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Javier E

The Great Divorce - NYTimes.com - 0 views

  • Murray’s basic argument is not new, that America is dividing into a two-caste society.
  • His story starts in 1963. There was a gap between rich and poor then, but it wasn’t that big.
  • More important, the income gaps did not lead to big behavior gaps. Roughly 98 percent of men between the ages of 30 and 49 were in the labor force, upper class and lower class alike. Only about 3 percent of white kids were born outside of marriage
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  • Since then, America has polarized. The word “class” doesn’t even capture the divide Murray describes. You might say the country has bifurcated into different social tribes, with a tenuous common culture linking them.
  • People in the lower tribe are much less likely to get married, less likely to go to church, less likely to be active in their communities, more likely to watch TV excessively, more likely to be obese.
  • Roughly 7 percent of the white kids in the upper tribe are born out of wedlock, compared with roughly 45 percent of the kids in the lower tribe.
  • In the upper tribe, nearly every man aged 30 to 49 is in the labor force. In the lower tribe, men in their prime working ages have been steadily dropping out of the labor force, in good times and bad.
  • there are vast behavioral gaps between the educated upper tribe (20 percent of the country) and the lower tribe (30 percent of the country).
  • Republicans claim that America is threatened by a decadent cultural elite that corrupts regular Americans, who love God, country and traditional values. That story is false. The cultural elites live more conservative, traditionalist lives than the cultural masses.
  • Murray’s story contradicts the ideologies of both parties
  • Democrats claim America is threatened by the financial elite, who hog society’s resources. But that’s a distraction. The real social gap is between the top 20 percent and the lower 30 percent. The liberal members of the upper tribe latch onto this top 1 percent narrative because it excuses them from the central role they themselves are playing in driving inequality and unfairness.
  • It’s wrong to describe an America in which the salt of the earth common people are preyed upon by this or that nefarious elite. It’s wrong to tell the familiar underdog morality tale in which the problems of the masses are caused by the elites.
  • The truth is, members of the upper tribe have made themselves phenomenally productive. They may mimic bohemian manners, but they have returned to 1950s traditionalist values and practices. They have low divorce rates, arduous work ethics and strict codes to regulate their kids.
  • Members of the lower tribe work hard and dream big, but are more removed from traditional bourgeois norms. They live in disorganized, postmodern neighborhoods in which it is much harder to be self-disciplined and productive.
Javier E

The Best and Worst Places to Grow Up: How Your Area Compares - The New York Times - 0 views

  • Location matters – enormously. If you’re poor and live in the Philadelphia area, it’s better to be in Bucks County than in Cumberland County or Atlantic County. Not only that, the younger you are when you move to Bucks, the better you will do on average. Children who move at earlier ages are less likely to become single parents, more likely to go to college and more likely to earn more.
  • esearchers are no longer confined to talking about which counties merely correlate well with income mobility; new data suggests some places actually cause it.
  • Across the country, the researchers found five factors associated with strong upward mobility: less segregation by income and race, lower levels of income inequality, better schools, lower rates of violent crime, and a larger share of two-parent households. In general, the effects of place are sharper for boys than for girls, and for lower-income children than for rich.
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  • “The broader lesson of our analysis,” Mr. Chetty and Mr. Hendren write, “is that social mobility should be tackled at a local level.”
  • the new estimates of mobility conflict with earlier estimates. For example, previous estimates suggested that New York City was a good place for lower-income children to grow up: Children raised in lower-income families in New York had above-average outcomes in adulthood.
  • But New York appeared above average in part because it has a large number of immigrants, who have good rates of upward mobility no matter where they live: Nothing about New York in particular caused these children to do better.
  • Mr. Chetty and Mr. Hendren based the latest estimates on the incomes of more than five million children who moved between areas when they were growing up in the 1980s and 1990s. These estimates are causal: They suggest moving a given child to a new area would in fact cause him or her to do better or worse.
  • In the new estimates, Manhattan ranks among the worst counties in the country for girls from lower-income families.
  • better or worse is measured by the household incomes of children in early adulthood. This makes New York look worse than it would if individual incomes were used, because it, along with Northern California, has some of the lowest marriage rates in the country. Manhattan is actually better than most of the country at raising the individual incomes of poor girls. Marriage rates, too, are strongly affected by where children grow up.
  • in poor families. It is better than only about 7 percent of counties.
Javier E

Collapsing Levels of Trust Are Devastating America - The Atlantic - 0 views

  • American history is driven by periodic moments of moral convulsion
  • Harvard political scientist Samuel P. Huntington noticed that these convulsions seem to hit the United States every 60 years or so: the Revolutionary period of the 1760s and ’70s; the Jacksonian uprising of the 1820s and ’30s; the Progressive Era, which began in the 1890s; and the social-protest movements of the 1960s and early ’70s
  • A highly moralistic generation appears on the scene. It uses new modes of communication to seize control of the national conversation. Groups formerly outside of power rise up and take over the system. These are moments of agitation and excitement, frenzy and accusation, mobilization and passion.
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  • In 1981, Huntington predicted that the next moral convulsion would hit America around the second or third decade of the 21st century—that is, right about now.
  • Trump is the final instrument of this crisis, but the conditions that brought him to power and make him so dangerous at this moment were decades in the making, and those conditions will not disappear if he is defeated.
  • Social trust is a measure of the moral quality of a society—of whether the people and institutions in it are trustworthy, whether they keep their promises and work for the common g
  • When people in a society lose faith or trust in their institutions and in each other, the nation collapses.
  • This is an account of how, over the past few decades, America became a more untrustworthy society
  • under the stresses of 2020, American institutions and the American social order crumbled and were revealed as more untrustworthy still
  • We had a chance, in crisis, to pull together as a nation and build trust. We did not. That has left us a broken, alienated society caught in a distrust doom loop.
  • The Baby Boomers grew up in the 1950s and ’60s, an era of family stability, widespread prosperity, and cultural cohesion. The mindset they embraced in the late ’60s and have embodied ever since was all about rebelling against authority, unshackling from institutions, and celebrating freedom, individualism, and liberation.
  • The emerging generations today enjoy none of that sense of security. They grew up in a world in which institutions failed, financial systems collapsed, and families were fragile. Children can now expect to have a lower quality of life than their parents, the pandemic rages, climate change looms, and social media is vicious. Their worldview is predicated on threat, not safety.
  • Thus the values of the Millennial and Gen Z generations that will dominate in the years ahead are the opposite of Boomer values: not liberation, but security; not freedom, but equality; not individualism, but the safety of the collective; not sink-or-swim meritocracy, but promotion on the basis of social justice
  • A new culture is dawning. The Age of Precarity is here.
  • I’ve spent my career rebutting the idea that America is in decline, but the events of these past six years, and especially of 2020, have made clear that we live in a broken nation. The cancer of distrust has spread to every vital organ.
  • Those were the days of triumphant globalization. Communism was falling. Apartheid was ending. The Arab-Israeli dispute was calming down. Europe was unifying. China was prospering. In the United States, a moderate Republican president, George H. W. Bush, gave way to the first Baby Boomer president, a moderate Democrat, Bill Clinton.
  • The stench of national decline is in the air. A political, social, and moral order is dissolving. America will only remain whole if we can build a new order in its place.
  • The American economy grew nicely. The racial wealth gap narrowed. All the great systems of society seemed to be working: capitalism, democracy, pluralism, diversity, globalization. It seemed, as Francis Fukuyama wrote in his famous “The End of History?” essay for The National Interest, “an unabashed victory for economic and political liberalism.”
  • Nations with low social trust—like Brazil, Morocco, and Zimbabwe—have struggling economies.
  • We think of the 1960s as the classic Boomer decade, but the false summer of the 1990s was the high-water mark of that ethos
  • The first great theme of that era was convergence. Walls were coming down. Everybody was coming together.
  • The second theme was the triumph of classical liberalism. Liberalism was not just a philosophy—it was a spirit and a zeitgeist, a faith that individual freedom would blossom in a loosely networked democratic capitalist world. Enterprise and creativity would be unleashed. America was the great embodiment and champion of this liberation.
  • The third theme was individualism. Society flourished when individuals were liberated from the shackles of society and the state, when they had the freedom to be true to themselves.
  • For his 2001 book, Moral Freedom, the political scientist Alan Wolfe interviewed a wide array of Americans. The moral culture he described was no longer based on mainline Protestantism, as it had been for generations
  • Instead, Americans, from urban bobos to suburban evangelicals, were living in a state of what he called moral freedom: the belief that life is best when each individual finds his or her own morality—inevitable in a society that insists on individual freedom.
  • moral freedom, like the other dominant values of the time, contained within it a core assumption: If everybody does their own thing, then everything will work out for everybody.
  • This was an ideology of maximum freedom and minimum sacrifice.
  • It all looks naive now. We were naive about what the globalized economy would do to the working class, naive to think the internet would bring us together, naive to think the global mixing of people would breed harmony, naive to think the privileged wouldn’t pull up the ladders of opportunity behind them
  • Over the 20 years after I sat with Kosieva, it all began to unravel. The global financial crisis had hit, the Middle East was being ripped apart by fanatics. On May 15, 2011, street revolts broke out in Spain, led by the self-declared Indignados—“the outraged.” “They don’t represent us!” they railed as an insult to the Spanish establishment. It would turn out to be the cry of a decade.
  • Millennials and members of Gen Z have grown up in the age of that disappointment, knowing nothing else. In the U.S. and elsewhere, this has produced a crisis of faith, across society but especially among the young. It has produced a crisis of trust.
  • Social trust is a generalized faith in the people of your community. It consists of smaller faiths. It begins with the assumption that we are interdependent, our destinies linked. It continues with the assumption that we share the same moral values. We share a sense of what is the right thing to do in different situations
  • gh-trust societies have what Fukuyama calls spontaneous sociability. People are able to organize more quickly, initiate action, and sacrifice for the common good.
  • When you look at research on social trust, you find all sorts of virtuous feedback loops. Trust produces good outcomes, which then produce more trust. In high-trust societies, corruption is lower and entrepreneurship is catalyzed.
  • Higher-trust nations have lower economic inequality, because people feel connected to each other and are willing to support a more generous welfare state.
  • People in high-trust societies are more civically engaged. Nations that score high in social trust—like the Netherlands, Sweden, China, and Australia—have rapidly growing or developed economies.
  • Renewal is hard to imagine. Destruction is everywhere, and construction difficult to see.
  • As the ethicist Sissela Bok once put it, “Whatever matters to human beings, trust is the atmosphere in which it thrives.”
  • During most of the 20th century, through depression and wars, Americans expressed high faith in their institutions
  • In 1964, for example, 77 percent of Americans said they trusted the federal government to do the right thing most or all of the time.
  • By 1994, only one in five Americans said they trusted government to do the right thing.
  • Then came the Iraq War and the financial crisis and the election of Donald Trump. Institutional trust levels remained pathetically low. What changed was the rise of a large group of people who were actively and poi
  • sonously alienated—who were not only distrustful but explosively distrustful. Explosive distrust is not just an absence of trust or a sense of detached alienation—it is an aggressive animosity and an urge to destroy. Explosive distrust is the belief that those who disagree with you are not just wrong but illegitimate
  • In 1997, 64 percent of Americans had a great or good deal of trust in the political competence of their fellow citizens; today only a third of Americans feel that way.
  • In most societies, interpersonal trust is stable over the decades. But for some—like Denmark, where about 75 percent say the people around them are trustworthy, and the Netherlands, where two-thirds say so—the numbers have actually risen.
  • In America, interpersonal trust is in catastrophic decline. In 2014, according to the General Social Survey conducted by NORC at the University of Chicago, only 30.3 percent of Americans agreed that “most people can be trusted,”
  • Today, a majority of Americans say they don’t trust other people when they first meet them.
  • There’s evidence to suggest that marital infidelity, academic cheating, and animal cruelty are all on the rise in America, but it’s hard to directly measure the overall moral condition of society—how honest people are, and how faithful.
  • Trust is the ratio between the number of people who betray you and the number of people who remain faithful to you. It’s not clear that there is more betrayal in America than there used to be—but there are certainly fewer faithful supports around people than there used to be.
  • Hundreds of books and studies on declining social capital and collapsing family structure demonstrate this. In the age of disappointment, people are less likely to be surrounded by faithful networks of people they can trust.
  • Black Americans have high trust in other Black Americans; it’s the wider society they don’t trust, for good and obvious reasons
  • As Vallier puts it, trust levels are a reflection of the moral condition of a nation at any given time.
  • high national trust is a collective moral achievement.
  • High national distrust is a sign that people have earned the right to be suspicious. Trust isn’t a virtue—it’s a measure of other people’s virtue.
  • Unsurprisingly, the groups with the lowest social trust in America are among the most marginalized.
  • Black Americans have been one of the most ill-treated groups in American history; their distrust is earned distrust
  • In 2018, 37.3 percent of white Americans felt that most people can be trusted, according to the General Social Survey, but only 15.3 percent of Black Americans felt the same.
  • People become trusting when the world around them is trustworthy. When they are surrounded by people who live up to their commitments. When they experience their country as a fair place.
  • In 2002, 43 percent of Black Americans were very or somewhat satisfied with the way Black people are treated in the U.S. By 2018, only 18 percent felt that way, according to Gallup.
  • The second disenfranchised low-trust group includes the lower-middle class and the working poor.
  • this group makes up about 40 percent of the country.
  • “They are driven by the insecurity of their place in society and in the economy,” he says. They are distrustful of technology and are much more likely to buy into conspiracy theories. “They’re often convinced by stories that someone is trying to trick them, that the world is against them,”
  • the third marginalized group that scores extremely high on social distrust: young adults. These are people who grew up in the age of disappointment. It’s the only world they know.
  • In 2012, 40 percent of Baby Boomers believed that most people can be trusted, as did 31 percent of members of Generation X. In contrast, only 19 percent of Millennials said most people can be trusted
  • Seventy-three percent of adults under 30 believe that “most of the time, people just look out for themselves,” according to a Pew survey from 2018. Seventy-one percent of those young adults say that most people “would try to take advantage of you if they got a chance.
  • A mere 10 percent of Gen Zers trust politicians to do the right thing.
  • Only 35 percent of young people, versus 67 percent of old people, believe that Americans respect the rights of people who are not like them.
  • Fewer than a third of Millennials say America is the greatest country in the world, compared to 64 percent of members of the Silent Generation.
  • “values and behavior are shaped by the degree to which survival is secure.” In the age of disappointment, our sense of safety went away
  • Some of this is physical insecurity: school shootings, terrorist attacks, police brutality, and overprotective parenting at home
  • the true insecurity is financial, social, and emotional.
  • By the time the Baby Boomers hit a median age of 35, their generation owned 21 percent of the nation’s wealth
  • First, financial insecurity
  • As of last year, Millennials—who will hit an average age of 35 in three years—owned just 3.2 percent of the nation’s wealth.
  • Next, emotional insecurity:
  • fewer children growing up in married two-parent households, more single-parent households, more depression, and higher suicide rates.
  • Then, identity insecurity.
  • All the traits that were once assigned to you by your community, you must now determine on your own: your identity, your morality, your gender, your vocation, your purpose, and the place of your belonging. Self-creation becomes a major anxiety-inducing act of young adulthood.
  • liquid modernity
  • Finally, social insecurity.
  • n the age of social media our “sociometers”—the antennae we use to measure how other people are seeing us—are up and on high alert all the time. Am I liked? Am I affirmed?
  • Danger is ever present. “For many people, it is impossible to think without simultaneously thinking about what other people would think about what you’re thinking,” the educator Fredrik deBoer has written. “This is exhausting and deeply unsatisfying. As long as your self-conception is tied up in your perception of other people’s conception of you, you will never be free to occupy a personality with confidence; you’re always at the mercy of the next person’s dim opinion of you and your whole deal.”
  • In this world, nothing seems safe; everything feels like chaos.
  • Distrust sows distrust. It produces the spiritual state that Emile Durkheim called anomie, a feeling of being disconnected from society, a feeling that the whole game is illegitimate, that you are invisible and not valued, a feeling that the only person you can really trust is yourself.
  • People plagued by distrust can start to see threats that aren’t there; they become risk averse
  • Americans take fewer risks and are much less entrepreneurial than they used to be. In 2014, the rate of business start-ups hit a nearly 40-year low. Since the early 1970s, the rate at which people move across state lines each year has dropped by 56 percent
  • People lose faith in experts. They lose faith in truth, in the flow of information that is the basis of modern society. “A world of truth is a world of trust, and vice versa,”
  • In periods of distrust, you get surges of populism; populism is the ideology of those who feel betrayed
  • People are drawn to leaders who use the language of menace and threat, who tell group-versus-group power narratives. You also get a lot more political extremism. People seek closed, rigid ideological systems that give them a sense of security.
  • fanaticism is a response to existential anxiety. When people feel naked and alone, they revert to tribe. Their radius of trust shrinks, and they only trust their own kind.
  • When many Americans see Trump’s distrust, they see a man who looks at the world as they do.
  • By February 2020, America was a land mired in distrust. Then the plague arrived.
  • From the start, the pandemic has hit the American mind with sledgehammer force. Anxiety and depression have spiked. In April, Gallup recorded a record drop in self-reported well-being, as the share of Americans who said they were thriving fell to the same low point as during the Great Recession
  • These kinds of drops tend to produce social upheavals. A similar drop was seen in Tunisian well-being just before the street protests that led to the Arab Spring.
  • The emotional crisis seems to have hit low-trust groups the hardest
  • “low trusters” were more nervous during the early months of the pandemic, more likely to have trouble sleeping, more likely to feel depressed, less likely to say the public authorities were responding well to the pandemic
  • Eighty-one percent of Americans under 30 reported feeling anxious, depressed, lonely, or hopeless at least one day in the previous week, compared to 48 percent of adults 60 and over.
  • Americans looked to their governing institutions to keep them safe. And nearly every one of their institutions betrayed them
  • The president downplayed the crisis, and his administration was a daily disaster area
  • The Centers for Disease Control and Prevention produced faulty tests, failed to provide up-to-date data on infections and deaths, and didn’t provide a trustworthy voice for a scared public.
  • The Food and Drug Administration wouldn’t allow private labs to produce their own tests without a lengthy approval process.
  • In nations that ranked high on the World Values Survey measure of interpersonal trust—like China, Australia, and most of the Nordic states—leaders were able to mobilize quickly, come up with a plan, and count on citizens to comply with the new rules.
  • In low-trust nations—like Mexico, Spain, and Brazil—there was less planning, less compliance, less collective action, and more death.
  • Countries that fell somewhere in the middle—including the U.S., Germany, and Japan—had a mixed record depending on the quality of their leadership.
  • South Korea, where more than 65 percent of people say they trust government when it comes to health care, was able to build a successful test-and-trace regime. In America, where only 31 percent of Republicans and 44 percent of Democrats say the government should be able to use cellphone data to track compliance with experts’ coronavirus social-contact guidelines, such a system was never really implemented.
  • For decades, researchers have been warning about institutional decay. Institutions get caught up in one of those negative feedback loops that are so common in a world of mistrust. They become ineffective and lose legitimacy. People who lose faith in them tend not to fund them. Talented people don’t go to work for them. They become more ineffective still.
  • On the right, this anti-institutional bias has manifested itself as hatred of government; an unwillingness to defer to expertise, authority, and basic science; and a reluctance to fund the civic infrastructure of society, such as a decent public health system
  • On the left, distrust of institutional authority has manifested as a series of checks on power that have given many small actors the power to stop common plans, producing what Fukuyama calls a vetocracy
  • In 2020, American institutions groaned and sputtered. Academics wrote up plan after plan and lobbed them onto the internet. Few of them went anywhere. America had lost the ability to build new civic structures to respond to ongoing crises like climate change, opioid addiction, and pandemics, or to reform existing ones.
  • In a lower-trust era like today, Levin told me, “there is a greater instinct to say, ‘They’re failing us.’ We see ourselves as outsiders to the systems—an outsider mentality that’s hard to get out of.”
  • Americans haven’t just lost faith in institutions; they’ve come to loathe them, even to think that they are evil
  • 55 percent of Americans believe that the coronavirus that causes COVID-19 was created in a lab and 59 percent believe that the U.S. government is concealing the true number of deaths
  • Half of all Fox News viewers believe that Bill Gates is plotting a mass-vaccination campaign so he can track people.
  • This spring, nearly a third of Americans were convinced that it was probably or definitely true that a vaccine existed but was being withheld by the government.
  • institutions like the law, the government, the police, and even the family don’t merely serve social functions, Levin said; they form the individuals who work and live within them. The institutions provide rules to live by, standards of excellence to live up to, social roles to fulfill.
  • By 2020, people had stopped seeing institutions as places they entered to be morally formed,
  • Instead, they see institutions as stages on which they can perform, can display their splendid selves.
  • People run for Congress not so they can legislate, but so they can get on TV. People work in companies so they can build their personal brand.
  • The result is a world in which institutions not only fail to serve their social function and keep us safe, they also fail to form trustworthy people. The rot in our structures spreads to a rot in ourselves.
  • The Failure of Society
  • The coronavirus has confronted America with a social dilemma. A social dilemma, the University of Pennsylvania scholar Cristina Bicchieri notes, is “a situation in which each group member gets a higher outcome if she pursues her individual self-interest, but everyone in the group is better off if all group members further the common interest.”
  • Social distancing is a social dilemma. Many low-risk individuals have been asked to endure some large pain (unemployment, bankruptcy) and some small inconvenience (mask wearing) for the sake of the common good. If they could make and keep this moral commitment to each other in the short term, the curve would be crushed, and in the long run we’d all be better off. It is the ultimate test of American trustworthiness.
  • While pretending to be rigorous, people relaxed and started going out. It was like watching somebody gradually give up on a diet. There wasn’t a big moment of capitulation, just an extra chocolate bar here, a bagel there, a scoop of ice cream before bed
  • in reality this was a mass moral failure of Republicans and Democrats and independents alike. This was a failure of social solidarity, a failure to look out for each other.
  • Alexis de Tocqueville discussed a concept called the social body. Americans were clearly individualistic, he observed, but they shared common ideas and common values, and could, when needed, produce common action. They could form a social body.
  • Over time, those common values eroded, and were replaced by a value system that put personal freedom above every other value
  • When Americans were confronted with the extremely hard task of locking down for months without any of the collective resources that would have made it easier—habits of deference to group needs; a dense network of community bonds to help hold each other accountable; a history of trust that if you do the right thing, others will too; preexisting patterns of cooperation; a sense of shame if you deviate from the group—they couldn’t do it. America failed.
  • The Crack-up
  • This wasn’t just a political and social crisis, it was also an emotional trauma.
  • The week before George Floyd was killed, the National Center for Health Statistics released data showing that a third of all Americans were showing signs of clinical anxiety or depression. By early June, after Floyd’s death, the percentage of Black Americans showing clinical signs of depression and anxiety disorders had jumped from 36 to 41 percent
  • By late June, American national pride was lower than at any time since Gallup started measuring, in 2001
  • In another poll, 71 percent of Americans said they were angry about the state of the country, and just 17 percent said they were proud.
  • By late June, it was clear that America was enduring a full-bore crisis of legitimacy, an epidemic of alienation, and a loss of faith in the existing order.
  • The most alienated, anarchic actors in society—antifa, the Proud Boys, QAnon—seemed to be driving events. The distrust doom loop was now at hand.
  • The Age of Precarity
  • Cultures are collective responses to common problems. But when reality changes, culture takes a few years, and a moral convulsion, to completely shake off the old norms and values.
  • The culture that is emerging, and which will dominate American life over the next decades, is a response to a prevailing sense of threat.
  • This new culture values security over liberation, equality over freedom, the collective over the individual.
  • From risk to security.
  • we’ve entered an age of precarity in which every political or social movement has an opportunity pole and a risk pole. In the opportunity mentality, risk is embraced because of the upside possibilities. In the risk mindset, security is embraced because people need protection from downside dangers
  • In this period of convulsion, almost every party and movement has moved from its opportunity pole to its risk pole.
  • From achievement to equality
  • In the new culture we are entering, that meritocratic system looks more and more like a ruthless sorting system that excludes the vast majority of people, rendering their life precarious and second class, while pushing the “winners” into a relentless go-go lifestyle that leaves them exhausted and unhappy
  • Equality becomes the great social and political goal. Any disparity—racial, economic, meritocratic—comes to seem hateful.
  • From self to society
  • If we’ve lived through an age of the isolated self, people in the emerging culture see embedded selves. Socialists see individuals embedded in their class group. Right-wing populists see individuals as embedded pieces of a national identity group. Left-wing critical theorists see individuals embedded in their racial, ethnic, gender, or sexual-orientation identity group.
  • The cultural mantra shifts from “Don’t label me!” to “My label is who I am.”
  • From global to local
  • When there is massive distrust of central institutions, people shift power to local institutions, where trust is higher. Power flows away from Washington to cities and states.
  • From liberalism to activism
  • enlightenment liberalism, which was a long effort to reduce the role of passions in politics and increase the role of reason. Politics was seen as a competition between partial truths.
  • Liberalism is ill-suited for an age of precarity. It demands that we live with a lot of ambiguity, which is hard when the atmosphere already feels unsafe. Furthermore, it is thin. It offers an open-ended process of discovery when what people hunger for is justice and moral certainty.
  • liberalism’s niceties come to seem like a cover that oppressors use to mask and maintain their systems of oppression. Public life isn’t an exchange of ideas; it’s a conflict of groups engaged in a vicious death struggle
  • The cultural shifts we are witnessing offer more safety to the individual at the cost of clannishness within society. People are embedded more in communities and groups, but in an age of distrust, groups look at each other warily, angrily, viciously.
  • The shift toward a more communal viewpoint is potentially a wonderful thing, but it leads to cold civil war unless there is a renaissance of trust. There’s no avoiding the core problem. Unless we can find a way to rebuild trust, the nation does not function.
  • How to Rebuild Trust
  • Historians have more to offer, because they can cite examples of nations that have gone from pervasive social decay to relative social health. The two most germane to our situation are Great Britain between 1830 and 1848 and the United States between 1895 and 1914.
  • In both periods, a highly individualistic and amoral culture was replaced by a more communal and moralistic one.
  • But there was a crucial difference between those eras and our own, at least so far. In both cases, moral convulsion led to frenetic action.
  • As Robert Putnam and Shaylyn Romney Garrett note in their forthcoming book, The Upswing, the American civic revival that began in the 1870s produced a stunning array of new organizations: the United Way, the NAACP, the Boy Scouts, the Forest Service, the Federal Reserve System, 4-H clubs, the Sierra Club, the settlement-house movement, the compulsory-education movement, the American Bar Association, the American Legion, the ACLU, and on and on
  • After the civic revivals, both nations witnessed frenetic political reform. During the 1830s, Britain passed the Reform Act, which widened the franchise; the Factory Act, which regulated workplaces; and the Municipal Corporations Act, which reformed local government.
  • The Progressive Era in America saw an avalanche of reform: civil-service reform; food and drug regulation; the Sherman Act, which battled the trusts; the secret ballot; and so on. Civic life became profoundly moralistic, but political life became profoundly pragmatic and anti-ideological. Pragmatism and social-science expertise were valued.
  • Can America in the 2020s turn itself around the way the America of the 1890s, or the Britain of the 1830s, did? Can we create a civic renaissance and a legislative revolution?
  • I see no scenario in which we return to being the nation we were in 1965, with a cohesive national ethos, a clear national establishment, trusted central institutions, and a pop-culture landscape in which people overwhelmingly watch the same shows and talked about the same things.
  • The age of distrust has smashed the converging America and the converging globe—that great dream of the 1990s—and has left us with the reality that our only plausible future is decentralized pluralism.
  • The key to making decentralized pluralism work still comes down to one question: Do we have the energy to build new organizations that address our problems, the way the Brits did in the 1830s and Americans did in the 1890s?
  • social trust is built within organizations in which people are bound together to do joint work, in which they struggle together long enough for trust to gradually develop, in which they develop shared understandings of what is expected of each other, in which they are enmeshed in rules and standards of behavior that keep them trustworthy when their commitments might otherwise falter.
  • Over the past 60 years, we have given up on the Rotary Club and the American Legion and other civic organizations and replaced them with Twitter and Instagram. Ultimately, our ability to rebuild trust depends on our ability to join and stick to organizations.
  • Whether we emerge from this transition stronger depends on our ability, from the bottom up and the top down, to build organizations targeted at our many problems. If history is any guide, this will be the work not of months, but of one or two decades.
  • For centuries, America was the greatest success story on earth, a nation of steady progress, dazzling achievement, and growing international power. That story threatens to end on our watch, crushed by the collapse of our institutions and the implosion of social trust
  • But trust can be rebuilt through the accumulation of small heroic acts—by the outrageous gesture of extending vulnerability in a world that is mean, by proffering faith in other people when that faith may not be returned. Sometimes trust blooms when somebody holds you against all logic, when you expected to be dropped.
  • By David Brooks
Javier E

The Great Divorce - NYTimes.com - 1 views

  • His story starts in 1963. There was a gap between rich and poor then, but it wasn’t that big.
  • Since then,
  • America has polarized. The word “class” doesn’t even capture the divide Murray describes. You might say the country has bifurcated into different social tribes, with a tenuous common culture linking them.
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  • Roughly 7 percent of the white kids in the upper tribe are born out of wedlock, compared with roughly 45 percent of the kids in the lower tribe. In the upper tribe, nearly every man aged 30 to 49 is in the labor force. In the lower tribe, men in their prime working ages have been steadily dropping out of the labor force, in good times and bad. People in the lower tribe are much less likely to get married, less likely to go to church, less likely to be active in their communities, more likely to watch TV excessively, more likely to be obese.
  •  
    "The truth is, members of the upper tribe have made themselves phenomenally productive. They may mimic bohemian manners, but they have returned to 1950s traditionalist values and practices. They have low divorce rates, arduous work ethics and strict codes to regulate their kids. Members of the lower tribe work hard and dream big, but are more removed from traditional bourgeois norms. They live in disorganized, postmodern neighborhoods in which it is much harder to be self-disciplined and productive" (Haner). A gripping fresh look on the classes of today. I enjoyed reading about this spin on the topic of cultural corruption on behalf of the socially elite. I also liked how Haner brought up the time-old conflicting views of Democrats and Republicans. Haner is able to easily criticize both sides- unlike most of us, as we tend to automatically focus our energy on the recycled ideas of past party members.
Javier E

What Cookies and Meth Have in Common - The New York Times - 0 views

  • Why would anyone continue to use recreational drugs despite the medical consequences and social condemnation? What makes someone eat more and more in the face of poor health?
  • modern humans have designed the perfect environment to create both of these addictions.
  • the myth has persisted that addiction is either a moral failure or a hard-wired behavior — that addicts are either completely in command or literally out of their minds
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  • Food, like drugs, stimulates the brain’s reward circuit. Chronic exposure to high-fat and sugary foods is similarly linked with lower D2 levels, and people with lower D2 levels are also more likely to crave such foods. It’s a vicious cycle in which more exposure begets more craving.
  • Neuroscientists have found that food and recreational drugs have a common target in the “reward circuit” of the brain, and that the brains of humans and other animals who are stressed undergo biological changes that can make them more susceptible to addiction.
  • In a 2010 study, Diana Martinez and colleagues at Columbia scanned the brains of a group of healthy controls and found that lower social status and a lower degree of perceived social support — both presumed to be proxies for stress — were correlated with fewer dopamine receptors, called D2s, in the brain’s reward circuit
  • The reward circuit evolved to help us survive by driving us to locate food or sex in our environment
  • Today, the more D2 receptors you have, the higher your natural level of stimulation and pleasure — and the less likely you are to seek out recreational drugs or comfort food to compensate
  • people addicted to cocaine, heroin, alcohol and methamphetamines experience a significant reduction in their D2 receptor levels that persists long after drug use has stopped. These people are far less sensitive to rewards, are less motivated and may find the world dull, once again making them prone to seek a chemical means to enhance their everyday life.
  • Drug exposure also contributes to a loss of self-control. Dr. Volkow found that low D2 was linked with lower activity in the prefrontal cortex, which would impair one’s ability to think critically and exercise restraint
  • Now we have a body of research that makes the connection between stress and addiction definitive. More surprising, it shows that we can change the path to addiction by changing our environment.
  • At this point you may be wondering: What controls the reward circuit in the first place? Some of it is genetic. We know that certain gene variations elevate the risk of addiction to various drugs. But studies of monkeys suggest that our environment can trump genetics and rewire the brain.
  • simply by changing the environment, you can increase or decrease the likelihood of an animal becoming a drug addict.
  • The same appears true for humans. Even people who are not hard-wired for addiction can be made dependent on drugs if they are stressed
  • Is it any wonder, then, that the economically frightening situation that so many Americans experience could make them into addicts? You will literally have a different brain depending on your ZIP code, social circumstances and stress level.
  • In 1990, no state in our country had an adult obesity rate above 15 percent; by 2015, 44 states had obesity rates of 25 percent or higher. What changed?
  • What happened is that cheap, calorie-dense foods that are highly rewarding to your brain are now ubiquitous.
  • Nothing in our evolution has prepared us for the double whammy of caloric modern food and potent recreational drugs. Their power to activate our reward circuit, rewire our brain and nudge us in the direction of compulsive consumption is unprecedented.
  • The processed food industry has transformed our food into a quasi-drug, while the drug industry has synthesized ever more powerful drugs that have been diverted for recreational use.
  • Fortunately, our brains are remarkably plastic and sensitive to experience. Although it’s far easier said than done, just limiting exposure to high-calorie foods and recreational drugs would naturally reset our brains to find pleasure in healthier foods and life without drugs.
Javier E

Opinion | With Covid, Is It Really Possible to Say We Went Too Far? - The New York Times - 0 views

  • In 2020, many Americans told themselves that all it would take to halt the pandemic was replacing the president and hitting the “science button.”
  • In 2023, it looks like we’re telling ourselves the opposite: that if we were given the chance to run the pandemic again, it would have been better just to hit “abort” and give up.
  • you can see it in Bethany McLean and Joe Nocera’s book “The Big Fail: What the Pandemic Revealed About Who America Protects and Who It Leaves Behind,” excerpted last month in New York magazine under the headline “Covid Lockdowns Were a Giant Experiment. It Was a Failure.”
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  • we can’t simply replace one simplistic narrative, about the super power of mitigation policy, for another, focused only on the burdens it imposed and not at all on the costs of doing much less — or nothing at all.
  • Let’s start with the title. What is the big failure, as you see it?
  • McLean: I think it gets at things that had happened in America even before the pandemic hit. And among those things were, I think, a failure to recognize the limits of capitalism, a failure of government to set the right rules for it, particularly when it comes to our health care system; a focus on profits that may have led to an increase in the bottom line but created fragility in ways people didn’t understand; and then our growing polarization that made us incapable of talking to each other
  • How big is the failure? When I look at The Economist’s excess mortality data, I see the U.S. had the 53rd-worst outcome in the world — worse than all of Western Europe, but better than all of Eastern Europe.
  • McLean: I think one way to quantify it is to take all those numbers and then put them in the context of our spending on health care. Given the amount we spend on health care relative to other countries, the scale of the failure becomes more apparent.
  • o me, the most glaring example is the schools. They were closed without people thinking through the potential consequences of closing down public schools, especially for disadvantaged kids.
  • to compound it, in my view, public health never made the distinction that needed to be made between the vulnerabilities of somebody 70 years old and the vulnerabilities of somebody 10 years old.
  • In the beginning of the book you write, in what almost feels like a thesis statement for the book: “A central tenet of this book is that we could not have done better, and pretending differently is a dangerous fiction, one that prevents us from taking a much needed look in the mirror.”
  • This claim, that the U.S. could not have done any better, runs against your other claim, that what we observed was an American failure. It is also a pretty extreme claim, I think, and I wanted to press you on it in part because it is, in my view, undermined by quite a lot of the work you do in the book itself.
  • Would the U.S. not have done better if it had recognized earlier that the disease spread through the air rather than in droplets? Would it not have done better if it hadn’t bungled the rollout of a Covid test in the early months?
  • McLean: Everything that you mentioned — the point of the book is that those were set by the time the pandemic hit.
  • in retrospect, what we were doing was to try to delay as much spread as we could until people got vaccinated. All the things that we did in 2020 were functionally serving or trying to serve that purpose. Now, given that, how can you say that none of that work saved lives?
  • McLean: I think that the test failure was baked into the way that the C.D.C. had come to operate
  • But the big question I really want to ask is this one: According to the C.D.C., we’ve had almost 1.2 million deaths from Covid. Excess mortality is nearly 1.4 million. Is it really your contention that there was nothing we might’ve done that brought that total down to 1.1 million, for instance, or even 900,000?
  • McLean: It’s very — you’re right. If you went through each and every thing and had a crystal ball and you could say, this could have been done, this could have been moved up by a month, we could have gotten PPE …
  • When I came to that sentence, I thought of it in terms of human behavior: What will humans put up with? What will humans stand for? How do Americans act? And you’ve written about Sweden being sort of average, and you’ve written about China and the Chinese example. They lock people up for two years and suddenly the society just revolts. They will not take it anymore. They can’t stand it. And as a result, a million and a half people die in a month and a half.
  • Well, I would tell that story very differently. For me, the problem is that when China opened up, they had fully vaccinated just under two-thirds of their population over 80. So to me, it’s not a failure of lockdowns. It’s a failure of vaccinations. If the Chinese had only achieved the same elderly vaccination rate as we achieved — which by global standards was pretty poor — that death toll when they opened up would have been dramatically lower.
  • What do you mean by “lockdown,” though? You use the word throughout the book and suggest that China was the playbook for all countries. But you also acknowledge that what China did is not anything like what America did.
  • Disparities in health care access — is it a dangerous fiction to think we might address that? You guys are big champions of Operation Warp Speed — would it not have been better if those vaccines had been rolled out to the public in nine months, rather than 12
  • . But this isn’t “lockdown” like there were lockdowns in China or even Peru. It’s how we tried to make it safer to go out and interact during a pandemic that ultimately killed a million Americans.
  • McLean: I think that you’re absolutely right to focus on the definition of what a lockdown is and how we implemented them here in this country. And I think part of the problem is that we implemented them in a way that allowed people who were well off and could work from home via Zoom to be able to maintain very much of their lives while other people couldn’t
  • And I think it depends on who you were, whether you would define this as a lockdown or not. If you were a small business who saw your small business closed because of this, you’re going to define it as a lockdown.
  • n the book you’re pretty definitive. You write, “maybe the social and economic disasters that lockdowns created would have been worth it if they had saved lives, but they hadn’t.” How can you say that so flatly?
  • I think there are still open questions about what worked and how much. But the way that I think about all of this is that the most important intervention that anybody did anywhere in the world was vaccination. And the thing that determined outcomes most was whether your first exposure came before or after vaccination.
  • Here, the shelter-in-place guidelines lasted, on average, five to seven weeks. Thirty nine of the 40 states that had issued them lifted them by the end of June, three months in. By the summer, according to Google mobility data, retail and grocery activity was down about 10 percent. By the fall, grocery activity was only down about 5 percent across the country
  • Nocera: Well, on some level, I feel like you’re trying to have it both ways. On the one hand, you’re saying that lockdowns saved lives. On the other hand, you said they weren’t real lockdowns because everybody was out and about.
  • I don’t think that’s having it both ways. I’m trying to think about these issues on a spectrum rather than in binaries. I think we did interrupt our lives — everybody knows that. And I think they did have an effect on spread, and that limiting spread had an effect by delaying infections until after vaccination.
  • Nocera: Most of the studies that say lockdowns didn’t work are really less about Covid deaths than about excess mortality deaths. I wound up being persuaded that the people who could not get to the hospital, because they were all working, because all the doctors were working on Covid and the surgical rooms were shut down, the people who caught some disease that was not Covid and died as a result — I wound up being persuaded about that.
  • We’re in a pandemic. People are going to die. And then the question becomes, can we protect the most vulnerable? And the answer is, we didn’t protect the most vulnerable. Nursing homes were a complete disaster.
  • There was a lot of worry early on about delayed health care, and about cancer in particular — missed screenings, missed treatments. But in 2019, we had an estimated 599,600 Americans die of cancer. In 2020, it was 602,000. In 2021, it was 608,000. In 2022, it was 609,000.
  • Nocera: See, it went up!But by a couple of thousand people, in years in which hundreds of thousands of Americans were dying of Covid.
  • Nocera: I think you can’t dispute the excess mortality numbers.I’m not. But in nearly every country in the world the excess mortality curves track so precisely with Covid waves that it doesn’t make sense to talk about a massive public health problem beyond Covid. And when you add all of these numbers up, they are nowhere near the size of the footfall of Covid. How can you look back on this and say the costs were too high?
  • Nocera: I think the costs were too high because you had school costs, you had economic costs, you had social costs, and you had death.
  • McLean: I think you’re raising a really good point. We’re making an argument for a policy that might not have been doable given the preconditions that had been set. I’m arguing that there were these things that had been put in place in our country for decades leading up to the pandemic that made it really difficult for us to plant in an effective way, from the outsourcing of our PPE to the distrust in our health care system that had been created by people’s lack of access to health care with the disparities in our hospital system.
  • How would you have liked to see things handled differently?Nocera: Well, the great example of doing it right is San Fran
  • I find the San Francisco experience impressive, too. But it was also a city that engaged in quite protracted and aggressive pandemic restrictions, well beyond just protecting the elderly and vulnerable.
  • McLean: But are we going to go for stay-at-home orders plus protecting vulnerable communities like San Francisco did? Or simply letting everybody live their lives, but with a real focus on the communities and places like nursing homes that were going to be affected? My argument is that we probably would’ve been better off really focusing on protecting those communities which were likely to be the most severely affected.
  • I agree that the public certainly didn’t appreciate the age skew, and our policy didn’t reflect it either. But I also wonder what it would mean to better protect the vulnerable than we did. We had testing shortages at first. Then we had resistance to rapid testing. We had staff shortages in nursing homes.
  • Nocera: This gets exactly to one of our core points. We had spent 30 years allowing nursing homes to be owned by private equity firms that cut the staff, that sold the land underneath and added all this debt on
  • I hear you saying both that we could have done a much better job of protecting these people and that the systems we inherited at the outset of the pandemic would’ve made those measures very difficult, if not impossible, to implement.
  • But actually, I want to stop you there, because I actually think that that data tells the opposite story.
  • And then I’m trying to say at the same time, but couldn’t we have done something to have protected people despite all of that?
  • I want to talk about the number of lives at stake. In the book, you write about the work of British epidemiologist Neil Ferguson. In the winter of 2020, he says that in the absence of mitigation measures and vaccination, 80 percent of the country is going to get infected and 2.2 million Americans are going to die. He says that 80 percent of the U.K. would get infected, and 510,000 Brits would die — again, in the abs
  • In the end, by the time we got to 80 percent of the country infected, we had more than a million Americans die. We had more than 200,000 Brits die. And in each case most of the infections happened after vaccination, which suggests that if those infections had all happened in a world without vaccines, we almost certainly would have surpassed two million deaths in the U.S. and almost certainly would’ve hit 500,000 deaths in the U.K.
  • In the book, you write about this estimate, and you endorse Jay Bhattacharya’s criticism of Ferguson’s model. You write, “Bhattacharya got his first taste of the blowback reserved for scientists who strayed from the establishment position early. He co-wrote an article for The Wall Street Journal questioning the validity of the scary 2 to 4 percent fatality rate that the early models like Neil Ferguson’s were estimating and that were causing governments to panic. He believed, correctly as it turns out, that the true fatality rate was much lower.”
  • Nocera: I know where you’re going with this, because I read your story about the nine pandemic narratives we’re getting wrong. In there, you said that Bhattacharya estimated the fatality rate at 0.01 percent. But if you actually read The Wall Street Journal article, what he’s really saying is I think it’s much lower. I’ve looked at two or three different possibilities, and we really need some major testing to figure out what it actually is, because I think 2 percent to 4 percent is really high.
  • He says, “if our surmise of 6 million cases is accurate, that’s a mortality rate of 0.01%. That is ⅒th the flu mortality rate of 0.1%.” An I.F.R. of 0.01 percent, spread fully through the American population, yields a total American death toll of 33,000 people. We have had 1.2 million deaths. And you are adjudicating this dispute, in 2023, and saying that Neil was wrong and Jay was right.
  • hird, in the Imperial College report — the one projecting two million American deaths — Ferguson gives an I.F.R. estimate of 0.9 percent.
  • Bhattacharya’s? Yes, there is some uncertainty around the estimate he offers. But the estimate he does offer — 0.01 percent — is one hundred times lower than the I.F.R. you yourselves cite as the proper benchmark.
  • Nocera: In The Wall Street Journal he does not say it’s 0.01. He says, we need to test to find out what it is, but it is definitely lower than 2 to 4 percent.
  • Well, first of all, the 2 percent to 4 percent fatality rate is not from Neil Ferguson. It’s from the W.H.O.
  • But I think that fundamentally, at the outset of the pandemic, the most important question orienting all of our thinking was, how bad could this get? And it turns out that almost all of the people who were saying back then that we shouldn’t do much to intervene were extremely wrong about how bad it would be
  • The argument then was, more or less, “We don’t need to do anything too drastic, because it’s not going to be that big a deal.” Now, in 2023, it’s the opposite argument: “We shouldn’t have bothered with restrictions, because they didn’t have an impact; we would have had this same death toll anyway.” But the death toll turned out to be enormous.
  • Now, if we had supplied all these skeptics with the actual numbers at the outset of the pandemic, what kind of audience would they have had? If instead of making the argument against universal mitigation efforts on the basis of a death toll of 40,000 they had made the argument on the basis of a death toll of more than a million, do you think the country would’ve said, they’re right, we’re doing too much, let’s back off?
  • McLean: I think that if you had gone to the American people and said, this many people are going to die, that would’ve been one thing. But if you had gone to the American people and said, this many people are going to die and a large percentage of them are going to be over 80, you might’ve gotten a different answer.
  • I’m not arguing we shouldn’t have been trying to get a clearer sense of the true fatality rate, or that we shouldn’t have been clearer about the age skew. But Bhattacharya was also offering an estimate of fatality rate that turned out to be off by a factor of a hundred from the I.F.R. that you yourselves cite as correct. And then you say that Bhattacharya was right and Ferguson was wrong.
  • And you, too, Joe, you wrote an article in April expressing sympathy for Covid skeptics and you said ——Nocera: This April?No, 2020.Nocera: Oh, oh. That’s the one where I praised Alex Berenson.You also cited some Amherst modeling which said that we were going to have 67,000 to 120,000 American deaths. We already had, at that point, 60,000. So you were suggesting, in making an argument against pandemic restrictions, that the country as a whole was going to experience between 7,000 and 60,000 additional deaths from that point.
  • when I think about the combination of the economic effects of mitigation policies and just of the pandemic itself and the big fiscal response, I look back and I think the U.S. managed this storm relatively well. How about each of you?
  • in this case, Congress did get it together and did come to the rescue. And I agree that made a ton of difference in the short term, but the long-term effects of the fiscal rescue package were to help create inflation. And once again, inflation hits those at the bottom of the socioeconomic distribution much harder than it does those at the top. So I would argue that some of what we did in the pandemic is papering over these long-term issues.
  • I think as with a lot of the stuff we’ve talked about today, I agree with you about the underlying problems. But if we take for granted for a moment that the pandemic was going to hit us, when it did, under the economic conditions it did, and then think about the more narrow context of whether, given all that, we handled the pandemic well. We returned quickly to prepandemic G.D.P. trends, boosted the wealth of the bottom half of the country, cut child poverty in half, pushed unemployment to historical lows.
  • What sense do you make of the other countries of the world and their various mitigation policies? Putting aside China, there’s New Zealand, Australia, South Korea — these are all places that were much more aggressive than the U.S. and indeed more than Europe. And had much, much better outcomes.
  • Nocera: To be perfectly honest, we didn’t really look, we didn’t really spend a lot of time looking at that.
  • McLean: But one reason that we didn’t is I don’t think it tells us anything. When you look at who Covid killed, then you have to look at what the pre-existing conditions in a country were, what percentage of its people are elderly. How sick are people with pre-existing conditions?
  • I just don’t think there’s a comparison. There’s just too many factors that influence it to be able to say that, to be able to compare America to any other country, you’d have to adjust for all these factors.
  • But you do spend a bit of time in the book talking about Sweden. And though it isn’t precisely like-for-like, one way you can control for some of those factors is grouping countries with their neighbors and other countries with similar profiles. And Sweden’s fatality rate in 2020 was 10 times that of Norway, Finland and Iceland. Five times that of Denmark. In the vaccination era, those gaps have narrowed, but by most metrics Sweden has still done worse, overall, than all of those countries.
  • On the matter of omniscience. Let’s say that we can send you back in time. Let’s put you both in charge of American pandemic response, or at least American communication about the pandemic, in early 2020. What would you want to tell the country? How would you have advised us to respond?
  • McLean: What I would want is honesty and communication. I think we’re in a world that is awash in information and the previous methods of communication — giving a blanket statement to people that may or may not be true, when you know there’s nuance underneath it — simply doesn’t work anymore
  • o I would’ve been much more clear — we think masks might help, we don’t know, but it’s not that big of an ask, let’s do it. We think the early data coming out of Italy shows that these are the people who are really, really at risk from Covid, but it’s not entirely clear yet. Maybe there is spread in schools, but we don’t know. Let’s look at this and keep an open mind and look at the data as it comes in.
Javier E

The Urgent Case for Shrinking the Economy | The New Republic - 0 views

  • A classic example of this dynamic is the advent of the chain saw. A person with a chain saw can cut 10 times as many trees in the same time as a person using older methods. Logging companies did not use this invention, however, to shorten the workweek by 90 percent. They used it to cut 10 times more trees than they otherwise would have. “Lashed by the growth imperative, technology is used not to do the same amount of stuff in less time, but rather to do more stuff in the same amount of time,”
  • The problem, Hickel argues, is explained by the “paradox” first observed by the nineteenth-century economist William Stanley Jevons: In a growth system, gains in efficiency do not translate to higher wages, greater equality, more leisure, or lower emissions; they are plowed right back into the growth cycle
  • Increasing outputs of wind, solar, and other renewables are not leading to a drop in the use of fossil fuels. Instead, renewables and fossil fuels are used to satisfy rising global energy demand. “New fuels aren’t replacing the older ones,” Hickel writes. “They are being added on top of them.”
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  • The economy that Hickel envisions would cease to pursue growth, green or otherwise. Materials and energy will still be consumed, and waste generated, but at much lower levels. All impacts on the natural world will be tethered to the question, “Growth for whom, and to what ends?” In place of an individualistic consumer economy, Hickel’s post-growth economy would direct itself toward the creation of public goods that allow the many to live well—mass transit, health care—rather than to keep a few in luxury.
  • A growing body of research reveals an inverse relationship between “happiness” and growth beyond a certain point.
  • In the rich countries, general contentment peaked in 1950, when GDP and real per capita incomes were fractions of their present size (and inequality near modern historic lows); degrowthers posit that similar happiness levels will be reclaimed on the way back down the economic mountain
  • Hickel describes a post-growth economy defined by stability and equality, and the freedom and leisure possible when the economy is no longer subservient to the god of growth
  • He estimates that the U.S. economy could be scaled down by as much as 65 percent while still improving the lives of its citizens. This includes the metric most often tied to celebrations of endless growth: life expectancy.
  • degrowth will entail a steep reduction across a much wider range of high-energy consumer goods. Keeping a global economy within safe ecological limits is a zero-sum game.
  • When limited resources are directed toward clean energy infrastructure, public health care, and regenerative agriculture, it will still be possible to build and power modern 24-hour hospitals in every city, but not to have Xbox consoles, two-car garages, and giant appliances in every home.
  • would have to redefine it, too.
  • The post-growth economy could not succeed solely by redistributing wealth; it would have to redefine it, too.
  • He argues that short-term growth would have to continue in those countries that have still not achieved the basic levels of sanitation, infrastructure, and education needed for a decent standard of living, to close the gap. Their larger goal, meanwhile, would be to break free from their historical role as a source of natural resources and cheap labor for the north.
  • For degrowth to be just, global, and effective, the sharpest reduction in consumption will have to come from the north, where the greatest damage to the planet is currently being done
  • Ecological economists generally agree that the safe outer limit is eight tons
  • One person in a low-income country has a materials footprint of roughly two tons per year, a measure of total raw materials consumed, including those embodied in imports. In lower-middle–income countries, that number is four tons; in upper-middle–income countries, 12 tons. In the high-income nations of North America, Europe, and Asia, the number leaps to 28
  • The wealthiest 20 percent of the human population is responsible for 90 percent of “overshoot” carbon in the atmosphere (that is, a level of carbon that exceeds the limit needed to keep global temperature rise below 2 degrees Celsius)
  • The planet’s richest one percent has a carbon footprint twice the size of the poorest half of the world’s population combined
  • For the global north, degrowth not only starts at home, it starts with the biggest houses.
  • Less Is More doesn’t end in a poetic appreciation for nature’s majesty, but by teasing out its implications for the political project of preserving a habitable planet. Hickel devotes much of the book to explaining that degrowth must be central to this project, promising not just survival, but real democracy, social abundance, and liberation.
  • Both involve broad social shifts away from private consumption and toward the production of shared public goods.
  • This beautiful coincidence overlaps with policy programs like the Green New Deal in important way
  • In July 1979, shortly after installing a set of solar panels over the West Wing, Jimmy Carter did something peculiar for a peacetime president. He asked Americans to sacrifice: to consume less, take public transit more, value community over material things, and buy bonds to fund domestic energy development, including solar
  • Next to Schumacher’s “Buddhist economics,” Debsian socialism was reformist tinkering. Schumacher didn’t see liberation as a matter of reshuffling the ownership and management structures of the smokestack-powered growth economy. He believed a deeper transformation was needed to maintain a livable planet. This would require new socioecological blueprints “designed for permanence.” As the left and the right battled for control over growth’s levers and spoils, Schumacher pointed out how both had become blind to the rise of growth as its own self-justifying, pan-ideological religion; its patterns of production and consumption, he observed, required “a degree of violence” that did not “fit into the laws of the universe.”
  • They determined that infinite growth was, in fact, impossible on a finite planet. Barring a major course correction, the team projected, growthism would result in an ecological systems breakdown sometime in the middle of the twenty-first century
  • This warning, detailed in the 1972 bestseller The Limits to Growth, has aged better than the scorn heaped on it
  • We are now witnessing what appears to be the beginnings of the collapse predicted nearly 50 years ago
  • In his new book, Less Is More, Jason Hickel, an anthropologist and journalist, attempts to bring a comprehensive critique of growth closer to the center of the conversation, arguing through a sweeping history of capitalism that it’s uncontrolled growth, not its controlled arrest and reversal, that is the preposterous concept.
  • This economic and political revolution was reinforced by a complementary scientific one that displaced the lingering animist cosmology of pre-capitalist Europe. The dualism of Francis Bacon and Descartes held reason to be distinct from and superior to matter.
  • The idea of limitless growth is a relatively recent one. In Less Is More, Hickel traces its origins to the enclosure of the European commons in the sixteenth century
  • Starving refugees were scattered and forced into a new economy defined by neo-feudal servitude and wage labor. Landowners, meanwhile, began amassing great stores of surplus wealth.
  • By the mid-1800s, a new “science” had arisen from these assumptions. Neoclassical economics fully abstracted the economy from the natural world. The economy was geared not toward the creation of a happy and prosperous society, but toward the perpetual growth of wealth as its own end, achieved in an inherently virtuous cycle of converting labor and resources into capital, to be accumulated and reinvested in faster and more productive conversions of labor and resources
  • This ideology subsumed and profaned notions about progress and morality held by the classical economists, until eventually the field even l
  • This process unfolded despite repeated warnings along the way. Classical economists like John Stuart Mill and, to a lesser extent, Adam Smith not only acknowledged the existence of natural limits to growth, but saw economic development as a phase; at some point, they believed, nations would create enough wealth to pursue other definitions of progres
  • the caveats issued by Simon Kuznets, father of the concept adopted in the twentieth century as growth’s universal and signature metric: gross domestic product. Kuznets, Hickel points out, “warned that we should never use GDP as a normal measure of economic progress,” because GDP does not distinguish between productive and destructive behavior
  • Most people encounter the growth debate, if they encounter it at all, through the idea of “green growth.
  • This is a vision for our collective future based on the belief that technological advance will drastically reduce the amount of raw materials needed to sustain growth—a process known as dematerialization—and “decouple” growing GDP from its ecological impacts.
  • boosters of the idea point to the transition by rich countries from manufacturing to service-based economies, as well as efficiency gains in energy and in the use of materials
  • The belief that green growth will save us, also known as “ecomodernism” or “ecopragmatism,” has become a trendy article of faith among elites who acknowledge climate change and the dangers of breaching ecological boundaries
  • n 2017, Barack Obama threw his support behind the idea in an article for Science magazine, maintaining that signs of decoupling in major economies “should put to rest the argument that combatting climate change requires accepting lower growth or a lower standard of living.”
  • The argument that capitalism can grow itself out of the present crisis may be soothing to those who like the world as it is. It also relies on the kind of accounting tricks and rejection of reality
  • By only counting the emissions created within a country that imports most of its cars, washing machines, and computers, you end up pushing the emissions related to their production off the books. When you factor them back in, the picture is much less green. A number of recent studies show no evidence of meaningful decoupling—in energy or materials—even as the world increases its use of renewable energy and finds ways to use some materials more efficiently.
  • Green growth, Hickel concludes, is an ecologically incoherent “fairy tale.”
  • consider what the ecomodernist position asks us to believe. The current system requires annual growth of roughly 3 percent to avoid the shock of recession. This means doubling the size of the economy every 23 years
  • he economy of 2000 must be 20 times larger in the year 2100, and 370 times larger in the year 2200.
  • Hickel is less interested in the macroeconomic details of this future than are growth critics based in economics departments, like Tim Jackson and Kate Raworth, and more focused on the leisure, security, and general human flourish
  • he makes an alluring case that degrowth does not require anything like the “command-and-control fiasco of the Soviet Union, or some back-to-the-caves, hair-shirted disaster of voluntary impoverishment.”
  • Attaining the benefits of the post-growth economy would, however, require what the present consumer society considers “sacrifices.
  • it’s not clear how many of them are ready to give up its superficial pleasures enabled by consumer debt
  • Among nations, there’s also the question of fairness: Wouldn’t it be unjust to impose degrowth across the world, when it’s disproportionately the countries of the global north that have spent centuries burning through the planet’s resources?
  • This output tracks to the one percent’s share of global wealth—a number equal to the GDP of the bottom 169 countries.
  • Even if you accept the argument that inequality would be best addressed by more centuries of trickle-down growth, you keep running up against the simple fact of its impossibility. Even just one more century of growth—which so far has shown no sign of taking a less destructive form—will require multiple earths
  • Hickel is serious about bringing the system critiques of E.F. Schumacher and others out of their traditional cloisters and into the streets, and has sought allies in this effort
  • emphasize what Hickel calls the “beautiful coincidence” of degrowth: that “what we need to do to survive is the same as what we need to do to have better lives.”
  • Both are internationalist in outlook, and see the world through a lens of climate justice as well as climate equilibrium.
  • that is, communicating the many benefits of moving beyond the insecurity and terrors of the current system, and building a new society that is sustainable, stable, democratic, and fundamentally better in every way.
Javier E

Opinion | The Unsettling Truth About Trump's First Great Victory - The New York Times - 0 views

  • The authors combine these questions into a “scale capturing the strength of white identity and found that it was strongly related to Republicans’ support for Donald Trump.”“Strongly related” is an understatement. On a 17-point scale ranking the strength of Republican primary voters’ white identity from lowest to highest, support for Trump grew consistently at each step — from 2 percent at the bottom to 81 percent at the highest level
  • We assess claims that Donald Trump received a particularly large number of votes from individuals with antagonistic attitudes toward racial outgroups
  • however, we show that in 2016 Trump’s largest gains in support, compared to Mitt Romney in 2012
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  • How could these two seemingly contradictory statements both be true?
  • respondents in 2016 and 2020 reported more moderate views, on average, than in previous elections. As a result, Trump improved the most over previous Republicans by capturing the votes of a larger number of people who report racially moderate views
  • the number of people scoring at moderate levels of racial resentment increased. Trump was not as popular among this voting bloc, compared to those with high racial resentment. But because this group is larger, whites with moderate racial resentment scores ended up contributing more net votes to Trump.
  • The point about Trump voters being less racially resentful on average than voters for previous Republican candidates, while likely true, should, I think, be interpreted as a statement about why it’s important to be mindful of over-time changes in groups’ sizes in the population,
  • Trump’s supporters were less xenophobic than prior Republican candidates’, less sexist, had lower animus to minority groups, and lower levels of racial resentment. Far from deplorables, Trump voters were, on average, more tolerant and understanding than voters for prior Republican candidates.
  • The data, Grimmer continued,point to two important and undeniable facts. First, analyses focused on vote choice alone cannot tell us where candidates receive support. We must know the size of groups and who turns out to vote. And we cannot confuse candidates’ rhetoric with the voters who support them, because voters might support the candidate despite the rhetoric, not because of it.
  • Several pieces of research into the 2016 election, including our book, “Identity Crisis,” and this interesting paper by Grimmer, Marble and Tanigawa-Lau, find that people’s vote choices in that election were more strongly related to their views on “identity-inflected issues” than they had been in prior elections. That is why our book argues that these issues are central to how we interpret the outcome in 2016.
  • the Grimmer paper in fact provides a key corrective to the debate over the 2016 election. In an email, Kane pointed to a key section that reads:
  • election-night pundits and even some academics have claimed that Trump’s victory was the result of appealing to white Americans’ racist and xenophobic attitudes. We show this conventional wisdom is (at best) incomplete
  • understanding election outcomes requires not just understanding what contributes to vote choice (e.g., racial group attachments, racial prejudice), but also how many people with that particular attitude turned out to vote and what share of the electorate that group makes up.
  • The Grimmer paper, Engelhardt continued, “encourages us to take a step back and focus on the big picture for understanding elections: where do most votes come from and are these patterns consistent across elections?”
  • Trump, Westwood concluded, “found support from both racists and moderates, but with the pool of racist voters shrinking, it is clear this is not a path to future victory.”
  • Discussion of racial resentment driving support for Trump could miss how folks low in racial resentment were actually critical to the election outcome. The paper makes just this clarifying point, noting, for instance, that White Democrats low in racial resentment were even more influential in contributing votes to Clinton in 2016 than to Obama in 2012. Change between 2012 and 2016 is not exclusively due to the behavior of the most prejudiced.
  • “It is a nice reminder for scholars and, especially, the media, that it is important to think carefully about base rates.”
  • Donald Trump’s candidacy in 2016 was a stress test for Republican partisanship, and Republican partisanship passed with flying colors
  • The election was close enough for Trump to win because the vast majority of G.O.P. voters found the idea of either sitting it out or voting for a Democrat they had spent 20+ years disliking so distasteful that Trump’s limitations, liabilities and overt racism and misogyny were not a deal-breaker.
  • Theodoridis noted that his oneminor methodological and measurement critique is that this sort of analysis has to take seriously what the racial resentment scale actually means
  • It may be that race is actually quite salient for those in the middle part of the scale, but they are just less overtly racist than those at the top of the scale.
  • Also, the meaning of the racial resentment scale changes over time in ways that are not independent of politics, and especially of presidential politics. Position on the scale is not immutable in the way some descriptive characteristics may be.
  • It is an interesting academic exercise to predict who will win the vote within a specific group, but it is more fundamental to elections to understand how many voters candidates will gain from each group
  • the important contribution from Grimmer et al is that there was a big change in the attitudes of the white electorate. A small number of whites with high levels of racial resentment did support Trump in 2016 at a higher rate than in prior elections, but the bulk of support for Trump came from more moderate whites. Trump managed to pull in support from racists, but he was able to pull in much more support from economically disadvantaged whites.
  • The Grimmer paper, according to Westwood, has significant implications for those making “general claims about the future Republican Party,” specifically challenging those who believe
  • that Republicans can continue to win by appealing to white Americans’ worst attitudes and instincts. While it is true Trump support is largest for the most racist voters, this group is a shrinking part of the electorate
  • Republicans, as Grimmer et al. show, must figure out how to appeal to moderate whites who hold more moderate attitudes in order to win
  • and NOT as a statement about Trump being successful in attracting racially liberal voters (indeed, those lowest in racial resentment turned away from him, per Grimmer-Marble-Tanigawa-Lau’s own findings).
  • it’s critical to avoid the idea that there is a single skeleton key that can explain all the varied undercurrents that led to Trump’s 2016 victory, or that any one paper will provide a definitive explanation
  • One clear benefit emerging from the continuing study of Trump’s 2016 victory is a better understanding of the complexity and nuance of what brought it about.
  • the presence of racial resentment among Republican voters emerged long before Trump ran for president, while such resentment among Democratic voters has been sharply declining
  • racial resentment didn’t do more for Trump than it did for Romney. The highly racially resentful have, with reason, been voting for Republicans for a long time
  • Trump’s more explicit use of race didn’t make supporters more racially resentful. Levels of racial resentment among Republicans are no higher now than they were before Trump. In fact, they are slightly lower
  • And the highly racially resentful already knew full well that their home was in the G.O.P.
  • While the focus of attention has been on those who fall at the high end of the distribution on racial resentment
  • Almost all the change has taken place among Democrats, as they moved to lower and lower levels of resentment
  • In a statistical sense, the fact that there are now so many more people at the low end of the distribution than before will produce a larger coefficient for the effect of racial resentment on voting behavior.
  • that does not mean that those high in racial resentment are now even more likely to vote for Republicans or that there are more people high in resentment
  • there are more people low in resentment than before and that they are even less likely to vote for Republicans than before. So the low end of the scale is doing the work.
  • my own view is that Grimmer, Marble and Tanigawa-Lau have made a significant contribution to understanding the Trump phenomenon.
  • Most important, they make the case that explanations of Trump’s victory pointing to the role of those at the extremes on measures of racial resentment and sexism, while informative, are in their own way too comforting, fostering the belief that Trump’s triumph was the product of voters who have drifted far from the American mainstream.
  • In fact, the new analysis suggests that Trumpism has found fertile ground across a broad swath of the electorate, including many firmly in the mainstream. That Trump could capture the hearts and minds of these voters suggests that whatever he represents beyond racial resentment — anger, chaos, nihilism, hostility — is more powerful than many recognize or acknowledge
Javier E

Equal Opportunity, Our National Myth - NYTimes.com - 1 views

  • Today, the United States has less equality of opportunity than almost any other advanced industrial country. Study after study has exposed the myth that America is a land of opportunity.
  • The Pew Research Center has found that some 90 percent of Americans believe that the government should do everything it can to ensure equality of opportunity.
  • the upwardly mobile American is becoming a statistical oddity. According to research from the Brookings Institution, only 58 percent of Americans born into the bottom fifth of income earners move out of that category, and just 6 percent born into the bottom fifth move into the top
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  • Perhaps a hundred years ago, America might have rightly claimed to have been the land of opportunity, or at least a land where there was more opportunity than elsewhere. But not for at least a quarter of a century. Horatio Alger-style rags-to-riches stories were not a deliberate hoax, but given how they’ve lulled us into a sense of complacency, they might as well have been.
  • government support for many state schools has been steadily gutted
  • the life prospects of an American are more dependent on the income and education of his parents than in almost any other advanced country for which there is data.
  • Discrimination, however, is only a small part of the picture. Probably the most important reason for lack of equality of opportunity is education: both its quantity and quality
  • While racial segregation decreased, economic segregation increased. After 1980, the poor grew poorer, the middle stagnated, and the top did better and better. Disparities widened between those living in poor localities and those living in rich suburbs — or rich enough to send their kids to private schools.
  • A result was a widening gap in educational performance — the achievement gap between rich and poor kids born in 2001 was 30 to 40 percent larger than it was for those born 25 years earlier
  • there are other forces at play, some of which start even before birth. Children in affluent families get more exposure to reading and less exposure to environmental hazards. Their families can afford enriching experiences like music lessons and summer camp. They get better nutrition and health care, which enhance their learning, directly and indirectly.
  • the situation is likely to get even worse
  • Economic mobility in the United States is lower than in most of Europe and lower than in all of Scandinavia.
  • students are crushed by giant student loan debts
  • at the same time that a college education is more important than ever for getting a good job.
  • Young people from families of modest means face a Catch-22: without a college education, they are condemned to a life of poor prospects; with a college education, they may be condemned to a lifetime of living at the brink.
  • increasingly even a college degree isn’t enough; one needs either a graduate degree or a series of (often unpaid) internships. Those at the top have the connections and social capital to get those opportunities
  • no one makes it on his or her own. And those at the top get more help from their families than do those lower down on the ladder
  • Without substantial policy changes, our self-image, and the image we project to the world, will diminish — and so will our economic standing and stability. Inequality of outcomes and inequality of opportunity reinforce each other — and contribute to economic weakness,
  • Policies that promote equality of opportunity must target the youngest Americans. First, we have to make sure that mothers are not exposed to environmental hazards and get adequate prenatal health care. Then, we have to reverse the damaging cutbacks to preschool education,
  • The right says that money isn’t the solution. They’ve chased reforms like charter schools and private-school vouchers, but most of these efforts have shown ambiguous results at best. Giving more money to poor schools would help. So would summer and extracurricular programs that enrich low-income students’ skills.
  • it is unconscionable that a rich country like the United States has made access to higher education so difficult for those at the bottom and middle. There are many alternative ways of providing universal access to higher education, from Australia’s income-contingent loan program to the near-free system of universities in Europe.
  • A more educated population yields greater innovation, a robust economy and higher incomes — which mean a higher tax base. Those benefits are, of course, why we’ve long been committed to free public education through 12th grade. But while a 12th-grade education might have sufficed a century ago, it doesn’t today
Javier E

Entrepreneurs Rise in Ashes of India's Caste System - NYTimes.com - 0 views

  • India is enjoying an extended economic boom, with near double-digit growth. But the benefits have not been equally shared, and southern India has rocketed far ahead of much of the rest of the country on virtually every score — people here earn more money, are better educated, live longer lives and have fewer children. A crucial factor is the collapse of the caste system over the last half century, a factor that undergirds many of the other reasons that the south has prospered — more stable governments, better infrastructure and a geographic position that gives it closer connections to the global economy.
  • “The breakdown of caste hierarchy has broken the traditional links between caste and profession, and released enormous entrepreneurial energies in the south,
  • This breakdown, he said, goes a long way to explaining “why the south has taken such a lead over the north in the last three decades.”
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  • While in the south lower caste members concentrated on economic development and education as a route to prosperity, in the north the chief aim of caste-based groups has been political power and its spoils. As a result India’s northern lower castes tend to be less educated and less prosperous than their southern counterparts.
  • Unlike northern India, where caste-based political movements are a fairly recent phenomenon, lower castes in southern India began agitating against upper-caste domination at the beginning of the 20th century. Because these movements arose before independence and the possibility of elected political power, they focused on issues like dignity, education, and self-reliance, Mr. Varshney said. Nadars created business associations to provide entrepreneurs with credit they could not get from banks. They started charities to pay for education for poor children. They built their own temples and marriage halls to avoid upper caste discrimination. “Our community focused on education, not politics,” said R. Chandramogan, a Nadar entrepreneur who built India’s largest privately owned dairy company from scratch. “We knew that with education, we could accomplish anything.”
  • The north put in place affirmative action policies, but because education was widely embraced, southern people from lower castes were better able to take advantage of these opportunities than northerners. When India’s economy liberalized in the 1990s, the south was far more prepared to take advantage of globalization, said Samuel Paul of the Public Affairs Center, a research institution that has looked closely at the growing divide between north and south India. “The south was ready,” Mr. Paul said.
  •  
    A fascinating case study in the role of economics vs. culture vs politics in bringing about economic development and wealth.
Javier E

This Time, It Really Is Different - NYTimes.com - 0 views

  • Nouriel Roubini, whose consistently bearish views have been consistently right
  • “The Way Forward” ought to at least give our politicians pause.
  • its prognosis, if we continue on the current path, is grim. “Unless we take dramatic steps, it will be Japan all over again,” says Alpert. “Continuous deflation, no economic growth, in and out of recessions. And high unemployment.” Adds Hockett: “It will be like the economic version of chronic fatigue syndrome. A low-grade fever all the time.”
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  • the bursting of the debt bubble three years ago was not just a severe example of the ups and downs that are an inevitable part of American capitalism. Rather, it was the ultimate consequence of the modern global economy. Chief among the changes that have taken place is the integration of China, Russia, India and other countries into the global economic mainstream. The developed world once had maybe 500 million workers. Today, say the authors, we’ve added another two billion people to the global work force. That change alone has had a great deal to do with the stagnant wages, income inequality and the oversupply of labor in America that was masked by rising home prices and access to credit.
  • Now that the curtain has been pulled back, cheap credit alone can’t fix our problems. The country is in a deflationary cycle that is very difficult to get out of: as wages decrease (or more workers become unemployed), people become afraid to spend. Assets like homes drop in value. Businesses react by lowering prices and laying off yet more workers — which only triggers a new round of deflation. The only thing that doesn’t change is the unsustainably high debt that was accrued during the bubble.
  • Reducing government spending in the short term will only make things worse.
  • they believe that this is perhaps the best time in recent history for the government to take on a sustained infrastructure program, lasting from five to seven years, to create jobs and demand. “Labor costs will never be lower,” says Hockett. “Equipment costs will never be lower. The cost of capital will never be lower. Why wait?” Their plan calls for $1.2 trillion in spending — not all by the government, but all overseen by government — that would add 5.2 million jobs each year of the program.
  • they call for a “global rebalancing,” which includes a radical change in the current dysfunctional relationship between creditor and debtor nations, and even a new global currency that would be administered by the International Monetary Fund.
Javier E

Opinion | It Doesn't Matter Who Replaces Merkel. Germany Is Broken. - The New York Times - 0 views

  • The stability (and even monotony) associated with German politics under Ms. Merkel appears to be coming to an end. Her looming retirement marks a deepening crisis of the German political system that threatens not just the future of the country, but of the European Union.
  • Thirty years later, this society has vanished. Average real incomes declined for nearly 20 years beginning in 1993. Germany not only grew more unequal, but the standard of living for the lower strata stagnated or even fell. The lowest 40 percent of households have faced annual net income losses for around 25 years now, while the kinds of jobs that promised long-term stability dwindled.
  • on the surface Germany appears to be an economic success story. Its G.D.P. has grown consistently for nearly a decade; unemployment is at its lowest since reunification in 1989. In amassing trade surpluses, Germany has enjoyed several advantages: an advanced manufacturing sector; the ability to get primary products and services from other members of the European Union; and being in the eurozone, which effectively gives the country a devalued currency, making its exports more attractive.
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  • But the system has come at a cost. To maintain their competitive advantage in the global market, companies held down wages. Though for skilled workers in the export-oriented manufacturing sector pay remained stable, or even rose, less-skilled and low-wage workers suffered. This was made possible by decentralizing collective bargaining in the 1990s, which greatly weakened the power of unions
  • the erosion of the German social model in recent decades. Though never as socially inclusive as the Scandinavian countries, postwar Germany had a comprehensive welfare state and robust labor unions, ensuring that citizens from the lower strata could achieve a decent living standard and a bit of wealth through full-time employment.
  • full-time employment served as the foundation of social integration. The classic metaphor to describe this arrangement was coined by the sociologist Ulrich Beck in the 1980s: the “elevator effect.” It implied that though social inequality still existed, everyone was rising in the same social “elevator,” meaning that the gap between rich and poor wouldn’t widen.
  • Ms. Merkel, for all her power and influence, is just one politician. Germany’s new political crisis runs much deeper. It stems from an economic system that has resulted in stagnant wages and insecure jobs. The erosion of Germany’s postwar settlement — a strong welfare state, full-time employment, the opportunity to move up in the world — has created a populace open to messages and movements previously banished to the fringes.
  • The number of precarious jobs like temp positions has exploded. At the height of postwar prosperity, almost 90 percent of jobs offered permanent employment with protections. By 2014, the figure had fallen to 68.3 percent.
  • nearly one-third of all workers have insecure or short-term jobs. Moreover, a low-wage sector emerged employing millions of workers who can barely afford basic necessities and often need two jobs to get by.
  • Though the upper-middle class still enjoys a high level of security, the lower middle contends with a very real risk of downward mobility. The relatively new phenomenon of a contracting — and internally divided — middle class has set off widespread anxiety.
  • Germany today now resembles a bank of escalators in a department store: one escalator has already taken some well-to-do customers to the upper floor, while for those below them, the direction of travel begins to reverse. The daily experience of many is characterized by constant running up a downward escalator. Even when people work hard and stick to the rules, they often make little progress.
  • a majority of Germans welcomed the new immigrants, just over two million in number, who arrived in 2015. But significant sections of the lower middle and the working class disapproved. When ascent no longer seems possible and collective social protest is almost nonexistent or ineffective, people tend to grow resentful. This has led to accumulated dissatisfaction with the old major parties, the Christian Democrats and Social Democrats.
Javier E

Climate crisis: today's children face lives with tiny carbon footprints | Environment |... - 0 views

  • Children born today will have to live their lives with drastically smaller carbon footprints than their grandparents if climate change is to be controlled.
  • Fast, deep cuts in global emissions from energy, transport and food are needed to keep temperature rises in check and an analysis has shown this means the new generation will have lifetime carbon budgets almost 90% lower than someone born in 1950.
  • “Those in positions of power – from politicians to business leaders – that have benefited from a much higher lifetime carbon budget have a duty to act to ensure a liveable planet for current and future generations,”
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  • t then calculates how much the average citizen on Earth can emit over their lifetime to keep temperature rises below 1.5C or 2C above pre-industrial levels, the goal of the world’s nations to avoid climate catastrophe.
  • The children and young people taking part in the youth strikes (born 1997-2012) will have carbon budgets just one sixth those of their baby boomer grandparents (1946-1964).
  • He said it is the first systematic use of emissions data to inform the debate about intergenerational responsibility for climate change and had produced some “uncomfortable numbers”.
  • There is a currently a wide gap between the average annual emissions of a US citizen (16.9 tonnes) and an Indian citizen (1.9 tonnes)
  • in a second analysis, Carbon Brief posited a future carbon budget that would be the same for every citizen on the planet. This would mean that the budget for a child born today in the US is even lower, 97% lower than that of that of their grandparents. For someone born today in Europe, their budget would be 94% lower
Javier E

Mini Nuclear Reactors Offer Promise of Cheaper, Clean Power - WSJ - 0 views

  • Next-generation nuclear must overcome public wariness of the technology engendered by the terrifying mishaps at Three Mile Island, Chernobyl and, most recently, Fukushima. Then there is the challenge of making a compelling case for nuclear power as the cost of electricity from natural gas, wind and solar is plunging.
  • Rather than offering up SMRs as a replacement for renewables, proponents of the devices say they can play a complementary role in the smart grid of the future—replacing coal- and gas-fired plants and operating alongside wind and solar
  • Most utilities rely on a variety of electricity sources, with differing costs, emissions and capacity to provide the constant flow that power grids need for stability, says Tom Mundy, chief technology officer at SMR developer NuScale Power LLC. “Our technology is a great complement to renewable power systems,”
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  • The U.S. government is lending its support to SMR development. In September, the Nuclear Regulatory Commission for the first time issued a final safety evaluation report on a SMR—a critical step before a design can be approved—to NuScale
  • is developing its first commercial SMR for utilities in Utah and promising power by the end of the decade.
  • the Energy Department awarded $210 million to 10 projects to develop technologies for SMRs and beyond, as part of its Advanced Reactor Demonstration Program. The agency had already awarded $400 million to various projects since 2014 “to accelerate the development and deployment of SMRs,
  • . Potential buyers range from U.S. utilities trying to phase out coal-fired generators to Eastern European countries seeking energy independence.
  • GE’s second offering, a system now in development with nuclear startup TerraPower LLC, replaces water with molten salt, similar to what’s used in some advanced solar-power arrays. Dubbed Natrium, the system runs hotter than water-cooled reactors but at lower pressure and with passive cooling, which eliminates piping and electrical systems while improving safety, according to TerraPower CEO Chris Levesque.
  • “When you have a really elegant design, you can get multiple benefits working together,” Mr. Levesque says. TerraPower, established by investors including Bill Gates, received $80 million of the Energy Department funding for Natrium in October.
  • Greenpeace, the Union of Concerned Scientists and other advocacy groups argue that nuclear power remains a dangerous technological dead-end that causes as many problems as it solves.
  • Traditional reactors grew over time to achieve greater efficiencies of scale and lower cost per kilowatt-hour because power output rose faster than construction and operating costs. “There’s no reason that’s changed,” he says, dismissing SMR makers’ promises of lower costs and increased safety
  • Many proposed SMR expense reductions, such as less shielding, could ultimately increase their danger, while the combined use of several modules could create new safety risks like radioactive contamination that negate gains in individual modules, he says.
  • Mr. Ramana also says that the technological advances like 3-D printing and digital manufacturing that make SMRs possible are doing even more to improve green renewables. “It’s a kind of treadmill race, where one treadmill is going much faster.”
  • although SMRs have lower upfront capital cost per unit, their economic competitiveness is still to be proven.”
Javier E

U.S. Gas Prices Drop Ahead of Thanksgiving Travel - The New York Times - 0 views

  • U.S. gasoline prices are plunging just in time for Thanksgiving, and with the OPEC Plus oil cartel in apparent disarray, they could be heading lower for Christmas.
  • The national average price for a gallon of regular gasoline on Wednesday was $3.28, about 6 cents less than a week earlier and 27 cents less than a month ago.
  • Prices have dropped below $3 a gallon in more than a dozen states
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  • The primary reason for lower gasoline prices is the recent weakness of oil prices, which have fallen by more than $15 a barrel, or nearly 20 percent, since early Septembe
  • Demand for fuel has been weak in China and parts of Europe, while production has been strong in Brazil, Canada and the United States.
  • “Reaching a new agreement to cut production will prove to be challenging,”
  • Saudi Arabia had been expected to extend its cuts in production, while cajoling other countries to show restraint as well to bolster prices. But Nigeria and Angola are resisting, and lobbying for higher production quotas
  • He said that although Russia and eight other members of the cartel agreed to cuts in June, “it would be difficult for these countries to accept even lower production quotas.”
  • The uncertainty has served as a signal to traders to bail out of crude.
  • Airfares will be slightly more expensive than last year, the motor club said, but otherwise holiday travel should be cheaper. It said the average price for a domestic hotel stay is down 12 percent from last year, while rental car costs are 20 percent lower.
Javier E

Why the Economy Doesn't Roar Anymore - WSJ - 1 views

  • The U.S. presidential candidates have made the usual pile of promises, none more predictable than their pledge to make the U.S. economy grow faster. With the economy struggling to expand at 2% a year, they would have us believe that 3%, 4% or even 5% growth is within reach.
  • But of all the promises uttered by Donald Trump and Hillary Clinton over the course of this disheartening campaign, none will be tougher to keep. Whoever sits in the Oval Office next year will swiftly find that faster productivity growth—the key to faster economic growth—isn’t something a president can decree.
  • It might be wiser to accept the truth: The U.S. economy isn’t behaving badly. It is just being ordinary.
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  • Historically, boom times are the exception, not the norm.
  • Over the past two centuries, per capita incomes in all advanced economies, from Sweden to Japan, have grown at compound rates of around 1.5% to 2% a year
  • these distinctly non-euphoric averages mean that most of the time, over the long sweep of history, people’s incomes typically take about 40 years to double.
  • looking from one year to the next, the improvements in living standards that come from higher incomes are glacial. The data may show that life is getting better, but average families feel no reason to break out the champagne.
  • that is no longer good enough. Americans expect the economy to be buoyant, not boring. Yet this expectation is shaped not by prosaic economic realities but by a most unusual period in history: the quarter-century that began in the ashes of World War II, when the world economy performed better than at any time before or since.
  • The Golden Age was the first sustained period of economic growth in most countries since the 1920s. But it was built on far more than just pent-up demand and the stimulus of the postwar baby boom. Unprecedented productivity growth around the world made the Golden Age possible. In the 25 years that ended in 1973, the amount produced in an hour of work roughly doubled in the U.S. and Canada, tripled in Europe and quintupled in Japan.
  • Many factors played a role in this achievement.
  • The workforce everywhere became vastly more educated.
  • As millions of laborers shifted from tending sheep and hoeing potatoes to working in factories and construction sites, they could create far more economic value.
  • New motorways boosted productivity in the transportation sector by letting truck drivers cover longer distances with larger vehicles. Faster ground transportation made it practical, in turn, for farms and factories to expand to sell not just locally but regionally or nationally, abandoning craft methods in favor of machinery that could produce more goods at lower cost.
  • Six rounds of tariff reductions brought a massive increase in cross-border trade, putting even stronger competitive pressure on manufacturers to become more efficient.
  • Above all, technological innovation helped to create new products and offered better ways for workers to do their jobs.
  • The 1973 oil crisis meant more than just gasoline lines and lowered thermostats. It shocked the world economy.
  • But it wasn’t the price of gasoline that brought the long run of global prosperity to an end. It just diverted attention from a more fundamental problem: Productivity growth had slowed sharply.
  • The consequences of the productivity bust were severe. Full employment vanished. It would be 24 years before the U.S. unemployment rate would again reach the low levels of late 1973
  • and the infinitesimal unemployment rates in France, Germany and Japan would never be reached again. Through the rest of the 20th century, the jobless rate in 28 wealthy economies would average nearly 7%.
  • the world’s overall economic growth rate dropped from 4.9% a year from 1951 through 1973 to an average of just 3.1% for the balance of the century.
  • With economic planners and central bankers unable to steady their economies, voters turned sharply to the right
  • Conservative politicians such as Margaret Thatcher in the U.K., Ronald Reagan in the U.S. and Helmut Kohl in West Germany swept into power, promising that freer markets and smaller government would reverse the decline, spur productivity and restore rapid growth.
  • But these leaders’ policies—deregulation, privatization, lower tax rates, balanced budgets and rigid rules for monetary policy—proved no more successful at boosting productivity than the statist policies that had preceded them
  • Some insist that the conservative revolution stimulated an economic renaissance, but the facts say otherwise: Great Britain’s productivity grew far more slowly under Thatcher’s rule than during the miserable 1970s, and Reagan’s supply-side tax cuts brought no productivity improvement at all.
  • It is tempting to think that we know how to do better, that there is some secret sauce that governments can ladle out to make economies grow faster than the norm. But despite glib talk about “pro-growth” economic policies, productivity growth is something over which governments have very little control
Javier E

Bye-Bye, Baby - NYTimes.com - 0 views

  • Very high national fertility rates have not disappeared, but they are now mostly concentrated in a single region: sub-Saharan Africa. Last year, all five countries with estimated total fertility rates (the average number of births per woman) at six or higher — Niger, Mali, Somalia, Uganda and Burkina Faso — were there. So were nearly all of the 18 countries with fertility rates of five or more (the exceptions were Afghanistan and East Timor).
  • Sub-Saharan Africa also makes up a substantial portion of countries with estimated fertility rates between three and four: Notable exceptions include Iraq, Jordan, the Philippines and Guatemala
  • In reality, slower population growth creates enormous possibilities for human flourishing. In an era of irreversible climate change and the lingering threat from nuclear weapons, it is simply not the case that population equals power, as so many leaders have believed throughout history. Lower fertility isn’t entirely a function of rising prosperity and secularism; it is nearly universal.
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  • The new hand-wringing stems from a gross misunderstanding of the glacial nature of population change.
  • Even when the total fertility rate falls below 2.1 children, the “momentum” effects of earlier fertility trends will keep a population growing for many decades. In cases when the absolute size of a national population declines, the drop often turns out to be short-lived, and in aggregate numbers usually is so slight as to be of little significance.
  • young women especially, but also young men, increasingly see marriage and childbearing as major risks, given high divorce rates and the responsibility to support aging parents, who are enjoying longer lives.
  • it also can provide substantial benefits that have received less attention.
  • fertility decline is associated nearly everywhere with greater rights and opportunities for women.
  • the work forces of societies with low-to-moderate fertility rates often achieve higher levels of productivity than do higher fertility societies.
  • Substantial fertility declines in southern India, notably in the state of Kerala, have been associated with significant economic and educational gains. It is not hard to figure out why. Children, teenagers and young adults are generally less productive than middle-aged workers with more experience,
  • The fewer children who need primary and secondary education, the more resources there are that can be invested in higher-quality education per child
  • by enhancing the employment and career experiences of young adults, lower fertility can also bring about greater social and political stability
  • There are, in fact, ways that low fertility can be moderated, or even reversed, over time.
  • lower fertility rates may gradually reduce the incentives that have led a surprisingly large number of governments to encourage the emigration of their own young citizens,
  • France provides subsidized day care for children, starting at 2 1/2 months. Fees are on a sliding scale based on family income. Other countries have been reconsidering traditional school schedules, such as half-days and early closing times that impose serious work-family conflicts for parents, and housing subsidies for young families.
Javier E

Why Trump Now? - The New York Times - 0 views

  • The economic forces driving this year’s nomination contests have been at work for decades. Why did the dam break now?
  • The share of the gross national product going to labor as opposed to the share going to capital fell from 68.8 percent in 1970 to 60.7 percent by 2013
  • the number of manufacturing jobs dropped by 36 percent, from 19.3 million in 1979 to 12.3 million in 2015, while the population increased by 43 percent, from 225 million to 321 million.
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  • The postwar boom, when measured by the purchasing power of the average paycheck, continued into the early 1970s and then abruptly stoppe
  • Starting in 2000, two related developments added to worsening conditions for the middle and working classes.
  • that year marked the end of net upward mobility. Before 2000, the size of both the lower and middle classes had shrunk, while the percentage of households with inflation-adjusted incomes of $100,000 or more grew. Americans were moving up the ladder.
  • After 2000, the middle class continued to shrink, but so did the percentage of households making $100,000 or more. The only group to grow larger after 2000 was households with incomes of $35,000 or less. Americans were moving down the ladder.
  • The second adverse trend is that trade with China, which shot up after China’s entry into the World Trade Organization in December 2001, imposed far larger costs on American workers than most economists anticipated
  • If one had to project the impact of China’s momentous economic reform for the U.S. labor market with nothing to go on other than a standard undergraduate economics textbook, one would predict large movements of workers between U.S. tradable industries (say, from apparel and furniture to pharmaceuticals and jet aircraft), limited reallocation of jobs from tradables to non-tradables, and no net impacts on U.S. aggregate employment. The reality of adjustment to the China shock has been far different. Employment has certainly fallen in U.S. industries most exposed to import competition. But so too has overall employment in local labor markets in which these industries were concentrated. Offsetting employment gains either in export-oriented tradables or in non-tradables have, for the most part, failed to materialize.
  • High wage workers find it relatively easy to adjust and “do not experience an earnings loss,” argue Autor and his colleagues. Low wage workers, in contrast, “suffer large differential earnings loss, as they obtain lower earnings per year both while working at the initial firm and after relocating to new employers.”
  • The recipe for populism seems pretty clear: take a surge in manufacturing imports from China and continued automation in the US workplace and add a tepid macroeconomy. The result is a combustible stew sure to sour the stomach of party leaders nationwide.
  • The stew, to continue Hanson’s metaphor, began to boil over with the cataclysmic financial collapse in September 2008, which many people left and right felt was caused by reckless financial engineering on Wall Street. The collapse and the destruction it left in its wake was, without question, the most important economic and political event in recent years.
  • “It was the financial crisis, what it revealed about government-Wall Street links, and the fumbling of the response to it that put the nail in the coffin of trust in government,
  • , TARP insulated the very institutions and executives that caused the collapse and the disastrous recession that followed.
  • The widespread sense that all the elites in Washington and New York conspired to bail out the miscreants who caused the disaster and then gave them bonuses, while the rest of us lost our houses or saw their value, the biggest and often only asset of Americans, plummet, lost our jobs or saw them frozen and stagnant, and then saw gaping inequality grow even more, is just palpable.
  • On Jan. 10, 2010, the Supreme Court granted those in upper income brackets additional privileges in its Citizens United decision (buttressed by subsequent lower court rulings) that allowed wealthy individuals, corporations and unions to make unlimited political contributions. By opening the door to the creation of SuperPACs and giving Wall Street and other major financial sectors new ways to buy political outcomes, the courts gave the impression, to say the least, that they favored establishment interests over those of the less well off.
  • A Bloomberg poll last September found that 78 percent of voters would like to see Citizens United overturned, and this view held across a range of partisan loyalties: Republicans at 80 percent; Democrats at 83; and independents at 71.
  • . Obamacare, a program many in the white middle and working classes perceived as reducing their own medical care in order to provide health coverage to the disproportionately minority poor.
  • By the midterm elections of 2010, voter dissatisfaction among whites found expression in the Tea Party movement, which produced the sweeping defeat of Democrats in competitive congressional districts as well as of moderate and center-right Republicans in primary contests.Voter anger was directed at two targets — the “undeserving rich” and the “undeserving poor.”
  • To many of those who cast their ballots in anger in 2010 and 2014, however, it appeared that their votes had not changed anything. Obamacare stayed in place, Wall Street and corporate America grew richer, while the average worker was stuck going nowhere.
  • Already disillusioned with the Democratic Party, these white voters became convinced that the mainstream of the Republican Party had failed them, not only on economic issues, but on cultural matters as well.
  • A September 2015 Ispos survey asked voters if they agreed or disagreed with the statement “More and more, I don’t identify with what America has become.” 72 percent of surveyed Republicans concurred, compared to 58 percent of independents and 45 percent of Democrats. Two thirds of Republicans, 62 percent, agreed with the statement “These days I feel like a stranger in my own country,” compared to 53 percent of independents and 37 percent of Democrats. Here is one place where Trump’s scathing dismissal of political correctness found fertile ground.
  • If he prevails, a constituency that could force politicians to confront the problems of the working and middle class will waste its energies on a candidate incompetent to improve the lives of the credulous men and women lining up to support him.
  • the consequences of disillusionment with old guard Republicans:The intersection of inequality driven by real wage/income stagnation and the fact that the folks perceived to have blown the damn economy up not only recovered first, but got government assistance in the form of bailouts to do so. If you’re in the anxious middle and that doesn’t deeply piss you off, you’re an unusually forgiving person.
  • This election has demonstrated that there is no Republican Party organization, per se. The Republican Party exists as an array of allied groups, incumbent office holders, media organizations, and funding vehicles (e.g., SuperPACs, 501(c)(4)s, and the like). When people ask why the “establishment” or “the party” has not done anything to stop Trump, it is not exactly clear who they mean.
  • The tragedy of the 2016 campaign is that Trump has mobilized a constituency with legitimate grievances on a fool’s errand.If he is shoved out of the field somehow, his supporters will remain bitter and enraged, convinced that a self-serving and malign elite defeated their leader.
  • In these circumstances, Bernstein wrote, the logic supporting the traditional Republican Party fell apart:The core theme of Republican establishment lore has been to demonize not unregulated finance or trade or inequality, but ‘the other’ – e.g., the immigrant or minority taking your job and claiming unneeded government support. And yet, none of their trickle down, deregulatory agenda helped ameliorate the problem at all. So they lost control.
  • Missing in your narrative were 2 other factors that contributed to American anger and the turn to Mr. Trump. Those two factors are: the group of very wealthy American's who were convened by the Koch brothers to pool their resources to destroy President Obama and the Congressional Democrats and moderate Republicans, e.g. Senator Lugar.
  • were suffering from a major contraction and the drying up of credit & jobs and the President unwisely & wrongly appointed the Simpson-Bowles commission to rein in the debt. Remember Harvard's Rogoff & Reinhart who came up with that Debt to GDP ratio? And the rally of our elites & Pete Peterson et al that Deficits were the problem, when the truth, based on history, was just the opposite.
  • The 2nd factor which can also be attributed to the White House as well as Democrats in the Congress who joined Republicans in misdiagnosing the problem as deficits and debt.
katyshannon

Lowering Water Levels in This Magical Mexican Reservoir Reveal a Colonial Church - 0 views

  • In Chiapas, Mexico, a recent drought has partially dried up the Grijalva river, only to reveal a hidden wonder.  The Nezahualcoyotl reservoir water levels have dropped by nearly 100 feet, exposing the Temple of Santiago, a 16th century church also known as the Temple of Quechula.
  • Nezahualcoyotl reservoir was created with the construction of a dam in 1966, which resulted in the submersion of the church. The temple has been exposed only once since then, in 2002, when water levels dropped so dramatically, visitors were able to walk around inside the church.
  • The structure was built in the mid-16th century by monks led by Friar Bartolome de las Casas, a Spanish missionary who exposed the existence and advocated for the end of colonial slavery. 
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  • Both then and now, local fishermen have taken visitors on tours of the colonial architectural jewel, catching and cooking local fish for the curious visitors.
  • A few hundred years later, the Temple of Santiago was deserted.  "The church was abandoned due [to] the big plagues of 1773-1776," Carlos Navarete, an architect who worked with the government on an assessment of the church, told the Associated Press.
  •  
    Low water levels in Mexico reveal a colonial church built by Bartolome de las Casas
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%.
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