MoreRSS

site iconMarginal RevolutionModify

Blog of Tyler Cowen and Alex Tabarrok, both of whom teach at George Mason University.
Please copy the RSS to your reader, or quickly subscribe to:

Inoreader Feedly Follow Feedbin Local Reader

Rss preview of Blog of Marginal Revolution

U.S. interventions in the New World, with leader removal

2026-01-05 01:59:22

I can think of a few.  I am not thinking of ongoing struggles, such as the funding of opposition to the Sandinistas, rather I wish to focus on cases where the key leaders actually were removed.  After all, we know that is the case in Venezuela today.  Maybe these efforts were rights violations, or unconstitutional, and yes that matters.  But how did they fare in utilitarian terms?

Puerto Rico: 1898, a big success.

Mexican-American War: Removed Mexican leaders from what today is the American Southwest.  Big utilitarian success, including for the many Mexicans who live there now.

Chile, and the coup against Allende: A utilitarian success, Chile is one of the wealthiest places in Latin America and a stable democracy today.

Grenada: Under Reagan, better than Marxism, not a huge success, but certainly an improvement.

Panama, under the first Bush, or for that matter much earlier to get the Canal built: Both times a big success.

Haiti, under Clinton, and also 1915-1934: Unclear what the counterfactuals should be, still this case has to be considered a terrible failure.

Cuba, 1906-1909: Unclear?  Nor do I know enough to assess the counterfactual.

Dominican Republic, 1961 and Trujillo.  A success, as today the DR is one of the wealthiest countries in Latin America.  But the positive developments took a long time.

I do not know enough about the U.S. occupation of the DR 1916-1924 to judge that instance.  But not an obvious success?

Can we count the American Revolution itself?  The Civil War?  Both I would say were successes.

We played partial but perhaps non-decisive roles in regime changes in Ecuador 1963 and Brazil 1964, in any case I consider those results to be unclear.  Maybe Nicaragua 1909-1933 counts here as well.

So the utilitarian in you, at least, should be happy about Venezuela, whether or not you should be happy on net.

You should note two things.  First, the Latin interventions on the whole have gone much better than the Middle East interventions.  Perhaps that is because the region has stronger ties to democracy, and also is closer to the United States, both geographically and culturally.  Second, looking only at the successes, often they took a long time and/or were not exactly the exact kinds of successes the intervenors may have sought.

Absher, Grier, and Grier consider CIA activism in Latin America and find poor results.  I think much of that is springing from cases where we failed to remove the actual leaders, such as Nicaragua and Cuba.  Simply funding a conflict does seem to yield poor returns.

The post U.S. interventions in the New World, with leader removal appeared first on Marginal REVOLUTION.

Stories Beyond Demographics

2026-01-04 20:17:21

The representation theory of stories, where the protagonist must mirror my gender, race, or sexuality for me to find myself in the story, offers a cramped view of what fiction can do and a shallow account of how it actually works. Stories succeed not through mirroring but by revealing human patterns that cut across identity. Archetypes like Hero, Caregiver, Explorer, and Artist, and structures like Tragedy, Romance, and Quest are available to everyone. That is why a Japanese salaryman can love Star Wars despite never having been to space or met a Wookie and why an American teenager can recognize herself in a nineteenth-century Russian novel.

Tom Bogle makes this point well in a post on Facebook:

I have no issue with people wanting representation of historically marginalized people in stories. I understand that people want to “see themselves” in the story.

But it is more important to see the stories in ourselves than to see ourselves in the stories.

When we focus on the representation model, we recreate a character to be an outward representation of physical traits. Then the internal character traits of that individual become associated with the outward physical appearance of the character and we pigeonhole ourselves into thinking that we are supposed to relate only to the character that looks like us. Movies and TV shows have adopted the Homer Simpson model of the aloof, detached, and even imbecilic father, and I, as a middle-aged cis het white guy with seven kids could easily fall into the trap of thinking that is the only character to whom I can relate. It also forces us to change the stories and their underlying imagery in order to fit our own narrative preferences, which sort of undermines the purpose for retelling an old story in the first place.

The archetypal model, however, shifts our way of thinking. Instead of needing to adapt the story of Little Red-Cap (Red Riding Hood) to my own social and cultural norms so that I can see myself in the story, I am tasked with seeing the story play out in myself. How am I Riding Hood? How am I the Wolf? How does the grandmother figure appear in me from time to time? Who has been the Woodsman in my life? How have I been the Woodsman to myself or others? Even the themes of the story must be applied to my patterns of behavior or belief systems, not simply the characters. This model also enables us to retain the integrity of the versions of these stories that have withstood the test of time.

So if your goal is actually to affect real social change through stories, I would encourage you to consider how the archetypal approach may actually be more effective at accomplishing your aims than the representational approach alone (as they are not necessarily in conflict with one another).

The post Stories Beyond Demographics appeared first on Marginal REVOLUTION.

Adam Smith markets in everything

2026-01-04 15:43:23

Gustavo Dudamel — the Oscar L. Tang & H.M. Agnes Hsu-Tang Music & Artistic Director Designate — conducts the World Premiere of the wealth of nations, a highly anticipated commission from the Pulitzer Prize–winning composer David Lang. Inspired by economist Adam Smith’s 1776 magnum opus, Lang dramatizes this foundational work about economics as inspired by Handel’s treatment of Biblical texts in Messiah. “I want this work to be enjoyable and thought-provoking,” says Lang, “encouraging audiences to consider what we truly value.”

Here is the link.

The post Adam Smith markets in everything appeared first on Marginal REVOLUTION.

What I’ve been reading

2026-01-04 13:22:11

Michael Wachtel, Viacheslav Ivanov: A Symbolist Life.  615 pp. of what Russian/Soviet cultural life was like in the early 20th century.  Focuses on broader strands, rather than just the most famous names.  Ivanov today is largely forgotten, but he was at the time arguably the most influential figure of that period.  “They were mostly a bunch of nuts” is one of my takeaways.

Herbert Breslin and Anne Midgette, The King and I: The Uncensored Tale of Luciano Pavarotti’s Rise to Fame by his Manager, Friend, and Sometime Adversary.  Usually people tell me books like this are “delightful,” and then they bore me to tears.  This one actually is fantastically fun.  “To tell the truth, though, Luciano didn’t care about the money at the beginning.  In the early years, he never asked me how much he was going to get paid for a recital.  He had only one condition: it had to be sold out.”

Alan Manning, Why Immigration Policy is Hard and How to Make it Better is a thoughtful and balanced look at its topic, recommended.

Alex Mayyasi, Planet Money: A Guide to the Economic Forces that Shape Your Life is a useful introduction to economic concepts.

Nicolas Niarchos, The Elements of Power: A Story of War, Technology, and the Dirtiest Supply Chain on Earth is a good treatment of minerals issues as they relate to the Congo today.  It will not make you more bullish on Rwanda, or for that matter the Congo.

Eve MacDonald, Carthage: A New History covers what we do know about those people.  That isn’t much at the conceptual level, and I wonder why archaeology has not taught us more there.

I expect I will very much agree with Brink Lindsey, The Permanent Problem: The Uncertain Transition from Mass Plenty to Mass Flourishing.

The post What I’ve been reading appeared first on Marginal REVOLUTION.

Why Some US Indian Reservations Prosper While Others Struggle

2026-01-03 20:18:21

Our colleague Thomas Stratmann writes about the political economy of Indian reservations in his excellent Substack Rules and Results.

Across 123 tribal nations in the lower 48 states, median household income for Native American residents ranges from roughly $20,000 to over $130,000—a sixfold difference. Some reservations have household incomes comparable to middle-class America. Others face persistent poverty.

Why?

The common assumption: casino revenue. The data show otherwise. Gaming, natural resources, and location explain some variation. But they don’t explain most of it. What does? Institutional quality.

The Reservation Economic Freedom Index 2.0 measures how property rights, regulatory clarity, governance, and economic freedom vary across tribal nations. The correlation with prosperity is clear, consistent, and statistically significant. A 1-point improvement in REFI—on a 0-to-13 scale—correlates with approximately $1,800 higher median household income. A 10-point improvement? Nearly $18,000 more per household.

Scatter plot showing positive correlation between Reservation Economic Freedom Index scores (0-13 scale) and median Native American household income. Each blue dot represents one reservation. Red trend line shows approximately $1,783 higher income per REFI point. Chart shows 120 reservations after excluding 3 outliers. Income ranges from $20,000 to $100,000.

Many low-REFI features aren’t tribal choices—they’re federal impositions. Trust status prevents land from being used as collateral. Overlapping federal-state-tribal jurisdiction creates regulatory uncertainty. BIA approval requirements add months or years to routine transactions. Complex jurisdictional frameworks can deter investment when the rules governing business activity, dispute resolution, and enforcement remain unclear.

This is an important research program. In addition to potentially improving the lives of native Americans, the 123 tribal nations are a new and interesting dataset to study institutions.

See the post for more details amd discussion of causality. A longer paper is here.

The post Why Some US Indian Reservations Prosper While Others Struggle appeared first on Marginal REVOLUTION.