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Javier E

Why Nobody Cares the President Is Lying - The New York Times - 0 views

  • Mr. Trump understands that attacking the media is the reddest of meat for his base, which has been conditioned to reject reporting from news sites outside of the conservative media ecosystem.
  • For years, as a conservative radio talk show host, I played a role in that conditioning by hammering the mainstream media for its bias and double standards. But the price turned out to be far higher than I imagined.
  • The cumulative effect of the attacks was to delegitimize those outlets and essentially destroy much of the right’s immunity to false information. We thought we were creating a savvier, more skeptical audience. Instead, we opened the door for President Trump, who found an audience that could be easily misled.
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  • During his first week in office, Mr. Trump reiterated the unfounded charge that millions of people had voted illegally. When challenged on the evident falsehood, Sean Spicer, the White House press secretary, seemed to argue that Mr. Trump’s belief that something was true qualified as evidence. The press secretary also declined to answer a straightforward question about the unemployment rate, suggesting that the number will henceforth be whatever the Trump administration wants it to be.
  • Unfortunately, that also means that the more the fact-based media tries to debunk the president’s falsehoods, the further it will entrench the battle lines.
  • The news media’s spectacular failure to get the election right has made it only easier for many conservatives to ignore anything that happens outside the right’s bubble and for the Trump White House to fabricate facts with little fear of alienating its base.
  • He can do this because members of the Trump administration feel confident that the alternative-reality media will provide air cover, even if they are caught fabricating facts or twisting words (like claiming that the “ban” on Muslim immigrants wasn’t really a “ban”). Indeed, they believe they have shifted the paradigm of media coverage, replacing the traditional media with their own.
  • In a stunning demonstration of the power and resiliency of our new post-factual political culture, Mr. Trump and his allies in the right media have already turned the term “fake news” against its critics, essentially draining it of any meaning
  • now any news deemed to be biased, annoying or negative can be labeled “fake news.”
  • Even as he continues to attack the “dishonest media,” Mr. Trump and his allies are empowering this alt-reality media, providing White House access to Breitbart and other post-factual outlets that are already morphing into fierce defenders of the administration.
  • The relationship appears to be symbiotic, as Mr. Trump often seems to pick up on talking points from Fox News and has tweeted out links from websites notorious for their casual relationship to the truth, including sites like Gateway Pundit, a hoax-peddling site that announced, shortly after the inauguration, that it would have a White House correspondent.
  • All administrations lie, but what we are seeing here is an attack on credibility itself.
  • The Russian dissident and chess grandmaster Garry Kasparov drew upon long familiarity with that process when he tweeted: “The point of modern propaganda isn’t only to misinform or push an agenda. It is to exhaust your critical thinking, to annihilate truth.”
  • the real threat is not merely that a large number of Americans have become accustomed to rejecting factual information, or even that they have become habituated to believing hoaxes. The real danger is that, inundated with “alternative facts,” many voters will simply shrug, asking, “What is truth?” — and not wait for an answer.
  • In that world, the leader becomes the only reliable source of truth; a familiar phenomenon in an authoritarian state, but a radical departure from the norms of a democratic society. The battle over truth is now central to our politics.
  • as George Orwell said: “The very concept of objective truth is fading out of the world. Lies will pass into history.”
  • Trump and company seem to be betting that much of the electorate will not care if the president tells demonstrable lies, and will pick and choose whatever “alternative facts” confirm their views.
  • If we want to restore respect for facts and break through the intellectual ghettos on both the right and left, the mainstream media will have to be aggressive without being hysterical and adversarial without being unduly oppositional.
  • it will be incumbent on conservative media outlets to push back as well. Conservatism should be a reality-based philosophy, and the movement will be better off if it recognizes that facts really do matter.
  • The conservative media ecosystem — like the rest of us — has to recognize how critical, but also how fragile, credibility is in the Orwellian age of Donald Trump.
redavistinnell

Why Nobody Cares the President Is Lying - The New York Times - 0 views

  • Why Nobody Cares the President Is Lying
  • On his first full day in office Mr. Trump insisted that his inaugural crowd was the largest ever, a baseless boast that will likely set a pattern for his relationship both to the media and to the truth.
  • For years, as a conservative radio talk show host, I played a role in that conditioning by hammering the mainstream media for its bias and double standards. But the price turned out to be far higher than I imagined. The cumulative effect of the attacks was to delegitimize those outlets and essentially destroy much of the right’s immunity to false information. We thought we were creating a savvier, more skeptical audience. Instead, we opened the door for President Trump, who found an audience that could be easily misled.
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  • Unfortunately, that also means that the more the fact-based media tries to debunk the president’s falsehoods, the further it will entrench the battle lines.
  • The press secretary also declined to answer a straightforward question about the unemployment rate, suggesting that the number will henceforth be whatever the Trump administration wants it to be.
  • In a stunning demonstration of the power and resiliency of our new post-factual political culture, Mr. Trump and his allies in the right media have already turned the term “fake news” against its critics, essentially draining it of any meaning. During the campaign, actual “fake news” — deliberate hoaxes — polluted political discourse and clogged social media timelines.
  • For years, the widely read Drudge Report has linked to the bizarre conspiracy theorist Alex Jones, who believes that both the attacks of Sept. 11 and the Sandy Hook shootings were government-inspired “false flag” operations.
  • But now any news deemed to be biased, annoying or negative can be labeled “fake news.” Erroneous reports that the bust of the Rev. Dr. Martin Luther King Jr. had been removed from the Oval Office or misleading reports that sanctions against Russia had been lifted will be seized on by Mr. Trump’s White House to reinforce his indictment.
  • Mr. Trump and his allies are empowering this alt-reality media, providing White House access to Breitbart and other post-factual outlets that are already morphing into fierce defenders of the administration.
  • By now, it ought to be evident that enemies are important to this administration, whether they are foreigners, refugees, international bankers or the press.
  • But discrediting independent sources of information also has two major advantages for Mr. Trump: It helps insulate him from criticism and it allows him to create his own narratives, metrics and “alternative facts.”
  • The Russian dissident and chess grandmaster Garry Kasparov drew upon long familiarity with that process when he tweeted: “The point of modern propaganda isn’t only to misinform or push an agenda. It is to exhaust your critical thinking, to annihilate truth.”
  • In that world, the leader becomes the only reliable source of truth; a familiar phenomenon in an authoritarian state, but a radical departure from the norms of a democratic society. The battle over truth is now central to our politics.
  • Scottie Nell Hughes, was asked to defend the clearly false statement by Mr. Trump that millions of votes had been cast illegally. She answered by explaining that everybody now had their own way of interpreting whether a fact was true or not.
  • Or as George Orwell said: “The very concept of objective truth is fading out of the world. Lies will pass into history.”
  • In the meantime, we must recognize the magnitude of the challenge. If we want to restore respect for facts and break through the intellectual ghettos on both the right and left, the mainstream media will have to be aggressive without being hysterical and adversarial without being unduly oppositional.
  • There may be short-term advantages to running headlines about millions of illegal immigrants voting or secret United Nations plots to steal your guns, but the longer the right enables such fabrications, the weaker it will be in the long run. As uncomfortable as it may be, it will fall to the conservative media to police its worst actors.
Javier E

Is Stanford Too Close to Silicon Valley? : The New Yorker - 0 views

  • Stanford has established itself as the intellectual nexus of the information economy
  • If the Ivy League was the breeding ground for the élites of the American Century, Stanford is the farm system for Silicon Valley
  • Stanford’s public-relations arm proclaims that five thousand companies “trace their origins to Stanford ideas or to Stanford faculty and students.”
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  • At Stanford more than elsewhere, the university and business forge a borderless community in which making money is considered virtuous and where participants profess a sometimes inflated belief that their work is changing the world for the better
  • Faculty members commonly invest in start-ups launched by their students or colleagues. There are probably more faculty millionaires at Stanford than at any other university in the world.
  • In his twelve years as president, Stanford’s endowment has grown to nearly seventeen billion dollars. In each of the past seven years, Stanford has raised more money than any other American university.
  • But Stanford’s entrepreneurial culture has also turned it into a place where many faculty and students have a gold-rush mentality and where the distinction between faculty and student may blur as, together, they seek both invention and fortune.
  • A quarter of all undergraduates and more than fifty per cent of graduate students are engineering majors. At Harvard, the figures are four and ten per cent; at Yale, they’re five and eight per cent.
  • many students uncritically incorporate the excesses of Silicon Valley, and that there are not nearly enough students devoted to the liberal arts and to the idea of pure learning. “The entire Bay Area is enamored with these notions of innovation, creativity, entrepreneurship, mega-success,” he says. “It’s in the air we breathe out here. It’s an atmosphere that can be toxic to the mission of the university as a place of refuge, contemplation, and investigation for its own sake.”
  • Stanford is not the only university to adopt this approach to learning—M.I.T., among others, does, too. But Kelley’s effort is widely believed to be the most audacious. His classes stress collaboration across disciplines and revolve around projects to advance social progress. The school concentrates on four areas: the developing world; sustainability; health and wellness; and K-12 education.
  • Feeling dejected or unhappy in a place like Stanford causes one to feel abnormal and out-of-place, so we may tend to internalize and brood over this lack of happiness instead of productively addressing the situatio
  • his principal academic legacy may be the growth of what’s called “interdisciplinary education.” This is the philosophy now promoted at the various schools at Stanford—engineering, business, medicine, science, design—which encourages students from diverse majors to come together to solve real or abstract problems. The goal is to have them become what are called “T-shaped” students, who have depth in a particular field of study but also breadth across multiple disciplines. Stanford hopes that the students can also develop the social skills to collaborate with people outside their areas of expertise. “Ten years ago, ‘interdisciplinary’ was a code word for something soft,” Jeff Koseff says. “John changed that.”
  • Among the bolder initiatives to create T-students is the Institute of Design at Stanford, or the d.school, which was founded seven years ago and is housed in the mechanical-engineering department.
  • Distance learning threatens one day to disrupt higher education by reducing the cost of college and by offering the convenience of a stay-at-home, do-it-on-your-own-time education. “Part of our challenge is that right now we have more questions than we have answers,” Hennessy says, of online education. “We know this is going to be important and, in the long term, transformative to education. We don’t really understand how yet.”
  • financial aid has produced a campus of diverse students who are unburdened by student debt—and who thus don’t have to spend the first five years of their career earning as much money as they can.
  • “The kinds of project we put in front of our students don’t have right and wrong answers,” Greenberg says. “They have good, better, and really, really better.”
  • he was impressed by “the bias toward action” at the d.school. Newspapers have bureaucracy, committees, hierarchies, and few engineers, he said. At the Post, “diversity” was defined by ethnicity and race. At the d.school, diversity is defined by majors—by people who think different.
  • Byers has kept in touch with Systrom and Krieger and remembers them as “quiet and quite humble,” by which he means that they were outstanding human beings who could get others to follow them. They were, in short, T-students.
  • The United States has “two types of college education that are in conflict with each other,” he said. One is “the classic liberal-arts model—four years of relative tranquility in which students are free to roam through disciplines, great thoughts, and great works with endless options and not much of a rationale.” The second is more utilitarian: “A college degree is expected to lead to a job, or at least to admission to a graduate or professional school.” The best colleges divide the first two years into introductory courses and the last two into the study of a major, all the while trying to expose students to “a broad range of disciplines and modes of thought.” Students, he declared, are not broadly educated, not sufficiently challenged to “search to know.” Instead, universities ask them to serve “the public, to work directly on solutions in a multidisciplinary way.” The danger, he went on, is “that academic researchers will not only embrace particular solutions but will fight for them in the political arena.” A university should keep to “its most fundamental purpose,” which is “the disinterested pursuit of truth.
  • Stanford, along with its peers, is now justifying its existence mostly in terms of what it can do for humanity and improve the world,” he answered. “I am concerned that a research-intense university will become too result-oriented,” a development that risks politicizing the university. And it also risks draining more resources from liberal arts
  • students spent too much time networking and strategizing and becoming “slaves to the dictates of a hoped-for future,” and too little time being spontaneous. “Stanford students are superb consequentialists—that is, we tend to measure the goodness of actions by their eventual results,
  • We excel at making rational calculations of expected returns to labor and investment, which is probably why so many of us will take the exhortation to occupy Wall Street quite literally after graduation. So before making any decision, we ask one, very simple question: What will I get out of it?”
  • “At most great universities, humanities feel like stepchildren,”
  • The long-term value of an education is to be found not merely in the accumulation of knowledge or skills but in the capacity to forge fresh connections between them, to integrate different elements from one’s education and experience and bring them to bear on new challenges and problems. . . . Yet we were struck by how little attention most departments and programs have given to cultivating this essential capacity. We were also surprised, and somewhat chagrined, to discover how infrequently some of our students exercise it. For all their extraordinary energy and range, many of the students we encountered lead curiously compartmentalized lives, with little integration between the different spheres of their experience.
  • Instead of erecting buildings, Andreessen says, Stanford should invest even more of its resources in distance learning: “We’re on the cusp of an opportunity to deliver a state-of-the-art, Stanford-calibre education to every single kid around the world. And the idea that we were going to build a physical campus to reach a tiny fraction of those kids was, to me, tragically undershooting our potential.”
  • In late January, a popular d.school class, Entrepreneurial Design for Extreme Affordability, taught by James M. Patell, a business-school professor, consisted of thirty-seven graduate and three undergraduate students from thirteen departments, including engineering, political science, business, medicine, biology, and education. It was early in the quarter, and Patell offered the students a choice of initial projects. One was to create a monitoring system to help the police locate lost children. Another was to design a bicycle-storage system.
  • The “key question,” he says, is: “How can we increase efficiency without decreasing quality?”
  • online education might also disrupt everything that distinguishes Stanford. Could a student on a video prompter have coffee with a venture capitalist? Could one become a T-student through Web chat? Stanford has been aligned with Silicon Valley and its culture of disruption. Now Hennessy and Stanford have to seriously contemplate whether more efficiency is synonymous with a better education.
Javier E

How Google Dominates Us by James Gleick | The New York Review of Books - 0 views

  • E-mail Single Page Print addthis_pub = 'nybooks'; addthis_logo = 'http://www.nybooks.com/images/logo-150.gif'; addthis_logo_background = 'ffffff'; addthis_logo_color = '666666'; addthis_brand = 'NYRB'; addthis_options = 'favorites, facebook, twitter, tumblr, reddit, digg, stumbleupon, delicious, google, more'; Share (function() { var s = document.getElementsByTagName('script')[0], rdb = document.createElement('script'); rdb.type = 'text/javascript'; rdb.async = true; rdb.src = document.location.protocol + '//www.readability.com/embed.js'; s.parentNode.insertBefore(rdb, s); })(); ← 1 2 3 It does not have to mean “Obey all the laws.” When Google embarked on its program to digitize copyrighted books and copy them onto its servers, it did so in stealth, deceiving publishers with whom it was developing business relationships. Google knew that the copying bordered on illegal. It considered its intentions honorable and the law outmoded.
  • Who, then, judges what is evil? “Evil is what Sergey says is evil,”
  • On all the evidence Google’s founders began with an unusually ethical vision for their unusual company. They believe in information—”universally accessible”—as a force for good in and of itself. They have created and led teams of technologists responsible for a golden decade of genuine innovation. They are visionaries in a time when that word is too cheaply used. Now they are perhaps disinclined to submit to other people’s ethical standards, but that may be just a matter of personality. It is well to remember that the modern corporation is an amoral creature by definition, obliged to its shareholder financiers, not to the public interest.
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  • The rise of social networking upends the equation again. Users of Facebook choose to reveal—even to flaunt—aspects of their private lives, to at least some part of the public world. Which aspects, and which part? On Facebook the user options are notoriously obscure and subject to change, but most users share with “friends” (the word having been captured and drained bloodless). On Twitter, every remark can be seen by the whole world, except for the so-called “direct message,” which former Representative Anthony Weiner tried and failed to employ. Also, the Library of Congress is archiving all tweets, presumably for eternity, a fact that should enter the awareness of teenagers, if not members of Congress.
  • Google+ gives users finer control over what gets shared with whom. Still, one way or another, everything is shared with the company. All the social networks have access to our information and mean to use it. Are they our friends?
  • The company always says users can “opt out” of many of its forms of data collection, which is true, up to a point, for savvy computer users; and the company speaks of privacy in terms of “trade-offs,” to which Vaidhyanathan objects: Privacy is not something that can be counted, divided, or “traded.” It is not a substance or collection of data points. It’s just a word that we clumsily use to stand in for a wide array of values and practices that influence how we manage our reputations in various contexts. There is no formula for assessing it: I can’t give Google three of my privacy points in exchange for 10 percent better service.
  • This seems right to me, if we add that privacy involves not just managing our reputation but protecting the inner life we may not want to share.
Javier E

ZPM Espresso and the Rage of the Jilted Crowdfunder - NYTimes.com - 0 views

  • The rancor is due, perhaps, to a fundamental confusion about what crowdfunding really is. On one hand, a backer is not a customer, because the product does not exist yet and may never
  • On the other hand, though, neither is a backer an investor, even if many of ZPM’s backers insisted they be treated as such. A Kickstarter pledge does not buy a portion of a company. Backers do not sit on the board; they are not enfranchised to review the company’s audited financials. Investors’ interests, at least ideally, are aligned with those of the company, whereas nothing in the crowdfunding relationship ties a backer to the company for the long term. Moreover, the last thing Kickstarter wants to deal with is S.E.C. regulations.
  • Kickstarter’s founders hardly imagined that a situation like this would arise. Neither was a technologist — Perry Chen, now 38, was an artist and gallerist, and Yancey Strickler, 36, was a music journalist — and although several of their recent hires have engineering backgrounds, they continue to see Kickstarter as something of an arts institution
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  • Projects like the Oculus Rift virtual-reality headset or the Pebble watch (both of which were Kickstarter successes that went on to become big independent businesses; the former was acquired last year by Facebook for $2 billion) course with a special energy that derives from the exchange of far-flung resources among the sympathetic and like-minded. The realized object takes on a kind of totemic significance through the aspirations and the values of the community that brought it into being
  • Until last October, Kickstarter’s terms of use stipulated that project creators had only two options to discharge their obligations: ship or refund
  • Today, in response to situations like ZPM’s, creators can refund, ship or explain, and if a full audit — financial or narrative — shows that the creators have made “every reasonable effort” toward a decent outcome, the backers are encouraged to feel satisfied. Strickler told me he feels it undermines the whole concept of crowdfunding to guarantee that products will be delivered or that refund money will be held in escrow; the acceptance of some risk, after all, is an integral part of patronage
  • Ethan Mollick, who has published several papers on crowdfunding, has found that more than 80 percent of hardware projects ship with significant delays. Most of those do ultimately deliver something, but Mollick has found that 14 percent of the projects studied have, since 2012, shipped either nothing at all or something too shoddy to use
  • If backers lack an absolute right to a product, and their legal options are limited, the policy only heightens their feeling of entitlement to full disclosure. “I long ago gave up on getting a machine, but I want my $250 of information,”
  • A chief tenet of the Internet age is belief in the natural proliferation of democracy and decentralization, in the ability of distributed networks of everyday people to achieve what once required top-down hierarchies and a great concentration of power. When you contribute to a Kickstarter campaign that funds an album or a documentary, you’re participating in the creation of cultural value outside the risk-averse bureaucracies of mass cultural production. You’re kicking in to cut out the middlemen of music labels or Hollywood studios.
  • it wasn’t until 2010, when the founders were faced with an iPhone tripod proposal, that they had to decide if such commercial projects qualified as “creative” in the way they intended. As Strickler remembers it, the tripod’s creators responded that their particular tools happened to be injection molding and AutoCAD software, but that their enterprise was absolutely in the spirit of the platform. Kickstarter agreed to host the project, but that decision inspired a sustained effort to shape best practices for gadget campaigns. Its new rules included a requirement that there be a working prototype, and a prohibition on fancy computer renderings
  • At the same time, like all 21st-century consumers, Kickstarter backers have been trained to expect a world custom-engineered for total frictionlessness. Everything is supposed to work easily, right away and well. O
  • manufacturing remains a supremely difficult process, the success of which continues to rely on marshaling a lot of resources: development money, an extensive network of trusted vendors, the dedicated personnel to sit in conference rooms in concrete campuses in Shenzhen and Dongguan and refuse to budge until the product is streaming off the assembly line in the right amounts, at the right quality and at the agreed-upon price.
  • the advice became overwhelming. “They’re doing it on their own schedule, nights and weekends, taking up a huge amount of Igor’s time when he’s got a ton of work to do,” she said. “People got insulted because they couldn’t be involved as much as they wanted.”
  • The ongoing calls for transparency put pressure on ZPM to carry on all of its business in public, but transparency and efficacy can be incommensurable ideals. ZPM couldn’t blame its vendors in updates, even for the mistakes they were consistently making, if the company wanted to keep working with them — or with anyone at all. The backers had a hard time understanding this; they continued to operate under the shared assumption that more demo­cracy, more engagement and more transparency lead inexorably to more success.
  • ZPM also could not publish a full financial audit, because open books make meaningful cost negotiation impossible. “I just can’t publish our financials, our cost breakdown,” Tambasco said. “If I do that then when I go to get this thing made, then everybody knows how much I have in the bank. Then what they’re going to do is just drain that money.”Which is exactly what happened.
  • When one of those consultants demanded, in the spring of 2014, that the project act like a “real start-up” and go into what people in Silicon Valley often call “stealth mode,” the updates came to an abrupt halt. The founders hoped that by posting their email addresses and phone numbers, and offering to field queries and complaints in person, they might assuage the backer community, but this plan, in hindsight, seemed misbegotten. It only confirmed for the backers that their one plank of accountability — the public nature of the story on offer — had been withdrawn.
  • the reality of ZPM’s failure was pretty banal: The founders were naïve and inexperienced, well intentioned but clumsy, and they serially trusted and paid the wrong people for ineffective help.
  • The backers suspected that Polyakov would try to sell the intellectual property and pocket the proceeds, but in fact Polyakov’s total asking price for the company was $35,000 to settle the founders’ legal and professional debts, equity consideration for their angel investors and, most important, a guarantee that Buckman would honor ZPM’s commitment to its backers.
jongardner04

Analysis: With Syria crumbling, Israel's security situation has never been better - Ara... - 0 views

  • Deputy IDF Chief of Staff Maj.-Gen. Yair Golan said Monday that Israel’s security situation on the northern border has improved as a result of the Syrian civil war, which has served to drain the blood of Hezbollah.
Javier E

New Statesman | Why empires fall: from ancient Rome to Putin's Russia - 0 views

  • “Transformation”, the word favoured by many historians to describe the decline of Roman power, hardly does the process justice. The brute facts of societal collapse are written both in the history of the period and in the material remains. An imperial system that had endured for centuries imploded utterly; barbarian kingdoms were planted amid the rubble of what had once been Roman provinces; paved roads, central heating and decent drains vanished for a millennium and more. So, it is not unreasonable to characterise the fall of the Roman empire in the west as the nearest thing to an asteroid strike that history has to offer.
  • even today it determines how everyone in the west instinctively understands the notion of empire. What rises must fall
Javier E

The Dangerous Myth of Appomattox - NYTimes.com - 0 views

  • Not only did fighting continue in pockets for weeks, but in other ways the United States extended the war for more than five years after Appomattox. Using its war powers to create freedom and civil rights in the South, the federal government fought against a white Southern insurgency that relied on murder and intimidation to undo the gains of the war.
  • the “Appomattox myth” persisted, and continues today. By severing the war’s conflict from the Reconstruction that followed, it drains meaning from the Civil War and turns it into a family feud, a fight that ended with regional reconciliation. It also fosters a national amnesia about what wars are and how they end, a lacuna that has undermined American postwar efforts ever since.
  • Southern soldiers continued to fight as insurgents, terrorizing blacks across the region. One congressman estimated that 50,000 African-Americans were murdered by white Southerners in the first quarter-century after emancipation. “It is a fatal mistake, nay a wicked misery to talk of peace or the institutions of peace,” a federal attorney wrote almost two years after Appomattox. “We are in the very vortex of war.”
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  • The military occupation created pockets of stability and moments of order. Excluded from politics before the war, black men won more than 1,500 offices during Reconstruction. By 1880, 20 percent of black families owned farms.
  • But the occupation that helped support these gains could not be sustained. Anxious politicians reduced the Army’s size even as they assigned it more tasks. After Grant used the military to put down the Ku Klux Klan in the Carolinas in 1871, Congress and the public lost the will to pay the human and financial costs of Reconstruction.
  • Once white Southern Democrats overthrew Reconstruction between the 1870s and 1890s, they utilized the Appomattox myth to erase the connection between the popular, neatly concluded Civil War and the continuing battles of Reconstruction.
  • By the 20th century, history textbooks and popular films like “The Birth of a Nation” made the Civil War an honorable conflict among white Americans, and Reconstruction a corrupt racial tyranny of black over white (a judgment since overturned by historians like W. E. B. DuBois and Eric Foner).
  • separating the war and the military from Reconstruction contributes to an enduring American amnesia about the Army’s role in remaking postwar societies.
  • While it is tempting to blame the George W. Bush administration for these recent wars without end, the problem lies deep within Americans’ understanding of what wars are. We wish that wars, like sports, had carefully organized rules that would steer them to a satisfying end. But wars are often political efforts to remake international or domestic orders. They create problems of governance that battles alone cannot resolve.
  • the South “surrendered at Appomattox, and the North has been surrendering ever since.” In so many wars since, the United States won the battlefield fighting but lost ground afterward.
  • Although a nation has a right to decide what conflicts are worth fighting, it does not have the right to forget its history, and in the process to repeat it.
katyshannon

Obama Sends Plan to Close Guantánamo to Congress - The New York Times - 0 views

  • President Obama sent Congress a plan on Tuesday to close the United States military prison at Guantánamo Bay, Cuba, his latest attempt to deliver on an unfulfilled promise of his presidency, which faces near-certain rejection by Congress.
  • The prison has come to symbolize the darker side of the nation’s antiterrorism efforts, but the series of steps that Mr. Obama outlined at the White House were as much an acknowledgment of the constraints binding him during his final year in office as they were a practical blueprint for transferring prisoners.
  • n presenting them, the president made little secret of his frustration that his quest to close Guantánamo, once regarded as a bipartisan moral imperative, had become a divisive political issue.
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  • I am very cleareyed about the hurdles to finally closing Guantánamo: The politics of this are tough,” Mr. Obama said during a 17-minute address. “I don’t want to pass this problem on to the next president, whoever it is. And if, as a nation, we don’t deal with this now, when will we deal with it?”
  • He said the issue had cost him “countless hours” of consternation as he toiled to craft a workable solution to a problem that he inherited from his predecessor, President George W. Bush, and that forced him to apologize on the world stage for an approach to terrorism he never supported.
  • Reprising arguments he has made since he first campaigned for president, Mr. Obama said the prison had fueled the recruitment efforts of terrorists, harmed American alliances and been a drain on taxpayer dollars.
  • It was also a final bid to erase what has become a painful and persistent blot on his tenure: his inability to tackle an issue that animated his campaign in 2008 and in many ways encapsulates his approach to national security.
  • The White House refused on Tuesday, as Mr. Obama’s advisers have done consistently, to rule out the prospect that he would use his constitutional powers as commander in chief, if Congress refuses to act, to close the prison unilaterally before leaving office.
  • The nine-page plan was immediately rejected by Republican presidential candidates and members of Congress.
  • “Not only are we not going to close Guantánamo, when I am president, if we capture a terrorist alive, they are not getting a court hearing in Manhattan. They are not going to be sent to Nevada,” Senator Marco Rubio of Florida, a presidential candidate, said at a campaign rally in Las Vegas before the state’s Republican caucus. “They are going to Guantánamo, and we are going to find out everything they know.”
  • Democrats, too, were skeptical of the strategy, which centers on bringing to a prison on domestic soil 30 to 60 detainees who are deemed too dangerous to release, while transferring the remaining detainees to other countries.
  • The blueprint offered few specifics, refraining from mentioning any of the potential replacement facilities the Pentagon had visited in preparing it, including military prisons in Leavenworth, Kan., and Charleston, S.C., as well as several civilian prisons in Colorado.
  • At the start of his administration, Mr. Obama noted, Republicans — including his predecessor, George W. Bush, and his rival for the White House, Senator John McCain of Arizona — backed the idea of closing the prison. “This was not some radical, far-left view,” Mr. Obama said. But “the public was scared into thinking that, well, if we close it, somehow we’ll be less safe.”
  • The Pentagon argued in its proposal that replacing Guantánamo would cost less than keeping detainees at the naval base in Cuba. Upgrading an existing prison could cost as much as $475 million, but would save the government as much as $85 million annually in operational costs compared with Guantánamo, it found.
  • The president’s plan faces steep obstacles, however. Congress has enacted a law banning the military from transferring detainees from Guantánamo onto domestic soil, and lawmakers have shown little interest in lifting that restriction.
  • Human rights groups and lawyers for detainees were divided. Some oppose bringing detainees who are being detained indefinitely without trial onto domestic soil, saying that would simply relocate the problem without solving it.
  • The Bush administration opened the prison in January 2002 and sent detainees from the Afghanistan war there. It declared that the detainees were not protected by the Geneva Conventions and that courts had no authority to oversee what the government did to prisoners at the base. In the prison’s early years, interrogators frequently used coercive techniques on detainees.
  • In one of his first acts as president, Mr. Obama issued an executive order instructing the government to shut the prison down within a year. But that proved easier said than done, and as the administration studied how to go about achieving that goal, political support for it melted away.
  • Mr. Obama has refused to add any more detainees to the 242 he inherited, instead working to chip away at the population. Of the 91 who remain, 35 are recommended for transfer if security conditions can be met, 10 have been charged or convicted before the military commissions system, and 46 have neither been charged with a crime nor approved for transfer.
  • A parolelike periodic review board is slowly working its way through their numbers and moving some to the transfer list. It was meeting even on Tuesday, senior administration officials said, as Mr. Obama strode into the Roosevelt Room to say, “Let us go ahead and close this chapter.”
maddieireland334

Money Given to Kenya, Since Stolen, Puts Nike in Spotlight - The New York Times - 0 views

  • When a Chinese clothing company swooped in and offered to sponsor Kenya’s famed runners, Nike panicked, Kenyan officials say.
  • Kenya’s athletics federation — has led to a major scandal in Kenya, a country in the midst of its biggest war against corruption in years.
  • In a contract signed several years ago, Nike agreed to pay hundreds of thousands of dollars in honorariums and a one-time $500,000 “commitment bonus,” which the former employee called a bribe.
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  • money was supposed to be used to help train and support poor Kenyan athletes who dream of running their way out of poverty.
  • immediately sucked out of the federation’s bank account by a handful of Kenyan officials and kept off the books.
  • does not appear to be under investigation by the United States authorities.
  • all three Kenyan athletics officials accused of taking money from Nike have been suspended
  • For more than 20 years, Nike Inc. has been paying the Kenyan national runners’ association millions of dollars in exchange for the Kenyans wearing Nike’s signature swoosh, superb advertising in the running world.
  • Ethiopian runners, who also excel at middle- and long-distance races, have a sponsorship agreement with Adidas, but an official there said their contract contained no commitment bonus
  • In a sworn statement provided to Kenyan investigators, the former assistant said the $500,000 commitment bonus was “bribe money from Nike” so that the top officials could pay back the $200,000 from the scuttled deal with the Chinese company and then make even more by agreeing to sign up again with Nike.
  • Nearly every day there seems to be allegations of some new scandal: a government ministry buying plastic pens for $85 apiece, a Supreme Court judge taking a $2 million bribe, questions about what exactly happened to the proceeds of a multibillion-dollar bond deal.
  • Kenyan athletes were so outraged when they learned in November that hundreds of thousands of dollars from Nike had been stolen by their bigwigs that they staged a protest at their headquarters in Nairobi, with elite athletes camped out in the grass and holding up signs that read “blood sucers.” (Some of the runners never finished school.) Advertisement Continue reading the main story
  • But those complaints may have been a ruse by Kenyan officials to get out of the Nike contract so they could receive a bribe from another company, said a member of the executive board of Kenya’s track and field federation, known as Athletics Kenya.
  • The sports-marketing agent who made the payment, Papa Massata Diack, was recently banned for life by the International Association of Athletics Federations, a global governing body for track and field.
  • After they received a letter from a Nike lawyer saying there were no legal grounds to terminate the contract, the Kenyan officials abruptly changed course.
  • They negotiated a new contract in which Nike agreed to pay Athletics Kenya an annual sponsorship fee of $1.3 million to $1.5 million — plus $100,000 honorariums each year and a one-time $500,000 “commitment bonus.”
  • Nike executives refused to discuss the contract, issuing a short statement that the money paid to Athletics Kenya was supposed to support the athletes. It said that Nike conducted business with integrity and that “we are cooperating with the local authorities in their investigation,” a point the Kenyan detectives dispute.
  • Western nations have threatened sanctions, and the United States government has been especially vocal about corruption, with White House officials unveiling a 29-point plan to root it out.
  • He said corruption in the athletics federation was so ingrained and so brazen that officials routinely extorted money from athletes who failed drug tests. He also said the organization’s chairman, Isaiah Kiplagat, had asked Nike to wire the bonus directly to his personal account, a request that Nike refused.
  • Within days, according to bank records, the $500,000 was withdrawn by Athletics Kenya’s top officials. There were no major track and field activities going on at the time, and the board member and the former administrative assistant said just about all of the money had been concealed from Athletics Kenya’s executive committee, including $200,000 sent to a bank account in Hong Kong.
  • Analysts said this case was especially tricky because it did not appear to fall under the Foreign Corrupt Practices Act, the American law that covers crimes involving American companies and foreign government officials.
  • The Kenyan running association, while it receives some government money, is not a Kenyan government agency.
  • He noted that sports federations, like Athletics Kenya and FIFA, international soccer’s governing body, which is embroiled in its own corruption saga, often fell between the cracks of the rules that governed businesses, public agencies and traditional nonprofit organizations, even though sports federations have qualities of all three.
rachelramirez

Money Given to Kenya, Since Stolen, Puts Nike in Spotlight - The New York Times - 0 views

  • Money Given to Kenya, Since Stolen, Puts Nike in Spotlight
  • What followed — according to email exchanges, letters, bank records and invoices, provided by a former employee of Kenya’s athletics federation — has led to a major scandal in Kenya, a country in the midst of its biggest war against corruption in years.
  • In a contract signed several years ago, Nike agreed to pay hundreds of thousands of dollars in honorariums and a one-time $500,000 “commitment bonus,” which the former employee called a bribe.
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  • John Githongo, one of Kenya’s leading voices against corruption, said the American government should pick up this case and “run with it.”
  • For more than 20 years, Nike Inc. has been paying the Kenyan national runners’ association millions of dollars in exchange for the Kenyans wearing Nike’s signature swoosh
  • Several professional runners said they had heard of signing bonuses for individual athletes, but never such a large one-time bonus for a national federation.
  • The fallout from the Nike deal hit just as Western embassies were coming down hard on Kenya for corruption.
  • Several analysts said Nike could not afford to lose the Kenyans. Running is integral to Nike’s brand
  • Several analysts said the chairman’s asking for the money to be wired to his personal account and then sending a follow-up email labeled “Urgent!!” should have been a tipoff to Nike that something was untoward.
  • Analysts said this case was especially tricky because it did not appear to fall under the Foreign Corrupt Practices Act, the American law that covers crimes involving American companies and foreign government officials.
Javier E

The moral rot is spreading - The Washington Post - 0 views

  • Majority Leader Mitch McConnell (Ky.) stood on the Senate floor Wednesday morning for his first public remarks since the seismic events of the day before: The president’s former personal lawyer pleaded guilty to fraud and breaking campaign finance laws, implicating the president in a crime; the president’s former campaign chairman was convicted on eight counts of financial crimes, making him one of five members of Trump’s team who have been convicted or have admitted guilt; and a Republican congressman was indicted, the second of Trump’s earliest congressional supporters to be charged this month.
  • McConnell’s counterpart in the House, Speaker Paul D. Ryan (Wis.), was equally cowardly. “We are aware of Mr. [Michael] Cohen’s guilty plea to these serious charges” was his office’s official statement. “We will need more information than is currently available at this point.”
  • What more do you need, Mr. Speaker? What more will it take, Republicans? It seems nothing can bring them to state what is manifestly true: The president is unfit to serve, surrounded by hooligans and doing incalculable harm.
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  • This intolerable silence of the Republicans — through “Access Hollywood,” racist outbursts, diplomatic mayhem and endless scandal — is what allows Trump and his Fox News-viewing supporters to dock their spaceship in a parallel universe where truth isn’t truth. At Tuesday night’s rally in West Virginia, Trump’s irony-challenged audience could be heard chanting “Drain the Swamp!” and “Lock her up!” (Hillary Clinton, that is), just a few hours after Paul Manafort’s conviction and Cohen’s guilty plea.
  • there doesn’t have to be collusion, or even speculation, to recognize that something is terribly wrong. There is no good answer to the question Cohen lawyer Lanny Davis posed after his client said under oath that Trump directed him to pay off two women to influence the election: “If those payments were a crime for Michael Cohen, then why wouldn’t they be a crime for Donald Trump?”
Javier E

Why Trump Supporters Don't Care About Cohen's Admission - The Atlantic - 0 views

  • Trump’s supporters say they care about corruption. During the campaign, they cheered his vow to “drain the swamp” in Washington, D.C. When Morning Consult asked Americans in May 2016 to explain why they disliked Hillary Clinton, the second-most-common answer was that she was “corrupt.”
  • Trump supporters appear largely unfazed by the mounting evidence that Trump is the least ethical president in modern American history. When asked last month whether they considered Trump corrupt, only 14 percent of Republicans said yes
  • In a forthcoming book titled How Fascism Works, the Yale philosophy professor Jason Stanley makes an intriguing claim. “Corruption, to the fascist politician,” he suggests, “is really about the corruption of purity rather than of the law. Officially, the fascist politician’s denunciations of corruption sound like a denunciation of political corruption. But such talk is intended to evoke corruption in the sense of the usurpation of the traditional order.”
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  • The answer may lie in how Trump and his supporters define corruptio
  • In the eyes of many Fox viewers, I suspect, the network isn’t ignoring corruption so much as highlighting the kind that really matters. When Trump instructed Cohen to pay off women with whom he’d had affairs, he may have been violating the law. But he was upholding traditional gender and class hierarchies. Since time immemorial, powerful men have been cheating on their wives and using their power to evade the consequences
  • The Iowa murder, by contrast, signifies the inversion—the corruption—of that “traditional order.” Throughout American history, few notions have been as sacrosanct as the belief that white women must be protected from nonwhite men. By allegedly murdering Tibbetts, Rivera did not merely violate the law. He did something more subversive: He violated America’s traditional racial and sexual norms.
  • Once you grasp that for Trump and many of his supporters, corruption means less the violation of law than the violation of established hierarchies, their behavior makes more sense
  • Clinton’s candidacy threatened traditional gender roles. For many Americans, female ambition—especially in service of a feminist agenda—in and of itself represents a form of corruption.
  • Cohen’s admission makes it harder for Republicans to claim that Trump didn’t violate the law. But it doesn’t really matter. For many Republicans, Trump remains uncorrupt—indeed, anticorrupt—because what they fear most isn’t the corruption of American law; it’s the corruption of America’s traditional identity.
  • And in the struggle against that form of corruption—the kind embodied by Cristhian Rivera—Trump isn’t the problem. He’s the solution.
Javier E

I read six sycophantic pro-Trump books - and then I read Omarosa - The Washington Post - 0 views

  • Embracing exclusion and division is the seventh and final precondition of a loyal pro-Trump work. Gingrich puts it most cynically in “Trump’s America,” his second book on the president, asserting that the nation is in the midst of a cultural and political “civil war,” with hard-working, flag-waving citizens on one side and a bunch of radical, liberal, globalist, academic, identity-obsessed, duplicitous, establishment, America-hating swamp creatures on the other.
  • “Trump’s America and the post-American society that the anti-Trump coalition represents are incapable of coexisting,” he writes. “One will simply defeat the other. There is no room for compromise. Trump has understood this perfectly since day one.” Gingrich congratulates Trump for continuing to hold rallies throughout his presidency. “It’s important to see an arena full of people and be reminded that he speaks for them.”
  • Arguments don’t need to be any stronger if all you hope to elicit is vigorous assent rather than debate or thought. For that, “not on my watch” does fine. Jarrett writes that “the anti-Trump crowd is so adamant in their disdain that no amount of reason will reach them.” No wonder that in so many of these books, little amount of reason is offered.
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  • Lewandowski and Bossie, for all their campaign nostalgia, point out that Trump could be awful in person. “The mode that he switches into when things aren’t going his way can feel like an all-out assault. . . . Around the campaign, we’d call it getting your face ripped off.” (They took special delight in witnessing the removal of Paul Manafort’s face.) They also put the lie to Trump’s swamp-draining talk. “To tell you the truth, the establishment/outsider distinction never mattered all that much to Trump,” they admit. “In his mind, people are placed into two distinct categories: loyal and disloyal.”
Javier E

Opinion | Libertarians in the Age of Trump - The New York Times - 0 views

  • The teenage nerd enters conservatism through either Atlas Shrugged or Lord of the Rings, and between Tolkienists like myself and the Randians a great gulf is often fixed.
  • even if libertarianism seems an insufficient philosophy of human flourishing, its defense of individuals and markets can be a crucial practical corrective to all manner of liberal and conservative mistakes
  • Just a little while ago journalists were talking about a “libertarian moment” in American politics, with Rand Paul as its avatar
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  • So what exactly happened to his moment?
  • One answer is that the libertarian spirit was overextended and vulnerable to a backlash. Confident free-traders underestimated how much outsourcing had cost the Western working class. Entitlement reformers overestimated the political practicality of their proposals. Cultural laissez-faire weakened social solidarity, with opioid-driven disintegration the starkest symptom of decay. And the rise of ISIS transmuted the post-Iraq anti-interventionist impulse into a “raise the drawbridge” style of politics, with the libertarian aspect drained away.
  • n this account Trumpism, with its tariffs and walls and family-separating cruelties, is simply a rejection of the politics of liberty, an anti-libertarian moment.
  • there’s also a different story, in which Trump didn’t as much defeat Rand Paul’s worldview as co-opt its more effective messages, while exploiting libertarianism’s tendency to devolve into purely interest-based appeals.
  • On foreign policy, for instance, Trump ran as hard against the Iraq War and neoconservatism as the Kentucky senator or his father. Trump’s skepticism about international institutions and U.S. intelligence agencies is also in tune with common libertarian assumptions (and paranoias).
  • Meanwhile, on economic policy, you could argue that Trump has debased libertarianism rather than disavowing it, following many prior Republicans in using the rhetoric of capitalism to champion favored business interests rather than free markets.
  • Wandering and arguing at FreedomFest offered grist for both understandings of how libertarianism relates, or doesn’t, to Trumpism.
  • Amash’s approach is intellectually admirable; Paul’s is probably more in tune with what a lot of self-described libertarian voters currently want. Which leaves libertarianism in much the same difficult position as other forms of conservatism under Trump.
  • His ascent has a lot to teach ideological purists about the political limits of their theories, the need to temper dogma with more contingent wisdom.
Javier E

Trump meets his real enemy - The Washington Post - 0 views

  • Trump will continue to bask in the faithful’s chants of “Lock her up,” as he did at a West Virginia rally Tuesday night, but Hillary Clinton is no longer his adversary. His enemies now are the facts and the truth. They cannot be jailed and have no personal shortcomings to exploit. Trump and his defenders are reduced to arguing that truth doesn’t exist.
  • Trump’s speech was a catalogue of antipathies and a gauge of his fight-back plan: He will make his survival synonymous with the aspirations of voters who despise liberals, fear cultural change and see Trump as their last-ditch defender in a hostile world.
  • “The Democrat Party is held hostage by the so-called resistance: left-wing haters and angry mobs,” he declared. “They’re trying to tear down our institutions, disrespect our flag, demean our law enforcement, denigrate our history and disparage our great country — and we’re not going to let it happen.”
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  • Through the sheer force of his malevolence, Trump hopes to bait his foes into engaging on matters far more favorable to him
  • Trump’s effort took a major hit with the success of Mueller’s team in convicting Manafort. But Cohen’s plea inflicted damage of a higher order because it tied Trump to a crime. This was not a bank shot. It was a direct hit.
  • Democratic candidates are coming to see an attack on corruption as the theme that will unite their party, appeal to less partisan voters — including at least some in Trump’s 2016 “drain the swamp” constituency — and highlight the broad range of misdeeds by the president, his advisers and his administration.
Javier E

Why Pete Buttigieg Seems 'Authentic' - The Atlantic - 0 views

  • Authenticity is not about being honest; it’s about seeming unscripted. If you sound rehearsed, then you can’t possibly be saying whatever you’re thinking right now; you’re saying something you decided to say at some moment in the past
  • As a candidate and as president, Obama had the gift of seeming unrehearsed. He could deliver scripted speeches with the emotion, humor, energy, and surprise of someone articulating his ideas for the first time.
  • At the other end of the spectrum we find Hillary Clinton. Despite her obvious qualifications, she was hamstrung as a presidential candidate by an inability to sound like a normal person when addressing large audiences. Her performances in the major televised contexts in which most Americans saw her in 2016 were generally robotic and awkward—filled with strange pauses and painfully delivered jokes, drained of spontaneity.
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  • the paradox of a serial liar such as Trump coming across as authentic isn’t much of a paradox at all. Trump lies authentically. He is so committed to saying whatever he feels like that he doesn’t let the truth get in the way.
  • If the art of authenticity resides in making the scripted seem spontaneous, doesn’t that make it fundamentally inauthentic?Short answer: yes. Great orators such as Obama—or Ronald Reagan, literally an actor—have the gift of obscuring the artificiality of political communication.
  • What sets Buttigieg apart as a political talent, then, is not really his intellect. It’s his ability to give a speech, or answer questions onstage, in a way that makes it seem as though he’s earnestly thinking through his beliefs in real time.
  • just as Trump’s most loyal voters can’t help but be taken in by the billionaire president’s man-of-the-people routine, well-educated liberals can’t help being drawn to someone who plays the part of the thoughtful intellectual.
  • public speaking has outsize importance, at least at the national level, simply because voters overwhelmingly get their input about a candidate’s personality by seeing them give a speech or interview or participate in a televised debate.
  • Authenticity is like political magic. The best you can do is remind yourself it’s a trick.
Javier E

The Aldi effect: how one discount supermarket transformed the way Britain shops | Busin... - 0 views

  • For Aldi, the panic and rush is an integral part of the shopping experience for two reasons. The first is the happy realisation once you have left the store, and your heartbeat has settled, that you have spent less time shopping than you would have in a typical supermarket. The second, and most important, is what Aldi managers describe, straight-faced, as “the thrill at the till”: your trolley full of goods has cost less than you thought it would. The rushed, no-frills experience isn’t something you merely endure for the sake of saving money; the awareness of your savings makes that experience a pleasure in itself.
  • Aldi is still relatively low-tech: without a loyalty programme, it knows little about individual customer preferences and you can’t buy its groceries online. What it has done is disrupt a mindset: the settled wisdom about how we think of ourselves as shoppers, and the basis by which we identify with a particular supermarket. Aldi’s victory was to show that there was no shame – and in fact there was satisfaction – in shopping at a discount supermarket
  • “Aldi’s customer profile is now classless,” said Hyman. “The supermarket is as strong with affluent people as it is with people on low incomes.”
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  • arl Albrecht, who was famously secretive, only spoke publicly about Aldi’s business model on one occasion – in 1953. Its fundamental principles, he said, were “narrow product range and low price, [which] cannot be separated
  • Lacking capital, they stocked only a tight range of staples, such as pasta and soap, planning to widen the offering later. But they soon realised that offering a limited selection of cheap, fast-selling goods kept their costs down and the cash flowing, which they could use to invest in new stores. As the former Aldi executive Dieter Brandes and his son Nils wrote in “Bare Essentials”, their book about the company: “Basically, a completely new business model was created along the lines of a discovery in the natural sciences: by accident.”
  • in 1961, when they had 300 stores, they chose to split Aldi, short for Albrecht Discount, into two parts. The “Aldi equator” ran through Essen, with Theo taking the part of Germany to the north, and Karl the south. Aldi North and Aldi South shared all information, except profits, and conducted some supplier negotiations jointly, but were otherwise run separately, with their stores carrying different product ranges and featuring differently coloured floors – one yellow and one grey.
  • Theo continued to put in long hours at the office, managing even the smallest details in his quest to save money. He wore pencils down to the nubs and turned off the light when entering an office if he judged that his staff could see well enough without it. He once told his board to look at the thickness of the paper used for photocopies. Outside consultants and media interviews were banned, considered unnecessary expenditures or distractions. Asceticism was a virtue in life and business, he believed. “People live more on what they do not eat,” he once said. He wanted Aldi to be a place where “people who don’t hate their money can safely go shopping”
  • In their book “Bare Essentials”, Dieter and Nils Brandes argued that Aldi’s embrace of kaizen, its lean management structure and just-in-time approach to inventory – taking delivery of stock only when needed, to cut holding costs – made it the “most Japanese” company in Germany.
  • 1976, Aldi South, Karl’s company, opened the first Aldi store on the east coast of the US. Three years later, in 1979, Theo’s Aldi North purchased Trader Joe’s, a California chain that sells cheap gourmet foods and enjoys a cult-like following. (The US is still the only foreign market where both Aldis operate.)
  • Second, the main chains – the big four as well as the leading “soft” discounter Kwik Save (which stocked a larger range than Aldi) – were listed on the stock exchange. The best way to fight Aldi early on is to slash prices, but few bosses of public companies are happy to accept lower profits, and thus lower bonuses, by pursuing long-term strategies
  • Fourth, and most importantly, the UK is, by global standards, a high-wage economy. This means that labour costs make up a big part of a supermarket’s operating expenses. Here, discounters have a major competitive advantage, because their business model – stocking a small range of products, eschewing delicatessens and promotions, and so on – allows them to operate with fewer, more productive, staff. (The most important performance measure in any Aldi branch is revenue divided by employee hours.)
  • Paying well obviously helps attract and retain staff, who might otherwise go to chains where the pace of work is slower. But it also serves to drive up wages across the industry, which, because of Aldi’s lower overall employee costs, hurts its competitors more.
  • As a private company, with no shareholders other than Karl Albrecht’s family to answer to, it could afford to be patient. “Aldi is very attuned to going into a country, making the investment, and building slowly and steadily,” said Richard Hyman, the retail expert. “Most other companies don’t have a 30-year view – or even a five-year view.”
  • By the time the supermarkets awoke to the structural shift that had occurred in the industry, the damage was done. “The big four bosses were not just sleeping at the wheel,” said Black. “They were comatose.”
  • “Ten years ago we had 900 lines, now we have 1,800,” said Neale. “That’s not because we are trying to become a big-four retailer, it’s because consumer tastes have evolved. We are managing the equilibrium between what customers want and costs.”
  • As the large supermarkets have realised, it is very hard to make money from internet sales because the profit margin on groceries is small and the delivery costs are so high – but now they can’t reverse course without losing customers. Andy Clarke, the former boss of Asda, told the Sunday Times last year that if the big four supermarkets had their time again “they wouldn’t have offered home deliveries, full stop”. “Online groceries are a cost drain,” Neale said. “Why should 90% of customers subsidise the 10% who get free home delivery?”
  • All supermarkets have their own private labels: made not by them, but for them, by manufacturers who agree to put their merchandise in a bag or box with the grocer’s logo on it. But Aldi takes this to extremes: more than 90% of the products it sells, from shaving cream to dark chocolate and frozen pizza, are private labels
  • Stocking mostly own-label goods allows the company to order huge quantities of a single item, to its own specifications, at a low unit cost.
  • Aldi’s entire ketchup order comes from one manufacturer that can operate the same, unchanging product run, all the time, and has no marketing costs to build into the price. “For many SKUs we are the biggest buyer by a country mile,” Neale said.
  • Among UK suppliers, who have often been treated badly by the big supermarkets, with their pressure for back margin fees and slow payment terms, Aldi has a good reputation
  • in 2010, following the death of Theo, which it said brought to an end “the story of the most eccentric, secretive and mysterious pair of siblings in Germany’s post-war economic history”. Karl died four years later, the richest man in Germany with a net worth of $25bn. (Second on the list was Dieter Schwarz, the Lidl owner, followed by Theo’s heirs.)
  • In 2017, Aldi South’s revenues reached €52bn, with about 20% of that from the UK and Ireland. In Ireland, Aldi has 12% of the market, and in Australia 13%, behind Woolworths and Coles. Its share in the US is only 2% – but Aldi plans to raise its number of outlets from 1,800 to 2,500 by 2022, which would make it the third-biggest chain in the US by store count, after Walmart and Kroger
  • In the UK there is still plenty of room to grow. Aldi hopes to have 1,000 shops in three years, up from just over 800 today. Dave McCarthy, a retail analyst at HSBC, said that given Aldi and Lidl’s expansion plans, their share of the market could peak at more than 20%.
Javier E

Spurning Erdogan's Vision, Turks Leave in Droves, Draining Money and Talent - The New Y... - 0 views

  • The result is that, for the first time since the republic was founded nearly a century ago, many from the old moneyed class, in particular the secular elite who have dominated Turkey’s cultural and business life for decades, are moving away and the new rich close to Mr. Erdogan and his governing party are taking their place.
  • Thousands of Turks like her have applied for business visas in Britain or for golden visa programs in Greece, Portugal and Spain, which grant immigrants residency if they buy property at a certain level.
  • With the help of subsidies and favorable contracts, the government has helped new businesses to emerge, and they are rapidly replacing the old ones, he said. “There is a transfer of capital underway,” he said. “It is social and political engineering.”
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  • At least 12,000 of Turkey’s millionaires — around 12 percent of the country’s wealthy class — moved their assets out of the country in 2016 and 2017, according to the Global Wealth Migration Review, an annual report produced by AfrAsia Bank.
  • Most of them moved to Europe or the United Arab Emirates, the report said. Turkey’s largest business center, Istanbul, was listed among the top seven cities worldwide experiencing an exodus of wealthy people.
  • Mr. Erdogan has reviled as traitors businesspeople who have moved their assets abroad as the Turkish economy began to falter.“Pardon us, we do not forgive,” he warned in a speech at the Foreign Economic Relations Board, a business association in Istanbul in April. “The hands of our nation would be on their collars both in this world and in the afterlife.”“Behavior like this cannot have a valid explanation,” Mr. Erdogan added.
malonema1

The Goldman Sachs era in Trump's White House is fading away - 0 views

  • Top economic adviser Gary Cohn is only the latest Goldman figure to head for the White House exits, suggesting the influence of the oh-so-establishment banking powerhouse has been overwhelmed by the more nationalistic voices in the West Wing.
  • Of course, handing big jobs to Goldman alumni is an Oval Office tradition. The influential bank has produced Treasury secretaries, White House chiefs of staff and top economic advisers in both Republican and Democratic administrations. But Trump's reliance on Goldman talent was a surprise to some, given his anti-Wall Street, drain-the-swamp campaign rhetoric.
  • "I think Donald Trump wanted these Goldman people as a way to stroke his own ego. Don't forget that Goldman never wanted to do business with Donald Trump," Cohan said. "It was a way for (Trump) to say 'Ha, ha, now I've got some of your best people working for me.'"
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  • So far, Trump's presidency has been good for Goldman and other major banks. Since taking office, Trump's main legislative achievement was a $1.5 trillion tax cut applauded by Wall Street. Cohn and Mnuchin were deeply involved in that process and Cohn stayed in the administration to work on it, after he was upset by the president's comments about the racial violence in Charlottesville last August.
  • Blankfein weighed in on Twitter saying: "Gary Cohn deserves credit for serving his country in a first class way. I'm sure I join many others who are disappointed to see him leave."
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