Skip to main content

Home/ Long Game/ Group items tagged demographics

Rss Feed Group items tagged

anonymous

The New Rules: America's Demographic Edge in 'Post-American' World - 0 views

  • To the amazement of many from my generation, who grew up in real fear of "Soylent Green"-type scenarios of over-population, our primary demographic challenge going forward is to maintain a decent worker-to-retiree ratio as national populations age at an unprecedented speed
  • As Joel Kotkin argues in his recent book, "The Next Hundred Million," America "should emerge by mid-century as the most affluent, culturally rich, and successful nation in human history" as we increase in size to 400 million citizens by 2050.
  • Kotkin sees America's heartland as our most profound demographic asset going forward, noting that this vast and agriculturally rich "flyover country" can easily absorb another 100 million citizens and still leave us, in demographic terms, six times less dense than Germany.
  • ...3 more annotations...
  • Still think China is going to rule this century, weighed down by that unprecedented demographic burden?
    • anonymous
       
      This, alongside the lack of economic flexibility and largely useless land areas, is why I don't see China as a global competitor to the U.S., though I remain open to other arguments.
  • So ask yourself, where do you really think the "clash of civilizations" will unfold in our rapidly modernizing world? Among the most religious societies, or between the more religious and least religious ones? I'm betting on the latter, especially as new bio-technologies proliferate, pitting the "this is my lifers" against the "go forth and multipliers."
  • Most observers of American society lament our alleged over-indulgence in individualism: political scientist Robert Putnam's "bowling alone" metaphor. Kotkin's heartland-focused vision of America's future stands apart from that conventional wisdom by emphasizing our society's capacity for regeneration and reinvention.
  •  
    "To the amazement of many from my generation, who grew up in real fear of "Soylent Green"-type scenarios of over-population, our primary demographic challenge going forward is to maintain a decent worker-to-retiree ratio as national populations age at an unprecedented speed." By Thomas P.M. Barnett in World Politics Review on July 12, 2010
anonymous

There was scale and structure before history - 0 views

  • even if genetics is not determinate or even fundamentally specially insightful, it will at least sharpen the discussions, and move scholars away from arguments of rhetorical excess.
  • The “demic diffusion” model to some extent seems to play into this, where simple demographic population growth due to the ability of farmers to extract more calories per unit of land allowed them to “swamp” the hunter-gatherers.
  • the major problem with these models is that they downplay by understandable omission the higher order social complexity of institutions and identities which characterize humans.
  • ...5 more annotations...
  • The Inca for example did not have full elaborated literacy, and yet had political dominion and cultural hegemony from Ecuador to central Chile.
  • the genetic references are thin and somewhat outdated
  • I think the genetics is now making a stronger case for disruption, confusion, and replacement, than is acknowledged in this article.
  • we must look to punctuation of cultural and demographic change as the norm, rather than the exception. The old diffusion models may be predicated on a level of smoothness and gradualism in historical and social process which are simply not feasible.
  • The long pause of agriculture on the north European plain was partly probably the structural constraint because of the poor fit between southern crops and northern climes. But once a sufficient fit was operative did that naturally result in the rapid sweep of farmers north? Perhaps not.
  •  
    "Until relatively recently the spread of agriculture in Europe, and to some extent the whole world, was pigeon-holed into two maximalist models: cultural or demographic diffusionist. Neither of these models were maximalist in that they denied the impact of culture or demographics in totality, but they tended to be rhetorically brandished in a manner where it was clear which dynamic was the dominant mode of explaining the nature of cultural and genetic variation and their origins."
anonymous

In China, an Unprecedented Demographic Problem Takes Shape | Stratfor - 0 views

  • The Ministry of Education reported Aug. 21 that more than 13,600 primary schools closed nationwide in 2012. The ministry looked to China's dramatically shifting demographic profile to explain the widespread closures, noting that between 2011 and 2012 the number of students in primary and secondary schools fell from nearly 150 million to 145 million.
  • It also confirmed that between 2002 and 2012, the number of students enrolled in primary schools dropped by nearly 20 percent. The ministry's report comes one day after an article in People's Daily, the government newspaper, warned of China's impending social security crisis as the number of elderly is expected to rise from 194 million in 2012 to 300 million by 2025.
  • It is no longer clear that the one-child policy has any appreciable impact on population growth in China.
  • ...3 more annotations...
  • China's low fertility rate (1.4 children per mother, compared with an average of 1.7 in developed countries and 2.0 in the United States) is at least as much a reflection of urban couples' struggles to cope with the rapidly rising cost of living and education in many Chinese cities as it is of draconian enforcement of the policy.
  • The crux of China's demographic challenge lies in the fact that, unlike Japan, South Korea, the United States and Western European countries, China's population will grow old before the majority of it is anywhere near middle-income status, let alone rich.
  • This is historically unprecedented, and its implications are made all the more unpredictable by its coinciding with the Chinese economy's forced shift away from an economic model grounded in the exploitation of inexhaustibly cheap labor toward one in which young Chinese will be expected to sustain the country's economic life as workers and as consumers.
  •  
    "Chinese society is on the verge of a structural transformation even more profound than the long and painful project of economic rebalancing, which the Communist Party is anxiously beginning to undertake. China's population is aging more rapidly than it is getting rich, giving rise to a great demographic imbalance with important implications for the Party's efforts to transform the Chinese economy and preserve its own power in the coming decade."
anonymous

The Tea Party And Demographics - 0 views

  • I see the rise of religious fundamentalism and the emergence of purely symbolic, policy-free movements to "take our country back" as partly psychological expressions of loss in the face of modernity's complexity and diversity. And I think a core divide within conservatism today is between those conservatives who have an Oakeshottian/Burkean view of the necessity and adventure of social change and those who have a Thomist/Straussian view of timeless, eternal truths and cultures that must be defended in every single respect against their enemies. 
  •  
    At The Daily Dish, by Andrew Sullivan on April 29, 2010. The role of demographics in the tea party along with a look at how two opposing views of conservatism could play out.
anonymous

Eight Silly Data Things Marketing People Believe That Get Them Fired. - 1 views

  • It turns out that Marketers, especially Digital Marketers, make really silly mistakes when it comes to data. Big data. Small data. Any data.
  • two common themes
  • 1. Some absolutely did not use data to do their digital jobs.
  • ...74 more annotations...
  • 2. Many used some data, but they unfortunately used silly data strategies/metrics.
  • Silly not in their eyes, silly in my eyes.
  • A silly metric, I better define it :), is one that distracts you for focusing on business investments that lead to bottom-line impact.
    • anonymous
       
      Within the context of my current project, the bottom-line impact would be increased engagement (in the form of donations, clinical study participation, and blood/fluid donation to scientific research).
  • Eight data things that marketing people believe that get them fired…. 1. Real-time data is life changing. 2. All you need to do is fix the bounce rate. 3. Number of Likes represents social awesomeness. 4. # 1 Search Results Ranking = SEO Success. 5. REDUCE MY CPC! REDUCE MY CPC NOW!! 6. Page views. Give me more page views, more and more and more! 7. Impressions. Go, get me some impressions stat! 8. Demographics and psychographics. That is all I need! Don't care for intent!
  • 1. Real-time data is life changing.
  • A lot of people get fired for this. Sadly not right away, because it takes time to realize how spectacular of a waste of money getting to real-time data was.
    • anonymous
       
      This is some REALLY FUNNY SHIT to me. But I'm a nerd.
  • I want you to say: "I don't want real-time data, I want right-time data. Let's understand the speed of decision making in our company. If we make real-time decisions, let's get real time data. If we make decisions over two days, let's go with that data cycle. If it take ten days to make a decision to change bids on our PPC campaigns, let's go with that data cycle." Right-time.
  • Real-time data is very expensive.
  • It is also very expensive from a decision-making perspective
  • even in the best case scenario of the proverbial pigs flying, they'll obsess about tactical things.
    • anonymous
       
      I get this completely. We get hung up on the tactical and lose sight of the strategic.
  • So shoot for right-time data.
  • That is a cheaper systems/platform/data strategy.
  • (And remember even the most idiotic system in the world now gives you data that is a couple hours old with zero extra investment from you. So when you say real time you are really saying "Nope, two hours is not enough for me!").
    • anonymous
       
      THIS is probably the best argument for our using Google Analytics and Google Search to collect data instead of paying large costs to firms that will offer questionable results.
  • That is also a way to get people to sync the data analysis (not data puking, sorry I meant data reporting) with the speed at which the company actually makes decisions (data > analyst > manager > director > VP > question back to manager > yells at the analyst > back to director> VP = 6 days).
  • The phrase "real-time data analysis" is an oxymoron.
  • 2. All you need to do is fix the bounce rate.
  • The difference between a KPI and a metric is that the former has a direct line of sight to your bottom-line, while the latter is helpful in diagnosing tactical challenges.
  • Bounce rate is really useful for finding things you suck at.
  • Along the way you also learn how not to stink. Bounce rate goes from 70% to a manageable 30%. Takes three months.
  • Stop obsessing about bounce rate.
  • From the time people land on your site it might take another 12 – 25 pages for them to buy or submit a lead. Focus on all that stuff. The tough stuff. Then you'll make money.
  • Focus on the actual game. Focus on incredible behavior metrics like Pages/Visit, focus on the Visitor Flow report, obsess about Checkout Abandonment Rate, make love to Average Order Size.
  • 3. Number of Likes represents social awesomeness.
  • it does not take a very long time for your Senior Management to figure out how lame the Likes metric is and that it drives 1. Zero value on Facebook and 2. Zero squared economic value or cost savings to the business.
  • many spectacular reasons
  • Here's one… We are looking at two consumer product brands, the tiny company Innocent Drinks and the Goliath called Tide Detergent.
  • Even with 10x the number of Likes on Facebook the giant called Tide has 4x fewer people talking about their brand when compared to the David called Innocent.
  • As no less than three comments mention below, Innocent is 90% owned by Coca Cola. Fooled me!
  • In a massively large company they've carved out an identity uniquely their own. They refuse to be corrupted by Coca Cola's own Facebook strategy of constant self-pimping and product ads masquerading as "updates." As a result pound for pound Innocent's fan engagement on its page is multiple time better than Coca Cola's - even if the latter has many more likes.
  • 4. # 1 Search Results Ranking = SEO Success.
  • Not going to happen.
  • as all decent SEOs will tell you, is that search results are no longer standardized. Rather they are personalized. I might even say, hyper-personalized. Regardless of if you are logged in or not.
  • When I search for "avinash" on Google I might rank #1 in the search results because I'm logged into my Google account, the engine has my search history, my computer IP address, it also has searches by others in my vicinity, local stories right now, and so many other signals. But when you search for "avinash" your first search result might be a unicorn. Because the search engine has determined that the perfect search result for you for the keyword avinash is a unicorn.
    • anonymous
       
      This is crucial to understand. I will be sharing this, at length, with my boss. :)
  • Universal search for example means that personalized results will not only look for information from web pages, they also look for YouTube/Vimoe videos, social listings, images of course, and so on and so forth.
  • Then let's not forget that proportionaly there are very few head searches, your long tail searches will be huge.
  • Oh and remember that no one types a word or two, people use long phrases.
  • There are a ton more reasons obsessing about the rank of a handful of words on the search engine results page (SERP) is a very poor decision.
  • So check your keyword ranking if it pleases you.
  • But don't make it your KPI.
  • For purely SEO, you can use Crawl Rate/Depth, Inbound Links (just good ones) and growth (or lack there of) in your target key phrases as decent starting points.
  • You can graduate to looking at search traffic by site content or types of content you have (it's a great signal your SEO is working).
  • Measuring Visits and Conversions in aggregate first and segmented by keywords (or even key word clusters) will get you on the path to showing real impact.
  • That gives you short term acquisition quality, you can then move to long term quality by focusing on metrics like lifetime value.
  • 5. REDUCE MY CPC! REDUCE MY CPC NOW!!
  • You should judge the success of that showing up by measure if you made money! Did you earn any profit?
  • Friends don't let friends use CPC as a KPI. Unless said friends want the friend fired.
  • 6. Page views. Give me more page views, more and more and more!
  • Content consumption is a horrible metric. It incentivises sub optimal behavior in your employees/agencies.
  • If you are a news site, you can get millions of page views
  • And it will probably get you transient traffic.
  • And what about business impact from all these one night stands ?
  • If you are in the content only business (say my beloved New York Times) a better metric to focus on is Visitor Loyalty
  • If your are in the lead generation business and do the "OMG let's publish a infographic on dancing monkey tricks which will get us a billion page views, even though we have nothing to do with dancing or monkeys or tricks" thing, measure success on the number of leads received and not how "viral" the infographic went and how many reshares it got on Twitter.
    • anonymous
       
      In other words, use that odd-one-off to redirect attention to the source of that one-off. I'll have to ponder that given our different KPI needs (nonprofit, we don't sell anything).
  • Don't obsess about page views.
  • Then measure the metric closest to that. Hopefully some ideas above will help get you promoted.
  • 7. Impressions. Go, get me some impressions stat!
  • My hypothesis is that TV/Radio/Magazines have created this bad habit. We can measure so little, almost next to nothing, that we've brought our immensely shaky GRP metric from TV to digital. Here it's called impressions. Don't buy impressions.
  • Buy engagement. Define what it means first of course .
  • If you are willing to go to clicks, do one better and measure Visits. At least they showed up on your mobile/desktop site.
  • Now if you are a newbie, measure bounce rate. If you have a tiny amount of experience measure Visit Duration. If you are a pro, measure Revenue. If you are an Analysis Ninja, measure Profit.
  • Impressions suck. Profit rocks.
  • If the simple A/B (test/control) experiment demonstrates that delivering display banner ad impressions to the test group delivers increased revenue, buy impressions to your heart's content. I'll only recommend that you repeat the experiment once a quarter.
  • You can buy impressions if you can prove via a simple controlled experiment that when we show impressions we got more engagement/sales and when we don't show impressions we did not get more engagement/sales.
  • But if you won't do the experiment and you use the # of impressions as a measure of success
  • 8. Demographics and psychographics. That is all I need! Don't care for intent!
  • This is not a metric, this is more of a what data you'll use to target your advertising issue.
  • Our primary method of buying advertising and marketing is: "I would like to reach 90 year old grandmas that love knitting, what tv channel should I advertise on." Or they might say: "I would like to reach 18 to 24 year olds with college education who supported Barack Obama for president." And example of demographic and psychographic segments.
  • We use that on very thin ice data, we bought advertising. That was our lot in life.
  • Did you know 50% of of TV viewership is on networks that each have <1% share? Per industry.bnet.com. I dare you to imagine how difficult it is to measure who they are, and how to target them to pimp your shampoo, car, cement.
  • Intent beats demographics and psychographics. Always.
  • if you have advertising money to spend, first spend it all on advertising that provides you intent data.
  • Search has a ton of strong intent. It does not matter if you are a grandma or a 18 year old. If you are on Baidu and you search for the HTC One, you are expressing strong intent. Second, content consumption has intent built in. If I'm reading lots of articles about how to get pregnant, you could show me an ad related to that
  • The first intent is strong, the second one is weaker.
  • There is a lot of intent data on the web. That is our key strength.
  •  
    This is a really great read by Avinash Kaushik at Occam's Razor. Volunmuous highlights follow.
anonymous

Watch America's looming age imbalance unfold in 4 seconds - 0 views

  • one such visualization shows the dreaded age distribution phenomenon that's projected to occur over the coming decades as Baby Boomers become the oldest generation. When charted with the oldest folks up top and the youngest people at the bottom, societies tend to have age distributions shaped like pyramids, like so:
  • But all those births a couple of generations ago threw the pyramid out of whack, which will have a lasting, noticeable impact. Here's a handy gif Pew made showing that problem playing out over a century:
  • Really, go check out the whole report.
  •  
    "The Pew Research Center has an amazing new report about America's shifting demographics that shows how the country is getting older, less white, and more liberal. The entire report is worth your time, and it includes some beautiful animated visualizations to put the demographic changes in context."
anonymous

War and the American Republic - 0 views

  • I offer three reasons that I believe, taken together, provide an answer: (a) The demographics of the American military (b) Historical inexperience of war and the world, and (c) The impetus from corporate capitalism.
  • The Demographics of the American Military 
  • The composition of most militaries today, including the U.S., suggests that this is indeed the case. The economic and political elites tend not to serve in the military, but very much dictate its priorities. They increasingly have no skin in the game, and a diminishing sense of its human cost.
  • ...10 more annotations...
  • Thucydides clearly cautioned against such trends: ‘The nation that makes a great distinction between its scholars and its warriors will have its thinking done by cowards and its fighting done by fools.’
  • Historical Inexperience of War and the World
  • The last real war on the U.S. mainland was the Civil War, 150 years ago. Not since then has the U.S. experienced war at home.
  • Europeans are also shrewder than Americans about non-Western societies—a byproduct of Europe’s geography, colonial empires, and in some ways, their salad-bowl model of immigration
  • and of this Kantian insight: ‘Out of the crooked timber of humanity, no straight thing was ever made.’ Keener than the Americans that is, whose relative naivete, insularity, and evangelical instincts (religious, political, and economic) only make them more vulnerable to demagogues who cry wolf about threats from foreign cultures.
  • The Impetus from Corporate Capitalism
  • Not usually through boardroom conspiracies, which surely happen, but by staying true to its dominant class character, like an animal who cannot help being any other way, whose one authentic instinct is to sustain and engorge itself. To that end, it uses every tool at its disposal.
  • One such tool is the news media, which has changed drastically in recent decades.
  • It tends to employ company men and women who uphold their bosses’ values and viewpoints—not from coercion but consent, in exchange for some of the spoils.
  • War often boosts the economy (especially via the military-industrial complex) and is usually good for the media.
  •  
    "War is always spoken of as an option; to be averse to it is taken as a sign of weakness. Indeed, why are the Americans so much more jingoistic today than, say, the Europeans? I offer three reasons that I believe, taken together, provide an answer: (a) The demographics of the American military (b) Historical inexperience of war and the world, and (c) The impetus from corporate capitalism. " By Namit Arora at 3 Quarks Daily on September 13, 2010.
anonymous

Will Arizona Be America's Future? - 0 views

  • Demographically, there is no doubt Latinos and other immigrant minorities are America’s future, and on this, Arizona stands on the front lines. Over the past two decades the state has seen its Latino population grow by 180 percent as its racial composition shifted from 72 to 58 percent white. 
  • It is the fact that the state’s swift Hispanic growth has been concentrated in young adults and children, creating a “cultural generation gap” with largely white baby boomers and older populations, the same demographic that predominates in the recent Tea Party protests.
  • boomers grew up in a more insular America than did their parents or their children. Between 1946 and 1964, the years of the boom, the immigrant share of the nation’s population shrunk to an all-time low (under 5 percent) and those who did arrive were largely whites from Europe. Most boomers grew up and lived much of their lives in predominantly white suburbs, residentially isolated from minorities. 
  •  
    Hat Tip from Andrew Sullivan: http://andrewsullivan.theatlantic.com/the_daily_dish/2010/04/a-generational-struggle.html By William H. Frey at Brookings on April 29, 2010. A look at the demographics driving new racial tensions.
anonymous

Russia: Rebuilding an Empire While It Can - 0 views

  • The reset actually had little to do with the United States wanting Russia as a friend and ally. Rather, Washington wanted to create room to handle other situations — mainly Afghanistan and Iran — and ask Russia for help.
  • Russia’s ultimate plan is to re-establish control over much of its former territories. This inevitably will lead Moscow and Washington back into a confrontation, negating any so-called reset, as Russian power throughout Eurasia is a direct threat to the U.S. ability to maintain its global influence.
  • This is how Russia has acted throughout history in order to survive. The Soviet Union did not act differently from most of the Russian empires before it, and Russia today is following the same behavioral pattern.
  • ...22 more annotations...
  • Russia’s defining geographic characteristic is its indefensibility, which means its main strategy is to secure itself.
  • In short, for Russia to be secure it must create some kind of empire.
  • There are two problems with creating an empire: the people and the economy.
  • Russian empires have faced difficulties providing for vast numbers of people and suppressing those who did not conform
  • This leads to an inherently weak economy
  • Russian power must be measured in terms of the strength of the state and its ability to rule the people. This is not the same as the Russian government’s popularity (though former president and current Prime Minister Vladimir Putin’s popularity is undeniable)
  • It is when the Russian leadership loses control over the security apparatus that Russian regimes collapse. For example, when the czar lost control of the army during World War I, he lost power and the Russian empire fell apart.
  • Economic weakness and a brutal regime eventually were accepted as the inevitable price of security and of being a strategic power.
  • Under Josef Stalin, there was massive economic dysfunction and widespread discontent, but Stalin maintained firm control over both the security apparatuses and the army, which he used to deal with any hint of dissent.
  • Moscow is using the same logic and strategies today.
  • Putin then set his sights on a Russian empire of sorts in order to secure the country’s future. This was not a matter of ego for Putin but a national security concern derived from centuries of historic precedent.
  • Putin had just seen the United States encroach on the territory Russia deemed imperative to its survival: Washington helped usher most Central European states and the former Soviet Baltic states into NATO and the European Union; supported pro-Western “color revolutions” in Ukraine, Georgia and Kyrgyzstan; set up military bases in Central Asia; and announced plans to place ballistic missile defense installations in Central Europe. To Russia, it seemed the United States was devouring its periphery to ensure that Moscow would forever remain vulnerable.
  • Over the past six years, Russia has pushed back to some degree
  • Washington has held the misconception that Russia will not formally attempt to re-create a kind of empire. But, as has been seen throughout history, it must.
  • Putin announced in September that he would seek to return to the Russian presidency in 2012, and he has started laying out his goals for his new reign.
  • Russia will begin this new iteration of a Russian empire by creating a union with former Soviet states based on Moscow’s current associations, such as the Customs Union, the Union State and the Collective Security Treaty Organization. This will allow the EuU to strategically encompass both the economic and security spheres.
  • The forthcoming EuU is not a re-creation of the Soviet Union.
  • Putin is creating a union in which Moscow would influence foreign policy and security but would not be responsible for most of the inner workings of each country.
  • The Kremlin intends to have the EuU fully formed by 2015, when Russia believes the United States will return its focus to Eurasia. Washington is wrapping up its commitments to Iraq this year and intends to end combat operations and greatly reduce forces in Afghanistan, so by 2015, the United States will have military and diplomatic attention to spare.
  • It is the creation of a new version of the Russian empire, combined with the U.S. consolidation of influence on that empire’s periphery, that most likely will spark new hostilities between Moscow and Washington.
  • Putin’s other reason for re-establishing some kind of Russian empire is that he knows the next crisis to affect Russia most likely will keep the country from ever resurging again: Russia is dying.
  • The country’s demographics are among some of the world’s worst, having declined steadily since World War I. Its birth rates are well below death rates, and it already has more citizens in their 50s than in their teens. Russia could be a major power without a solid economy, but no country can be a global power without people. This is why Putin is attempting to strengthen and secure Russia now, before demographics weaken it. However, even taking its demographics into account, Russia will be able to sustain its current growth in power for at least another generation. This means that the next few years likely are Russia’s last great moment — one that will be marked by the country’s return as a regional empire and a new confrontation with its previous adversary, the United States.
  •  
    "U.S.-Russian relations seem to have been relatively quiet recently, as there are numerous contradictory views in Washington about the true nature of Russia's current foreign policy. Doubts remain about the sincerity of the U.S. State Department's so-called "reset" of relations with Russia - the term used in 2009 when U.S. Secretary of State Hillary Clinton handed a reset button to her Russian counterpart as a symbol of a freeze on escalating tensions between Moscow and Washington. The concern is whether the "reset" is truly a shift in relations between the two former adversaries or simply a respite before relations deteriorate again."
anonymous

Tea Party Demographics: White, Republican, Older Male with Money - 0 views

  •  
    "Several polls are now out, assessing the demographics of the Tea Party Movement that largely agree the majority of its members are Republican, largely white, above the mean in age and income and voted for John McCain. So do Tea Party people reflect the average American as they represent themselves? Not usually if you are a middle-aged woman of Hispanic background, an African-American male or a union member in New England just scraping by, according to the polls." By Carol Forsloff at Digital Journal on March 30, 2010.
anonymous

Urbanization and Demographics Could Skew China's Economic Rebalancing - 0 views

  • The added burdens facing small- and medium-sized cities, especially those located deep inside China that are sequestered from mainstream global trade, will be substantial and perhaps socially and politically destabilizing. 
  • In July, the Chinese government announced that a revision to the one-child policy had been implemented throughout the country's provinces and regions. The announcement of the revision, which allows couples in which either partner is an only child to have up to two children, heralded the end of the controversial policy.
  • Two decades ago, China's fertility rate fell below 2.1, the generally accepted population replacement rate. Since then, it has dropped to roughly 1.5 or, by some measures, as low as 1.4. These are comparable to fertility rates in Russia and Italy but well below those of the United States, Australia, the Netherlands and many other more advanced economies.
  • ...3 more annotations...
  • The urbanization of the past two decades has altered the country's demographic balance rapidly and profoundly. The change has hastened the decline in fertility and population growth rates, particularly those of China's working-age population, as the size of the country's elderly population has risen.
  • If the government achieves its target, China's urban population will grow by more than 230 million between now and 2030, reaching approximately 975 million.
  • For China's leaders, further urbanization on a significant scale is not optional: It is imperative. China is in the early stages of an effort to rebalance toward an economic model grounded in robust domestic consumption and characterized by greater economic integration between, and equality across, its diverse regions.
  •  
    "China's urban population may grow by as many as 230 million people in the next 15 years. But most growth will take place not in metropolises like Beijing, Shanghai and Chongqing but in the myriad small- and medium-sized satellite cities around them. And as residents flock to these cities, China's working-age population will begin to decline, and its elderly population will grow dramatically."
anonymous

The Strategic Implications of Immigration Reform - 0 views

  • It would make it possible for illegal immigrants currently in the country to seek legal residency and eventually citizenship. Finally, and perhaps most important, the bill would shift the composition of the inflow of legal immigrants, increasing quotas for highly skilled individuals and constraining the number of visas available to people whose family members are U.S. citizens. 
  • The history of U.S. immigration policy is necessarily long and controversial. Not only is the United States the biggest economy in the world, it is also the largest recipient of immigrants.
  • Immigration law has been used to control the legal entry of people based on a wide range of factors.
  • ...10 more annotations...
  • These include placing quotas on nationalities and forbidding the entry of polygamists and political extremists. At the same time, U.S. immigration law has been used to encourage the entry of people with specific skill sets.
  • In 1942 the United States negotiated an agreement with Mexico during an agricultural labor shortage. This agreement, known as the Bracero program, allowed millions of Mexican workers to enter the United States between the time the program was implemented and when it ended in 1964.
  • The program opened the door for significant Mexican migration based on family reunification. What appears to be a more contemporary version of that program -- a temporary worker permit specifically designed to integrate migrant agricultural workers -- was included in the bill introduced Wednesday.
  • Though each new wave of immigration brings with it political and social controversy, the United States' ability to integrate new populations gives it a distinct advantage over many other developed countries.
  • In the first place, Latin American immigrant populations tend to have higher fertility rates than the national average. This allows the United States to maintain a population large enough to drive the world’s largest economy -- in stark comparison with Europe, which is set to experience a notable aging and shrinking of its population.
  • Many students from around the world come to study in the United States, but legal restrictions prevent them from staying and working in the country. The proposed system appears designed to help keep more highly educated foreigners in the United States, a country that depends on technological innovation to create high-skilled, high-value jobs.
  • The generation and protection of intellectual property is a strategic national objective amid rising international competition, and if the proposed law successfully increases high-skilled labor immigration, it will contribute significantly to U.S. competitiveness
  • The Mexican government has long made it a priority to find a way to normalize immigrant status. It also has an interest in encouraging population flows that generate billions of dollars worth of remittances annually to Mexico.
  • The fact that immigration reform is attached to the new border security initiative will sweeten the deal for Mexico during negotiations with the United States.
  • For the United States, the big question now is about global competitiveness, and any reform to immigration will seek to address that question.
  •  
    "A bipartisan group of eight leading U.S. senators on Wednesday officially filed the most comprehensive immigration reform bill since 1990, opening the door for the United States to address an issue that will help to shape the country's economic and demographic future. The bill links the issue of border security with that of immigration and will require the U.S. Department of Homeland Security to significantly ramp up its monitoring of the U.S. border over the next 10 years."
anonymous

The Obama Realignment - NYTimes.com - 1 views

  • But the lesson of the election is that the Obama coalition was truly vulnerable only to a Republican Party that took Obama seriously as an opponent – that understood how his majority had been built, why voters had joined it and why the conservative majority of the Reagan and Bush eras had unraveled.
  • In part, that failure can be blamed on their standard-bearer, Mitt Romney, who mostly ran as a kind of vanilla Republican instead of showing the imagination necessary to reinvent his party for a new era.
  • A weak nominee in many ways, he was ultimately defeated less by his own limitations as a leader, and more by the fact that his party didn’t particularly want to be reinvented, preferring to believe that the rhetoric and positioning of 1980 and 1984 could win again in the America of 2012.
  • ...3 more annotations...
  • But even less starry-eyed conservatives — like, well, myself — were willing to embrace models of the electorate that overstated the Republican base of support and downplayed the Democrats’ mounting demographic advantage.
  • In this sense, just as Reagan Republicanism dominated the 1980s even though the Democrats controlled the House, our own era now clearly belongs to the Obama Democrats even though John Boehner is still speaker of the House.
  • That era will not last forever; it may not even last more than another four years. The current Democratic majority has its share of internal contradictions, and as it expands demographically it will become vulnerable to attack on many fronts. Parties are more adaptable than they seem in their moments of defeat, and there will come a day when a Republican presidential candidate will succeed where Mitt Romney just failed. But getting there requires that conservatives face reality: The age of Reagan is officially over, and the Obama majority is the only majority we have.
  •  
    "2008 was also a unique political moment, when George W. Bush's immense unpopularity was compounded by a financial collapse, and when the possibility of electing the country's first black president fired the imagination of the nation (and the nation's press corps). So it was still possible to regard the Obama majority of '08 as more flukish than transformative - or at the very least, to see it as a fragile thing, easily shattered by poor choices and adverse developments."
anonymous

The Inequality That Matters - 1 views

  • there’s more confusion about this issue than just about any other in contemporary American political discourse.
  • The reality is that most of the worries about income inequality are bogus, but some are probably better grounded and even more serious than even many of their heralds realize. If our economic churn is bound to throw off political sparks, whether alarums about plutocracy or something else, we owe it to ourselves to seek out an accurate picture of what is really going on.
  • Let’s start with the subset of worries about inequality that are significantly overblown.
  • ...107 more annotations...
  • Most analyses of income inequality neglect two major points.
  • First, the inequality of personal well-being is sharply down over the past hundred years and perhaps over the past twenty years as well.
  • by broad historical standards, what I share with Bill Gates is far more significant than what I don’t share with him.
  • Compare these circumstances to those of 1911, a century ago. Even in the wealthier countries, the average person had little formal education, worked six days a week or more, often at hard physical labor, never took vacations, and could not access most of the world’s culture.
  • when average people read about or see income inequality, they don’t feel the moral outrage that radiates from the more passionate egalitarian quarters of society. Instead, they think their lives are pretty good and that they either earned through hard work or lucked into a healthy share of the American dream.
  • In narrowly self-interested terms, that view may be irrational, but most Americans are unwilling to frame national issues in terms of rich versus poor.
  • There’s a great deal of hostility toward various government bailouts, but the idea of “undeserving” recipients is the key factor in those feelings. Resentment against Wall Street gamesters hasn’t spilled over much into resentment against the wealthy more generally.
  • their constituents bear no animus toward rich people, only toward undeservedly rich people.
    • anonymous
       
      Which is how the policy can be reframed to the benefit of those that understand this more cleanly.
  • in the United States, most economic resentment is not directed toward billionaires or high-roller financiers—not even corrupt ones. It’s directed at the guy down the hall who got a bigger raise.
    • anonymous
       
      Provincialism!
  • The high status of the wealthy in America, or for that matter the high status of celebrities, seems to bother our intellectual class most. That class composes a very small group, however
  • All that said, income inequality does matter—for both politics and the economy.
  • To see how, we must distinguish between inequality itself and what causes it. But first let’s review the trends in more detail.
  • Income inequality has been rising in the United States, especially at the very top.
  • The data show a big difference between two quite separate issues
  • income growth at the very top
  • greater inequality throughout the distribution
  • When it comes to the first trend, the share of pre-tax income earned by the richest 1 percent of earners has increased from about 8 percent in 1974 to more than 18 percent in 2007. Furthermore, the richest 0.01 percent (the 15,000 or so richest families) had a share of less than 1 percent in 1974 but more than 6 percent of national income in 2007. As noted, those figures are from pre-tax income, so don’t look to the George W. Bush tax cuts to explain the pattern. Furthermore, these gains have been sustained and have evolved over many years, rather than coming in one or two small bursts between 1974 and today.1
  • Caution is in order, but the overall trend seems robust. Similar broad patterns are indicated by different sources, such as studies of executive compensation. Anecdotal observation suggests extreme and unprecedented returns earned by investment bankers, fired CEOs, J.K. Rowling and Tiger Woods.
  • At the same time, wage growth for the median earner has slowed since 1973.
  • But that slower wage growth has afflicted large numbers of Americans, and it is conceptually distinct from the higher relative share of top income earners. For instance, if you take the 1979–2005 period, the average incomes of the bottom fifth of households increased only 6 percent while the incomes of the middle quintile rose by 21 percent. That’s a widening of the spread of incomes, but it’s not so drastic compared to the explosive gains at the very top.
  • The broader change in income distribution, the one occurring beneath the very top earners, can be deconstructed in a manner that makes nearly all of it look harmless. For instance, there is usually greater inequality of income among both older people and the more highly educated, if only because there is more time and more room for fortunes to vary.
  • Since America is becoming both older and more highly educated, our measured income inequality will increase pretty much by demographic fiat.
  • Economist Thomas Lemieux at the University of British Columbia estimates that these demographic effects explain three-quarters of the observed rise in income inequality for men, and even more for women.2
  • Attacking the problem from a different angle, other economists are challenging whether there is much growth in inequality at all below the super-rich. For instance, real incomes are measured using a common price index, yet poorer people are more likely to shop at discount outlets like Wal-Mart, which have seen big price drops over the past twenty years.3 Once we take this behavior into account, it is unclear whether the real income gaps between the poor and middle class have been widening much at all.
  • And so we come again to the gains of the top earners, clearly the big story told by the data.
  • It’s worth noting that over this same period of time, inequality of work hours increased too. The top earners worked a lot more and most other Americans worked somewhat less. That’s another reason why high earners don’t occasion more resentment: Many people understand how hard they have to work to get there.
  • A threshold earner is someone who seeks to earn a certain amount of money and no more.
  • If wages go up, that person will respond by seeking less work or by working less hard or less often. That person simply wants to “get by” in terms of absolute earning power in order to experience other gains in the form of leisure—whether spending time with friends and family, walking in the woods and so on. Luck aside, that person’s income will never rise much above the threshold.
  • It’s not obvious what causes the percentage of threshold earners to rise or fall, but it seems reasonable to suppose that the more single-occupancy households there are, the more threshold earners there will be, since a major incentive for earning money is to use it to take care of other people with whom one lives.
  • For a variety of reasons, single-occupancy households in the United States are at an all-time high.
  • The funny thing is this: For years, many cultural critics in and of the United States have been telling us that Americans should behave more like threshold earners. We should be less harried, more interested in nurturing friendships, and more interested in the non-commercial sphere of life. That may well be good advice.
  • Many studies suggest that above a certain level more money brings only marginal increments of happiness.
  • What isn’t so widely advertised is that those same critics have basically been telling us, without realizing it, that we should be acting in such a manner as to increase measured income inequality.
  • Why is the top 1 percent doing so well?
  • Their data do not comprise the entire U.S. population, but from partial financial records they find a very strong role for the financial sector in driving the trend toward income concentration at the top.
  • The number of Wall Street investors earning more than $100 million a year was nine times higher than the public company executives earning that amount.
  • The authors also relate that they shared their estimates with a former U.S. Secretary of the Treasury, one who also has a Wall Street background. He thought their estimates of earnings in the financial sector were, if anything, understated.
  • Many of the other high earners are also connected to finance.
  • After Wall Street, Kaplan and Rauh identify the legal sector as a contributor to the growing spread in earnings at the top.
  • Finance aside, there isn’t much of a story of market failure here, even if we don’t find the results aesthetically appealing.
  • When it comes to professional athletes and celebrities, there isn’t much of a mystery as to what has happened.
  • There is more purchasing power to spend on children’s books and, indeed, on culture and celebrities more generally. For high-earning celebrities, hardly anyone finds these earnings so morally objectionable as to suggest that they be politically actionable.
  • We may or may not wish to tax the wealthy, including wealthy celebrities, at higher rates, but there is no need to “cure” the structural causes of higher celebrity incomes.
  • If we are looking for objectionable problems in the top 1 percent of income earners, much of it boils down to finance and activities related to financial markets. And to be sure, the high incomes in finance should give us all pause.
  • some investors opt for a strategy of betting against big, unexpected moves in market prices.
  • Most of the time investors will do well by this strategy, since big, unexpected moves are outliers by definition. Traders will earn above-average returns in good times. In bad times they won’t suffer fully when catastrophic returns come in, as sooner or later is bound to happen, because the downside of these bets is partly socialized onto the Treasury, the Federal Reserve and, of course, the taxpayers and the unemployed.
  • To understand how this strategy works, consider an example from sports betting.
  • if you bet against unlikely events, most of the time you will look smart and have the money to validate the appearance. Periodically, however, you will look very bad
  • Does that kind of pattern sound familiar? It happens in finance, too. Betting against a big decline in home prices is analogous to betting against the Wizards. Every now and then such a bet will blow up in your face, though in most years that trading activity will generate above-average profits and big bonuses for the traders and CEOs. To this mix we can add the fact that many money managers are investing other people’s money.
  • If you plan to stay with an investment bank for ten years or less, most of the people playing this investing strategy will make out very well most of the time. Everyone’s time horizon is a bit limited and you will bring in some nice years of extra returns and reap nice bonuses.
  • And let’s say the whole thing does blow up in your face? What’s the worst that can happen? Your bosses fire you, but you will still have millions in the bank and that MBA from Harvard or Wharton.
  • For the people actually investing the money, there’s barely any downside risk other than having to quit the party early.
  • Moreover, smart shareholders will acquiesce to or even encourage these gambles.
  • They gain on the upside, while the downside, past the point of bankruptcy, is borne by the firm’s creditors.
  • Perhaps more important, government bailouts minimize the damage to creditors on the downside.
  • Neither the Treasury nor the Fed allowed creditors to take any losses from the collapse of the major banks during the financial crisis. The U.S. government guaranteed these loans, either explicitly or implicitly.
  • For better or worse, we’re handing out free options on recovery, and that encourages banks to take more risk in the first place.
  • In short, there is an unholy dynamic of short-term trading and investing, backed up by bailouts and risk reduction from the government and the Federal Reserve. This is not good.
  • But more immediate and more important, it means that banks take far too many risks and go way out on a limb, often in correlated fashion. When their bets turn sour, as they did in 2007–09, everyone else pays the price.
  • And it’s not just the taxpayer cost of the bailout that stings. The financial disruption ends up throwing a lot of people out of work down the economic food chain, often for long periods.
  • In essence, we’re allowing banks to earn their way back by arbitraging interest rate spreads against the U.S. government. This is rarely called a bailout and it doesn’t count as a normal budget item, but it is a bailout nonetheless. This type of implicit bailout brings high social costs by slowing down economic recovery (the interest rate spreads require tight monetary policy) and by redistributing income from the Treasury to the major banks.
  • The more one studies financial theory, the more one realizes how many different ways there are to construct a “going short on volatility” investment position.
  • In some cases, traders may not even know they are going short on volatility. They just do what they have seen others do. Their peers who try such strategies very often have Jaguars and homes in the Hamptons. What’s not to like?
  • The upshot of all this for our purposes is that the “going short on volatility” strategy increases income inequality.
  • In normal years the financial sector is flush with cash and high earnings. In implosion years a lot of the losses are borne by other sectors of society. In other words, financial crisis begets income inequality. Despite being conceptually distinct phenomena, the political economy of income inequality is, in part, the political economy of finance.
  • If you’re wondering, right before the Great Depression of the 1930s, bank profits and finance-related earnings were also especially high.8
  • There’s a second reason why the financial sector abets income inequality: the “moving first” issue.
  • The moving-first phenomenon sums to a “winner-take-all” market. Only some relatively small number of traders, sometimes just one trader, can be first. Those who are first will make far more than those who are fourth or fifth.
  • Since gains are concentrated among the early winners, and the closeness of the runner-ups doesn’t so much matter for income distribution, asset-market trading thus encourages the ongoing concentration of wealth. Many investors make lots of mistakes and lose their money, but each year brings a new bunch of projects that can turn the early investors and traders into very wealthy individuals.
  • These two features of the problem—“going short on volatility” and “getting there first”—are related.
  • Still, every now and then Goldman will go bust, or would go bust if not for government bailouts. But the odds are in any given year that it won’t because of the advantages it and other big banks have.
  • It’s as if the major banks have tapped a hole in the social till and they are drinking from it with a straw.
  • In any given year, this practice may seem tolerable—didn’t the bank earn the money fair and square by a series of fairly normal looking trades?
  • Yet over time this situation will corrode productivity, because what the banks do bears almost no resemblance to a process of getting capital into the hands of those who can make most efficient use of it.
  • And it leads to periodic financial explosions. That, in short, is the real problem of income inequality we face today. It’s what causes the inequality at the very top of the earning pyramid that has dangerous implications for the economy as a whole.
  • A key lesson to take from all of this is that simply railing against income inequality doesn’t get us very far.
  • We have to find a way to prevent or limit major banks from repeatedly going short on volatility at social expense. No one has figured out how to do that yet.
  • It remains to be seen whether the new financial regulation bill signed into law this past summer will help.
  • The bill does have positive features.
  • First, it forces banks to put up more of their own capital, and thus shareholders will have more skin in the game, inducing them to curtail their risky investments.
  • Second, it also limits the trading activities of banks, although to a currently undetermined extent (many key decisions were kicked into the hands of future regulators).
  • Third, the new “resolution authority” allows financial regulators to impose selective losses, for instance, to punish bondholders if they wish.
  • We’ll see if these reforms constrain excess risk-taking in the long run. There are reasons for skepticism.
  • Most of all, the required capital cushions simply aren’t that high, so a big enough bet against unexpected outcomes still will yield more financial upside than downside
  • What about controlling bank risk-taking directly with tight government oversight? That is not practical. There are more ways for banks to take risks than even knowledgeable regulators can possibly control
  • It’s also not clear how well regulators can identify risky assets.
  • Some of the worst excesses of the financial crisis were grounded in mortgage-backed assets—a very traditional function of banks—not exotic derivatives trading strategies.
  • Virtually any asset position can be used to bet long odds, one way or another. It is naive to think that underpaid, undertrained regulators can keep up with financial traders, especially when the latter stand to earn billions by circumventing the intent of regulations while remaining within the letter of the law.
  • For the time being, we need to accept the possibility that the financial sector has learned how to game the American (and UK-based) system of state capitalism.
  • It’s no longer obvious that the system is stable at a macro level, and extreme income inequality at the top has been one result of that imbalance. Income inequality is a symptom, however, rather than a cause of the real problem.
  • The root cause of income inequality, viewed in the most general terms, is extreme human ingenuity, albeit of a perverse kind. That is why it is so hard to control.
  • Another root cause of growing inequality is that the modern world, by so limiting our downside risk, makes extreme risk-taking all too comfortable and easy.
  • More risk-taking will mean more inequality, sooner or later, because winners always emerge from risk-taking.
  • Yet bankers who take bad risks (provided those risks are legal) simply do not end up with bad outcomes in any absolute sense.
  • We’re not going to bring back torture, trial by ordeal or debtors’ prisons, nor should we. Yet the threat of impoverishment and disgrace no longer looms the way it once did, so we no longer can constrain excess financial risk-taking. It’s too soft and cushy a world.
  • That’s an underappreciated way to think about our modern, wealthy economy: Smart people have greater reach than ever before, and nothing really can go so wrong for them.
  • How about a world with no bailouts? Why don’t we simply eliminate the safety net for clueless or unlucky risk-takers so that losses equal gains overall? That’s a good idea in principle, but it is hard to put into practice.
  • Once a financial crisis arrives, politicians will seek to limit the damage, and that means they will bail out major financial institutions.
  • Had we not passed TARP and related policies, the United States probably would have faced unemployment rates of 25 percent of higher, as in the Great Depression. The political consequences would not have been pretty.
  • Bank bailouts may sound quite interventionist, and indeed they are, but in relative terms they probably were the most libertarian policy we had on tap. It meant big one-time expenses, but, for the most part, it kept government out of the real economy (the General Motors bailout aside).
  • So what will happen next?
  • One worry is that banks are currently undercapitalized and will seek out or create a new bubble within the next few years, again pursuing the upside risk without so much equity to lose.
  • A second perspective is that banks are sufficiently chastened for the time being but that economic turmoil in Europe and China has not yet played itself out, so perhaps we still have seen only the early stages of what will prove to be an even bigger international financial crisis.
  • A third view is perhaps most likely. We probably don’t have any solution to the hazards created by our financial sector, not because plutocrats are preventing our political system from adopting appropriate remedies, but because we don’t know what those remedies are.
  • Yet neither is another crisis immediately upon us. The underlying dynamic favors excess risk-taking, but banks at the current moment fear the scrutiny of regulators and the public and so are playing it fairly safe.
  • They are sitting on money rather than lending it out. The biggest risk today is how few parties will take risks, and, in part, the caution of banks is driving our current protracted economic slowdown. According to this view, the long run will bring another financial crisis once moods pick up and external scrutiny weakens, but that day of reckoning is still some ways off.
  • Is the overall picture a shame? Yes. Is it distorting resource distribution and productivity in the meantime? Yes. Will it again bring our economy to its knees? Probably. Maybe that’s simply the price of modern society. Income inequality will likely continue to rise and we will search in vain for the appropriate political remedies for our underlying problems.
    • anonymous
       
      Painfully straightforward.
  •  
    "Does growing wealth and income inequality in the United States presage the downfall of the American republic? Will we evolve into a new Gilded Age plutocracy, irrevocably split between the competing interests of rich and poor? Or is growing inequality a mere bump in the road, a statistical blip along the path to greater wealth for virtually every American? Or is income inequality partially desirable, reflecting the greater productivity of society's stars?"
anonymous

Cars? Not For Us: The Cheapest Generation Explains 'the Freedom of Not Owning' - 1 views

  •  
    "I'm in the demographic that this article is talking about and I nodded my head in agreement to everything they said. My attitudes about lifestyle and my relationship to driving has shaped my value system about new car ownership and home ownership. When I owned a car it was simply a means to an end and not an identity. A method of getting from one place to another. Living in the city (I've lived in several) the car gets beat to hell, so having a new car is largely impractical without an off-street parking space. I also have absolutely no desire to live in distant cul-de-sac style suburbs, and I'd prefer to walk to the store if I can, even though I'm at the point where I'm thinking about buying a house and raising a family.  "
anonymous

Why So Much Anarchy? - 0 views

  • Civil society in significant swaths of the earth is still the province of a relatively elite few in capital cities -- the very people Western journalists feel most comfortable befriending and interviewing, so that the size and influence of such a class is exaggerated by the media.
  • The End of Imperialism. That's right. Imperialism provided much of Africa, Asia and Latin America with security and administrative order. The Europeans divided the planet into a gridwork of entities -- both artificial and not -- and governed. It may not have been fair, and it may not have been altogether civil, but it provided order. Imperialism, the mainstay of stability for human populations for thousands of years, is now gone.
  • The End of Post-Colonial Strongmen. Colonialism did not end completely with the departure of European colonialists. It continued for decades in the guise of strong dictators, who had inherited state systems from the colonialists. Because these strongmen often saw themselves as anti-Western freedom fighters, they believed that they now had the moral justification to govern as they pleased.
  • ...13 more annotations...
  • No Institutions. Here we come to the key element. The post-colonial Arab dictators ran moukhabarat states: states whose order depended on the secret police and the other, related security services. But beyond that, institutional and bureaucratic development was weak and unresponsive to the needs of the population -- a population that, because it was increasingly urbanized, required social services and complex infrastructure.
  • with insufficient institutional development, the chances for either dictatorship or anarchy proliferate. Civil society occupies the middle ground between those extremes, but it cannot prosper without the requisite institutions and bureaucracies.
  • Feeble Identities. With feeble institutions, such post-colonial states have feeble identities. If the state only means oppression, then its population consists of subjects, not citizens. Subjects of despotisms know only fear, not loyalty. If the state has only fear to offer, then, if the pillars of the dictatorship crumble
  • Doctrinal Battles. Religion occupies a place in daily life in the Islamic world that the West has not known since the days -- a millennium ago -- when the West was called "Christendom." Thus, non-state identity in the 21st-century Middle East generally means religious identity.
  • As the Roman Empire collapsed and Christianity rose as a replacement identity, the upshot was not tranquility but violent, doctrinal disputes between Donatists, Monotheletes and other Christian sects and heresies. So, too, in the Muslim world today, as state identities weaken and sectarian and other differences within Islam come to the fore, often violently.
  • Information Technology. Various forms of electronic communication, often transmitted by smartphones, can empower the crowd against a hated regime, as protesters who do not know each other personally can find each other through Facebook, Twitter, and other social media.
  • while such technology can help topple governments, it cannot provide a coherent and organized replacement pole of bureaucratic power to maintain political stability afterwards. This is how technology encourages anarchy.
  • The Industrial Age was about bigness: big tanks, aircraft carriers, railway networks and so forth, which magnified the power of big centralized states. But the post-industrial age is about smallness, which can empower small and oppressed groups, allowing them to challenge the state -- with anarchy sometimes the result.
  • Because we are talking here about long-term processes rather than specific events, anarchy in one form or another will be with us for some time, until new political formations arise that provide for the requisite order. And these new political formations need not be necessarily democratic.
  • When the Soviet Union collapsed, societies in Central and Eastern Europe that had sizable middle classes and reasonable bureaucratic traditions prior to World War II were able to transform themselves into relatively stable democracies
  • But the Middle East and much of Africa lack such bourgeoisie traditions, and so the fall of strongmen has left a void.
  • The real question marks are Russia and China.
  • The possible weakening of authoritarian rule in those sprawling states may usher in less democracy than chronic instability and ethnic separatism that would dwarf in scale the current instability in the Middle East. Indeed, what follows Vladimir Putin could be worse, not better. The same holds true for a weakening of autocracy in China.
  •  
    "Twenty years ago, in February 1994, I published a lengthy cover story in The Atlantic Monthly, "The Coming Anarchy: How Scarcity, Crime, Overpopulation, Tribalism, and Disease are Rapidly Destroying the Social Fabric of Our Planet." I argued that the combination of resource depletion (like water), demographic youth bulges and the proliferation of shanty towns throughout the developing world would enflame ethnic and sectarian divides, creating the conditions for domestic political breakdown and the transformation of war into increasingly irregular forms -- making it often indistinguishable from terrorism. I wrote about the erosion of national borders and the rise of the environment as the principal security issues of the 21st century. I accurately predicted the collapse of certain African states in the late 1990s and the rise of political Islam in Turkey and other places. Islam, I wrote, was a religion ideally suited for the badly urbanized poor who were willing to fight. I also got things wrong, such as the probable intensification of racial divisions in the United States; in fact, such divisions have been impressively ameliorated."
anonymous

The history of inequality (by Peter Turchin) - 0 views

  • Today, the top one per cent of incomes in the United States accounts for one fifth of US earnings. The top one per cent of fortunes holds two-fifths of the total wealth.
  • As the Congressional Budget Office concluded in 2011: ‘the precise reasons for the rapid growth in income at the top are not well understood’.
  • In his book Wealth and Democracy (2002), Kevin Phillips came up with a useful way of thinking about the changing patterns of wealth inequality in the US.
  • ...67 more annotations...
  • He looked at the net wealth of the nation’s median household and compared it with the size of the largest fortune in the US. The ratio of the two figures provided a rough measure of wealth inequality, and that’s what he tracked, touching down every decade or so from the turn of the 19th century all the way to the present.
  • We found repeated back-and-forth swings in demographic, economic, social, and political structures
  • From 1800 to the 1920s, inequality increased more than a hundredfold.
  • Then came the reversal: from the 1920s to 1980, it shrank back to levels not seen since the mid-19th century.
  • From 1980 to the present, the wealth gap has been on another steep, if erratic, rise. Commentators have called the period from 1920s to 1970s the ‘great compression’. The past 30 years are known as the ‘great divergence’.
    • anonymous
       
      I'd like to pull this citation and superimpose another period-chart onto my timeline.
  • when looked at over a long period, the development of wealth inequality in the US appears to be cyclical. And if it’s cyclical, we can predict what happens next.
  • Does observing just one and a half cycles really show that there is a regular pattern in the dynamics of inequality? No, by itself it doesn’t.
  • In our book Secular Cycles (2009), Sergey Nefedov and I applied the Phillips approach to England, France and Russia throughout both the medieval and early modern periods, and also to ancient Rome.
  • And the cycles of inequality were an integral part of the overall motion.
  • Cycles in the real world are chaotic, because complex systems such as human societies have many parts that are constantly moving and influencing each other.
  • Understanding (and perhaps even forecasting) such trend-reversals is at the core of the new discipline of cliodynamics, which looks at history through the lens of mathematical modelling.
    • anonymous
       
      Cliodynamics - Another thing to learn a bit more about.
  • First, we need to think about jobs.
  • One of the most important forces affecting the labour supply in the US has been immigration
  • it turns out that immigration, as measured by the proportion of the population who were born abroad, has changed in a cyclical manner just like inequality.
  • Another reason why the labour supply in the US went up in the 19th century is, not to put too fine a point on it, sex.
  • This connection between the oversupply of labour and plummeting living standards for the poor is one of the more robust generalisations in history.
  • The population of England doubled between 1150 and 1300.
  • causing the population of London to balloon from 20,000 to 80,000.
  • fourfold increase in food prices and a halving of real wages.
  • when a series of horrible epidemics, starting with the Black Death of 1348, carried away more than half of the population, the same dynamic ran in reverse.
  • The tug of war between the top and typical incomes doesn’t have to be a zero-sum game, but in practice it often is
  • Much the same pattern can be seen during the secular cycle of the Roman Principate.
  • Naturally, the conditions affecting the labour supply were different in the second half of the 20th century in the US. An important new element was globalisation
  • an oversupply of labour tends to depress wages for the poorer section of the population. And just as in Roman Egypt, the poor in the US today eat more energy-dense foods — bread, pasta, and potatoes — while the wealthy eat more fruit and drink wine.
  • Falling wages isn’t the only reason why labour oversupply leads to inequality. As the slice of the economic pie going to employees diminishes, the share going to employers goes up.
  • And so in 13th-century England, as the overall population doubles, we find landowners charging peasants higher rents and paying less in wages: the immiseration of the general populace translates into a Golden Age for the aristocrats.
  • the number of knights and esquires tripled between 1200 and 1300.
  • Only the gentry drank wine, and around 1300, England imported 20,000 tuns or casks of it from France per year. By 1460, this declined to only 5,000.
  • In the US between around 1870 and 1900, there was another Golden Age for the elites, appropriately called the Gilded Age.
  • And just like in 13th-century England, the total number of the wealthy was shooting up. Between 1825 and 1900, the number of millionaires (in constant 1900 dollars) went from 2.5 per million of the population to 19 per million.
  • In our current cycle, the proportion of decamillionaires (those whose net worth exceeds 10 million in 1995 dollars) grew tenfold between 1992 and 2007 — from 0.04 to 0.4 per cent of the US population.
  • On the face of it, this is a wonderful testament to merit-based upward mobility. But there are side effects. Don’t forget that most people are stuck with stagnant or falling real wages. Upward mobility for a few hollows out the middle class and causes the social pyramid to become top-heavy.
  • As the ranks of the wealthy swell, so too do the numbers of wealthy aspirants for the finite supply of political positions.
  • The civil wars of the first century BC, fuelled by a surplus of politically ambitious aristocrats, ultimately caused the fall of the Republic and the establishment of the Empire.
  • So far I have been talking about the elites as if they are all the same. But they aren’t: the differences within the wealthiest one per cent are almost as stark as the difference between the top one per cent and the remaining 99.
  • very intense status rivalry
  • Archaeology confirms a genuine and dramatic shift towards luxury.
  • Social Darwinism took off during the original Gilded Age, and Ayn Rand (who argued that altruism is evil) has grown astonishingly popular during what we might call our Second Gilded Age.
  • Twilight of the Elites (2012): ‘defenders of the status quo invoke a kind of neo-Calvinist logic by saying that those at the top, by virtue of their placement there, must be the most deserving’. By the same reasoning, those at the bottom are not deserving. As such social norms spread, it becomes increasingly easy for CEOs to justify giving themselves huge bonuses while cutting the wages of workers.
  • Labour markets are especially sensitive to cultural norms about what is fair compensation, so prevailing theories about inequality have practical consequences.
  • the US political system is much more attuned to the wishes of the rich than to the aspirations of the poor.
  • Inverse relationship between well-being and inequality in American history. The peaks and valleys of inequality (in purple) represent the ratio of the largest fortunes to the median wealth of households (the Phillips curve). The blue-shaded curve combines four measures of well-being: economic (the fraction of economic growth that is paid to workers as wages), health (life expectancy and the average height of native-born population), and social optimism (the average age of first marriage, with early marriages indicating social optimism and delayed marriages indicating social pessimism).
  • In some historical periods it worked primarily for the benefit of the wealthy. In others, it pursued policies that benefited the society as a whole. Take the minimum wage, which grew during the Great Compression era and declined (in real terms) after 1980.
  • The top marginal tax rate was 68 per cent or higher before 1980; by 1988 it declined to 28 per cent.
  • In one era, government policy systematically favoured the majority, while in another it favoured the narrow interests of the wealthy elites. This inconsistency calls for explanation.
  • How, though, can we account for the much more broadly inclusive policies of the Great Compression era? And what caused the reversal that ended the Gilded Age and ushered in the Great Compression? Or the second switch, which took place around 1980?
  • Unequal societies generally turn a corner once they have passed through a long spell of political instability.
  • We see this shift in the social mood repeatedly throughout history — towards the end of the Roman civil wars (first century BC), following the English Wars of the Roses (1455-85), and after the Fronde (1648-53), the final great outbreak of violence that had been convulsing France since the Wars of Religion began in the late 16th century.
  • Put simply, it is fear of revolution that restores equality. And my analysis of US history in a forthcoming book suggests that this is precisely what happened in the US around 1920.
  • The worst incident in US labour history was the West Virginia Mine War of 1920—21, culminating in the Battle of Blair Mountain.
  • Although it started as a workers’ dispute, the Mine War eventually turned into the largest armed insurrection that the US has ever seen, the Civil War excepted. Between 10,000 and 15,000 miners armed with rifles battled against thousands of strikebreakers and sheriff deputies.
  • Quantitative data indicate that this period was the most violent in US history, second only to the Civil War. It was much, much worse than the 1960s.
  • The US, in short, was in a revolutionary situation, and many among the political and business elites realised it.
  • The US elites entered into an unwritten compact with the working classes. This implicit contract included the promise that the fruits of economic growth would be distributed more equitably among both workers and owners. In return, the fundamentals of the political-economic system would not be challenged (no revolution).
  • The deal allowed the lower and upper classes to co-operate in solving the challenges facing the American Republic — overcoming the Great Depression, winning the Second World War, and countering the Soviet threat during the Cold War.
  • while making such ‘categorical inequalities’ worse, the compact led to a dramatic reduction in overall economic inequality.
  • The co-operating group was mainly native-born white Protestants. African-Americans, Jews, Catholics and foreigners were excluded or heavily discriminated against.
  • When Barry Goldwater campaigned on a pro-business, anti-union and anti-big government platform in the 1964 presidential elections, he couldn’t win any lasting support from the corporate community. The conservatives had to wait another 16 years for their triumph.
  • But by the late 1970s, a new generation of political and business leaders had come to power. To them the revolutionary situation of 1919-21 was just history. In this they were similar to the French aristocrats on the eve of the French Revolution, who did not see that their actions could bring down the Ancien Régime — the last great social breakdown, the Fronde, being so far in the past.
    • anonymous
       
      This heavily mirrors many aspects of Strauss & Howe's observations. Namely that generational cohorts roughly conform to archetypes precisely *because* memory of prior situations moves from accessible-memory (in those who have it) to history/myth once those who remember it have died.
  • It is no coincidence that the life of Communism (from the October Revolution in Russia in 1917 to the fall of the Berlin Wall in 1989) coincides almost perfectly with the Great Compression era.
  • when Communism collapsed, its significance was seriously misread. It’s true that the Soviet economy could not compete with a system based on free markets plus policies and norms that promoted equity.
  • Yet the fall of the Soviet Union was interpreted as a vindication of free markets, period. The triumphalist, heady atmosphere of the 1990s was highly conducive to the spread of Ayn Randism and other individualist ideologies. The unwritten social contract that had emerged during the New Deal and braved the challenges of the Second World War had faded from memory.
  • all of these trends are part of a complex and interlocking system. I don’t just mean that everything affects everything else; that would be vacuous.
  • Rather, that cliodynamic theory can tell us specifically how demographic, economic and cultural variables relate to one another, and how their interactions generate social change.
  • Cliodynamics also explains why historical reversals in such diverse areas as economics and culture happen at roughly similar times. The theory of secular cycles was developed using data from historical societies, but it looks like it can provide answers to questions about our own society.
  • Three years ago I published a short article in the science journal Nature. I pointed out that several leading indicators of political instability look set to peak around 2020.
    • anonymous
       
      2020-2025 is a date-range that continues to pop up in my forecasting readings - and from quite a variety of sources.
  • In other words, we are rapidly approaching a historical cusp, at which the US will be particularly vulnerable to violent upheaval. This prediction is not a ‘prophecy’. I don’t believe that disaster is pre-ordained, no matter what we do. On the contrary, if we understand the causes, we have a chance to prevent it from happening. But the first thing we will have to do is reverse the trend of ever-growing inequality.
  •  
    "After thousands of scholarly and popular articles on the topic, one might think we would have a pretty good idea why the richest people in the US are pulling away from the rest. But it seems we don't. As the Congressional Budget Office concluded in 2011: 'the precise reasons for the rapid growth in income at the top are not well understood'. Some commentators point to economic factors, some to politics, and others again to culture. Yet obviously enough, all these factors must interact in complex ways. What is slightly less obvious is how a very long historical perspective can help us to see the whole mechanism."
anonymous

The Regional Implications of Ahmadinejad's Trip to Lebanon - 0 views

  • Israel does not have much to worry about with respect to Iran’s efforts to consolidate its influence on Israel’s northern border. The same, however, cannot be said of the region’s Sunni Arab states, particularly Saudi Arabia, Egypt and Jordan. These states have more to fear from Iran than does Israel.
  • Since the fall of the Baathist regime in Iraq and the subsequent rise of an Iranian-leaning Shia-dominated state, however, the Arab states have been terrified of Iranian power. King Abdullah II of Jordan in 2004 articulated this view when he spoke of the emergence of a “Shia crescent” stretching from Iran to Lebanon in the Middle East.
  •  
    "The extent to which Iran is able to project power into the Levant depends upon Hezbollah maintaining the upper hand in Lebanon. Even though it wields far more power than Lebanon's military, the radical Shia Islamist movement faces a number of challenges to its aim of dominating the Lebanese state. First, Lebanese demographic reality provides for sufficient arrestors in terms of rival sectarian, religious, ideological and political factions. Second, and more important, is the unique role of overseer enjoyed by Syria in the multi-confessional state. " At StratFor on October 13, 2010.
anonymous

Geopolitics Continue Despite WikiLeaks - 0 views

  • STRATFOR sources in the United States, as well as foreign intelligence agencies and diplomatic officials, continued on Monday to speak to STRATFOR about how the leaks had a negative effect on their ability to conduct diplomatic business.
  • Repercussions of the leaked U.S. diplomatic cables therefore are serious and global, not confined to American statecraft. Diplomacy and intelligence professions may very well consider classifying eras as pre- and post-WikiLeaks. We are not sure, and it is too early to tell so close to the actual leaks.
  • Geopolitics is a set of constraints imposed primarily by geography — with demographics and technology playing roles — that limit strategic options for nations.
  • ...3 more annotations...
  • One could argue that WikiLeaks introduces a new set of constraints, of open information that will limit how governments pursue their national interests.
  • It is not clear if anyone wins or loses. Power structures established by geography, demographics and technology remain unaffected.
  • Perhaps we have misread the WikiLeak thesis. Perhaps behind the idea that leaked U.S. diplomatic cables would change geopolitics is not a simple argument of new constraints and enablers emerging, but rather the assumption that the revelation of supposed cynicism and insidious scheming of U.S. diplomats would by itself create a call for change within the American — and global — society. This has not happened. In fact, the U.S. public — as well as the global public — seem to be very much aware of what their diplomats are doing and how they are going about their business. They are, as Joseph Stalin once wrote, quite aware that “sincere diplomacy is no more possible than dry water or wooden iron.”
  •  
    "Julian Assange, founder of WikiLeaks, said over the weekend: "Geopolitics will be separated into pre- and post-cablegate phases." A number of developments on Monday seemed to support his bold thesis, or at least give credence to the supposition that geopolitics will have to take note of the "post-cablegate" era. Nonetheless, STRATFOR disagrees. " At StratFor on December 7, 2010.
anonymous

"The Coming Population Crash": The overpopulation myth - 0 views

  • earce argues that the world’s population is peaking. In the next century, we’re heading not for exponential growth, but a slow, steady decline. This, he claims, has the potential to massively change both our society and our planet: Children will become a rare sight, patriarchal thinking will fall by the wayside, and middle-aged culture will replace our predominant youth culture. Furthermore, Pearce explains, the population bust could be the end of our environmental woes. Fewer people making better choices about consumption could lead to a greener, healthier planet.
  • the carbon emissions of one American is the same as that of 20 Indians, 30 Pakistanis, 40 Nigerians and 250 Ethiopians. If, as economists suggest, the world economy will grow by 400 percent by 2050, then no more than a tenth of that will be a result of population growth. The issue is consumption, and that puts the onus right back on the conspicuous consumers to do something about their economic systems, not least before more developing countries follow the same model.
  • When Paul Ehrlich wrote his famous book ["The Population Bomb"], women were having an average around the world of five or six children; now they’re having an average of 2.6.
  • ...7 more annotations...
  • Urbanization is a factor. When you’re in the countryside, your kids are an economic resource very early. They can help in the fields, they can look after the animals; there are piles of stuff they can do from the age of 4 or 5. Kids are an economic resource, which is why rural families tend to be larger.
  • thanks to advances in sanitation and medicine, women no longer need to have five or six children to make sure that two of them will live to adulthood.
  • Feminism, I suspect, is as much a consequence of falling fertility as a cause, though I am sure they reinforce each other.
  • But once you’re in cities, kids are an economic drain for much, much longer. They can’t help out in the fields because you haven’t got any fields. If they’re going to get a job, they’ve got to be educated, and in most countries that costs money.
  • see the failure of the Catholic Church: It ends up encouraging patriarchal social norms that push women toward ultra-low fertility, such as in Italy.
  • Much of the reproductive revolution happened by keeping young kids from dying. Now we need another revolution to keep the old fitter for longer.
  • If chaos theory taught us anything, it’s that societies head off in all kinds of directions we couldn’t predict. Fifty years ago, if we had taken a slightly different path in industrial chemistry and used bromine instead of chlorine, we’d have burned out the entire ozone layer before we knew what the hell was going on, and the world would have been very different. There’s always scary stuff out there that we may not know about. You can’t predict the future. You can just try and plan for it.
  •  
    "How feminism and pop culture saved Earth from getting too crowded -- and are helping to avert planetary catastrophe" - An interesting article that's buttressed by a wide variety of easily available demographic data.
1 - 20 of 53 Next › Last »
Showing 20 items per page