a line. First will be the group with the highest-priority characteristic, then those with the next-highest priority characteristic, and so on.

An oddity of this approach is that a member of two high-priority groups receives the vaccine no earlier than a member of the higher priority of these groups. The current priority list has health care workers at the front, then nursing homes, then first responders, then those with health risks, then elderly, then essential workers, then teachers, and so on. But what about a teacher who is elderly and faces serious health risks? There might be an argument that this person should be ahead of first responders—or at the very least, at the front of the line among the many who have health risks. But the proposed system treats each person based on the single characteristic that moves the person as close to the front of the line as possible.

It is a univariate system for a multivariate world. Forget about interaction effects. But couldn’t we even consider a points system?

Each characteristic in such a system would correspond to some specified number of points, and the points would then be summed to produce a total score, which in turn would determine someone’s place in line. Our elderly teacher with health risks would be closer to the front of the line than someone with just one or two of these three characteristics. A points system also could allow for more distinctions within each category. Instead of treating all elderly as an undifferentiated group, the system could assign different points values for different ages. A 64-year-old would not be treated exactly the same as a 30-year-old, and a person who is extremely obese might be treated differently from one who is just marginally obese. People with some health conditions are more vulnerable than others, and that should be reflected in their place in line.

A point system would yield a more granular ranking. A priority system that may place many millions of people at the same point in line leaves unanswered the question of how health care providers should prioritize within each group. Telling ten million people who want the vaccine that it’s their turn when there is only enough vaccine for half of them will predictably result in an avalanche of phone calls, attempts at influence, and anger. There will inevitably be some uncertainty about just when it’s anyone’s turn, given the lack of clarity about how many people exist in each category and how many will want to be vaccinated, but a points system would at least give local vaccine providers a metric that orders patients.

So far as I have found, no one has recommended a points system. Why?

Twenty-dollar bill. Maybe this is the proverbial $20 bill on the sidewalk, and I am the first to invent the idea of a points system for vaccine priority. Much as I would like to pat myself on the back, I don’t think so. There are many rankings that do rely on points systems of one kind or another. (Consider, for example, U.S. News and World Report rankings.) The officials creating the priority system might not have discussed a points system, maybe even didn’t consciously think about it, but that just invites the next question of why they implicitly rejected it.

Complexity for patients. The most obvious answer is that a points system would be too complex for people. But it’s not hard to add up a few numbers. Online calculators could make this easy, and health-care providers could tell people without online access their scores. This isn’t nearly as complicated as filing taxes.

Complexity for committees. The priority list is the result of a complex negotiation involving the CDC, the Advisory Committee on Immunization Practices, and the Administration, and no doubt others. It may be easier to develop a simple framework than a more complex one. The last thing we’d want is for the vaccine to be delayed because we can’t agree on how to allocate points. And so the decision-makers assign themselves a simpler task. This seems more plausible, but it’s not entirely satisfying. Legislative bodies, after all, often produce rules far more complex than a simple points system. Moreover, a points system creates the possibility of compromise. One reason that juries hang on a criminal sentence or damages much less often than on guilt or liability is that compromises are easier.

Complexity for vaccine providers. Vaccine providers may need to perform at least some minimal verification of patients’ entitlement to receive a vaccine at a particular time. For example, they might ask for a paystub to prove that a patient is an essential worker. With just one group at a time, there is only one piece of information that they will need to verify. With a multivariate points system, they may need to verify a patient’s ranking in each category. But this is not an elaborate system of adjudication. Much of the verification is likely to be cursory anyway, and some variables (weight and age) are easily (if occasionally imperfectly) verified.

Legitimacy. A points system cries out for some underlying methodology. That requires a theory of the relative importance of different goals, such as vaccinating those who have the greatest risk of dying if they contract Covid, vaccinating those who are most likely to spread Covid, encouraging economic activity, and compensating for social disparities. Any priority system reflects some weighting of these goals, but less transparently. It’s easier to say “we’re letting the elderly go ahead of essential workers” than to say that someone’s status as elderly counts 1.3 times as much as someone’s status as essential. Why that number? But pseudoscientific precision might lend more apparent legitimacy to the project rather than less. Moreover, a simple line is also arbitrary. It may not feature arbitrary numbers, but it will include somewhat arbitrary decisions about which group is first.

Irrelevance. It’s not just that we don’t have a good political methodology for weighting different goals. We have no shared comprehensive economic or moral theory that even in principle would allow us to make the relevant trade-offs. The moral dilemmas are legion. Is an elderly life worth less than a younger life, either because the elderly have fewer years remaining or because they are less likely to be working? Should groups that have acted relatively irresponsibly (say, young adults) receive the benefit of the vaccine early to protect others? What is the appropriate trade-off between economic activity and life? Add to these a myriad of scientific and economic questions, and serious doubts about our ability to get the priorities right arise. That doesn’t mean we should give up altogether, the theory goes, but there’s no point in worrying about second-order issues when we are probably wrong on some of the biggest questions. But here the second-order issues are easier than the first-order issues. We are pretty sure that age is relevant and so is being an essential worker. Given these very mild assumptions, shouldn’t an elderly essential worker be ahead of someone in just one of those two categories? Surely, that will produce at least some benefit in health or wealth.

Federalism. The federal priority list is just a recommendation to state officials. Presumably, state officials may change priorities or develop subpriorities, and these will be akin to a points system. But if so, the recommendations really ought to be at a higher level of generality, indicating the characteristics that should generally move people up in line and perhaps their relative importance. A points system is not an elaboration of but a change from the recommendations being developed. If the ultimate goal is for the states to create or consider points systems, the recommendations should say so. Many states are likely to follow the federal guidance because it allows them to avoid making hard choices that are sure to anger some constituents. Thus, the federal guidance either should make clear that states have more decisions should make or should provide good default rules.

Most people, I suspect, will prefer the existing approach to a points system. They value simplicity and fear technocracy. In my judgment, if the government is going to make value choices, it ought not make them crudely. 64-year-olds and 30-year-olds should not be at the same place in line. One might reasonably question whether the government should be setting priorities at all, and perhaps the crudeness of the government’s approach is all the more support for private ordering. But vaccines have positive externalities, so there is a case for at least some government involvement. And if the government is going to set priorities, it ought to do it right.

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