How Many Semiconductor Chips Are There in a Car?

I recently read a statement that there is something like 1400 individual semiconductor chips in a typical modern car.  I wondered, “Can that be correct?”   1400 is a lot of anything.  I have torn apart whole PCs and found only a few dozen chips.

Chips in cars have big economic significance. As called out on a post back in March, COVID shutdowns of semiconductor plants and other factors meant a shortage of critical chips for cars. This has led to extensive shutdowns of car and truck assembly lines in 2021, affecting employment and auto maker profits.  It is estimated that the world lost 11.3 million units of production in 2021 due to the chip shortage, and may lose another 7 million units in 2022.

But back to 1400  chips…I did not find the One True Pronouncement of chips in cars (a promising N Y Times article lay tantalizingly behind a paywall). But I found a number of statements that corroborated that order of magnitude, and also fleshed out the many uses for such chips.

This picture is worth maybe 1400 words:

Source

Here is an even more detailed diagram (sorry, hard to read):

Source

Cars and trucks have something like 100 distinct electronics modules, and each module has multiple chips. Wiring in cars is expensive and vulnerable, so it is better to distribute the information processing rather than run a bunch of wires back to one central processor.

The chip supply situation should sort itself out by 2024, if all goes well. Meanwhile, electronics has become the tail that wags the automotive dog – – electronics have gone from being just 18% of a car’s cost in 2000, to being 40% of its cost in 2020 , and projected to be 45% by 2030:

When is it rational to give up on Covid?

Omicron is highly contagious, but has far lower rates of associated hospitalization and death. By one estimate it is essentially 3 times deadlier than the standard flu, which is bad, but modest compared to previous variants of Covid-19. The vaccines, especially the mRNA vaccines, appear to help a lot towards further mitigating the cost of infection. That all said, there’s no reason to yet be confident it precludes one from “long Covid” symptoms, many of which are moderately terrifying to a relatively healthy person such as myself.

But, after being vaccinated and begging everyone in your life to get vaccinated, is there anything else we can do at this point? There is a cost-benefit analysis happening in all of our heads now, and many of us who were stridently in the “isolate at home and wait until the vaccine miracle arrives” camp got our miracle, only to find out other people were…less enthusiastic. Then Omicron showed up and it started to feel like the only options are to either return to home isolation (perhaps even more strictly than before) or just accept that you’re going to get it.

I don’t know the answer to this question, but as I sit here, wondering if any body ache or cough is the beginning of “my turn” with Covid, there isn’t the fear or rage I would have previously expected. Just a quiet resignation, a hope that my to-do-list doesn’t grow to unmanageable proportions while I am down, and a gratitude that my entire family (in the broadest possible definition) is vaccinated and boosted.

The road here has been long and dumb, but it also might be near the end. Not because we won, but because we’ve arrived at a point where more people will survive their bad decision-making while imposing a far smaller cost on the rest of us than before. Which is fine, I guess.

But is it? Or have we just let the experience of the last two years beat down our expectations to the point where we’ll willing to accept an endemic version of mild Covid and move on with our lives? You’d think the main take away would be that mankind has arrived at a point where we can make a bespoke vaccine in 18 months (it probably should be), but in all honesty I find our incredible innovation less shocking than how easily grotesque anti-science fictions have become not just limits on public health, but bonafide popular campaign strategies, rigid spines capable of supporting functioning political coalitions. Angry, dangerous people have found each other, found community, and many very ambitious people have figured out how to speak directly to them. I don’t see any way that isn’t a problem going forward.

I remain more optimistic than pessimistic with regards to our global future, but I can’t shake the feeling that this particular denouement to the pandemic should be viewed cautiously in how it portends for the near future.

A paper that needs to be written: Does WebMD save lives?

I have a few friends who are physicians. Often, they tell me tales of crazy patients who did/said (both) crazy things. Often, the topic of eHealth platforms like WebMD comes up. Each of those friends has expressed a variant of anger at those platforms because patients self-diagnose. Thinking about it, its clear that they think that the platforms make health outcomes worse.

But is that correct? One could reply that there are a few studies suggesting that the platforms are providing reliable information. One could also reply that it solves a problem of asymmetric information whereby the doctors cannot easily “hide” information to their patients. But both replies are, in my opinion, a bit lazy. A more important question is: did it save lives?

Let me take a personal example. A few months ago, my two year old got sick. He had a fever with a temperature of 38.8 celsius. That had me worried a bit. However, I googled the information and found that children tend to have higher body temperatures than adults and the range of “worrisome” temperatures is thus a slight notch higher. This information got me reassured and I simply waited it out and kept monitoring the temperature. I did not consume any medical services in the end.

Now, lets do a proper counterfactual in which the technological constraint facing me is that of the 1970s or 1960s — not medical dark ages by any means. What would I have done absent the internet? Most likely, I would have gone to a clinic for a consult. The physician doing that consult would not have been available for another patient while he told me to go home, wait three days (or give him baby tylenol), visit back only if the temperature increased above 39 celsius.

That example may appear trivial, but it illustrates the point about how WebMD and other eHealth platforms might be saving lives: they liberate medical resources by eliminating ignorance about trivial problems that are time-consuming for physicians. In fact, I might go a step further by pointing out that there were numerous “grandmother’s remedies” still being held as true in the 1960s and 1970s — beliefs that may have been counterproductive and would have forced physicians to needlessly expend resources.

I tried to find economic studies about the effect of eHealth platforms (especially if they tested the mechanism above). Unfortunately, I found absolutely nothing. This is a paper that needs to be written.

Fiction for Christmas

I hacked Christmas this year to get two books I had been hearing about from reviewers and friends: Project Hail Mary and My Struggle by Knausgård. I wrapped the sci-fi one for my husband, because he will like it. I handed the weird one to him and asked him to wrap it for me. I killed many birds with one stone. The people who read econ blogs will appreciate my accomplishment.

Right after Christmas I had a plane trip that provided some reading time for My Struggle. I like it. As a warning to others, I wonder if the reason “everyone” thinks it is so relatable is that the types of people who review books share the author’s burning desire to be a writer.

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Happy New Year!

Did you notice that social media had much less traffic and activity today? It seems like even less than on Christmas.

I was instantly sick about all of the emails that went out early in the COVID times from companies that said that “we’re in this together”. Frankly – no we weren’t. Lots of people dissented and still do today.

To a great degree, we share a great deal in common. If you didn’t work today, then you probably spent time with family and friends – it’s a relatively secular holiday. Even if you did work, you probably resented it a little.

But, we do share common experiences otherwise. Make sure that you get home safely tonight. Maybe check-in on your friends in the morning. Be sure to reflect on your life from the past year. Plan like you have many years in front of you and live like you have a single day in front of you.

Happy new year everyone from Economistwritingeveryday.com !

Is an Academic Career Still Worth It?

Being a professor is still great, but the alternatives are getting better fast.

I’m glad I started a PhD in 2009; I wanted to learn more economics and the opportunity cost was low, with the worst job market in a generation. When I went on the job market in 2013, I still thought academia was such a clear favorite that I didn’t even apply to private-sector or government jobs. I wanted to teach, yes, but above all I wanted freedom- the freedom to choose my own research topics, to think deeply, to not have a boss, to not spend 40+ hours every week in an office.

It’s easy to find essays about how academic jobs are terrible, or at least much worse than they used to be. To me, being a tenure-track academic is still great work if you can get it, for all the reasons Bryan Caplan explains here. But I do think the quality of the job is standing still while the alternatives get better. The academic superiority that seemed obvious to me in 2009 and 2013 no longer seems obvious in 2021, due to three big changes:

Higher Demand: The demand for workers with quantitative and/or programming abilities has never been higher. My impression is that now anyone with the ability to do a PhD in a quantitative subject could be making six figures in tech, data science, or finance within a few years if they set their mind to it. Of course, this is simply a difference of degree; its always been the conventional wisdom that you could make more money outside of academia. The gap seems to be growing now, but to me the more important change is

Remote Work: Quality, high-paying remote jobs have gone from rare in 2019 to common today, which is a game-changer for many decisions, including academic vs non-academic. Perhaps the worst part of an academic career is that it forces everyone to move- getting a PhD usually requires moving, and getting your first academic job almost certainly does. This is a huge cost for those who value family and community, a cost many people are unwilling to pay. In 2014 my wife’s career had just brought us to New Orleans, but the closest tenure-track job offer I had was a thousand miles away at Creighton University in Omaha. I took the job and spent the next three years flying back and forth, partly because I wanted to be in academia, but partly because there were no good private sector or government options for an Econ PhD in New Orleans either at the time. Back then the private sector and government economist jobs were plentiful but generally meant moving to one of a few cities (DC, NYC, SF, Boston) and spending all day in an office, so I ignored them. Today I wouldn’t.

Campus vs The Internet: So the practical side of non-academic jobs is getting better, but what about the life of the mind? When I first went to college I loved taking classes in new subjects and going to the events and seminars that were always happening on campus, and part of the appeal of being a professor was to be able to keep doing that. In graduate school I liked attending the seminars where visiting speakers would present their latest research, and hoped to get a job at research-oriented university where I could keep doing that. But these benefits of being on campus don’t seem so important anymore. Partly its that I feel too busy to take advantage of them; most of the time there’s a speaker on campus talking about something cool like a new translation of the Odyssey, I’m either catching up on work or home with my kids. But mostly the internet means this sort of thing is available to everyone all the time. I may have missed Emily Wilson’s talk at my campus but I heard her on Conversations with Tyler. I’m not at an R1 school with scholars in my field presenting new research every month, but there are now more great research seminars online than I have time to watch. The Internet makes it increasingly easy for anyone with the motivation to participate in the life of the mind regardless of where they live or what their job is- certainly as consumers, and in a future post I’ll highlight the increasingly impressive scholarly production coming from non-academics.

2021: Our Most Popular Posts

While the blog got its start with Joy Buchanan in mid-2020, we are now just finishing up our first full year and now have a full weekly slate of bloggers. This seems like a good opportunity to reflect on our most popular posts from each of our regular bloggers. We hope you enjoy looking back at these popular posts.

Monday: Mike Makowsky

Makowsky‘s most popular post was from May 2021, titled “Academic Publishing: How I think we got here.” This post generated a significant amount of discussion on Twitter among economists and other academics, and is the second most widely read post on this blog with almost 10,000 views. Makowsky outlined the history and incentives of “how we got here” in terms of the problems with academic publishing, and he is skeptical that there is any easy fix. It seems there is nothing economists love arguing about more than our profession itself. (Follow Makowsky on Twitter)

Tuesday: Scott Buchanan

Scott Buchanan‘s most popular post is “Money as a Social Construct” is from September 2020. It discusses the very basic definition of what we mean by money, and the importance of social trust for both the functioning of money and general social order. The related theme of cryptocurrencies is something he has written a lot about in the last few months of 2020. (He is not yet on Twitter!)

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Mouse Wars: Amazon Mousetrap Reviews as Literature

I have looked at various mouse traps on Amazon. The reviews there are a tremendous source of information. Folks get passionate about their battles with the little rodents who invade and foul their homes. Some reviews soar to literary heights. Here is a user who pours out his despair over being bested by a mouse:

Earthlings Beware!!!! The Toughest Mouse in the World Still Lives: You Could Be NEXT!!!!!!!

Reviewed in the United States on June 30, 2020

These traps were incredibly easy to used and bait. However, I bought these traps To prevent my pets or children from getting injured and to spare my wife from picking up the dead mouse if I wasn’t home. In theory it was the perfect conceptualized mouse trap for a busy house. When this trap arrived I was ready to declare war on the invaders. I put on my camo gear, covered my face with camo paint took some peanut butter out of the cabinet and baited this rodent killing machine. I turned the switch to “set” and tucked it in a spot where I saw mouse droppings. Then I shut off all the lights, Turned on my night vision goggles and waited. Nothing happened, that fury bastard beat me, but I was determined to win the war. I repeated the process the second night only this time I used popcorn to make a trail to the plastic rodent guillotine. I set the trap and went to bed. By dawn I woke up like a child on Christmas, went running down the stairs and to the trap. Boom! The indicator on the side said mouse caught! The pride of winning this battle washed over me. I had defended my castle against an fierce enemy . But wait, why is the trap so light? Surely if a dead mouse was in here I would have been able to feel the weight difference of such a light and sleekly designed trap. I rotated the device in my hand to peer inside of the killing machine. There I stood, with all the pride draining from my short lived victory. The mouse had indeed been attracted to the trap, it followed the popcorn trail of happiness right inside of the devil’s mouth to feast on the peanut butter buffet set up inside. Once inside it tripped the killing mechanism as designed. But this mouse in my house was no ordinary mouse. He must have been a ninja mouse because he dodged the killing instrument likely with a three quarter lateral spin and landed on one hand. He proceeded to eat the peanut butter, then chew his way out of the trap to warn the other ninja mice. I was beaten, defeated by a mouse. I packed up my family and our belongings and moved to new house leaving our old house to the victor. At my new house though, we adopted 70 cats, and although we smell like a mixture of broken dreams and cat urine we never heard from the ninja warrior mouse or his friends again.

 Tomcat Kill & Contain Mouse Trap, 2 Traps  , review by “Brain“

Here is gangsta-style epic, ending in a bitter-sweet victory:

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Effective Advocacy

What does effective political advocacy look like? There is an entire school of thought dedicated to effective altruism. Givewell.org exists solely to evaluate and promote efficient, high-impact charities to help donors maximize the value their donations create. But what about political advocacy? It doesn’t fall neatly within the realm of altruism or charity – there is certainly nothing wrong with advocacy on behalf of yourself or a group you count yourself among, but it’s not altruistic in the classic sense. It also doesn’t conform to the neater forms of dollar efficiency or target outcome analysis that a charity might be evaluated along. Political outcomes don’t always lend themselves to intuitive metrics, or even agreement over whether an outcome should be counted a good or bad thing. There’s nothing especially convenient about political advocacy as a tool for welfare maximization, but that doesn’t free us from its necessity. Abandoning politics for it’s frequent ugliness concedes the power of of governance to the ugliest among us.

Political advocacy requires, nearly by definition, to interface with government institutions. In the case of a democracy, this means working within the limits and incentive structures of politics, and all of the complexity that entails. Leaving behind the relatively straightforward prices and incentives of the marketplace, as well as the fungibility of direct charitable donations, politics demands coping with indirect routes to measurable outcomes and, most importantly, the inevitable arrival of oppositional forces. It doesn’t take long in any meaningful advocacy engagement before the arrival of people and resources working explicitly, if not directly, counter to your efforts. This is not something you have to deal with in most charitable endeavors – efforts to shutdown city food banks and block textbooks from reaching African schoolchildren are thankfully rare.

So, again, what might an effective advocacy practice look like? I imagine it would bare scarce resemblance to your modal election campaign, where the emphasis is on manufacturing turnout in a zero-sum competition with your opponent. I also doubt it would look like most lobbying efforts, where the dollars at work represent the selection-effects of classic collective action problems. Rather than the efficient welfare maximization that a hypothetical EffectiveAdvocacy.org would aspire to, the lion share of lobbying simply represents the interests of firms and groups who have identified a bundle of policies whose benefits are sufficiently concentrated within them that it is worth organizing, while at the same time the broader social costs are sufficiently spread out that an opposing forces cannot similarly get over the organizational hump (Yes, I know this is a restatement of the standard Olsonian collective action model of lobbying. Bear with me.)

Effective advocacy would demand working with not just the limited resources of a group without a built-in constituency of concentrated benefits, but also a focused strategy of identifying welfare-maximizing policies unlikely to generate organizable opposition. That’s a tall order. I mean, if you’re going to convince me such a thing is feasible, an example would go a long way. Can you name one?

I’m glad I asked.

The good people at Marginal Revolution posting a link to a paper about the de facto banning of HIV home tests that has been in effect at the FDA for almost 40 years. Suffice it to say, the banning of home tests for a deadly communicable disease is a horrifying policy, one that has without question killed people by the thousands at best and the millions at worst. I imagine the origin story of this regulatory horror is not dissimilar from the opposition to the HPV vaccine – a macabre desire to raise the costs of an undesired behavior. Homosexuality was viewed by many in the not distant past as a choice, HIV/AIDS was killing homosexuals, and a home test would feasibly lower the risk to gay men, so advocates successfully blocked the development of tests. Why did opposition to HPV vaccines find less success? Because HPV is connected to cervical cancer in everyone, and being pro-cancer in the 2010’s enjoyed less popular support than being anti-gay in the 1980s.

This story is a tragic history, but it also represents an opportunity for effective advocacy. The policy, born of homophobia, would never enjoy such popular support today. It survives almost exclusively of regulatory inertia today. A minimum of lobbying resources could feasibly end the policy in large part because it’s originating constituency is diminished and would be unlikely to successfully organize.

This, in a nutshell, is the opportunity for effective advocacy – the strategic search for welfare-harming policies whose originating constituencies have shrunken or disappeared. It’s not particularly exciting, the notion of combing through policies on the books, agency by agency, looking for harmful policies with little to no continuing political support, but it is in that lack of excitement within which the opportunity lies. Reform of headline- and chryon-inducing policies have built in opposition. Any political or politics-adjacent effort that garners significant media attention always promises similar attention for opposing forces. It is within the boring stuff, the bureaucratic protocols and categorical bans produced at the margins of historical political battles, where advocacy, particularly crowd-sourced efforts, motivated by the same sentiments behind effective altruism and efficient charity might make contributions to our government institutions in the best way possible: by making changes that nobody can get attention from opposing.

That’s just one opportunity for effective altruism: inattention. There are no doubt more, but I suspect many will share at least a sliver of unsexy monotony. A better world through boredom.