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Javier E

A License to Say Anything? - NYTimes.com - 0 views

  • oddly, liberal supporters of abortion rights are allied, on this issue, with the conservative descendants of Confederate veterans. Both argue that license plates are private, not state, messages and are therefore protected.
  • Under constitutional doctrine, when private individuals express themselves, the government cannot discriminate based on their opinions. But when government is speaking (as in messages on public monuments, for example) it can and in fact must pick and choose. License plates are an important form of “mixed speech,” blending both government and private messages. The court must balance the private right to free speech with the government’s interest in conveying its own messages. A license plate is not a bumper sticker. Only a private person can decide to display a specialty plate — but only the state can make it available.
Javier E

Zephyr Teachout on Sheldon Silver, Corruption and New York Politics - NYTimes.com - 0 views

  • fighting the kind of corruption that plagues not only New York State but the whole nation isn’t just about getting cuffs on the right guy. As with the recent conviction of the former Virginia governor Bob McDonnell for receiving improper gifts and loans, a fixation on plain graft misses the more pernicious poison that has entered our system.
  • Corruption exists when institutions and officials charged with serving the public serve their own ends. Under current law, campaign contributions are illegal if there is an explicit quid pro quo, and legal if there isn’t. But legal campaign contributions can be as bad as bribes in creating obligations. The corruption that hides in plain sight is the real threat to our democracy.
  • In our private financing system, candidates are trained to respond to campaign cash and serve donors’ interests. Politicians are expected to spend half their time talking to funders and to keep them happy. Given this context, it’s not hard to see how a bribery charge can feel like a technical argument instead of a moral one.
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  • The former governor of New York David A. Paterson, for example, said that he had trouble understanding where the criminality lay in the allegation that Mr. Silver accepted payments from law firms for referrals, including referrals by a doctor to whom Mr. Silver funneled state health research funds. Mr. Paterson said, “in the legal profession, people refer business all the time. And theoretically, as a speaker, you could do that as well.”
  • The structure of private campaign finance has essentially pre-corrupted our politicians, so that they can’t even recognize explicit bribery because it feels the same as what they do every day. When you spend a lifetime serving campaign donors, it may seem easy to serve them when they come with an outright bribe, because it doesn’t seem that different.
  • We should take this moment to pursue fundamental reform. We must reconstitute what it means to run for office and to serve in office. We need to ban outside income for elected officials. Transparency alone is not enough; it doesn’t solve the problem of creating outside dependencies. New York lawmakers can’t carry water for two masters when in office.
  • We should reject the private financing of campaigns as the only model. We need to provide enough public funding for campaigns so that anyone with a broad base of support can run for office, and respond effectively to attacks, without becoming dependent on private patrons. Running for office shouldn’t be a job defined by permanent begging at the feet of the wealthiest donors in the country.
  • Corruption is about greed and private interests put ahead of the public good. Whether influence is bought through a bribe, outside spending, outside income or campaign contributions, the public suffers in the same way.
Javier E

Warnings Ignored: A Timeline of Trump's COVID-19 Response - The Bulwark - 0 views

  • the White House is trying to establish an alternate reality in which Trump was a competent, focused leader who saved American people from the coronavirus.
  • it highlights just how asleep Trump was at the switch, despite warnings from experts within his own government and from former Trump administration officials pleading with him from the outside.
  • Most prominent among them were former Homeland Security advisor Tom Bossert, Commissioner of the Food and Drug Administration Scott Gottlieb, and Director for Medical and Biodefense Preparedness at the National Security Council Dr. Luciana Borio who beginning in early January used op-eds, television appearances, social media posts, and private entreaties to try to spur the administration into action.
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  • what the administration should have been doing in January to prepare us for today.
  • She cites the delay on tests, without which “cases go undetected and people continue to circulate” as a leading issue along with other missed federal government responses—many of which are still not fully operational
  • The prescient recommendations from experts across disciplines in the period before COVID-19 reached American shores—about testing, equipment, and distancing—make clear that more than any single factor, it was Trump’s squandering of out lead-time which should have been used to prepare for the pandemic that has exacerbated this crisis.
  • What follows is an annotated timeline revealing the warning signs the administration received and showing how slow the administration was to act on these recommendations.
  • The Early Years: Warnings Ignored
  • 2017: Trump administrations officials are briefed on an intelligence document titled “Playbook for Early Response to High-Consequence Emerging Infectious Disease Threats and Biological Incidents.” That’s right. The administration literally had an actual playbook for what to do in the early stages of a pandemic
  • February 2018: The Washington Post writes “CDC to cut by 80 percent efforts to prevent global disease outbreak.” The meat of the story is “Countries where the CDC is planning to scale back include some of the world’s hot spots for emerging infectious disease, such as China, Pakistan, Haiti, Rwanda and Congo.”
  • May 2018: At an event marking the 100 year anniversary of the 1918 pandemic, Borio says “pandemic flu” is the “number 1 health security issue” and that the U.S. is not ready to respond.
  • One day later her boss, Rear Adm. Timothy Ziemer is pushed out of the administration and the global health security team is disbanded
  • Beth Cameron, former senior director for global health security on the National Security Council adds: “It is unclear in his absence who at the White House would be in charge of a pandemic,” Cameron said, calling it “a situation that should be immediately rectified.” Note: It was not
  • January 2019: The director of National Intelligence issues the U.S. Intelligence Community’s assessment of threats to national security. Among its findings:
  • A novel strain of a virulent microbe that is easily transmissible between humans continues to be a major threat, with pathogens such as H5N1 and H7N9 influenza and Middle East Respiratory Syndrome Coronavirus having pandemic potential if they were to acquire efficient human-to-human transmissibility.”
  • Page 21: “We assess that the United States and the world will remain vulnerable to the next flu pandemic or large scale outbreak of a contagious disease that could lead to massive rates of death and disability, severely affect the world economy, strain international resources, and increase calls on the United States for support.”
  • September, 2019: The Trump Administration ended the pandemic early warning program, PREDICT, which trained scientists in China and other countries to identify viruses that had the potential to turn into pandemics. According to the Los Angeles Times, “field work ceased when funding ran out in September,” two months before COVID-19 emerged in Wuhan Province, China.
  • 2020: COVID-19 Arrives
  • anuary 3, 2020: The CDC is first alerted to a public health event in Wuhan, China
  • January 6, 2020: The CDC issues a travel notice for Wuhan due to the spreading coronavirus
  • Note: The Trump campaign claims that this marks the beginning of the federal government disease control experts becoming aware of the virus. It was 10 weeks from this point until the week of March 16 when Trump began to change his tone on the threat.
  • January 10, 2020: Former Trump Homeland Security Advisor Tom Bossert warns that we shouldn’t “jerk around with ego politics” because “we face a global health threat…Coordinate!”
  • January 18, 2020: After two weeks of attempts, HHS Secretary Alex Azar finally gets the chance to speak to Trump about the virus. The president redirects the conversation to vaping, according to the Washington Post. 
  • January 21, 2020: Dr. Nancy Messonnier, the director of the National Center for Immunization and Respiratory Disease at the CDC tells reporters, “We do expect additional cases in the United States.”
  • January 27, 2020: Top White House aides meet with Chief of Staff Mick Mulvaney to encourage greater focus on the threat from the virus. Joe Grogan, head of the White House Domestic Policy Council warns that “dealing with the virus was likely to dominate life in the United States for many months.”
  • January 28, 2020: Two former Trump administration officials—Gottlieb and Borio—publish an op-ed in the Wall Street Journal imploring the president to “Act Now to Prevent an American Epidemic.” They advocate a 4-point plan to address the coming crisis:
  • (1) Expand testing to identify and isolate cases. Note: This did not happen for many weeks. The first time more than 2,000 tests were deployed in a single day was not until almost six weeks later, on March 11.
  • (3) Prepare hospital units for isolation with more gowns and masks. Note: There was no dramatic ramp-up in the production of critical supplies undertaken. As a result, many hospitals quickly experienced shortages of critical PPE materials. Federal agencies waited until Mid-March to begin bulk orders of N95 masks.
  • January 29, 2020: Trump trade advisor Peter Navarro circulates an internal memo warning that America is “defenseless” in the face of an outbreak which “elevates the risk of the coronavirus evolving into a full-blown pandemic, imperiling the lives of millions of Americans.”
  • January 30, 2020: Dr. James Hamblin publishes another warning about critical PPE materials in the Atlantic, titled “We Don’t Have Enough Masks.”
  • January 29, 2020: Republican Senator Tom Cotton reaches out to President Trump in private to encourage him to take the virus seriously.
  • Late January, 2020:  HHS sends a letter asking to use its transfer authority to shift $136 million of department funds into pools that could be tapped for combating the coronavirus. White House budget hawks argued that appropriating too much money at once when there were only a few U.S. cases would be viewed as alarmist.
  • Trump’s Chinese travel ban only banned “foreign nationals who had been in China in the last 14 days.” This wording did not—at all—stop people from arriving in America from China. In fact, for much of the crisis, flights from China landed in America almost daily filled with people who had been in China, but did not fit the category as Trump’s “travel ban” defined it.
  • January 31, 2020: On the same day Trump was enacting his fake travel ban, Foreign Policy reports that face masks and latex gloves are sold out on Amazon and at leading stores in New York City and suggests the surge in masks being sold to other countries needs “refereeing” in the face of the coming crisis.
  • February 4, 2020: Gottlieb and Borio take to the WSJ again, this time to warn the president that “a pandemic seems inevitable” and call on the administration to dramatically expand testing, expand the number of labs for reviewing tests, and change the rules to allow for tests of people even if they don’t have a clear known risk factor.
  • Note: Some of these recommendations were eventually implemented—25 days later.
  • February 5, 2020: HHS Secretary Alex Azar requests $2 billion to “buy respirator masks and other supplies for a depleted federal stockpile of emergency medical equipment.” He is rebuffed by Trump and the White House OMB who eventually send Congress a $500 million request weeks later.
  • February 4 or 5, 2020: Robert Kadlec, the assistant secretary for preparedness and response, and other intelligence officials brief the Senate Intelligence Committee that the virus poses a “serious” threat and that “Americans would need to take actions that could disrupt their daily lives.”
  • February 5, 2020: Senator Chris Murphy tweets: Just left the Administration briefing on Coronavirus. Bottom line: they aren't taking this seriously enough. Notably, no request for ANY emergency funding, which is a big mistake. Local health systems need supplies, training, screening staff etc. And they need it now.
  • February 9, 2020: The Washington Post reports that a group of governors participated in a jarring meeting with Dr. Anthony Fauci and Dr. Robert Redfield that was much more alarmist than what they were hearing from Trump. “The doctors and the scientists, they were telling us then exactly what they are saying now,” Maryland Gov. Larry Hogan (R) said.
  • the administration lifted CDC restrictions on tests. This is a factually true statement. But it elides that fact that they did so on March 3—two critical weeks after the third Borio/Gottlieb op-ed on the topic, during which time the window for intervention had shrunk to a pinhole.
  • February 20, 2020: Borio and Gottlieb write in the Wall Street Journal that tests must be ramped up immediately “while we can intervene to stop spread.”
  • February 23, 2020: Harvard School of Public Health professor issues warning on lack of test capability: “As of today, the US remains extremely limited in#COVID19 testing. Only 3 of ~100 public health labs haveCDC test kits working and CDC is not sharing what went wrong with the kits. How to know if COVID19 is spreading here if we are not looking for it.
  • February 24, 2020: The Trump administration sends a letter to Congress requesting a small dollar amount—between $1.8 billion and $2.5 billion—to help combat the spread of the coronavirus. This is, of course, a pittance
  • February 25, 2020: Messonier says she expects “community spread” of the virus in the United States and that “disruption to everyday life might be severe.” Trump is reportedly furious and Messonier’s warnings are curtailed in the ensuing weeks.
  • Trump mocks Congress in a White House briefing, saying “If Congress wants to give us the money so easy—it wasn’t very easy for the wall, but we got that one done. If they want to give us the money, we’ll take the money.”
  • February 26, 2020: Congress, recognizing the coming threat, offers to give the administration $6 billion more than Trump asked for in order to prepare for the virus.
  • February 27, 2020: In a leaked audio recording Sen. Richard Burr, chairman of the Intelligence Committee and author of the Pandemic and All-Hazards Preparedness Act (PAHPA) and the Pandemic and All-Hazards Preparedness and Advancing Innovation Act (reauthorization of PAHPA), was telling people that COVID-19 “is probably more akin to the 1918 pandemic.”
  • March 4, 2020: HHS says they only have 1 percent of respirator masks needed if the virus became a “full-blown pandemic.”
  • March 3, 2020: Vice President Pence is asked about legislation encouraging companies to produce more masks. He says the Trump administration is “looking at it.”
  • March 7, 2020: Fox News host Tucker Carlson, flies to Mar-a-Lago to implore Trump to take the virus seriously in private rather than embarrass him on TV. Even after the private meeting, Trump continued to downplay the crisis
  • March 9, 2020: Tom Bossert, Trump’s former Homeland Security adviser, publishes an op-ed saying it is “now or never” to act. He advocates for social distancing and school closures to slow the spread of the contagion.
  • Trump says that developments are “good for the consumer” and compares COVID-19 favorably to the common flu.
  • March 17, 2020: Facing continued shortages of the PPE equipment needed to prevent healthcare providers from succumbing to the virus, Oregon Senators Jeff Merkeley and Ron Wyden call on Trump to use the Defense Production Act to expand supply of medical equipment
  • March 18, 2020: Trump signs the executive order to activate the Defense Production Act, but declines to use it
  • At the White House briefing he is asked about Senator Chuck Schumer’s call to urgently produce medical supplies and ventilators. Trump responds: “Well we’re going to know whether or not it’s urgent.” Note: At this point 118 Americans had died from COVID-19.
  • March 20, 2020: At an April 2nd White House Press Conference, President Trump’s son-in-law Jared Kushner who was made ad hoc point man for the coronavirus response said that on this date he began working with Rear Admiral John Polowczyk to “build a team” that would handle the logistics and supply chain for providing medical supplies to the states. This suggestion was first made by former Trump Administration officials January 28th
  • March 22, 2020: Six days after calling for a 15-day period of distancing, Trump tweets that this approach “may be worse than the problem itself.”
  • March 24, 2020: Trump tells Fox News that he wants the country opened up by Easter Sunday (April 12)
  • As Trump was speaking to Fox, there were 52,145 confirmed cases in the United States and the doubling time for daily new cases was roughly four days.
rerobinson03

Opinion | How Betsy DeVos Has Influenced Education Policy's Future - The New York Times - 0 views

  • hough Ms. DeVos has been mostly stymied, both by Trumpism’s policy indifference and progressive opposition, her legacy will still be far-reaching and long-lasting. This is not a result of what she made, but of what she broke:
  • Yet Ms. DeVos has also elevated the education policy agenda of the far right, giving voice and legitimacy to a campaign to fundamentally dismantle public education. That campaign, pursued for the past few decades only in deep-red
  • states, and often perceived as belonging to the libertarian fringe, has become the de facto agenda of the Republican Party.
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  • More than three decades ago, conventional Republicans and centrist Democrats signed on to an unwritten treaty. Conservatives agreed to mute their push for private school vouchers, their preference for religious schools and their desire to slash spending on public school systems. In return, Democrats effectively gave up the push for school integration and embraced policies that reined in teachers unions.
  • Curiously, the only time during her tenure that she prominently supported standardized testing was during the pandemic — a move seemingly intended to make public schools, which would obviously struggle to manage the task, look bad.
  • $5 billion annual tax credit for private school tuition, Ms. DeVos and her allies have made tremendous inroads at the state level.
  • And this past summer, the Supreme Court in Espinoza v. Montana declared that states could not bar religious schools from participating in state programs that provide scholarships to students attending private schools, clearing the way for further private expansion.
  • To capitalize on voter dissatisfaction with education policies in the coming years, Democrats can no longer lean on maligning Ms. DeVos.
  • And while Mr. Biden’s expansive (and expensive) education plans will confront the harsh reality of partisan division in Congress, he is guaranteed a powerful megaphone — one that he’ll share, not just with the next secretary of education, but with a former high-school teacher and current community-college professor, Jill Biden.
Javier E

Opinion | Vaccine Hesitancy Is About Trust and Class - The New York Times - 0 views

  • The world needs to address the root causes of vaccine hesitancy. We can’t go on believing that the issue can be solved simply by flooding skeptical communities with public service announcements or hectoring people to “believe in science.”
  • For the past five years, we’ve conducted surveys and focus groups abroad and interviewed residents of the Bronx to better understand vaccine avoidance.
  • We’ve found that people who reject vaccines are not necessarily less scientifically literate or less well-informed than those who don’t. Instead, hesitancy reflects a transformation of our core beliefs about what we owe one another.
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  • Over the past four decades, governments have slashed budgets and privatized basic services. This has two important consequences for public health
  • First, people are unlikely to trust institutions that do little for them.
  • second, public health is no longer viewed as a collective endeavor, based on the principle of social solidarity and mutual obligation. People are conditioned to believe they’re on their own and responsible only for themselves.
  • an important source of vaccine hesitancy is the erosion of the idea of a common good.
  • “People are thinking, ‘If the government isn’t going to do anything for us,’” said Elden, “‘then why should we participate in vaccines?’”
  • Since the spring, when most American adults became eligible for Covid vaccines, the racial gap in vaccination rates between Black and white people has been halved. In September, a national survey found that vaccination rates among Black and white Americans were almost identical.
  • Other surveys have determined that a much more significant factor was college attendance: Those without a college degree were the most likely to go unvaccinated.
  • Education is a reliable predictor of socioeconomic status, and other studies have similarly found a link between income and vaccination.
  • It turns out that the real vaccination divide is class.
  • compared with white Americans, communities of color do experience the American health care system differently. But a closer look at the data reveals a more complicated picture.
  • during the 1950s polio campaigns, for example, most people saw vaccination as a civic duty.
  • But as the public purse shrunk in the 1980s, politicians insisted that it’s no longer the government’s job to ensure people’s well-being; instead, Americans were to be responsible only for themselves and their own bodies
  • Entire industries, such as self-help and health foods, have sprung up on the principle that the key to good health lies in individuals making the right choices.
  • Without an idea of the common good, health is often discussed using the language of “choice.”
  • there are problems with reducing public health to a matter of choice. It gives the impression that individuals are wholly responsible for their own health.
  • This is despite growing evidence that health is deeply influenced by factors outside our control; public health experts now talk about the “social determinants of health,” the idea that personal health is never simply just a reflection of individual lifestyle choices, but also the class people are born into, the neighborhood they grew up in and the race they belong to.
  • food deserts and squalor are not easy problems to solve — certainly not by individuals or charities — and they require substantial government action.
  • Many medical schools teach “motivational interviewing,”
  • the deeper problem:
  • Being healthy is not cheap. Studies indicate that energy-dense foods with less nutritious value are more affordable, and low-cost diets are linked to obesity and insulin resistance.
  • This isn’t surprising, since we shop for doctors and insurance plans the way we do all other goods and services
  • Another problem with reducing well-being to personal choice is that this treats health as a commodity.
  • mothers devoted many hours to “researching” vaccines, soaking up parental advice books and quizzing doctors. In other words, they act like savvy consumers
  • When thinking as a consumer, people tend to downplay social obligations in favor of a narrow pursuit of self-interest. As one parent told Reich, “I’m not going to put my child at risk to save another child.”
  • Such risk-benefit assessments for vaccines are an essential part of parents’ consumer research.
  • Vaccine uptake is so high among wealthy people because Covid is one of the gravest threats they face. In some wealthy Manhattan neighborhoods, for example, vaccination rates run north of 90 percent.
  • For poorer and working-class people, though, the calculus is different: Covid-19 is only one of multiple grave threats.
  • When viewed in the context of the other threats they face, Covid no longer seems uniquely scary.
  • Most of the people we interviewed in the Bronx say they are skeptical of the institutions that claim to serve the poor but in fact have abandoned them.
  • he and his friends find reason to view the government’s sudden interest in their well-being with suspicion. “They are over here shoving money at us,” a woman told us, referring to a New York City offer to pay a $500 bonus to municipal workers to get vaccinated. “And I’m asking, why are you so eager, when you don’t give us money for anything else?”
  • These views reinforce the work of social scientists who find a link between a lack of trust and inequality. And without trust, there is no mutual obligation, no sense of a common good.
  • The experience of the 1960s suggests that when people feel supported through social programs, they’re more likely to trust institutions and believe they have a stake in society’s health.
  • Research shows that private systems not only tend to produce worse health outcomes than public ones, but privatization creates what public health experts call “segregated care,” which can undermine the feelings of social solidarity that are critical for successful vaccination drives
  • In one Syrian city, for example, the health care system now consists of one public hospital so underfunded that it is notorious for poor care, a few private hospitals offering high-quality care that are unaffordable to most of the population, and many unlicensed and unregulated private clinics — some even without medical doctors — known to offer misguided health advice. Under such conditions, conspiracy theories can flourish; many of the city’s residents believe Covid vaccines are a foreign plot.
  • In many developing nations, international aid organizations are stepping in to offer vaccines. These institutions are sometimes more equitable than governments, but they are often oriented to donor priorities, not community needs.
  • “We have starvation and women die in childbirth.” one tribal elder told us, “Why do they care so much about polio? What do they really want?”
  • In America, anti-vaccine movements are as old as vaccines themselves; efforts to immunize people against smallpox prompted bitter opposition in the turn of the last century. But after World War II, these attitudes disappeared. In the 1950s, demand for the polio vaccine often outstripped supply, and by the late 1970s, nearly every state had laws mandating vaccinations for school with hardly any public opposition.
  • What changed? This was the era of large, ambitious government programs like Medicare and Medicaid.
  • The anti-measles policy, for example, was an outgrowth of President Lyndon Johnson’s Great Society and War on Poverty initiatives.
  • While the reasons vary by country, the underlying causes are the same: a deep mistrust in local and international institutions, in a context in which governments worldwide have cut social services.
  • Only then do the ideas of social solidarity and mutual obligation begin to make sense.
  • The types of social programs that best promote this way of thinking are universal ones, like Social Security and universal health care.
  • If the world is going to beat the pandemic, countries need policies that promote a basic, but increasingly forgotten, idea: that our individual flourishing is bound up in collective well-being.
Javier E

Opinion | The Superyachts of Billionaires Are Starting to Look a Lot Like Theft - The N... - 0 views

  • taking on the carbon aristocracy, and their most emissions-intensive modes of travel and leisure, may be the best chance we have to boost our collective “climate morale” and increase our appetite for personal sacrifice — from individual behavior changes to sweeping policy mandates.
  • the diesel fuel powering Mr. Geffen’s boating habit spews an estimated 16,320 tons of carbon-dioxide-equivalent gases into the atmosphere annually, almost 800 times what the average American generates in a year.
  • The 300 biggest boats alone emit 315,000 tons of carbon dioxide each year, based on their likely usage — about as much as Burundi’s more than 10 million inhabitan
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  • Worldwide, more than 5,500 private vessels clock in about 100 feet or longer, the size at which a yacht becomes a superyacht.
  • France’s minister of the environment, dismissed calls to regulate yachts and chartered flights as “le buzz” — flashy, populist solutions that get people amped up but ultimately only fiddle at the margins of climate change.
  • Private aviation added 37 million tons of carbon dioxide to the atmosphere in 2016, which rivals the annual emissions of Hong Kong or Irelan
  • Indeed, a 200-foot vessel burns 132 gallons of diesel fuel an hour standing still, and can guzzle 2,200 gallons just to travel 100 nautical miles.
  • this misses a much more important point. Research in economics and psychology suggests humans are willing to behave altruistically — but only when they believe everyone is being asked to contribute. People “stop cooperating when they see that some are not doing their part,” as the cognitive scientists Nicolas Baumard and Coralie Chevallie
  • In that sense, superpolluting yachts and jets don’t just worsen climate change, they lessen the chance that we will work together to fix it. Why bother, when the luxury goods mogul Bernard Arnault is cruising around on the Symphony, a $150 million, 333-foot superyacht?
  • making these overgrown toys a bit more costly isn’t likely to change the behavior of the billionaires who buy them. Instead, we can impose new social costs through good, old-fashioned shaming.
  • “kylie jenner is out here taking 3 minute flights with her private jet, but I’m the one who has to use paper straws,” one Twitter user wrote.
  • When billionaires squander our shared supply of resources on ridiculous boats or cushy chartered flights, it shortens the span of time available for the rest of us before the effects of warming become truly devastating. In this light, superyachts and private planes start to look less like extravagance and more like theft.
Javier E

The 'Black Hole' That Sucks Up Silicon Valley's Money - The Atlantic - 0 views

  • That’s not to say that Silicon Valley’s wealthy aren’t donating their money to charity. Many, including Mark Zuckerberg, Elon Musk, and Larry Page, have signed the Giving Pledge, committing to dedicating the majority of their wealth to philanthropic causes. But much of that money is not making its way out into the community.
  • The San Francisco Bay Area has rapidly become the richest region in the country—the Census Bureau said last year that median household income was $96,777. It’s a place where $100,000 Teslas are commonplace, “raw water” goes for $37 a jug, and injecting clients with the plasma of youth —a gag on the television show Silicon Valley—is being tried by real companies for just $8,000 a pop.
  • There are many reasons for this, but one of them is likely the increasing popularity of a certain type of charitable account called a donor-advised fund. These funds allow donors to receive big tax breaks for giving money or stock, but have little transparency and no requirement that money put into them is actually spent.
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  • Donor-advised funds are categorized by law as public charities, rather than private foundations, so they have no payout requirements and few disclosure requirements.
  • And wealthy residents of Silicon Valley are donating large sums to such funds
  • critics say that in part because of its structure as a warehouse of donor-advised funds, the Silicon Valley Community Foundation has not had a positive impact on the community it is meant to serve. Some people I talked to say the foundation has had little interest in spending money, because its chief executive, Emmett Carson, who was placed on paid administrative leave after the Chronicle’s report, wanted it to be known that he had created one of the biggest foundations in the country. Carson was “aggressive” about trying to raise money, but “unaggressive about suggesting what clients would do with it,”
  • “Most of us in the local area have seen our support from the foundation go down and not up,” he said.
  • The amount of money going from the Silicon Valley Community Foundation to the nine-county Bay Area actually dropped in 2017 by 46 percent, even as the amount of money under management grew by 64 percent, to $13.5 billion
  • “They got so drunk on the idea of growth that they lost track of anything smacking of mission,” he said. It did not help perceptions that the foundation opened offices in New York and San Francisco at the same time local organizations were seeing donations drop.
  • The foundation now gives her organization some grants, but they don’t come from the donor-advised funds, she told me. “I haven’t really cracked the code of how to access those donor-advised funds,” she said. Her organization had been getting between $50,000 and $100,000 a year from United Way that it no longer gets, she said,
  • Rob Reich, the co-director of the Stanford Center on Philanthropy and Civil Society, set up a donor-advised fund at the Silicon Valley Community Foundation as an experiment. He spent $5,000—the minimum amount accepted—and waited. He received almost no communication from the foundation, he told me. No emails or calls about potential nonprofits to give to, no information about whether the staff was out looking for good opportunities in the community, no data about how his money was being managed.
  • One year later, despite a booming stock market, his account was worth less than the $5,000 he had put in, and had not been used in any way in the community. His balance was lower because the foundation charges hefty fees to donors who keep their money there. “I was flabbergasted,” he told me. “I didn’t understand what I, as a donor, was getting for my fees.”
  • Though donors receive a big tax break for donating to donor-advised funds, the funds have no payout requirements, unlike private foundations, which are required to disperse 5 percent of their assets each year. With donor-advised funds, “there’s no urgency and no forced payout,”
  • he had met wealthy individuals who said they were setting up donor-advised funds so that their children could disperse the funds and learn about philanthropy—they had no intent to spend the money in their own lifetimes.
  • Fund managers also receive fees for the amount of money they have under management, which means they have little incentive to encourage people to spend the money in their accounts,
  • Transparency is also an issue. While foundations have to provide detailed information about where they give their money, donor-advised funds distributions are listed as gifts made from the entire charitable fund—like the Silicon Valley Community Foundation—rather than from individuals.
  • Donor-advised funds can also be set up anonymously, which makes it hard for nonprofits to engage with potential givers. They also don’t have websites or mission statements like private foundations do, which can make it hard for nonprofits to know what causes donors support.
  • Public charities—defined as organizations that receive a significant amount of their revenue from small donations—were saddled with less oversight, in part because Congress figured that their large number of donors would make sure they were spending their money well, Madoff said. But an attorney named Norman Sugarman, who represented the Jewish Community Federation of Cleveland, convinced the IRS to categorize a certain type of asset—charitable dollars placed in individually named accounts managed by a public charity—as donations to public, not private, foundations.
  • Donor-advised funds have been growing nationally as the amount of money made by the top 1 percent has grown: Contributions to donor-advised funds grew 15.1 percent in fiscal year 2016, according to The Chronicle of Philanthropy, while overall charitable contributions grew only 1.4 percent that year
  • Six of the top 10 philanthropies in the country last year, in terms of the amount of nongovernmental money raised, were donor-advised funds,
  • In addition, those funds with high payout rates could just be giving to another donor-advised fund, rather than to a public charity, Madoff says. One-quarter of donor-advised fund sponsors distribute less than 1 percent of their assets in a year,
  • Groups that administer donor-advised funds defend their payout rate, saying distributions from donor-advised funds are around 14 percent of assets a year. But that number can be misleading, because one donor-advised fund could give out all its money, while many more could give out none, skewing the data.
  • Donor-advised funds are especially popular in places like Silicon Valley because they provide tax advantages for donating appreciated stock, which many start-up founders have but don’t necessarily want to pay huge taxes on
  • Donors get a tax break for the value of the appreciated stock at the time they donate it, which can also spare them hefty capital-gains taxes. “Anybody with a business interest can give their business interest before it goes public and save huge amounts of taxes,”
  • Often, people give to donor-advised funds right before a public event like an initial public offering, so they can avoid the capital-gains taxes they’d otherwise have to pay, and instead receive a tax deduction. Mark Zuckerberg and Priscilla Chan gave $500 million in stock to the foundation in 2012, when Facebook held its initial public offering, and also donated $1 billion in stock in 2013
  • Wealthy donors can also donate real estate and deduct the value of real estate at the time of the donation—if they’d given to a private foundation, they’d only be able to deduct the donor’s basis value (typically the purchase price) of the real estate at the time they acquired it. The difference can be a huge amount of money in the hot market of California.
Javier E

What Americans Keep Ignoring About Finland's School Success - Anu Partanen - The Atlantic - 0 views

  • in recent years Finnish students have been turning in some of the highest test scores in the world.
  • The survey compares 15-year-olds in different countries in reading, math, and science. Finland has ranked at or near the top in all three competencies on every survey since 2000, neck and neck with superachievers such as South Korea and Singapore.
  • Compared with the stereotype of the East Asian model -- long hours of exhaustive cramming and rote memorization -- Finland's success is especially intriguing because Finnish schools assign less homework and engage children in more creative play
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  • "There's no word for accountability in Finnish," he later told an audience at the Teachers College of Columbia University. "Accountability is something that is left when responsibility has been subtracted."
  • Only a small number of independent schools exist in Finland, and even they are all publicly financed. None is allowed to charge tuition fees. There are no private universities, either. This means that practically every person in Finland attends public school, whether for pre-K or a Ph.D.
  • From his point of view, Americans are consistently obsessed with certain questions: How can you keep track of students' performance if you don't test them constantly? How can you improve teaching if you have no accountability for bad teachers or merit pay for good teachers? How do you foster competition and engage the private sector? How do you provide school choice?
  • Finland has no standardized tests. The only exception is what's called the National Matriculation Exam, which everyone takes at the end of a voluntary upper-secondary school, roughly the equivalent of American high school.
  • Instead, the public school system's teachers are trained to assess children in classrooms using independent tests they create themselves. All children receive a report card at the end of each semester, but these reports are based on individualized grading by each teacher.
  • "Oh," he mentioned at one point, "and there are no private schools in Finland."
  • what matters is that in Finland all teachers and administrators are given prestige, decent pay, and a lot of responsibility. A master's degree is required to enter the profession, and teacher training programs are among the most selective professional schools in the country. If a teacher is bad, it is the principal's responsibility to notice and deal with it.
  • "Real winners do not compete." It's hard to think of a more un-American idea, but when it comes to education, Finland's success shows that the Finnish attitude might have merits. There are no lists of best schools or teachers in Finland. The main driver of education policy is not competition between teachers and between schools, but cooperation.
  • the number of foreign-born residents in Finland doubled during the decade leading up to 2010, and the country didn't lose its edge in education. Immigrants tended to concentrate in certain areas, causing some schools to become much more mixed than others, yet there has not been much change in the remarkable lack of variation between Finnish schools in the PISA surveys across the same period.
  • Decades ago, when the Finnish school system was badly in need of reform, the goal of the program that Finland instituted, resulting in so much success today, was never excellence. It was equity.
  • Since the 1980s, the main driver of Finnish education policy has been the idea that every child should have exactly the same opportunity to learn, regardless of family background, income, or geographic location. Education has been seen first and foremost not as a way to produce star performers, but as an instrument to even out social inequality.
  • this means that schools should be healthy, safe environments for children. This starts with the basics. Finland offers all pupils free school meals, easy access to health care, psychological counseling, and individualized student guidance.
  • In fact, since academic excellence wasn't a particular priority on the Finnish to-do list, when Finland's students scored so high on the first PISA survey in 2001, many Finns thought the results must be a mistake. But subsequent PISA tests confirmed that Finland -- unlike, say, very similar countries such as Norway -- was producing academic excellence through its particular policy focus on equity.
  • Finally, in Finland, school choice is noticeably not a priority, nor is engaging the private sector at all.
  • Like Finland, Norway is small and not especially diverse overall, but unlike Finland it has taken an approach to education that is more American than Finnish. The result? Mediocre performance in the PISA survey. Educational policy, Abrams suggests, is probably more important to the success of a country's school system than the nation's size or ethnic makeup.
  • there were 18 states in the U.S. in 2010 with an identical or significantly smaller percentage of foreign-born residents than Finland
  • the goal of educational policy in the U.S. -- as articulated by most everyone from President Obama on down -- is to preserve American competitiveness by doing the same thing. Finland's experience suggests that to win at that game, a country has to prepare not just some of its population well, but all of its population well, for the new economy.
  • Finland's experience shows that it is possible to achieve excellence by focusing not on competition, but on cooperation, and not on choice, but on equity
  • The problem facing education in America isn't the ethnic diversity of the population but the economic inequality of society, and this is precisely the problem that Finnish education reform addressed. More equity at home might just be what America needs to be more competitive abroad.
Javier E

"The Story of Our Time" - NYTimes.com - 0 views

  • The Story of Our Time
  • Let’s start with what may be the most crucial thing to understand: the economy is not like an individual family. Families earn what they can, and spend as much as they think prudent; spending and earning opportunities are two different things. In the economy as a whole, however, income and spending are interdependent: my spending is your income, and your spending is my income. If both of us slash spending at the same time, both of our incomes will fall too. And that’s what happened after the financial crisis of 2008. Many people suddenly cut spending, either because they chose to or because their creditors forced them to; meanwhile, not many people were able or willing to spend more. The result was a plunge in incomes that also caused a plunge in employment, creating the depression that persists to this day.
  • So what could we do to reduce unemployment? The answer is, this is a time for above-normal government spending, to sustain the economy until the private sector is willing to spend again. The crucial point is that under current conditions, the government is not, repeat not, in competition with the private sector. Government spending doesn’t divert resources away from private uses; it puts unemployed resources to work. Government borrowing doesn’t crowd out private investment; it mobilizes funds that would otherwise go unused.
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  • By all means let’s try to reduce deficits and bring down government indebtedness once normal conditions return and the economy is no longer depressed. But right now we’re still dealing with the aftermath of a once-in-three-generations financial crisis. This is no time for austerity.
  • just look at the predictions the two sides in this debate have made. People like me predicted right from the start that large budget deficits would have little effect on interest rates, that large-scale “money printing” by the Fed (not a good description of actual Fed policy, but never mind) wouldn’t be inflationary, that austerity policies would lead to terrible economic downturns. The other side jeered, insisting that interest rates would skyrocket and that austerity would actually lead to economic expansion. Ask bond traders, or the suffering populations of Spain, Portugal and so on, how it actually turned out.
Javier E

The Austerity Agenda - NYTimes.com - 0 views

  • why is Britain doing exactly what it shouldn’t? Unlike the governments of, say, Spain or California, the British government can borrow freely, at historically low interest rates. So why is that government sharply reducing investment and eliminating hundreds of thousands of public-sector jobs, rather than waiting until the economy is stronger
  • I’ve posed that question to a number of supporters of the government of Prime Minister David Cameron, sometimes in private, sometimes on TV. And all these conversations followed the same arc: They began with a bad metaphor and ended with the revelation of ulterior motives.
  • The bad metaphor — which you’ve surely heard many times — equates the debt problems of a national economy with the debt problems of an individual family. A family that has run up too much debt, the story goes, must tighten its belt. So if Britain, as a whole, has run up too much debt — which it has, although it’s mostly private rather than public debt — shouldn’t it do the same? What’s wrong with this comparison?
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  • The answer is that an economy is not like an indebted family. Our debt is mostly money we owe to each other; even more important, our income mostly comes from selling things to each other. Your spending is my income, and my spending is your income.
  • So what happens if everyone simultaneously slashes spending in an attempt to pay down debt? The answer is that everyone’s income falls — my income falls because you’re spending less, and your income falls because I’m spending less. And, as our incomes plunge, our debt problem gets worse, not better.
  • The great American economist Irving Fisher explained it all the way back in 1933, summarizing what he called “debt deflation” with the pithy slogan “the more the debtors pay, the more they owe.
  • there’s a clear moral to this story: When the private sector is frantically trying to pay down debt, the public sector should do the opposite, spending when the private sector can’t or won’t. By all means, let’s balance our budget once the economy has recovered — but not now. The boom, not the slump, is the right time for austerity.
  • when you push “austerians” on the badness of their metaphor, they almost always retreat to assertions along the lines of: “But it’s essential that we shrink the size of the state.”
  • these assertions often go along with claims that the economic crisis itself demonstrates the need to shrink government. But that’s manifestly not true. Look at the countries in Europe that have weathered the storm best, and near the top of the list you’ll find big-government nations like Sweden and Austria.
  • So the austerity drive in Britain isn’t really about debt and deficits at all; it’s about using deficit panic as an excuse to dismantle social programs. And this is, of course, exactly the same thing that has been happening in America.
  • The big question here is whether the evident failure of austerity to produce an economic recovery will lead to a “Plan B.” Maybe. But my guess is that even if such a plan is announced, it won’t amount to much. For economic recovery was never the point; the drive for austerity was about using the crisis, not solving it. And it still is.
Javier E

What Americans Keep Ignoring About Finland's School Success - Anu Partanen - National -... - 0 views

  • there are certain things nobody in America really wants to talk about.
  • "Oh," he mentioned at one point, "and there are no private schools in Finland."
  • Only a small number of independent schools exist in Finland, and even they are all publicly financed. None is allowed to charge tuition fees. There are no private universities, either. This means that practically every person in Finland attends public school, whether for pre-K or a Ph.D.
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  • Americans are consistently obsessed with certain questions: How can you keep track of students' performance if you don't test them constantly? How can you improve teaching if you have no accountability for bad teachers or merit pay for good teachers? How do you foster competition and engage the private sector? How do you provide school choice?
  • The answers Finland provides seem to run counter to just about everything America's school reformers are trying to do.
  • Finland has no standardized tests
  • Instead, the public school system's teachers are trained to assess children in classrooms using independent tests they create themselves.
  • As for accountability of teachers and administrators, Sahlberg shrugs. "There's no word for accountability in Finnish," he later told an audience at the Teachers College of Columbia University. "Accountability is something that is left when responsibility has been subtracted."
  • For Sahlberg what matters is that in Finland all teachers and administrators are given prestige, decent pay, and a lot of responsibility. A master's degree is required to enter the profession, and teacher training programs are among the most selective professional schools in the country. If a teacher is bad, it is the principal's responsibility to notice and deal with it
  • Decades ago, when the Finnish school system was badly in need of reform, the goal of the program that Finland instituted, resulting in so much success today, was never excellence. It was equity.
  • There are no lists of best schools or teachers in Finland. The main driver of education policy is not competition between teachers and between schools, but cooperation
  • in Finland, school choice is noticeably not a priority, nor is engaging the private sector at all.
  • And while Americans love to talk about competition, Sahlberg points out that nothing makes Finns more uncomfortable.
  • ince the 1980s, the main driver of Finnish education policy has been the idea that every child should have exactly the same opportunity to learn, regardless of family background, income, or geographic location. Education has been seen first and foremost not as a way to produce star performers, but as an instrument to even out social inequality.
  • this means that schools should be healthy, safe environments for children. This starts with the basics. Finland offers all pupils free school meals, easy access to health care, psychological counseling, and individualized student guidance.
  • Samuel Abrams, a visiting scholar at Columbia University's Teachers College, has addressed the effects of size and homogeneity on a nation's education performance by comparing Finland with another Nordic country: Norway. Like Finland, Norway is small and not especially diverse overall, but unlike Finland it has taken an approach to education that is more American than Finnish. The result? Mediocre performance in the PISA survey
  • the goal of educational policy in the U.S. -- as articulated by most everyone from President Obama on down -- is to preserve American competitiveness by doing the same thing. Finland's experience suggests that to win at that game, a country has to prepare not just some of its population well, but all of its population well, for the new economy. To possess some of the best schools in the world might still not be good enough if there are children being left behind.
  • Finland's dream was that we want to have a good public education for every child regardless of where they go to school or what kind of families they come from, and many even in Finland said it couldn't be done." Clearly, many were wrong. It is possible to create equality
  • Finland's experience shows that it is possible to achieve excellence by focusing not on competition, but on cooperation, and not on choice, but on equity.
redavistinnell

Hillary Aides Knew of Private Email Risks - The Daily Beast - 0 views

  • Hillary Aides Knew of Private Email Risks
  • In one June 2011 email, recently-departed Director of Policy Planning Anne-Marie Slaughter wrote that senior State Department officials, “routinely end up using their home email accounts” due to the antiquated nature of the State Department’s technology, and that someone inside or outside the department should issue a statement or op-ed on the “woeful state” of affairs.
  • On another email chain, in July 2011, Clinton joked about being hacked by the Chinese. After not being able to find the email of a State Department staffer, she wrote: “must be the Chinese!”
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  • More than 37 percent of the Clinton’s email collection held by State has now been released.
  • Clinton aide Jake Sullivan also expressed concerns, according to the email thread, leading Slaughter to back off from the idea. “Perhaps a better approach is to make the point more quietly to legislators through H[illary],” she concludes.
  • . If an attachment was opened, the AP noted, hackers would have been able to take control of Clinton’s computer.
  • Much of the attention on the Democratic presidential favorite’s personal email account has been drawn by the special committee expressly set up by House Republicans to investigate the 2012 attacks in Benghazi, which killed four Americans including the U.S. Ambassador.
  • Democrats pointed out that the committee has spent $4.5 million and has been around longer than the committee set up to investigate Watergate.
  • “Taxpayer dollars should be spent to improve the quality of life for the American people, not to fuel a naked political attack,” said the top Democrat on the committee, Rep. Adam Smith.
Javier E

High School Football Inc. - The New York Times - 0 views

  • Their assuredness is as bold as the company behind the school: IMG, the global sports management conglomerate that has helped propel the competitive leap that high school football has made beyond the traditional community team.
  • convention is being challenged by a more professional model at the highest levels as top players urgently pursue college scholarships, training becomes more specialized, big business opens its wallet, school choice expands, and schools seek to market themselves through sports, some for financial survival.
  • Increasingly, prep football talent is being consolidated on powerful public, private, parochial, charter and magnet school teams. And recruiting to those schools is widespread in one guise or another.
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  • IMG is at the forefront. It is trying to enhance its academy brand with football, perhaps the most visible sport. And it is applying a business model to the gridiron that has long been profitable for tennis and has expanded to golf, soccer, baseball, basketball, lacrosse, and track and field. The academy has nearly 1,000 students from more than 80 countries enrolled in prekindergarten through 12th grade and postgraduation. About half the students are international.
  • Although it is private, IMG Academy has received more than $7 million from the Florida state budget over the past two years, according to news accounts. An additional $2 million was pledged by lawmakers in June but was then vetoed by Gov. Rick Scott.
  • The full cost of tuition and boarding for a year of football at IMG Academy is $70,800, although need-based financial assistance is available. School officials would not provide specific figures, but they said that payments by families could range from tens of thousands of dollars to a competition fee (between $3,750 and $4,500) to nothing.
  • IMG bought the academy in 1987, and it now covers more than 500 acres. Football began in 2013 as part of a $197 million campus expansion. Games are played in a 5,000-seat stadium outfitted with suites and a jumbo video screen. Digital screens depict each player’s name and face on his locker. Some N.F.L. players train there in the off-season, as do college players preparing for the pro draft.
  • The school, 45 miles south of Tampa, recruits football players from around the country, offering high-performance training, college preparatory courses, coaches with N.F.L. playing experience, facilities that resemble a small college more than a high school, and a chance to play a national schedule and on national television on ESPN against some of the country’s highest-rated teams.
  • “We run a business,” said Chip McCarthy, a co-managing director of IMG Academy. “We call it sales and marketing. Some people call it recruiting. We’re promoting our program. If you look at any private school that emphasizes sports, they’re typically doing it to promote their school. A lot are trying to survive. You’re not going to curtail that.”
  • Many high school football coaches and officials are closely following IMG Academy, wondering whether it portends the growth of similar academies or superleagues featuring top teams.
  • “I’m 50-50 split,” said John Wilkinson, the coach at Cocoa High School, who faced IMG Academy last week and said he would do it again. “They’re high school kids, just like us. We’re playing a football game. The other 50 percent thinks the competitive advantage they have is kind of alarming, if they’re allowed to recruit. But it is what it is.”
  • Other officials express fear that football might follow the path of high school basketball, which many feel has been corrupted by so-called diploma mills and the heavy influence of club teams and recruiting middlemen.
  • Mickey McCarty, who has coached three state championship teams at Neville High School in Monroe, La., and who lost a senior receiver to IMG Academy days before fall practice began, said the academy seemed less a traditional football team than a showcase for individual talent.
  • “It sounds to me like they’re playing for self, to be promoted and recruited, which takes away everything we stand for,” McCarty said.
  • Academy officials said that 186 athletes from IMG’s 2015 graduating class were playing various college sports, including six at Ivy League universities and four at service academies. Academics and athletics are intended to simulate the college experience with dormitory living, alternate-day classes, block scheduling and a focus on time management.
  • “I came here assuming it was going to be easy, it’s just going to be a football school, but I learned within the first week I was completely wrong,” said Kjetil Cline, 17, a senior receiver from Minnesota who plans to play football at the United States Military Academy. “That really opened my eyes about what college would be like, and I think it’s really prepared me for going to West Point and being able to handle that.”
  • “Academy teams, while they may be good teams and give great educations, it’s not something that we really believe in or would promote or espouse in any way. We think the high school experience is best served by the student-athlete who lives at home with his family and is part of his school, family and community.”
  • The players at IMG and their families consider that approach to be antiquated. For Patterson, a quarterback who won state championships the previous two seasons at a high school in Louisiana, IMG Academy is serving as a finishing school.
  • Patterson said he transferred to IMG in June to work on his speed, strength and conditioning. He plans to graduate in December, enroll for the spring semester at the University of Mississippi and challenge for the starting quarterback position there next fall as a freshman.“It’s definitely a professional decision,” he said.
  • teve Walsh, IMG Academy’s director of football, and Rich Bartel, the offensive coordinator, both played quarterback in the N.F.L. There are also sports psychologists, strength coaches and speed coaches to assist Patterson. He has at his disposal a 10,000-square-foot weight room; a sports science center to aid with hydration and nutrition; a biomechanics center; a vision lab, or “mind gym,” to enhance perceptual and cognitive skills; and a hospital for special surgery and sports rehabilitation should he be injured.
  • When IMG Academy played in Texas this month, it trained at Texas Christian University, and Wright, the Ascenders’ coach, said, “We’re thinking, ‘Hey, our practice fields are maybe a little bit better.’ ”
  • At the top levels of high school football, some teams routinely travel to play teams in other states. Games are frequently broadcast on regional or national cable channels. Some players are offered college scholarships as early as eighth grade.
  • “It’s all driven by money, and you can’t beat money,” said John Bachman Sr., who coached Patterson to state titles the past two seasons at Calvary Baptist Academy in Shreveport, La. As a freshman, Patterson played at a high school in Texas.
  • Even so, he added, “I don’t think anything’s ever going to take the place of the local public high school or private school that pours itself into the kid, and it’s a family atmosphere and it’s about the team and sacrifice and so on.”
  • Sean Patterson Sr., Shea’s father, said, “If your son’s a great musician, you want to send him to Juilliard,” adding that for Shea, IMG Academy “is the spot” for polishing his football skills for college.
Javier E

Still Bastions of the Elite, Private City Clubs Fill New Niches - The New York Times - 0 views

  • what purpose do these places of camaraderie, contemplation and the continuance of manners serve in this digital, disconnected and overworked world?
  • For one, they’re not as expensive to join as their stately facades would suggest. According to members — the clubs don’t like to discuss prices publicly, for the most part — the annual fees generally range from several hundred dollars to nearly $10,000
  • “They have admissions policies, but you meet over drinks,” said a private banker not allowed by his firm to speak on the record but who is a member of the Yale Club and the Links Club. “They’re not nearly as restrictive as they were in 1960. You need a sponsor and letters because all of these clubs need to survive. They may have the characteristic in people’s minds of old, WASP elite clubs, but it’s far less true than it once was.”
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  • And how these clubs are used today is different from how they were used in the past. They’re largely about business, broadly defined
  • “My clients can feel comfortable that it’s safe and no one will intrude on their privacy,” he said. “Members respect privacy, and the staff enforce no photos or no cellphones to keep it a private environment. That provides a kind of safety and comfort for my clients.”
  • “Once a month, they’d have a little gathering, and you’d meet a handful of people,” he said. “Then, you’d go to one of the bars and they’d introduce you to a couple more people, and they’d introduce you to a couple of more people.”
  • “Everyone is working,” she said. “They’re going to bed earlier. They’re drinking less. Everyone is so busy with their activities and their children’s activities. It’s just a much busier, intense New York.”
Javier E

The Power of Nudges, for Good and Bad - The New York Times - 1 views

  • Nudges, small design changes that can markedly affect individual behavior, have been catching on. These techniques rely on insights from behavioral science
  • when used ethically, they can be very helpful. But we need to be sure that they aren’t being employed to sway people to make bad decisions that they will later regret.
  • Three principles should guide the use of nudges:■ All nudging should be transparent and never misleading.■ It should be as easy as possible to opt out of the nudge, preferably with as little as one mouse click.■ There should be good reason to believe that the behavior being encouraged will improve the welfare of those being nudged.
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  • the government teams in Britain and the United States that have focused on nudging have followed these guidelines scrupulously.
  • the private sector is another matter. In this domain, I see much more troubling behavior.
  • Many companies are nudging purely for their own profit and not in customers’ best interests. In a recent column in The New York Times, Robert Shiller called such behavior “phishing.” Mr. Shiller and George Akerlof, both Nobel-winning economists, have written a book on the subject, “Phishing for Phools.”
  • Some argue that phishing — or evil nudging — is more dangerous in government than in the private sector. The argument is that government is a monopoly with coercive power, while we have more choice in the private sector over which newspapers we read and which airlines we fly.
  • I think this distinction is overstated. In a democracy, if a government creates bad policies, it can be voted out of office. Competition in the private sector, however, can easily work to encourage phishing rather than stifle it.
  • One example is the mortgage industry in the early 2000s. Borrowers were encouraged to take out loans that they could not repay when real estate prices fell. Competition did not eliminate this practice, because it was hard for anyone to make money selling the advice “Don’t take that loan.”
Javier E

The Crash That Failed | by Robert Kuttner | The New York Review of Books - 0 views

  • the financial collapse of 2008. The crash demonstrated the emptiness of the claim that markets could regulate themselves. It should have led to the disgrace of neoliberalism—the belief that unregulated markets produce and distribute goods and services more efficiently than regulated ones. Instead, the old order reasserted itself, and with calamitous consequences. Gross economic imbalances of power and wealth persisted.
  • In the United States, the bipartisan financial elite escaped largely unscathed. Barack Obama, whose campaign benefited from the timing of the collapse, hired the architects of the Clinton-era deregulation who had created the conditions that led to the crisis. Far from breaking up the big banks or removing their executives, Obama’s team bailed them out.
  • criminal prosecution took a back seat to the stability of the system.
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  • the economic security of most Americans dwindled, and the legitimacy of the system was called into question. One consequence has been the rise of the far right; another is Donald Trump.
  • Germany insisted that the struggling countries had to practice austerity in order to restore the confidence of private financial markets. In a deep recession, even orthodox economists at the International Monetary Fund soon recognized that austerity was a perverse recipe for economic recovery.
  • Europe, because of Germany’s worries that these policies would lead to inflation, had no way to extend credit to struggling nations or to raise money through the sale of bonds, which would have allowed the ECB to provide debt relief or to invest in public services.
  • The political result was the same on both sides of the Atlantic—declining prospects for ordinary people, animus toward elites, and the rise of ultra-nationalism
  • Not so in Europe. Parties such as the German Social Democratic Party, the British Labour Party, and the French Socialists disgraced themselves as co-sponsors of the neoliberal formula that brought down the economy.
  • In nation after nation, the main opposition to the party of Davos is neofascism.
  • In his masterful narrative, the economic historian Adam Tooze achieves several things that no other single author has quite accomplished. Tooze has managed to explain a hugely complex global crisis in its multiple dimensions, and his book combines cogent analysis with a fascinating history of the political and economic particulars
  • when the collapse came, it was “a financial crisis triggered by the humdrum market for American real estate.”
  • the collapse reinforced the financial supremacy of Washington and New York. “Far from withering away,” he writes, “the Fed’s response gave an entirely new dimension to the global dollar.”
  • When the entire structure of borrowed money collapsed, the losses more than wiped out all the capital of the banking system—not just in the US but in Europe, because of the intimate interconnection (and contagion) of American and European banks. Had the authorities just stood by, Tooze writes, the collapse would have been far more severe than the Great Depression:
  • While insisting to Congress that the emergency response was mainly to shore up US finance, Bernanke turned the Fed into the world’s central bank. “Through so-called liquidity swap lines, the Fed licensed a hand-picked group of core central banks to issue dollar credits on demand,” Tooze writes. In other words, the Fed simply created enough dollars, running well into the trillions, to prevent the global economy from collapsing for lack of credit.
  • Bernanke instigated government action on an unimagined scale to prop up a private system that supposedly did not need the state
  • Using deposit guarantees, loans to banks, outright capital transfers, and purchases of nearly worthless securities, the Fed and the Treasury recapitalized the banking system. To camouflage what was at work, officials invented unlimited credit pipelines with disarmingly technical names.
  • The blandly named policy of quantitative easing, which drove interest rates down to almost zero, was a euphemism for Fed purchases of immense quantities of private and government securities.
  • The crisis, Tooze writes, “was a devastating blow to the complacent belief in the great moderation, a shocking overturning of the prevailing laissez-faire ideology.” And yet the ideology prevailed
  • In a reversal of New Deal priorities, most of the relief went to the biggest banks, while smaller banks and homeowners were allowed to go under
  • Banks were permitted to invent complex provisional loan “modifications” with opaque terms that favored lenders, rather than using their government subsidies to provide refinancing to reduce homeowner debts
  • How did a nominally center-left administration, elected during a financial crisis caused by right-wing economic ideology and policy, end up in this situation?
  • Turning to Europe, Tooze explores the fatal combination of Germany’s demands for austerity with the structural weakness of the ECB and the vulnerability of the euro.
  • Portugal or Greece now enjoyed interest rates that were only slightly higher than Germany’s, and markets failed to take account of the risk of default, which was more serious than that of devaluation.
  • instead of treating the Greek situation as a crisis to be contained and helping a genuinely reformist new government find its footing, Brussels and Berlin treated Greece as an object lesson in profligacy and an opportunity to insist on punitive terms for financial aid
  • A central player in this tragedy was the European Central Bank. Tooze does a fine job of explaining the delicate dance between the bank’s leaders and its real masters in Germany. Since Germany opposed continent-wide recovery spending, the bank could only pursue monetary policy. The model was the Fed. Yet while the Fed has a congressional “dual mandate” to target both price stability and high employment, the ECB’s charter allowed for price stability only
  • The ECB, with the consent of the Germans, came up with one of those bland-sounding names, Outright Monetary Transactions, for its direct purchases of government bonds. But the program, at the insistence of the Germans, was restricted to nations in compliance with Merkel’s rigid fiscal terms, which limited national deficits and debts. In other words, the money could not go to the very nations where it was needed most, since the hardest-hit countries had to borrow heavily to get themselves out of the recession
  • Reading Tooze, you realize that it’s a miracle that the EU and the euro survived at all—but they did so at terrible human cost.
  • the ideal of liberalized trade, and the use of trade treaties to promote deregulation or privatized regulation of finance, is a major element of the story of how neoliberal hegemony promoted the eventual collapse. But except for a passing reference, trade and globalized deregulation get little mention here.
  • he has almost nothing to say about Janet Yellen. Her nomination as Fed chair in 2013 to succeed Bernanke was an epochal event and an improbable defeat for the proponents of austerity, deregulation, and bank bailouts who influenced Obama’s policymaking. Yellen, a left-liberal economist specializing in labor markets, was the only left-of-center Fed chair other then FDR’s chairman Marriner Eccles. She also believed in tough regulation of banks. The extension of quantitative easing well beyond its intended end was substantially due to Yellen’s concern about wages and employment, and not just price stability, since low interest rates can also help promote recovery.
  • Tooze ends the book with a short chapter called “The Shape of Things to Come,” mainly on the ascent of China, the one nation that avoided all the shibboleths of economic and political liberalism, though it also, of course, does not have a political democracy.
Javier E

Can We Be Brutally Honest About Investment Returns? - MoneyBeat - WSJ - 0 views

  • Pension funds have fantastical expectations of the market
  • With U.S. stocks at all-time highs, it’s more important than ever that investors be brutally realistic about future returns.
  • You can learn a lot from these folks — if you listen to them and then do the opposite.
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  • A new study by finance professors Aleksandar Andonov of Erasmus University Rotterdam and Joshua Rauh of Stanford University looks at expected returns among more than 230 public pension plans with more than $2.8 trillion in combined assets.
  • For their portfolios, generally consisting of cash, U.S. and international bonds and stocks, real estate, hedge funds and private-equity or buyout funds, these pension plans report that they will earn an average of 7.6% annually over the long term. (That’s 4.8% after their estimates of inflation.) These funds often define “long term” as between 10 and 30 years.
  • Based on how they divvy up their money, how much are these pension funds assuming specific assets will earn?
  • They expect cash to return an average of 3.2% annually over the long run; bonds, 4.9%; such “real assets” as commodities and real estate, 7.7%; hedge funds, 6.9%; publicly traded stocks, 8.7%; private-equity funds, 10.3%.
  • consider bonds. The simplest reliable indicator of how much you will earn from a portfolio of bonds in the future is their yield to maturity in the present. With 10-year Treasurys yielding 2.6% and investment-grade corporate bonds averaging under 3.7%, it would take a near-miracle today to get anything close to 4% out of a high-quality fixed-income portfolio.
  • That’s below the U.S. average of 10.2% annually over the past 90 years. But stocks were far cheaper over most of that period than they are today, so their returns were naturally higher.
  • stocks aren’t likely to earn more than an average of 5.9% annually over the long run from today’s lofty prices.
  • Among those, the least implausible scenario is higher inflation. So the pension funds could hit their 8.7% stock return that way — but such a surge in the cost of living would crimp their bond returns. What they would gain on their stocks they would lose on their bonds.
  • the new study of estimated returns finds that the older a pension fund’s holdings of private equity are, the more likely its officials are to extrapolate those returns — as if the good times of the early 2000s, when deals abounded and buyouts were cheaper, were still rolling.
  • Why do expectations among pension plans run so high? Because they have to, the chief investment officer of a large public pension plan tells me. State laws guarantee generous retirement benefits for millions of current and former government employees. To appear as if they can meet those obligations, the pension plans have no choice but to set their expected returns higher than reality is likely to deliver.
  • That’s the exact opposite of what the rest of us should do. Sooner or later, investors who build their expectations on hope rather than on arithmetic end up sorry.
Javier E

Trump Rewrites the Book on Emergencies - WSJ - 0 views

  • Washington’s response to the Covid-19 pandemic is upending one of the most durable patterns of American politics. Throughout history, national emergencies have led to a more powerful and centralized federal government and to the transfer of federal power from Congress to the executive branch. This time, the federal response rests largely on state and local government and private enterprise, with a wave of deregulation clearing the way
  • It is shaping up to be another round of creative, knowledge-generating federalism.
  • As the prospect of reopening the economy approaches, Mr. Trump has asserted that he is the ultimate authority. Governors are making state and regional plans, and mayors are claiming to be the deciders for reopening schools.
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  • a next-phase division of labor that will continue to combine practical and constitutional considerations. The federal government will issue guidelines for phased screening and social-mitigation practices by states, and attend to national priorities such as economic liquidity, air travel and increased testing capacity. States and localities will take the lead on procedures for reopening schools, churches, restaurants, offices and parks.
  • mainly he has given pride of place to federalism and private enterprise—lauding the patriotism and proficiency of our fantastic governors and mayors, our incredible business leaders and genius companies, our heroic doctors and nurses and orderlies, and our tremendous truckers. By shouting out many of them by name and documenting their deeds on a daily basis, he has vivified the American way in action (once reluctantly aroused).
  • The most striking aspect of the administration’s response has been its waiving or liberalizing of hundreds of regulatory requirements that would otherwise impede efforts to cope with the epidemic and ensuing shutdowns.
  • the FDA wasn’t bungling at all: Saying no to new tests and therapies, and delaying them with endless demands for additional data and forms, is standard FDA practice. It is required by statute to certify the safety and efficacy of medical tests, drugs and devices, but it has built its own edifice of overbearing command and control far beyond the statutory requirements.
  • it will be a great blessing that as soon as the magnitude of the epidemic was grasped, it was managed and subdued through vigorous localism, private enterprise and professional dedication, with the federal government providing essential national leadership but staying within its constitutional rails.
  • “Plans are worthless but planning is everything,” Dwight Eisenhower observed, because “the very definition of ‘emergency’ is that . . . it is not going to happen the way you are planning.” Diversified centers of authority and initiative aren’t luxuries. They are the keys to resilience in the face of emergencies large and small.
katherineharron

Trump privately says he's facing pressure over refusal to use Defense Production Act - ... - 0 views

  • President Donald Trump has told people around him that he's under pressure to utilize the authorities given to him under the Defense Production Act, after he spent the weekend fielding criticism over why he hasn't mandated that private companies mass produce needed medical supplies during the coronavirus pandemic.
  • Trump told aides he wanted to be at the microphone during optimal viewing hours -- and his appearance came after he spent the day paying close attention to appeals from New York Gov. Andrew Cuomo, who called on him to use the Defense Production Act instead of having states get into "a mad bidding war" over supplies.
  • Trump signed the act that grants him authority to direct private companies to ramp up production of needed supplies last week, but has refused to wield his powers for now.
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  • There has been an internal divide in the West Wing over whether to move forward with it or to continue to let companies voluntarily speed up production without orders from the federal government. Health care providers have bluntly warned they do not have the protective gear or medical equipment to treat an influx of coronavirus patients, and state officials have said attempts to get more supplies has turned into a free-for-all.
  • "My job at the White House now is to help marry the full force of the federal government with the full power of private enterprise to mobilize our industrial base and thereby quickly get what we need, most urgently Personal Protective Equipment such as masks and gloves and testing kit element like swabs," Navarro told CNN. "It's been enormously helpful that the President signed the DPA last week. We've seen a noticeable uptick in the intensity of that mobilization, and my office is using the DPA every day as quiet leverage to turbocharge the great outpouring of volunteer efforts from the business community," he added.
aidenborst

Rep. Mo Brooks is avoiding an insurrection lawsuit. Rep. Eric Swalwell hired a private ... - 0 views

  • Republican Rep. Mo Brooks is avoiding a lawsuit from his Democratic colleague Rep. Eric Swalwell that seeks to hold him accountable for the January 6 Capitol insurrection -- so much so that Swalwell's attorneys hired a private investigator to find him.
  • The detail comes in a court filing Wednesday in which Swalwell's attorneys describe difficulty in serving Brooks with the lawsuit. CNN has reached out to Brooks' office for comment.
  • After Swalwell -- a California Democrat -- sued in March, his attorneys tried to reach the Alabama Republican through calls to the congressman's office and by sending a letter to formally provide him notice he had been sued, a necessary step in this type of court proceeding.
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  • "Counsel spoke to two different staff members on two separate occasions, and each time was promised a return call that never came," Swalwell's attorneys wrote on Wednesday.
  • Brooks spoke at the pro-Trump rally on January 6, saying, "Today is the day American patriots start taking down names and kicking ass." He then asked the rally attendees if they were willing to fight.
  • "Plaintiff had to engage the services of a private investigator to attempt to serve Brooks personally -- a difficult feat under normal circumstances that has been complicated further in the wake of the January 6 insurrection at the Capitol that Defendants incited," Swalwell's court filing continued. "Plaintiff's investigator has spent many hours over many days in April and May at locations in multiple jurisdictions attempting to locate and serve Brooks, to no avail."
  • "The problem here is that Mo Brooks' door is under lock and key ... There was just no access to the primary place that he was for much of the day," Andonian said. "It just takes persistence and luck sometimes. We're not claiming Brooks is hiding in a bunker somewhere. But it takes a lot of effort."
  • Following the Swalwell team's calls, they emailed, too. "Neither Brooks nor any member of his staff has responded to his request," their filing said.
  • "We want to know answers. We want to know what Donald Trump was saying, what he was thinking" or what others said to him on January 6, Andonian said on CNN Wednesday. He described the effort in the lawsuit as one way to find out what happened behind the scenes around the then-President since plans for a bipartisan congressional commission fell apart last week after Senate Republicans blocked its creation.
  • Following the speeches at the pro-Trump rally, many in the crowd marched to the Capitol, with several violently breaking into the building and looking for lawmakers who were certifying Biden's victory over Trump in the 2020 election.
  • Republican Rep. Mo Brooks is avoiding a lawsuit from his Democratic colleague Rep. Eric Swalwell that seeks to hold him accountable for the January 6 Capitol insurrection -- so much so that Swalwell's attorneys hired a private investigator to find him.
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