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Fresh estimates from the Congressional Budget Office this month said the U.S. labor force in 2023 had grown by 5.2 million people, thanks especially to net immigration

economy grow. But today’s snapshot still represents a stark turnaround from just a short time ago.

he flow of migrants to the United States started slowing during the Trump administration, when officials took hundreds of executive actions designed to restrict migration.

Right before the pandemic, there were about 1.5 million fewer working-age immigrants in the United States than pre-2017 trends would have predicted, according to the San Francisco Fed. By the end of 2021, that shortfall had widened to about 2 million

But the economy overall wound up rebounding aggressively from the sudden, widespread closures of 2020, bolstered by historic government stimulus and vaccines that debuted faster than expected.

The sudden snapback in demand sent inflation soaring. Supply chain issues were a main reason prices rose quickly. But labor shortages posed a problem, too, and economists feared that rising wages — as employers scrambled to find workers — would keep price increases dangerously high.

That’s because the labor force that emerged as the pandemic ebbed was smaller than it had been: Millions of people retired early, stayed home to take over child care or avoid getting sick, or decided to look for new jobs entirely

In the span of a year or so, employers went from having businesses crater to sprinting to hire enough staff to keep restaurants, hotels, retail stores and construction sites going. Wages for the lowest earners rose at the fastest pace.

About the same time, the path was widening for migrants to cross the southern border, particularly as the new Biden administration rolled back Trump-era restrictions.

In normal economic times, some analysts note, new immigrants can drag down wages, especially if employers decide to hire them over native-born workers. Undocumented workers, who don’t have as much leverage to push for higher pay, could lower average wages even more.

But the past few years were extremely abnormal because companies were desperate to hire.

lus, it would be exceedingly difficult for immigration to affect the wages of enormous swaths of the labor force,

“What it can do is lower the wages of a specific occupation in a specific area, but American workers aren’t stupid. They change jobs. They change what they specialize in,” Nowrasteh said. “So that’s part of the reason why wages don’t go down.”

Experts argue that the strength of the U.S. economy has benefited American workers and foreign-born workers alike. Each group accounts for roughly half of the labor market’s impressive year-over-year growth since January 2023

Particularly for immigrants fleeing poorer countries, the booming U.S. job market and the promise of higher wages continue to be an enormous draw.

“More than any immigration policy per se, the biggest pull for migrants is the strength of the labor market,” said Catalina Amuedo-Dorantes, an economics professor at the University of California at Merced. “More than any enforcement policy, any immigration policy, at the end of the day.”

Upon arriving in Denver in October, Santander hadn’t acquired a work permit but needed to feed his small children. Even without authorization, he found a job as a roofer for a contractor that ultimately pocketed his earnings, then one cleaning industrial refrigerators on the overnight shift for $12 an hour. Since receiving his work permit in January, Santander has started “a much better job” at a wood accessories manufacturer making $20 an hour.

But for the vast majority of migrants who arrive in the United States without prior approval, including asylum seekers and those who come for economic reasons, getting a work permit isn’t easy.

Federal law requires migrants to wait nearly six months to receive a work permit after filing for asylum. Wait times can stretch for additional months because of a backlog in cases.

While they wait, many migrants find off-the-books work as day laborers or street vendors, advocates say. Others get jobs using falsified documents, including many teenagers who came into the country as unaccompanied minors.

Still, many migrants miss the year-long window to apply for asylum — a process that can cost thousands of dollars — leaving them with few pathways to work authorization, advocates say. Those who can’t apply for asylum often end up working without official permission in low-wage industries where they are susceptible to exploitation.

Linker’s description of Bushnell’s options and actions is measured and not without some respect:

Damon hops off the bus at the same point I do: Bushnell displayed a tremendous amount of courage, yes. But this was mated to an absolute moral certainty.

Every society needs both, because that is how we conserve our achievements while still working toward a more perfect order.

[Bushnell’s] choice of that word to describe Israel means he followed the “anti-colonial left” in viewing the interminable conflict in and around the Jewish state through the lens of Western imperialism across the “global south.” Viewed in this way, Israelis are rapacious oppressors, exploiters, unjustly stealing from the Palestinians, occupying their land, not just in the territories of the West Bank that are occupied under international law but likely in its entirety. That’s certainly how Hamas views the situation, with an added overlay of Islamist theofascism.

What would it be like, I wonder, to live in a world so morally simple, so neat and tidy, so devoid of tragic clashes, so orderly, with its heroes and villains, its Children of Light and its Children of Darkness? I really wouldn’t know. Because the world I inhabit is one permeated by ambiguity and people with mixed motives who are often (usually?) torn between competing moral considerations and imperatives, not a world divided between the absolutely good and the absolutely evil. The line between good and evil doesn’t run between East and West, or North and South, or white and black, or Israel and Palestine. It runs right through every human heart. Or at least most hearts.

This is where liberalism and conservatism meet, in the most elemental sense. The conservative impulse is to be suspicious of change because you are aware that things can always get worse, that systems are often too complex to be understood, that tail risk rules the world. The liberal impulse is to believe that agency is precious, that the world can be improved, that progress is both possible and desirable.

Linker notes that Bushnell referred to Israelis as “colonizers”:

Every governing system needs both, because that is how we channel passions out of the street and into political institutions.

And every person needs both, because that is how we avoid the epistemic certainty that can drive us to extremes of exuberance or despair.

The war in Gaza is a textbook example of the dangers of epistemic certainty, because it is too complicated, freighted with too much history, and too full of horrors to fit neatly on one side of the ledger or the other.

The 10/7 attack was an act of unconstrained barbarism that made it impossible for Israel to coexist with Hamas. Or at least: I am not aware of any proposed remedy that would have made coexistence possible without Israel becoming a fully militarized, illiberal state.

The Israeli response has at times violated the rules of war—sometimes of its own volition and sometimes because Hamas’s strategy has been to position assets in such a manner as to result in the deaths of as many Palestinian civilians as possible.

The suffering of the Palestinian people is real and of a magnitude that is almost impossible to comprehend.

And yet, the war continues because Hamas has no interest in a ceasefire. “We are not interested in engaging with what’s been floated, because it does not fulfill our demands,” one Hamas official told the media yesterday.

The world is messy. Life is messy. Often in ways which break the human heart. The project of liberal society, which requires equal measures of liberalism and conservatism, is to manage this messiness as well as possible.

there’s a deeper reason for my harsh judgment, which is that I’m fully committed to the liberal project of domesticating and taming the most intense political passions, ultimately channeling them into representative political institutions, where they are forced to reach accommodation and compromise with contrary views held by other members of the polity.

The love of justice can be noble, but it can also be incredibly destructive.

(This is hard to see if you conveniently associate such love exclusively with positions staked out by your ideological or partisan allies. In reality, the political ambitions of one’s opponents are often fueled by their own contrary convictions about justice and its demands.

My liberal commitments therefore make me maximally suspicious of most examples of “street politics,” especially forms of it in which the activists risk very little and primarily appear to be engaging in a spiritually fulfilling form of socializing with likeminded peers.

But Bushnell’s act of self-immolation belongs in a different category altogether—one distinct from just about every other form of protest,

Bushnell could have written an op-ed. He could have joined, organized, or led a march and delivered a speech. He could have built up a loud social-media presence and used it to accuse the United States of complicity in genocide and publicize the accusation. He could have leveraged his position in the Air Force to draw added attention to his dissent from Biden administration policy in the Middle East. He could even have embraced terrorism and sought to gain entry to the Israeli embassy with a weapon or explosive

But Bushnell didn’t do any of these things. Instead, a few hours before his act of protest, he posted the following message on Facebook:

Many of us like to ask ourselves, “What would I do if I was alive during slavery? Or the Jim Crow South? Or apartheid? What would I do if my country was committing genocide?”The answer is, you’re doing it. Right now.

I will no longer be complicit in genocide…. I am about to engage in an extreme act of protest. But compared to what people have been experiencing in Palestine at the hands of their colonizers, it’s not extreme at all. This is what our ruling class has decided will be normal.

And then, like a small number of other intensely committed individuals down through the decades, he doused himself in a flammable liquid and set himself ablaze, opting to sacrifice his own life in a public act of excruciating self-torture, without doing anything at all to harm anyone but himself, in order to draw attention to what he considered an ongoing, intolerable injustice.

At some point they will be able to, for example, suggest recipes for novel cyberattacks or biological attacks—all based on publicly available knowledge.

But as models become more sophisticated, this approach may prove insufficient. Some models are beginning to exhibit polymathic behavior: They appear to know more than just what is in their training data and can link concepts across fields, languages, and geographies.

We need to adopt new approaches to AI safety that track the complexity and innovation speed of the core models themselves.

What’s much harder to test for is what’s known as “capability overhang”—meaning not just the model’s current knowledge, but the derived knowledge it could potentially generate on its own.

Red teams have so far shown some promise in predicting models’ capabilities, but upcoming technologies could break our current approach to safety in AI. For one, “recursive self-improvement” is a feature that allows AI systems to collect data and get feedback on their own and incorporate it to update their own parameters, thus enabling the models to train themselves

This could result in, say, an AI that can build complex system applications (e.g., a simple search engine or a new game) from scratch. But, the full scope of the potential new capabilities that could be enabled by recursive self-improvement is not known.

Another example would be “multi-agent systems,” where multiple independent AI systems are able to coordinate with each other to build something new.

This so-called “combinatorial innovation,” where systems are merged to build something new, will be a threat simply because the number of combinations will quickly exceed the capacity of human oversight.

Short of pulling the plug on the computers doing this work, it will likely be very difficult to monitor such technologies once these breakthroughs occur

Current regulatory approaches are based on individual model size and training effort, and are based on passing increasingly rigorous tests, but these techniques will break down as the systems become orders of magnitude more powerful and potentially elusive

AI regulatory approaches will need to evolve to identify and govern the new emergent capabilities and the scaling of those capabilities.

But the AI Act has already fallen behind the frontier of innovation, as open-source AI models—which are largely exempt from the legislation—expand in scope and number

Europe has so far attempted the most ambitious regulatory regime with its AI Act,

both Biden’s order and Europe’s AI Act lack intrinsic mechanisms to rapidly adapt to an AI landscape that will continue to change quickly and often.

a gathering in Palo Alto organized by the Rand Corp. and the Carnegie Endowment for International Peace, where key technical leaders in AI converged on an idea: The best way to solve these problems is to create a new set of testing companies that will be incentivized to out-innovate each other—in short, a robust economy of testing

To check the most powerful AI systems, their testers will also themselves have to be powerful AI systems, precisely trained and refined to excel at the single task of identifying safety concerns and problem areas in the world’s most advanced models.

To be trustworthy and yet agile, these testing companies should be checked and certified by government regulators but developed and funded in the private market, with possible support by philanthropy organizations

The field is moving too quickly and the stakes are too high for exclusive reliance on typical government processes and timeframes.

One way this can unfold is for government regulators to require AI models exceeding a certain level of capability to be evaluated by government-certified private testing companies (from startups to university labs to nonprofit research organizations), with model builders paying for this testing and certification so as to meet safety requirements.

As AI models proliferate, growing demand for testing would create a big enough market. Testing companies could specialize in certifying submitted models across different safety regimes, such as the ability to self-proliferate, create new bio or cyber weapons, or manipulate or deceive their human creators

Much ink has been spilled over presumed threats of AI. Advanced AI systems could end up misaligned with human values and interests, able to cause chaos and catastrophe either deliberately or (often) despite efforts to make them safe. And as they advance, the threats we face today will only expand as new systems learn to self-improve, collaborate and potentially resist human oversight.

If we can bring about an ecosystem of nimble, sophisticated, independent testing companies who continuously develop and improve their skill evaluating AI testing, we can help bring about a future in which society benefits from the incredible power of AI tools while maintaining meaningful safeguards against destructive outcomes.

the red-blue divide is perhaps less illuminating than the gap between engaged and disengaged Americans, in which an exhausted majority encounters the highly polarized activist wings of both parties and shrinks back from the fray

The wings aren’t changing each other’s minds — hard-core Democrats aren’t going to persuade hard-core Republicans — but they’re also not reaching sufficient numbers of persuadable voters to break America’s partisan deadlock.

In 2020, when I was doing research for my book about the growing danger of partisan division, I began to learn more about what extreme partisanship does not only to our hearts but also to our minds.

It can deeply and profoundly distort the way we view the world. We become so emotionally and spiritually invested in the outcome of a political contest that we can inadvertently become disconnected from reality.

Our heart connects with our mind in such a way that the heart demands that the mind conform to its deepest desires

When a partisan encounters negative information, it can often trigger the emotional equivalent of a fight-or-flight response. This applies not just to negative arguments but also to negative facts. To deal with the emotional response, we seek different arguments and alternative facts.

If you are a true partisan, you essentially become an unpaid lawyer for your side. Every “good” fact that bolsters your argument is magnified. Every “bad” fact is minimized or rationalized.

When partisanship reaches its worst point, every positive claim about your side is automatically believed, and every negative allegation is automatically disbelieved.

allegations of wrongdoing directed at your side are treated as acts of aggression — proof that “they” are trying to destroy “us.”

You see this reality most plainly in the daily Republican theatrics surrounding Trump’s criminal indictments. Rather than wrestle seriously with the profoundly troubling claims against him, they treat the criminal cases as proof of Democratic perfidy. They believe every claim against Hunter and Joe Biden and not a single claim against Trump.

ask why people are checking out, and one reason is that partisans make it so very difficult to engage.

The problem is most pronounced (and often overtly threatening) on the MAGA right, but it’s endemic to our partisan wings

as partisanship deepens, partisan subcultures can get increasingly weird. They become so convinced of the us-versus-them dynamic that they’ll eventually believe virtually anything, as long as it’s a claim against the other side.

If decades of partisanship have persuaded you that your opponents are evil, have no morals and want to destroy the country, then why wouldn’t they hack voting machines or recruit a pop star as a government asset?

I have some rules to help temper my worst partisan impulses.

Expose yourself to the best of the other side’s point of view — including the best essays, podcasts and books.

when you encounter a new idea, learn about it from its proponents before you read its opponents.

when you encounter bad news about a cause that you hold dear — whether it’s a presidential campaign, an international conflict or even a claim against a person you admire, take a close and careful look at the evidence

The picture is much the same in many other formerly communist countrie

Slovakia’s politics are particularly poisonous, swamped by wild conspiracy theories and bile.

The foundations of this were laid in the 1990s when Mr. Meciar formed what is still one of the country’s two main political blocs: an alliance of right-wing nationalists, business cronies and anti-establishment leftists. All thrived on denouncing their centrist and liberal opponents as enemies willing to sell out the country’s interests to the West

“Meciar was a pioneer,” he said. “He was a typical representative of national populism with an authoritarian approach, and so is Fico.”

On the day Mr. Fico was shot, Parliament was meeting to endorse an overhaul of public television to purge what his governing party views as unfair bias in favor of political opponents, a reprise of efforts in the 1990s by Mr. Meciar to mute media critics.

The legislation was part of a raft of measures that the European Commission in February said risked doing “irreparable damage” to the rule of law. These include measures to limit corruption investigations and impose what critics denounced as Russian-style restrictions on nongovernmental organizations. The government opposes military aid to Ukraine and L.G.B.T.Q. rights, is often at odds with the European Union and, like Mr. Orban, favors friendly relations with Vladimir V. Putin’s Russia.

In the run-up to the election last September that returned Mr. Fico, a fixture of Slovak politics for more than two decades, to power, he and his allies took an increasingly hostile stance toward the United States and Ukraine, combined with sympathetic words for Russia.

Their statements often recalled a remark by Mr. Meciar, who, resisting demands in the 1990s that he must change his ways if Slovakia wanted to join the European Union, held up Russia as an alternative haven: “if they don’t want us in the West, we’ll go East.”

But, he added, “the frames that the society and its elites use to interpret the conflict remain the same: a choice between a Western path and being something of a bridge between the East and the West, as well as a choice between liberal democracy and illiberal, authoritarian government.”

Andrej Danko, the leader of the party, which is now part of the new coalition government formed by Mr. Fico after the September election, said that the attempt to assassinate Mr. Fico represented the “start of a political war” between the country’s two opposing camps.

Iveta Radicova, a sociologist opposed to Mr. Fico who is a former prime minister, said Slovakia’s woes were part of a wider crisis with roots that extend far beyond its early stumbles under Mr. Meciar.

“Many democracies are headed toward the black hole,” as countries from Hungary in the East to the Netherlands in the West succumb to the appeal of national populism, she said. “This shift is happening everywhere.”

The big question, then, is how do you bring about widespread, deep-seated cultural change within the organs of government and institutions connected to it?

Can you legislate to change a culture?

Sir Brian Langstaff, the report author, thinks you might be able to – or at least make a start.

He suggests there should be a so-called duty of candour demanded in law for civil servants and others.It would then become a legal obligation to speak up, rather than a cultural expectation to shut up.Whistleblowing would be mandatory.But will it happen, and will it make any difference?

Everywhere, new investment in green energy generation is being propelled by general concern for the climate, shifting corporate and household demand, the plunging prices for solar and batteries triggered by Chinese policy, and a combination of national and regional interventions

How different would we expect this data to look without the IRA?

The most useful overview of these modeling efforts that I have been able to find is by Bistline et al “Power sector impacts of the Inflation Reduction Act of 2022” in Environmental Research Letters November 2023. If anyone has a better source, please let me know.

The top panel shows the historical trajectory of US generating capacity from 1980 to 2021. The second half of the graphic shows how 11 different models predict that the US electricity system might be expected to develop up to 2035, with and without IRA.

all the models expect the trends of the 2010s to continue through to the 2030s which means that solar, wind and battery storage dominate America’s energy future. Even without the IRA, the low carbon share of electricity generation will likely rise to 50-55% by 2035. Bidenomics bumps that to 70-80 percent.

The question is: “How does the renewable surge of 2022-2024, compare to the model-based expectations, with and without the IRA?”

The answer is either, “so so”, or, more charitably, it is “too early to tell”. In broad terms the current rate of expansion is slightly above the rate the models predict without the provision of additional Bidenomics incentives. But what is also clear is that the current rate of expansion, is far short of the long-run pace that should be expected from the IRA

At this point, defenders of the IRA interject that the IRA has only just come into effect. Cash from the IRA is only beginning to flow. And in an environment of higher costs for renewable energy equipment and higher interest rates, cash matters.

So, to judge the impact of the IRA to date, the real question is not what has been built in 2022 and 2023, but what is in the pipeline.

As Yakov Feygin put it: “Maybe the pithiest way to put it is that there are pre-IRA trends and outside IRA trends, but IRA has served to rapidly compress the timeframes for installation in a lot of technologies. So five years has turned into two, for example.”

Advised by JP Morgan, sophisticated global players like Ørsted are optimizing their use of both the production and investment tax credits offered by the IRA to launch large new renewable schemes. Of course, correlation is not the same as causation

Where the IRA is perhaps doing its most important work may be in incentivizing the middle bracket of projects where green momentum is less certain.

According to Utility Drive: “The 10 largest U.S. developers plan to build 110,364 MW of new wind and solar projects over the next five years, according to S&P Global Market Intelligence, but the majority of these projects remain in early stages of development. Just 15% of planned wind and solar projects are under construction, and 13% are considered to be in advanced stages of development, … ”

So there is a lot to get excited about, at, what we are learning to call, the “meso”-level of the economy (more on this in a future post).

Along with Texas, the pipelines for the PJM, MISO and Southeast regions (which includes Florida) look particularly healthy.

The relatively modest California numbers should not be a surprise. As Yakov Feygin and others pointed out, what is needed in California is not more raw generating capacity, but more battery storage. And that is what we are seeing in the data.

The numbers would be even larger if it were not for the truly surreal logjam in California’s system for authorizing interconnections. According to Hamilton/Brookings data the volume of hybrid solar and batter capacity in the queue for approval is 6.5 times the capacity currently operating in the state. In other words there is an entire energy transition waiting to happen when the overloaded managerial processes of the system catch up

Texas’s less bureaucratic system seems to be one of its key advantages in the extremely rapid roll-out of solar.

though it may be true that globally speaking the United States as a whole is a laggard in renewable energy development,

If California (with an economy roughly comparable to that of Germany at current exchange rates) and Texas (with an economy roughly the size of Italy’s) were countries, they would be #3 and #5 in the world in solar capacity per capita.

the obvious question is, which are the laggards in the US energy system.

The states that I have highlighted in red stand out either for their unusually low existing level of renewable power capacity or their lack of current momentum.

What the state-level data reveal is that there are a significant number of large states in the USA where solar and wind energy have barely made any impact. Pennsylvania, for instance

The relative levels of sunshine between US states is irrelevant. As the global solar atlas shows, the entire United States has far better solar potential than North West Europe. If you can grow corn and tobbaco, you can do utility-scale solar. The fact that Arizona is not a solar giant is mind boggling.

Texas is both big and truly remarkable. California already is a world leader in renewable energy. Meanwhile, the majority of the US electricity system presents a very different picture. There is a huge distance to be traveled and the pace of solar build-out is unremarkable.

This is where national level incentives like the IRA must prove themselves

And these local battles in America matter. Given the extremely high per capita energy consumption in the USA, greening state-level energy systems is significant at the global level. It does not compare to the super-sized levels of emissions in China, but it matters.

Indonesia’s total installed electricity generating capacity is rated at 81 GW. As far as immediate impact on the global carbon balance is concerned, cleaning up the power systems of Pennsylvania and Illinois would make an even bigger impact.

A key test of Biden-era climate and industrial policy will be whether it can untie the local political economy of fossil fuels, which, across many regions of the United States still stands in the way of a green energy transition that now has all the force of economics and technological advantage on its side.

ask, as both Kleinfeld and Reeves do, how we can reduce the demand for illiberalism and violence by helping working-class men find a place in an increasingly feminized society.

We often wonder whether the cause of our illiberal tilt is economic or cultural--a loss of financial security and hope for the future, or a wrenching change in identity, demography and values. The problem of manhood lies at the intersection of these two domains, for working-class men have lost both economic standing and social status.

Identity is not simply a dependent variable of economic standing. Men went to matter–as men. If that need is not satisfied by work, it has to be satisfied elsewhere. There must be alternatives to the manosphere. 

Everyone, of course, needs virtuous purpose in order to lead a full life, but American working-class men have lost so many traditional sources of selfless action that they have become especially vulnerable to the call of the selfish jerk. Where, then, do you find virtuous purpose? In volunteer work, for example, or in programs of national service. Organizations like Big Brothers can do every bit as much for the big brother as for the little one. 

Volunteerism no doubt sounds like a naive prescription in a world hellbent on self-aggrandizement. But the idea of “service,” and its emotional satisfaction, pervaded American life so long as the mainline Protestant churches flourished, which is to say until a generation or two ago.

People need to feel needed; and helping those who need you is a source of great joy. Is it really impossible to restore the idea that a man is not only a strong, stoical creature who can throw a football through a tire but one who seeks opportunities to serve others?

LF: You made an interesting point about political scientists. They do have a problem in that once you start expanding from your narrow area to take in other areas there are just too many variables. There are too many things to track

Do you think this gives historians an advantage over political scientists because while they may not be scientifically robust they can explain things better?

And, to my mind, doing great violence both to this history, which is far more complex, and to the current set of circumstances which may or may not be relevant to whatever that past tells us

But. and I'm being just a tiny bit flip here, 90 percent of IR theory comes down to three historical questions: What caused the First World War? Was Hitler unique? And how did nuclear weapons affect international politics? Those are all historical questions.

I had the great fortune of being trained by Mark Trachtenberg. You can use some of the advantages that IR theory and political science provide, which is a certain level of precision.

But, taking a historical perspective, you see not just these horizontal connections but also complexity, contingency, chance, circumstances. You become very suspicious of importing historical lessons from the past in total to the present, which you see these days with what people believe to be lessons from the Cold War, the 1930s or Wilhelmine Germany.

I kind of grew up with IR theory. It's an enormously powerful lens to help make sense of the world. It exposes underlying assumptions about research, design, causality and agency.

That problem looked similar to others that we will see coming down the road, be it new emerging technology, the climate crisis, anything involving the ‘Global Commons.’ I was struck that this was a wake-up call

Yet global public health was the low hanging fruit of international political cooperation. We knew this was coming. We knew what to do and we failed miserably.

Russia's behaviour demonstrates that there are other factors involved that drive states to conflict that have not gone away. It's just that a very particular form of war, of unlimited imperial expansion, makes no sense now for states to pursue

Yet, once it eased, our governments and our friends who study these questions went back to normal.

I was disturbed by the fact that the ease with which people began to look at the world through an old lens. With Russia's horrendous invasion of Ukraine there was almost a sense of, well, we know what this is. It looks like World War Two. We have the models to deal with this. This gives us a focus because we have no idea how to deal with these other sets of global problems. The return of great power politics seemed to excuse serious study of these other challenges, which to me were sort of catastrophic.

as a historian I was struck that we use established models to understand international politics without accounting for the profound changes we've gone through, including the doubling of life expectancy. 

That got me into studying and thinking about these issues and inspired me to dive into looking into how a world of scarcity had changed to one of plenty, and how that might change perspectives on how international relations works.

The difference between the world we live in today and the past is that scarcity was an actual physical limit. In the 19th century there was nothing you could do necessarily to produce more food, more fuel, more clean water, more housing. Whereas today we have it completely within our means to solve these scarcity issues.

When those scarcity issues exist it's often the consequence either of some political issue or of us not doing more to alleviate these issues of scarcity. So scarcity today is the result of political circumstances, not a hard physical limit as it was in the past.

In the past, human beings could not get access to the basic resources they need in a consistent way that was predictable. That problem theoretically is now gone. It is not applied universally

If you look at life expectancy curves, the increases pretty much everywhere are extraordinary. In China, which was unimaginably poor, life expectancy has actually surpassed the United States.

The COVID-19 global crisis killed upwards of 20 million people, which is the equivalent of a World War, and was a failure of international cooperation and national domestic responses. Liberal democratic states did poorly; authoritarian states did poorly.

These circumstances were changing underneath in ways that were not recognised. Taming scarcity involved unbelievable increases in agricultural and economic productivity. At the same time there was an unexpected demographic compression where people just stopped having as many kids as expected. This was combined with a variety of other forces including improved governance and massive increases in information about the world. This meant that the historical forces that drove imperial plunder make literally no sense today

European and global politics from the late 19th century to, say, the middle of the 20th century reflected very particular historical circumstances. These drove Imperial conquest. During that period, there was a need for territory to feed populations that were seen as growing geometrically. Those wars of imperial conquest generated many of the disasters both on the European continent and globally

Its hard to imagine now that a geopolitical empire could pull that off. China is actually facing a declining population. People live in cities. They don't need more land.

FG: Even though the problems of plenty were created by developed Western states they hit hard most on states trying to make the transition. So climate change, public health, and inequality affects these states more

The states that have this wealth need people who are drawn in through migration or the efforts to migrate. This is the most divisive political issue globally right now in developed states. The rise of populism in the US and Europe is bound up with the politics of migration, which is a problem of plenty because that generates the magnet that attracts people

In the end, are individual states going to have to work out how to handle these issues in their own ways, or do we need new forms of multilateralism?

FG: I would say it's both. It's a manifesto and I’ve tried to think of some specific policy consequences.

I did a piece for Foreign Policy in which the model I used was of an alien who comes down to Earth every 50 years to assess the situation

Secondly, the problems of plenty, the climate and pandemics, represent the only truly existential threat

The alien would say, why is everyone so sad? I don't have a full explanation but we have deeply bitter, angry politics and some of this has been caused by plenty.

what I say in the essay is that China does terrible things - repression, the Uyghurs, the crackdown on Hong Kong, coercive threats in the South China Sea and Taiwan, its economic policies. It is not a good actor. But what I say is:

in 2024 I'm looking at the numbers, and you live longer. You have this great technology. All the information in the world can be accessed by anyone in this tiny little device for free. On the one hand, under the lingering shadow of our Marxist training, we've done really well. We have great wealth, but we could distribute it better. We've got great technology, but people are miserable. People feel this deep sense of enmity and of anger. That needs to be studied and understood.

if Taiwan were suddenly to be taken over by China, it would not be an existential threat to the United States. It's a very challenging problem, but they need to ask, is this an irredentist problem, that is similar to what happens whenever you have divided two states, whether its the Korean Peninsula, the Middle East, or Kashmi

First, there's one specific threat that can cause World War Three, which is this very difficult challenge of Taiwan. This leads to the question whether China wants Taiwan as an irredentist objective, or is it the beginning of some 1930s like bid for geopolitical hegemony?

We know another pandemic will come and imagine one with more lethality. And don't we have an obligation - both China and the United States - to find some way to work together on these issues even while the other competition persists.

During the Cold War the Soviet Union and the United States were engaged in a far deeper, more bitter ideological and geopolitical political battle that almost ended with a thermonuclear exchange. Yet they worked together to solve two of the greatest problems that plagued humanity. First, the Nuclear Non-proliferation Treaty, where they came together in 1968 with the UK to limit the spread of nuclear weapons, as a shared responsibility.

At the same time, they worked together at lower levels to eliminate smallpox, a disease that had killed twice as many people as all the wars combined in the 20s century

if these two powers, whose geopolitical and ideological competition was an order of magnitude worse than anything that exists between the United States and China today, could figure out a way to work together why not these two powers now?

If somehow the United States figures out a cure for cancer and at the same time China figures out a cure to the climate crisis would we really not want them to share this with each other and Europe and everyone else?

There's only one existential crisis, which is the climate crisis

And as terrible and tragic as the war in Ukraine is and as threatening and terrifying as Cross Strait relations are between the United States and China, so that they demand attention, neither is existential unless we let them become so.

On one end is doubling down on technology

On the other end is to focus on strengthening the real-world human communities and neighborhoods we live in. Seth advocates for the latter and provides us with a roadmap to get there.

A prototypical community consists of most or all of the following:

We note that the first generation to move its social life onto social media platforms immediately became the loneliest generation on record. There is a spectrum of approaches that we as a society can take to address the crushing loneliness of Gen Z and Gen Alpha

A set of shared values, norms, and goals—a common culture that unifies and constrains;

A common identity, ideally based on a common history and narrative and recognition of mutual interdependence

Shared rituals that celebrate the group, its past, and future;

High levels of trust;

High levels of commitment, with limited options for (or high costs to) exit;

Recognition of and respect for common authority figures who guide the group’s decision-making;

More affluent children had many of their activities organized for them by their parents, putting them in a variety of highly structured functional groups with different kids rather than repeatedly playing freely with their neighbors.

A diverse range of skills and personalities that can contribute complementary things of value (e.g., money, time, expertise) to the group;

Role models who exhibit the cultural behaviors that the group should ideally replicate or at least aspire to;

Exhibiting a high degree of inclusiveness by actively seeking to encompass every member who shares the same identity or location;

Capacity to strongly encourage through moral suasion certain norms of conduct and, if necessary, sanction misconduct.

As we can see from this list, a community requires a commitment to a certain social order—and usually to a place—that, by definition, must constrain some choices. In return for security, support, and belonging, members surrender some of their freedom.

This explains why creating community in America today is so difficult—few want to compromise their ability to make choices.

This is especially true among those with the resources and/or capacity to relocate as soon as a better opportunity beckons—the very people whose leadership and role-modeling communities can ill afford to lose.

Why Kids Need Real-World Community

Much of a child’s learning and formation is absorbed from the environment rather than directly taught by adults; behavior is better shaped by modeling than by lecturing.

The institutions (e.g., schools, churches, and parents’ groups) and norms (e.g., regular family dinners, neighborhood play dates, and the expectation that adults will monitor streets) around us shape our kids' lives in ways we sometimes fail to consider because they are subtle

Keystone actors and institutions that bridge and bond different members together;

As I documented in a previous essay at After Babel, unsupervised, child-directed play was in decline long before kids had smartphones. Why? Because place-based institutions and the communities they support were in decline

This oversupervision or “coddling”—the subject of the 2018 book co-authored by Greg Lukianoff and Jon—made the attractions of smartphones and social media even more appealing.

Many praise the myriad benefits that smartphones and social media are said to bring; online connection can give a person a sense of “community,” we are told.  We can find new friends, discover just about any idea imaginable, network, and even date through our phones. We can video chat with hundreds of people simultaneously from far-flung locations. We can pursue learning largely untethered from any physical space. Based on all of this, it would be easy to assume that place doesn’t matter.

I disagree. Physical place actually matters far more than we realize, especially as our lives become ever more placeless.

As Jon writes in The Anxious Generation, only real-world (place-based) social relationships and interactions have the four features that have characterized human interactions for millions of years. Such interactions are embodied, they are  synchronous, they involve one-to-one or one-to-several communications, and they have a high bar for entry and exit.

The challenge today is that smartphones and other digital devices bring so many interesting experiences to children and adolescents that they cause a serious problem: They reduce interest in all non-screen-based forms of experience.

today, the term “community” is often used in ways that are aspirational and limitless (e.g., many online advertisements for new social networks)—quite different from the original meaning of the term.

Why? Perhaps fewer individuals have any experience of what community really means. Young people are marketed to and formed by the twin pursuits of convenience and choice while simultaneously being told that a person’s chief purpose is to express themselves (usually through consumption)

First, you can select a place to live based on its social wealth.

Community differs significantly from friendships, social networks, or what is experienced online. Whereas communities offer mutual support in times of good and bad and are bolstered by robust institutions and norms encouraging frequent, positive interactions, care and concern for one another, and ample opportunities to work together towards common goals, the alternatives typically fall short on these elements. 

they fall far short of actually producing community, which requires overlapping institutions and activities, things that are very hard to achieve if you don’t share a physical place with one another. 

online communities are also voluntary, with many being platforms built for expression or personal advancement. Few provide the diversity of personalities, experiences, income levels, and outlooks that were common in most neighborhoods a few decades ago

This vision of the good life is part of the next generation’s socialization. It feels “natural” to them, and yet it does little to prepare them for the demands and delights of membership in a community.   

If you are a parent and want to join or build a community to enmesh your kids in, what can you do? Here are a few ideas to get started.

Few provide the incentives to earn recognition through the force of character rather than a performative act about oneself. Few provide multifaceted psychological and practical support when needed for members who feel vulnerable or fall into practical difficulties. 

we visited, stayed overnight, met lots of people, and asked lots of questions. In the end, we chose the D.C. suburb where I live now—a warm, welcoming, and institutionally rich place.

Second, consider how you can befriend neighbors and other parents in your immediate vicinity

Try the 8 Front Door Challenge, which helps you plan and host a Get-Together with neighbors closest to you

Participate in organizations or activities in your neighborhood. Spend time in places where people congregate locally

Organize a block party or play street. Create a neighborly block. 

Third, leverage local institutions to build neighborhood community. Schools are best placed for this because of their direct ties to local families and kids, but libraries, local businesses, houses of worship, and any other entity with strong ties to your locale can play an important role

Working with the local library to organize activities in or geared towards your specific neighborhood would create an opportunity for residents to meet one another.

In general, it’s always easier if you find allies among your neighbors, build partnerships with existing institutions, and leverage the assets (cultural, environmental, educational, economic, etc.) you already have locally. Think incrementally, building momentum step by step rather than thinking there is a magic bullet.

Their reasoning is straightforward: These companies have decided that the best way to make generative AI better is to build bigger AI models. And that is really, really expensive, requiring resources on the scale of moon missions and the interstate-highway system to fund the data centers and related infrastructure that generative AI depends on

“If we’re going to justify a trillion or more dollars of investment, [AI] needs to solve complex problems and enable us to do things we haven’t been able to do before.” Today’s flagship AI models, he said, largely cannot.

Now a number of voices in the finance world are beginning to ask whether all of this investment can pay off. OpenAI, for its part, may lose up to $5 billion this year, almost 10 times more than what the company lost in 2022,

Over the past few weeks, analysts and investors at some of the world’s most influential financial institutions—including Goldman Sachs, Sequoia Capital, Moody’s, and Barclays—have issued reports that raise doubts about whether the enormous investments in generative AI will be profitable.

Dario Amodei, the CEO of the rival start-up Anthropic, has predicted that a single AI model (such as, say, GPT-6) could cost $100 billion to train by 2027. The global data-center buildup over the next few years could require trillions of dollars from tech companies, utilities, and other industries, according to a July report from Moody’s Ratings.

generative AI has already done extraordinary things, of course—advancing drug development, solving challenging math problems, generating stunning video clips. But exactly what uses of the technology can actually make money remains unclear

At present, AI is generally good at doing existing tasks—writing blog posts, coding, translating—faster and cheaper than humans can. But efficiency gains can provide only so much value, boosting the current economy but not creating a new one.

Right now, Silicon Valley might just functionally be replacing some jobs, such as customer service and form-processing work, with historically expensive software, which is not a recipe for widespread economic transformation.

McKinsey has estimated that generative AI could eventually add almost $8 trillion to the global economy every year

“Here, we can manufacture intelligence.”

Tony Kim, the head of technology investment at BlackRock, the world’s largest money manager, told me he believes that AI will trigger one of the most significant technological upheavals ever. “Prior industrial revolutions were never about intelligence,”

this future is not guaranteed. Many of the productivity gains expected from AI could be both greatly overestimated and very premature, Daron Acemoglu, an economist at MIT, has found

AI products’ key flaws, such as a tendency to invent false information, could make them unusable, or deployable only under strict human oversight, in certain settings—courts, hospitals, government agencies, schools

AI as a truly epoch-shifting technology, it may well be more akin to blockchain, a very expensive tool destined to fall short of promises to fundamentally transform society and the economy.

Researchers at Barclays recently calculated that tech companies are collectively paying for enough AI-computing infrastructure to eventually power 12,000 different ChatGPTs. Silicon Valley could very well produce a whole host of hit generative-AI products like ChatGPT, “but probably not 12,000 of them,

even if it did, there would be nowhere enough demand to use all those apps and actually turn a profit.

Some of the largest tech companies’ current spending on AI data centers will require roughly $600 billion of annual revenue to break even, of which they are currently about $500 billion short.

Tech proponents have responded to the criticism that the industry is spending too much, too fast, with something like religious dogma. “I don’t care” how much we spend, Altman has said. “I genuinely don’t.

the industry is asking the world to engage in something like a trillion-dollar tautology: AI’s world-transformative potential justifies spending any amount of resources, because its evangelists will spend any amount to make AI transform the world.

in the AI era in particular, a lack of clear evidence for a healthy return on investment may not even matter. Unlike the companies that went bust in the dot-com bubble in the early 2000s, Big Tech can spend exorbitant sums of money and be largely fine

perhaps even more important in Silicon Valley than a messianic belief in AI is a terrible fear of missing out. “In the tech industry, what drives part of this is nobody wants to be left behind. Nobody wants to be seen as lagging,

Go all in on AI, the thinking goes, or someone else will. Their actions evince “a sense of desperation,” Cahn writes. “If you do not move now, you will never get another chance.” Enormous sums of money are likely to continue flowing into AI for the foreseeable future, driven by a mix of unshakable confidence and all-consuming fear.

the window is a description, not a tactic: Shifting it doesn’t mean proposing extreme ideas to make somewhat less extreme ideas seem reasonable.

“It just explains how ideas come in and out of fashion, the same way that gravity explains why something falls to the earth,”

Joseph P. Overton introduced the concept in the 1990s as an executive at the Mackinac Center for Public Policy,

“We have come a very, very long way in the American people now demanding legislation and concepts that just a few years ago were thought to be very radical,” Mr. Sanders said in a recent interview.

That the Overton window is shifting doesn’t necessarily mean policies like Medicare for all will be enacted, and it doesn’t say anything about whether they are good or bad. But it does say something meaningful about the political climate.

Part of the story is polarization: Democrats moving left and Republicans right, to an extent “that we haven’t seen previously in a modern political period,”

As support for more ambitious policies has increased among Democrats, there has also been “a wave of young party leaders who are less encumbered by a long voting history tying them to more moderate and less progressive policy stances,” Dr. Atkinson said. “And they’re being supported by a base that is ready to hear these messages.”

Out of the 7,000 rooms in the Village, 2,500 have been supplied mobile air conditioning units at the teams’ requests, a Paris 2024 spokesman said

Keeping cool at all times is that much more important given the erratic schedules that some of the athletes here are facing, said Carroll, the Australian Olympic committee executive. Since many athletes’ events are at night, they’ll need to sleep during the hottest part of the day. So the decision to pay for air conditioners was a no-brainer.

But not everyone is all-in on A/C. Germany’s Olympic sports federation will have one of the larger contingents in the village with around 350 athletes. That includes 6-foot-7½-inch decathlon medal favorite Leo Neugebauer, who recently won the NCAA title competing for the Texas Longhorns in Austin, where air conditioning isn’t merely a suggestion—it’s a way of life.

When Germany asked its individual sport federations if they wanted to order air conditioning units for the athletes’ village, demand for frigid air was lukewarm, according to Olympic committee spokesman Michael Schirp.

“A total of 11 AC have been ordered. Eleven,” he wrote, adding an emoji of a face wearing sunglasses.

Stock prices of its five biggest makers of panels and other equipment have halved in the past 12 months. Since late June, at least seven large Chinese manufacturers have warned that they will announce heavy losses for the first half of this year.

The turmoil in the solar energy sector amid enormous factory capacity and booming exports highlights how China’s industrial policymaking works. The government decided 15 years ago to put extensive support behind solar power, and then let the companies claw it out. Beijing has shown a high tolerance for letting firms stumble and even fail in large numbers.

Something similar is happening in the automotive sector. Annual car sales in China are around 25 million a year, more than any other country but barely half the country’s ability to make vehicles. So automakers in China are now following the solar industry’s lead in cutting prices sharply and ramping up exports.

China’s approach can lead to big financial losses for local governments, state investment funds and state-supported banks, all of which bankroll companies in favored industries.

Sunzone’s rivals, including Tongwei and Longi Green Energy Technology, gained formidable economies from large-scale production. They have plowed part of their extra revenue into developing solar panels that are increasingly efficient at converting sunlight into electricity.

The rise and fall of Hunan Sunzone Optoelectronics in Changsha, the capital of Hunan Province in south-central China, is a case study of how China’s policies work.

“It’s a very expensive development model, but it produces national champions quite reliably,” said David R. Hoffman, a senior adviser on China for the Conference Board, a global business group.

Despite the financial help, Sunzone’s factory now sits empty. A large “Sunzone” sign on the second floor rusts in the swampy heat of Changsha. The only person still working at the site on a recent afternoon, a security guard, said that manufacturing equipment was removed in January and the factory was set to be demolished and turned into office buildings.

Sunzone epitomizes how lavish lending from state-owned banks and generous local subsidies have produced manufacturing overcapacity. Solar companies cut costs and prices sharply to maintain market share. That led to a few low-cost survivors while many other competitors were driven out of business in China and around the world.

China’s banks, acting at Beijing’s direction, have lent so much money to the sector for factory construction that the country’s solar factory capacity is roughly double the entire world’s demand.

Started in 2008, the solar panel manufacturer benefited early on from practically every possible subsidy. It got 22 acres of prime downtown land in the heart of the city almost for free. One of China’s biggest state-owned banks arranged a loan at a low interest rate. The Hunan provincial government then agreed to pay most of the interest.

Many other factories, like Sunzone’s, quickly become obsolete.

“Enterprises continue to put advanced production capacity into operation to maintain competitiveness” said Zhang Jianhua, director of China’s National Energy Administration, at a news conference last month. “At the same time, the outdated production capacity is still extensive and needs to be gradually phased out.”

Compounding the problems facing China’s solar energy companies is the rapid disappearance of local subsidies. Local governments are running out of money as a housing crisis makes it hard for them to sell long-term leases on state land to real estate developers — previously their biggest source of cash.

Partly because of worries about Chinese subsidies, President Biden last month allowed steep tariffs that had expired to go back into force on solar products imported from Southeast Asia that use lots of Chinese components. And the Department of Commerce has begun trade cases against imported solar panels that could lead to further tariffs.

In fact, the news from Wall Street lately has mostly been about retreat from climate goals, rather than recommitment. Banks and asset managers are withdrawing from international climate alliances and chafing at their rules. Regional banks are stepping up lending to fossil fuel producers. Sustainable investment funds have sustained crippling outflows, and many have collapsed.

In some cases, it’s a classic prisoner’s dilemma: If firms collectively shift to cleaner energy, a cooler climate benefits everyone more in the future

in the short term, each firm has an individual incentive to cash in on fossil fuels, making the transition much harder to achieve.

when it comes to avoiding climate damage to their own operations, the financial industry is genuinely struggling to comprehend what a warming future will mean.

A global compact of financial institutions made commitments worth $130 trillion to try to bring down emissions, confident that governments would create a regulatory and financial infrastructure to make those investments profitable. And in 2022, the Inflation Reduction Act passed.

What about the risk that climate change poses to the financial industry’s own investments, through more powerful hurricanes, heat waves that knock out power grids, wildfires that wipe out towns?

“If we think about what is going to be the best way to tilt your portfolios in the direction to benefit, it’s really difficult to do,”

“These will probably be great investments over 20 years, but when we’re judged over one to three years, it’s a little more challenging for us.”

Some firms cater to institutional clients, like public employee pension funds, that want combating climate change to be part of their investment strategy and are willing to take a short-term hit. But they aren’t a majority

And over the past couple of years, many banks and asset managers have shrunk from anything with a climate label for fear of losing business from states that frown on such concerns.

On top of that, the war in Ukraine scrambled the financial case for backing a rapid energy transition. Artificial intelligence and the movement toward greater electrification are adding demand for power, and renewables haven’t kept up

All of that is about the relative appeal of investments that would slow climate change

If you bought some of the largest solar-energy exchange-traded funds in early 2023, you would have lost about 20 percent of your money, while the rest of the stock market soared.

There is evidence that banks and investors price in some physical risk, but also that much of it still lurks, unheeded.

“I’m very, very worried about this, because insurance markets are this opaque weak link,” Dr. Sastry said. “There are parallels to some of the complex linkages that happened in 2008, where there is a weak and unregulated market that spills over to the banking system.”

Regulators worry that failing to understand those ripple effects could not just put a single bank in trouble but even become a contagion that would undermine the financial system.

But while the European Central Bank has made climate risk a consideration in its policy and oversight, the Federal Reserve has resisted taking a more active role, despite indications that extreme weather is feeding inflation and that high interest rates are slowing the transition to clean energy.

“The argument has been, ‘Unless we can convincingly show it’s part of our mandate, Congress should deal with it, it’s none of our business,’”

a much nearer-term uncertainty looms: the outcome of the U.S. election, which could determine whether further action is taken to address climate concerns or existing efforts are rolled back. An aggressive climate strategy might not fare as well during a second Trump administration, so it may seem wise to wait and see how it shakes out.

big companies are hesitating on climate-sensitive investments as November approaches, but says that “two things are misguided and quite dangerous about that hypothesis.”

One: States like California are establishing stricter rules for carbon-related financial disclosures and may step it up further if Republicans win

And two: Europe is phasing in a “carbon border adjustment mechanism,” which will punish polluting companies that want to do business there.

at the moment, even European financial institutions feel pressure from the United States, which — while providing some of the most generous subsidies so far for renewable-energy investment — has not imposed a price on carbon.

The global insurance company Allianz has set out a plan to align its investments in a way that would prevent warming above 1.5 degrees Celsius by the end of the century, if everyone else did the same. But it’s difficult to steer a portfolio to climate-friendly assets while other funds take on polluting companies and reap short-term profits for impatient clients.

“This is the main challenge for an asset manager, to really bring the customer along,” said Markus Zimmer, an Allianz economist. Asset managers don’t have sufficient tools on their own to move money out of polluting investments and into clean ones, if they want to stay in business,

“Of course it helps if the financial industry is somehow ambitious, but you cannot really substitute the lack of actions by policymakers,”

According to new research, the benefit is greater when decarbonization occurs faster, because the risks of extreme damage mount as time goes on. But without a uniform set of rules, someone is bound to scoop up the immediate profits, disadvantaging those that don’t — and the longer-term outcome is adverse for all.

In Greece, an unlikely economic star since the pandemic, as many as 44% of all jobs are connected to tourism. 

Can Europe’s emerging “museum economy” support sustained wealth creation and the expansive welfare systems Europeans have become accustomed to since the end of World War II? And what happens if the dollar falls and the tourists leave?

Rent and other living expenses are rising in hot spots, making it harder for many locals to make ends meet. A heightened focus on tourism, which turns a quick profit but remains a low-productivity activity, tethers these economies to a highly cyclical industry

It also risks keeping workers and capital from more profitable areas, like tech and high-end manufacturing. 

some economists, residents and politicians are concerned about the boom’s long-term implications.

The strong dollar—and a powerful post-Covid recovery—has empowered millions of Americans who would have vacationed in the U.S. before the pandemic. They are now finding they can afford a lavish European holiday.

“It is literally, for Americans right now, the place to go,”

One reason is the brutal sovereign debt crisis that hit the continent’s south especially hard just over a decade ago. Unable to stimulate demand with public spending or to energize exports by devaluing their currency—the euro, which is shared by 20 states—those countries could only boost their competitiveness by lowering wages.

“Your dollar goes a lot further,” Cross said over coffee in the lobby of her five-star hotel. “You don’t feel you’re scrounging as much.”

Tourism now generates one-fifth of economic output in Lisbon and supports one in four jobs. That boom has reverberated far beyond the capital.

Portugal’s gross domestic product grew nearly 8% between 2019 and 2024, compared with less than 1% for Germany,

The government recorded a rare 1.2% of GDP budget surplus last year, and its debt-to-GDP ratio is expected to fall to 95% this year, the lowest since 2009

Portugal’s population is growing again after years of decline, thanks in part to an influx of migrant workers and to various tax incentives and investor visas that have attracted high-income workers. 

In Portugal, a country of 10 million that juts out into the North Atlantic from Spain, Americans recently surpassed Spaniards as the biggest group of foreign tourists. 

The trend is part of a global readjustment following the Covid-19 lockdowns. Spending on travel and hospitality worldwide grew roughly seven times faster than the global economy over the past two years, according to Oxford Economics. That pattern is expected to continue for the next decade, though to a lesser degree.

Europe, especially southern Europe, has benefited more than many other regions. Though it is home to just 5% of the world’s population, the European Union received around one-third of all international tourist dollars—more than half a trillion dollars—last year. This is up roughly threefold over two decades, and compares with about $150 billion for the U.S., where tourism has been slower to rebound.

Moedas, Lisbon’s mayor, says there’s room for further growth. For a city that doubles in size to around one million every day, including commuters, only around 35,000 are tourists, he said. “We are very far from a situation of so-called overtourism.”

This and a real estate collapse that left hundreds of thousands of workers suddenly available made the region’s tourist industry ultracompetitive, much cheaper than Caribbean beach destinations and on a par with Latin American destinations like Mexico. 

Once an owner of TAP, Neeleman increased the number of direct flights to the U.S. eightfold between 2015 and 2020, adding major hubs such as JFK and Boston Logan, betting that would open up an untapped market. As bookings soared, other U.S. airlines followed. 

Signs of discontent are bubbling up across the region. Tens of thousands of local residents marched in Spain’s Balearic and Canary islands in recent months to protest mass tourism and overcrowding. On Mallorca, activists have put up fake signs at some popular beaches warning in English of the risk of falling rocks or dangerous jellyfish to deter tourists, according to social-media posts.

For Gonçalo Hall, a 36-year-old tech worker, the influx of foreign cash that has transformed Lisbon has been overwhelmingly beneficial for the city. When he lived in the capital 15 years ago, he wouldn’t walk in the historic downtown after 8 p.m. It was “full of homeless people, not safe. Lots of empty and abandoned buildings,” he said. 

“The quality of life in Lisbon doesn’t match the prices. Even expats are leaving,” said Hall, who moved to the Atlantic island of Madeira during the pandemic and continues to work remotely.  

The average Portuguese employee earns around €1,000 a month after tax, or around $1,100 a month, and only 2% earn more than €2,000. A one-bedroom apartment in Lisbon can easily cost more than €500,000 to buy, or over €1,200 a month to rent. Rents in nearby cities are also climbing as people leave the capital, squeezed out as lucrative short-term rentals transform the housing market. 

Jessica Ribeiro, a 35-year-old sociologist, pays around €490 a month for an apartment that she shares with her ex-husband in a town close to Lisbon. Neither can afford to leave. Both make a little more than the minimum wage of €820 a month, and soaring rents mean it is impossible to find an apartment in the neighborhood for less than €700, Ribeiro said. 

“The harm that tourism has brought is infinitely bigger than the benefits,” Ribeiro said. “It sends people away from their place of work, making their lives much harder.” 

A frequent complaint from residents and housing advocates is that some of the boom’s biggest winners are American companies, from Airbnb to Uber, which often pay little tax in the places where they do most of their business.

Lisbon is cracking down on Airbnbs and increasing taxes on tourists, doubling the nightly city tax from €2 to €4, which should raise €80 million a year. Airbnb has paid Lisbon and Porto, Portugal’s two biggest cities, more than €63 million after entering into voluntary tax collection agreements with local officials. Moedas said he is considering “a bit more regulation” of the city’s many Ubers, whose drivers he said don’t always respect traffic rules. 

Around nine in 10 Airbnb hosts in Portugal rent their family home and almost half say the extra income helps them afford to stay in their homes, according to a spokesperson for the company. “Guests using our platform account for just 10% of total nights booked in Portugal, and we follow the rules and only allow listings that are registered with local authorities,”

Higher rents are forcing many businesses and cultural and social spaces catering to locals to close, according to Silva. “This is not an economy that is serving the needs of the majority of people,” she said.

“It was actually comical, because I went from knowing no one who had been to Portugal to everyone telling me they were going to Portugal,”

Serving foreigners is difficult to scale up and is more exposed to economic headwinds. Like the discovery of oil, southern Europe’s new focus on tourism can crowd out higher-value activities by hogging capital and workers, a phenomenon some economists have dubbed the “beach disease.”

“Portugal isn’t an industrialized country. It’s just the playground of the EU,” said Priscila Valadão, a 43-year-old administrative assistant in Lisbon. She makes €905 a month and rents a room from a friend for €250 a month. “The type of jobs being offered…are restricted to a type of activity that really doesn’t enrich the country,”

For Europe’s policymakers, having people open hotels or restaurants is easier than incentivizing them to build up advanced manufacturing, which is capital intensive and takes a long time to pay off, said Marcos Carias, an economist with French insurer Coface. 

“Tourism is the easy way out,” Carias said. “What is the incentive to look for ingenuity and go through the pain of creating new economic value if tourism works as a short-term solution?”

Proponents say tourism attracts capital to poor regions, and can serve as a base to build a more diversified economy. Lisbon’s Moedas said he is trying to leverage the influx of foreign visitors to build up sectors such as culture and technology, including by developing conferences and cultural events. 

“Some extreme left parties basically say we need to reduce tourism,” Moedas said, but that is the wrong approach. “What we have to do is to increase other sectors like innovation, technology…. We should still invest in tourism, but we should go up the ladder.”

In Athens, Mayor Haris Doukas says he is working on extending the tourist season, increasing the average length of stay and promoting specific types of tourism, such as organizing conferences and business meetings, to attract visitors with higher purchasing power. He’s also called for new taxes to help the city accommodate the millions of additional tourists thronging to the ancient capital.

More than one-third of highly qualified Portuguese students leave the country after graduating,

Even higher-paid technology workers have started decamping to cheaper places. 

Tiago Araújo, chief executive of tourism tech startup HiJiffy, has held on to his employees but says many of them have been moving out of Lisbon. The trend, which started during Covid, is now being primarily driven by the housing crisis.

While Dias, the hotel owner, is diversifying into nightlife, he refuses to envisage a future where the sector would have to rely heavily on visitors from elsewhere.

If Americans stop coming to Lisbon, he said, “I don’t think we can charge this kind of [price] because we will have to go to Europeans, and the Europeans, they don’t have money.”

That shame mangrove has been completely uprooted by Trump.

The reason people felt ashamed is that they felt fidelity to certain norms — so their cheeks would turn red when they knew they had fallen short

in the kind of normless world we have entered where societal, institutional and leadership norms are being eroded,” Seidman said to me, “no one has to feel shame anymore because no norm has been violated.”

People in high places doing shameful things is hardly new in American politics and business. What is new, Seidman argued, “is so many people doing it so conspicuously and with such impunity: ‘My words were perfect,’ ‘I’d do it again.’ That is what erodes norms — that and making everyone else feel like suckers for following them.”