00:07:17 · Ty Morse
[00:07:17] S0: Interesting. And so it's basically, like, batteries plus bureaucracy?
00:07:21 · Casey Handmer
[00:07:21] S1: Yeah. Plus plus land. Land is, like, ridiculously abundant, though. You know? Like, Nevada is, like, what, 65,000,000 acres or something. It's it's absurdly enormous amount of land, and and and a lot of that land is still federal because back in the day, they they couldn't even give it away. Right? It was so economically marginal. And now this, like, absurd technological deus ex Makena has kind of landed in all our laps, where it's a system that's essentially apparently unbounded economically... Economic productivity. So it's, like, way better than farming was in, like, 1860. And the only thing it needs to operate is is is power, which you can get from from the sun. That's it. Basically, like, The United States, like, income taxation and so on basically only occurred in the last century. Prior to that point, the United States government was was much, much smaller and was funded primarily by tariffs. And so we've had this, like, massive tax and spend thing that was largely put in place by Roosevelt in the nineteen thirties, and it's grown and grown and grown. And and you can see in other countries that, you know, they're starting to run out of places to find revenue to fund the government. Right? But if it... If if instead, like, The United States had managed to retain, like, its small government, like, fairly, like, light touch on the economy through to the present day, and they start saying, oh, we're the feds, and we need a source of revenue to run our government. The feds will be getting into building data centers on, like, federal land in Nevada and then leasing it out to the highest bidder because the revenue available is just absurd. So it's kind of a funny thing that we're in this situation now.
00:08:52 · Ty Morse, Casey Handmer
[00:08:52] S0: It kind of seems like over time, large scale projects are almost becoming sort of illegal. [00:08:58] S1: Yes. Very much so in the last fifty years. [00:09:00] S0: Do you wanna go into that?
00:09:02 · Casey Handmer
[00:09:02] S1: Well, I did I did tweet about this the other day. It's very frustrating to me. Now it is the case that, in general, if you if you murder someone, you go away for a long time. But, you know, the newspaper writers and so on love the outrageous headline where they find, you know, some bizarre confluence of factors that results in in in a murderer being released early or not even getting convicted or whatever. That's fine. You know? Everyone deserves a day in court. Yeah. I prefer to live in a in a world where where justice is imperfect, but, you know, innocent people stay free kind of thing. But on the other hand, the the presumption behind, like, giant projects that are building or maintaining infrastructure for the public good is that it's going to result in a environmental impact with unbounded downside. I can imagine a process that could do that, but it'd be pretty hard work, actually. And and and and just the de facto, like, way that this has kind of worked worked its way through the system over the last fifty years, mostly with regulations, it's not even in the statute, is that if you wanna do anything at all at large scale in California, but also much of the rest of the country, you have to go through this, like, debilitating process that that takes so long and costs so much money and has so many handouts to everyone involved that the... You don't... It's not just that, like, the the project doesn't pencil on paper uniterally, but the sorts of people you need to run these sorts of projects are just not interested. Right? Like, who's gonna sit around in fifteen years waiting for permission to fix some basic thing in their backyard? It's ridiculous. Yeah. So it's just like... I just kind of had Grok run the numbers for me on, like... You know, in terms of, like, the value of statistical life, what is the the net loss to our society for, you know, California's inability to repair the California Aqueduct, which has been... I think, nominally, it... It's... Can transport, like, four and a half million acre feet a year of water to LA from the Sacramento River Delta. But its actual capacity is, like, maybe 50% of that because a couple 100 miles in the southern section have subsided due to groundwater extraction over the last thirty, forty years. And, obviously, it's like... You know, between pumping stations, it's meant to be pretty flat.
00:11:03 · Casey Handmer
And so if section subsides, it will overflow if it's too full. Well, there's not rocket science. Bulldozer concrete done. Okay? And and we know that, you know, when a bit of the freeway falls down or something, we can fix it in a week or two. Like, that capacity does exist. And so instead, we live in this insane situation where the farmers haven't got enough water and Southern California doesn't have enough water and infrastructure already exists in a corridor where it's already been built, where the environmental disturbance has already taken place, and just the process of getting permission to, like, send out, you know, a local road repair crew with a bulldozer and and cement to, like, make this canal work at its design capacity, thus solving everyone's problems. The, like, fix everything easily button is, like, ten years and billions of dollars. Right? So coming back to the value of statistical life, the the economic value that's lost as a result of this of this kind of clot just with this one example is roughly equivalent to 10,000 lives. Right? So if you're, like, I don't know, scrolling on on on TikTok and you run some kid over, that's vehicular manslaughter. And if you're unlucky and you have a bad lawyer, you'll probably go to prison for a while. But, like, you'll get out of prison, and that project will still be in, like, the other... The approval agency hasn't even looked at it yet. Purgatory. Right? And and in that meantime, that one year, like, equivalent to a thousand statistical lives have been have been lost completely just due to our inability to fix it. It drives me crazy. It drives me absolutely crazy. We know we can move extremely fast, and we also know that the key to delivering, like, really cost effective, high value infrastructure at scale for people that benefits everyone is super progressive because it benefits poor people way more than it benefits rich people. Rich people will be able to afford services no matter Rich people are not running out of water. It it it it only harms the poor people when these things fall apart, really, is to move really quickly because because then your labor cost, you know, is less because, you know, you're getting more stuff done in a given unit of time. This is how we built ships really quickly in World War two. It's how we built aircraft, you know, the plants to cross the road here in World War two.
00:13:06 · Casey Handmer, Ty Morse
Just, like, reduced the number of labor hours per unit by a factor of 10 and, and actually increased output by, like, a factor of 50. So so labor did well as well. Everyone got more, basically, just for for moving quickly. But but these days, it's... It seems insane. Like, it's it's essentially impossible to get to get the green light to do it. I mean, this was starting to happen in the fifties, and and Henry Kaiser was was the the entrepreneur who who did the hoop... The the Hoover Dam and a few other things and did the Liberty Ships in Richmond. And he wanted to build an estate up in Lake Tahoe. And he was older by that point. He didn't wanna screw around. So he just had his construction crew up there and build it twenty four hours a day under lights, including six feet of fill and, like, multiple structures and a dock and and a place for his speedboats and and, you know, a couple of large houses and house for guests for staff and so on. And he managed to complete the project before an injunction was able to be filed. Right? Did the whole thing in twenty two days. Right? That's insane. Like, Altadena burned down, what, almost two years ago, twenty months ago. And just now house built? Yes. There are a few now. [00:14:09] S0: There's few. [00:14:10] S1: There are a few now. A year ago, nothing. Now there's been a few houses built, but, you know, they lost 10,000 structures. They'll be, at the current rate, still rebuilding by the time the next fire goes through in twenty years. So, man, there was a housing crisis. Anyway