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“My comparison is to speed limits,” Ms. Admati said in an interview near the Stanford campus. “Basically what we have here is the market has decided nobody else should be driving faster than 70 miles an hour and these are the biggest trucks with the most explosive cargo and they are driving at almost 100 miles an hour.”

“At one level, the story on capital and liquidity ratios is very simple: From the viewpoint of the stability of the financial system, more of each is better,” he said. But the United States, he said, was constrained by practicality. If other countries aren’t willing to impose stricter capital requirements on their own banks — and they don’t appear to be — then unilateral increases would hurt the American banking industry and the broader economy.

“If you lower the speed limit on one highway, you’ll have fewer accidents on that highway,” he said. “But the other road will just get more crowded.”

Ms. Admati compares this logic to letting American manufacturers pollute so that they can compete more effectively with companies in China.

banks continue to rely on debt financing far more than other kinds of corporations. Last year, the eight largest American banks together derived less than 5 percent of their funding from shareholders, according to Thomas M. Hoenig, vice chairman of the Federal Deposit Insurance Corporation. The average equity financing for nonfinancial corporations was about 60 percent.

Ms. Admati argues that banks are taking larger risks than other kinds of companies because they use other people’s money, and the results are that they keep crashing the economy.

The industry’s more serious argument is that equity is more expensive than debt. If governments require banks to raise more equity, the industry warns, the results would be higher interest rates, less lending and slower economic growth.

an increase of 10 percentage points in capital requirements would raise interest rates by 0.25 to 0.45 percentage points.

This, in the view of Ms. Admati, is a small price to pay for fewer crises. She notes that debt is cheaper than equity largely because of government subsidies — not just deposit insurance but also tax deductions for interest payments on other kinds of debt — so more equity would basically transfer costs from taxpayers to banks

the economic impact may well be positive. A study last year by Benjamin H. Cohen, an economist at the Bank for International Settlements, found that banks with more capital tended to make more loans.

Ms. Admati says large banks should be required to raise at least 30 percent of their funding in the form of equity, about six times more than the current average for the largest American banks.

she says, banks should be required to suspend dividend payments, thus increasing their equity by retaining their profits, until they are sufficiently capitalized.

She freely concedes that there is no particular science behind her 30 percent equity figure. The point, she says, is that 5 percent is the wrong ballpark. The proper baseline, in her view, is what the market imposes on other kinds of companies.

“We have too much belief that we can be precise,” she said. “I don’t mean 20 percent. I don’t mean 30 percent. I mean add a digit. I mean a lot more.”

Except Mitt Romney was not a businessman; he was a master financial speculator who bought, sold, flipped, and stripped businesses. He did not build enterprises the old-fashioned way—out of inspiration, perspiration, and a long slog in the free market fostering a new product, service, or process of production. Instead, he spent his 15 years raising debt in prodigious amounts on Wall Street so that Bain could purchase the pots and pans and castoffs of corporate America, leverage them to the hilt, gussy them up as reborn “roll-ups,” and then deliver them back to Wall Street for resale—the faster the better.

That is the modus operandi of the leveraged-buyout business, and in an honest free-market economy, there wouldn’t be much scope for it because it creates little of economic value. But we have a rigged system—a regime of crony capitalism—where the tax code heavily favors debt and capital gains, and the central bank purposefully enables rampant speculation by propping up the price of financial assets and battering down the cost of leveraged finance.

So the vast outpouring of LBOs in recent decades has been the consequence of bad policy, not the product of capitalist enterprise. I know this from 17 years of experience doing leveraged buyouts at one of the pioneering private-equity houses, Blackstone, and then my own firm. I know the pitfalls of private equity. The whole business was about maximizing debt, extracting cash, cutting head counts, skimping on capital spending, outsourcing production, and dressing up the deal for the earliest, highest-profit exit possible. Occasionally, we did invest in genuine growth companies, but without cheap debt and deep tax subsidies, most deals would not make economic sense.

In truth, LBOs are capitalism’s natural undertakers—vulture investors who feed on failing businesses. Due to bad policy, however, they have now become monsters of the financial midway that strip-mine cash from healthy businesses and recycle it mostly to the top 1 percent.

Accordingly, Bain’s returns on the overwhelming bulk of the deals—67 out of 77—were actually lower than what a passive S&P 500 indexer would have earned even without the risk of leverage or paying all the private-equity fees. Investor profits amounted to a prosaic 0.7X the original investment on these deals and, based on its average five-year holding period, the annual return would have computed to about 12 percent—well below the 17 percent average return on the S&P in this period.

having a trader’s facility for knowing when to hold ’em and when to fold ’em has virtually nothing to do with rectifying the massive fiscal hemorrhage and debt-burdened private economy that are the real issues before the American electorate

Indeed, the next president’s overriding task is restoring national solvency—an undertaking that will involve immense societywide pain, sacrifice, and denial and that will therefore require “fairness” as a defining principle. And that’s why heralding Romney’s record at Bain is so completely perverse. The record is actually all about the utter unfairness of windfall riches obtained under our anti-free market regime of bubble finance.

When Romney opened the doors to Bain Capital in 1984, the S&P 500 stood at 160. By the time he answered the call to duty in Salt Lake City in early 1999, it had gone parabolic and reached 1270. This meant that had a modern Rip Van Winkle bought the S&P 500 index and held it through the 15 years in question, the annual return (with dividends) would have been a spectacular 17 percent. Bain did considerably better, of course, but the reason wasn’t business acumen.

The credentials that Romney proffers as evidence of his business acumen, in fact, mainly show that he hung around the basket during the greatest bull market in recorded history.

The Wall Street Journal examined 77 significant deals completed during that period based on fundraising documents from Bain, and the results are a perfect illustration of bull-market asymmetry. Overall, Bain generated an impressive $2.5 billion in investor gains on $1.1 billion in investments. But 10 of Bain’s deals accounted for 75 percent of the investor profits.

The secret was leverage, luck, inside baseball, and the peculiar asymmetrical dynamics of the leveraged gambling carried on by private-equity shops. LBO funds are invested as equity at the bottom of a company’s capital structure, which means that the lenders who provide 80 to 90 percent of the capital have no recourse to the private-equity sponsor if deals go bust. Accordingly, LBO funds can lose 1X (one times) their money on failed deals, but make 10X or even 50X on the occasional “home run.” During a period of rising markets, expanding valuation multiples, and abundant credit, the opportunity to “average up” the home runs with the 1X losses is considerable; it can generate a spectacular portfolio outcome.

By contrast, the 10 home runs generated profits of $1.8 billion on investments of only $250 million, yielding a spectacular return of 7X investment. Yet it is this handful of home runs that both make the Romney investment legend and also seal the indictment: they show that Bain Capital was a vehicle for leveraged speculation that was gifted immeasurably by the Greenspan bubble. It was a fortunate place where leverage got lucky, not a higher form of capitalist endeavor or training school for presidential aspirants.

The startling fact is that four of the 10 Bain Capital home runs ended up in bankruptcy, and for an obvious reason: Bain got its money out at the top of the Greenspan boom in the late 1990s and then these companies hit the wall during the 2000-02 downturn, weighed down by the massive load of debt Bain had bequeathed them. In fact, nearly $600 million, or one third of the profits earned by the home-run companies, had been extracted from the hide of these four eventual debt zombies.

The bankruptcy forced the closure of about 250—or 40 percent—of the company’s stores and the loss of about 5,000 jobs. Yet the moral of the Stage Stores saga is not simply that in this instance Bain Capital was a jobs destroyer, not a jobs creator. The larger point is that it is actually a tale of Wall Street speculators toying with Main Street properties in defiance of sound finance—an anti-Schumpeterian project that used state-subsidized debt to milk cash from stores that would not have otherwise survived on the free market.

Ironically, the businesses and jobs that Staples eliminated were the office-supply counterparts of the cracker-box stores selling shoes, shirts, and dresses that Bain kept on artificial life-support at Stage Stores Inc. At length, Wal-Mart eliminated these jobs and replaced them with back-of–the-store automation and front-end part-timers, as did Staples, which now has 40,000 part-time employees out of its approximate 90,000 total head count. The pointless exercise of counting jobs won and lost owing to these epochal shifts on the free market is obviously irrelevant to the job of being president, but the fact that Bain made $15 million from the winner and $175 million from the loser is evidence that it did not make a fortune all on its own. It had considerable help from the Easy Button at the Fed.

The lesson is that LBOs are just another legal (and risky) way for speculators to make money, but they are dangerous because when they fail, they leave needless economic disruption and job losses in their wake. That’s why LBOs would be rare in an honest free market—it’s only cheap debt, interest deductions, and ludicrously low capital-gains taxes that artifically fuel them.

The larger point is that Romney’s personal experience in the nation’s financial casinos is no mark against his character or competence. I’ve made money and lost it and know what it is like to be judged. But that experience doesn’t translate into answers on the great public issues before the nation, either. The Romney campaign’s feckless narrative that private equity generates real economic efficiency and societal wealth is dead wrong.

The Bain Capital investments here reviewed accounted for $1.4 billion or 60 percent of the fund’s profits over 15 years, by my calculations. Four of them ended in bankruptcy; one was an inside job and fast flip; one was essentially a massive M&A brokerage fee; and the seventh and largest gain—the Italian Job—amounted to a veritable freak of financial nature.

In short, this is a record about a dangerous form of leveraged gambling that has been enabled by the failed central banking and taxing policies of the state. That it should be offered as evidence that Mitt Romney is a deeply experienced capitalist entrepreneur and job creator is surely a testament to the financial deformations of our times.

"There's no word for accountability in Finnish," he later told an audience at the Teachers College of Columbia University. "Accountability is something that is left when responsibility has been subtracted."

Only a small number of independent schools exist in Finland, and even they are all publicly financed. None is allowed to charge tuition fees. There are no private universities, either. This means that practically every person in Finland attends public school, whether for pre-K or a Ph.D.

From his point of view, Americans are consistently obsessed with certain questions: How can you keep track of students' performance if you don't test them constantly? How can you improve teaching if you have no accountability for bad teachers or merit pay for good teachers? How do you foster competition and engage the private sector? How do you provide school choice?

Finland has no standardized tests. The only exception is what's called the National Matriculation Exam, which everyone takes at the end of a voluntary upper-secondary school, roughly the equivalent of American high school.

Instead, the public school system's teachers are trained to assess children in classrooms using independent tests they create themselves. All children receive a report card at the end of each semester, but these reports are based on individualized grading by each teacher.

"Oh," he mentioned at one point, "and there are no private schools in Finland."

what matters is that in Finland all teachers and administrators are given prestige, decent pay, and a lot of responsibility. A master's degree is required to enter the profession, and teacher training programs are among the most selective professional schools in the country. If a teacher is bad, it is the principal's responsibility to notice and deal with it.

"Real winners do not compete." It's hard to think of a more un-American idea, but when it comes to education, Finland's success shows that the Finnish attitude might have merits. There are no lists of best schools or teachers in Finland. The main driver of education policy is not competition between teachers and between schools, but cooperation.

the number of foreign-born residents in Finland doubled during the decade leading up to 2010, and the country didn't lose its edge in education. Immigrants tended to concentrate in certain areas, causing some schools to become much more mixed than others, yet there has not been much change in the remarkable lack of variation between Finnish schools in the PISA surveys across the same period.

Decades ago, when the Finnish school system was badly in need of reform, the goal of the program that Finland instituted, resulting in so much success today, was never excellence. It was equity.

Since the 1980s, the main driver of Finnish education policy has been the idea that every child should have exactly the same opportunity to learn, regardless of family background, income, or geographic location. Education has been seen first and foremost not as a way to produce star performers, but as an instrument to even out social inequality.

this means that schools should be healthy, safe environments for children. This starts with the basics. Finland offers all pupils free school meals, easy access to health care, psychological counseling, and individualized student guidance.

In fact, since academic excellence wasn't a particular priority on the Finnish to-do list, when Finland's students scored so high on the first PISA survey in 2001, many Finns thought the results must be a mistake. But subsequent PISA tests confirmed that Finland -- unlike, say, very similar countries such as Norway -- was producing academic excellence through its particular policy focus on equity.

Finally, in Finland, school choice is noticeably not a priority, nor is engaging the private sector at all.

Like Finland, Norway is small and not especially diverse overall, but unlike Finland it has taken an approach to education that is more American than Finnish. The result? Mediocre performance in the PISA survey. Educational policy, Abrams suggests, is probably more important to the success of a country's school system than the nation's size or ethnic makeup.

there were 18 states in the U.S. in 2010 with an identical or significantly smaller percentage of foreign-born residents than Finland

the goal of educational policy in the U.S. -- as articulated by most everyone from President Obama on down -- is to preserve American competitiveness by doing the same thing. Finland's experience suggests that to win at that game, a country has to prepare not just some of its population well, but all of its population well, for the new economy.

Finland's experience shows that it is possible to achieve excellence by focusing not on competition, but on cooperation, and not on choice, but on equity

The problem facing education in America isn't the ethnic diversity of the population but the economic inequality of society, and this is precisely the problem that Finnish education reform addressed. More equity at home might just be what America needs to be more competitive abroad.

At the risk of oversimplifying, take the example of a family with a diabetic member who must pay for insulin on a regular basis

The family also happens to own stock in the three powerful pharmaceutical companies that manufacture insulin in the United States

price increases have resulted in higher profits for company executives and their shareholders.

Whether those price hikes ultimately harm or benefit the family depends on two factors: how much they spend on insulin and how much of a stake in the insulin companies they own through the stock market.

researchers use data from the federal Survey of Consumer Finances and the Consumer Expenditure Survey to calculate the distribution of corporate equity (e.g., stocks and business equity) and of total consumer expenditures. They find that corporate equity is much more unequally distributed than expenditures.

The top 20 percent of U.S. households own nearly 90 percent of the country’s total equity, according to their calculations. But those households account for a hair under 40 percent of total consumer spending

the bottom 80 percent of the country owns just 10 percent of the equity but spends 60 percent of the money.

On net, that means it’s nearly impossible for the typical U.S. family to make up for higher prices via the performance of their stock portfolio. When prices rise, low- and middle-class families pay. Wealthy families profit

They find that monopolistic pricing takes a bite out of every income group’s share of national income, with the notable exception of the top 20 percent, whose incomes rise. In effect, companies are using their market power to extract wealth from poor and middle-class households and deposit it in the pockets of the wealthy, to the tune of about 3 percent of national household income in 2016.

The implication of these findings is that antitrust enforcement has potential to be a tool in the fight against rising inequality by reducing the ability of large companies to set high prices that primarily benefit the wealthy. Conversely, the findings suggest that a recent lapse in that enforcement is contributing to the growing gap between the rich and poor.

“I know you don’t want to hear this from me, but the wealthy are getting wealthier, and again, the belly of America is getting hurt,” he said. “Look, I’m a hard-core capitalist. But let’s be fair — capitalism only works if it starts at the top and filters down. If it doesn’t get down, we’re going to lose.”

“Taken together, they are fraying the fabric of our system,” he said.And once again, he pointed the finger at Washington, prompting the crowd to cheer

Mr. Fuld also quickly offered three data points that he suggested made it clear that Lehman could have survived, had the Fed not forced it to fail: “When Lehman was mandated into bankruptcy, we said our equity capital was $28 billion. Second, we had a Tier 1 capital ratio of 11 percent. Third, Lehman had unencumbered collateral of $127 billion.”

“It’s very easy to look back. As they said, hindsight is 20/20. There is no ‘if’ or ‘woulda coulda shoulda,’ ” he said. “You can only make a decision at any specific time with the best information that you think you have.”Going further, Mr. Fuld insisted that he could have saved the firm: “Lehman Brothers at the point of 2008 was not a bankrupt company.”

Asked what he could have done differently, he avoided answering directly, and instead said, “I think I missed the violence of the market and how it spread from one asset class to the next. Did we do everything we could? Did we fall prey to some other agendas? I’ll leave it at that.”

In the end, Mr. Fuld seemed hung up on the fate of his own firm, not the broader crisis that its bankruptcy helped ignite.

For example, recent research by the Economic Policy Institute shows that men still outearn women at every rung of the income ladder. The higher up the ladder, the bigger the gap. In 2014, women in the 95th percentile of female earners made 79 percent of wages for men at the 95th percentile, while women in the lowest 10th percentile made 91 cents for each $1 earned by their male counterparts.

Men even make more than women in traditionally female occupations. Recent research led by the University of California, San Francisco, shows that male registered nurses outearn female registered nurses by an average of $5,100 per year across most specialties and positions — an earnings gap that has not improved over the past 30 years. Other research has shown that male schoolteachers tend to outearn female schoolteachers.

In 2010, 2012 and 2014, congressional Republicans blocked consideration of the Paycheck Fairness Act, a bill supported by President Obama that would have extended pay-equity rules that apply to federal contractors to the entire American work force, in addition to making needed updates to the Equal Pay Act. Obstructionism has only made the problem worse, and an even more pressing one for the presidential candidates to address.

A new study by finance professors Aleksandar Andonov of Erasmus University Rotterdam and Joshua Rauh of Stanford University looks at expected returns among more than 230 public pension plans with more than $2.8 trillion in combined assets.

For their portfolios, generally consisting of cash, U.S. and international bonds and stocks, real estate, hedge funds and private-equity or buyout funds, these pension plans report that they will earn an average of 7.6% annually over the long term. (That’s 4.8% after their estimates of inflation.) These funds often define “long term” as between 10 and 30 years.

Based on how they divvy up their money, how much are these pension funds assuming specific assets will earn?

They expect cash to return an average of 3.2% annually over the long run; bonds, 4.9%; such “real assets” as commodities and real estate, 7.7%; hedge funds, 6.9%; publicly traded stocks, 8.7%; private-equity funds, 10.3%.

consider bonds. The simplest reliable indicator of how much you will earn from a portfolio of bonds in the future is their yield to maturity in the present. With 10-year Treasurys yielding 2.6% and investment-grade corporate bonds averaging under 3.7%, it would take a near-miracle today to get anything close to 4% out of a high-quality fixed-income portfolio.

That’s below the U.S. average of 10.2% annually over the past 90 years. But stocks were far cheaper over most of that period than they are today, so their returns were naturally higher.

stocks aren’t likely to earn more than an average of 5.9% annually over the long run from today’s lofty prices.

Among those, the least implausible scenario is higher inflation. So the pension funds could hit their 8.7% stock return that way — but such a surge in the cost of living would crimp their bond returns. What they would gain on their stocks they would lose on their bonds.

the new study of estimated returns finds that the older a pension fund’s holdings of private equity are, the more likely its officials are to extrapolate those returns — as if the good times of the early 2000s, when deals abounded and buyouts were cheaper, were still rolling.

Why do expectations among pension plans run so high? Because they have to, the chief investment officer of a large public pension plan tells me. State laws guarantee generous retirement benefits for millions of current and former government employees. To appear as if they can meet those obligations, the pension plans have no choice but to set their expected returns higher than reality is likely to deliver.

That’s the exact opposite of what the rest of us should do. Sooner or later, investors who build their expectations on hope rather than on arithmetic end up sorry.

the oil & gas (O&G) and Automotive sectors are increasingly exposed to the same kind of disruptive change that the German utilities have faced over the last decade.

It is the marginal change in the composition of the German power market every year over the last decade rather than the annual system change in the composition of demand that explains why the German utilities E.ON and RWE have lost ~80% of their market capitalization since 2008.

In a mature market with a fast-growing, low-cost new entrant (renewables) the equity market will price in the decline of fossil-fuels far quicker than their market share will actually fall

what matters for equity valuations is which energy sources dominate the growth in demand, not which sources dominate the overall level of demand.

Equities are priced on expected discounted cash-flows, and for energy companies expected future cash-flows depend on market expectations of future volumes sold and prices achieved. In the German power market up until 2008, the largest incumbent power generators, E.ON and RWE, had a diversified mix of conventional power plants consisting mainly of fossil-fuel (i.e. coal and gas) and nuclear capacity, but these incumbents were not investing in renewable energy at all over 2002-2008.

nearly all of the demand growth over 2002-08 has been captured by renewable energy sources. Indeed, and as can be seen in Figure 1, of the total 50TWh increase in demand over these six years, 47TWh was captured by renewables, and only 3TWh by conventional power sources. It also means that since 2008, as renewables have continued to grow relentlessly, the market share of conventional generation, including fossil fuels, has inexorably declined.

even after the last 15 years of spectacular growth in renewables, conventional generation – nuclear and fossil-fuel based capacity combined – still accounts for the lion’s share of generation, with 325TWh of total output in 2018 (60% of the market) versus 219TWh for renewables (40%). This is precisely why the German government is having to accelerate the phase-out of coal to help it achieve its longer-term emissions targets – the current rate of system change is simply not fast enough to meet those targets.

the equity market started to price in the end of conventional power generation in Germany as soon as it peaked 10 years ago, even though at that time it still accounted for over 80% of the market.

it would be of little consolation to shareholders in the oil majors if the share of oil and gas in the global energy mix in 2030 were still above 50% but demand had peaked before that and prices had started falling owing to the continuing rapid growth of low-cost renewables.

it is worth contemplating that in 2017, while fossil fuels still accounted for 85% of total system demand and renewables for only 3.6%, renewables already accounted for 30% of the growth in energy demand

But Kendi’s advocacy for antiracism has received its share of backlash, especially after "How To Be An Antiracist" became more widely read during the summer’s protests.

Coleman Hughes, a fellow at the New York-based policy center Manhattan Institute and frequent critic of Kendi’s, argues the latter’s solutions for racist policies promote discrimination against other racial and ethnic groups and that his efforts are ultimately fruitless because racial equity is ultimately “unachievable.”

endi, for his part, believes history shows that real change requires bold thinking.

The Council's staff will include a special assistant to the president to focus specifically on "policies to advance equity for Black, indigenous and Latina women and girls of color," Klein said

Areas of long-term focus for the Council, Reynoso said, will include "increasing economic security and opportunity by addressing the structural barriers to women's participation in the labor force; decreasing wage and wealth gaps; and addressing the caregiving needs of American families and supporting care workers."

The second executive order the president signed Monday is directed at the Department of Education, and seems expressly aimed at reversing a controversial rule on campus sexual assault and harassment that was issued last year by then-President Trump's education secretary, Betsy DeVos.

"[guarantee] an educational environment free from discrimination on the basis of sex, including discrimination in the form of sexual harassment, which encompasses sexual violence, and including discrimination on the basis of sexual orientation or gender identity."

Countries’ commitments should reflect “equity and the principle of common but differentiated responsibilities and respective capabilities in the light of different national circumstances and in the context of sustainable development and efforts to eradicate poverty.”

It’s indisputable that poor nations should be allowed to develop and to eradicate poverty. Countries, obviously, can contribute to the global effort only to the extent of their capabilities

equity brings up a different, more slippery matter. What’s the just allocation of responsibility? What’s fair?

Countries, it turns out, have rather different takes on this question, potentially complicating efforts to make progress against climate change.

Consider the intended “nationally determined contributions” to battle climate change that various countries announced after the climate summit in Paris in 2015

One interesting study examined the notions of justice underpinning each national proposal. They were all over the map.

Critically, none of those experts considered the consequences of applying their logic to all countries across the board.

The aggregate notions of fairness did not add up to a solution. The countries that claimed responsibility for a small share of global emissions actually accounted for about a quarter of the total. Countries with per capita emissions ranging from 0.5 tons of carbon dioxide to 25 tons of CO2, roughly five times the global average, used this variable to justify modest plans.

The idea of an equitable and just distribution of responsibility might seem essential to achieve the shared goal of preventing a climate catastrophe

I can’t put precise odds on members of Congress accepting that the United States must bear one-fourth of the worldwide burden to cut greenhouse gas emissions because of the actions of long-dead Americans who had no idea they were causing damage. But the probability is quite low.

It seems only fair that countries such as the United States, which accounts for about a quarter of the greenhouse gases emitted by humanity since before the Industrial Revolution, should bear a much bigger share of the burden than, say, Brazil, which accounts for only 1 percent of historical emissions.

The United States, moreover, is quite rich and was made that way largely thanks to abundant and cheap fossil fuel.

Yet parsing how equity is to be achieved can get complicated

Should the goal be to equalize emissions per person, which today tilt heavily toward rich countries? (The United States emits some 18 tons per person; for India, the number is less than 3.

Or should we first cut emissions associated with the production of luxury goods and services that are mostly consumed in rich countries? Shouldn’t the emissions from producing the made-in-China toy you bought on Amazon accrue to the United States, where it is being played with?

They are in tension with the strategies championed by most rich countries, which are more sympathetic to the idea that historical emissions should be grandfathered in — not counted against them — and that they should be reduced in the future wherever reducing them is cheapest, which happens to be mostly in the developing world.

Many countries cannot afford the necessary mitigation pathways, either because they don’t have the resources to finance the new technologies needed to abandon fossil fuels, or because the resources they have are best deployed toward, say, buying air conditioning units or otherwise raising the standard of living.

There are essential truths that the world must acknowledge:

These countries are likely to face the gravest risks from climate change — whether measured in devastated crops, destroyed communities or people’s lives. Rich nations owe it to the world to ensure that resources and technologies are available for sufficient mitigation, adaptation and disaster relief

— not because they emitted a lot of greenhouse gases in the past, but because the task of preventing climate change and limiting its damage cannot be avoided, and they can afford it.

Many defended the fairness of their offer by pointing out that they accounted for a “small share” of global greenhouse gas emissions; others referred to their low per capita emissions. Many based their arguments on their vulnerability to climate change.

Consider the political ramifications of some climate justice arguments.

And that’s even without pointing out that China, today, emits more than double the amount of greenhouse gases the United States does.

Or consider how one research paper apportioned the remaining emissions budget — the greenhouse gases that can still be emitted in the future without breaching the warming ceiling (which in this estimate was set at 2 degrees Celsius)

It calculated nations’ responsibility for emissions starting only in 1992, when the world became aware of climate change, and assumed that each citizen of the world is entitled to the same budget since then. On this basis, it concluded that the United States would be entitled to 4.4 percent of the remainder, less than a fifth of its historic share.

That is fair. But it is also only 50 billion tons, or roughly nine years’ worth of emissions, at the nation’s current rate. I can’t imagine an administration that agreed to this surviving for long

The argument from guilt — built on the assumption that rich nations’ past development and emissions have incurred a moral debt to the rest of the world — will likely short-circuit the best case for action.

Better to draw on a different moral principle: to expect results from nations according to their capabilities and to assist them according to their needs. That frame could allow the job to get done.

For instance, when a Harvard scholar such as Steven Pinker speaks of “disempowering D.E.I.” as a necessary reform in American higher education, he’s not opposing diversity itself. Pinker is liberal, donates substantially to the Democratic Party and “loathes” Donald Trump. The objections he raises are shared by a substantial number of Americans across the political spectrum.

, the problem with D.E.I. isn’t with diversity, equity, or inclusion — all vital values.

First, it is a moral necessity for colleges to be concerned about hateful discourse, including hateful language directed at members of historically marginalized groups. Moreover, colleges that receive federal funds have a legal obligation

I’ll share with you three pervasive examples

In the name of D.E.I., all too many institutions have violated their constitutional commitments to free speech, due process and equal protection of the law.

Yet that is no justification for hundreds of universities to pass and maintain draconian speech codes on campus, creating a system of unconstitutional censorship that has been struck down again and again and again in federal court. Nor is it a justification for discriminating against faculty members for their political views or for compelling them to speak in support of D.E.I.

There is a better way to achieve greater diversity, equity, inclusion and related goals. Universities can welcome students from all walks of life without unlawfully censoring speech. They can respond to campus sexual violence without violating students’ rights to due process. They can diversify the student body without discriminating on the basis of race

Second, there is a moral imperative to respond to sexual misconduct on campus.

that is no justification for replacing one tilted playing field with another. Compelled in part by constitutionally problematic guidance from the Obama administration, hundreds of universities adopted sexual misconduct policies that strip the most basic due process protections from accused students. The result has been systematic injustice

The due process problem was so profound that in 2019 a state appellate court in California — hardly a bastion of right-wing jurisprudence — ruled that “fundamental fairness” entitles an accused student to cross-examine witnesses in front of a neutral adjudicator.

Third, it is urgently necessary to address racial disparities in campus admissions and faculty hiring — but, again, not at the expense of the Constitution.

it is difficult to ignore the overwhelming evidence that Harvard attempted to achieve greater diversity in part by systematically downranking Asian applicants on subjective grounds, judging them deficient in traits such as “positive personality,” likability, courage, kindness and being “widely respected.” That’s not inclusion; it’s discrimination.

Our nation has inflicted horrific injustices on vulnerable communities. And while the precise nature of the injustice has varied — whether it was slavery, Jim Crow, internment or the brutal conquest of Native American lands — there was always a consistent theme: the comprehensive denial of constitutional rights.

But one does not correct the consequences of those terrible constitutional violations by inflicting a new set of violations on different American communities in a different American era. A consistent defense of the Constitution is good for us all,

The danger posed by D.E.I. resides primarily not in these virtuous ends, but in the unconstitutional means chosen to advance them.

Virtuous goals should not be accomplished by illiberal means.

In 1998 alone, Mr. Romney’s final full year at Bain, The Times was able to identify roughly $90 million in fees collected by the firm across its various funds, a figure that is probably low because most companies in Bain’s portfolio did not have to file financial disclosures. These fees covered Bain’s expenses — like rent, salaries and lawyers — and the bulk of the remaining money was awarded to Bain employees as annual bonuses.

Bonuses were not the main drivers of the immense wealth accumulated by Mr. Romney and other Bain executives. That came from their share of Bain’s “carried interest,” the firm’s cut of its funds’ investment profits, as well as the returns from personal investments in Bain deals.

Americans are consistently obsessed with certain questions: How can you keep track of students' performance if you don't test them constantly? How can you improve teaching if you have no accountability for bad teachers or merit pay for good teachers? How do you foster competition and engage the private sector? How do you provide school choice?

The answers Finland provides seem to run counter to just about everything America's school reformers are trying to do.

Finland has no standardized tests

Instead, the public school system's teachers are trained to assess children in classrooms using independent tests they create themselves.

As for accountability of teachers and administrators, Sahlberg shrugs. "There's no word for accountability in Finnish," he later told an audience at the Teachers College of Columbia University. "Accountability is something that is left when responsibility has been subtracted."

For Sahlberg what matters is that in Finland all teachers and administrators are given prestige, decent pay, and a lot of responsibility. A master's degree is required to enter the profession, and teacher training programs are among the most selective professional schools in the country. If a teacher is bad, it is the principal's responsibility to notice and deal with it

Decades ago, when the Finnish school system was badly in need of reform, the goal of the program that Finland instituted, resulting in so much success today, was never excellence. It was equity.

There are no lists of best schools or teachers in Finland. The main driver of education policy is not competition between teachers and between schools, but cooperation

in Finland, school choice is noticeably not a priority, nor is engaging the private sector at all.

And while Americans love to talk about competition, Sahlberg points out that nothing makes Finns more uncomfortable.

ince the 1980s, the main driver of Finnish education policy has been the idea that every child should have exactly the same opportunity to learn, regardless of family background, income, or geographic location. Education has been seen first and foremost not as a way to produce star performers, but as an instrument to even out social inequality.

this means that schools should be healthy, safe environments for children. This starts with the basics. Finland offers all pupils free school meals, easy access to health care, psychological counseling, and individualized student guidance.

Samuel Abrams, a visiting scholar at Columbia University's Teachers College, has addressed the effects of size and homogeneity on a nation's education performance by comparing Finland with another Nordic country: Norway. Like Finland, Norway is small and not especially diverse overall, but unlike Finland it has taken an approach to education that is more American than Finnish. The result? Mediocre performance in the PISA survey

the goal of educational policy in the U.S. -- as articulated by most everyone from President Obama on down -- is to preserve American competitiveness by doing the same thing. Finland's experience suggests that to win at that game, a country has to prepare not just some of its population well, but all of its population well, for the new economy. To possess some of the best schools in the world might still not be good enough if there are children being left behind.

Finland's dream was that we want to have a good public education for every child regardless of where they go to school or what kind of families they come from, and many even in Finland said it couldn't be done." Clearly, many were wrong. It is possible to create equality

Finland's experience shows that it is possible to achieve excellence by focusing not on competition, but on cooperation, and not on choice, but on equity.

The N.A.A.C.P. and other civil rights groups have criticized the Biden administration for not taking the step to cancel student loans, saying it is one of the biggest obstacles holding back Black people from sharing in the wealth of other Americans.

Officials said that the president’s visit on Tuesday was intended to signal a new emphasis on racial equity and justice for Black Americans. Mr. Biden also said that he had directed Vice President Kamala Harris to lead Democrats in a sweeping legislative effort to protect voting rights, an issue that is critical to his legacy but faces increasingly daunting odds in the Senate.

Despite investigations, no one was ever convicted of crimes related to the Tulsa massacre. Mr. Biden has promised that his Justice Department will be more active in helping to root out bias and bigotry in American police departments. The Justice Department has already begun “pattern or practice” investigations in Louisville, Ky., and Minneapolis, which are intended to examine excessive force, biased policing and other misconduct by officers.

The White House said the initiative will also address the "systemic lack of disaggregated data" on the AA and NHPI communities in federal statistical systems, as it noted how these communities together are the "fastest growing ethnic group" in the US. Read More

Krystal Ka'ai, who is a native Hawaiian, will lead the White House initiative. Ka'ai comes to her new role from Capitol Hill, where she served as the executive director of the bicameral Congressional Asian Pacific American Caucus since 2013.

Last week, the President signed into law a bill intended to counter the rise in anti-Asian hate crimes by creating a new Justice Department position to expedite review of potential Covid-19-related hate crimes and incidents.

“Our South Side communities, our West Side communities are littered with broken promises, unkept commitments,” Stacy Davis Gates, the vice president of the teachers’ union, said this week, alluding to Ms. Lightfoot. “This contract has to represent something different for the city of Chicago — it has got to represent something different. And she ran to do that. Period.”

Chicago, a city of 2.7 million people, faces a strained municipal budget with a looming deficit, a serious pension crisis and a school system that has struggled with its finances (though in recent months they have stabilized somewhat, largely because of increased state aid).

“The fact is, there is no more money,” Ms. Lightfoot said on Friday

In negotiations, the city has offered teachers a 16 percent raise over five years, while union leaders called for increases of 15 percent over a shorter three-year term.

Lightfoot dismissed suggestions that she was turning her back on her campaign pledges related to equity. Like union leaders, she said, she wanted more nurses in schools, more counselors, more social workers. But she questioned whether the city’s affordable housing policy should be set as part of one union’s contract negotiations, rather than in a broader conversation across the city.

“I’m seeing just a stubbornness: I think that she is mistaking intransigence for strength,” said Maressa Spinak, a special-education teacher

Even in a heavily Democratic city where support for labor unions is strong, Ms. Lightfoot faced conflicting messages on how to proceed. The editorial boards of Chicago’s two main newspapers, The Tribune and The Sun-Times, focused on the city’s bleak fiscal outlook and urged her to stand tough against some of the union’s demands.But for many moved by Ms. Lightfoot’s campaign promises about neighborhood investment and equity in schools, the lack of a deal was discouraging, confusing and highly inconvenient.

“We have two Chicagos: There’s a Chicago of workers and longtime residents,” said Ms. de Jesus Alejandre, who did not vote for Ms. Lightfoot. “And then there’s a Chicago that’s getting much more love and attention from politicians, for the rich and the elites who don’t use our public resources.”The dispute with the teachers was, in some ways, a microcosm of the broader challenge facing Ms. Lightfoot: how to lead a city with limited cash and entrenched financial problems, while trying to create equity in a place that has struggled with segregation and disinvestment for decades.

“But the fact that the mayor is talking about it, that the teachers’ union is banging the drum about it, probably means that we’re in a better place,” he said. “We’re having the conversation.”

The company’s chief executive was briefly fired after the nonprofit board lost trust in him.

OpenAI has spent the last year mired in scandal

Whistle-blowers alleged to the Securities and Exchange Commission that OpenAI’s nondisclosure agreements were illegal.

Safety researchers have left the company in droves

Now the firm is restructuring its core business as a for-profit, seemingly prompting the departure of more key leaders

On Friday, The Wall Street Journal reported that OpenAI rushed testing of a major model in May, attempting to undercut a rival’s publicity; after the release, employees found out the model exceeded the company’s standards for safety. (The company told The Journal the findings were the result of a methodological flaw.)

This behavior would be concerning in any industry, but according to OpenAI itself, A.I. poses unique risks. The leaders of the top A.I. firms and leading A.I. researchers have warned that the technology could lead to human extinction.

Since more comprehensive national A.I. regulations aren’t coming anytime soon, we need a narrow federal law allowing employees to disclose information to Congress if they reasonably believe that an A.I. model poses a significant safety risk

But McKinsey did not hold the majority of employees’ compensation hostage in exchange for signing lifetime nondisparagement agreements, as OpenAI did.

People reporting violations of the Atomic Energy Act have more robust whistle-blower protections than those in most fields, while those working in biological toxins for several government departments are protected by proactive, pro-reporting guidance. A.I. workers need similar rules.

Many companies maintain a culture of secrecy beyond what is healthy. I once worked at the consulting firm McKinsey on a team that advised Immigration and Customs Enforcement on implementing Donald Trump’s inhumane immigration policies. I was fearful of going public

Congress should establish a special inspector general to serve as a point of contact for these whistle-blowers. The law should mandate companies to notify staff about the channels available to them, which they can use without facing retaliation.

Earlier this month, OpenAI released a highly advanced new model. For the first time, experts concluded the model could aid in the construction of a bioweapon more effectively than internet research alone could. A third party hired by the company found that the new system demonstrated evidence of “power seeking” and “the basic capabilities needed to do simple in-context scheming

penAI decided to publish these results, but the company still chooses what information to share. It is possible the published information paints an incomplete picture of the model’s risks.

The A.I. safety researcher Todor Markov — who recently left OpenAI after nearly six years with the firm — suggested one hypothetical scenario. An A.I. company promises to test its models for dangerous capabilities, then cherry-picks results to make the model look safe. A concerned employee wants to notify someone, but doesn’t know who — and can’t point to a specific law being broken. The new model is released, and a terrorist uses it to construct a novel bioweapon. Multiple former OpenAI employees told me this scenario is plausible.

The United States’ current arrangement of managing A.I. risks through voluntary commitments places enormous trust in the companies developing this potentially dangerous technology. Unfortunately, the industry in general — and OpenAI in particular — has shown itself to be unworthy of that trust, time and again.

The fate of the first attempt to protect A.I. whistle-blowers rests with Governor Gavin Newsom of California. Mr. Newsom has hinted that he will veto a first-of-its-kind A.I. safety bill, called S.B. 1047, which mandates that the largest A.I. companies implement safeguards to prevent catastrophes, features whistle-blower protections, a rare point of agreement between the bill’s supporters and its critics

if those legislators are serious in their support for these protections, they should introduce a federal A.I. whistle-blower protection bill. They are well positioned to do so: The letter’s organizer, Representative Zoe Lofgren, is the ranking Democrat on the House Committee on Science, Space and Technology.

Last month, a group of leading A.I. experts warned that as the technology rapidly progresses, “we face growing risks that A.I. could be misused to attack critical infrastructure, develop dangerous weapons or cause other forms of catastrophic harm.” These risks aren’t necessarily criminal, but they are real — and they could prove deadly. If that happens, employees at OpenAI and other companies will be the first to know. But will they tell us?