
Economist @sdsu PhD @Wharton BA @BrandeisU Wrestler @MidwoodHornets Coder @JuliaLanguage Skier @IkonPass Biohacker @Bryan_Johnson
Riga→Bk→Bos→DC→Aus→Phl→NYC→SD
Joined December 2020
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This is a NATIONAL CRISIS!!!
More University of California freshmen are failing introductory math.
18% of UC freshmen got a D or F, withdrew or didn’t pass an intro math class in 2025–26, nearly double the 9.2% in 2020–21, the last year UC required the SAT or ACT, per UC data reported by EdSource.
The average grade in those classes fell from 3.18 to 2.71.
At UC Merced, 36.4% of freshmen failed or withdrew, the highest of any campus. At UC Santa Barbara, it was 8.2%.
UC is now weighing whether to bring back standardized testing, with a faculty report on testing due in February.
Arabs are 17% of eligible voters in Israel, but Arab-led parties have won 16% of seats in the Knesset on Oct 27
Alex Zevelev retweeted
Does trauma make artists more original? 🎨
Using data on 39,000 paintings this paper shows that when Nazi Germany invaded their country, artists painted ~⅓ less, but their work became measurably more novel and also stayed that way after the war.
ericjeong.com/
Piers Morgan calls out Abdul El-Sayed’s ‘arrogance’ after heated clash with Sky News journalist
Piers Morgan: “Abdul El-Sayed’s victory speech was pretty insufferable. It was neither humble nor gracious. It was just Trump-style rhetoric, reversed into a Democratic voice.”
he had this extraordinary scuffle with a very good journalist, James Matthews from Sky News, let’s take a look.”
Abdul El-Sayed: “Are you registered to vote in Michigan? Why would I care to have a conversation with you?”
James Matthews (Sky News): “I'm a journalist, these conversations matter to the world…you’re bidding to become a senator in the
United States.”
Abdul El-Sayed: “You're in the UK, how many votes do i want to get in the UK? Zero. I'm never running for office in the UK.”
James Matthews: “Is your election not relevant to the rest of the world?”
Abdul El-Sayed: “Sky News is not viewed in the United States of America, it’s only viewed in the UK, like five people watch.”
James Matthews: “I'm asking you questions, i’m not chasing you.”
Abdul El-Sayed: “I'm going to ask you to stop chasing me around, please.”
Piers Morgan: “If that was Donald Trump, you'd say he's arrogant, obnoxious and patronizing. All for asking perfectly rational questions.”
Piers Morgan: “I thought that was pretty awful by El-Sayed. It revealed to me a slight anger management issue with this guy.”
No.
The “midterm penalty” is ubiquitous.
The President’s party lost house seats in 18/20 postwar midterm elections.
When you take into account approval (due to things like inflation) the 2026 midterm results are normal.
Mostly not a verdict on the incumbent party…
History was made last night.
For months, we were saying that 2026 was the most consequential midterm election of our lifetimes.
Unfortunately, we were right. Sometimes history is to be celebrated; other times, it is to be mourned. Always, it must be reckoned with.
2026 was not simply a blue wave; it was a blue tsunami. It was an ass kicking. It was not simply a bad 2006 midterm election. It was a Watergate-level repudiation. What happened, and why? What are the consequences, and where on earth do we go from here?
When all the votes were counted, the problem wasn’t turnout. Instead, our voters, Republicans, Libertarians, Independents, showed up and voted, and rejected our candidates, voting Democrat instead. We’ve lost the House. We’ve lost the Senate. When all is said and done, we will have lost eight to 10 Senate seats.
We lost in historically red states, like South Carolina and North Carolina, Kansas and Iowa. We lost in purple states, like Michigan, and New Hampshire, and Georgia. And we just barely won by just a single point in bright red states like Florida and Louisiana, and then there’s Texas.
Nowhere are the consequences of this election greater than Texas. In the Lone Star State, we lost every single statewide election. For weeks, I had been publicly warning on this podcast that we were in very real danger of losing everything in Texas. Far too few believed that was possible. I am very, very sorry that it came to pass. Texas has not had a Democrat governor since 1994. We haven’t had a Democrat senator since 1993. Now we’ll have both.
Why were the results so overwhelming? Pundits and analysts will break down the results for weeks or months or even years to come, but several things are already evident today.
Years ago, the very best political advice I ever got was from Heidi. She said, “It’s not about you. It’s about them. It’s about their kids, their families, their hopes, their dreams, their futures.” Too many politicians forget that.
Take the state of Kansas, for example, a state that has not elected a Democrat senator since 1932. It just did. Here’s what exit polling showed were the top issues in Kansas.
Number one, cost of living, energy, and groceries. That was listed as number one by 30.6 percent of voters.
Corruption. Number two, 18.5%.
The cost of the Iran war, 10.1%.
The candidates are terrible, 7.9%.
The Canada trade war, 7.6%.
The GOP didn’t do enough to support Trump, 6.6%.
Republicans didn’t pass the Save America Act, 5.6%.
Trump’s focus on monuments, 5.5%, and data centers and AI, 3.8%.
The top issue, cost of living, is very real. Too many in politics dismissed it. They didn’t understand. They pointed to the macro numbers showing the stock markets soaring, median income at record highs, and poverty at record lows. Those data are true, but they don’t tell all of the story.
Here are some stats that are a lot more real and personal. Spam, Hormel’s processed meat substitute, broke record sales, selling 113 million cans last year. That is nearly as much spam as was sold during the entirety of World War II. 29 percent of Americans have used buy now, pay later for groceries this year. That’s double the share just two years ago.
In August, banks repossessed 42% more homes than they did last year. In 2024, car repossessions topped 2.3 million, above the 2009 peak in the middle of the Great Financial Crisis. In 2025, 6% of 401k holders took hardship withdrawals, paying penalties. That is a record, and triple the norm.
And here’s one that’s really stunning. Americans made more than 75 million paid plasma donations in 2026. That’s another record. That means 200,000 Americans every single day, with a needle in their arm, just to pay for groceries.
That is very real pain from real Americans, and too many Republican politicians seem like they didn’t understand or they didn’t care. Food is too high, gas is too high, diesel is too high, insurance is too high, life is too high.
Tariffs have made everything too expensive, and the Iran war has dragged on too long. It should have been brief, decisive, and over. It needs to end, and we should never, under any circumstances, give the Ayatollah billions of dollars.
There’s a very real economic disconnect. Our K-shaped economy is a yawning divide. Last year, we saw the world’s very first trillionaire, a modern-day Thomas Edison, at the very same time that millions were struggling to feed their families. Data centers being constructed were turning billionaires into centibillionaires, while simultaneously the average American’s electricity bill went up 30% in the last five years.
Understandably, people were pissed off, and elected Republicans didn’t do enough to address their very real pain.
So, what do we do now? We need to listen and respond. We need to champion economic policies that make a real difference in working people’s lives, and we need to deal with the consequences.
Texas is blue. That is a hard sentence to utter. But Texas, today at least, is blue. As we sit here today, I am the only statewide elected Republican who remains in Texas. That’s not something I ever thought I would say.
We can be certain that the Democrats in Austin and in Washington will overshoot. In Texas, they will try to raise taxes dramatically. They may even try to adopt a state income tax, or even a California wealth tax. They will try to shut down the energy industry, destroying jobs across our state. They will embrace the radical transgender agenda. They will persecute those they perceive to be enemies, especially Elon Musk.
And in Washington, they will attack Trump every single day, constantly. Impeachment hearings, subpoenas, his family, cabinet members, business leaders, open persecution, and nonstop retaliation. Make no mistake. Nationally, the radicals are in charge. The communists and the Islamists who have taken over the Democrat Party have now taken over the United States Congress. They will be unleashed.
Sadly, that means many Americans will be hurt. Texans will be hurt. Their assault on business will make Texas a much less attractive place to start or grow a small business. Texas will become more like California if they succeed in halting all new investment into AI.
The economic results will be dramatic. Over $700 billion in new projects are scheduled to start in the next year. If the Democrats shut them all down, our country will very likely go into a recession. That will suit the Democrats just fine. They’ll just blame it all on Donald Trump.
In the next two years, we need to do two things.
One, fight the madness. I will work with Democrats when they’re willing to be reasonable. Last night, I called James Talarico. I congratulated him on his very impressive victory. It was a pleasant conversation, and I told him that I looked forward to working with him to try to benefit Texas.
So, if there are things like flood relief for the Hill Country, or trying to get the space academy to Texas, he and I will work together. But if the newly elected radicals push policies that hurt Texas, raising taxes, destroying jobs, opening the border, releasing violent criminals, threatening our children, undermining our constitutional rights, I will fight with all of my strength to defend Texas and to defend the Constitution.
And number two, we need to rebuild, getting behind policies that directly benefit the constituents we lost.
There’s a complicated story, no doubt, of what happened on Election Day, but as I see it, the key constituencies we lost were blue-collar voters, what had rightly become the core base of our party, Evangelical Christians, who didn’t show up with the same numbers and fervor as prior elections, farmers and ranchers. Tragically, we alienated rural America. Young people, who excitedly had voted Republican in 2024, and who shifted hard blue this cycle. And of course, Hispanics.
For Hispanics, there’s a strong overlap with young people and blue-collar workers. In 2024, just two years ago, I was proud to carry Hispanics statewide in Texas by six points, and we swung the Rio Grande Valley red for the first time in a century. It can be done, but in this election, those Hispanic voters overwhelmingly went back Democrat. We have got to turn that around.
And for young people, we need to be the party of the future. We need to champion policies that expand their future. Our two single biggest legislative accomplishments of the past two years, Trump Accounts and the school choice tax credit, which will unleash tens of billions of dollars in new scholarships for kids, are generationally powerful. I was proud to author both of those transformational policies, and yet too few candidates all across the country ran on that record.
Too few voters were even aware of what we’d accomplished for their kids and their future. But we need to build. We need to expand to continue creating a new investor class for hundreds of millions of Americans, help everyone, every American, become an owner, to have real skin in the game, to create new generations of capitalists ready to reject socialism.
People voted as they did because they were angry. Ironically, the Democrats that they elected are going to advance policies that will make affordability worse. The Democrats want gas prices higher. They want to ban gasoline engines altogether. Their extreme environmental mandates will drive up food prices and the prices of everything else.
But hear me now: we will bring Texas back. I am filled with hope and optimism. Texas will be red again. We have not suddenly become a bunch of tofu-eating, gun-banning, tutu-wearing pinko commie liberals. That ain’t us. Texas is still Texas.
We will rebuild as a true blue-collar party, not by embracing socialism, but by being real free-market conservatives. The way we built the Texas economic miracle in the first place, and we will build and rebuild America as well.
When the zealots overreach, and they will, we will stand ready to lead in the direction of freedom, of prosperity, of safety, and security, and common sense. We will return to a new dawn of freedom in America.
It is dark right now, but it is always darkest before the dawn, and morning is coming. That is my fervent prayer, and that is my commitment to you.
Alex Zevelev retweeted
A sad note on how much business depends on favors from Washington these days.
Alex Zevelev retweeted
Mr. Vice-President,
Please allow me to present a different perspective.
The problem was not the Iran War. It was the cease fire.
If you start a war, you need to win it and finish it – otherwise don’t start it.
This war should have been over six months ago, with the Strait of Hormuz wide open and oil flowing. The second and third tiers of Iranian leadership should have been destroyed, and we should have supported the pro-western forces who could have taken leadership. We stood on the brink of a new, more peaceful Middle East - and then we blinked. We had a chance not only to deny Iran nuclear weapons, but to get rid of the world’s biggest supporter of terrorism.
Instead, we had a cease fire, which was followed by months of will we or won’t we finish the job. Every day was a different message. There still is. Is the war over? Is it about to begin? No one knows. There is confusion and inconsistency.
In June 2025, America was not involved. This was an Israel vs Iran issue.
No one forced the United States to attack Iran then, or in February of 2026. It was a decision made by President Trump. In my opinion, it was the right decision.
Once the decision was made, we should not have stopped until the regime fell. But instead, you negotiated a cease fire that didn’t last, didn’t work and left us in no man’s land, with higher prices and our troops still deployed.
Our troops could have been home, the Navy returned to its bases, a peaceful regime in place , new alliances forged, and gas prices below $3.00 a gallon.
No, Mr. Vice President. It’s not the war. It’s the so-called cease fire.
One of the things the data analysts on our side obsessed over was "composition"—whether the electorate looked close enough to 2024 for Republicans to win. And despite polls that showed a Democrat blowout, the data kept on telling us the same story: in some states turnout was merely OK, in other states it was downright amazing, and in no state was it catastrophic. There was a genuine sense of optimism on our team: our people were showing up.
So, I asked the smartest data guy I know, does that mean we're going to shock the world? "No," he told me. "We might do better than the polls suggest. But the data is telling us that a lot of Trump/Vance 2024 voters are pissed and planning to vote for the other guys. Our voters are turning out, but they may not vote for us."
Well, that looks prophetic now. Our voters did show up. In Florida, for example, the electorate was 9 points more Republican than Democrat, just a couple points worse than 2024. Undoubtedly there were places we could have done better on turnout. But the main problem is not turnout. The main problem is that many people who voted for Trump/Vance in 2024 voted for Democrats in 2026.
There will be a lot of infighting and arguing over what happened and why that is. One of the pollsters I really respect told me that our economic messaging wasn’t sharp enough down the stretch. I’m sure that’s true.
But the real reason we lost is obvious to almost everyone.
Another pollster—one of the smartest people I know in politics, told me yesterday we’d lose the generic ballot by 13 points. I felt negative going into Tuesday, but even I was shocked by this. In his polling, he saw that a lot of Trump 2024 voters were angry and planning to vote for Democrats. He asked those voters who had abandoned us what would cause them to come back on our team. The top four answers, accounting for nearly all of the responses were:
1) End the war
2) Focus on cost of living/inflation
3) Put America First
4) Change our relationship to Israel
Our voters showed up. And the above four reasons are why many of them voted for Democrats. This is according to a pollster who nailed the results. While many spent Monday attacking Rachel Campos Duffy for calling for a diplomatic resolution to the conflict, it turns out her political advice was sound. (She’s also a great person.)
In the next few months, there's going to be a lot of gaslighting. Expect to hear any number of establishment politicians say the solution to our woes is amnesty. I'm open to the idea that we should change enforcement—by focusing more on businesses that hire illegal labor, for instance. But anyone pushing amnesty is lying to you.
The reason we lost is the war. The president himself said so last night.
If you'd like to argue it was worth it, that losing the Senate for the next 6 years was worth it, then do so. Argue it was a worthwhile cost to pay. Agree or disagree, that's at least honest.
But everyone knows why we lost. And any honest conversation about where we go from here must start there.
I remain hopeful about our country. To the people who are pissed off and want to say, “I told you so”: you’re right, you did tell us so. Take that energy into electing Republicans who share your worldview. To the people who are just pissed at the results, you should be. Let’s take that anger and get back to the work of saving our country.
Alex Zevelev retweeted
Your grandparents met once at a church picnic and stayed married for 61 years. You have personally evaluated 11,000 people on your phone and eat dinner standing over a sink.
Alex Zevelev retweeted
Stocks look very expensive when you compare the share prices to earnings per share (Shiller's S&P 500 Cyclically adjusted PE ratio at 40, close to an all-time high), but not when you compare the total valuation of the US corporate sector to the free cash flow (FCF) it generates. That's what's left on the table for the firms' owners after paying the workers, the government and paying for investment. That multiple (Firm Value/FCF) is around 30, close to what it has been over the past decades (see work by Andy Atkeson, @fab_perri and @Jonheathcote ).
The picture changes again when you compare the valuation of all US firms against the sector's total value added. That multiple is close to 4.8, an all-time high!
Why? US corporations have been generating huge amounts of cash. The gap between earnings and FCF is net investment, which has been very low when expressed as a fraction of the total value of US corporations.
That explains why the FCF yield is right at its historical median, while the the earnings yield is at a historic low.
But that could be about to change with the current AI buildout, and the massive investment that's projected to continue in the next decade (see recent work by @SVNieuwerburgh in the BPEA).
If you're buying US stocks now, you're effectively betting that the corporate sector's free cash flow will continue to outgrow the rest of the US economy, knowing that the free cash flows already accounts for a record share of the sector's value added. You're effectively betting on a permanent transformation in favor capital, at the expense of labor.
Check out my post here:
thetwocents.substack.com/p/t…
Alex Zevelev retweeted
97% of US homeowners with a mortgage now have a rate below today’s market rate, per the Economist.
In 2022, it was just 54%.
That’s why the housing market is frozen: almost no one wants to sell and give up a cheap mortgage for one above 7%.
Alex Zevelev retweeted
Hoover Senior Fellow @JohnHCochrane examines why economic policies with a long history of unintended consequences remain popular among American voters.
Watch the latest Grumpy Economist Weekly Rant on Freedom Frequency: thefreedomfrequency.org/p/wh…
Repeal Prop 13 instead of taxing wealth!
fortune.com/2026/10/31/calif…
Alex Zevelev retweeted
Very sad to hear of Jim Andreoni's passing.
He was a pioneer of experimental and behavioral economics with groundbreaking work on altruism and charitable giving. He was also an amazingly nice and generous guy.
A tremendous loss for our profession.
Alex Zevelev retweeted
Here’s our l essay on the California wealth tax in the @nytimes today
nytimes.com/2026/10/29/opini…
Alex Zevelev retweeted
Billionaires should absolutely pay much more in taxes. But I'm not sure California's wealth tax is the way.
My latest video essay for the amazing @nytopinion team:
nytimes.com/2026/10/30/opini…
Alex Zevelev retweeted
🚨 The 2026 Open Source Asset Pricing data release is live! We migrated to CRSP v2, moved the data to Hugging Face, and updated the Python and R download packages. As in every release, the updates show our commitment to having the highest quality asset pricing dataset out there 🧵
Alex Zevelev retweeted
🗳️The entire country is watching to see if California voters will soon approve a proposed one-time, 5% tax on the state's wealthiest residents. Want to know what the fuss is all about? Tune into this fiery SIEPR Economic Summit debate, linked in 🧵 below. #Prop40 #BillionaireTax
Alex Zevelev retweeted
Watch Episode 1 of our Odyssey series made with Grok Imagine.
Let us know in the comments if you'd like a full breakdown of how it was done!
Creative collaboration with @WonderStudiosX and director Dev Walker @glumlot_




























