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the First Amendment and Bill of Rights—cornerstones of the American system of government—limit what laws Congress may pass and therefore what the majority may do. That is their whole point.

Clearly what we want is not unlimited majority rule, but liberal democracy: a majority vote, within the context of protections for fundamental rights. This is still “democracy” in the literal sense—rule by the people—but that rule is limited by liberal principles.

The usual case for liberal democracy is captured in a quote from 20th-century political philosopher Judith Shklar that has been making the rounds recently: “Liberalism is monogamously, faithfully, and permanently married to democracy—but it is a marriage of convenience.”

The idea is that it is impossible to maintain a liberal system—“liberal” in the political philosopher’s sense, meaning a free society—without representative government and other democratic institutions. But democracy is merely a means to an end. It is justified not by an imperative to manifest some kind of mystical collective will, but as a safeguard for individual liberty.

Both liberalism and democracy—as words and as ideas—have their roots in the classical world, and there are two stories from Ancient Greece and Rome that define their proper relationship.

These two stories sum up the promise and peril of rule by the people. The whole trick of liberal democracy is to create a system that will protect us from Tarquin, while protecting Socrates from us.

Yet I think we can encourage a little more love in the marriage between liberalism and democracy by finding some common ground in the basic principles behind them.

The principle behind representative government is the same as that underlying liberalism: the equal rights of individuals. Democracy is founded on the recognition that some men are not born with saddles on their backs, as Thomas Jefferson put it, while others are not born booted and spurred. If all men are created equal, with equal rights, they are entitled to an equal say over how they are governed and by whom.

The populist leader pretends to speak for the people and to champion their interests, but he always defines “the people” to mean his faction. They alone are the real Americans who represent the heartland. Everyone else doesn’t count: Their preferences are presumed to be manufactured and illegitimate—and their rights and interests do not have to be respected.

there is a deeper common value that bonds liberalism and democracy. In a free society, respect for the rights of others requires that you deal with them through bargaining and persuasion rather than coercion. Same for democracy.

A liberal democracy protects against democratic abuses of power through a system of checks and balances, in which some democratic institutions are given the power and incentive to limit other democratic institutions

The reward of a democratic system is not just that it limits the power of our leaders, but that it holds them to account for their mistakes and allows a country to reverse their errors.

Freedom of speech has been called the “first freedom,” but part of the point of protecting speech is to allow us to criticize our leaders so we can then vote them out. Historically, the vote is the first freedom and the origin of all the others

This is why it is so important to protect liberal democracy when any party threatens it and why voters are right to make this a higher priority than other, seemingly more immediate problems

Cambridge Students’ Union recently published a guide titled ‘How to spot Terf ideology’. It suggests that sex is neither natural nor binary, but rather a social construct and a ‘colonial fiction created to oppress trans people’

The guide goes on to claim, falsely, that ‘Terfs spend a lot of time working with the far-right.’  The Union’s Women’s Officer proudly announces in her manifesto that ‘Terfs aren’t welcome here’.

It is not uncommon for students to comb through a classmate’s social media and bully them in private messages. This can progress to more threatening behaviour. 

A gender-critical student at Cambridge was traumatised after her peers discovered an online article in which she expressed her views on sex. It cited her sexual assault as a reason for her reservations about allowing males into women’s spaces. For holding these views, she was publicly shamed and harassed. In the first year of what should have been a rewarding university experience, she became a pariah within her college

Helen Joyce, author of the best-selling book Trans: When Ideology Meets Reality, was recently invited to speak at Gonville and Caius College by Professor Arif Ahmed. This event sparked a furore. In an email to Caius students, the college’s Master and another academic described Joyce’s views as ‘hateful’ and wrote that: ‘Individuals should be able to speak freely within the law…However, on some issues which affect our community we cannot stay neutral’. Ahmed was blocked from using the college’s intranet to publicise the event.

Hundreds of students vehemently protested Joyce’s speech. Yet, in their report of the event, the student newspaper, Varsity muddled up what Joyce actually stood for. The paper suggested Joyce believes that ‘gender is not a social construct and is immutably linked to sex’, the very opposite of her thesis.

At one of this country’s most prestigious universities, women who hold perfectly reasonable views are terrorised into silence. Gender-critical students and academics are ostracised. A university that prides itself on academic rigour is letting down its students.

the major finding of the survey “is that democratic norm violations of the sort many Republicans ran on are an electoral loser.”

Republican candidates, Westwood added, “running on platforms that supported democratic norm violations were standing behind a policy that seems to only resonate with Trump and a small minority of Republican voters.

A publicly released post-election analysis by Neil Newhouse and Jim Hobart, partners at the Republican polling firm Public Opinion Strategies, found, for example, that a far higher percentage of Democrats, 81 percent, believe “Republicans represent a threat to democracy that, if not stopped, will destroy America as we know it,” than Republicans (69 percent) believe the same thing about Democrats

the election outcomes are consistent with the interpretation that the candidates most closely associated with Trump suffered a penalty. Voters rejected all the Trump-endorsed secretary of state nominees in important swing states. Republicans unexpectedly lost seats in districts where Republican incumbents who supported Trump’s impeachment had been denied renomination. Republicans closely linked to Trump lost elections in winnable swing states

Both Democrats and Republicans, Westwood said,overestimate the extent to which the other side supports democratic norm violations by up to five times. There is a real risk that damage to our country could occur not because of support for norm violations but as a pre-emptive strike based on the faulty assumption that the other side has abandoned democracy.

abortion, which worked to the advantage of Democrats, “was more of a factor than the pre-election polls indicated,” with almost as many voters, 31 percent, saying it was a high-priority issue as the 32 percent who identified rising prices and inflation, an issue that benefited Republicans

Almost identical percentages identified concern over democratic backsliding, at 25 percent, a pro-Democratic issue, as the 26 percent who identified jobs and the economy, a pro-Republican concern.

through 2020, a larger percentage of Republicans considered themselves “to be more a supporter of Donald Trump” than “a supporter of the Republican Party.” That came to an end in January 2021, and by this month, 67 percent said they were “more a supporter of the Republican Party,” more than double the 30 percent who said they were “more a supporter of Donald Trump.”

Crime, Greenberg wrote,was a top issue for many Democratic base voters. A quarter of Blacks and half of Hispanics and Asians voters trusted Republicans more than Democrats to address the issue. With Democrats trailing Republicans by 10 points on crime, Democrats have a lot of work to do.There is another word of caution for Democrats. The party’s single most important achievement in 2022 was to maintain control of the Senate, preventing Republicans from blocking Biden’s judicial and executive branch appointments.

n 2024, however, 23 seats in the Democratic caucus will be up for grabs — including two independent seats (Angus King in Maine and Bernie Sanders in Vermont) — making it that much harder for Democrats to keep their thin majority. Eight of these Democratic seats are in purple or red states (Montana and West Virginia, for example), offering multiple opportunities to the Republican Party

In contrast, all 10 of the Republican-held seats up for election in 2024 are in solidly red states.

But to understand why Republicans have died at higher rates, you can’t look at vaccine status alone. Congressional districts controlled by a trifecta of Republican leaders—state governor, Senate, and House—had an 11 percent higher death rate, according to the Lancet study. A likely explanation, the authors write, could be that in the post-vaccine era, those leaders chose policies and conveyed public-health messages that made their constituents more likely to die. Although we still can’t say these decisions led to higher death rates, the association alone is jarring.

One of the most compelling studies comes from researchers at Yale, who published their findings as a working paper in November. They link political party and excess-death rate—the percent increase in deaths above pre-COVID levels—among those registered as either Democrats or Republicans, providing a more granular view. They chose to analyze data from Florida and Ohio from before and after vaccines were available. Looking at the period before the vaccine,  researchers found a 1.6 percentage-point difference in excess death rate among Republicans and Democrats, with a higher rate among Republicans. But after vaccines became available, that gap widened dramatically to 10.4 percentage points, again with a higher Republican excess death rate. “When we compare individuals who are of the same age, who live in the same county in the same month of the pandemic, there are differences correlated with your political-party affiliation that emerge after vaccines are available,”

What’s most concerning about all of this is that partisan disparities in death rates were also apparent before COVID. People living in Republican jurisdictions have been at a health disadvantage for more than 20 years. From 2001 to 2019, the death rate in Democratic counties decreased by 22 percent, according to a recent study; in Republican counties, it declined by only 11 percent. In the same time period, the political gap in death rates increased sixfold.

over the decades, state policy decisions on health issues such as Medicaid, gun legislation, tobacco taxes, and, indeed, vaccines have likely had a stronger impact on state health trajectories than other factors

the long-term decline of health in red states indicates that there is an ongoing problem at a high level in Republican-led places, and that something has gone awry. “If you happen to live in certain states, your chances for living a long life are going to be much higher than if you’re an American living in a different state,”

o acknowledge how many Republicans didn’t have to die would mean giving credence to scientific and medical expertise. So long as America remains locked in a poisonous partisan battle in which science is wrongly dismissed as being associated with the left, the death toll will only rise.

Yet would people vote for a politician honest enough to say these things? No. We force them to lie then complain they’re liars. It is we who are the hypocrites. Whence comes this persistent, subterranean sense of British entitlement, even as the economy on which it depends begins to sink?

The elastication of any link between what we demand and our ability to afford it began long ago but it has been sharply accelerated by the Covid-19 lockdowns: by the idea we could retreat into our living rooms and expect public money to come feathering electronically down into our bank accounts like falling leaves from the Treasury’s magic money tree, until it was safe to go back to work. To this day many haven’t even bothered to do that, as early pensions replace furlough.

a “builder class”—a brains trust of youngish idealists, which includes Patrick Collison, co-founder of Stripe, a payments firm valued at $74bn, and other (mostly white and male) techies, who are posing questions that go far beyond the usual interests of Silicon Valley’s titans. They include the future of man and machine, the constraints on economic growth, and the nature of government.

They share other similarities. Business provided them with their clout, but doesn’t seem to satisfy their ambition

The number of techno-billionaires in America (Mr Collison included) has more than doubled in a decade.

ome of them, like the Medicis in medieval Florence, are keen to use their money to bankroll the intellectual ferment

The other is Paul Graham, co-founder of Y Combinator, a startup accelerator, whose essays on everything from cities to politics are considered required reading on tech campuses.

Mr Altman puts it more optimistically: “The iPhone and cloud computing enabled a Cambrian explosion of new technology. Some things went right and some went wrong. But one thing that went weirdly right is a lot of people got rich and said ‘OK, now what?’”

A belief that with money and brains they can reboot social progress is the essence of this new mindset, making it resolutely upbeat

The question is: are the rest of them further evidence of the tech industry’s hubristic decadence? Or do they reflect the start of a welcome capacity for renewal?

Two well-known entrepreneurs from that era provided the intellectual seed capital for some of today’s techno nerds.

Mr Thiel, a would-be libertarian philosopher and investor

This cohort of eggheads starts from common ground: frustration with what they see as sluggish progress in the world around them.

Yet the impact could ultimately be positive. Frustrations with a sluggish society have encouraged them to put their money and brains to work on problems from science funding and the redistribution of wealth to entirely new universities. Their exaltation of science may encourage a greater focus on hard tech

the rationalist movement has hit the mainstream. The result is a fascination with big ideas that its advocates believe goes beyond simply rose-tinted tech utopianism

A burgeoning example of this is “progress studies”, a movement that Mr Collison and Tyler Cowen, an economist and seer of the tech set, advocated for in an article in the Atlantic in 2019

Progress, they think, is a combination of economic, technological and cultural advancement—and deserves its own field of study

There are other examples of this expansive worldview. In an essay in 2021 Mr Altman set out a vision that he called “Moore’s Law for Everything”, based on similar logic to the semiconductor revolution. In it, he predicted that smart machines, building ever smarter replacements, would in the coming decades outcompete humans for work. This would create phenomenal wealth for some, obliterate wages for others, and require a vast overhaul of taxation and redistribution

His two bets, on OpenAI and nuclear fusion, have become fashionable of late—the former’s chatbot, ChatGPT, is all the rage. He has invested $375m in Helion, a company that aims to build a fusion reactor.

Mr Lonsdale, who shares a libertarian streak with Mr Thiel, has focused attention on trying to fix the shortcomings of society and government. In an essay this year called “In Defence of Us”, he argues against “historical nihilism”, or an excessive focus on the failures of the West.

With a soft spot for Roman philosophy, he has created the Cicero Institute in Austin that aims to inject free-market principles such as competition and transparency into public policy.

He is also bringing the startup culture to academia, backing a new place of learning called the University of Austin, which emphasises free speech.

All three have business ties to their mentors. As a teen, Mr Altman was part of the first cohort of founders in Mr Graham’s Y Combinator, which went on to back successes such as Airbnb and Dropbox. In 2014 he replaced him as its president, and for a while counted Mr Thiel as a partner (Mr Altman keeps an original manuscript of Mr Thiel’s book “Zero to One” in his library). Mr Thiel was also an early backer of Stripe, founded by Mr Collison and his brother, John. Mr Graham saw promise in Patrick Collison while the latter was still at school. He was soon invited to join Y Combinator. Mr Graham remains a fan: “If you dropped Patrick on a desert island, he would figure out how to reproduce the Industrial Revolution,”

While at university, Mr Lonsdale edited the Stanford Review, a contrarian publication co-founded by Mr Thiel. He went on to work for his mentor and the two men eventually helped found Palantir. He still calls Mr Thiel “a genius”—though he claims these days to be less “cynical” than his guru.

“The tech industry has always told these grand stories about itself,” says Adrian Daub of Stanford University and author of the book, “What Tech Calls Thinking”. Mr Daub sees it as a way of convincing recruits and investors to bet on their risky projects. “It’s incredibly convenient for their business models.”

In the 2000s Mr Thiel supported the emergence of a small community of online bloggers, self-named the “rationalists”, who were focused on removing cognitive biases from thinking (Mr Thiel has since distanced himself). That intellectual heritage dates even further back, to “cypherpunks”, who noodled about cryptography, as well as “extropians”, who believed in improving the human condition through life extensions

Silicon Valley has shown an uncanny ability to reinvent itself in the past.

That has made him the most popular influencer among American Gen-Zers, according to a twice-yearly survey of 14,500 of the country’s teenage boys and girls by Piper Sandler, a finance company that researches consumer data. Teachers have reported boys as young as 11 praising and emulating him.

it is not just that Europeans spend a few extra weeks on the beach. The typical working day in Britain, France and Germany is half an hour shorter than in America, according to the International Labour Organisation.

which is the better way of living—with more money or more free time? The reality is that it is difficult for people to choose

Those in America work according to American schedules; those in Europe conform to European norms.

the more fruitful question is why Americans put in longer hours

The answer leads to a curious new observation: that remote work is making America’s office drones a little more European, albeit with a puritanical twist.

A first guess suggests that culture might account for the variation in work hours. Maybe Europeans enjoy their leisure more. They are spoilt for choice about how to spend time off

As for Americans, surveys indicate that they view hard work as intrinsically worthwhile. “Rugged individualism” is, after all, what built the country.

the difficulty with chalking up the difference to culture is that until the early 1970s many Europeans worked more

American working hours are basically the same now as back then. The big change is that Europeans now toil less. Hours are down a whopping 30% in Germany over the past half-century. Something beyond culture—a slow-moving, ill-defined variable—is at play.

Edward Prescott, an American economist, came to a provocative conclusion, arguing that the key was taxation

Until the early 1970s tax levels were similar in America and Europe, and so were hours worked. By the early 1990s Europe’s taxes had become more burdensome and, in Prescott’s view, its employees less motivated

A substantial gap persists today: American tax revenue is 28% of GDP, compared with 40% or so in Europe.

A recent study by Jósef Sigurdsson of Stockholm University examined how Icelandic workers responded to a one-year income-tax holiday in 1987, when the country overhauled its tax system. Although people with more flexibility—especially younger ones in part-time jobs—did indeed put in more hours, the overall increase in work was modest relative to that implied by Prescott’s model.

Regulation seems to matter more.

European rules give workers power, from generous parental-leave policies to stricter laws on firing staff. Many European countries try to put caps on working tim

most research agrees that they have reduced work hours.

Another important relationship is that, as people get richer, they typically want to work less

A recent paper by the IMF shows a remarkably strong link between GDP per person and hours worked in Europe. People in richer countries, such as the Netherlands, generally work less than those in poorer countries, such as Bulgaria.

Americans are wealthier than most Europeans, so why do they still work more?

Perhaps leisure is a collective-action problem. Americans may want to ask their bosses for longer holidays but are worried about being seen as slackers

A paper in 2005 by Alberto Alesina of Harvard University and colleagues argued that Europe’s stronger unions had in effect solved this collective-action problem by fighting for paid vacations, which ended up enshrined in law.

Europe’s well-regulated leisure time may then beget more leisure because it is more socially acceptable, and the market responds by supplying more good ways not to work. It is a virtuous cycle of lovely cafés.

One fascinating new development is a discrepancy in the rise of remote work

In 2023 the Global Survey of Working Arrangements found that full-time employees in America work from home 1.4 days a week, while those in Europe do so for 0.8 days

a striking result: Europeans and Americans now spend almost exactly the same amount of time in the office, with 1,320 hours a year for the former and 1,304 for the latter.

In other words, the extra 15% of work done by Americans annually is now from the comfort of their own homes—or occasionally on the beach, perhaps even one in Europe. Americans do still work harder, but rather more enjoyably than in the past

guided by a fascination with the wayward paths to fame, he half-unwittingly sows doubt about the justice of the American rise to artistic leadership in the postwar era. In his erudite account, artistic success owes little to vision and purpose, more to self-promotion, but most to unanticipated adoption by bigger systems with other aims, principally oriented toward money, political advantage, or commercial churn

For the greatness and inevitability of artistic consecration, Menand substitutes the arbitrary confluences of forces at any given moment.

The curriculum runs chapter by chapter through George Kennan, George Orwell, Jean-Paul Sartre, Hannah Arendt, Jackson Pollock, Lionel Trilling, Allen Ginsberg, Claude Lévi-Strauss, Robert Rauschenberg and John Cage, Elvis and the Beatles, Isaiah Berlin, James Baldwin, Jack Kerouac, Andy Warhol, Susan Sontag, and Pauline Kael. Each biography opens a door to a school or trend of work

Menand’s is not a “great man” view of history, because no one seems particularly great. One gets a feeling for Sartre as a person, a limited knowledge of how Sartre made Being and Nothingness, and a vivid sense of how the book made Sartre a celebrity. Then one learns how a troupe of others came along and rode his success like a sled.

Menand zooms in and out between individual egomaniacs and the milieus that facilitated their ascent and profited from their publicity.

group biographies, in miniature, of the existentialists, the Beats, the action painters, the Black Mountain School, the British Invasion, the pop artists, and many coteries more—are enchanting singly but demoralizing as they pile up

All of these enterprises look like hives of social insects, not selfless quests for truth or beauty. Menand is a world-class entomologist: He can name every indistinguishable drone, knows who had an oversize mandible, who lost a leg, who carried the best crumbs.

From this vantage, the monuments really are just anthills.

Menand is truly one of the great explainers. He quotes approvingly a lesson taken by Lionel Trilling from his editor Elliot Cohen: “No idea was so difficult and complex but that it could be expressed in a way that would make it understood by anyone to whom it might conceivably be of interest.”

The underlying theory of the book rests on a picture of what makes for “cultural winners,” works and ideas that Menand defines as

He is accurate, he is insightful, and he is not a dumber-downer

Menand’s account of each is an abbreviated tour de force. His explanations work at all levels: interpretation for scholars, review for general readers, introductions for neophytes. Where another writer would take 20 pages to tell us why someone or something mattered historically, Menand does it in two.

goods or styles that maintain market share through “generational” taste shifts—that is, through all the “the king is dead; long live the king” moments that mark the phases of cultural history for people living through it.

Menand’s recountings are less concerned with the changing meanings of individual works than with their successive adoptions and co-optations, in defiance of depth and meaning. It is a process of “winning” often based on cults of personality, indifference to complex origins, and the fortune or misfortune of timing

Menand is notably excellent on how commercial, regulatory, and technological changes determined which kinds of artwork made it to the public. His analysis helps demystify trends in commercial forms like film and pop music, especially when they otherwise seemed to run against the grain of pure profit

Often Menand’s point seems to be that the culture’s reigning talkers and salespeople and debaters need to conjure figures to venerate and attack (in ceaseless alternation) for short-range purposes of attention and competition. Any given work—1984, say, or Bonnie and Clyde—isn’t much of anything until it becomes a counter in other people’s games.

The central question of this period in culture might be whether U.S. artists lived up to expectations

In 1945, Europe was in ruins. America was rich and productive and dictated the terms of the postwar economic and political order. Certainly the U.S. had the power to pretend to cultural glory, too. But was it a pretense, or did Americans really continue and exceed the prewar triumphs of European modernism?

Most histories of the arts after 1945 assume that the greatest American successes deserved their fame.

The thrust of many of Menand’s retellings is that “in the business of cultural exchange, misprision is often the key to transmission.” Fame comes through misreadings, fantasies, unintended resonances, charisma, and publicity.

Menand’s book bequeaths the sense that the last laugh may truly have been on the self-seriousness of a whole historical period, one that treated its most publicized and successful arts figures far too generously, giving them too much credit for depth and vision, while missing the cynical forces by which they’d been buoyed up and marketed

“Foreign film” in America in the ’50s and ’60s—when independent art cinemas emerged, showing imports such as work by Ingmar Bergman and the French New Wave—proves to have been energized by a successful federal-government antitrust action against the monopolistic Hollywood studios

The idea of a “culture industry”

is used unironically by Menand to name the vastly scaled-up production and consumption of all artistic experience. “The culture industries, as they expanded, absorbed and commercialized independent and offbeat culture-makers, and the university, as it expanded, swallowed up the worlds of creative writing and dissident political opinion.”

With his eye on this process, we miss out on artists and thinkers who dug deep and stayed home, who produced as hermits or eccentrics or introverted students of their art

Where did rock ’n’ roll come from?” Menand wonders. He answers that it was “the by-product of a number of unrelated developments in the American music business” that redirected sales to teenagers, and also the result of new radio-station competition, the partial racial desegregation of the music charts, and the arrival of 200-disc jukeboxes

I can imagine The Free World leaving my hypothetical college senior, denizen of the bleak attention economy of the 21st century, feeling liberated to discover that culture was no better—no more committed to a quest for what is true, noble, lasting, and beautiful—in the world of the Baby Boomers and beaming grandparents.

The book is so masterful, and exhibits such brilliant writing and exhaustive research, that I wonder whether Menand could truly have intended where his history of the postwar era landed me. I learned so much, and ended up caring so much les

he carefully links the ascendancy of these artists to a conveniently timed revolution in their industry. “They needed critics … who could understand and write about their work, dealers who would show it, and curators and collectors who would buy it.” Put simply, they needed an art world that would cater to their wants. America provided one.

The New Yorker, a publication, Menand notes, that catered to well-educated, culturally insecure folk “eager not to like the wrong things, or to like the right things for the wrong reasons.”

But the legal wrangling to just get the courts to treat crypto as a set of speculative instruments regulated under securities law made the law moot

In May of 2022, a year after Gensler began trying to do something about Terra/Luna, Kwon’s scheme blew up. In a comically-too-late-to-matter gesture, an appeals court then said that the SEC had the right to compel information from Kwon’s now-bankrupt scheme. It is absolute lunacy that well-settled law, like the ability for the SEC to investigate those in the securities business, is now being re-litigated.

many crypto ‘enthusiasts’ watching Gensler discuss regulation with his predecessor “called for their incarceration or worse.”

it wasn’t just the courts who were an impediment. Gensler wasn’t the only cop on the beat. Other regulators, like those at the Commodities Futures Trading Commission, the Federal Reserve, or the Office of Comptroller of the Currency, not only refused to take action, but actively defended their regulatory turf against an attempt from the SEC to stop the scams.

Behind this was the fist of political power. Everyone saw the incentives the Senate laid down when every single Republican, plus a smattering of Democrats, defeated the nomination of crypto-skeptic Saule Omarova in becoming the powerful bank regulator at the Comptroller of the Currency

Instead of strong figures like Omarova, we had a weakling acting Comptroller Michael Hsu at the OCC, put there by the excessively cautious Treasury Secretary Janet Yellen. Hsu refused to stop bank interactions with crypto or fintech because, as he told Congress in 2021, “These trends cannot be stopped.”

It’s not just these regulators; everyone wanted a piece of the bureaucratic pie. In March of 2022, before it all unraveled, the Biden administration issued an executive order on crypto. In it, Biden said that virtually every single government agency would have a hand in the space.

That’s… insane. If everyone’s in charge, no one is.

And behind all of these fights was the money and political prestige of some most powerful people in Silicon Valley, who were funding a large political fight to write the rules for crypto, with everyone from former Treasury Secretary Larry Summers to former SEC Chair Mary Jo White on the payroll.

(Even now, even after it was all revealed as a Ponzi scheme, Congress is still trying to write rules favorable to the industry. It’s like, guys, stop it. There’s no more bribe money!)

Moreover, the institution Gensler took over was deeply weakened. Since the Reagan administration, wave after wave of political leader at the SEC has gutted the place and dumbed down the enforcers. Courts have tied up the commission in knots, and Congress has defanged it

Under Trump crypto exploded, because his SEC chair Jay Clayton had no real policy on crypto (and then immediately went into the industry after leaving.) The SEC was so dormant that when Gensler came into office, some senior lawyers actually revolted over his attempt to make them do work.

In other words, the regulators were tied up in the courts, they were against an immensely powerful set of venture capitalists who have poured money into Congress and D.C., they had feeble legal levers, and they had to deal with ‘crypto enthusiasts' who thought they should be jailed or harmed for trying to impose basic rules around market manipulation.

The bottom line is, Gensler is just one regulator, up against a lot of massed power, money, and bad institutional habits. And we as a society simply made the choice through our elected leaders to have little meaningful law enforcement in financial markets, which first became blindingly obvious in 2008 during the financial crisis, and then became comical ten years later when a sector whose only real use cases were money laundering

, Ponzi scheming or buying drugs on the internet, managed to rack up enough political power to bring Tony Blair and Bill Clinton to a conference held in a tax haven billed as ‘the future.’

It took a few years, but New Dealers finally implemented a workable set of securities rules, with the courts agreeing on basic definitions of what was a security. By the 1950s, SEC investigators could raise an eyebrow and change market behavior, and the amount of cheating in finance had dropped dramatically.

By 1935, the New Dealers had set up a new agency, the Securities and Exchange Commission, and cleaned out the FTC. Yet there was still immense concern that Roosevelt had not been able to tame Wall Street. The Supreme Court didn’t really ratify the SEC as a constitutional body until 1938, and nearly struck it down in 1935 when a conservative Supreme Court made it harder for the SEC to investigate cases.

Institutional change, in other words, takes time.

It’s a lesson to remember as we watch the crypto space melt down, with ex-billionaire Sam Bankman-Fried

It’s not like perfidy in crypto was some hidden secret. At the top of the market, back in December 2021, I wrote a piece very explicitly saying that crypto was a set of Ponzi schemes. It went viral, and I got a huge amount of hate mail from crypto types

one of the more bizarre aspects of the crypto meltdown is the deep anger not just at those who perpetrated it, but at those who were trying to stop the scam from going on. For instance, here’s crypto exchange Coinbase CEO Brian Armstrong, who just a year ago was fighting regulators vehemently, blaming the cops for allowing gambling in the casino he helps run.

FTX.com was an offshore exchange not regulated by the SEC. The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore. Punishing US companies for this makes no sense.

Now, he’s publicly asking for 25%, to give him more voting power in corporate matters.  

That plan, which became subject to litigation, set numerous stretch goals, including the addition of $600 billion to the company’s market value. It offered him tranches of payouts along the way, giving him options in total to about 10% of the company’s stock, worth around $60 billion Friday after exercising costs. 

“If I allocate time to Tesla—if I overallocate time to Tesla at the expense of making humanity a space-faring civilization—then I’m not sure what would serve the greater good,” Musk said. “But if there were additional economic resources available that could then subsequently be applied to making life multiplanetary, then perhaps that would serve the greater good.” 

Musk surprised many by completing the final tranche of his plan in 2022—to his and investors’ benefit. 

His public airing of his demands were made even more unusual given that he and the board have plenty of reasons to make something work. His unexpected departure would hurt the stock’s value, which would be bad both for his own wealth and for the board responsible for ensuring shareholder value.  

“This is primarily about ensuring the right amount of voting influence at Tesla,” Musk tweeted. “If I have 25%, it means I am influential, but can be overridden if twice as many shareholders vote against me vs for me. At 15% or lower, the for/against ratio to override me makes a takeover by dubious interests too easy.” 

As for our continuing distress, the standard explanation is a uniquely American loneliness. The surgeon general, Vivek Murthy, declared it an epidemic in its own right.

The truth, however, is there’s no good evidence that Americans are lonelier than ever

a major recent poll shows that older Americans are now significantly less lonely than they were three years ago; a recent peer-reviewed study reports that middle-aged Americans describe themselves as less lonely than they were 20 years ag

Loneliness is more pervasive among younger Americans, but there too, the rates have also plummeted since 2020

Logically, we should be feeling better. Why can’t we shake this thing?

loneliness was never the core problem. It was, rather, the sense among so many different people that they’d been left to navigate the crisis on their own. How do you balance all the competing demands of health, money, sanity?

The answer was always the same: Figure it out.

while other countries built trust and solidarity, America — both during and after 2020 — left millions to fend for themselves.

For millions of Americans, distrust feels like the most rational state.

The very different people I spoke with that year all had one thing in common: a feeling that in the wake of Covid, all the larger institutions they had been taught to trust had failed them. At the most precarious times in their lives, they found there was no system in place to help.

four years later, the situation is, if anything, worse.

Nursing homes across the country, where poor labor conditions were linked to higher Covid mortality levels, remain understaffed, leaving old, frail residents more vulnerable than they should be. Hunger and food insecurity remain wrenching emergencies.

Students haven’t fully returned to school. Congress passed the Child Poverty Reduction Act of 2021, one of the most effective antipoverty measures in decades. Then a year later, Congress ended it, pushing some five million young people back down into extreme financial need.

When everything was uncertain and everyone’s future was on the line, we walked right up to the precipice of a moral breakthrough, and then we turned back.

Look at the way we all accustomed ourselves to the term “essential worker,” an ostensible term of respect that instead condemned people to work in manifestly dangerous conditions. The adoption of that term made visible something we now cannot unsee: In the United States the people we rely on most to keep our world functioning are the people we treated as disposable.

we might call the bigger problem structural isolation: abandoned by employers, deprived of shared purpose, denied care. The combined effect sent a strong message that individual lives weren’t worth as much anymore.

People treated one another accordingly. We all remember the viral videos of people screaming at one another in supermarkets and on public transportation. Violent crime spiked. Even reckless driving surged — but it happened only in the United States.

The reasons for that American exceptionalism become only more urgent in an election year, when, as in a public health crisis, presidents can try to bring people together or try to turn them against one another.

Research published in the weekly Der Spiegel shows that the AfD, a party started by nationally minded economists who advocated a return to the Deutsche mark as the national currency, now uses language nearly identical to that of the defunct National Democratic Party of Germany (NPD), a small, virulently xenophobic, and openly neo-Nazi party that ran in German elections for decades but never managed to win seats in the Bundestag.

“They have major ideological overlaps. The AfD measures up to the NPD [of 2012] in almost all areas, even if the AfD appears more moderate in its party program.”

Documents attributed to both parties employ reactionary terminology, some of it straight from Nazi Germany, such as Umvolkung (population replacement) and Volkstod (death of the German nation), as well as Stimmvieh (voting cattle) for voters of opposing parties and Passdeutschen (foreign nationals holding German passports). And like the NPD, Spiegel reported in another study, the AfD maintains close links with violent militants.

this radicalism, which in the past had turned Germans off, has now lifted the AfD to new heights: It is polling at 22 percent support nationwide, second only to the Christian Democrats, and well over 30 percent in several states, making it the number one political force there in advance of autumn elections.

The current outburst of popular indignation at the AfD, echoed by all of the other major political parties, comes on the heels of an investigative exposé that found that at a clandestine meeting in November, ranking AfD personalities met with known neo-Nazis and wealthy financiers to hammer out plans for the forced deportation of foreign nationals and even foreign-born German citizens.

The extremists congregated at a hotel near Potsdam to design what they called a “remigration master plan” to forcibly repatriate millions of people. Shocked observers drew parallels to the 1942 Wannsee Conference, held not far from Potsdam, at which the Nazis coordinated their plan to deport and murder the entire Jewish population of Europe.

While some AfD politicos have tried to distance the party from the Potsdam meeting, others endorsed its purpose. “Remigration is not a secret plan, but a promise. … and there’s no better way to put it,” announced Hans-Christoph Berndt, the AfD point person in the Brandenburg state parliament, on Jan. 17.

they confirm the diagnosis of many experts that the AfD, under the leadership of its most extreme figures—particularly Björn Höcke, a member of the Thuringia legislature—has outpaced other European far-right parties in its radicalism. “The current AfD wouldn’t find a place in the ranks of the Sweden Democrats and most of the other more moderate far-right parties among the European Conservatives and Reformists faction in the European Parliament,”

She explained that like the AfD, the Sweden Democrats, the Finns Party (formerly the True Finns), and the Danish People’s Party are opposed to immigration and favor law-and-order states. But the Nordic rightists’ experiences in office pushed them to adapt to mainstream norms and policy options. (The Sweden Democrats are currently an informal supporter of the Swedish ruling coalition; the Finns are a coalition member in Finland; and the DPP acted as a support party to a conservative Danish government between 2001 and 2011, as well as from 2015 to 2019.)

The radicalized AfD, Jungar said, in contrast to these parties, actively courts militants, trades in antisemitic tropes, and toys with the proposition of Germany exiting NATO and the European Union

Moreover, AfD politicians have stood against adoption rights for same-sex couples, the inclusion of disabled kids in schools, and the legality of abortion. “These positions simply wouldn’t stand a chance in Sweden,”

“The FPO under Kickl has moved further to the right. It is now indistinguishable from the right-wingers in the AfD,” he argued. “They want people who they think don’t belong here out of Austria. They don’t want to gas them yet, but they want to strip people of their citizenship. They want to cut people’s social benefits to such an extent that their livelihoods are destroyed. That is essentially the program of parties like the AfD and the FPO. They harbor fantasies ranging from populist to fascist.

“By stacking the courts and clamping down on opposition forces, these parties gradually undermined the democratic order,” Opratko said. “This is the AfD’s model. It’s what they want to do.”

Nothing in his background seems to have brought him to this troubling point. Mr. Bechtolsheim was one of those who gave Silicon Valley its reputation as an engineer’s paradise, a place where getting rich was just something that happened by accident.

“He cared so much about making great technology that he would buy a house, not furnish it and sleep on a futon,” said Scott McNealy, who joined with Mr. Bechtolsheim four decades ago to create Sun Microsystems, a maker of computer workstations and servers that was a longtime tech powerhouse. “Money was not how he measured himself.”

researchers who analyze trading data say corporate executives broadly profit from confidential information. These executives try to avoid traditional insider trading restrictions by buying shares in economically linked firms, a phenomenon called “shadow trading.”

“There appears to be significant profits being made from shadow trading,” said Mihir N. Mehta, an assistant professor of accounting at the University of Michigan and an author of a 2021 study in The Accounting Review that found “robust evidence” of the behavior. “The people doing it have a sense of entitlement or maybe just think, ‘I’m invincible.’”

He went to Stanford as a Ph.D. student in the mid-1970s and got to know the then-small programming community around the university. In the early 1980s, he, along with Mr. McNealy, Vinod Khosla and Bill Joy, started Sun Microsystems as an outgrowth of a Stanford project. When Sun initially raised money, Mr. Bechtolsheim put his entire life savings — about $100,000 — into the company.

“You could end up losing all your money,” he was warned by the venture capitalists financing Sun. His response: “I see zero risk here.”

An impromptu demonstration was hastily arranged for 8 a.m., which Mr. Bechtolsheim cut short. He had seen enough, and besides, he had to get to the office. He gave them a check, and the deal was sealed, Mr. Levy wrote, “with as little fanfare as if he were grabbing a latte on the way to work.

Mr. Page and Mr. Brin couldn’t deposit Mr. Bechtolsheim’s check for a month because Google did not have a bank account. When Google went public in 2004, that $100,000 investment was worth at least $1 billion.

It wasn’t the money that made the story famous, however. It was the way it confirmed one of Silicon Valley’s most cherished beliefs about itself: that its genius is so blindingly obvious, questions are superfluous.

The dot-com boom was a disorienting period for longtime Valley leaders whose interest in money was muted. Mr. Bechtolsheim’s Sun colleague Mr. Joy left Silicon Valley.

“There’s so much money around, it’s clouding a lot of people’s ethics,” Mr. Joy said in a 1999 oral history

Mr. Bechtolsheim didn’t leave. In 2008, he co-founded Arista, a Silicon Valley computer networking company that went public and now has 4,000 employees and a stock market value of $100 billion.

Mr. Bechtolsheim was chair of Arista’s board when an executive from another company called in 2019, according to the S.E.C. Arista and the other company, which was not named in court documents, had a history of sharing confidential information under nondisclosure agreements.

immediately after hanging up, the government said, he bought Acacia option contracts in the accounts of a close relative and a colleague. The next day, the deal was announced. Acacia shares jumped 35 percent.

Arista’s code of conduct states that “employees who possess material, nonpublic information gained through their work at Arista may not trade in Arista securities or the securities of another company to which the information pertains.”

Mr. Levy, the “In the Plex” author, said there were plenty of legal ways to make money in Silicon Valley. “Someone who is regarded as an influential funder and is very well connected gets nearly unlimited opportunities to make very desirable early investments,”

The latest study looked at data from 126,972 people over the study period. It found that in 2015, 4.2 percent of Medicaid enrollees under the age of 17 in Maryland had overlapping prescriptions of three or more different classes of psychiatric medications. That figure rose to 4.6 percent in 2020.

Mensch said his new model cost less than €20 million, the equivalent of roughly $22 million, to train. By contrast OpenAI Chief Executive Sam Altman said last year after the release of GPT-4 that training his company’s biggest models cost “much more than” $50 million to $100 million.

Brave Software made a free, open-source model from Mistral the default to power its web-browser chatbot, said Brian Bondy, Brave’s co-founder and chief technology officer. He said that the company finds the quality comparable with proprietary models, and Mistral’s open-source approach also lets Brave control the model locally.

Eric Boyd, corporate vice president of Microsoft’s AI platform, said Mistral presents an intriguing test of how far clever engineering can push AI systems. “So where else can you go?” he asked. “That remains to be seen.”

Mensch joined the Google AI unit then called DeepMind in late 2020, where he worked on the team building so-called large language models, the type of AI system that would later power ChatGPT. By 2022, he was one of the lead authors of a paper about a new AI model called Chinchilla, which changed the field’s understanding of the relationship among the size of an AI model, how much data is used to build it and how well it performs, known as AI scaling laws.

Mensch took a role lobbying French policymakers, including French President Emmanuel Macron, against certain elements of the European Union’s new AI Act, which Mensch warned could slow down companies and would, in his view, do nothing to make AI safer. After changes to the text in Brussels, it will be a manageable burden for Mistral, Mensch says, even if he thinks the law should have remained focused on how AI is used rather than also regulating the underlying technology.  

For Mensch and his co-founders, releasing their initial AI systems as open source that anyone could use or adapt free of charge was an important principle. It was also a way to get noticed by developers and potential clients eager for more control over the AI they use

Mistral’s most advanced models, including the one unveiled Monday, aren’t available open source. 

Ms. Davis acknowledged that with her weight loss came affirmation — more party invitations, more attention from men. “I so badly want to be like, ‘What you look like doesn’t matter,’” she said. “But it sure does change how people treat you.”

When she relapsed, Ms. Davis convinced herself she was just trying to eat healthier and be more active. Soon though, she said, she was subsisting on rice cakes and Red Bull

iven that she is still working on her own issues — and given that she’s no longer plus size — she doesn’t feel it’s her place to advocate body positivity online.“There was a time when I was in a body where I was experiencing fatphobia,” she said. “Now that I’m not in that body currently, I don’t think my voice is needed.”

When Ms. James first noticed that Ms. Davis had lost weight, she unfollowed her. “I just didn’t think that was good for me,” she said. But then she noticed her feeds were full of people posting their exercise and diet routines. Ms. Davis was just one of many women who were no longer proudly plus size. Ms. James re-followed her. And recently, she said, she started working out and shedding pounds herself.“I guess weight is just as much of a trend as anything else,” Ms. James said.

At some point they will be able to, for example, suggest recipes for novel cyberattacks or biological attacks—all based on publicly available knowledge.

But as models become more sophisticated, this approach may prove insufficient. Some models are beginning to exhibit polymathic behavior: They appear to know more than just what is in their training data and can link concepts across fields, languages, and geographies.

We need to adopt new approaches to AI safety that track the complexity and innovation speed of the core models themselves.

What’s much harder to test for is what’s known as “capability overhang”—meaning not just the model’s current knowledge, but the derived knowledge it could potentially generate on its own.

Red teams have so far shown some promise in predicting models’ capabilities, but upcoming technologies could break our current approach to safety in AI. For one, “recursive self-improvement” is a feature that allows AI systems to collect data and get feedback on their own and incorporate it to update their own parameters, thus enabling the models to train themselves

This could result in, say, an AI that can build complex system applications (e.g., a simple search engine or a new game) from scratch. But, the full scope of the potential new capabilities that could be enabled by recursive self-improvement is not known.

Another example would be “multi-agent systems,” where multiple independent AI systems are able to coordinate with each other to build something new.

This so-called “combinatorial innovation,” where systems are merged to build something new, will be a threat simply because the number of combinations will quickly exceed the capacity of human oversight.

Short of pulling the plug on the computers doing this work, it will likely be very difficult to monitor such technologies once these breakthroughs occur

Current regulatory approaches are based on individual model size and training effort, and are based on passing increasingly rigorous tests, but these techniques will break down as the systems become orders of magnitude more powerful and potentially elusive

AI regulatory approaches will need to evolve to identify and govern the new emergent capabilities and the scaling of those capabilities.

But the AI Act has already fallen behind the frontier of innovation, as open-source AI models—which are largely exempt from the legislation—expand in scope and number

Europe has so far attempted the most ambitious regulatory regime with its AI Act,

both Biden’s order and Europe’s AI Act lack intrinsic mechanisms to rapidly adapt to an AI landscape that will continue to change quickly and often.

a gathering in Palo Alto organized by the Rand Corp. and the Carnegie Endowment for International Peace, where key technical leaders in AI converged on an idea: The best way to solve these problems is to create a new set of testing companies that will be incentivized to out-innovate each other—in short, a robust economy of testing

To check the most powerful AI systems, their testers will also themselves have to be powerful AI systems, precisely trained and refined to excel at the single task of identifying safety concerns and problem areas in the world’s most advanced models.

To be trustworthy and yet agile, these testing companies should be checked and certified by government regulators but developed and funded in the private market, with possible support by philanthropy organizations

The field is moving too quickly and the stakes are too high for exclusive reliance on typical government processes and timeframes.

One way this can unfold is for government regulators to require AI models exceeding a certain level of capability to be evaluated by government-certified private testing companies (from startups to university labs to nonprofit research organizations), with model builders paying for this testing and certification so as to meet safety requirements.

As AI models proliferate, growing demand for testing would create a big enough market. Testing companies could specialize in certifying submitted models across different safety regimes, such as the ability to self-proliferate, create new bio or cyber weapons, or manipulate or deceive their human creators

Much ink has been spilled over presumed threats of AI. Advanced AI systems could end up misaligned with human values and interests, able to cause chaos and catastrophe either deliberately or (often) despite efforts to make them safe. And as they advance, the threats we face today will only expand as new systems learn to self-improve, collaborate and potentially resist human oversight.

If we can bring about an ecosystem of nimble, sophisticated, independent testing companies who continuously develop and improve their skill evaluating AI testing, we can help bring about a future in which society benefits from the incredible power of AI tools while maintaining meaningful safeguards against destructive outcomes.