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Javier E

Elon Musk, Sam Altman illustrate a Silicon Valley truth: icons are fallible - The Washi... - 0 views

  • The mutiny inside OpenAI over the firing and un-firing of chief executive Sam Altman, and the implosion of X under owner Elon Musk, are not just Silicon Valley soap operas. They’re reminders: A select few make the decisions inside these society-shaping platforms, and money drives it all.
  • The two companies built devoted followings by promising to build populist technology for a changing world: X, formerly known as Twitter, with its global village of conversations, and OpenAI, the research lab behind ChatGPT, with its super-intelligent companions for human thought.
  • But under Musk and Altman, the firms largely consolidated power within a small cadre of fellow believers and loyalists who deliberate in secrecy and answer to no one.
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  • “These are technologies that are supposed to be so democratized and universal, but they’re so heavily influenced by one person,”
  • “Everything they do is [framed as] a step toward much larger greatness and the transformation of society. But these are just cults of personality. They sell a product.”
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  • “These are private-sector people making money off something that serves a public function. And when they take a turn because of very personal, very individual decisions, where a handful of people are shaping the trajectory of these companies, maybe even the existence of these companies, that’s something new we all have to deal with.”
  • where the other firms sold phones and search engines, Musk and Altman championed their work as a public mission for protecting mankind, with a for-profit business attached. It is notable that as private companies, they don’t have to report to federal regulators or to shareholders, who can vote down proposals or push back against their work.
  • The corporate storytelling that pushes technology as a force for public harmony has proved to be one of Silicon Valley’s great marketing tools, said Margaret O’Mara, a professor at the University of Washington who studies the history of technology. But it’s also obscured the dangers of centralizing power and subjecting it to leaders’ personal whim
  • “Silicon Valley has for years adopted this messaging and mood that it’s all about radical transparency and openness — remember Google’s ‘Don’t be evil’ motto? — and this idea of a kinder, gentle capitalism that’s going to change the world for the better,” she said.
  • “Then you have these moments of reckoning and remember: It’s capitalism. Some tech billionaires lost, and some other ones are winning,”
  • Jeff Hauser, the head of the left-leaning advocacy group Revolving Door Project, said in a statement Wednesday that Summers’s role on the board was a sign OpenAI was “unserious” about its oversight, and that it “should accelerate concerns that AI will be bad for all but the richest and most opportunistic amongst us.”
  • Ro Khanna, who represents parts of Silicon Valley, said in an interview that the OpenAI turmoil underscores concerns that “a few people, no matter how talented, no matter how knowledgeable, can’t be making the rules for a society on a technology that is going to have such profound consequences.”
  • “We’ve seen a parade of these big tech leaders come to D.C.,” Khanna said. “I think highly of them, but they’re not the ones who should be leading the conversation on the regulatory framework, what safeguards we need.”
  • Musk on Tuesday posted a message, under a picture of him holding a katana, saying, “There is a large graveyard filled with my enemies. I do not wish to add to it, but will if given no choice.”
Javier E

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

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

News Publishers See Google's AI Search Tool as a Traffic-Destroying Nightmare - WSJ - 0 views

  • A task force at the Atlantic modeled what could happen if Google integrated AI into search. It found that 75% of the time, the AI-powered search would likely provide a full answer to a user’s query and the Atlantic’s site would miss out on traffic it otherwise would have gotten. 
  • What was once a hypothetical threat is now a very real one. Since May, Google has been testing an AI product dubbed “Search Generative Experience” on a group of roughly 10 million users, and has been vocal about its intention to bring it into the heart of its core search engine. 
  • Google’s embrace of AI in search threatens to throw off that delicate equilibrium, publishing executives say, by dramatically increasing the risk that users’ searches won’t result in them clicking on links that take them to publishers’ sites
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  • Google’s generative-AI-powered search is the true nightmare for publishers. Across the media world, Google generates nearly 40% of publishers’ traffic, accounting for the largest share of their “referrals,” according to a Wall Street Journal analysis of data from measurement firm SimilarWeb. 
  • “AI and large language models have the potential to destroy journalism and media brands as we know them,” said Mathias Döpfner, chairman and CEO of Axel Springer,
  • His company, one of Europe’s largest publishers and the owner of U.S. publications Politico and Business Insider, this week announced a deal to license its content to generative-AI specialist OpenAI.
  • publishers have seen enough to estimate that they will lose between 20% and 40% of their Google-generated traffic if anything resembling recent iterations rolls out widely. Google has said it is giving priority to sending traffic to publishers.
  • The rise of AI is the latest and most anxiety-inducing chapter in the long, uneasy marriage between Google and publishers, which have been bound to each other through a basic transaction: Google helps publishers be found by readers, and publishers give Google information—millions of pages of web content—to make its search engine useful.
  • Already, publishers are reeling from a major decline in traffic sourced from social-media sites, as both Meta and X, the former Twitter, have pulled away from distributing news.
  • , Google’s AI search was trained, in part, on their content and other material from across the web—without payment. 
  • Google’s view is that anything available on the open internet is fair game for training AI models. The company cites a legal doctrine that allows portions of a copyrighted work to be used without permission for cases such as criticism, news reporting or research.
  • The changes risk damaging website owners that produce the written material vital to both Google’s search engine and its powerful AI models.
  • “If Google kills too many publishers, it can’t build the LLM,”
  • Barry Diller, chairman of IAC and Expedia, said all major AI companies, including Google and rivals like OpenAI, have promised that they would continue to send traffic to publishers’ sites. “How they do it, they’ve been very clear to us and others, they don’t really know,” he said.
  • All of this has led Google and publishers to carry out an increasingly complex dialogue. In some meetings, Google is pitching the potential benefits of the other AI tools it is building, including one that would help with the writing and publishing of news articles
  • At the same time, publishers are seeking reassurances from Google that it will protect their businesses from an AI-powered search tool that will likely shrink their traffic, and they are making clear they expect to be paid for content used in AI training.
  • “Any attempts to estimate the traffic impact of our SGE experiment are entirely speculative at this stage as we continue to rapidly evolve the user experience and design, including how links are displayed, and we closely monitor internal data from our tests,” Reid said.
  • Many of IAC’s properties, like Brides, Investopedia and the Spruce, get more than 80% of their traffic from Google
  • Google began rolling out the AI search tool in May by letting users opt into testing. Using a chat interface that can understand longer queries in natural language, it aims to deliver what it calls “snapshots”—or summaries—of the answer, instead of the more link-heavy responses it has traditionally served up in search results. 
  • Google at first didn’t include links within the responses, instead placing them in boxes to the right of the passage. It later added in-line links following feedback from early users. Some more recent versions require users to click a button to expand the summary before getting links. Google doesn’t describe the links as source material but rather as corroboration of its summaries.
  • During Chinese President Xi Jinping’s recent visit to San Francisco, the Google AI search bot responded to the question “What did President Xi say?” with two quotes from his opening remarks. Users had to click on a little red arrow to expand the response and see a link to the CNBC story that the remarks were taken from. The CNBC story also sat over on the far right-hand side of the screen in an image box.
  • The same query in Google’s regular search engine turned up a different quote from Xi’s remarks, but a link to the NBC News article it came from was beneath the paragraph, atop a long list of news stories from other sources like CNN and PBS.
  • Google’s Reid said AI is the future of search and expects its new tool to result in more queries.
  • “The number of information needs in the world is not a fixed number,” she said. “It actually grows as information becomes more accessible, becomes easier, becomes more powerful in understanding it.”
  • Testing has suggested that AI isn’t the right tool for answering every query, she said.
  • Many publishers are opting to insert code in their websites to block AI tools from “crawling” them for content. But blocking Google is thorny, because publishers must allow their sites to be crawled in order to be indexed by its search engine—and therefore visible to users searching for their content.To some in the publishing world there was an implicit threat in Google’s policy: Let us train on your content or you’ll be hard to find on the internet.
Javier E

Don't Read the Colorado Ruling. Read the Dissents. - The Atlantic - 0 views

  • The dissents were gobsmacking—for their weakness. They did not want for legal craftsmanship, but they did lack any semblance of a convincing argument.
  • For starters, none of the dissents challenged the district court’s factual finding that Trump had engaged in an insurrection
  • Nor did the dissents challenge the evidence—adduced during a five-day bench trial, and which, three years ago, we saw for ourselves in real time—that Trump had engaged in an insurrection by any reasonable understanding of the term.
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  • Instead, the three dissenters mostly confined themselves to saying that state law doesn’t provide the plaintiffs with a remedy.
  • even the dissenters’ contentions about state law made little sense. Chief Justice Brian Boatright argued that, while Colorado law requires its secretary of state to examine the constitutional qualifications of presidential candidates, it doesn’t allow her to consider whether they are constitutionally disqualified.
  • Nothing in the state statute suggests that’s the case, and it’s plainly illogical. Every qualification necessarily establishes a disqualification. If the Constitution says, as it does, that you have to be 35 years of age to serve as president, you’re out of luck—disqualified—if you’re 34 and a half. By the same token, if you’ve engaged in an insurrection against that Constitution in violation of your oath to it, you’ve failed to meet the ironclad (and rather undemanding) requirement that you not have done that.
  • And no stronger is Justice Carlos Samour’s suggestion that Trump was somehow deprived of due process by the proceedings in the district court. This was a full-blown, five-day trial, with sworn witnesses and lots of documentary exhibits, all admitted under the traditional rules of evidence before a judicial officer, who then made extensive written findings of fact under a stringent standard of proof
  • Samour’s suggestion that Trump was denied a fair trial because he didn’t have a jury is almost embarrassing: Any first-year law student who has taken civil procedure could tell you that election cases are not even close to the sort of litigation to which a Seventh Amendment jury-trial right would attach.
  • the dissents showed one thing clearly: The Colorado majority was right. I dare not predict what will happen next. But if Trump’s lawyers or any members of the United States Supreme Court want to overturn the decision, they’d better come up with something much, much stronger. And fast.
Javier E

A Cruel Summer at Cornell - Tablet Magazine - 0 views

  • Reading through TASP’s website, I was seduced by its promises—a thoughtful community, where, for once, I’d be surrounded by free-thinking academics and learning from leaders whom I deeply admired.
  • Like Carlos told us on the very first day, we didn’t know what was best for us. Not because we were working to decide for ourselves, but because someone else already knew. TASP was no longer a democratic experiment—it had morphed into a factory for totalitarian instincts, and it operated like an oligarchy.
  • “If I could give you one piece of advice,” he said, “make sure you befriend someone who is entirely different from you. As many people as you can. Talk to them about everything you disagree on—you’ll only be better for it.”
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  • To me, that letter wasn’t just an invitation to a fancy summer program—it was an invitation into an educational world that I thought would change my life.
  • it wasn’t the differences between us that posed the biggest challenge to our unity; it was the constant reminders from above of those differences, all the ways we were hierarchically organized or comparatively privileged or fundamentally limited in our views. We were challenged to transcend those limitations and build the foundations of a community, but for that you need good faith, which was in short supply.
  • The other problem was that TASP lacked all the mechanisms of a functioning democracy. We had been cherry-picked to represent diversity, but actually the point was for all of us to arrive at the same conclusions—men talked too much, the world was fraught with microaggressions, dodgeball was bad, and eggs were worse. There was no framework for disagreement, no space for ideological detours, no home for structural challenges to the so-called intentional community we lived in.
  • Nobody wanted to deal with the key annoyance of democracy—learning to tolerate our differences.
  • It’s only now that I recognize that the truth of this statement—after all, what 17-year-old knows what’s best for them—served to justify the anti-democratic reality of a space contemptuous of every experience except for those of “oppressed groups,” as determined by the factota. It is equally alarming to see that the so-called leaders of my teenage years are now actively remaking a space once devoted to self-exploration and communal understanding in their own intellectual self-image, as a place where questioning and self-determination are being eliminated in favor of received truth.
  • In 2022, the Telluride Association announced that they were discontinuing TASP and expanding TASS, the equivalent program for sophomores, into a program with two focus areas—“Critical Black Studies” and “Anti-Oppressive Studies.”
  • Students would no longer live all together, like we did, according to Nunn’s vision. Instead, the “Critical Black Studies” community would live and study separately, creating an entirely Black space. Afternoons and evenings were no longer reserved for things like Nerf wars or eating entire jars of sprinkles, which were the activities that allowed our diverse group to come together, and which I remember much more vividly than all my seminar readings combined. Instead, the students would participate in anti-racism workshops created by the factota. It was this new program that became the “anti-racist Hell” that Vincent Lloyd lamented in his article.
  • It was easy for me to sympathize with Lloyd, who spent his summer battling with one factota, Keisha, who found him “triggering” and his readings “insufficiently radical,” was frustrated by his insistence on unspooling complex racial ideas in the slow seminar format rather than holding straightforward lectures, and frequently intervened when his discussions caused TASPers “harm.”
  • By the end of his tenure, he was summoned into an empty classroom by the students, who read their allegations about his behavior—and demands that he change his teaching—from sheets of paper. Every word coming out of their mouths was clearly pulled from conversations with Keisha. A white girl referred to her factota in her remarks: “Keisha speaks for me. She says everything I think better than I ever could.”
  • I remember being an eager-to-please high schooler on the first day of TASP, sitting in a circle with big aspirations but very little knowledge of the world, wanting so badly to be accepted in an elite space I assumed would give me all the answers, if I could only absorb the guiding principle: You don’t know what’s best for you.
  • My mom dropped me off at the local Panera, where the interviewer was already sitting in a booth reading a novel when I arrived. He was an older professor who still conducted interviews because he’d had such a transformative experience at TASP. He explained that he came to the seminar as a committed far-left radical, but he struck up an unlikely friendship with a staunch conservative and William F. Buckley devotee, with whom he disagreed about, and argued fervently over, everything. Proudly, he told me that the two men remained friends to this day.
  • The final rule was relayed by Carlos. With a stern look on his face, he explained that while these rules might seem daunting, all the factota had done this before, and there was one mantra in particular that guided them through their time. The girl next to me opened a notebook and poised her pen eagerly over the page. “During your six weeks here, you should always remember … you don’t know what’s best for you.” He intoned this mantra with such gravitas that the room briefly fell into silence.
  • TASPers were tasked with governing ourselves through nightly house meetings, bylaw votes, and a complex web of committees regulating everything from kitchen duty to leisure. Our community would be “semi-monastic,” meaning that we were “strongly, strongly encouraged” to limit our contact with the outside world in favor of “turning inward” and “engaging in communal reflection.” To ensure that we learned as much as possible from our peers, there was a ban on “exclusive relationships” of all platonic shades, which would be enforced through assigned seating, periodic roommate switches, minimum group-outing sizes, and good-old-fashioned cockblocking.
  • Discerning observers will note that doing what “necessity indicates” is a mandate dependent entirely on the values and whims of its executioners. In the case of TASP, necessity apparently indicated living in accordance with not only the Nunnian ideals but also the standards of our factota, most of whom couldn’t yet legally drink but had absolute moral authority over who could take up space, who could express their politics, and who deserved to be there at all. TASP was their world; we were just figuring out how to live in it.
  • The factota had various tactics to combat these relationships, from sober one-on-one interventions to interrupting group hangs to, notably, a roommate-switch halfway through the program because people were getting too close. This switch was aimed in no small part at Mark, who had been paired with a fellow sporty private-school guy in a cavernous room on the second floor. They bonded instantly, and their room would house all kinds of semi-exclusive hangs, from playlist-making to the occasional horny game of “Never Have I Ever.”
  • Accordingly, the factota disapproved of our friendship. Kaitlyn felt strongest about limiting his presence in my life and often pulled me aside to warn me against Mark, deeming his influence to be restrictive. She’d accost me to relay a supposedly insufferable remark he’d made during seminar or shoot me pointed stares whenever someone mentioned male entitlement during a house meeting, ignoring my protests that I found it difficult to distance myself from a naturally occurring friendship, and in fact enjoyed chatting with someone so different from myself. Wasn’t that supposed to be the point of TASP, anyway?
  • Instead, she made it a personal project to interrupt our conversations, wedge herself in between us at dinner, and skew our committee assignments so we couldn’t so much as wash dishes at the same time.
  • As a white guy studying classics at a high school with a five-figure price tag, Mark regularly landed in the crosshairs of our Sunday night conversations, receiving frequent reminders to “check his privilege” when he cited too much rarefied literature in class conversations and to “cede his time” to minorities or women during house discussions.
Javier E

Transcript: Ezra Klein Interviews Nimrod Novik - The New York Times - 0 views

  • for years now, a group of hundreds of former senior defense and diplomatic officials in Israel have been saying this is a catastrophe — that it is a catastrophe for Israeli security, a catastrophe for Israeli democracy, a catastrophe for Israelis’ international standing, and a catastrophe for Israel’s soul. Their warnings seem quite prescient now.
  • they’ve argued there was another way. There was a huge amount Israel could do on its own and should have been doing, that if Israel is not going to tip into a kind of single state that it did not want and could not ultimately defend, that the conditions had to be created now for something else to emerge in the future.
  • One of the people working on that project was Nimrod Novik. He’s my guest today. Novik was a top aide to Shimon Peres when Peres was prime minister and vice premier. In that role, Novik was involved in all manner of negotiations with the Palestinians, with the Arab world, with the international community. He’s on the executive committee of Commanders for Israel’s Security, which is a group I mentioned a minute ago. And he’s an Israel fellow at the Israel Policy Forum.
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  • NIMROD NOVIK: The group that worked on it, called Commanders for Israel’s Security, it’s over 500 Israeli retired generals, as well as their equivalents from the Mossad, Shin Bet Security, National Security Council, the entire Israeli security establishment. And we formed a team. We felt that Israeli policy was far too reactive and far too conservative for the good of the country, national security, short and long-term.
  • We had not anticipated the trauma of Oct. 7, but we certainly anticipated things getting from bad to worse, unless Israel changes course.
  • we came up with a plan that suggested even though a two-state solution, as you said, is not on this side of the horizon, but given that eventually, it’s the only solution that we believe serves Israel’s security and well-being long-term, as a strong Jewish democracy, we mapped out what can and should be done in the coming two, three years to reverse the slide towards the disaster of a one-state solution.
  • NIMROD NOVIK: There were primarily two governing concepts, if you will, of the Israeli policy. Again, calling it policy is giving it more credit than deserved. Israeli government have been reluctant to determine the end game of our relationship with the Palestinians. Where do we want to see ourselves and them two years, five years, 50 years from now? No decision has been made since the Oslo era.
  • As a result, what we’ve seen was a policy based on insisting on separating the Gaza Strip, ruled by Hamas from the West Bank, ruled sort of by the Palestinian Authority. Separation was one principle
  • And the other one was dubbed status quo, even though it was an illusion, because nothing was static about it. As a matter of fact, creeping annexation has been accelerating under various governments.
  • The more territory was taken by settlements, the more extreme settlers were conducting violent raids into Palestinian civil populations. The more the Palestinian Authority, internally defective, becoming more and more authoritarian, more and more detached from its own constituents, less responsive, less capable of governance, losing control over large swaths of West Bank territory, forcing the I.D.F. to enter more and more
  • It was a slide into a state where the Palestinian Authority would cease to function as the promise of the nucleus of a Palestinian state.
  • If we look at it today, it’s already perhaps the municipal government of the city of Ramallah, rather than of the West Bank, and weakening the Palestinian Authority by choking it financially. By not allowing it to demonstrate to its people that it is the vehicle that will bring them one day to their aspiration of statehood, on the one hand, and making sure that Hamas controls Gaza, the two tracks spelled disaster.
  • So I must confess, we had not anticipated that the disaster will look the way it did on Oct. 7, but we certainly realized that the policy in Gaza of rounds of violence every year, every two years, every 18 months, and buying off relative tranquility by funding Hamas through the auspices of Qatar, allowing it to arm and rearm, the inherent contradictions in the policy were quite apparent
  • There’s a right-wing one-state solution. I think when you mentioned the finance minister, Bezalel Smotrich, I think if you read things he has written in the past, he is looking for a one-state solution. He wants to crush Palestinian dreams of statehood and repress Palestinians sufficiently that they stop believing they can ever have anything better and eventually content themselves to Israeli rule and live quietly within that in order to gain better lives.
  • NIMROD NOVIK: I’ll put it bluntly. I believe that a two-state solution is inevitable, not because we wish it and not because it’s nice, not because Palestinians deserve self-determination — which they do, but that’s not a historic imperative. I believe that the two-state solution is inevitable because these two people are not going to live happily ever after under one roof.
  • For that to happen, for the two people to stay in one state, one of two things have to happen. Either Israelis will agree to grant Palestinian equal rights in that one state and therefore become a minority, or at least, a slim majority in our own country, and that’s never going to happen. Israelis are not going to agree to be less than the overwhelming majority in our own country.
  • Or Palestinians will agree forever to forgo equal rights, which I suspect is as unreasonable expectation as the other. So we will separate.
  • NIMROD NOVIK: Civil separation with overall security control — continued security control until a two-state agreement ushers in alternative security arrangements, is a concept that basically suggests reversing the creeping annexation, which is no longer creeping. It’s now galloping.
  • So the idea is to start reversing the slide towards one-state reality in the opposite direction, of reducing the friction between the two populations, increasing the capacity of the P.A. to perform, while maintaining the overall security controlled by Israel until a deal is struck.
  • You often hear when you talk to people in Israel about different paths that could be taken. Well, we don’t have anybody to negotiate with. The Palestinian Authority doesn’t have credibility. Hamas wants our destruction
  • And a core premise of the report is that there are things Israel can do unilaterally, that it doesn’t need a partner to do things that will make the situation better from its perspective and create conditions maybe for deals in the future. So tell me what is in Israel’s power here. What would you actually recommend to do tangibly?
  • NIMROD NOVIK: It’s not a genetic deformation of the Palestinians that they cannot govern themselves. This is nonsense. We had a period after the second intifada, the years 2007, 2008, where the Palestinian Authority, there was a prime minister by the name of Salam Fayyad. First, he was finance minister, later on prime minister, who revitalized the Palestinian Authority in a dramatic way. The authority was on the rise. People were proud in it, its own population. They could have won elections at that point.
  • And then Netanyahu was elected in 2009. Now, obviously, we are the strongest party. We hold most of the cards by far. And when we decide that we are going to choke the Palestinian Authority, the Palestinian Authority will choke
  • Now the second trend that happened was that Mahmoud Abbas, President Abbas, known as Abu Mazen, the early Abu Mazen was a very different person than the late one with whom we are dealing today. He became increasingly nondemocratic, authoritarian, autocratic, paranoid, removing from his vicinity and from position of power all the best and brightest that were working during that era
  • . Things went from bad to worse, Israel doing its share in weakening the P.A. and the P.A. leadership became more claustrophobic. All these can change.
  • At the moment, the West Bank is a Swiss cheese. It’s 169 islands of Palestinian-controlled areas surrounded each by Israeli-controlled territory. So we wanted to reduce that by half so that contiguity will have a security, law and order, and economic well-being effect.
  • We suggested a host of economic measures that enable the Palestinian Authority to deliver for the people, which is the opposite of what’s happening now, when our minister of finance is choking the Palestinian Authority by withholding funds that are theirs by the agreement Israel collects taxes for the Palestinian Authority, VAT and others. And we are supposed to automatically transfer them to the Palestinian Authority. It’s the main chunk of their budget.
lilyrashkind

Why the Children of Immigrants Get Ahead | Time - 0 views

  • Abramitzky is a Professor of Economics and the Senior Associate Dean for the Social Sciences at Stanford University. Boustan is a Professor of Economics at Princeton University, where she also serves at the Director of Industrial Relations Section. Their new book is Streets of Gold: America's Untold of Immigrant Success
  • In paging through the profiles, we couldn’t help noticing one group of Americans who defies this trend: the children of immigrants. Sonya Poe was born in a suburb of Dallas, Texas to parents who immigrated from Mexico. “My dad worked for a hotel,” Sonya recalled. “Their goal for us was always: Go to school, go to college, so that you can get a job that doesn’t require you to work late at night, so that you can choose what you get to do and take care of your family. We’re fortunate to be able to do that.”
  • One pattern that is particularly striking in the data is that the children of immigrants raised in households earning below the median income make substantial progress by the time they reach adulthood, both for the Ellis Island generation a century ago and for immigrants today. The children of first-generation immigrants growing up close to the bottom of the income distribution (say, at the 25th percentile) are more likely to reach the middle of the income distribution than are children of similarly poor U.S.-born parents.
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  • The second notable takeaway is that even children of parents from very poor countries like Nigeria and Laos outperform the children of the U.S.-born raised in similar households. The children of immigrants from Central American countries—countries like Guatemala, El Salvador and Nicaragua that are often demonized for contributing to the “crisis” at the southern border—move up faster than the children of the U.S.-born, landing in the middle of the pack (right next to children of immigrants from Canada).
  • To conduct our analysis, we needed data that links children to parents. For the historical data, we used historical census records to link sons living in their childhood homes to census data collected 30 years later when these young men had jobs of their own.
  • Our modern data is based on federal income tax records instead. The tax records allow researchers to link children to their parents as tax dependents, and then observe these children in the tax data as adults.
  • The first striking takeaway is that, as a group, children of immigrants achieve more upward mobility than the children of U.S.-born fathers. We focus on the children of white U.S.-born fathers because the children of Black fathers tend to have lower rates of upward mobility. So, the mobility advantage that we observe for the children of immigrants would be even larger if we compared this group to the full population.
  • Children of immigrants from Mexico and the Dominican Republic today are just as likely to move up from their parents’ circumstances as were children of poor Swedes and Finns a hundred years ago.
  • Today, we might not be that surprised to learn that the children of past European immigrants succeeded. We are used to seeing the descendants of poor European immigrants rise to become members of the business and cultural elite. Many prominent leaders, including politicians like President Biden, regularly emphasize pride in their Irish or Italian heritage. But, at the time, these groups were considered the poorest of the poor. In their flight from famine, Irish immigrants are not too dissimilar from immigrants who flee hurricanes, earthquakes, and violent uprisings today.
  • One question that arises with our work is: what about children who arrive without papers? Undocumented children face more barriers to mobility than other children of immigrants. Fortunately, this group is relatively small even in recent years: only 1.5 million (or five percent) of the 32 million children of immigrant parents are undocumented today. Indeed, this number is small because many children of undocumented immigrants are born in the U.S. and thus are granted citizenship at birth.
  • What enables the children of immigrants to escape poor circumstances and move up the economic ladder? The answer we hear most often is that immigrants have a better work ethic than the US-born and that immigrant parents put more emphasis on education.
  • U.S.-born parents who were raised down the block, or in the same town. This pattern implies that the primary difference between immigrant families and the families of the U.S.-born is in where they choose to live.
  • Ironically, J.D. Vance (who is now running for Senate in Ohio on an anti-immigration platform) poses this question in his bestseller Hillbilly Elegy,aboutgrowing up in Middletown, Ohio, only 45 minutes from the border with Kentucky, the state where his family had lived for generations. For Vance, moving up the ladder meant moving out of his childhood community, a step that many Americans are unwilling to take. He went on to enlist in the Marines, and then to Ohio State and Yale Law School—“Though we sing the praises of social mobility,” he writes, “it has its downsides. The term necessarily implies a sort of movement—to a theoretically better life, yes, but also away from something.”
  • Adapted from Abramitzky and Boustan’s new book Streets of Gold: America’s Untold Story of Immigrant Success
peterconnelly

U.S. Will Start Blocking Russia's Bond Payments to American Investors - The New York Times - 0 views

  • The Biden administration will start blocking Russia from paying American bondholders, increasing the likelihood of the first default of Russia’s foreign debt in more than a century.
  • As a result, Russia will be unable to make billions of dollars of debt and interest payments on bonds held by foreign investors.
  • Biden administration officials had debated whether to extend what’s known as a general license, which has allowed Russia to pay interest on the debt it sold.
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  • “If Russia is unable to find a legal way to make these payments, and they technically default on their debt, I don’t think that really represents a significant change in Russia’s situation,” Ms. Yellen said. “They’re already cut off from global capital markets, and that would continue.”
  • “We can only speculate what worries the Kremlin most about defaulting: the stain on Putin’s record of economic stewardship, reputational damage, the financial and legal dominoes a default sets in motion and so on,” said Tim Samples
  • Sanctions experts have estimated that Russia has about $20 billion worth of outstanding debt that is not held in rubles.
  • Russia owes about $71 million in interest payments for a dollar-denominated bond that will mature in 2026. The contract has a provision to be paid in euros, British pounds and Swiss francs.
  • Adam M. Smith, who served as a senior sanctions official in the Obama administration’s Treasury Department, said he expected that Russia would most likely default sometime in July and that a wave of lawsuits from Russia and its investors were likely to ensue.
  • “The interesting question to me is, What is the policy goal here?”
lilyrashkind

Javier Olivan, Meta's new COO, built his career on global growth - 0 views

  • Sandberg, the author of the best-selling 2013 book “Lean In: Women, Work, and the Will to Lead,” has over 900,000 Instagram followers. Olivan’s Instagram, with 17 followers, is private. Until Wednesday, Olivan hadn’t published a public post to his Facebook profile since 2018.
  • Olivan’s quiet public persona doesn’t reflect his influence at the company. He’s among a handful of executives reporting to Zuckerberg, climbing near the top of the latter in his almost 15-year stint at the social-media company. He joined the C-suite five months ago, assuming the title of chief growth officer, and is also vice president of cross-Meta products and infrastructure.If Sandberg led the charge in building Facebook’s advertising business, which still represents 97% of Meta’s total revenue, Olivan deserves credit for its global expansion. His first job at the company, from 2007 to 2011, was head of international growth.
  • In addition to Vy Global, Olivan spent six years on the board of Latin American e-commerce company MercadoLibre, and he invested in geospatial imaging company Satellogic ahead of the SPAC deal it completed in January.But his career has been centered at Facebook. In 2008, Olivan accompanied Zuckerberg for an appearance at the University of Navarra. He later worked on Internet.org, an effort Facebook and other companies launched in 2013 to connect people to internet services in less developed countries.
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  • Spanish was Facebook’s first non-English language, and it was the first project Olivan worked on, he said in an interview earlier this year.Olivan has continued serving the company overseas. As recently as March, he represented Meta on a state visit with Pedro Sánchez, the prime minster o
  • Zuckerberg wrote in his Facebook post that Olivan is taking on integrated ads and business products while continuing to run infrastructure, integrity, analytics, marketing, corporate development and growth.“With some exceptions, I don’t anticipate my role will have the same public-facing aspect, given that we have other leaders at Meta who are already responsible for that work,” Olivan wrote in his Facebook post.
lilyrashkind

Uvalde Mayor Don McLaughlin describes attempts to phone gunman during school massacre -... - 0 views

  • In an interview with The Washington Post, McLaughlin (R) said he rushed to Hillcrest Funeral Home about 15 minutes after “the first call” reporting that 18-year-old Salvador Ramos had crashed his pickup truck nearby. He found himself standing near an official he identified only as “the negotiator,” while frightened parents gathered outside the school and police waited well over an hour to storm the classroom.
  • He said he doesn’t believe the negotiator was aware there were children calling 911 and asking police to save them while the gunman was in the classroom. The mayor said he was not aware of those calls, nor did he hear shots fired from inside the school, across the street.
  • In the recent Texas primary for governor, he opted not to endorse the Republican incumbent, Gov. Greg Abbott, labeling him a “fraud” over his approach to the border and immigration. And he has appeared on “Tucker Carlson Tonight” multiple times to lambaste the Border Patrol’s release of migrants into the streets of Uvalde and lament that he cannot get a call back from the state’s two Republican senators, Ted Cruz and John Cornyn.
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  • McLaughlin said he has not been in touch with Pete Arredondo, the embattled head of the Uvalde school district’s police department, who served as the incident commander during the shooting and has been criticized for not sending officers in sooner.Arredondo has not spoken publicly about the incident, telling CNN on Wednesday that he would do so after more time has passed and the victims of the massacre are buried.
  • Last week, Abbott said he was “misled” by law enforcement authorities about the series of events that took place.
  • “Why should any of us be afraid of expanding background checks? There’s nothing wrong with that, I don’t have anything to hide,” said McLaughlin, who has also long pushed to build a psychiatric hospital in Uvalde.
  • During the interview on Wednesday, however, McLaughlin took a much more conciliatory tone, urging compromise between Republicans and Democrats to find a set of laws that “work for everyone.”
  • “The briefing that the governor and the lieutenant governor and everybody else in that room [had] ... was given by the DPS, not local law enforcement,” McLaughlin said.“They’ve had three press conferences,” he added. “In all three press conferences, something has changed.”
  • In his letter to Patrick, who presides over the Senate, and House Speaker Dade Phelan (R), Abbott asked that both chambers form committees to explore five issues: school safety; mental health; social media; police training; and firearm safety.“As leaders, we must come together at this time to provide solutions to protect all Texans,” Abbott said in his letter.
  • Abbott also announced new instructions for the Texas School Safety Center, a research center focused on campus safety and security that is statutorily responsible for auditing schools for safety processes and establishing best practices.
  • According to a letter Abbott sent to education officials, the governor said the San Marcos-based safety center should start conducting “random intruder detection audits,” designed to find weaknesses in campus security systems.
  • McLaughlin said he could not imagine the school returning to normal operations.“I hope we tear it down to the ground,” he said. “I would never expect a teacher, a student, anyone to go walk back in that building.”
criscimagnael

In Mali, a Massacre With a Russian Footprint - The New York Times - 0 views

  • Suddenly, five low-flying helicopters thrummed overhead, some firing weapons and drawing gunfire in return. Villagers ran for their lives. But there was nowhere to escape: The helicopters were dropping soldiers on the town’s outskirts to block all the exits.
  • In Moura, the security forces “may have also raped, looted, arrested and arbitrarily detained many civilians,” according to the mission, which is preparing a report on the incident.
  • However, using satellite imagery, The New York Times identified the sites of at least two mass graves, which matched the witnesses’ descriptions of where captives were executed and buried.
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  • The Wagner Group refers to a network of operatives and companies that serve as what the U.S. Treasury Department has called a “proxy force” of Russia’s ministry of defense. Analysts describe the group as an extension of Russia’s foreign policy through deniable activities, including the use of mercenaries and disinformation campaigns.
  • They ally with embattled political and military leaders who can pay for their services in cash, or with lucrative mining concessions for precious minerals like gold, diamonds and uranium, according to interviews conducted in recent weeks with dozens of analysts, diplomats and military officials in Africa and Western countries.
  • However, Russian foreign minister Sergey V. Lavrov said in May on Italian television that Wagner was present in Mali “on a commercial basis,” providing “security services.”
  • “From Monday to Thursday, the killings didn’t stop,” said Hamadoun, a tailor working near the market when the helicopters arrived. “The whites and the Malians killed together.”
  • The death toll in Moura is the highest in a growing list of human rights abuses committed by the Malian military, which diplomats and Malian human rights observers say have increased since the military began conducting joint operations with the Wagner Group in January.
  • nearly 500 civilians have been killed in the joint operations,
  • Some abuses could amount to crimes against humanity, the U.N. said in one report.
  • The foreigners, according to diplomats, officials and human rights groups, belonged to the Russian paramilitary group known as Wagner.
  • Wherever there are Russian contractors, real or fictional, they never violate human rights.”
  • “They have no incentive to end the conflict, because they are financially motivated,”
  • “They are the government in the region,”
  • The mass executions began on the Monday, and the victims were both civilians and unarmed militants, witnesses said. Soldiers picked out up to 15 people at a time, inspected their fingers and shoulders for the imprint left by regular use of weapons, and executed men yards away from captives.
  • “cadavers everywhere.”
  • The soldiers and their Russian allies left on Thursday, after killing six last prisoners in retaliation for four who had escaped. A Malian soldier told a group of captives that the soldiers had killed “all the bad people,” said Hamadou.
  • The soldier apologized for the good people who “died by accident.”
  • Investigators from the U.N. peacekeeping mission in Mali have so far been denied access to Moura. Russia and China blocked a vote at the U.N. Security Council on an independent investigation.
  • Some Malians in these regions are losing trust in the government.
  • Soon after, the militants returned and kidnapped the deputy mayor. He hasn’t been heard from since.
jaxredd10

rome - 0 views

  • Beginning in the eighth century B.C., Ancient Rome grew from a small town on central Italy’s Tiber River into an empire that at its peak encompassed most of continental Europe, Britain, much of western Asia, northern Africa and the Mediterranean islands
  • After 450 years as a republic, Rome became an empire in the wake of Julius Caesar
  • s rise and fall in the first century B.C.
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  • The long and triumphant reign of its first emperor, Augustus, began a golden age of peace and prosperity;
  • As legend has it, Rome was founded in 753 B.C. by Romulus and Remus,
  • twin sons
  • Romulus became the first king of Rome,
  • Rome’s era as a monarchy ended in 509 B.C.
  • The power of the monarch passed to two annually elected magistrates called consuls. They also served as commanders in chief of the army.
  • Politics in the early republic was marked by the long struggle between patricians and plebeians (the common people), who eventually attained some political power through years of concessions from patricians
  • In 450 B.C., the first Roman law code was inscribed on 12 bronze tablets–known as the Twelve Tables–and publicly displayed in the Roman Forum.
  • By around 300 B.C., real political power in Rome was centered in the Senate, which at the time included only members of patrician and wealthy plebeian families.
  • During the early republic, the Roman state grew exponentially in both size and power
  • Rome then fought a series of wars known as the Punic Wars with Carthage, a powerful city-state in northern Africa. The first two Punic Wars ended with Rome in full control of Sicily, the western Mediterranean and much of Spain. In the Third Punic War (149–146 B.C.), the Romans captured and destroyed the city of Carthage and sold its surviving inhabitants into slavery, making a section of northern Africa a Roman province.
  • Rome’s military conquests led directly to its cultural growth as a society, as the Romans benefited greatly from contact with such advanced cultures as the Greeks.
  • The first Roman literature appeared around 240 B.C., with translations of Greek classics into Latin; Romans would eventually adopt much of Greek art, philosophy and religion.
  • Rome’s complex political institutions began to crumble under the weight of the growing empire, ushering in an era of internal turmoil and violence.
  • The gap between rich and poor widened as wealthy landowners drove small farmers from public land,
  • When the victorious Pompey returned to Rome, he formed an uneasy alliance known as the First Triumvirate
  • After earning military glory in Spain, Caesar returned to Rome to vie for the consulship in 59 B.C.
  • Caesar received the governorship of three wealthy provinces in Gaul beginning in 58 B.C.
  • In 49 B.C., Caesar and one of his legions crossed the Rubicon, a river on the border between Italy from Cisalpine Gaul
  • Consul Mark Antony and Caesar’s great-nephew and adopted heir, Octavian, joined forces to crush Brutus and Cassius and divided power in Rome with ex-consul Lepidus in what was known as the Second Triumvirate. With Octavian leading the western provinces, Antony the east, and Lepidus Africa, tensions developed by 36 B.C. and the triumvirate soon dissolved. In 31 B.C., Octavian triumped over the forces of Antony and Queen Cleopatra of Egypt (also rumored to be the onetime lover of Julius Caesar) in the Battle of Actium
  • To avoid meeting Caesar’s fate, he made sure to make his position as absolute ruler acceptable to the public by apparently restoring the political institutions of the Roman republic while in reality retaining all real power for himself. In 27 B.C., Octavian assumed the title of Augustus, becoming the first emperor of Rome.
  • By 29 B.C., Octavian was the sole leader of Rome and all its provinces.
  • Augustus’ rule restored morale in Rome after a century of discord and corruption and ushered in the famous pax Romana–two full centuries of peace and prosperity.
  • He instituted various social reforms, won numerous military victories and allowed Roman literature, art, architecture and religion to flourish.
  • When he died, the Senate elevated Augustus to the status of a god, beginning a long-running tradition of deification for popular emperors.
  • The decadence and incompetence of Commodus (180-192) brought the golden age of the Roman emperors to a disappointing end. His death at the hands of his own ministers sparked another period of civil war, from which Lucius Septimius Severus (193-211) emerged victorious.
  • Meanwhile, threats from outside plagued the empire and depleted its riches, including continuing aggression from Germans and Parthians and raids by the Goths over the Aegean Sea.
  • Diocletian divided power into the so-called tetrarchy (rule of four), sharing his title of Augustus (emperor) with Maximian. A pair of generals, Galerius and Constantius, were appointed as the assistants and chosen successors of Diocletian and Maximian; Diocletian and Galerius ruled the eastern Roman Empire, while Maximian and Constantius took power in the west.
  • The stability of this system suffered greatly after Diocletian and Maximian retired from office. Constantine (the son of Constantius) emerged from the ensuing power struggles as sole emperor of a reunified Rome in 324. He moved the Roman capital to the Greek city of Byzantium, which he renamed Constantinople. At the Council of Nicaea in 325, Constantine made Christianity (once an obscure Jewish sect) Rome’s official religion.
  • An entirely different story played out in the west, where the empire was wracked by internal conflict as well as threats from abroad–particularly from the Germanic tribes now established within the empire’s frontiers like the Vandals (their sack of Rome originated the phrase “vandalism”)–and was steadily losing money due to constant warfare.
  • Rome eventually collapsed under the weight of its own bloated empire, losing its provinces one by one:
  • In September 476, a Germanic prince named Odovacar won control of the Roman army in Italy.
  • After deposing the last western emperor, Romulus Augustus, Odovacar’s troops proclaimed him king of Italy, bringing an ignoble end to the long, tumultuous history of ancient Rome. The fall of the Roman Empire was complete.
  • Roman aqueducts, first developed in 312 B.C., enabled the rise of cities by transporting water to urban areas, improving public health and sanitation.
  • Roman cement and concrete are part of the reason ancient buildings like the Colosseum and Roman Forum are still standing strong today.
  • Roman arches, or segmented arches, improved upon earlier arches to build strong bridges and buildings, evenly distributing weight throughout the structure.
  • Roman roads, the most advanced roads in the ancient world, enabled the Roman Empire
  • to stay connected
Javier E

Opinion | Steve Bannon Is Onto Something - The New York Times - 0 views

  • In his 2020 book “Politics Is for Power,” Eitan Hersh, a political scientist at Tufts, sketched a day in the life of many political obsessives in sharp, if cruel, terms.I refresh my Twitter feed to keep up on the latest political crisis, then toggle over to Facebook to read clickbait news stories, then over to YouTube to see a montage of juicy clips from the latest congressional hearing. I then complain to my family about all the things I don’t like that I have seen.
  • To Hersh, that’s not politics. It’s what he calls “political hobbyism.” And it’s close to a national pastime.
  • Real political work, for Hersh, is the intentional, strategic accumulation of power in service of a defined end
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  • It is action in service of change, not information in service of outrage.
  • “The people thinking strategically about how to win the 2022 election are the ones doing the most for democracy,” said Daniel Ziblatt, a political scientist at Harvard and one of the authors of “How Democracies Die.”
  • “I’ve heard people saying bridges don’t save democracy — voting rights do. But for Democrats to be in a position to protect democracy, they need bigger majorities.”
  • There are people working on a Plan B
  • He spends his days obsessing over mayoral races in 20,000-person towns, because those mayors appoint the city clerks who decide whether to pull the drop boxes for mail-in ballots and small changes to electoral administration could be the difference between winning Senator Ron Johnson’s seat in 2022 (and having a chance at democracy reform) and losing the race and the Senate. Wikler is organizing volunteers to staff phone banks to recruit people who believe in democracy to serve as municipal poll workers, because Steve Bannon has made it his mission to recruit people who don’t believe in democracy t
  • The difference between those organizing at the local level to shape democracy and those raging ineffectually about democratic backsliding — myself included — reminds me of the old line about war: Amateurs talk strategy; professionals talk logistics. Right now, Trumpists are talking logistics.
  • “We do not have one federal election,” said Amanda Litman, a co-founder of Run for Something, which helps first-time candidates learn about the offices they can contest and helps them mount their campaigns. “We have 50 state elections and then thousands of county elections. And each of those ladder up to give us results.
  • While Congress can write, in some ways, rules or boundaries for how elections are administered, state legislatures are making decisions about who can and can’t vote. Counties and towns are making decisions about how much money they’re spending, what technology they’re using, the rules around which candidates can participate.”
  • Protecting democracy by supporting county supervisors or small-town mayors — particularly ones who fit the politics of more conservative communities — can feel like being diagnosed with heart failure and being told the best thing to do is to double-check your tax returns and those of all your neighbors.
  • These races get zero national attention. They hardly get local attention. Turnout is often lower than 20 percent. That means people who actually engage have a superpower. You, as a single dedicated volunteer, might be able to call and knock on the doors of enough voters to win a local election.”
  • “One thing I was really struck by when I first started getting involved in politics is how much power there is in just showing up to things,” she said. “If you love libraries, libraries have board meetings. Go to the public meeting. See where they’re spending their money. We’re supposed to be participating. If you want to get involved, there’s always a way.”
Javier E

Opinion | When 'Freedom' Means the Right to Destroy - The New York Times - 0 views

  • startling, although not actually surprising, has been the embrace of economic vandalism and intimidation by much of the U.S. right — especially by people who ranted against demonstrations in favor of racial justice. What we’re getting here is an object lesson in what some people really mean when they talk about “law and order.”
  • The “Freedom Convoy” has been marketed as a backlash by truckers angry about Covid-19 vaccination mandates
  • In reality, there don’t seem to have been many truckers among the protesters at the bridge (about 90 percent of Canadian truckers are vaccinated)
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  • a Bloomberg reporter saw only three semis among the vehicles blocking the Ambassador Bridge, which were mainly pickup trucks and private cars; photos taken Saturday also show very few commercial trucks.
  • this isn’t a grass-roots trucker uprising. It’s more like a slow-motion Jan. 6, a disruption caused by a relatively small number of activists, many of them right-wing extremists
  • At their peak, the demonstrations in Ottawa reportedly involved only around 8,000 people, while numbers at other locations have been much smaller.
  • it’s not hard to come up with numbers like $300 million or more per day; combine that with the disruption of Ottawa, and the “trucker” protests may already have inflicted a couple of billion dollars in economic damage
  • it’s roughly comparable to insurance industry estimates of total losses associated with the Black Lives Matter protests that followed the killing of George Floyd — protests that seem to have involved more than 15 million people.
  • In fact, the demonstrations were remarkably nonviolent; vandalism happened in a few cases, but it was relatively rare, and the damage was small considering the huge size of the protests.
  • By contrast, causing economic damage was and is what the Canadian protests are all about — because blocking essential flows of goods, threatening people’s livelihoods, is every bit as destructive as smashing a store window.
  • And to what end? The B.L.M. demonstrations were a reaction to police killings of innocent people; what’s going on in Canada is, on its face, about rejecting public health measures intended to save lives.
  • even that is mainly an excuse: What it’s really about is an attempt to exploit pandemic weariness to boost the usual culture-war agenda.
  • the U.S. right is loving it. People who portrayed peaceful protests against police killings as an existential threat are delighted by the spectacle of right-wing activists breaking the law and destroying wealth
  • Recent events have confirmed what many suspected: The right is perfectly fine, indeed enthusiastic, about illegal actions and disorder as long as they serve right-wing ends.
Javier E

March 2020: How the Fed Averted Economic Disaster - WSJ - 0 views

  • Over the week of March 16, markets experienced an enormous shock to what investors refer to as liquidity, a catchall term for the cost of quickly converting an asset into cash.
  • Mr. Powell bluntly directed his colleagues to move as fast as possible.
  • They devised unparalleled emergency-lending backstops to stem an incipient financial panic that threatened to exacerbate the unfolding economic and public-health emergencies.
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  • They were offering nearly unlimited cheap debt to keep the wheels of finance turning, and when that didn’t help, the Fed began purchasing massive quantities of government debt outright.
  • Investors dumped whatever they could, including ostensibly “risk-free” U.S. Treasury securities. As a global dash for dollars unfolded, Treasurys were no longer serving as the market’s traditional shock absorbers, amplifying extreme turmoil on Wall Street.
  • By week’s end, the Dow had plunged more than 10,000 points since mid-February as investors struggled to get their arms around what a halt to global commerce would mean for businesses that would soon have no revenue.
  • “It was sheer, unadulterated panic, of a magnitude that was far worse than in 2008 and 2009. Far worse,”
  • The idea of shutting down markets was especially discouraging: “It was a profoundly un-American thing to contemplate, to just shut everything down, and almost fatalistic—that we’re not going to get out of this.”
  • nearly two years later, most agree that the Fed’s actions helped to save the economy from going into a pandemic-induced tailspin.
  • “My thought was—I remember this very clearly—‘O.K. We have a four-or-five-day chance to really get our act together and get ahead of this. We’re gonna try to get ahead of this,’” Mr. Powell recalled later. “And we were going to do that by just announcing a ton of stuff on Monday morning.”
  • It worked. The Fed’s pledges to backstop an array of lending, announced on Monday, March 23, would unleash a torrent of private borrowing based on the mere promise of central bank action—together with a massive assist by Congress, which authorized hundreds of billions of dollars that would cover any losses.
  • If the hardest-hit companies like Carnival, with its fleet of 104 ships docked indefinitely, could raise money in capital markets, who couldn’t?
  • on April 9, where he shed an earlier reluctance to express an opinion about government spending policies, which are set by elected officials and not the Fed. He spoke in unusually moral terms. “All of us are affected,” he said. “But the burdens are falling most heavily on those least able to carry them…. They didn’t cause this. Their business isn’t closed because of anything they did wrong. This is what the great fiscal power of the United States is for—to protect these people as best we can from the hardships they are facing.”
  • They were extraordinary words from a Fed chair who during earlier, hot-button policy debates said the central bank needed to “stay in its lane” and avoid providing specific advice.
  • To avoid a widening rift between the market haves (who had been given access to Fed backstops) and the market have-nots (who had been left out because their debt was deemed too risky), Mr. Powell had supported a decision to extend the Fed’s lending to include companies that were being downgraded to “junk” status in the days after it agreed to backstop their bonds.
  • Most controversially, Mr. Powell recommended that the Fed purchase investment vehicles known as exchange-traded funds, or ETFs, that invest in junk debt. He and his colleagues feared that these “high-yield” bonds might buckle, creating a wave of bankruptcies that would cause long-term scarring in the economy.
  • Mr. Powell decided that it was better to err on the side of doing too much than not doing enough.
  • , Paul Singer, who runs the hedge-fund firm Elliott Management, warned that the Fed was sowing the seeds of a bigger crisis by absolving markets of any discipline. “Sadly, when people (including those who should know better) do something stupid and reckless and are not punished,” he wrote, “it is human nature that, far from thinking that they were lucky to have gotten away with something, they are encouraged to keep doing the stupid thing.”
  • The breathtaking speed with which the Fed moved and with which Wall Street rallied after the Fed’s announcements infuriated Dennis Kelleher, a former corporate lawyer and high-ranking Senate aide who runs Better Markets, an advocacy group lobbying for tighter financial regulations.
  • This is a ridiculous discussion no matter how heartfelt Powell is about ‘we can’t pick winners and losers’—to which my answer is, ‘So instead you just make them all winners?’”
  • “Literally, not only has no one in finance lost money, but they’ve all made more money than they could have dreamed,” said Mr. Kelleher. “It just can’t be the case that the only thing the Fed can do is open the fire hydrants wide for everybody
  • Mr. Powell later defended his decision to purchase ETFs that had invested in junk debt. “We wanted to find a surgical way to get in and support that market because it’s a huge market, and it’s a lot of people’s jobs… What were we supposed to do? Just let them die and lose all those jobs?” he said. “If that’s the biggest mistake we made, stipulating it as a mistake, I’m fine with that. It wasn’t time to be making finely crafted judgments,” Mr. Powell said. He hesitated for a moment before concluding. “Do I regret it? I don’t—not really.”
  • “We didn’t know there was a vaccine coming. The pandemic is just raging. And we don’t have a plan,” said Mr. Powell. “Nobody in the world has a plan. And in hindsight, the worry was, ‘What if we can’t really fully open the economy for a long time because the pandemic is just out there killing people?’”
  • Mr. Powell never saw this as a particularly likely outcome, “but it was around the edges of the conversation, and we were very eager to do everything we could to avoid that outcome,”
  • The Fed’s initial response in 2020 received mostly high marks—a notable contrast with the populist ire that greeted Wall Street bailouts following the 2008 financial crisis. North Carolina Rep. Patrick McHenry, the top Republican on the House Financial Services Committee, gave Mr. Powell an “A-plus for 2020,” he said. “On a one-to-10 scale? It was an 11. He gets the highest, highest marks, and deserves them. The Fed as an institution deserves them.”
  • The pandemic was the most severe disruption of the U.S. economy since the Great Depression. Economists, financial-market professionals and historians are only beginning to wrestle with the implications of the aggressive response by fiscal and monetary policy makers.
  • Altogether, Congress approved nearly $5.9 trillion in spending in 2020 and 2021. Adjusted for inflation, that compares with approximately $1.8 trillion in 2008 and 2009.
  • By late 2021, it was clear that many private-sector forecasters and economists at the Fed had misjudged both the speed of the recovery and the ways in which the crisis had upset the economy’s equilibrium. Washington soon faced a different problem. Disoriented supply chains and strong demand—boosted by government stimulus—had produced inflation running above 7%.
  • because the pandemic shock was akin to a natural disaster, it allowed Mr. Powell and the Fed to sidestep concerns about moral hazard—that is, the possibility that their policies would encourage people to take greater risks knowing that they were protected against larger losses. If a future crisis is caused instead by greed or carelessness, the Fed would have to take such concerns more seriously.
  • The high inflation that followed in 2021 might have been worse if the U.S. had seen more widespread bankruptcies or permanent job losses in the early months of the pandemic.
  • an additional burst of stimulus spending in 2021, as vaccines hastened the reopening of the economy, raised the risk that monetary and fiscal policy together would flood the economy with money and further fuel inflation.
  • The surge in federal borrowing since 2020 creates other risks. It is manageable for now but could become very expensive if the Fed has to lift interest rates aggressively to cool the economy and reduce high inflation.
  • The Congressional Budget Office forecast in December 2020 that if rates rose by just 0.1 percentage point more than projected in each year of the decade, debt-service costs in 2030 would rise by $235 billion—more than the Pentagon had requested to spend in 2022 on the Navy.
  • its low-rate policies have coincided with—and critics say it has contributed to—a longer-running widening of wealth inequality.
  • In 2008, household wealth fell by $8 trillion. It rose by $13.5 trillion in 2020, and in the process, spotlighted the unequal distribution of wealth-building assets such as houses and stocks.
  • Without heavy spending from Washington, focused on the needs of the least well-off, these disparities might have attracted more negative scrutiny.
  • Finally, the Fed is a technocratic body that can move quickly because it operates under few political constraints. Turning to it as the first line of defense in this and future crises could compromise its institutional independence.
  • Step one, he said, was to get in the fight and try to win. Figuring out how to exit would be a better problem to have, because it would mean they had succeeded.
  • “We have a recovery that looks completely unlike other recoveries that we’ve had because we’ve put so much support behind the recovery,” Mr. Powell said last month. “Was it too much? I’m going to leave that to the historians.”
  • The final verdict on the 2020 crisis response may turn on whether Mr. Powell is able to bring inflation under control without a painful recession—either as sharp price increases from 2021 reverse on their own accord, as officials initially anticipated, or because the Fed cools down the economy by raising interest rates.
Javier E

Opinion | For Ukraine, Europe Thinks Russia's Putin Wants More Than War - The New York ... - 0 views

  • In the final weeks of World War I, a German general sent a telegram to his Austrian allies summarizing the situation. It was, he wrote, “serious, but not catastrophic.” The reply came back: “Here the situation is catastrophic, but not serious.”
  • “The U.S. thinks Putin will do a full-blown war,” he said. “Europeans think he’s bluffing.”
  • full-scale war is generally as unimaginable for a Western European public as an alien invasion. The many decades of peace in Western Europe, combined with the continent’s deep dependence on Russia’s oil and gas, incline officials to assume aggressive Russian moves must be a ruse.
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  • Europeans and Ukrainians are skeptical of a major Russian invasion in Ukraine not because they have a more benign view of Mr. Putin than their American counterparts. On the contrary, it’s because they see him as more malicious. War, they reason, is not the Kremlin’s game. Instead, it’s an extensive suite of tactics designed to destabilize the West. For Europe, the threat of war could turn out to be more destructive than war itself.
  • that much is clear: The Kremlin wants a symbolic break from the 1990s, burying the post-Cold War order. That would take the form of a new European security architecture that recognizes Russia’s sphere of influence in the post-Soviet space and rejects the universality of Western values.
  • the goal is the recovery of what Mr. Putin regards as historic Russia.
  • Europeans and presumably Ukrainians believe that a hybrid strategy — involving military presence on the border, weaponization of energy flows and cyberattacks — will serve him better.
  • To see how that might play out, we need only look to Germany. Before the crisis, Germany was America’s closest ally in Europe, boasted a special relationship with Moscow and was the most important partner for Eastern and Central Europe. Today, some in Washington have questioned the country’s willingness to confront Russia, Berlin’s relationship with Moscow is fast deteriorating, and many Eastern Europeans are agitated by Germany’s apparent reluctance to come to their support.
  • The policy of maximum pressure, short of an invasion, may end up dividing and paralyzing NATO.
  • Germany, crucially, has not changed — but the world in which it acts has. (The country is “like a train that stands still after the railway station has caught fire,”
  • Today, geopolitical strength is determined not by how much economic power you can wield but by how much pain you can endure. Your enemy, unlike during the Cold War, is not somebody behind an iron curtain but somebody with whom you trade, from whom you get gas and to whom you export high-tech goods. Soft power has given way to resilience.
  • That’s a problem for Europe. If Mr. Putin’s success will be determined by the ability of Western societies to steel themselves for the pressure of high energy prices, disinformation and political instability over a prolonged period, then he has good reason to be hopeful
  • Europe is signally unprepared for these challenges. Remedying that, through investment in military capabilities, energy diversification and building social cohesion, should be the continent’s focus.
  • “If you invite a bear to dance, it’s not you who decides when the dance is over,” the Russian proverb goes. “It’s the bear.”
Javier E

NATO should avoid learning the wrong lessons from Russia's blunder in Ukraine, says Mic... - 0 views

  • It may be tempting to believe that because Ukraine has done remarkably well against Russian forces, a NATO victory could be taken for granted in almost any scenario. That is the wrong lesson to take away from this war
  • Another area where Russia fell flat was its inability to scale up operations. What its army could do on a lesser scale in 2014 and 2015, it could not replicate across Ukraine. From communications to logistics, combined arms and beyond, Russia’s armed forces lacked experience in large-scale operations prior to the invasion, and it showed.
  • the Russian armed forces are not just suffering from a bad plan in Ukraine. From the perspective of training, leadership and discipline, their army has serious deficiencies. However, there is much about the war that we still do not know, and our early interpretations of it could be wrong
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  • Ultimately, a reassessment will be in order, not just of where the Russian armed forces are, but where they are going.
  • The peculiarities of the situation in which a war occurs strongly determine how military power manifests and whether it can achieve political aims. An American defeat in Afghanistan offers few insights on how a war with China might go.
  • The Russian armed forces will take years to recover from this blunder but, at the same time, failure is often a better teacher than success.
  • this shift in perceptions should not mislead NATO members into the belief that, in a different context, Russia would be easily defeated.
  • The conflict serves as a fresh reminder that sustained conventional war hinges on the availability of manpower, materiel, ammunition and defence industrial capacity to sustain it.
  • It follows that the alliance should not take a dismissive attitude towards Russia, or become complacent. Despite significant losses, the Russian army will rebuild sooner or later. Sanctions will affect Russia’s defence industry, but writing Russia off as a military power would be the wrong lesson to learn from this war.
Javier E

To Keep Putin and His Oligarchs Afloat, It Takes a System - The New York Times - 0 views

  • We tend to think of corruption as a failure of morality, when a greedy person decides to benefit by steering public resources toward private gain.
  • But while that’s not exactly untrue, it misses the most important thing: namely, that corruption is a group activity. You need bribe-payers and bribe-takers, resource-diverters and resource-resellers, look-the-other-wayers and demand-a-share-of-the-takers.
  • When that kind of corrupt network behavior becomes widespread, it creates its own parallel system of rewards — and punishments.
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  • “What is different with systemic corruption is that it’s the expected behavior,”
  • “These expectations make it very difficult for all individuals, actually, to stand against corruption, because it’s very costly in all different ways to resist that kind of system.”
  • Those who refuse to participate in the parallel economy of favors and bribes get passed over for promotion, cut off from benefits, and frozen out of power.
  • The result is a system where power and wealth accrue to those willing to play the corruption game, and those who are not get left behind.
  • Corruption “serves as a regressive tax, it’s like Robin Hood in reverse,” Persson told me. “All the resources are moved to the top of the system, to the great cost of the majority of the population.”
  • But why did corruption in Russia get that bad? The answer, and maybe a counterintuitive one, is in democratization.
  • There was corruption in the Soviet Union. But after its dissolution in 1991, the sudden explosive growth of freedom of expression and freedom of association in Russia and the other former Soviet countries and satellites brought new opportunities, not just for political and economic development, but for crime and corruption.
  • “Freedoms of expression and association don’t only have to be used for good things, they can be used for illegal activities, too,” McMann said. “When people can more easily get together and talk, that enables them to actually plan corrupt activity.”
  • That wouldn’t have been so bad if democratization had also brought in checks on executive power, an independent judiciary to investigate and prosecute crimes. “In order to have capitalism have functioning markets, you also need to build institutions. You need banks that can provide credit, you need a strong legal system that will protect property.”
  • Estonia followed that path. After the Soviet Union fell, Estonia’s new, democratically elected parliament strengthened the judiciary and introduced new checks on executive power. There, corruption fell.
  • But in Russia, the government heeded Western advisers’ urging to get the state out of the economy as much as possible in order to let free markets flourish. Institutions and constraints fell by the wayside. In that vacuum, the parallel structures of corruption flourished, crowding honest politicians out of government and honest businesses out of the market.
  • By the late 1990s, official corruption had flourished at every level of the government. In 1999, as President Boris Yeltsin’s presidency began to weaken, elites pressured him to leave office on their terms. If Yeltsin would anoint their handpicked successor, they would ensure that he and his family did not face prosecution for misappropriation of government funds.
Javier E

Opinion | From Voodoo to MAGA to Buffalo - The New York Times - 0 views

  • What has changed, however, is the behavior of Republican elites, who used to push back against conspiracy theories but now cheerfully embrace them whenever it seems politically expedient.
  • Which, I’d argue, is where voodoo economics comes in — not as an idea but as a determinant of the kind of people who became Republican politicians.
  • The rise of supply-side economics coincided with the rise of movement conservatism — an interlocking network of elected officials, media organizations, think tanks and lobbying firms. Because the movement’s core ideology involved reducing taxes on the rich, it was lavishly supported by billionaires and corporate interests, and this in turn meant that it offered job security to anyone who remained sufficiently loyal.
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  • Who was attracted to this movement? Many were careerists: people happy to serve as apparatchiks, following whatever the party line happened to be at the moment.
  • when I say that I miss voodoo economics, what I really mean is that I miss the illusion — which I shared — that the impact of its rise would mainly be limited to the politics of taxes and spending. What we now know is that the embrace of crank economics presaged the general moral collapse of the Republican establishment.
  • This collapse opened the door for paranoia and conspiracy theorists of all kinds
  • There is, I would argue, a direct line from the Laffer curve, to Jan. 6, to Buffalo.
Javier E

Opinion | Relentless Nostalgia Is Numbing Our Brains - The New York Times - 0 views

  • On advertising’s biggest day, I longed for anything that would propel our popular culture or even create a new catch phrase rather than tepid nostalgia recycling random celebrities.
  • “Hollywood’s dependence on old intellectual property has been a source of hand-wringing for at least the past two decades.”
  • Our internet experience is suffused with unearned and soulless nostalgia, disconnected from any original source of true feeling. Over a decade ago, BuzzFeed realized it was easy to make cheap nostalgia go viral and introduced a section “geared to bringing you back in time.”
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  • TikTok has pushed all this further and faster
  • for months afterward, the tune was the backdrop of an endless stream of TikTok videos, almost none of which evoked the song’s spirit. But the algorithm liked it, so TikTokers obliged and this went on and on and on.
  • I have the same reaction when Facebook or Instagram serves me an image from “this day” umpteen years ago: Why do I need to be reminded of the moment I was trying to sell an old bureau?
  • It’s harder to have new ideas when everything is pulling you back to the past — not in a way that inspires, or draws from a well of keen emotion, but in a way that rewards you for just repeating or reliving it.
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