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John Q

The US Navy loses another war

by John Q on September 4, 2026

… but that won’t change any minds

It’s now six months since the US-Israel war on Iran began with air attacks which killed the Iranian leader Ayatollah Khamenei as well as around 200 schoolchildren. The war has dragged on a long time. But before that surprise attack, it had appeared that the US planned to rely on naval power to coerce the Iranian regime into submission.

Early in February 2026, Trump deployed a carrier strike group (CSG) to the region, with a second arriving shortly afterwards. This show of force was described (with a striking lack of historical awareness) as an “armada”. The lead ship of that group, the USS Abraham Lincoln, is now limping home after what is generally admitted to have been a disastrous tour of duty.

As many people have pointed out to me over the years, I’m not a naval expert. But I can count. So, when the armada arrived, I checked the numbers and concluded that the threat was a hollow one.

The escorts are critical. They provide missile defence using AEGIS and Sea Sparrow systems, and once their interceptor stocks fall to low levels they must withdraw to be replaced or rearmed.

This creates an arithmetic problem. A Hobart-class destroyer has 48 blocks, each capable of carrying one AEGIS-controlled SM-2 or SM-6 interceptor. Alternatively, each block can carry four Sea Sparrows, but these are less capable.

Standard USN doctrine calls for the use of two defensive missiles against each incoming missile. On the assumption of 100 usable missiles per escort, that’s 50 defensive actions per escort or 200–250 in total. No one knows how many missiles Iran has available, but typical estimates suggest at least 3000, of which 1000 or more could be used in an anti-ship capacity. Even assuming successful air attacks on launch sites, use of aircraft against missiles, etc., hundreds of missiles will pose a threat, and at least some of them will cause enough damage to force escorts to withdraw.

A carrier-based bombing campaign couldn’t be sustained for even ten days without exhausting the carrier group’s defences and requiring the USN to “declare victory and go home”.

As it turns out, I wasn’t the only one who could count. The Center for Strategic and International Studies (a hawkish and generally navalist think tank) looked at the numbers and concluded that the available force could do some damage but not enough to produce regime change. And, pretty clearly, the US military drew the same conclusion, except for the bit about going home.

Like CSIS, I didn’t expect a massive air campaign beginning with the killing of the top Iranian leadership. But once the full-scale war began, the vast majority of the attacks were made by land-based aircraft. The carrier-based air arm fired most of its Tomahawks from a safe distance, with only modest effects. Iran responded by attacking land bases with a level of success that could have produced a catastrophe if it had been focused on the navy.

The role of the USN was reduced to its long-stated mission of keeping vital sea lanes open. When that failed, it shifted to the secondary task of imposing a blockade on Iran. Unsurprisingly, this has not produced a surrender — no naval blockade in recorded history has forced an adversary nation to surrender without the deployment of land forces.

Meanwhile, it is reported that the costs of the futile campaign have wrecked the Navy’s budget. A Navy official, quoted in the Guardian, says:

The money for payroll was robbed to pay for overseas contingencies and is being backfilled by money that hasn’t been spent. They are backfilling payroll so we get enough money in our paycheck.

More succinctly, a former official said:

They’re fucked. They shot all their weapons; they trashed all their ships; they ran out of their money.

The 2020s haven’t been a great decade for navies. The Russian invasion of Ukraine began with the destruction or capture of almost the entire Ukrainian navy. Then, despite having no navy of their own, the Ukrainians wiped out much of the mighty Black Sea Fleet, with the remnants sheltering in a Russian port as far away from Ukraine as they can get.

The Iranian war began similarly. The destruction of the Iranian Navy was rapid and complete. The most notable feature was the perfidious sinking of a ship returning from a training exercise in India, with the survivors of the initial attack being left to drown, even though their rescue would have posed no risk.

The US Navy suffered nothing more than the failures described above, but that was bad enough. Following the earlier failure to dislodge the Houthis, who now control access to the Red Sea, it is clear that naval forces cannot reliably keep trade lanes open or defeat even a low-level land-based opponent.

But having been through many rounds of this debate, I am confident that nothing will persuade navalists that their beloved flat-tops and frigates are little more than floating targets. Pirates, grey zones, reconnaissance, diplomatic visits, disaster relief and tiger-repelling rocks will all be wheeled out. Still, for any government in serious fiscal trouble (and aren’t they all), reducing the navy* to a coast guard would save a heap of money that would otherwise be wasted.

Anticipating this, I won’t reply to any comments restating points of this kind. If you have something actually new to say, go ahead.

* I haven’t talked about submarines here. The doomsday machines waiting to unleash nuclear Armageddon from the deep ocean floor are too much for me to think about. The ordinary kind, designed to sink ships from concealment, now seem like an expensive way of doing the job of a low-cost missile or drone, and even their invisibility is a depreciating asset.

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Don’t use a gmail.com address

by John Q on September 3, 2026

We are being flooded with spam coming from fake gmail.com addresses at the moment. So, for the moment, I’ve set our spam filter to delete everything from gmail.com

If you want to post a real comment, just give a spurious address like anon.com and use your existing name/nym. Although we ask for an email address, we almost never check that it’s real. If you have trouble with that, email me at john.quiggin@icloud.com

Hopefully, we will find a way around this soon.

Also, Google is Evil.

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Taylor Swift: The Good Billionaire?

by John Q on September 3, 2026

I wrote this post a couple of weeks ago, responding to a challenge* to write about the economic aspects of Taylor Swift. Not long after that, the world lost the marvellous Dolly Parton. Parton’s lifetime income almost certainly exceeded a billion dollars, but she gave huge amounts away.

Her biggest philanthropic endeavour was the Imagination Library, which sends free books to children every month from birth to age five. There are currently 3 million children enrolled, and the program has given away over 300 million books.

That didn’t leave Parton poor. Her estate was estimated at $400 million, mostly tied up in property rights of the kind discussed below — copyrights and her theme park, Dollywood. She lived well, in a substantial house on 60-odd acres of land just outside Nashville. But lots of people have substantial houses and, at least for an Australian, 60 acres doesn’t sound like much. More notable was her ostentatious, but deliberately cheap, self-presentation — rhinestones rather than diamonds.

Now for a repeat of the Taylor Swift analysis.

The claim “Every billionaire is a policy failure” is pretty widely accepted these days, formulated most clearly in Ingrid’s case for limitarianism (a hard cap on the maximum wealth anyone can have). Looking at the Forbes list of the richest people in the world (one woman in the top 20), it’s hard to disagree. Most are thoroughly objectionable, and even those who aren’t personally appalling mostly made their money from monopoly (for example, Warren Buffett) or inheritance (members of the Walton family).

But what about the good billionaires, a category for which Taylor Swift (ranked about 2000 in the list) seems like the ideal example? Before her, there was J. K. Rowling, but look how that turned out. Swift seems to tick all the boxes. Apparently a nice person (if you ignore the promotional feuds with other celebrities), generous with her money, treats her employees well, politically progressive without being obnoxious about it, and a philanthropist, though nothing like Dolly Parton.

And she’s made her money honestly, selling records and concert tickets to people who want to buy them. Revealed preference arguments need to be treated with care (Tom Slee’s No One Makes You Shop at Walmart is the classic here), but Swifties have plenty of alternatives on offer. At the margin, a dollar spent on Swift is a dollar less for other entertainers, but that’s not a consideration we usually regard as relevant in our current system.

So, if there’s a problem with Swift’s wealth, it’s not a problem with her, but with the system that makes such massive wealth possible. For Swift, that comes about in several ways.

First, the money she makes from selling records and merchandise depends on the system of “intellectual property” (in this case, mostly copyrights and trademarks). Unlike many entertainers, she’s been highly successful in capturing this for herself rather than letting record companies grab it.

Second, her returns from ticket sales to her concerts depend on the availability of stadiums. These are sometimes explicitly subsidised by the public and always dependent on land-use regulation.

Finally, the returns she gets when she invests her wealth are higher than those available to ordinary households. This is at the core of the r > g point made by Piketty a while back.

These compounding effects would be greatly reduced by a more progressive income tax system (a top marginal rate of 70 per cent) and by wealth taxes, capturing the excess returns to high wealth. In combination, these would make it very difficult to become a billionaire by entertaining people. Other measures would be needed to deal with the massive accumulations of corporate wealth represented by the multibillionaires.

Given her dependence on the society that made her wealth possible, Swift can have no legitimate moral objection to a tax system that shares it out more evenly. But is there an economic cost here? The standard story is one about incentives and effort. But it’s hard to believe that Swift would write fewer songs, or perform fewer concerts, if the return were in the hundreds of thousands rather than millions or billions. And, as I already observed, most of the ultra-rich have made their money in actively harmful ways. Even where there is an actually useful product involved, the super-profits have come mostly from monopoly or speculation.

In summary, in a society which produces billionaires, there’s no reason to object to Taylor Swift becoming one. But we could have all the music we need or want in a society without billionaires. Indeed, with policies like a participation income or livable income guarantee, we could see a lot more people making music, some of which might turn out better than what the industry currently gives us.

* In support of my fundraising for the Brisbane to Gold Coast ride against cancer, which was hugely successful. Thanks, everyone!

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The economics of Swifties

by John Q on August 18, 2026

Yesterday, I ran my first gimmick promotion for the Brisbane to Gold Coast Ride against Cancer [1]. I invited anyone who donated $100 to nominate a topic on which I should write a post. Reader Daniela Brins-Norris has taken me up on the offer, and asked for a piece about the economic significance of Taylor Swift. Although this is a bit outside my usual set of topics, readers who know me well won’t be surprised to know that I have spent some time thinking about this and have strong (but weakly held) opinions.

I’ve been thinking about two questions. First, how did Swift become the cultural and economic phenomenon she is now? Second, what does her status as a self-made billionaire say about income distribution and public policy? I’ll write about the first today. If anyone would like to donate another $100, I’ll do the second.

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… is set out over the fold. I’m confident readers who take a little time to think about it will realise it’s far superior to existing policy, and to any alternative proposed so far.

  • Fourth repost since 2011

The Odyssey and the Bronze Age Collapse

by John Q on August 11, 2026

How Hegsethian heroes destroyed themselves and their entire civilisation

I haven’t yet seen the Odyssey film[1], but reviews mention a minor obsession of mine, the Late Bronze Age collapse and the ensuing Greek Dark Age. I first encountered this at the end of Ken McLeod’s Intrusion where the character Geena compares modern nihilists to the mysterious “city burners” responsible for the massive destruction of cities in the Eastern Mediterranean around 1200 BCE.

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Malware problem (fixed)

by John Q on July 29, 2026

A number of commenters noted a malware problem with the site.It appears to be a well known attack called ClickFix.

It’s now fixed, thanks again to Doctor Memory

Nate Silver discovers the educated poor

by John Q on July 25, 2026

My son Daniel points me to a piece by Nate Silver which announces the discovery that highly educated workers with low or precarious income are the natural constituency of the Democratic Socialists of America. We’ve been over this at length at CT, starting as far back as 2012 (and it wasn’t new then). Given that Silver treats the question as new, I thought it might be useful to restate the basic points from this discussion.

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A big thank you …

by John Q on July 20, 2026

… to CT reader and commenter Dr Memory, who has cleaned up our database, eliminating many of the badly rendered quotation marks and similar problems. Those problems reflect the fact that the blog is now more than 20 years old, and has gone through multiple formatting systems.

An unexpected side benefit is that commenters can now use emojis, which weren’t even available in Unicode when CT started out.

I enjoy reading over our old posts and discussions, and will enjoy it more now that they are properly readable.

Thanks again, Dr M.

The dispensable nation – updated

by John Q on July 16, 2026

As I observed last year, the statement that “The cemeteries are full of indispensable people.” is just as true of nations, and in particular the US. That was a little controversial at the time, but now it’s become sufficiently conventional wisdom to be restated in the New York Times. I’ve been working on an update. and that seems like a signal to get it out

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The state of nuclear power in 2026

by John Q on June 30, 2026

There was a renewed burst of enthusiasm for nuclear power a few years ago. In Australia, where I live it was confined to the political right and didn’t last long, but elsewhere support was broader. Most notable was the 2023 commitment by more than 20 countries, led by the US, UK and France, to triple global nuclear capacity by 2050. In the three countries mentioned, that would imply building 330 GW of new capacity as well as replacing retiring capacity.

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AI Electricity use: a lot or a little

by John Q on June 24, 2026

There’s long been a disconnect between concerns about the massive impact of AI data centres on electricity demand and claims by Sam Altman and others that the impact is really modest. Ed Zitron recently posted a summary of OpenAI’s 2025 accounts which helps to clarify things a bit.

In short, if you look at actual electricity demand needed for current AI use, it’s small. And that doesn’t change if demand grows at high but plausible rates. On the other hand, if you look at what is needed to justify the current valuations of AI and its competitors, the implied growth is staggering.

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One big grift

by John Q on June 15, 2026

The SpaceX IPO, valuing a motley collection of dubious business at over a trillion dollars, marks the abandonment of the Efficient (financial) Markets Hypothesis, one of the zombie ideas I criticised in the wake of the Global Financial Crisis. Not only do financial markets fail in the task of valuing assets accurately, but the institutional structures that are supposed to make them work have given up trying.
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Final Five And U.S. Competitiveness

by John Q on June 9, 2026

Jerry Cayford at Three Quarks Daily has written a piece responding to the near-farcical “jungle primary” in California where it appeared possible at one point that both of the candidates making it through to the general election might be Republicans. The proposed response is to allow the top five candidates through to the general election, which would be run under Ranked Choice Voting.

Here’s the conclusion:

Final Five Voting emerges as the single most powerful way to address political dysfunction, “the root cause of the decades-long inability of our government to make progress on America’s most pressing economic and social problems” (18). (Better legislative rules take a strong but secondary position.) Harvard Business School’s large-scale, multi-year project has given us, then—along with valuable information, analysis, and insight—a thesis vitally relevant to our public conversation about electoral reform: the stakes of that conversation are immeasurably higher than we usually recognize. To make this point, HBS not only documented the magnitude of America’s decline and crisis, but also spotlighted electoral reform as the very top priority in reversing our long slide. Not just easing polarization, gridlock, and other narrowly “political” problems. Not just making California’s elections sensible. Breaking the politics industry’s self-serving duopoly is how we address everything else as well. 

Do you want to repair crumbling roads and bridges, lower infant mortality rate, or fix K-12 education? The single most effective remedy is “nonpartisan top-five primaries and ranked choice voting in general elections.” Are you trying to improve health care, life expectancy, or public transportation? Your method is “Final Five Voting.” The powerful message of HBS’s U.S. Competitiveness Project is that electoral reform is our main tool to end dysfunctional politics, strengthen U.S. competitiveness, and stop America’s decline. Want paid leave and walkable cities? Or—updating from 2019 to today—do you seek to compete with China on anything at all, unwind predatory monopolies, or develop more useful, less dangerous artificial intelligence? All of it. The basic aspects of a civilized life. The answer is the same. Put your effort into nonpartisan top-five primaries and ranked choice voting in general elections, aka Final Five Voting.

Pet Haidt

by John Q on May 21, 2026

One my betes noires has been in the news lately. Jonathan Haidt has been annoying me since at least 2012, when I was critical of his bothsidesism on the culture wars.

At the time, he was a concern troll, posing as a liberal worried about other liberals who were, he claimed, misunderstanding Republicans. Whereas liberals thought of Republicans as bigots and misogynists, concerned with preserving their own position in racial and gender hierarchies, Haidt explained that they actually had their own set of values, based on order, purity, honour and loyalty. The wheels started falling off that one when Donald Trump, the antithesis of all of these things, came along and received the unqualified support of the supposed believers in purity.

Haidt responded by reinventing himself a free speech advocate, concerned about cancel culture and the coddling of young minds. He hung out on the “Intellectual Dark Web” with Bari Weiss and Stephen Pinker. Now that Weiss is busy suppressing reporting of Trump’s crimes, the IDW appears to have shut up shop.

?Haidt’s next reinvention was an almost complete backflip. Despite having no relevant research background (as discussed his previous focus was on adult voters, followed by a shift to scolding college students) he suddenly became an authority on the effects of smartphone use on teenagers. His concerns about freedom of speech suddenly went out the window, replaced by a fear that the speech teens encountered on their phones was making them depressed as miserable.

Haidt’s work writings on this topic inspired the Australian government to pass legislation aimed at banning access to social media platforms for people under 16. It’s been mostly ineffective, but for the minority of kids who have left social media, a notable impact has been reduced access to news.

Possibly because recognition of this failure is spreading, Haidt has gone back to the “coddling” theme in a commencement address at NYU, for which he was roundly booed. Haidt appears not to have noticed that, far from protecting students from views that might upset them, NYU is busy suppressing speech by students that offends the administrators and of course the Trump Administration.

The kind of concerned punditry of which Haidt is an exponent never goes out of style, even if the topics of concern change from time to time. Given his ability to leap from one topic to the next with a fine disregard for consistency, I expect he will be around to annoy me for a long time to come.