Skip to main content

Home/ History Readings/ Group items tagged manufacturing

Rss Feed Group items tagged

katieb0305

Why Won't Hillary Clinton Defend Trade Deals? - The Atlantic - 0 views

  • crimped construct leaves no room for the very different perspective of someone like architect Charles Kelley in Portland, Oregon
  • “Portland,” Kelley said, “has become responsible for setting the frame for how China will look at urbanism for the next 50 years.”
  • consult with cities around the world to develop sustainable communities through everything from promoting renewable energy to opening bike lanes.
  • ...23 more annotations...
  • “Now … I can’t imagine what the region would be like if we didn’t have the level of trade we have [today].”
  • Donald Trump insists that trade and immigration are undermining wages and devouring jobs
  • has also refused to defend the North American Free Trade Agreement that her husband Bill Clinton signed—an agreement Trump routinely calls “the single worst trade deal ever approved in this country.”
  • But her resistance to expanded trade reflects outdated assumptions about the Democratic coalition
  • international trade specifically as beneficial for the U.S. economy, consumers and their own living standards,
  • Democratic partisans are now much more likely than Republicans to view globalization and trade as a positive force on all those fronts
  • the movement of blue-collar whites largely skeptical of trade into the GOP, and their replacement in the Democratic coalition by minorities,
  • Clinton may rely even more than previous Democratic nominees on these pro-trade groups
  • voters from all parties worry that trade can eliminate domestic jobs.
  • NAFTA has likely saved many U.S. jobs that might otherwise have migrated elsewhere
  • creates an undeniable need for fresh thinking on how to connect those displaced workers with the economy’s new opportunities.
  • “If you are able to produce parts of your finished product in Mexico and lower your cost, you can increase your share of the market,”
  • her conditional early support for the Trans-Pacific Partnership that President Obama negotiated with 11 Asian nations, but has also refused to defend the North American Free Trade Agreement that her husband Bill Clinton signed—an agreement Trump routinely calls “the single worst trade deal ever approved in this country.”
  • Kelley works with about a dozen cities across six countries, with a special concentration in Asia. “Portland,” Kelley said, “has become responsible for setting the frame for how China will look at urbanism for the next 50 years.”
  • Threatening tariffs and walls, Donald Trump insists that trade and immigration are undermining wages and devouring jobs (while also presenting migration from Mexico and the Middle East as a security threat). Clinton has defended immigration, but effectively surrendered to Trump on trade.
  • “We Build Green Cities,” a loose consortium of Portland-based engineering, architectural, and environmental science firms that consult with cities around the world to develop sustainable communities through everything from promoting renewable energy to opening bike lanes.
  • Clinton’s suspicion of trade isn’t just a tactical maneuver: Veterans of the Bill Clinton administration say that internally she was always dubious about pursuing NAFTA. But her resistance to expanded trade reflects outdated assumptions about the Democratic coalition.
  • While Trump has never appeared more confident than when he’s denouncing TPP or NAFTA, Clinton has been tongue-tied.
  • But the latest Chicago Council survey, released last month, shows that Democratic partisans are now much more likely than Republicans to view globalization and trade as a positive force on all those fronts. (Over two-thirds of Democrats now say trade benefits both the overall U.S. economy and their own living standards.)
  • With Trump centering his campaign on mobilizing working-class whites, Clinton may rely even more than previous Democratic nominees on these pro-trade groups—even as she further sublimates their views.
  • The reason: It’s encouraged an integrated North American supply chain that allows American firms to produce autos and other products at less cost overall by shifting some manufacturing to Mexico.
  • Wood acknowledges that U.S. manufacturing workers who lose jobs in this exchange often are not equipped to compete for the new positions that the integration process creates. That creates an undeniable need for fresh thinking on how to connect those displaced workers with the economy’s new opportunities.
  • If she wins, she’ll eventually need to acknowledge the same about economic globalization
sarahbalick

Islamic State fired crude chemical weapons on US troops - Pentagon | World news | The G... - 0 views

  • Islamic State fired crude chemical weapons on US troops – Pentagon
  • Islamic State forces have fired crude chemical weapons at US troops in Iraq, the Pentagon has confirmed, a startling disclosure that US officials promptly downplayed as resulting in no deaths or injuries.
  • Mustard, a banned chemical weapon, is relatively easy to manufacture and has a low incidence of lethality in all but extreme doses, such as the bombardment that former Iraqi dictator Saddam Hussein used on Kurdish civilians and Iranian soldiers in the 1980s and early 1990
  • ...4 more annotations...
  • “It was mustard agent in a powderized form – the same thing we have seen [Isis] use to little effect many times in the past in both Syria and Iraq.”
  • “No service members showed signs or symptoms of mustard exposure. This attack has not impacted our mission in any way, nor have we changed our security posture in the area around Qayyarah.”
  • Some chemical agents and precursor materials for their manufacture had been stored on Iraqi territory formerly controlled by Isis. The US military has insisted since 2014 that there is no evidence Isis obtained access to them. Alternatively, some of Syrian dictator Bashar Assad’s substantial chemical stocks have been known to survive a 2013 agreement brokered by Russia and backed by the US for their destruction.
  • Speaking of a potential chemical attack, Pentagon spokesman Davis said: “We are well trained and equipped for this, as are our ISF [Iraqi security force and [Kurdish] Pesh partners.”
Javier E

And the Trade War Came - The New York Times - 0 views

  • what will happen when the Trump tariffs come?
  • There will be retaliation, big time. When it comes to trade, America is not that much of a superpower — China is also a huge player, and the European Union is bigger still. They will respond in kind, targeting vulnerable U.S. sectors like aircraft and agriculture.
  • And retaliation isn’t the whole story; there’s also emulation. Once America decides that the rules don’t apply, world trade will become a free-for-all.
  • ...3 more annotations...
  • What the coming trade war will do, however, is cause a lot of disruption. Today’s world economy is built around “value chains” that spread across borders: your car or your smartphone contain components manufactured in many countries, then assembled or modified in many more. A trade war would force a drastic shortening of those chains, and quite a few U.S. manufacturing operations would end up being big losers, just as happened when global trade surged in the past.
  • An old joke tells of a motorist who runs over a pedestrian, then tries to fix the damage by backing up — and runs over the victim a second time. Well, the effects of the Trumpist trade war on U.S. workers will be a lot like that.
  • the best bet is that the trade war is coming. Buckle your seatbelts.
Javier E

Donald Trump just forfeited in his first fight with China - The Washington Post - 0 views

  • the real reason to support the TPP wasn't economics so much as geopolitics. It was about keeping an economic foot firmly planted in China's backyard, and writing the trade rules so they couldn't.
  • this kind of logic was a part of almost all our trade deals the past 70 years. Initially, these were about setting a system to promote prosperity abroad so fragile postwar democracies could resist Communist pressure. But even after the Berlin Wall came down, they were still a way to not only open up markets, but also reward countries for reforming their economies like we wanted.
  • that was why NAFTA made more sense than any economic model would have told you. If we rejected Mexico's liberalizing government, it might have collapsed — and an anti-American one could have taken its place.
  • ...11 more annotations...
  • that's not to say that all trade deals are economically irrelevant. They aren't.
  • NAFTA really did move a decent chunk of our manufacturing base south of the border
  • And granting China Permanent Normal Trade Relations status in 2000 really did seem to give companies the confidence they needed to shift production there on a far larger scale than they had before, since they no longer had to worry about the risk of tariffs rising.
  • the era of big trade deals is over. And that was true even before Trump announced his candidacy before a raucous crowd of paid actors.
  • he simple story is that we've already pushed tariffs about as low as they can go, and all that's left is to negotiate over non-tariff trade barriers
  • the problem is that those sorts of things — say, rules about intellectual property or government procurement — are what we used to think of as the sole province of domestic policy.
  • Which is why they can feel like they're infringing on a country's sovereignty.
  • The result is that these new trade deals are more difficult politically and less useful economically than previous ones.
  • what's changing with Trump is that we aren't even trying to lead on trade anymore. He doesn't see these deals as a way to win friends and influence people, but rather to win manufacturing jobs and influence his approval rating.
  • That might sound like common sense to some people, but it does leave an opening for other countries — yes, China — to negotiate where we're not. The risk, then, is that globalization might not proceed on our terms or with our values.
  • there's a greater danger. It's not that Trump won't make further progress on trade, but rather will backtrack on where we are. New trade deals might not help much, but unraveling old ones would hurt. At that point, we wouldn't have the luxury of worrying about whose globalization we had. The answer would be nobody's. And the whole world would be a little bit poorer.
Javier E

Trump's honeymoon with the stock market will soon be over | Nouriel Roubini | Business ... - 0 views

  • It is little wonder that corporations and investors have been happy. This traditional Republican embrace of trickle-down supply-side economics will mostly favour corporations and wealthy individuals, while doing almost nothing to create jobs or raise blue-collar workers’ incomes.
  • According to the non-partisan Tax Policy Center, almost half of the benefits from Trump’s proposed tax cuts would go to the top 1% of income earners.
  • Trump’s honeymoon with investors might be coming to an end. There are several reasons for this.
  • ...5 more annotations...
  • the strengthening dollar will destroy more of the jobs typically held by Trump’s blue-collar base. The president may have “saved” 1,000 jobs in Indiana by bullying and cajoling the air-conditioner manufacturer Carrier; but the US dollar’s appreciation since the election could destroy almost 400,000 manufacturing jobs over time.
  • Republicans can rarely resist the temptation to cut corporate, income and other taxes, even when they have no way to make up for the lost revenue and no desire to cut spending. If this happens again under Trump, fiscal deficits will push up interest rates and the dollar even further, and hurt the economy in the long term
  • The Nobel laureate economist Edmund S Phelps has described Trump’s direct interference in the corporate sector as reminiscent of corporatist Nazi Germany and fascist Italy. Indeed, if Barack Obama had treated the corporate sector in the way that Trump has, he would have been smeared as a communist; but for some reason when Trump does it, corporate America puts its tail between its legs.
  • Fifth, Trump is questioning US alliances, cosying up to American rivals such as Russia, and antagonizing important global powers such as China. His erratic foreign policies are spooking world leaders, multinational corporations and global markets generally.
  • To be sure, expectations of stimulus, lower taxes and deregulation could still boost the economy and the market’s performance in the short term. But, as the vacillation in financial markets since Trump’s inauguration indicates, the president’s inconsistent, erratic, and destructive policies will take their toll on domestic and global economic growth in the long run.
Javier E

Come On, China, Buy Our Stuff! - NYTimes.com - 0 views

  • In 2000, the United States forged its current economic relationship with China by permanently granting it most-favored-nation trade status and, eventually, helping the country enter the World Trade Organization. The unspoken deal, though, went something like this: China could make a lot of cheap goods, which would benefit U.S. consumers, even if it cost the country countless low-end manufacturing jobs. And rather than, say, fight for an extra bit of market share in Chicago, American multinationals could offset any losses because of competition by entering a country with more than a billion people — including the fastest-growing middle class in history — just about to buy their first refrigerators, TVs and cars. It was as if the United States added a magical 51st state, one that was bigger and grew faster than all the others. We would all be better off.
  • European companies have done much better than American ones because they’ve had to practice selling across borders and cultures for decades.
  • China’s households save more than a quarter of their money, while Americans save less than 4 percent.
  • ...8 more annotations...
  • a successful professional in Shanghai knows that she will have to bear any future health care or retirement costs for herself and, because of the one-child policy, for her parents and grandparents too.
  • Every month, the United States buys around $35 billion in goods and services from China and sells around $11 billion back. That, of course, leaves a $24 billion trade deficit.
  • The economists that I spoke to estimated that China’s currency policy has cost the U.S. between 200,000 and 3 million jobs
  • China’s government prevents that adjustment by artificially increasing the demand for dollars, spending much of that $24 billion surplus on U.S. Treasury bonds. This sounds boring, but it effectively makes all Chinese exports somewhere around 25 percent cheaper and all U.S. imports to China, effectively, about 25 percent more expensive
  • all that easy money from China helped make the housing bubble much bigger and last longer, which created a far bigger crisis when the bubble finally burst.
  • The currency intervention also functions as a massive inequality-creation machine. U.S.-based behemoths, which own or use many of those exporting Chinese factories, benefit, as do their shareholders. And because more than 90 percent of U. S. stocks are owned by the wealthiest 20 percent, the spoils are disproportionately concentrated at the top. Meanwhile, lower wages, lost jobs and crippled manufacturing employment fall on the less wealthy.
  • Every month, the United States is demanding a lot of renminbi and China is demanding few U.S. dollars. The natural result should be for the dollar to get weaker as the renminbi gets stronger.
  • it may seem odd that China’s currency policy isn’t the beginning and end of every single political stump speech. After all, it’s probably the one thing that, if changed, could instantly bring both jobs and more equality to this country. I can’t think of any other economic agenda that would receive the support of unions and big business, free traders and protectionists, Wall Street Occupiers and Tea Partiers.
Javier E

What Jobs Will the Robots Take? - Derek Thompson - The Atlantic - 0 views

  • Nearly half of American jobs today could be automated in "a decade or two," according to a new paper
  • The question is: Which half?
  • Where do machines work better than people?
  • ...14 more annotations...
  • in the past 30 years, software and robots have thrived at replacing a particular kind of occupation: the average-wage, middle-skill, routine-heavy worker, especially in manufacturing and office admin. 
  • the next wave of computer progress will continue to shred human work where it already has: manufacturing, administrative support, retail, and transportation. Most remaining factory jobs are "likely to diminish over the next decades," they write. Cashiers, counter clerks, and telemarketers are similarly endangered
  • here's a chart of the ten jobs with a 99-percent likelihood of being replaced by machines and software. They are mostly routine-based jobs (telemarketing, sewing) and work that can be solved by smart algorithms (tax preparation, data entry keyers, and insurance underwriters)
  • I've also listed the dozen jobs they consider least likely to be automated. Health care workers, people entrusted with our safety, and management positions dominate the list.
  • Although the past 30 years have hollowed out the middle, high- and low-skill jobs have actually increased, as if protected from the invading armies of robots by their own moats
  • If you wanted to use this graph as a guide to the future of automation, your upshot would be: Machines are better at rules and routines; people are better at directing and diagnosing. But it doesn't have to stay that way.
  • Higher-skill workers have been protected by a kind of social-intelligence moat. Computers are historically good at executing routines, but they're bad at finding patterns, communicating with people, and making decisions, which is what managers are paid to do
  • lower-skill workers have been protected by the Moravec moat. Hans Moravec was a futurist who pointed out that machine technology mimicked a savant infant: Machines could do long math equations instantly and beat anybody in chess, but they can't answer a simple question or walk up a flight of stairs. As a result, menial work done by people without much education (like home health care workers, or fast-food attendants) have been spared, too.
  • robots are finally crossing these moats by moving and thinking like people. Amazon has bought robots to work its warehouses. Narrative Science can write earnings summaries that are indistinguishable from wire reports. We can say to our phones I'm lost, help and our phones can tell us how to get home. 
  • In a decade, the idea of computers driving cars went from impossible to boring.
  • The first wave showed that machines are better at assembling things. The second showed that machines are better at organization things. Now data analytics and self-driving cars suggest they might be better at pattern-recognition and driving. So what are we better at?
  • One conclusion to draw from this is that humans are, and will always be, superior at working with, and caring for, other humans. In this light, automation doesn't make the world worse. Far from it: It creates new opportunities for human ingenuity.  
  • But robots are already creeping into diagnostics and surgeries. Schools are already experimenting with software that replaces teaching hours. The fact that some industries have been safe from automation for the last three decades doesn't guarantee that they'll be safe for the next one.
  • It would be anxious enough if we knew exactly which jobs are next in line for automation. The truth is scarier. We don't really have a clue.
jordancart33

Three arrested for human cell extract medicine - The Local - 0 views

  •  
    The agency noted that medical products made from human or animal tissue, and containing no living cells, are subject to Switzerland's Therapeutic Products Act and require the approval of Swissmedic. The manufacture and distribution of such preparations, as well as their import, wholesale trading or export must be approved by the agency, it added.
Javier E

A Murky Road Ahead for Android, Despite Market Dominance - The New York Times - 0 views

  • About one of every two computers sold today is running Android. Google’s once underappreciated side bet has become Earth’s dominant computing platform
  • Google’s version of Android faces increasing competition from hungry rivals, including upstart smartphone makers in developing countries that are pushing their own heavily modified take on the software. There are also new threats from Apple, which has said that its recent record number of iPhone sales came, in part, thanks to people switching from Android.
  • Hanging over these concerns is the question of the bottom line. Despite surging sales, profits in the Android smartphone business declined 44 percent in 2014
  • ...13 more annotations...
  • Over the holidays last year, according to the research firm Strategy Analytics, Apple vacuumed up nearly 90 percent of the profits in the smartphone business.
  • How will the search company — or anyone else, for that matter — ever make much money from Android?
  • Google is sanguine about Android’s prospects and said the company’s original vision for Android was never solely about huge profits. “The bet that Larry, Sergey and Eric made at the time was that smartphones are going to be a thing, there’s going to be Internet on it, so let’s make sure there’s a great smartphone platform out there that people can use to, among other things, access Google services
  • The fact that Google does not charge for Android, and that few phone manufacturers are extracting much of a profit from Android devices, means that much of the globe now enjoys decent smartphones and online services for low prices
  • at the same time, given the increasing threats to Google’s advertising business, we might also wonder how long that largess can continue.
  • A brighter spot for Google is the revenue it collects from sales via Android’s app store, called Google Play. For years, Android apps were a backwater, but sales have picked up lately. In 2014, Google Play sold about $10 billion in apps, of which Google kept about $3 billion (the rest was paid out to developers). Apple makes more from its App Store. Sales there exceeded $14 billion in 2014, and rising iPhone sales in China have led to a growing app haul for Apple. Still, Google’s app revenue is becoming an increasingly meaningful piece of its overall business, and it is also growing rapidly.
  • even if hot Silicon Valley start-ups still create apps for iOS first, app makers in other parts of the world see Android as a surer path to the masses. “The reality is that folks like you should play a role in educating the Silicon Valley,” she said.
  • Google’s strategy of giving Android to phone makers free has led to a surge of new entrants in the phone business, several of which sell high-quality phones for cut-rate prices. Among those is Xiaomi, a Chinese start-up making phones that have become some of the most popular devices in China.
  • Because Xiaomi and others don’t make much of a profit by selling phones, they’re all looking for other ways to make money — and for many, the obvious business is in apps offering mail, messaging and other services that compete with Google’s own moneymaking apps.
  • The situation is especially painful for Google in China, the world’s fastest-growing smartphone market, where Google’s apps are blocked. Even in the rest of Asia, where many low-cost phone manufacturers do include Google’s apps on their phones, there’s growing interest in finding some alternative to Google’s version of Android. About 30 percent of Android smartphones shipped in the last quarter of 2014 were actually modified, or forked, versions of the OS that may not be very hospitable to Google’s services, according to the firm ABI Research
  • Cyanogen, has raised about $100 million from several investors — and has signed a “strategic partnership” with Google’s arch-competitor Microsoft — to sell phone makers an alternative user interface that works on top of Google’s Android.
  • “We share services revenue with the phone makers — and today they get very little of that from Google,” said Kirt McMaster, Cyanogen’s chief executive. “There are very few companies in the world today that really like Google. Nobody wants Google to run the table with this game. So it’s a good time to be a neutral third party. We’re Switzerland, and we want to share that revenue with our ecosystem partners in a meaningful way.”
  • in the long run, the rise of Android switching sets up a terrible path for Google — losing the high-end of the smartphone market to the iPhone, while the low end is under greater threat from noncooperative Android players like Xiaomi and Cyanogen.
Javier E

Why Medicine Is Cheaper in Germany - Olga Khazan - The Atlantic - 0 views

  • Germany's process has worked pretty well ever since Otto Von Bismarck set it in motion in 1889. But by 2009, the system started to break down. Drug manufacturers were introducing new drugs—knowing they'd be reimbursed by the sickness funds—but the new drugs weren't necessarily any better than the earlier ones. The result: Drug prices spiraled.
  • nter 2010's Pharmaceutical Market Restructuring Act, or Arzneimittelmarkt-Neuordnungsgesetz, abbreviated in German as AMNOG. As in "AMNOGonna pay drug companies for new meds that are more expensive but not any better than the old ones."
  • s soon as a new drug enters the market, manufacturers must submit a series of studies that prove it heals patients better than whatever was previously available. If the new drugs don't seem any better than their predecessors, the sickness funds will only pay for the price of the earlier version. Patients can still buy the newer medicine, but it's up to them to make up the price difference out of pocket.
  • ...3 more annotations...
  • the new regulation so far hasn't had a chilling effect on medical innovation: "Even though the Federal Joint Committee ruled 27 prescription drugs to have no added benefit, only five of these drugs have left the German market as a result."
  • Bahr's approach to pharmaceutical price regulation is market-driven, if you think about it. Why not force drug makers to compete with each other to prove they're providing added bang for patients' buck? Evzio, meet invisible hand.
  • The American style of drug pricing, meanwhile, is like shopping for clothes with a blindfold on, as Princeton economics professor Uwe Reinhardt put it. "In a truly competitive market, both the prices and the inherent qualities of the goods or services being traded are known to all parties ahead of any trade," he wrote in the Times' Economix blog. "By contrast, in the American healthcare market, both the price and the quality of health care have been kept studiously hidden from patients."
katyshannon

Haryana State in India Proposes New Caste Status in Bid to Quell Protests - The New Yor... - 0 views

  • A state government in India promised to introduce a bill to grant coveted “backward” status to a relatively prosperous caste group, officials said Monday, in an effort to quell protests that have raged for the past four days.
  • The protesters, members of the Jat caste group, had blocked roads around the capital, set fire to railway stations and cars, and temporarily shut down a crucial canal that is a major source of the city’s water. Nineteen people were killed in the violence in surrounding Haryana State, and fears of water shortages led New Delhi to close its schools to conserve its supply.
  • The main thoroughfare in the area, Grand Trunk Road, which had been reopened on Sunday, was blocked again by fighting on Monday morning, the police said. Still, a state official said, 80 percent of the roads that had been closed were open again on Monday morning.
  • ...13 more annotations...
  • Roshan Shankar, an adviser to the Delhi government, said the authorities had regained control of a canal that supplied water to New Delhi, though the canal was badly damaged. For now, he said, the government was using existing reserves and other water bodies to meet the need. He said severe, widespread shortages had not been reported so far.
  • Nevertheless, he added, officials were “trying to get people to ration.”
  • A Jat leader, Satpal Singh Sangwan, a retired government official, said in an interview that officials had assured him that the Jat group would be added to a list of more than 2,000 other groups considered “backward,” making their members eligible for quotas in government jobs and university admissions.
  • A year ago, another relatively prosperous caste group, in the state of Gujarat, also demanded, unsuccessfully, to be part of the “backward classes.” Yet the latest caste protests are only the most violent and visible in what has been a steady stream of requests from different caste groups claiming to be “backward.”
  • It is one of the country’s major paradoxes that a population that has been trying for decades to rid itself of the caste system finds so many groups demanding to be ranked lower on the socioeconomic ladder in order to advance themselves economically.
  • Experts say the trend is being driven by increasing numbers of Indians who fear being left behind in the rapidly modernizing economy and who see government quotas as the only tangible way they can gain influence to help better themselves economically.
  • Vast numbers of Indians now “feel totally helpless with regard to the economy and private capital,” said Satish Deshpande, a sociology professor at Delhi University.
  • Despite the economic liberalization that began here in the 1990s, many people still lack jobs and educational opportunities, intensifying the competition for the age-old staple of government jobs.
  • Almost half of government jobs and university seats in the country are reserved for members of special groups.
  • India’s Constitution guarantees equality to all, but it also enshrines caste-based affirmative action for the lowest social group, the Dalits, known in legal terms as scheduled castes, and for indigenous forest-dwellers, known as scheduled tribes. In time, the government created a third group, the Other Backward Classes.
  • In many cases, groups flex their electoral muscles to induce the government to add them to the list of groups considered backward.The Jats started on that path. In 2014, as national elections approached, the incumbent Congress party agreed to their demand for backward status. But the Supreme Court struck down the decision last year, noting that a commission set up to review the program had refused to recommend such a step for the group.
  • The Jat protests became so out of hand over the weekend that the Indian Army had to be called in. Mr. Das said several protesters were killed in clashes with another caste group whose property was being burned. Other people were killed when law enforcement officials fired at protesters who had turned violent, he said. At least 19 people in all have been killed, Mr. Das said.
  • The riots also disrupted businesses. Maruti Suzuki India, the country’s biggest car manufacturer, said over the weekend that it had suspended manufacturing at two area factories.
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.
  • ...27 more annotations...
  • 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.
  • 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.
  • 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.
  • . 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.
  • 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.
  • 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.
  • 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.
  • 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.
Javier E

The Suicide Clusters at Palo Alto High Schools - The Atlantic - 0 views

  • The rich middle- and high-school kids Luthar and her collaborators have studied show higher rates of alcohol and drug abuse on average than poor kids, and much higher rates than the national norm.
  • They report clinically significant depression or anxiety or delinquent behaviors at a rate two to three times the national average
  • The New York Times columnist Frank Bruni’s Where You Go Is Not Who You’ll Be: An Antidote to the College Admissions Mania warns of the dangers of insisting that admission to an elite college is necessary for a successful life.
  • ...31 more annotations...
  • One of the two major causes of distress, Luthar found, was the “pressure to excel at multiple academic and extracurricular pursuits.”
  • From their answers, Luthar constructed a profile of elite American adolescents whose self-worth is tied to their achievements and who see themselves as catastrophically flawed if they don’t meet the highest standards of success.
  • Middle-class kids, she told me, generally do not live with the expectation that they should go to Stanford or earn $200,000 a year. “If I’ve never been to the moon,” she said of middle-class families, “why would I expect my kids to go there?” The yardstick for the children of the meritocratic elite is different, and it can intimidate as much as it can empower.
  • The second major cause of distress that Luthar identified was perhaps more surprising: Affluent kids felt remarkably isolated from their parents.
  • The kids in the affluent communities she studied felt their parents to be no more available to them, either emotionally or physically, than the kids in severe poverty did.
  • Some of the measures Luthar used were objective: Did the family eat dinner together, or hang out in the evenings? Here, she discovered that some busy parents would leave adolescents alone in the afternoon and evening and often weren’t home at all during those hours
  • Children had the sense that their parents monitored their activities and cared deeply about how they were spending their time, but that didn’t translate into feeling close. Many children felt they were being prodded toward very specific goals and behaviors by parental cues, some subtle, some less so.
  • a feeling of closeness to parents was inversely linked to household income, meaning that the most-affluent kids felt the most alienated.
  • In the past couple of years, other best sellers have sounded a similar note. William Deresiewicz, a former Yale professor who contributes to this magazine, argues in Excellent Sheep that elite education “manufactures students who are smart and talented and driven, yes, but also anxious, timid, and lost, with little intellectual curiosity and a stunted sense of purpose.”
  • But it turns out that this combination can be just as hard on a child’s well-being.
  • Since Levine wrote The Price of Privilege, she’s watched the stress in the Bay Area and in affluent communities all over the country become more pervasive and more acute.
  • Now, she reports, the teenagers have no sense of agency. They still complain bitterly about all the same things, but they feel they have no choice.
  • Many have also fallen prey to what Levine calls a “mass delusion” that there is but one path to a successful life, and that it is very narrow
  • Adolescents no longer typically identify parents or peers as the greatest source of their stress, Levine says. They point to school. But that itself may suggest a submission of sorts—the unquestioned adoption of parental norms.
  • Starting in seventh grade, the rich cohort includes just as many kids who display troubling levels of delinquency as the poor cohort, although the rule-breaking takes different forms. The poor kids, for example, fight and carry weapons more frequently, which Luthar explains as possibly self-protective. The rich kids, meanwhile, report higher levels of lying, cheating, and theft.
  • The meeting she attended with select parents, scholars, mental-health professionals, and community leaders was academically rigorous and yielded many important insights. But it was “eerie” in its almost complete lack of feeling
  • “There are a lot of very hard truths that are just not being spoken.”
  • Gunn is more than 40 percent Asian, and some non-Asian parents, particularly ones who’d grown up in town when the Asian population was smaller, felt the shift was poisoning the culture of the entire school.
  • Her first semester, Chiu got an F on a geometry test, which “totally traumatized me.” Her relationship with her parents started to fray, “because it just took too much energy to speak in a polite tone of voice.” She began to dread swim practice and even Girl Scouts and band, “but I didn’t want to be a quitter.” She remembers wishing that someone had broken up with her, or that she was anorexic, or that she had some reason to explain to her parents why she felt so sad. “I also felt like I was already saying that I was too stressed, and nobody—neither my parents nor my teachers—seemed to care or take me seriously.
  • well-educated parents are quick to distance themselves from the Tiger Mom. We might admire her children’s accomplishments, but we tend to believe these can be coaxed out of a child through applause, not scolding. In fact, this particular combination of lavish praise and insistence on achievement defines our era of protective, meritocratic parenting
  • In March, after spending two days among Palo Alto’s parents and civic leaders, Luthar came to see the community, still in shock over the suicides, as hovering somewhere between fear and denial.
  • Providing praise and love when a child performs especially well can look like healthy parenting, he says, because the parents are giving the child more of a good thing. But if praise comes only when a child succeeds, the child is likely to develop a sense that his or her parents’ affection depends upon good grades, or touchdowns, or mastery of a religious text, or whatever the parents’ priorities might be.
  • The aim of healthy parenting, Assor says, should not be to shower children only with praise and trophies, or to encourage self-esteem based on no real achievements. It should be to disentangle love from the project of parental or pedagogical guidance
  • Giving specific, positive feedback about something a child has tried hard at, or critical yet constructive feedback when a child fails, is perfectly appropriate. “But being warm and nice is a different matter,” he says. “We want to be nice and warm also when our kids do not achieve and when they do not try hard to achieve.”
  • The hope is that, secure in love, a child can experiment more freely and begin to find his or her own voice.
  • With the help of therapists and time, Chiu could better explain what she had experienced—depression, the dangers of not sleeping enough. She learned that her idea that she could escape by manufacturing a mental-health crisis was itself a sign of a mental-health crisis.
  • Not atypically for people who come to consider suicide, she’d lost her ability to think clearly or solve problems, and ended up trapped in a tunnel ruminating about escape, until self-destruction became the only light she could see.
  • Almost by definition, suicide points to underlying psychological vulnerability. The thinking behind it is often obsessive and then impulsive; a kid can be ruminating about the train for a long time and then one night something ordinary—a botched quiz, a breakup—leads him or her to the tracks.
  • the closer I got to the heart of this story, the less I felt I understood that link. Some details neatly fit the narrative that academic pressure has caused lethal amounts of stress in Palo Alto—Taylor Chiu’s experience, for example. Will Dickens, who died in 2009, had a learning disability, and his mother, Janet Dixon-Dickens, told me he never forgot it at Gunn. Cameron Lee, on the other hand, wasn’t obviously oppressed by schoolwork, and neither was J.P. Blanchard, or Sonya Raymakers, a girl who died in June 2009, soon after being accepted into her dream program at New York University.
  • In these days of assumed meritocracy, where children can be turned into anything, we admire them as displays of remarkable engineering, to be tweaked and fine-tuned into bilingual perfection. What we’ve lost, perhaps, is a sense that there may be things about them we can’t know or understand, and that that mysterious quality, separate from us, is what we should marvel at.
  • Admitting we don’t entirely know why teenagers kill themselves isn’t an invitation to do nothing to prevent it from happening. It’s just a call for humility, a short pause to acknowledge that a sense of absolute certainty about what children should do or be or how they should operate is part of what landed us here.
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.
  • ...9 more annotations...
  • 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

Amazon Targets Unprofitable Items, With a Sharper Focus on the Bottom Line - WSJ - 0 views

  • it is having second thoughts about some of those sales because they don’t make money—and is pushing big brands to change how they use its site.
  • Inside Amazon, the items are known as CRaP, short for “Can’t Realize a Profit.” Think bottled beverages or snack foods
  • The products tend to be priced at $15 or less, are sold directly by Amazon, and are heavy or bulky and therefore costly to ship—characteristics that make for thin or nonexistent margins
  • ...9 more annotations...
  • it has been eliminating unprofitable items and pressing manufacturers to change their packaging to better sell online
  • One example: bottled water from Coca-Cola Co. Amazon used to have a $6.99 six-pack of Smartwater as the default order
  • after working with Coca-Cola to change how it ships and sells the water, Amazon notified Dash customers it was changing that default item to a 24-pack for $37.20.
  • Amazon can get away with it because manufacturers of food and household products are hooked on the online retailer’s size—it accounts for a majority of total e-commerce revenue growth
  • For big consumer brands, not being on Amazon “is not an option anymore,”
  • Amazon also has greater leeway to curb CRaP items because of the rise of independent sellers on its site. They have added hundreds of millions of items, helping ensure that Amazon’s virtual shelves are stocked with the variety shoppers expect
  • those sales tend to be more profitable for Amazon, which typically collects a 15% cut plus fees for warehousing.
  • Amazon is trying to boost profitability in its core retail business after years of focusing on growth
  • That has meant selling smaller, lighter laundry products like detergent pods and skipping cheaper paper towels. Instead of promoting a three-pack of dish soap, Seventh Generation recently started advertising a 6-pack for $17.70, and it created a larger, 504-count package of baby wipes for $19.91 for sale on Amazon and elsewhere
Javier E

The great artificial intelligence duopoly - The Washington Post - 0 views

  • The AI revolution will have two engines — China and the United States — pushing its progress swiftly forward. It is unlike any previous technological revolution that emerged from a singular cultural setting. Having two engines will further accelerate the pace of technology.
  • WorldPost: In your book, you talk about the “data gap” between these two engines. What do you mean by that? Lee: Data is the raw material on which AI runs. It is like the role of oil in powering an industrial economy. As an AI algorithm is fed more examples of the phenomenon you want the algorithm to understand, it gains greater and greater accuracy. The more faces you show a facial recognition algorithm, the fewer mistakes it will make in recognizing your face
  • All data is not the same, however. China and the United States have different strengths when it comes to data. The gap emerges when you consider the breadth, quality and depth of the data. Breadth means the number of users, the population whose actions are captured in data. Quality means how well-structured and well-labeled the data is. Depth means how many different data points are generated about the activities of each user.
  • ...15 more annotations...
  • Chinese and American companies are on relatively even footing when it comes to breadth. Though American Internet companies have a smaller domestic user base than China, which has over a billion users on 4G devices, the best American companies can also draw in users from around the globe, bringing their total user base to over a billion.
  • when it comes to depth of data, China has the upper hand. Chinese Internet users channel a much larger portion of their daily activities, transactions and interactions through their smartphones. They use their smartphones for managing their daily lives, from buying groceries at the market to paying their utility bills, booking train or bus tickets and to take out loans, among other things.
  • Weaving together data from mobile payments, public services, financial management and shared mobility gives Chinese companies a deep and more multi-dimensional picture of their users. That allows their AI algorithms to precisely tailor product offerings to each individual. In the current age of AI implementation, this will likely lead to a substantial acceleration and deepening of AI’s impact across China’s economy. That is where the “data gap” appears
  • The radically different business model in China, married to Chinese user habits, creates indigenous branding and monetization strategies as well as an entirely alternative infrastructure for apps and content. It is therefore very difficult, if not impossible, for any American company to try to enter China’s market or vice versa
  • companies in both countries are pursuing their own form of international expansion. The United States uses a “full platform” approach — all Google, all Facebook. Essentially Australia, North America and Europe completely accept the American methodology. That technical empire is likely to continue.
  • The Chinese have realized that the U.S. empire is too difficult to penetrate, so they are looking elsewhere. They are trying, and generally succeeding, in Southeast Asia, the Middle East and Africa. Those regions and countries have not been a focus of U.S. tech, so their products are not built with the cultures of those countries in mind. And since their demographics are closer to China’s — lower income and lots of people, including youth — the Chinese products are a better fit.
  • If you were to draw a map a decade from now, you would see China’s tech zone — built not on ownership but partnerships — stretching across Southeast Asia, Indonesia, Africa and to some extent South America. The U.S. zone would entail North America, Australia and Europe. Over time, the “parallel universes” already extant in the United States and China will grow to cover the whole world.
  • Policy-wise, we are seeing three approaches. The Chinese have unleashed entrepreneurs with a utilitarian passion to commercialize technology. The Americans are similarly pro-entrepreneur, but the government takes a laissez-faire attitude and the entrepreneurs carry out more moonshots. And Europe is more consumer-oriented, trying to give ownership and control of data back to the individual.
  • An AI arms race would be a grave mistake. The AI boom is more akin to the spread of electricity in the early Industrial Revolution than nuclear weapons during the Cold War. Those who take the arms-race view are more interested in political posturing than the flourishing of humanity. The value of AI as an omni-use technology rests in its creative, not destructive, potential.
  • In a way, having parallel universes should diminish conflict. They can coexist while each can learn from the other. It is not a zero-sum game of winners and losers.
  • We will see a massive migration from one kind of employment to another, not unlike during the transition from agriculture to manufacturing. It will largely be the lower-wage jobs in routine work that will be eliminated, while the ultra-rich will stand to make a lot of money from AI. Social inequality will thus widen.
  • The jobs that AI cannot do are those of creators, or what I call “empathetic jobs” in services, which will be the largest category that can absorb those displaced from routine jobs. Many jobs will become available in this sector, from teaching to elderly care and nursing. A great effort must be made not only to increase the number of those jobs and create a career path for them but to increase their social status, which also means increasing the pay of these jobs.
  • There are also issues related to poorer countries who have relied on either following the old China model of low-wage manufacturing jobs or of India’s call centers. AI will replace those jobs that were created by outsourcing from the West. They will be the first to go in the next 10 years. So, underdeveloped countries will also have to look to jobs for creators and in services.
  • I am opposed to the idea of universal basic income because it provides money both to those who don’t need it as well as those who do. And it doesn’t stimulate people’s desire to work. It puts them into a kind of “useless class” category with the terrible consequence of a resentful class without dignity or status.
  • To reinvigorate people’s desire to work with dignity, some subsidy can help offset the costs of critical needs that only humans can provide. That would be a much better use of the distribution of income than giving it to every person whether they need it or not. A far better idea would be for workers of the future to have an equity share in owning the robots — universal basic capital instead of universal basic income.
Javier E

At Carrier, the Factory Trump Saved, Morale Is Through the Floor - The New York Times - 0 views

  • From afar, one might assume the picture is rosy: Indiana has an unemployment rate of just 3.3 percent, and for people without a college degree, few employers offer the kind of salary and benefits that Carrier does. But when I got to Indianapolis in July, I found that the factory Mr. Trump is often credited with saving is plagued by rising absenteeism and low morale.
  • What’s ailing Carrier isn’t weak demand. Furnace sales are strong, and managers have increased overtime and even recalled 150 previously laid-off workers. Instead, employees share a looming sense that a factory shutdown is inevitable — that Carrier has merely postponed the closing until a more politically opportune moment.
  • In some ways, the situation is a metaphor for blue-collar work and life in the United States today. Paychecks are a tad fatter and the economic picture has brightened slightly, but no one feels particularly secure or hopeful
  • ...8 more annotations...
  • Several times in late July and early August, so many workers were missing that the furnace line had to shut down in midday — even more disruptive than an early-morning halt. That hadn’t happened in years, employees said. Some workers cite illness, while others claim days under the Family and Medical Leave Act, saying they are taking care of sick relatives
  • On the worst days, according to one group leader, up to one in five workers are out. It’s true that the company has been running the factory hard — up to 60 hours a week with mandatory overtime, six days in a row — and some absenteeism could be due to sheer exhaustion, Mr. Roell allowed. But “bad blood,” as he put it, is at least as much to blame. “Workers feel like Carrier is going to leave,” he said, “whether we come to work or not.”
  • A week after the election, the president-elect called the chief executive of Carrier’s parent, United Technologies. They worked out terms: Carrier would lay off 632 of its roughly 1,350 blue-collar employees in Indianapolis, but in exchange for $7 million in tax breaks, it would keep the plant open and invest $16 million in new equipment. A little more than half of the workers would keep their jobs.
  • “There have been a few days when three people don’t show up and I’ve had to work on the line all day,” Mr. Maynard said. “The attitude, the demeanor — they’re not grateful that they have a job. The absenteeism is real bad. A lot of us need our jobs. Others look at it and they don’t really care anymore.”
  • The bad vibes can be catching. “It makes it so depressing you don’t feel like going in,” he added. “I need the job, but some days you just want it to be over with.”
  • Yes, Mr. Hayes said, the company would invest in the Carrier facility, as it had promised Mr. Trump. But those funds were earmarked for automation, and would ultimately mean fewer jobs in Indianapolis, not more. Assembly-line positions there were not ones “that people really find all that attractive over the long term,” Mr. Hayes said. There were “great, great people” there, he added, “but the skill set to do those jobs is very different than what it takes to assemble a jet engine.” The Carrier faithful didn’t appreciate the slights
  • Even before the closure announcement, he said, supervisors gathered people from the lines and pointed out, ominously, that their counterparts in Mexico missed fewer days. “I’m worried they will use the absenteeism as an excuse to shut the factory,” Mr. Roell said. “They aren’t doing anything to improve morale.”
  • Mr. Roell doesn’t want his son, 10, or his daughter, 15, to follow him into factory work. “We tell them all the time to go to college or trade school,” he said. “It’s just not stable working in manufacturing. One day, the factory is going to go to another state or country.
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.”
  • ...20 more annotations...
  • arl Albrecht, who was famously secretive, only spoke publicly about Aldi’s business model on one occasion – in 1953. Its fundamental principles, he said, were “narrow product range and low price, [which] cannot be separated
  • Lacking capital, they stocked only a tight range of staples, such as pasta and soap, planning to widen the offering later. But they soon realised that offering a limited selection of cheap, fast-selling goods kept their costs down and the cash flowing, which they could use to invest in new stores. As the former Aldi executive Dieter Brandes and his son Nils wrote in “Bare Essentials”, their book about the company: “Basically, a completely new business model was created along the lines of a discovery in the natural sciences: by accident.”
  • in 1961, when they had 300 stores, they chose to split Aldi, short for Albrecht Discount, into two parts. The “Aldi equator” ran through Essen, with Theo taking the part of Germany to the north, and Karl the south. Aldi North and Aldi South shared all information, except profits, and conducted some supplier negotiations jointly, but were otherwise run separately, with their stores carrying different product ranges and featuring differently coloured floors – one yellow and one grey.
  • Theo continued to put in long hours at the office, managing even the smallest details in his quest to save money. He wore pencils down to the nubs and turned off the light when entering an office if he judged that his staff could see well enough without it. He once told his board to look at the thickness of the paper used for photocopies. Outside consultants and media interviews were banned, considered unnecessary expenditures or distractions. Asceticism was a virtue in life and business, he believed. “People live more on what they do not eat,” he once said. He wanted Aldi to be a place where “people who don’t hate their money can safely go shopping”
  • In their book “Bare Essentials”, Dieter and Nils Brandes argued that Aldi’s embrace of kaizen, its lean management structure and just-in-time approach to inventory – taking delivery of stock only when needed, to cut holding costs – made it the “most Japanese” company in Germany.
  • 1976, Aldi South, Karl’s company, opened the first Aldi store on the east coast of the US. Three years later, in 1979, Theo’s Aldi North purchased Trader Joe’s, a California chain that sells cheap gourmet foods and enjoys a cult-like following. (The US is still the only foreign market where both Aldis operate.)
  • Second, the main chains – the big four as well as the leading “soft” discounter Kwik Save (which stocked a larger range than Aldi) – were listed on the stock exchange. The best way to fight Aldi early on is to slash prices, but few bosses of public companies are happy to accept lower profits, and thus lower bonuses, by pursuing long-term strategies
  • Fourth, and most importantly, the UK is, by global standards, a high-wage economy. This means that labour costs make up a big part of a supermarket’s operating expenses. Here, discounters have a major competitive advantage, because their business model – stocking a small range of products, eschewing delicatessens and promotions, and so on – allows them to operate with fewer, more productive, staff. (The most important performance measure in any Aldi branch is revenue divided by employee hours.)
  • Paying well obviously helps attract and retain staff, who might otherwise go to chains where the pace of work is slower. But it also serves to drive up wages across the industry, which, because of Aldi’s lower overall employee costs, hurts its competitors more.
  • As a private company, with no shareholders other than Karl Albrecht’s family to answer to, it could afford to be patient. “Aldi is very attuned to going into a country, making the investment, and building slowly and steadily,” said Richard Hyman, the retail expert. “Most other companies don’t have a 30-year view – or even a five-year view.”
  • By the time the supermarkets awoke to the structural shift that had occurred in the industry, the damage was done. “The big four bosses were not just sleeping at the wheel,” said Black. “They were comatose.”
  • “Ten years ago we had 900 lines, now we have 1,800,” said Neale. “That’s not because we are trying to become a big-four retailer, it’s because consumer tastes have evolved. We are managing the equilibrium between what customers want and costs.”
  • As the large supermarkets have realised, it is very hard to make money from internet sales because the profit margin on groceries is small and the delivery costs are so high – but now they can’t reverse course without losing customers. Andy Clarke, the former boss of Asda, told the Sunday Times last year that if the big four supermarkets had their time again “they wouldn’t have offered home deliveries, full stop”. “Online groceries are a cost drain,” Neale said. “Why should 90% of customers subsidise the 10% who get free home delivery?”
  • All supermarkets have their own private labels: made not by them, but for them, by manufacturers who agree to put their merchandise in a bag or box with the grocer’s logo on it. But Aldi takes this to extremes: more than 90% of the products it sells, from shaving cream to dark chocolate and frozen pizza, are private labels
  • Stocking mostly own-label goods allows the company to order huge quantities of a single item, to its own specifications, at a low unit cost.
  • Aldi’s entire ketchup order comes from one manufacturer that can operate the same, unchanging product run, all the time, and has no marketing costs to build into the price. “For many SKUs we are the biggest buyer by a country mile,” Neale said.
  • Among UK suppliers, who have often been treated badly by the big supermarkets, with their pressure for back margin fees and slow payment terms, Aldi has a good reputation
  • in 2010, following the death of Theo, which it said brought to an end “the story of the most eccentric, secretive and mysterious pair of siblings in Germany’s post-war economic history”. Karl died four years later, the richest man in Germany with a net worth of $25bn. (Second on the list was Dieter Schwarz, the Lidl owner, followed by Theo’s heirs.)
  • In 2017, Aldi South’s revenues reached €52bn, with about 20% of that from the UK and Ireland. In Ireland, Aldi has 12% of the market, and in Australia 13%, behind Woolworths and Coles. Its share in the US is only 2% – but Aldi plans to raise its number of outlets from 1,800 to 2,500 by 2022, which would make it the third-biggest chain in the US by store count, after Walmart and Kroger
  • In the UK there is still plenty of room to grow. Aldi hopes to have 1,000 shops in three years, up from just over 800 today. Dave McCarthy, a retail analyst at HSBC, said that given Aldi and Lidl’s expansion plans, their share of the market could peak at more than 20%.
Javier E

Amazon, Walmart, and Other Stores Have Too Many Options - The Atlantic - 0 views

  • n theory, Amazon is a site meant to serve the needs of humans.
  • But when you type hangers into Amazon’s search box, the mega-retailer delivers “over 200,000” options. On the first page of results, half are nearly identical velvet hangers, and most of the rest are nearly identical plastic. They don’t vary much by price, and almost all of the listings in the first few pages of results have hundreds or thousands of reviews that average out to ratings between four and five stars. Even if you have very specific hanger needs and preferences, there’s no obvious choice. There are just choices.
  • Amazon’s success has pushed retailers such as Walmart and Target to carry even more stuff—especially online—and to get that stuff to shoppers even faster
  • ...12 more annotations...
  • The global-manufacturing apparatus now has the capacity to churn out near-endless stuff. The industry’s output has ballooned 75 percent since 2007 to $35 trillion, according to one analysis, and millions of livelihoods depend on its continued growth.
  • . The internet-shopping boom has spawned an excess-stuff economy, in which retailers such as Overstock.com buy up extra product from full-price retailers
  • n the arms race to sell as many sandwich bags or beach towels as possible, a problem has become clear: Variety isn’t infinitely valuable.
  • Contemporary internet shopping conjures a perfect storm of choice anxiety
  • Research has consistently held that people who are presented with a few options make better, easier decisions than those presented with many. It has also shown that having many options is particularly confounding when the information available on them is limited or confusing
  • Those infinite, meaningless options can result in something like a consumer fugue state
  • Helping consumers figure out what to buy amid an endless sea of choice online has become a cottage industry unto itself
  • choice fatigue is one reason so many people gravitate toward lifestyle influencers on Instagram—the relentlessly chic young moms and perpetually vacationing 20-somethings—who present an aspirational worldview, and then recommend the products and services that help achieve it
  • Review videos, too, are popular on YouTube, and plenty of niche websites perform similar functions for products that serve a particular interest, such as hiking or photography
  • . Casper (mattresses), Glossier (makeup), Away (suitcases), and many others have sprouted up to offer consumers freedom from choice: The companies have a few aesthetically pleasing and supposedly highly functional options, usually at mid-range prices. They’re selling nice things, but maybe more importantly, they’re selling a confidence in those things
  • They have a strong precedent for believing that their type of extreme curation is what consumers want: Trader Joe’s sells many times fewer products than most of its suburban grocery-store competitors, but still tops consumers’ rankings of their favorite places to grocery shop.
  • stuff’s creators tend to focus their energy on those who already have plenty. As options have expanded for people with disposable income, the opportunity to buy even basic things such as fresh food or quality diapers has contracted for much of America’s lower classes.
« First ‹ Previous 41 - 60 of 441 Next › Last »
Showing 20 items per page