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Kevin McCarthy hammers Biden admin's agenda as gas prices surge: 'Create more supply' |... - 0 views

  • House Minority Leader Kevin McCarthy slammed the Biden administration amid rampant inflation, arguing the White House caused the surge in prices as Americans battle sky-high costs at the pump.
  • It weakens America. Think about, this is our reserves. In case we got in trouble, we can actually create more diesel. We can create more natural gas. It not only harms America, it harms the world by not being safe.
  • He emboldened Putin because Putin got more money to put into his own war.
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  • If America has more jobs, America energy independent, America supplying our allies with natural gas. And also think of this: American natural gas is 41% cleaner than Russian natural gas, so the environment would be safer if America was able to produce it.
  • He has done every decision wrong in the process of going and to use our reserves now for in the future, why doesn't he create more supply to make the price go down? That would be the answer.
Javier E

Reality Is a Tank - The Triad - 0 views

  • It is men and women like Bildt, who believe that the international order is secured by pen and ink, who have been living in a fantasy land. They have spent a generation inviting catastrophe into their sitting rooms.
  • They watched Putin jail and destroy Mikhail Khodorkovsky, the richest man in Russia.They watched Putin assassinate dissidents on the ground in NATO countries.They watched Putin’s army commit war crimes in Chechnya.They watched his 2007 Munich speech in which he literally said, out loud, that he wanted to roll back the Westernization of Eastern Europe and restore Russia’s dominance.They watched the invasions of Georgia and then Ukraine.
  • In response these same men and women decommissioned nuclear power plants in Europe and built gas pipelines to Russia so that they could have good feelings about “environmentalism” while also pocketing economic windfalls.They crossed their fingers and closed their eyes.You tell me who “lost contact with reality.”
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  • it’s not just the lotus-eating Europeans. George W. Bush and Barack Obama both got rolled by Putin. Donald Trump was practically Putin’s gofer.
  • Our presidents were not alone. Much of Conservatism Inc. has become functionally pro-Russia.
  • much of the American foreign policy establishment decided that it could live in whatever reality it preferred. Their signal accomplishment was killing America’s two-war doctrine.
  • The goal of the two-war doctrine was to prevent America from having to fight any major wars. Because when you have the ability to fight two conventional ground wars, you deter all of your enemies.
  • A one-war doctrine, on the other hand, invites conflict.
  • both China and Russia are emboldened to pursue their interests: They know that we are unlikely to respond to aggression because in any given instance we will be paralyzed by the need to be able to deter a second aggressor.
  • The two-war doctrine was a victim of its own success. It was so effective at deterring large-scale aggression that Americans became convinced it wasn’t needed. That we could pocket the savings and get the same level of security through norms and agreements and economic interdependence.
  • Here is a thing everyone except Vladimir Putin and Xi Jinping seems to have forgotten: Reality is a tank. Not a memorandum. Not a summit. Not a promise.
  • Over the last 20 years, Americans experienced the very real costs of being the global hegemon and decided that, all things being equal, we’d rather not have the job.We are about to experience the very real costs of not being the hyperpower.
  • I would like to think the American people will survey the situation and come to the hard conclusion that while it is expensive and arduous to be the enforcer of the international order, it’s ultimately cheaper and safer than the alternative. And that we will then select leaders who will carry out this brief.
  • But I’ve lived through the last three years, just like you. I’ve watched half of America whine like children over being asked to wear a KN-95 at the grocery store. I’ve seen a third of this country refuse to get a life-saving vaccine because they are so detached from reality.
  • In my darker moments I suspect that Vladimir Putin has taken our measure quite precisely.
Javier E

How the Internet Is Like a Dying Star - 0 views

  • We are experiencing the same problems and having the same arguments. It’s all leading to a pervasive feeling, especially among younger people, that our systems in the United States (including our system of government) “are no longer able to meet the challenges our country is facing.”
  • The internet, as a mediator of human interactions, is not a place, it is a time. It is the past. I mean this in a literal sense. The layers of artifice that mediate our online interactions mean that everything that comes to us online comes to us from the past—sometimes the very recent past, but the past nonetheless.
  • Sacasas asks us to revise the notion of real-time communications online, and to instead view our actions as “inscriptions,” or written and visual records. Like stars in the galaxy, our inscriptions seem to twinkle in the present, but their light is actually many years old.
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  • “Because we live in the past when we are online,” Sacasas suggests, “we will find ourselves fighting over the past.”
  • my hunch is that people feel stuck or move on because online, these events feel like things that have happened, rather than something that is happening.
  • “What we’re focused on is not the particular event or movement before us, but the one right behind us,”
  • “As we layer on these events, it becomes difficult for anything to break through. You’re trying to enter the information environment and the debate, and you find layer upon layer of abstraction over the initial point of conflict. You find yourself talking about what people are saying about the thing, instead of talking about the thing. We’re caking layers of commentary over the event itself and the event fades.” This is, if you ask me, a decent description of the last five years of news cycles.
  • So, what’s changed? Why do we feel more stuck now?
  • “I think it also has to do with the proportion of one’s daily experience to dispatches from the past,” Sacasas said. Pre-internet, “the totality of my day wasn't enclosed by this experience of media artifacts coming to me.”
  • the smartphone-bound, reasonably-but-not-terminally online people—the amount they spend engaged with the recent past has increased considerably, to the point that some are enclosed in this online world and develop a disordered relationship to time.
  • Constantly absorbing and commenting on things that have just happened sounds to me like a recipe for feeling powerless.
  • “That feeling of helplessness comes out of the fact that all our agency is being channeled through these media,” he said. “We have these events that are ponderously large, like climate change or gun control, and to view them only through the lens of what happened or the abstraction of what people are saying strips away the notion of our agency and makes it all feel so futile.”
  • the social-media platforms we live on push us toward contribution, and they make it feel necessary. Yet what is the sum total of these contributions? “If I'm cynical,” Sacasas said, “what I think it generates is something akin to influencer culture. It creates people who will make money off of channeling that attention—for better or for ill. Everyone else is stuck watching the show, feeling like we’re unable to effectively change the channel or change our circumstances.”
  • ubiquitous connectivity and our media environments naturally lend themselves toward an influencer-and-fandom dynamic. If the system is built to inspire more and more layers of commentary, then that system will privilege and reward people who feed it
  • On an internet that democratizes publishing, what this might mean is that all media takes on the meta-commentary characteristics of political or sports talk radio.
  • When the Depp-Heard trial began gaining traction online in April, Internet users around the world recognized a fresh opportunity to seize and monetize the attention. Christopher Orec, a 20-year-old content creator in Los Angeles, has posted a dozen videos about the trial to his more than 1.4 million followers on Instagram across several pages. “Personally, what I’ve gained from it is money as well as exposure from how well the videos do,” he said. You can “go from being a kid in high school and, if you hop on it early, it can basically change your life,” Orec said. “You can use those views and likes and shares that you get from it, to monetize and build your account and make more money from it, meet more people and network.”
  • if you were going to design a nightmare scenario, it might look a bit like what is described in this Washington Post story from last Thursday:
  • Like the Depp-Heard coverage, the forces that Sacasas describes can be deeply cynical and destructive. They’re also almost always exhausting for those of us consuming them
  • Examining and discussing and understanding the past is important, and our technologies are enormously helpful in this respect.
  • Sacasas compared the way our media ecosystem works—and all these feedback loops—to a novelty finger trap. “Almost every action generates more difficult conditions—to struggle is to feed the thing that’s keeping you bogged down.”
  • As politicians—especially those on the far right—transition into full time influencers, they no longer need to govern even reasonably effectively to gain power. They don’t need to show what they’ve done for their constituents. Simply culture warring—posting—is enough. The worse the post, the more attention it gets, and the more power they accrue.
  • There's a reason Marjorie Taylor Greene raised $9 million and Sarah Palin has only raised $600,000. MTG has recognized something Palin used to know. Her job is to say something terrible every day so we do all her viral marketing for her.
  • One outcome of elected officials adopting the influencer model is a politics that is obsessed with, and stuck in, the past. I don’t just mean a focus on making America “great again,” but a politics that is obsessed with relitigating its recent past.
  • we are forever talking about Hillary’s emails or Hunter Biden’s laptop or Merrick Garland’s thwarted Supreme Court seat or the legitimacy of the previous election.
  • How do we break the cycle? Is silence our best weapon to starve the attention? That feels wrong. I don’t have answers, but Sacasas has given me a valuable guiding question: How do we train our attention on our present and future, when so much of our life is spent ensconced in dispatches from the recent past?
Javier E

Opinion | Meet the Self-Described 'Bimbos' of TikTok - The New York Times - 0 views

  • Ms. Chlapecka told me she identifies as feminist but that a lot of feminism needs to be “reworked.”
  • Like critiques of many women of her generation, hers include the historical whiteness of many strains of feminism, its heteronormativity and the persistence of anti-trans voices within the movement today.
  • The #BimboTok sphere is a diffuse collective of creators with different ideas and personas, but generally, it’s sex-positive and sex-work-positive
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  • It often borrows the language of social justice movements
  • BimboTok came about at a time when the girlboss had more or less faded as a trendy cultural type
  • “I don’t know what the economy is, I don’t know what supply and demand is,” Ms. Chlapecka says in one video. “All I know is that our problems would be solved if we’d just print more money.” There’s a way in which her monologues can come to feel almost incisive — why can’t we print more money? The answer is complicated, obviously, and on some level Ms. Chlapecka knows that. “I’m asking a lot of questions that, yes, I have the answer to, but are also valid,” she said. “The whole world we made is literally made up, so we can make up solutions to the issues we have.”
  • Bimboism is the antithesis of the mode of feminism that was dominant in the 2010s, a kind of hyperambitious you-can-have-it-all feminism that can be summed up by the label “girlboss.”
  • It encourages asking the dumb questions that get to the heart of things.
  • Amid the resurgence of leftist politics, and the disillusionment with capitalism among millennials and Gen Z, the framing of careerism and individualism as feminist rings hollow
  • That girlboss model was critiqued for its lack of inclusivity — its overwhelming whiteness and its focus on a level of economic success that was never attainable for a vast majority of women.
  • Not to mention, girlboss aesthetics are simply cringe, for a generation steeped in internet irony.
  • In its most interesting form, bimboism also makes a connection between the ideas of pleasure — sexual pleasure, pleasure in clothes, pleasure in simply existing as a woman in the world with a body on display — and political gains that would make it more possible, like universal health care, student loan debt cancellation and abortion rights.
  • It’s anticapitalist, even anti-work. (In one video, another BimboTok comedian, @brattybarbiana, dances behind text that reads, “Rule of thumb: All relationships should be 50/50 … He works for his money, I spend it!”)
  • Bimboism offers an opposing and, to some, refreshing premise: Value me, look at me, not because I’m smart and diligent, but for the fact that I’m not.
  • But to dismiss this corner of the internet as totally backward would be to miss the point.
  • Is it really leftist for a woman to want to just go shopping and never get a job?
  • “Are you a leftist who likes to have their tits out? Do you like to flick off pro-lifers?” Chrissy Chlapecka asks the camera in a 51-second TikTok captioned “BIMBOS, RISE
Javier E

Opinion | From Voodoo to MAGA to Buffalo - The New York Times - 0 views

  • What has changed, however, is the behavior of Republican elites, who used to push back against conspiracy theories but now cheerfully embrace them whenever it seems politically expedient.
  • Which, I’d argue, is where voodoo economics comes in — not as an idea but as a determinant of the kind of people who became Republican politicians.
  • The rise of supply-side economics coincided with the rise of movement conservatism — an interlocking network of elected officials, media organizations, think tanks and lobbying firms. Because the movement’s core ideology involved reducing taxes on the rich, it was lavishly supported by billionaires and corporate interests, and this in turn meant that it offered job security to anyone who remained sufficiently loyal.
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  • Who was attracted to this movement? Many were careerists: people happy to serve as apparatchiks, following whatever the party line happened to be at the moment.
  • when I say that I miss voodoo economics, what I really mean is that I miss the illusion — which I shared — that the impact of its rise would mainly be limited to the politics of taxes and spending. What we now know is that the embrace of crank economics presaged the general moral collapse of the Republican establishment.
  • This collapse opened the door for paranoia and conspiracy theorists of all kinds
  • There is, I would argue, a direct line from the Laffer curve, to Jan. 6, to Buffalo.
Javier E

Sheryl Sandberg and the Crackling Hellfire of Corporate America - The Atlantic - 0 views

  • In publishing, there are some books that are too big to fail. Very early on you get the message that this is a Major and Very Important Book. In 2013, that book was Sheryl Sandberg’s Lean In: Women, Work, and the Will to Lead, which sold more than 1.5 million copies in its first year.
  • The book was about how women can make it to the top. It was a sort of “work-life balance” category buster, because she was telling women to pretty much forget about the “life” part.
  • when I looked through the galley, the whole thing was so manufactured and B-school-ish that I just wanted to put my head on the keyboard and have a little nap.
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  • Almost immediately I saw that its main problem wasn’t the children. This was a book about how women in corporate America could—and should—strive to get the most money and the most power. But where should they seek such power? In the crackling hellfire of C-suite America.
  • During her 14 years at the company, she’s done so much damage to our society that we may never recover. The simple truth is that you cannot simultaneously dedicate yourself to making untold fortunes for a giant corporation and to championing a social good.
  • Amy’s a bitch, but an honest bitch,” one man said about her. If I ever write one of these books, I’ll call it A Few Honest Bitches, and explain that if we can get the right kind of women inside these places, we might be able to burn them down.
  • Why were the progressive worlds of publishing and journalism embracing this junk as some kind of giant step toward equality? It will surely go down in history as one of white feminism’s greatest achievements.
  • Sandberg invoked the name Goldman Sachs multiple times—in a good way. Mind you, this book was published five years after that despicable outfit played a major role in almost bankrupting the country.
  • There we were: suckers, lambs to the slaughter. It didn’t even occur to us that all of that information wasn’t “safe.” We didn’t want it to be safe! We wanted our long-lost friends from Brownie Troop 347 to be able to find us! When we realized what we’d done, it was already too late.
  • “We made mistakes and I own them,” Sandberg eventually said about the Cambridge Analytica scandal. “They are on me.” The impression was of radical transparency, a Harry Truman of the C-suite: The buck stops here.
  • But according to The New York Times, the buck was about to embark on an Oh, the Places You’ll Go! journey to the bottom of the Earth.
  • Huge corporations are never, ever on the side of the people. You can’t take your eyes off of them for a second, because any time you look away, they’ll do terrible things
  • Today’s young people have been forced to learn that old lesson, because they are the inheritors of 40 years of corporate greed, private equity’s smash and grab, bank deregulation, and the collusion of the very rich and the U.S. government to squeeze every penny it can from the middle class and move it into the counting houses of billionaires. They know the game isn’t rigged against them; they know the game was lost long before they were born.
  • Corporations are now faced with labor shortages, and there are rumblings from the owner class about the demise of the great American work ethic. But corporations are the ones who killed it
  • Young people today know that work is not your life; it’s how you pay for your life. It’s an exchange of money for labor, and they are not interested in devoting a jot of extra energy to jobs that pay minimum wage and offer no health insurance or savings plan, for employers who show no loyalty to their workers.
  • I’ve heard a number of young people lately say they won’t have children because of the climate crisis. That’s a tremendous sacrifice and a principled position
  • A Pew Research Center survey from November found that 44 percent of adults without kids say that they probably won’t have any, up from 37 percent in 2018, the last time Pew asked the question
  • here’s the thing. Ask any older person when the happiest time in their life was, and they will always, always say it was when their children were young.
  • There is no greater joy in this life than having a baby. Here is a person who has been uniquely designed to love you. And here is Goldman Sachs.
Javier E

Schools to blame for boys idolising Andrew Tate, says sacked teacher | News | The Times - 0 views

  • The rise of the influencer Andrew Tate has vindicated the decision to show Eton College pupils a controversial video on masculinity, according to the master who was sacked for doing so.
  • It also stated that “male aggression is a biological fact” and aired concerns about women competing in sports against transgender women.
  • “I think Tate is a symptom of what’s currently going wrong regarding the teaching of boys in schools,” Knowland said from his home in Stowmarket, Suffolk.
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  • “In a properly functioning education system, that’s giving them really robust messaging about what it means to be a man, they would have antibodies to fight off the sick messaging that Tate is giving. All they see is the guy who’s got a Bugatti and joking about telling women to make him a sandwich.
  • “When teachers try to explain why Tate isn’t someone to look up to, the teenage boys ask them, ‘Well, what colour is your Bugatti?’
  • “The premise needs to be attacked directly, which is that ‘no, money isn’t the main index of masculinity’. Otherwise, we would all just be looking up to gangsters and criminals.”
  • Knowland, who teaches English and has forged a career as an online tutor, was sacked in 2020 after refusing to take down a video he made for his students called The Patriarchy Paradox, which repeated claims that women would revert to a primitive life without men.
  • Knowland believes the issues he was seeking to address in the lecture, which is still on his YouTube channel and has had 255,000 views, have only increased since his sacking.
  • The Teaching Regulation Agency (TRA) decided to take no action against Knowland after an inquiry. Eton College has previously said that the ruling did not undermine its decision to dismiss him.
  • The school reported the lecture to the TRA, which considered charges of undermining tolerance and failing to safeguard students but closed the case with no further action. In a statement, the school said: “This does not mean that Mr Knowland did nothing wrong or that Eton was not entitled to dismiss him.”
  • He added: “I think the most interesting part about the lecture and what resonated with my supporters was my stress on chivalry and the idea that a man’s strength should be put to the service of the weak and his family.
  • “Chivalry is the thing that we’re missing today and it’s become deformed and turned into machismo, which is masculinity without any sense of humility or meekness. I think this is what we need to return to. Some of the problems that Tate is addressing, things like men should be assertive, men should be competitive, men should be strong, etcetera, chivalry agrees with.
  • “But chivalry says, ‘Why do they need to be those things? Because it’s to serve the weak, not themselves.”
  • Knowland, 37, believes that Tate — who rose to infamy last year after videos of his diatribes led to him becoming the world’s most googled person — has tapped into a “malaise” among young men caused by the teaching of boys in schools.
  • As an example, last month Scotland had to pause movement of transgender prisoners after a row over whether a transgender female rapist should be imprisoned with biological women.
  • “For some, even saying that there are biological differences between men and women is offensive. That’s what my lecture said, that men are stronger,” Knowland added. “I don’t think that [women] should [compete in sport against transgender women]. I don’t think it’s safe.
  • The example I gave in the lecture [was] of the transgender fighter who fractured the woman’s skull, and could easily have killed her. I think there are good reasons why sporting bodies are moving towards and in some cases have already decided that there’s not going to be next events like that.”
  • During the Eton furore Simon Henderson, the head master of Eton, was criticised in some quarters for pursuing a “woke” culture at the school and his critics referred to him as “Trendy Hendy”. They pointed to pupils being asked to wear Black Lives Matter waistcoats and decolonising its curriculum as examples of the institution being captured by ideologues.
  • The content Knowland produces on his YouTube channel continues to be controversial. A recent video by the devout Catholic is entitled “Eight facts that killed evolution for me”.
  • “The lecture was addressing some very live issues at the time and it’s only got worse since then,” he said. “Women now feel that they haven’t got safe spaces to get undressed to go to a swimming pool. So those concepts in the lecture were hard hitting and provocative, because these are topics that are big ones that people have strong feelings about.”
  • While Knowland does not agree with the term transgender — “there are only two categories of sex, using the term transgender concedes too much ground” — he is alive to the issue of transphobic bullying. The issue has been in the spotlight this month after Brianna Ghey, a 16-year-old transgender girl, was stabbed to death in a park.
  • “People being subjected to transphobia is terrible,” he said. “People shouldn’t mistreat anybody just because they’ve got a mistaken idea that they are a woman. They need to be treated with compassion, not attacked or bullied.”
  • Knowland’s newfound career as an online tutor, as well as hosting a podcast, has eased some of the pressure he felt after his sacking. He said: “At Eton our family home was a benefit, so that was on my mind when I was leaving. I had to wait a couple of years after leaving to get a home because being self-employed, you have to get all the paperwork to get a mortgage.
  • “I’ve actually had parents get in touch because they supported me over what happened at Eton and wanted me to tutor their children.
  • “Losing my job was concerning but it gave me an insight into what it feels for someone to be cancelled. Fear is such a powerful weapon to stop people believing what they’re passionate about.
  • “People feel they can’t say anything, because consequences are going to be too severe, but now I’ve been through it I’ve actually found it freeing.”
Javier E

COVID Is More Like Smoking Than the Flu - The Atlantic - 0 views

  • The “new normal” will arrive when we acknowledge that COVID’s risks have become more in line with those of smoking cigarettes—and that many COVID deaths, like many smoking-related deaths, could be prevented with a single intervention.
  • The pandemic’s greatest source of danger has transformed from a pathogen into a behavior. Choosing not to get vaccinated against COVID is, right now, a modifiable health risk on par with smoking, which kills more than 400,000 people each year in the United States.
  • if COVID continues to account for a few hundred thousand American deaths every year—“a realistic worst-case scenario,” he calls it—that would wipe out all of the life-expectancy gains we’ve accrued from the past two decades’ worth of smoking-prevention efforts.
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  • The COVID vaccines are, without exaggeration, among the safest and most effective therapies in all of modern medicine. An unvaccinated adult is an astonishing 68 times more likely to die from COVID than a boosted one
  • Yet widespread vaccine hesitancy in the United States has caused more than 163,000 preventable deaths and counting
  • Even in absolute numbers, America’s unvaccinated and current-smoker populations seem to match up rather well: Right now, the CDC pegs them at 13 percent and 14 percent of all U.S. adults, respectively, and both groups are likely to be poorer and less educated.
  • Countries such as Denmark and Sweden have already declared themselves broken up with COVID. They are confidently doing so not because the virus is no longer circulating or because they’ve achieved mythical herd immunity from natural infection; they’ve simply inoculated enough people.
  • data suggest that most of the unvaccinated hold that status voluntarily at this point
  • The same arguments apply to tobacco: Smokers are 15 to 30 times more likely to develop lung cancer. Quitting the habit is akin to receiving a staggeringly powerful medicine, one that wipes out most of this excess risk.
  • If everyone who is eligible were triply vaccinated, our health-care system would be functioning normally again.
  • With a vaccination timeline that stretches over years, our patience for restrictions, especially on the already vaccinated, will be very limited. But there is middle ground. We haven’t banned tobacco outright—in fact, most states protect smokers from job discrimination—but we have embarked on a permanent, society-wide campaign of disincentivizing its use.
  • We should neither expect that every stubbornly unvaccinated person will get jabbed before next winter nor despair that none of them will ever change their mind. Let’s accept instead that we may make headway slowly, and with considerable effort
  • Long-term actions for COVID might include charging the unvaccinated a premium on their health insurance, just as we do for smokers, or distributing frightening health warnings about the perils of remaining uninoculated
  • And once the political furor dies down, COVID shots will probably be added to the lists of required vaccinations for many more schools and workplaces.
  • nother aspect of where we’re headed with COVID. Tobacco is lethal enough that we are willing to restrict smokers’ personal freedoms—but only to a degree. As deadly as COVID is, some people won’t get vaccinated, no matter what, and both the vaccinated and unvaccinated will spread disease to others.
  • anti-COVID actions, much like anti-smoking policies, will be limited not by their effectiveness but by the degree to which they are politically palatable.
  • Without greater vaccination, living with COVID could mean enduring a yearly death toll that is an order of magnitude higher than the one from flu.
  • this, too, might come to feel like its own sort of ending. Endemic tobacco use causes hundreds of thousands of casualties, year after year after year, while fierce public-health efforts to reduce its toll continue in the background. Yet tobacco doesn’t really feel like a catastrophe for the average person.
  • Losing a year or two from average life expectancy only bumps us back to where we were in … 2000.
  • We still care for smokers when they get sick, of course, and we reduce harm whenever possible. The health-care system makes $225 billion every year for doing so—paid out of all of our tax dollars and insurance premiums
  • Hospitals have a well-honed talent for transforming any terrible situation into a marketable “center of excellence.”
  • But we shouldn’t forget the most important reason that the coronavirus isn’t like the flu: We’ve never had vaccines this effective in the midst of prior influenza outbreaks, which means we didn’t have a simple, clear approach to saving quite so many lives. Compassionate conversations, community outreach, insurance surcharges, even mandates—I’ll take them all. Now is not the time to quit.
Javier E

What Progressives Get Wrong About the Gilded Age - Bloomberg - 0 views

  • America’s plutocrats are transforming themselves into hereditary dynasties, thanks to a prolonged campaign against inheritance taxes (or “death taxes” as they have been ingeniously dubbed).
  • The research firm Cerulli estimates that almost half of the estimated $72.6 trillion that will be transferred to the next generation between 2020 and 2045 will come from the richest 1.5% of households. Welcome to the world of trillion-dollar trust fund babies.
  • The rise of such dynasties clashes with America’s fundamental belief in equal opportunity and upward mobility. It leads to social closure as the children of the privileged hoard positions at the top of society.
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  • It produces economic distortions as high IQ types get jobs as “money butlers.” (Chuck Collins, the author of “The Wealth Hoarders,” estimates that at least 90,000 people are employed in what he calls the “wealth defense industry.”)
  • Today the educated are losing their faith in upward mobility.
Javier E

Before Collapse of Silicon Valley Bank, the Fed Spotted Big Problems - The New York Times - 0 views

  • In 2021, a Fed review of the growing bank found serious weaknesses in how it was handling key risks. Supervisors at the Federal Reserve Bank of San Francisco, which oversaw Silicon Valley Bank, issued six citations. Those warnings, known as “matters requiring attention” and “matters requiring immediate attention,” flagged that the firm was doing a bad job of ensuring that it would have enough easy-to-tap cash on hand in the event of trouble.
  • But the bank did not fix its vulnerabilities. By July 2022, Silicon Valley Bank was in a full supervisory review — getting a more careful look — and was ultimately rated deficient for governance and controls. It was placed under a set of restrictions that prevented it from growing through acquisitions
  • It became clear to the Fed that the firm was using bad models to determine how its business would fare as the central bank raised rates: Its leaders were assuming that higher interest revenue would substantially help their financial situation as rates went up, but that was out of step with reality.
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  • By early 2023, Silicon Valley Bank was in what the Fed calls a “horizontal review,” an assessment meant to gauge the strength of risk management. That checkup identified additional deficiencies — but at that point, the bank’s days were numbered
  • The picture that is emerging is one of a bank whose leaders failed to plan for a realistic future and neglected looming financial and operational problems, even as they were raised by Fed supervisors. For instance, according to a person familiar with the matter, executives at the firm were told of cybersecurity problems both by internal employees and by the Fed — but ignored the concerns.
  • Still, the extent of known issues at the bank raises questions about whether Fed bank examiners or the Fed’s Board of Governors in Washington could have done more to force the institution to address weaknesses
  • Other worries center on whether Jerome H. Powell, the Fed chair, allowed too much deregulation during the Trump administration. Randal K. Quarles, who was the Fed’s vice chair for supervision from 2017 to 2021, carried out a 2018 regulatory rollback law in an expansive way that some onlookers at the time warned would weaken the banking system.
  • Typically, banks with fewer than $250 billion in assets are excluded from the most onerous parts of bank oversight — and that has been even more true since a “tailoring” law that passed in 2018 during the Trump administration and was put in place by the Fed in 2019. Those changes left smaller banks with less stringent rules.
  • Silicon Valley Bank was still below that threshold, and its collapse underlined that even banks that are not large enough to be deemed globally systemic can cause sweeping problems in the American banking system.
  • Some of the concerns center on the fact that the bank’s chief executive, Greg Becker, sat on the Federal Reserve Bank of San Francisco’s board of directors until March 10. While board members do not play a role in bank supervision, the optics of the situation are bad.
  • “One of the most absurd aspects of the Silicon Valley bank failure is that its CEO was a director of the same body in charge of regulating it,” Senator Bernie Sanders, a Vermont independent, wrote on Twitter on Saturday, announcing that he would be “introducing a bill to end this conflict of interest by banning big bank CEOs from serving on Fed boards.
  • “It’s a failure of supervision,” said Peter Conti-Brown, an expert in financial regulation and a Fed historian at the University of Pennsylvania. “The thing we don’t know is if it was a failure of supervisors.”
  • Mr. Powell typically defers to the Fed’s supervisory vice chair on regulatory matters, and he did not vote against those changes. Lael Brainard, then a Fed governor and now a top White House economic adviser, did vote against some of the tweaks — and flagged them as potentially dangerous in dissenting statements.
Javier E

Opinion | How China Keeps Putting Off Its 'Lehman Moment' - The New York Times - 0 views

  • In 2008, the U.S. Federal Reserve and Treasury Department also stepped in during the subprime lending crisis to coordinate the restructuring of troubled institutions. But creditor and investor rights and the political risks of bailing out banks limited what American regulators can do; arrangements were reached only after hard bargaining with banks and investment houses. In China, financial institutions have to do what the government tells them.
  • The government’s hand is everywhere. The most fundamental asset in China — land — is owned or controlled by the state. The value of China’s currency, the renminbi, is government-managed and regulators are widely believed to intervene in trading on the country’s stock markets.
  • Most of China’s biggest and most powerful companies, including all of its major banks, are state-owned, and executives are usually members of the Communist Party, which controls top-level corporate appointments.
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  • Even healthy and influential private companies can be ordered to undergo painful restructuring or curtail certain business operations
  • When nearly every renminbi borrowed is domestic — lent by a Chinese creditor to a Chinese borrower — it gives regulators a degree of control over debt problems that their Western counterparts can only dream of.
  • Even the makeup of China’s high debt levels has a silver lining for regulators. China’s aggregate ratio of debt to gross domestic product was almost 300 percent (or around $52 trillion) in September 2022, compared to 257 percent for the United States.
  • Ultimately, all of this serves the party’s absolute priority of maintaining social stability; there is zero tolerance for financial distress or major corporate failures that could trigger street demonstrations
  • But less than 5 percent of China’s debt is external, amounting to $2.5 trillion, one-tenth of the U.S. level.
  • instead of introducing reforms to establish a healthy market-based economy in which inefficient businesses are allowed to fail, China’s Evergrande-style fixes — while defusing short-term crises — reward irresponsible behavior and perpetuate the excessive borrowing and wasteful use of funding that leads to recurring financial distress.
  • Soft landings may become harder to achieve. China faces perhaps its greatest array of economic challenges since it began reopening to the outside world in the late 1970s: high debt, an ailing real estate sector, a long-term economic slowdown, rising unemployment, an aging and shrinking population and worsening trade and diplomatic relations with the United States.
  • There is a very real risk that China could suffer the same fate as Japan, which is still struggling to emerge from an extended period of economic stagnation that began in the 1990s. Japan’s troubles were caused, in part, by a burst real estate bubble and financial-sector problems similar to what China is now facing.
  • China’s regulatory troubleshooters have proven the financial doomsayers wrong again and again. But their biggest test may yet lie ahead.
Javier E

Former Starbucks CEO Howard Schultz Spars With Democrats at Senate Hearing - The New Yo... - 0 views

  • Senator Mitt Romney of Utah, a former chief executive, said it was “somewhat rich that you’re being grilled by people who have never had the opportunity to create a single job.” He suggested that while a union might be necessary at companies “that are not good employers,” that was not the case at Starbucks.
  • Democrats’ response came at two levels of elevation. First, they said the company was excluding unionized stores from the benefits that Starbucks had introduced since the union campaign began, such as faster accrual of sick leave and a credit-card tipping option for customers, showing that its commitment to such benefits was tenuous.
  • More broadly, Democrats argued that unions acted as a corrective to a basic power imbalance between workers and management. A company might treat workers generously under one chief executive, then harshly under another. Only a union can ensure that the favorable treatment persists
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  • in illustrating how far the politics of labor have changed in Washington in recent decades, there was perhaps no better bellwether than Senator John Hickenlooper of Colorado, a former business owner and self-described “extreme moderate.”
  • Mr. Hickenlooper conducted himself more respectfully and deferentially than most of his Democratic colleagues, applauding Mr. Schultz for “creating one of the most successful brands in American history” and declaring that “you know more about economics than I will ever know.” But in his questioning he aligned himself squarely with his party, pointing out that the rise of inequality in recent decades had coincided with the weakening of unions.
Javier E

How Sunak may succeed in stopping the boats - 0 views

  • After all, much as its backbenchers huff and puff, even Labour has admitted an important principle: there is a limit to the number of refugees this country can accept.
  • In parliament on Monday, the shadow immigration minister, Stephen Kinnock, said explicitly that “safe and legal routes” for immigration must be “capped” and “based on prioritisation”
  • With an estimated 32.5 million refugees in the world, this ought to be a statement of the obvious
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  • yet it is one the government’s opponents are always reluctant to admit because its logical corollary is that there will always be an incentive for those not included under the cap to try their luck in the Channel — unless they perceive a high risk of deportation. You cannot stop the boats while taking in the passengers.
  • Sunak’s policy, despite its logic, faces a tortuous road ahead. To ministers’ surprise, they won their case on the Rwanda scheme in British courts last year, only to have the first flight blocked in the middle of the night by an ECHR judge.
  • Yet as the home secretary recently suggested, the government still believes it can get its way. The ECHR, despite its reputation for inflexible and expansionist application of human rights law, can be expedient when its institutional reach is under threat
  • In 2012, for example, after an unmanageable surge of cases that provoked European governments’ wrath, the ECHR agreed to limit itself to intervening only where it believed national courts had not done their jobs properly. Its caseload quickly shrank.
  • With the UK outside the EU and therefore able to leave the ECHR with relative ease, the court’s survival instinct has kicked in. Its officials are said to have been taken aback by the hostility to its Rwanda injunction last June and are in a mood to compromise to avoid the risk of losing the UK altogether
  • Even assuming the legislation takes full effect, it may not work. Migrant arrivals are expected to reach 65,000 this year. The asylum backlog stands at 166,000 and counting, hotels are full to bursting and the government hasn’t yet sent a single person to Rwanda, which in turn hasn’t built the capacity to house more than 200. No wonder most think the policy is doomed.
  • Between the prospect of being deported, housed in unappealing lodgings such as barges and RAF bases rather than hotels, and caught by the French, who are being given large sums of money to step up their coastal policing, the government is hoping it can make trying to cross the Channel sufficiently unattractive
  • There has been a sharp drop in the number of Albanians arriving on our beaches since the government signed a co-operation agreement with Tirana, stepped up deportations and publicised both.
  • evidence from Canada in 2016, where a publicity campaign highlighting the deportation of failed asylum seekers from Hungary led to a dramatic drop in arrivals.
  • It all depends on what’s required to deter people from crossing. The aim, after all, isn’t to run a constant, high-volume travel service to Kigali, but to stop people from getting on boats in the first place. This may already be working
  • This leaves the final piece, which is the expansion of “safe and legal routes” to the UK. It has taken months of awkward media interviews, select committee hearings and the threat of a backbench rebellion, but the government has finally accepted it needs a better system for taking in legitimate refugees.
  • One way is a broader, Ukraine-style scheme, so households can bring in refugees if they agree to take them in
  • Another is to allow for more extended family reunifications for refugees who have relatives here
  • And another would be to expand the practice of assessing and accepting people at UN camps, like the Syrian resettlement scheme
  • After years of ineffectual government under Theresa May and Boris Johnson, we have become used to the idea that ministers never have any ability or intention of keeping their promises
Javier E

Opinion | Putin's Energy Offensive Has Failed - The New York Times - 0 views

  • So what can we learn from the failure of Russia’s energy offensive?
  • Russia looks more than ever like a Potemkin superpower, with little behind its impressive facade. Its much vaunted military is far less effective than advertised; now its role as an energy supplier is proving much harder to weaponize than many imagined.
  • democracies are showing, as they have many times in the past, that they are much tougher, much harder to intimidate, than they look.
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  • modern economies are far more flexible, far more able to cope with change, than some vested interests would have us believe.
  • For as long as I can remember, fossil-fuel lobbyists and their political supporters have insisted that any attempt to reduce greenhouse gas emissions would be disastrous for jobs and economic growth.
  • what we’re seeing now is Europe making an energy transition under the worst possible circumstances — sudden, unexpected and drastic — and handling it pretty well. This suggests that a gradual, planned green energy transition would be far easier than pessimists imagine.
Javier E

U.S. History Has Plenty of Good and Bad. Here's How to See Both. - WSJ - 0 views

  • I believe that most of us are willing to broaden our understanding of our country’s history to look at both the best and the worst. But we often can’t—not for intellectual reasons but because of unrecognized psychological ones. Understanding those psychological roadblocks is a formidable challenge. But it’s crucial to do so if we want to get past them.
  • Let’s begin with the four reasons our minds sometimes make it hard to have a more honest, nuanced view of our history.
  • First, our minds tend to play down our wrongdoing from the past.
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  • Our minds are asymmetric judges, applying harsher moral judgment to present and future transgressions than past ones. It is as if the past becomes blurry. We even tend to blame the victim of a past event more than we blame the victim of a future one.
  • Third, our minds struggle with the negative emotions that our country’s complicated past gives rise to.
  • Research shows we are drawn to a sentimental form of history—nostalgia—which leads us to feel more loved, more protected, and even more competent in our ability to start and maintain relationships.
  • Nostalgia is often tied to the identities that we care most deeply about, such as our family or national identity. And, nostalgia is big business—in fashion, advertising, music and tourism, among other things.
  • Second, our minds tend to overplay sweet memories that favor our ancestors from the past.
  • When we learn about historical atrocities, particularly ones that expose our limited knowledge, contradict the narratives we believe, or implicate our own ancestors, we might experience shame, guilt, disbelief or anger. In response, we have a natural desire to pull away from the new knowledge and perhaps even refute it, rather than try to better understand it.
  • Fourth, our minds want to pick either a beautiful or a brutal narrative.
  • Contradictions, though, pocket our history, beginning with forefathers who had an extraordinary vision of equality, and simultaneously enslaved other humans
  • Our minds resist the paradoxes that characterize our country’s past. It’s so much less psychologically painful to pick one path than to grapple with both ideas at the same time.
  • Tools to useWhile the past is in the past, we can address the psychological challenge, however formidable, in the present. We have tools that will help, and I anticipate (and hope) that our debates will take on more psychological nuance as we shift from arguments over whether to explore our history more fully to how to do it.
  • For example, research shows the importance of returning to our values again and again as a way of inoculating us from setbacks
  • The daily arguments over curfews or messy rooms or study habits can cause us to shut down (“Do whatever you want”) or double down (“I’m your parent and you’ll do what I say”). Instead, it’s helpful to remind ourselves and our children that a parent has three jobs—to teach them, to protect them and to love them. Just doing that can ground us, and enable us to stay engaged, resilient and calm.
  • Similarly, when we confront a historical event, it can help to reflect on questions like, “Which American ideals do you most value?” and, “How do you hope others see your country?
  • You can even write out your responses, share them with others, and reread what you have written. Think of it as a values booster shot
  • Say, for instance, that you deeply value freedom. Keeping this value in your thoughts can help you notice the ways in which this country has delivered on the promise of freedom in important ways. But it also enables you to consider the disheartening realizations when those freedoms are not upheld.
  • esearch by Wendy Smith and others shows that we are capable of embracing paradox, rather than rejecting it. It doesn’t always come naturally. But we simply need to give ourselves permission to allow multiple truths to coexist.
  • In a paradox mind-set, we allow both of these things to be true. When both are true, we can challenge our either/or assumptions, and be more creative in finding solutions.
  • When you spot the paradox, allow both things to be true and observe if your mind shifts from solving the unsolvable puzzle (reconciling how can both of these things be true) to more deeply processing the knowledge that you may otherwise have pushed away. This is the greater resilience and creativity that comes with a paradox mind-set.
  • We simply need to accept that the formidable challenge will require us to be intentional in our approach.
  • In doing so, we become what I call “gritty patriots.” Psychologist Angela Duckworth defines grit as “passion and perseverance in pursuit of a meaningful, long-term goal.” Love of country is not something we are entitled to; it is something we work toward, with grit.
Javier E

Jonathan Haidt on the 'National Crisis' of Gen Z - WSJ - 0 views

  • he has in mind the younger cohort, Generation Z, usually defined as those born between 1997 and 2012. “When you look at Americans born after 1995,” Mr. Haidt says, “what you find is that they have extraordinarily high rates of anxiety, depression, self-harm, suicide and fragility.” There has “never been a generation this depressed, anxious and fragile.”
  • He attributes this to the combination of social media and a culture that emphasizes victimhood
  • Social media is Mr. Haidt’s present obsession. He’s working on two books that address its harmful impact on American society: “Kids in Space: Why Teen Mental Health Is Collapsing” and “Life After Babel: Adapting to a World We Can No Longer Share.
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  • What happened in 2012, when the oldest Gen-Z babies were in their middle teens? That was the year Facebook acquired Instagram and young people flocked to the latter site. It was also “the beginning of the selfie era.”
  • Mr. Haidt’s research, confirmed by that of others, shows that depression rates started to rise “all of a sudden” around 2013, “especially for teen girls,” but “it’s only Gen Z, not the older generations.” If you’d stopped collecting data in 2011, he says, you’d see little change from previous years. “By 2015 it’s an epidemic.” (His data are available in an open-source document.)
  • Mr. Haidt imagines “literally launching our children into outer space” and letting their bodies grow there: “They would come out deformed and broken. Their limbs wouldn’t be right. You can’t physically grow up in outer space. Human bodies can’t do that.” Yet “we basically do that to them socially. We launched them into outer space around the year 2012,” he says, “and then we expect that they will grow up normally without having normal human experiences.”
  • Social media and selfies hit a generation that had led an overprotected childhood, in which the age at which children were allowed outside on their own by parents had risen from the norm of previous generations, 7 or 8, to between 10 and 12.
  • That meant the first social-media generation was one of “weakened kids” who “hadn’t practiced the skills of adulthood in a low-stakes environment” with other children. They were deprived of “the normal toughening, the normal strengthening, the normal anti-fragility.
  • Now, their childhood “is largely just through the phone. They no longer even hang out together.” Teenagers even drive less than earlier generations did.
  • Mr. Haidt especially worries about girls. By 2020 more than 25% of female teenagers had “a major depression.” The comparable number for boys was just under 9%.
  • The comparable numbers for millennials at the same age registered at half the Gen-Z rate: about 13% for girls and 5% for boys. “Kids are on their devices all the time,”
  • Most girls, by contrast, are drawn to “visual platforms,” Instagram and TikTok in particular. “Those are about display and performance. You post your perfect life, and then you flip through the photos of other girls who have a more perfect life, and you feel depressed.
  • He calls this phenomenon “compare and despair” and says: “It seems social because you’re communicating with people. But it’s performative. You don’t actually get social relationships. You get weak, fake social links.”
  • Mr. Haidt says he has no antipathy toward the young, and he calls millennials “amazing.”
  • To illustrate his point about Gen Z, Mr. Haidt challenges people to name young people today who are “really changing the world, who are doing big things that have an impact beyond their closed ecosystem.”
  • He can think of only two, neither of them American: Greta Thunberg, 19, the Swedish climate militant, and Malala Yousafzai, 25, the Pakistani advocate for female education
  • I’m predicting that they will be less effective, less impactful, than previous generations.” Why? “You should always keep your eye on whether people are in ‘discover mode’ or ‘defend mode.’ ” In the former mode, you seize opportunities to be creative. In the latter, “you’re not creative, you’re not future-thinking, you’re focused on threats in the present.”
  • University students who matriculated starting in 2014 or so have arrived on campus in defend mode: “Here they are in the safest, most welcoming, most inclusive, most antiracist places on the planet, but many of them were acting like they were entering some sort of dystopian, threatening, immoral world.”
  • 56% of liberal women 18 to 29 responded affirmatively to the question: Has a doctor or other healthcare provider ever told you that you have a mental health condition? “Some of that,” Mr. Haidt says, “has to be just self-presentational,” meaning imagined.
  • This new ideology . . . valorizes victimhood. And if your sub-community motivates you to say you have an anxiety disorder, how is this going to affect you for the rest of your life?” He answers his own question: “You’re not going to take chances, you’re going to ask for accommodations, you’re going to play it safe, you’re not going to swing for the fences, you’re not going to start your own company.”
  • Whereas millennial women are doing well, “Gen-Z women, because they’re so anxious, are going to be less successful than Gen-Z men—and that’s saying a lot, because Gen-Z men are messed up, too.”
  • The problem, he says, is distinct to the U.S. and other English-speaking developed countries: “You don’t find it as much in Europe, and hardly at all in Asia.” Ideas that are “nurtured around American issues of race and gender spread instantly to the U.K. and Canada. But they don’t necessarily spread to France and Germany, China and Japan.”
  • something I hear from a lot of managers, that it’s very difficult to supervise their Gen-Z employees, that it’s very difficult to give them feedback.” That makes it hard for them to advance professionally by learning to do their jobs better.
  • “this could severely damage American capitalism.” When managers are “afraid to speak up honestly because they’ll be shamed on Twitter or Slack, then that organization becomes stupid.” Mr. Haidt says he’s “seen a lot of this, beginning in American universities in 2015. They all got stupid in the same way. They all implemented policies that backfire.”
  • Mr. Haidt, who describes himself as “a classical liberal like John Stuart Mill,” also laments the impact of social media on political discourse
  • “Social media is incompatible with liberal democracy because it has moved conversation, and interaction, into the center of the Colosseum. We’re not there to talk to each other. We’re there to perform” before spectators who “want blood.”
  • Is there a solution? “I’d raise the age of Internet adulthood to 16,” he says—“and enforce it.”
  • By contrast, “life went onto phone-based apps 10 years ago, and the protections we have for children are zero, absolutely zero.” The damage to Generation Z from social media “so vastly exceeds the damage from Covid that we’re going to have to act.”
  • Gen Z, he says, “is not in denial. They recognize that this app-based life is really bad for them.” He reports that they wish they had childhoods more like those of their parents, in which they could play outside and have adventur
Javier E

Carole Hooven On Harvard's Existential Crisis - 0 views

  • The most salutary aspect of this whole affair is that it has really helped expose the core disagreement in our current culture war. One side believes, as I do, that individual merit exists, and should be the core criterion for admission to a great university, regardless of an individual’s racial or sexual identity, and so on. The other side believes that merit doesn’t exist at all outside the oppressive paradigm of racial and sexual identity, and that membership in a designated “marginalized” group should therefore be the core criterion for advancement in academia.
  • so they discriminate against individuals on the grounds of their race before they consider merit.
  • For example: If you are black and in the fourth lowest decile of SATs and GPAs among Harvard applicants, you have a higher chance of getting into Harvard (12.8 percent admitted) than an Asian-American in the very top decile (12.7 admitted). It’s rigged, which is why it was shut down by SCOTUS.
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  • there is no debate. There’s a trade-off. But once you make identity a core qualification, you’re opening up a whole world of racist anti-racism.
  • Most Americans believe in individual merit, and advancement regardless of identity. Harvard and our new elite believe that our society is so structured as an enduring “white supremacy” that merit can only be considered after you have accounted for the effects of “intersectional oppression.”
  • each moment of truth puts a crack in the stifling, authoritarian edifice of DEI. We can bring this corruption to light. We can hold them to account. I’m certainly more hopeful about the future of liberal society now than I was a month ago.
  • the only way to cover it all up, of course, is to abolish testing students entirely (which is what so many elite colleges and universities are now doing) or to give all students an A or an A-, making any distinctions of excellence irrelevant.
  • When push comes to shove, when there is a finite number of places available, you’re in a zero-sum predicament. You have to pick between a smarter student of the wrong race and a weaker student of the right race. In the end at Harvard, being in the right race — not merit — determines your chances.
  • The more people see this for the systemic racism it is, the sooner we can throw this neo-Marxist cuckoo out of the liberal nest, and return to the airing of all ideas, regardless of the subject matter or the identity of the students
  • That’s how you can claim, as Gay does, that “diversity” and “excellence” go hand in hand, when obviously, at some point they can and do conflict.
  • The response to all this from the CRT crowd has been to insist — ever more strongly — that Gay is simply and only a victim of racism, or, in woke terminology, a victim of misogynoir. The fact that a white female university president at those same hearings lost her job before Gay did — and without any plagiarism questions — doesn’t count.
  • In the Congressional hearings, moreover, she showed little gravitas, grace, or ability to think on her feet. She has largely hidden from public view since the plagiarism revelations — not a good instinct for a leader of a huge, public-facing institution like Harvard. She is, quite obviously, a run-of-the-mill woke academic, who was promoted at breakneck speed because of her race and sex, and found herself quickly out of her depth.
  • When you look instead at what she has done as an administrator, which is where she has been focused more recently, you see it has almost all been about hiring on the basis of sex and race, persecuting heretical members of racial minorities, and removing paintings of dead white dudes. She is, at least, consistent.
  • And let’s be honest: we can all see with our own eyes that subordinating merit to race and sex is how Gay got her position. Her work, beyond the sloppy dime-store plagiarism, would be underwhelming for an average member of any faculty in the country. But for a Harvard president, it’s astonishingly mid
Javier E

AI fears are reaching the top levels of finance and law - The Washington Post - 0 views

  • In a report released last week, the forum said that its survey of 1,500 policymakers and industry leaders found that fake news and propaganda written and boosted by AI chatbots is the biggest short-term risk to the global economy. Around half of the world’s population is participating in elections this year in countries including the United States, Mexico, Indonesia and Pakistan and disinformation researchers are concerned AI will make it easier for people to spread false information and increase societal conflict.
  • AI also may be no better than humans at spotting unlikely dangers or “tail risks,” said Allen. Before 2008, few people on Wall Street foresaw the end of the housing bubble. One reason was that since housing prices had never declined nationwide before, Wall Street’s models assumed such a uniform decline would never occur. Even the best AI systems are only as good as the data they are based on, Allen said.
  • As AI grows more complex and capable, some experts worry about “black box” automation that is unable to explain how it arrived at a decision, leaving humans uncertain about its soundness. Poorly designed or managed systems could undermine the trust between buyer and seller that is required for any financial transaction
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  • Other pundits and entrepreneurs say concerns about the tech are overblown and risk pushing regulators to block innovations that could help people and boost tech company profits.
  • Last year, politicians and policymakers around the world also grappled to make sense of how AI will fit into society. Congress held multiple hearings. President Biden issued an executive order saying AI was the “most consequential technology of our time.” The United Kingdom convened a global AI forum where Prime Minister Rishi Sunak warned that “humanity could lose control of AI completely.” The concerns include the risk that “generative” AI — which can create text, video, images and audio — can be used to create misinformation, displace jobs or even help people create dangerous bioweapons.
Javier E

Bernanke review is not about blame but the Bank's outdated practices - 0 views

  • Bernanke’s 80-page assessment, the result of more than seven months’ work, is the most comprehensive independent analysis of a big central bank’s performance since an inflationary crisis hit the world economy in early 2022. He offers a dozen recommendations for change at the Bank, the strongest of which is for the MPC to begin publishing “alternative scenarios” that show how its inflation forecasts stand up in extreme situations, for example in the face of an energy price shock.
  • The review lays bare how the Bank and its international peers all failed to model the impact of the huge energy price shock that followed Russia’s invasion of Ukraine in early 2022, the disruption in global trade during the pandemic after 2020 and how workers and companies would respond to significant price changes.
  • In choosing Bernanke, one of the most respected central bankers of his generation, to lead the review, the Bank has ensured that his findings will be difficult to ignore. The former Fed chairman carried out more than 60 face-to-face interviews with Bank staff and market participants and sat in on the MPC’s November 2023 forecasting round to assess where the Bank’s forecasts and communication were failing short, from the use of computer models to the role played by “human judgment”.
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  • In his review, Bernanke compared the MPC’s forecasting record with six other central banks — in the Nordic countries, New Zealand, the United States and the eurozone — and found the Bank was particularly bad at understanding dynamics in the jobs market and had consistently forecast far higher unemployment, which had not materialised. Its other errors, on forecasting future inflation and growth, put it largely in the “middle of the pack” with its peers.
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