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Keiko E

Jonah Lehrer on Taxes, Regulations and Uncertainty - WSJ.com - 0 views

  • The problem with these makeshift laws and contested rules is that they inject a dose of unpredictability into the market precisely when it needs reassurance. Instead of calming our frazzled nerves, these provisions make it even harder to plan. And that is a very dangerous thing, as the mere whiff of uncertainty can dramatically skew our decision-making.
  • New regulations have also increased market uncertainty.
  • impact of uncertainty on decision-making processes in the brain. A recent experiment by neuroeconomists at the California Institute of Technology used a simple gambling game in which people bet on whether the next card drawn from a deck of 20 cards would be red or black.
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  • But such unpredictable times make the stabilizing hand of government more important than ever. We need institutions that take some of the ambiguity out of the marketplace, that allow us to plan as rationally as possible. Instead, we're stuck with a tax code and a regulatory horizon that seem to be doing the opposite.
Javier E

Scholar Behind Viral 'Oligarchy' Study Tells You What It Means - 0 views

  • Let's talk about the study. If you had 30 seconds to sum up the main conclusion of your study for the average person, how would you do so? I'd say that contrary to what decades of political science research might lead you to believe, ordinary citizens have virtually no influence over what their government does in the United States. And economic elites and interest groups, especially those representing business, have a substantial degree of influence. Government policy-making over the last few decades reflects the preferences of those groups -- of economic elites and of organized interests.
  • People mean different things by the term oligarchy. One reason why I shy away from it is it brings to mind this image of a very small number of very wealthy people who are pulling strings behind the scenes to determine what government does. And I think it's more complicated than that. It's not only Sheldon Adelson or the Koch brothers or Bill Gates or George Soros who are shaping government policy-making. So that's my concern with what at least many people would understand oligarchy to mean.
  • What "Economic Elite Domination" and "Biased Pluralism" mean is that rather than average citizens of moderate means having an important role in determining policy, ability to shape outcomes is restricted to people at the top of the income distribution and to organized groups that represent primarily -- although not exclusively -- business.
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  • When did things start to become this way? It's possible that in earlier eras, that we don't have data for, that things were better. But in the time period that we do have data for, there's certainly no such evidence. Over time responsiveness to elites has grown.
  • Talk about some examples of policy preferences that the majority holds that the government is not responsive to. Financial reform -- the deregulatory agenda has been pursued, somewhat more fervently among Republicans but certainly by Democrats as well in recent decades. Higher minimum wage. More support for the unemployed. More support for education spending. We'd see, perhaps ironically, less liberal policies in some domains like religious or moral issues. Affluent people tend to be more socially liberal on things like abortion or gay rights.
  • Given your findings, what do you make of the great sense of persecution that people at the top appear to feel in recent years? Is there a phenomenon you came by that speaks to this, and does that perpetuate the cycle of policy moving in their direction? It's certainly not something our study or data has addressed. But it's part of an effort to defend, in the face of growing inequality, their advantages and wealth.
  • what kind of data do you use to test this theory and how confident are you in the conclusions? What we did was to collect survey questions that asked whether respondents would favor or oppose some particular change in federal government policy. These were questions asked across the decades from 1981 to 2002. And so from each of those questions we know what citizens of average income level prefer and we know what people at the top of the income distribution say they want. For each of the 2,000 possible policy changes we determined whether in fact they've been adopted or not. I had a large number of research assistants who spent years putting that data together.
  • What are the three or four most crucial factors that have made the United States this way? Very good question. I'd say two crucial factors. One central factor is the role of money in our political system, and the overwhelming role that affluent individuals that affluent individuals and organized interests play, in campaign finance and in lobbying. And the second thing is the lack of mass organizations that represent and facilitate the voice of ordinary citizens. Part of that would be the decline of unions in the country which has been quite dramatic over the last 30 or 40 years. And part of it is the lack of a socialist or a worker's party.
  • Your study calls to mind something that Dennis Kucinich, the former congressman, said years ago during the recession. He essentially said the class war is over and the working class lost. Was he right? I mean, for now, it certainly seems like it. The middle class has not done well over the last three and a half decades, and certainly has not done well during the Great Recession. The political system responded to the crisis in a way that led to a pretty nice recovery for economic elites and corporations.
  • sometimes non-rich people favor an agenda that supports the rich. For instance, middle class tea partiers want low taxes on the highest earners, just as Steve Forbes does. Isn't that still democracy at work, albeit in an arguably perverse way? Yes, absolutely. I think people are entitled to preferences that conflict with their immediate interests -- narrowly conceived interests. That may be an example of that. Opposition to the estate tax among low-income individuals is another. But what we see in this study is that's not what this is happening. We don't look at whether preferences expressed by these different groups are consistent or inconsistent with their interests, narrowly conceived. We just look at whether they're responded to by government policy-makers, and we find that in the case of ordinary Americans, they're not.
  • A new political science study that's gone viral finds that majority-rule democracy exists only in theory in the United States -- not so much in practice. The government caters to the affluent few and organized interest groups, the researchers find, while the average citizen's influence on policy is "near zero."
  • TPM spoke to Gilens about the study, its main findings and its lessons.
Javier E

A New Report Argues Inequality Is Causing Slower Growth. Here's Why It Matters. - NYTimes.com - 0 views

  • Is income inequality holding back the United States economy? A new report argues that it is, that an unequal distribution in incomes is making it harder for the nation to recover from the recession
  • The fact that S.&P., an apolitical organization that aims to produce reliable research for bond investors and others, is raising alarms about the risks that emerge from income inequality is a small but important sign of how a debate that has been largely confined to the academic world and left-of-center political circles is becoming more mainstream.
  • “Our review of the data, as well as a wealth of research on this matter, leads us to conclude that the current level of income inequality in the U.S. is dampening G.D.P. growth,” the S.&P. researchers write
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  • To understand why this matters, you have to know a little bit about the many tribes within the world of economics.
  • There are the academic economists who study the forces shaping the modern economy. Their work is rigorous but often obscure. Some of them end up in important policy jobs (See: Bernanke, B.) or write books for a mass audience (Piketty, T.), but many labor in the halls of academia for decades writing carefully vetted articles for academic journals that are rigorous as can be but are read by, to a first approximation, no one.
  • Then there are the economists in what can broadly be called the business forecasting community. They wear nicer suits than the academics, and are better at offering a glib, confident analysis of the latest jobs numbers delivered on CNBC or in front of a room full of executives who are their clients. They work for ratings firms like S.&P., forecasting firms like Macroeconomic Advisers and the economics research departments of all the big banks.
  • they are trying to do the practical work of explaining to clients — companies trying to forecast future demand, investors trying to allocate assets — how the economy is likely to evolve. They’re not really driven by ideology, or by models that are rigorous enough in their theoretical underpinnings to pass academic peer review. Rather, their success or failure hinges on whether they’re successful at giving those clients an accurate picture of where the economy is heading.
  • worries that income inequality is a factor behind subpar economic growth over the last five years (and really the last 15 years) is going from an idiosyncratic argument made mainly by left-of center economists to something that even the tribe of business forecasters needs to wrestle with.
  • Because the affluent tend to save more of what they earn rather than spend it, as more and more of the nation’s income goes to people at the top income brackets, there isn’t enough demand for goods and services to maintain strong growth, and attempts to bridge that gap with debt feed a boom-bust cycle of crises, the report argues. High inequality can feed on itself, as the wealthy use their resources to influence the political system toward policies that help maintain that advantage, like low tax rates on high incomes and low estate taxes, and underinvestment in education and infrastructur
  • The report itself does not break any major new analytical or empirical ground. It spends many pages summarizing the findings of various academic and government economists who have studied inequality and its discontents, and stops short of recommending any radical policy changes
silveiragu

Economists tested 7 welfare programs to see if they made people lazy. They didn't. - Vox - 0 views

  • For as long as there have been government programs designed to help the poor, there have been critics insisting that helping the poor will keep them from working. But the evidence for this proposition has always been rather weak.
  • And a recent study from MIT and Harvard economists
  • found "no systematic evidence that cash transfer programs discourage work.
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  • he programs covered in the study have a pretty wide geographic spread. There are four in Latin America (two in Mexico, one each in Nicaragua and Honduras), two in Southeast Asia (Philippines and Indonesia), and one in Morocco
  • . The 95 percent confidence interval for how the programs affected the employment rate ranged from a 1.6 percentage point decline to a 0.9 point increase. There just isn't any change happening here
  • Some other studies find that cash encourages work
  • But it's worth being skeptical about welfare queen claims in rich countries as well.
  • There's a substantial body of evidence showing that the EITC encourages work
  • But even unrestricted cash programs aren't likely to have a major effect on work in rich countries
  • . A number of studies in the US in the 1970s examined "negative income tax" programs
  • The studies found very mild declines in work
  • A much better experiment in Canada, where an entire town got a guaranteed income by way of a negative income tax, found even milder reductions in wor
  • There's no doubt that poorly designed social programs can deter work. Aid to Families With Dependent Children, the pre–welfare reform welfare program, was found to decrease hours worked by 10 to 50 percen
  • Who would work under that condition
Javier E

A Voter Revolt Against 'Shareholder Value' - WSJ - 0 views

  • a Feb. 29 quotation from Leslie Moonves, chairman of CBS, CBS -1.76 % that sums up everything wrong with today’s media culture—and with corporate America.
  • Reflecting on the Trump phenomenon at a media and technology conference, Mr. Moonves said that “It may not be good for America, but it’s damn good for CBS.”
  • Mr. Moonves is saying that CBS’s only responsibility is to maximize profits, not only in its entertainment division, but also in its news operation
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  • He knows that what his network is doing is against the national interest. He has just enough conscience to be aware that it is “terrible,” but not nearly enough to stop doing it. It might impair shareholder value, after all.
  • Mr. Moonves is suggesting that there is no difference in principle between entertainment and news. Both should be judged by the same standard—ratings. If policy speeches don’t attract large enough audiences, cut to a Trump rally.
  • If the leading purveyors of broadcast journalism make no distinction between news and entertainment, then who can blame viewers for seeing no difference between entertainment and politics?
  • American politicians and parties have used entertainment to draw audiences for the better part of two centuries. But there used to be countervailing forces, including prestigious broadcast news organizations. Not anymore. Once these organizations served as gatekeepers; now they are open-door enablers.
  • They are all in the grip of the same misunderstanding, that their business begins and ends with maximizing shareholder value.
  • They may believe that this is a statutory requirement or a fiduciary duty. If so, they are mistaken
  • It is Milton Friedman’s theory. “There is one and only one social responsibility of business,” he wrote in “Capitalism and Freedom,” “to use its resources and engage in activities designed to increase its profits.”
  • corporate law imposes no enforceable legal duty to maximize either profits or share prices.
  • And it is not politically sustainable. This is the clear meaning of the 2016 presidential election.
  • As a policy argument, Friedman’s thesis flunks key empirical tests
  • during the 1970s, inflation, recession, a stagnant stock market and rising competition from abroad created an opening for Friedman’s theory, which soon dominated corporate boardrooms.
  • In the name of maximizing shareholder value, corporations moved plants and jobs around the world, paid the lowest wages they could get away with, and scheduled work assignments to maintain managerial “flexibility,” whatever the consequences for workers’ families. Meanwhile, their lobbyists engineered a myriad of special interest breaks in the corporate tax code.
  • Now we can see what four decades of pursuing shareholder value at the expense of everything else has yielded
  • Public confidence in corporations is at rock-bottom, and public anger is sky-high
  • The revolt against the corporate economic agenda—free trade, a generous immigration policy, lower corporate taxes and the rest—is sweeping the country.
  • As the Republican rank and file has turned against corporations and New Democrats have given ground to left-wing populists, big business has been left politically homeless.
  • It will take corporate America a long time to climb out of this self-created hole.
  • Its first step should be to back long-overdue proposals for improving workers’ lives and incomes. Paid family leave is an idea whose time has come; so is a catch-up increase in the federal minimum wage; so are stable and predictable schedules for part-time workers.
  • Allowing workers to share in profits and productivity increases would be another good step.
  • Above all, corporate leaders should grasp the distinction between immediate gain and self-interest rightly understood. Pushing for the last increment of profit over the next quarter and the one after that comes at the expense of the strategies that can leave firms best positioned for the future.
  • America needs a new generation of corporate statesmen.
Javier E

Our Elites Still Don't Get It - The New York Times - 0 views

  • John Bowlby is the father of attachment theory, which explains how humans are formed by relationships early in life, and are given the tools to go out and lead their lives
  • “All of us, from cradle to grave, are happiest when life is organized as a series of excursions, long or short, from the secure base provided by our attachment figures.”
  • The relationships that form you are mostly things you didn’t choose: your family, hometown, ethnic group, religion, nation and genes.
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  • The things you do with your life are mostly chosen: your job, spouse and hobbies.
  • At our foundation, we were a society with strong covenantal attachments — to family, community, creed and faith. Then on top of them we built democracy and capitalism that celebrated liberty and individual rights.
  • The deep covenantal institutions gave people the capacity to use their freedom well. The liberal institutions gave them that freedom.
  • This delicate balance — liberal institutions built atop illiberal ones — is now giving way. The big social movements of the past half century were about maximizing freedom of choice. Right-wingers wanted to maximize economic choice and left-wingers lifestyle choice. Anything that smacked of restraint came to seem like a bad thing to be eliminated.
  • We’ll call this worldview — which is all freedom and no covenant — naked liberalism
  • The problem with naked liberalism is that it relies on individuals it cannot create.
  • Naked liberals of right and left assume that if you give people freedom they will use it to care for their neighbors, to have civil conversations, to form opinions after examining the evidence. But if you weaken family, faith, community and any sense of national obligation, where is that social, emotional and moral formation supposed to come from? How will the virtuous habits form?
  • Naked liberalism has made our society an unsteady tree. The branches of individual rights are sprawling, but the roots of common obligation are withering away.
  • Freedom without covenant becomes selfishness. And that’s what we see at the top of society, in our politics and the financial crisis
  • In my experience, most people under 40 get this. They sense the social and moral void at the core and that change has to come at the communal, emotional and moral level.
  • And that’s what we see at the bottom of society — frayed communities, broken families, opiate addiction.
  • Freedom without a unifying national narrative becomes distrust, polarization and permanent political war.
  • covenantal attachments they become fragile. Moreover, if you rob people of their good covenantal attachments, they will grab bad ones.
  • First, they will identify themselves according to race. They will become the racial essentialists you see on left and right
  • Then they resort to tribalism. This is what Donald Trump provides. As Mark S. Weiner writes on the Niskanen Center’s blog, Trump is constantly making friend/enemy distinctions, exploiting liberalism’s thin conception of community and creating toxic communities based on in-group/out-group rivalry.
  • Trump offers people cultural solutions to their alienation problem. As history clearly demonstrates, people will prefer fascism to isolation, authoritarianism to moral anarchy.
  • If we are going to have a decent society we’re going to have to save liberalism from itself. We’re going to have to restore and re-enchant the covenantal relationships that are the foundation for the whole deal. The crucial battleground is cultural and prepolitical.
  • Freedom without connection becomes alienation.
  • Many public intellectuals were trained in the social sciences and take the choosing individual as their mental starting point. They have trouble thinking about our shared social and moral formative institutions and how such institutions could be reconstituted.
  • Congressional Republicans think a successful tax bill will thwart populism. Mainstream Democrats think the alienation problem will go away if we redistribute the crumbs a bit more widely.
  • History is full of examples of nations that built new national narratives, revived family life, restored community bonds and shared moral culture: Britain in the early 19th century, Germany after World War II, America in the Progressive Era. The first step in launching our own revival is understanding that the problem is down in the roots.
caelengrubb

Will a Student Loan Debt Crisis Sink the U.S. Economy? - 1 views

  • Student debt has more than tripled since 2004, reaching $1.52 trillion in the first quarter of 2018, according to the Federal Reserve — second only to mortgage debt in the U.S. College costs have outpaced the Consumer Price Index more than four-fold since 1985, and tuition assistance today is often harder to come by, particularly at schools without large endowments.
  • About 44 million graduates hold student debt, and today’s graduates leave school holding promissory notes worth an average of $37,000, raising concerns that the burden is creating a cascade of pressures compelling many to put off traditional life milestones
  • The storyline, as it has emerged, is that college debt delays buying a house, getting married, having children and saving for retirement, and there is some evidence that this is happening.
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  • But the truth is more nuanced, and, statistically at least, the question of how burdensome student debt is and the extent to which it is disrupting major life events depends on a number of factors, including when you graduated from college with debt.
  • For those who graduated with debt as the economy was crashing, it was a double-whammy, said Keys, “so you’re seeing delayed marriage, delayed child-bearing, which are at least in part a function of the ongoing damage from the Great Recession.
  • Before the Great Recession, student debt levels were below auto loans, credit card debt and home-equity lines of credit in the ranking of household debt. Since then, student loan debt has surpassed these other debts
  • A $1,000 increase in student loan debt lowers the homeownership rate by about 1.5 percentage points for public four-year college-goers during their mid 20s, equivalent to an average delay of 2.5 months in attaining homeownership,
  • Individuals who attain higher education average higher salaries, which translates into a higher tax base. With higher levels of education attainment, there is also less reliance on social welfare programs, as individuals who attain higher education are more likely to be employed, less likely to be unemployed, and less likely to be in poverty. Higher levels of education are also associated with greater civic engagement, as well as lower crime.”
  • In 2014, the largest chunk of student debt — nearly 40% — belonged to people owing between $1 and $10,000.
  • The bigger problem, Webber said, comes when students take out loans and then don’t graduate from college
  • Nationally, 60% of people who start at a four-year institution wind up graduating within the next six years
  • There are other ways in which all debt is not created equal. “Many of the people who have the largest loans and are the most likely to default are also the people who got the worst credentials and poorest quality training when they graduated or potentially didn’t even graduate
  • But although $1.5 trillion is a big number, it may not be an unreasonable amount given the value it is creating
  • In 2002, a bachelor’s degree holder could expect to make 75% more than someone with just a high school diploma, and nearly a decade later that premium had risen to 84%
  • A bachelor’s degree is worth about $2.8 million over a lifetime, the study also found.
  • Australia has a system that links the repayment of loans with the tax system. “Income-driven repayment options have been created in the U.S.,” said Perna, “but these options are more cumbersome and administratively complex than in Australia and some other nations. By linking the amount of the monthly payment to an individual’s income, income-driven repayment options can help to protect borrowers against the risk of non-repayment. But a more seamless system wouldn’t require borrowers to annually report their income to the U.S. Department of Education
  • “Promise” or “free tuition” programs cropping up in some states are also worth examining
  • “Right now there is, frankly, very little accountability that schools have; they practically have no skin in the game. If students default on their loans, there is no bad effect for the school.”
Javier E

Martha Raddatz and the faux objectivity of journalists | Glenn Greenwald | Comment is free | guardian.co.uk - 2 views

  • virtually no journalists are driven by this type of objectivity. They are, instead, awash in countless highly ideological assumptions that are anything but objective.
  • this renders their worldview every bit as subjective and ideological as the opinionists and partisans they scorn.
  • there were no questions about whether the US would have the legal or moral right to launch an aggressive attack on Iran. That the US has the right to attack any country it wants is one of those unexamined assumptions in Washington discourse, probably the supreme orthodoxy of the nation's "foreign policy community".
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  • that is a conception of objectivity so shallow as to be virtually meaningless, in large part because the two parties so often share highly questionable assumptions and orthodoxies on the most critical issues.
  • The highly questionable assumptions tacitly embedded in the questions Raddatz asked illustrate how this works, as does the questions she pointedly and predictably did not ask.
  • the very idea that Iran poses some kind of major "national security" crisis for the US – let alone that there is "really no bigger national security" issue "this country is facing" – is absurd. At the very least, it's highly debatable.The US has Iran virtually encircled militarily. Even with the highly implausible fear-mongering claims earlier this year about Tehran's planned increases in military spending, that nation's total military expenditures is a tiny fraction of what the US spends. Iran has demonstrated no propensity to launch attacks on US soil, has no meaningful capability to do so, and would be instantly damaged, if not (as Hillary Clinton once put it) "totally obliterated" if they tried. Even the Israelis are clear that Iran has not even committed itself to building a nuclear weapon.
  • That Iran is some major national security issue for the US is a concoction of the bipartisan DC class that always needs a scary foreign enemy. The claim is frequently debunked in multiple venues. But because both political parties embrace this highly ideological claim, Raddatz does, too.
  • one of the most strictly enforced taboos in establishment journalism is the prohibition on aggressively challenging those views that are shared by the two parties. Doing that makes one fringe, unserious and radical: the opposite of solemn objectivity.
  • To the extent that she questioned the possibility of attacking Iran, it was purely on the grounds of whether an attack would be tactically effective,
  • At best, "objectivity" in this world of journalists usually means nothing more than: the absence of obvious and intended favoritism toward either of the two major political parties. As long as a journalist treats Democrats and Republicans more or less equally, they will be hailed – and will hail themselves – as "objective journalists".
  • there was no discussion about the severe suffering imposed on Iranian civilians by the US, whether the US wants to repeat the mass death and starvation it brought to millions of Iraqis for a full decade, or what the consequences of doing that will be.
  • all of Raddatz's questions were squarely within the extremely narrow – and highly ideological – DC consensus about US foreign policy generally and Iran specifically: namely, Iran is a national security threat to the US; it is trying to obtain nuclear weapons; the US must stop them; the US has the unchallenged right to suffocate Iranian civilians and attack militarily
  • the same is true of Raddatz's statements and questions about America's entitlement programs.
  • That social security is "going broke" – a core premise of her question – is, to put it as generously as possible, a claim that is dubious in the extreme. "Factually false" is more apt. This claim lies at the heart of the right-wing and neo-liberal quest to slash entitlement benefits for ordinary Americans – Ryan predictably responded by saying: "Absolutely. Medicare and Social Security are going bankrupt. These are indisputable facts." – but the claim is baseless.
  • this is the primary demonstrable myth being used by the DC class – which largely does not need entitlements – to deceive ordinary Americans into believing that they must "sacrifice" the pittances on which they are now living:"Which federal program took in more than it spent last year, added $95 billion to its surplus and lifted 20 million Americans of all ages out of poverty?"Why, social security, of course, which ended 2011 with a $2.7 trillion surplus."That surplus is almost twice the $1.4 trillion collected in personal and corporate income taxes last year. And it is projected to go on growing until 2021, the year the youngest Baby Boomers turn 67 and qualify for full old-age benefits."So why all the talk about social security 'going broke?' … The reason is that the people who want to kill social security have for years worked hard to persuade the young that the social security taxes they pay to support today's gray hairs will do nothing for them when their own hair turns gray."That narrative has become the conventional wisdom because it is easily reduced to a headline or sound bite. The facts, which require more nuance and detail, show that, with a few fixes, Social Security can be safe for as long as we want."
  • Nonetheless, Raddatz announced this assertion as fact. That's because she's long embedded in the DC culture that equates its own ideological desires with neutral facts. As a result, the entire discussion on entitlement programs proceeded within this narrow, highly ideological, dubious framework
  • That is what this faux journalistic neutrality, whether by design or otherwise, always achieves. It glorifies highly ideological claims that benefit a narrow elite class (the one that happens to own the largest media outlets which employ these journalists) by allowing that ideology to masquerade as journalistic fact
  • is often noted that the Catholic Church stridently opposes reproductive rights. But it is almost never noted that the Church just as stridently opposes US militarism and its economic policies that continuously promote corporate cronyism over the poor. Too much emphasis on that latter fact might imperil the bipartisan commitment to those policies, and so discussion of religious belief is typically confined to the safer arena of social issues. That the Church has for decades denounced the US government's military aggression and its subservience to the wealthiest is almost always excluded from establishment journalistic circles, even as its steadfast opposition to abortion and gay rights is endlessly touted.
pier-paolo

Opinion | How Fear Distorts Our Thinking About the Coronavirus - The New York Times - 0 views

  • When it comes to making decisions that involve risks, we humans can be irrational in quite systematic ways
  • when the emotions we feel aren’t correctly calibrated for the threat or when we’re making judgments in domains where we have little knowledge or relevant information, our feelings become more likely to lead us astray.
  • when Professors Tversky and Kahneman framed the question differently, such that the first option would ensure that only 400 people would die and the second option offered a 33 percent chance that nobody would perish and a 67 percent chance that all 600 would die, people’s preferences reversed. Seventy-eight percent now favored the second option.
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  • But when the disease is real — when we see actual death tolls climbing daily, as we do with the coronavirus — another factor besides our sensitivity to losses comes into play: fear.
  • asked people to imagine that the United States was preparing for an outbreak of an unusual Asian disease that was expected to kill 600 citizens. To combat the disease, people could choose between two options: a treatment that would ensure 200 people would be saved or one that had a 33 percent chance of saving all 600 but a 67 percent chance of saving none. Here, a clear favorite emerged: Seventy-two percent chose the former.
  • Using a nationally representative sample in the months following Sept. 11, 2001, the decision scientist Jennifer Lerner showed that feeling fear led people to believe that certain anxiety-provoking possibilities (for example, a terrorist strike) were more likely to occur.
  • we presented sad, angry or emotionally neutral people with a government proposal to raise taxes. In one version of the proposal, we said the increased revenue would be used to reduce “depressing” problems (like poor conditions in nursing homes). In the other, we focused on “angering” problems (like increasing crime because of a shortage of police officers).
  • when the emotions people felt matched the emotion of the rationales for the tax increase, their attitudes toward the proposal became more positive. But the more effort they put into considering the proposal didn’t turn out to reduce this bias; it made it stronger.
katherineharron

Sanders rips GOP senators for voting for tax cuts but objecting to increased unemployment benefits - CNNPolitics - 0 views

  • Vermont Sen. Bernie Sanders on Wednesday lambasted Republican senators who had objected to provisions in the $2 trillion coronavirus stimulus package that they said would incentivize unemployment, accusing them of fixating on minor perks for workers amid a crisis.
  • "Here we are in the midst of the worst economic downturn perhaps since the Great Depression, tens of millions of people are worried to death about how they're going to feed their families, pay their rent, prevent a foreclosure," Sanders added. "And these guys are just staying up nights worrying about low-income workers getting a few bucks more."
  • "You have all kinds of people here who voted, including Sen. Graham and the others, they voted for a trillion dollars in tax breaks for the 1% and large corporations and now they're really worried that a low-income worker might receive extended unemployment plus $600 a week," Sanders said.
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  • "I just wanted to make it clear that I will not sit back, nor should anybody sit back and allow these guys to attack the needs of low-income workers, especially at a time when in this particular bill there are $500 billion available to the President for all kinds of corporate welfare and chicanery," he added. "They don't object to that, they worry about people getting a few bucks more."
tongoscar

Violence in Mexico peaks as cartels fight over drugs and avocados - Los Angeles Times - 0 views

  • Mexico’s multibillion-dollar avocado industry, headquartered in Michoacan state, has become a prime target for cartels,
  • More than a dozen criminal groups are battling for control of the avocado trade in and around the city of Uruapan,
  • After seizing control of the forest in March, the Viagras announced a tax on residents who owned avocado trees, charging $250 a hectare in “protection fees.”
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  • Homicides are at an all-time high in Mexico, which has long been home to the world’s most powerful and violent narcotics traffickers. Yet much of the killing today has little to do with drugs.
  • In Mexico City, bar owners in upscale neighborhoods must pay taxes to a local gang, while on the nation’s highways, cargo robberies have risen more than 75% since 2016.
  • Compared with drug trafficking, a complex venture that requires managing contacts across the hemisphere, these new criminal enterprises are more like local businesses. The bar to entry is far lower.
  • Mexican forces, with strong U.S. support, focused on capturing or killing cartel leaders. But that strategy backfired as the big cartels fractured into smaller and nimbler organizations that sought criminal opportunity wherever they could find it.
  • Security has become so tenuous that in June a group of avocado producers bought ads in several national newspapers warning of an “irreparable impact” to the industry unless officials address the problem.
  • In August, the U.S. Department of Agriculture temporarily suspended its avocado inspection program in a town near Uruapan after threats to some of its employees.
Javier E

There's More to Life Than Being Happy - Emily Esfahani Smith - The Atlantic - 1 views

  • "Everything can be taken from a man but one thing," Frankl wrote in Man's Search for Meaning, "the last of the human freedoms -- to choose one's attitude in any given set of circumstances, to choose one's own way."
  • This uniqueness and singleness which distinguishes each individual and gives a meaning to his existence has a bearing on creative work as much as it does on human love. When the impossibility of replacing a person is realized, it allows the responsibility which a man has for his existence and its continuance to appear in all its magnitude. A man who becomes conscious of the responsibility he bears toward a human being who affectionately waits for him, or to an unfinished work, will never be able to throw away his life. He knows the "why" for his existence, and will be able to bear almost any "how."
  • "To the European," Frankl wrote, "it is a characteristic of the American culture that, again and again, one is commanded and ordered to 'be happy.' But happiness cannot be pursued; it must ensue. One must have a reason to 'be happy.'"
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  • the book's ethos -- its emphasis on meaning, the value of suffering, and responsibility to something greater than the self -- seems to be at odds with our culture, which is more interested in the pursuit of individual happiness than in the search for meaning.
  • How do the happy life and the meaningful life differ?
  • about 4 out of 10 Americans have not discovered a satisfying life purpose. Forty percent either do not think their lives have a clear sense of purpose or are neutral about whether their lives have purpose. Nearly a quarter of Americans feel neutral or do not have a strong sense of what makes their lives meaningful
  • the single-minded pursuit of happiness is ironically leaving people less happy, according to recent research. "It is the very pursuit of happiness," Frankl knew, "that thwarts happiness."
  • Examining their self-reported attitudes toward meaning, happiness, and many other variables -- like stress levels, spending patterns, and having children -- over a month-long period, the researchers found that a meaningful life and happy life overlap in certain ways, but are ultimately very different. Leading a happy life, the psychologists found, is associated with being a "taker" while leading a meaningful life corresponds with being a "giver."
  • "Happiness without meaning characterizes a relatively shallow, self-absorbed or even selfish life, in which things go well, needs and desire are easily satisfied, and difficult or taxing entanglements are avoided,"
  • While happiness is an emotion felt in the here and now, it ultimately fades away, just as all emotions do
  • Happiness, they found, is about feeling good. Specifically, the researchers found that people who are happy tend to think that life is easy, they are in good physical health, and they are able to buy the things that they need and want.
  • nearly 60 percent all Americans today feel happy without a lot of stress or worry
  • Happy people get a lot of joy from receiving benefits from others while people leading meaningful lives get a lot of joy from giving to others,"
  • People who have high meaning in their lives are more likely to help others in need.
  • What sets human beings apart from animals is not the pursuit of happiness, which occurs all across the natural world, but the pursuit of meaning, which is unique to humans
  • People whose lives have high levels of meaning often actively seek meaning out even when they know it will come at the expense of happiness. Because they have invested themselves in something bigger than themselves, they also worry more and have higher levels of stress and anxiety in their lives than happy people.
  • Meaning is not only about transcending the self, but also about transcending the present moment -- which is perhaps the most important finding of the study,
  • Most importantly from a social perspective, the pursuit of happiness is associated with selfish behavior -- being, as mentioned, a "taker" rather than a "giver." The psychologists give an evolutionary explanation for this: happiness is about drive reduction. If you have a need or a desire -- like hunger -- you satisfy it, and that makes you happy. People become happy, in other words, when they get wh
  • Meaning, on the other hand, is enduring. It connects the past to the present to the future. "Thinking beyond the present moment, into the past or future, was a sign of the relatively meaningful but unhappy life,"
  • Having negative events happen to you, the study found, decreases your happiness but increases the amount of meaning you have in life.
  • "If there is meaning in life at all," Frankl wrote, "then there must be meaning in suffering."
  • "Being human always points, and is directed, to something or someone, other than oneself -- be it a meaning to fulfill or another human being to encounter. The more one forgets himself -- by giving himself to a cause to serve or another person to love -- the more human he is."
Javier E

Australia Banned Assault Weapons. America Can, Too. - NYTimes.com - 0 views

  • I can, however, describe what I, as prime minister of Australia, did to curb gun violence following a horrific massacre 17 years ago in the hope that it will contribute constructively to the debate in the United States.
  • Our challenges were different from America’s. Australia is an even more intensely urban society, with close to 60 percent of our people living in large cities. Our gun lobby isn’t as powerful or well-financed as the National Rifle Association in the United States. Australia, correctly in my view, does not have a Bill of Rights, so our legislatures have more say than America’s over many issues of individual rights, and our courts have less control. Also, we have no constitutional right to bear arms. (After all, the British granted us nationhood peacefully; the United States had to fight for it.)
  • To make this plan work, there had to be a federally financed gun buyback scheme. Ultimately, the cost of the buyback was met by a special one-off tax imposed on all Australians. This required new legislation and was widely accepted across the political spectrum. Almost 700,000 guns were bought back and destroyed — the equivalent of 40 million guns in the United States.
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  • Given our decentralized system of government, I could reduce the number of dangerous firearms only by persuading the states to enact uniform laws totally prohibiting the ownership, possession and sale of all automatic and semiautomatic weapons while the national government banned the importation of such weapons.
  • The fundamental problem was the ready availability of high-powered weapons, which enabled people to convert their murderous impulses into mass killing.
  • I made clear that my government was willing to hold a nationwide referendum to alter the Australian Constitution and give the federal government constitutional power over guns. Such a referendum would have been expensive and divisive, but it would have passed. And all state governments knew this.
  • today, there is a wide consensus that our 1996 reforms not only reduced the gun-related homicide rate, but also the suicide rate. The Australian Institute of Criminology found that gun-related murders and suicides fell sharply after 1996. The American Journal of Law and Economics found that our gun buyback scheme cut firearm suicides by 74 percent. In the 18 years before the 1996 reforms, Australia suffered 13 gun massacres — each with more than four victims — causing a total of 102 deaths. There has not been a single massacre in that category since 1996. Few Australians would deny that their country is safer today as a consequence of gun control.
Javier E

The Real Loser - Truth - NYTimes.com - 1 views

  • Candidates accordingly believed that being caught in an outright lie could damage their careers. (As Daniel Patrick Moynihan reportedly said, “Everyone is entitled to his own opinion, but not his own facts.”) They tended only to bend the truth, not break it.
  • At least four factors since the 1970s have lowered the cost for politicians who lie and, more important, repeat their fabrications through their attack ads. First is the overall decline in respect for institutions and professionals of all kinds, from scientists and lawyers to journalists and civil servants.
  • Second are changes in media regulation and ownership
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  • For decades, radio and television broadcasters had been required to present multiple viewpoints on contentious public debates on the grounds that they were stewards of the public airwaves. But in 1987, members appointed by President Ronald Reagan to the Federal Communications Commission abolished this “fairness doctrine.” The change facilitated the creation of conservative talk radio and cable outlets to combat perceived liberal bias. Liberals followed suit with programming (albeit less effective) of their own.
  • a third trend developed as political operatives realized they had more room to stretch the truth. In 2004, an aide to President George W. Bush dismissed a journalist for being part of a “reality-based community” of people who “believe that solutions emerge from your judicious study of discernible reality.” 
  • A fourth factor: most news organizations (with notable exceptions) abandoned their roles as political referees. Many resorted to an atrophied style that resembled stenography more than journalism, presenting all claims as equally valid. Fact checking, once a foundation for all reporting, was now deemed the province of a specialized few.
  • PolitiFact has chronicled 19 “pants on fire” lies by Mr. Romney and 7 by Mr. Obama since 2007, but Mr. Romney’s whoppers have been qualitatively far worse: the “apology tour,” the “government takeover of health care,” the “$4,000 tax hike on middle class families,” the gutting of welfare-to-work rules, the shipment by Chrysler of jobs from Ohio to China. Said one of his pollsters, Neil Newhouse, “We’re not going to let our campaign be dictated by fact checkers.”
  • the Obama campaign has certainly had its own share of dissembling and distortion, including about Mr. Romney’s positions on abortion and foreign aid. But nothing in it — or in past campaigns, for that matter — has equaled the efforts of the Romney campaign in this realm. Its fundamental disdain for facts is something wholly new.
Javier E

Why Partisans Can't Explain Their Views - NYTimes.com - 0 views

  • we have grown so accustomed to this divide that we no longer flinch at the brazen political attacks on either side — even when the logic underlying these attacks is hard to fathom.
  • attack ads work, in large part, because we don’t understand them. Statements take advantage of a fact about human psychology called the “illusion of explanatory depth,” an idea developed by the Yale psychologist Frank Keil and his students. We typically feel that we understand how complex systems work even when our true understanding is superficial.
  • it is not until we are asked to explain how such a system works — whether it’s what’s involved in a trade deal with China or how a toilet flushes — that we realize how little we actually know.
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  • we report on experiments showing that people often believe they understand what is meant by well-worn political terms like the “flat tax,” “sanctions on Iran” or “cap and trade” — even when they don’t.
  • The real surprise is what happens after these same individuals are asked to explain how these policy ideas work: they become more moderate in their political views — either in support of such policies or against them. In fact, not only do their attitudes change, but so does their behavior
  • asking people to justify their position — rather than asking them to explain the mechanisms by which a policy would work — doesn’t tend to soften their political views. When we asked participants to state the reasons they were for or against a policy position, their initial attitudes held firm. (Other researchers have found much the same thing: merely discussing an issue often makes people more extreme, not less.)
  • asking people to “unpack” complex systems — getting them to articulate how something might work in real life — forces them to confront their lack of understanding.
  • rarely is anybody — candidate or voter — asked to explain his or her positions. American political discourse, in short, is not discourse at all.
  • The answer implied by our research is not that we should all become policy wonks. Instead, we voters need to be more mindful that issues are complicated and challenge ourselves to break down the policy proposals on both sides into their component parts. We have to then imagine how these ideas would work in the real world — and then make a choice: to either moderate our positions on policies we don’t really understand, as research suggests we will, or try to improve our understanding. Either way, discourse would then be based on information, not illusion.
  • whether or not we citizens make this effort, our leaders should. We should demand that Mr. Obama and Mr. Romney explain how in addition to why.
  • We have a problem in American politics: an illusion of knowledge that leads to extremism. We can start to fix it by acknowledging that we know a lot less than we think.
mcginnisca

Hillary Clinton explains why she won't say 'radical Islam' - CNNPolitics.com - 0 views

  • "radical Islam" because it "sounds like we are declaring war against a religion."
  • It doesn't do justice to the vast number of Muslims in our country and around the world who are peaceful people,"
  • "Now when you say radical Islamic jihadist, they understand, the rest of the Muslim community understands. The folks who are peaceful and who attend mosques in a peaceful way, work in our country, raise their families, pay their taxes. They know they're not radical Islamic jihadists."
katieb0305

Are You Successful? If So, You've Already Won the Lottery - The New York Times - 0 views

  • Chance events play a much larger role in life than many people once imagined.
  • But randomness often plays out in subtle ways, and it’s easy to construct narratives that portray success as having been inevitable.
  • In the years since, the painting has come to represent Western culture itself. Yet had it never been stolen, most of us would know no more about it than we do of the two obscure Leonardo da Vinci canvases from the same period that hang in an adjacent gallery at the Louvre.
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  • Inevitably, some of those initial steps will have been influenced by seemingly trivial random events. So it is reasonable to conclude that virtually all successful careers entail at least a modicum of luck.
  • One’s date of birth can matter enormously, for example. According to a 2008 study, most children born in the summer tend to be among the youngest members of their class at school, which appears to explain why they are significantly less likely to hold leadership positions during high school and thus, another study indicates, less likely to land premium jobs later in life. Similarly, according to research published in the journal Economics Letters in 2012, the number of American chief executives who were born in June and July is almost one-third lower than would be expected on the basis of chance alone.
  • To acknowledge the importance of random events is not to suggest that success is independent of talent and effort. In highly competitive arenas, those who do well are almost always extremely talented and hard-working.
  • Such expertise comes not from luck but from thousands of hours of assiduous effort.
  • Being born in a good environment is one of the few dimensions of luck we can control — that is, at least we can decide how lucky our children will be.
  • The unlucky population is growing, and its luck is getting worse.
  • Evidence from the social sciences demonstrates that beyond a certain income threshold, people’s sense of well-being depends much more on their relative purchasing power than on how much they spend in absolute terms. If top tax rates were a little higher, all homes would be a little smaller, all cars a little less expensive, all diamonds a little more modest and all celebrations a little less costly. The standards that define “special” would adjust accordingly, leaving most successful people quite satisfied.
  • Merely prompting people to reflect on their good fortune tends to make them more willing to contribute to the common good, according to a 2010 study published in the journal Emotion.
tornekm

Of bairns and brains | The Economist - 0 views

  • especially given the steep price at which it was bought. Humans’ outsized, power-hungry brains suck up around a quarter of their body’s oxygen supplies.
  • . It was simply humanity’s good fortune that those big sexy brains turned out to be useful for lots of other things, from thinking up agriculture to building internal-combustion engines. Another idea is that human cleverness arose out of the mental demands of living in groups whose members are sometimes allies and sometimes rivals.
  • human infants take a year to learn even to walk, and need constant supervision for many years afterwards. That helplessness is thought to be one consequence of intelligence—or, at least, of brain size.
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  • ever-more incompetent infants, requiring ever-brighter parents to ensure they survive childhood.
  • The self-reinforcing nature of the process would explain why intelligence is so strikingly overdeveloped in humans compared even with chimpanzees.
  • developed first in primates, a newish branch of the mammals, a group that is itself relatively young.
  • found that babies born to mothers with higher IQs had a better chance of surviving than those born to low-IQ women, which bolsters the idea that looking after human babies is indeed cognitively taxing.
  • none of this adds up to definitive proof.
  • Any such feedback loop would be a slow process (at least as reckoned by the humans themselves), most of which would have taken place in the distant past.
kushnerha

Why People Are Confused About What Experts Really Think - The New York Times - 2 views

  • GIVEN the complexities of the modern world, we all have to rely on expert opinion. Are G.M.O. foods safe? Is global warming real? Should children be vaccinated for measles? We don’t have the time or the training to adjudicate these questions ourselves. We defer to the professionals.
  • And to find out what the experts think, we typically rely on the news media. This creates a challenge for journalists: There are many issues on which a large majority of experts agree but a small number hold a dissenting view. Is it possible to give voice to experts on both sides — standard journalistic practice — without distorting the public’s perception of the level of disagreement?
  • This can be hard to do. Indeed, critics argue that journalists too often generate “false balance,” creating an impression of disagreement when there is, in fact, a high level of consensus. One solution, adopted by news organizations such as the BBC, is “weight of evidence” reporting, in which the presentation of conflicting views is supplemented by an indication of where the bulk of expert opinion lies.
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  • Both studies suggest that “weight of evidence” reporting is an imperfect remedy. It turns out that hearing from experts on both sides of an issue distorts our perception of consensus — even when we have all the information we need to correct that misperception.
  • In one study, all the participants were presented with a numerical summary, drawn from a panel of experts convened by the University of Chicago, of the range of expert opinion on certain economic issues.
  • One group of participants, however, was presented not only with the numerical summary of expert opinion but also with an excerpted comment from one expert on either side of an issue.
  • Then, all the participants were asked to rate their perception of the extent to which the experts agreed with one another on each issue. Even though both had a precise count of the number of experts on either side, the participants who also read the comments of the opposing experts gave ratings that did not distinguish as sharply between the high-consensus and the low-consensus issues. In other words, being exposed to the conflicting comments made it more difficult for participants to distinguish the issues most experts agreed on (such as carbon tax) from those for which there was substantial disagreement (such as minimum wage).
  • This distorting influence affected not only the participants’ perception of the degree of consensus, but also their judgments of whether there was sufficient consensus to use it to guide public policy.
  • What explains this cognitive glitch? One possibility is that when we are presented with comments from experts on either side of an issue, we produce a mental representation of the disagreement that takes the form of one person on either side, which somehow contaminates our impression of the distribution of opinions in the larger population of experts.
  • Another possibility is that we may just have difficulty discounting the weight of a plausible argument, even when we know it comes from an expert whose opinion is held by only a small fraction of his or her peers.
  • It’s also possible that the mere presence of conflict (in the form of contradictory expert comments) triggers a general sense of uncertainty in our minds, which in turn colors our perceptions of the accuracy of current expert understanding of an issue.
  • the implications are worrisome. Government action is guided in part by public opinion. Public opinion is guided in part by perceptions of what experts think. But public opinion may — and often does — deviate from expert opinion, not simply, it seems, because the public refuses to acknowledge the legitimacy of experts, but also because the public may not be able to tell where the majority of expert opinion lies.
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