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Javier E

The fourth leading cause of death in the US? Cumulative poverty | Reverend William Barber and Gregg Gonsalves | The Guardian - 0 views

  • Current poverty – just being poor right now – is seventh on that list, and it alone causes 10 times as many deaths as homicide, close to five times as many deaths as gun violence, and 2.5 times as many deaths as drug overdoses.
  • Cumulative poverty that lingers year after year is associated with approximately 60% more deaths than current poverty, putting only heart disease, cancer and smoking-related deaths ahead in the number of Americans it kills
  • poverty is right up there with these other dreaded scourges – much higher, in fact, than many ills that have inspired investigative committees, major policy investments and sustained attention from the public and private sectors in American life.
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  • if this is true, why do we hear so much about crime rates, opioids and gun violence in America, but so little from our elected leaders about the crisis of poverty? Why is there no “Surgeon General’s Warning” on low-wage jobs?
  • we as a people have become numb to the unnecessary deaths that are normalized by the ways we often think and talk about the economy in public life.
  • the United States is the leader in poverty among the rich countries of the world. As of 2019, the US had the worst poverty rate overall (17.8%) and in children specifically (20.9%) among the other 25 wealthy countries that are part of the Organization for Economic Co-operation and Development (OECD).
  • Seventy-five percent of all Americans between 20-75 years of age will be among the “current” poor or near poverty for at least one year of their lives.
  • Contrary to popular belief, poverty is hardly just the province of the inner city: only 10% of poor Americans live in high-poverty census tracts – most are spread out across the country. They are our neighbors. And although the rates of poverty are highest among communities of color, by sheer volume most people living in poverty are white.
  • poverty is a drag on our economy. Child poverty alone in the US presents an $800bn to $1.1tn price tag, based on reductions in adult productivity, criminal justice costs and the costs of healthcare for children from poor families.
  • Matthew Desmond, a sociologist at Princeton University, estimates that we could lift everyone within our borders above the poverty line for less than 1% of our national GDP – $177bn. Ending poverty is within our grasp. It is something we can accomplish together. So what’s stopping us?
  • As the economists Daron Acemoglu and James Robinson said in their 2012 book Why Nations Fail, “those who have power make choices that create poverty. They get it wrong not by mistake or ignorance but on purpose”.
  • recent book Poverty, By America: “Tens of millions of Americans do not end up poor by a mistake of history or personal conduct. Poverty persists because some wish and will it to.”
  • The incentives for maintaining the status quo, for keeping many Americans poor, rest on the fact that some people find considerable financial benefit from presiding over the misery of others
  • what a young Friedrich Engels – observing the deaths of factory-workers, the conditions of the slums, and the exploitation of children in Manchester, England in the mid-19th century – called “social murder”. Many were dying, while a few made a killing from their suffering. It was true then, and it is true now.
  • “Woe unto those who make unjust laws and rob the poor of their right.” But this prophetic challenge isn’t a condemnation. It is an invitation to life. Together, we can become the land of “liberty and justice for all” that has never yet bee
Javier E

Allina Health System in Minnesota Cuts Off Patients With Medical Debt - The New York Times - 0 views

  • An estimated 100 million Americans have medical debts. Their bills make up about half of all outstanding debt in the country.
  • About 20 percent of hospitals nationwide have debt-collection policies that allow them to cancel care, according to an investigation last year by KFF Health News. Many of those are nonprofits. The government does not track how often hospitals withhold care
  • Under federal law, hospitals are required to treat everyone who comes to the emergency room, regardless of their ability to pay. But the law — called the Emergency Medical Treatment and Labor Act — is silent on how health systems should treat patients who need other kinds of lifesaving care, like those with aggressive cancers or diabetes.
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  • But the federal rules do not dictate how poor a patient needs to be to qualify for free care
  • In exchange, the Internal Revenue Service requires Allina and thousands of other nonprofit hospital systems to benefit their local communities, including by providing free or reduced-cost care to patients with low incomes.
  • In 2020, thanks to its nonprofit status, Allina avoided roughly $266 million in state, local and federal taxes, according to the Lown Institute, a think tank that studies health care.
  • Doctors and patients described being unable to complete medical forms that children needed to enroll in day care or show proof of vaccination for school.
  • Allina is one of Minnesota’s largest health systems, having largely grown through acquisitions. Since 2013, its annual profits have ranged from $30 million to $380 million. Last year was the first in the past decade when it lost money, largely owing to investment losses.
  • The financial success has paid dividends. Allina’s president earned $3.5 million in 2021, the most recent year for which data is available. The health system recently built a $12 million conference center.
  • Allina sometimes plays hardball with patients. Doctors have become accustomed to seeing messages in the electronic medical record notifying them that a patient “will no longer be eligible to receive care” because of “unpaid medical balances.”
  • In 2020, Allina spent less than half of 1 percent of its expenses on charity care, well below the nationwide average of about 2 percent for nonprofit hospitals
  • Serena Gragert, who worked as a scheduler at an Allina clinic in Minneapolis until 2021, said the computer system simply wouldn’t let her book future appointments for some patients with outstanding balances.
  • Ms. Gragert and other Allina employees said some of the patients who were kicked out had incomes low enough to qualify for Medicaid, the federal-state insurance program for poor people. That also means those patients would be eligible for free care under Allina’s own financial assistance policy — something many patients are unaware exists when they seek treatment.
  • Allina says the policy applies only to debts related to care provided by its clinics, not its hospitals. But patients said in interviews that they got cut off after falling into debt for services they received at Allina’s hospitals.
  • Jennifer Blaido lives in Isanti, a small town outside Minneapolis, and Allina owns the only hospital there. Ms. Blaido, a mechanic, said she racked up nearly $200,000 in bills from a two-week stay at Allina’s Mercy Hospital in 2009 for complications from pneumonia, along with several visits to the emergency department for asthma flare-ups
  • Ms. Blaido, a mother of four, said most of the hospital stay was not covered by her health insurance and she was unable to scrounge together enough money to make a dent in the debt.
  • Last year, Ms. Blaido had a cancer scare and said she couldn’t get an appointment with a doctor at Mercy Hospital. She had to drive more than an hour to get examined at a health system unconnected to Allina
  • In court filings, the couple described how Allina canceled Ms. Anderson’s appointments and told her that she could not book new ones until she had set up three separate payment plans — one with the health system and two with its debt collectors.Even after setting up those payment plans, which totaled $580 a month, the canceled appointments were never restored. Allina allows patients to come back only after they have paid the entire debt.
  • When the Andersons asked in court for a copy of Allina’s policy of barring patients with unpaid bills, the hospital’s lawyers responded: “Allina does not have a written policy regarding the canceling of services or termination of scheduled and/or physician referral services or appointments for unpaid debts.”In fact, Allina’s policy, which was created in 2006, instructs employees on how to do exactly that. Among other things, it tells staff to “cancel any future appointments the patient has scheduled at any clinic.”
  • It does provide a few ways for patients to continue being seen despite their unpaid bills. One is by getting approved for a loan through the hospital. Another is by filing for bankruptcy.
Javier E

We're All Just Having Fun Here - Freddie deBoer - 0 views

  • perhaps we could consider what this means about the larger moment. That is indeed what liberatory politics amount to, now: a joke. It’s a LARP, cosplay, kayfabe. Self-parody. The theater of the absurd. A pastime, a shared bit of gallows humor. Nobody believes in the capacity for actual liberation, in any meaningful sense. It resides entirely in the world of wistful humor. People are defensive about the orcas because they have no actual movement to be defensive about.
  • Though we still live in the same world of rabidly emotional politics, the notion that the unrest of 2020 might lead to lasting material change is now so quaint as to be actively embarrassing.
  • BlackLivesMatter has proven to be a font of petty corruption and chronic mismanagement of funds, while the organic energy it cultivated three years ago has been dispersed into a series of nonprofit jobs and elite college scholarships, into diversity statements and language codes, which obviously don’t threaten the edifice of racial inequality
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  • As so many IRL organizing meetings are, the meeting was admirably focused on the here and now. There was little to complain about. But when a speaker closed by saying “All power to the people,” I winced. Because it was emblematic of that inescapable feeling that attends radical politics now - the feeling that it’s all kitsch, like a Googie-architecture portrayal of the space age.
  • The palpable sense that everyone is quietly aware that the whole thing is a type of pantomime, people going through the motions with no real sense of possibility, unwilling to entirely give up on the profound moral necessity of radical change but at this point entirely incapable of lying to themselves about the reality of what’s actually possible
  • We are all of us at a lefty Renaissance festival, our hammer and sickles no more authentic than Ye Olde Meade Hall, feeling like parents trying to keep the myth of Santa Claus alive to a child that’s probably just too old to keep buying it
  • you know what would be a much bigger symbol of radical progress than some killer whales attacking a couple dozen random small watercraft? A diverse working-class movement based on shared economic need, coming together across demographic distance and using their labor power to earn a better, more just world for all people, rallying under a banner of shared sacrifice and the universal brotherhood of all. But nobody, nobody believes that such a thing is possible. Not anymore
  • It’s easier to imagine whales delivering our salvation than it is to imagine us delivering it to ourselves.
  • Yes, enjoying orcas attacking some random boats is natural and funny, and rolling that into a metaphor of radical politics in a humorous way is fine. But that’s not all that’s been happening with this story, is it? I’m not just talking about a few random tweets, here. I’ve been following this story for days now, in various forums, and growing increasingly sad as people seem to invest more and more in this, emotionally. What’s going on here, exactly?
  • I was at an organizing meeting not too long ago, one put together by a good local lefty organizatio
Javier E

Opinion | Germany's unlikely success story is an inspiration in tough times - The Washington Post - 0 views

  • One of the most striking positive trends in the world these days can be found in the democratic strength, character and leadership of Germany.
  • This came to mind as I was reading German Chancellor Olaf Scholz’s speech this week in Prague, in which he promised that his country would support Ukraine “reliably and for as long as it takes.” He explained that Germany had “undergone a fundamental change” on providing military aid to Ukraine. He affirmed Germany’s support for a stronger, more integrated Europe — one that would welcome new members that aspire to Europe’s democratic values and ideals.
  • This is all part of what he calls a Zeitenwende in German foreign policy, a “turning of the times.”
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  • it is also the continuation of a remarkably consistent German attitude toward Europe and the world since 1945. Think about how different the world would look if we did not have, at the center of Europe, its most powerful nation — the country that is the largest net contributor to the E.U. — totally committed to democratic and liberal values and willing to make sacrifices for them. Germany today is the rock on which a new Europe is being built.
  • the sacrifices are real and deep. Natural gas prices are up tenfold in Europe compared to last year. The price of electricity for 2023 is more than 15 times higher than it has been in recent years, by one estimate. Vladimir Putin is ramping up the pressure by slowing and even stopping gas exports to Germany
  • But Germany has not given in. Confronted with these massive challenges, it has patiently sought to diversify away from a dependence on Russia, investing even more in green technology, buying liquefied natural gas, reopening coal-fired plants and even debating whether to keep its last three nuclear power plants running longer than planned.
  • The European Union has suggested a 15 percent reduction in the consumption of natural gas this winter. Germany is trying to achieve a 20 percent cut just to be safe. German industry is being resourceful about energy efficiency, and companies are even thinking about sharing resources with competitors, all to get through the crisis.
  • Merkel herself was seen in similar ways when she came to power. Over time she developed the skills and stature to gain respect from all quarters. She might have erred in trying to develop too conciliatory a relationship with Moscow
  • but when Russia invaded Ukraine in 2014, she was at the forefront in condemning it and persuading Europe to impose an ambitious program of sanctions. She also led the world in responding to the Syrian refugee crisis, reassuring her country by declaring, “We can do this.” As of mid-2021, Germany hosts more than 1.2 million refugees, half of whom are from Syria. In fact, Germany has managed this stunning act of integration with minimal problems.
  • We always underestimate modern-day Germany and its leadership. The federal republic has had a remarkable run of leaders in the post-World War II era, from its first chancellor, Konrad Adenauer, to Willy Brandt to Helmut Schmidt to Merkel — and now, let’s hope, to Scholz. Can any other country compare over the past seven decades?
  • In 1945, no one would have predicted that Germany would develop as it has. It came out of the war utterly destroyed, its cities flattened, its population starving. Around 12 million ethnic Germans who had been expelled from other countries poured into Germany. Above all, postwar Germany was scarred by the gruesome legacy of Adolf Hitler and the Holocaust. But the country found a way to overcome its past, to become, in Henry Kissinger’s words, “a normal country … with an abnormal memory.” And that much larger Zeitenwende is one of the great good news stories of our times.
Javier E

Amazon Prime Day Is Dystopian - The Atlantic - 0 views

  • hen Prime was introduced, in 2005, Amazon was relatively small, and still known mostly for books. As the company’s former director of ordering, Vijay Ravindran, told Recode’s Jason Del Rey in 2019, Prime “was brilliant. It made Amazon the default.”
  • It created incentives for users to be loyal to Amazon, so they could recoup the cost of membership, then $79 for unlimited two-day shipping. It also enabled Amazon to better track the products they buy and, when video streaming was added as a perk in 2011, the shows they watch, in order to make more things that the data indicated people would want to buy and watch, and to surface the things they were most likely to buy and watch at the very top of the page.
  • And most important, Prime habituated consumers to a degree of convenience, speed, and selection that, while unheard-of just years before, was made standard virtually overnight.
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  • “It is genius for the current consumer culture,” Christine Whelan, a clinical professor of consumer science at the University of Wisconsin at Madison, told me. “It encourages and then meets the need for the thing, so we then continue on the hedonic treadmill: Buy the latest thing we want and then have it delivered immediately and then buy the next latest thing.”
  • With traditional retail, “there’s the friction of having to go to the store, there’s the friction of will the store have it, there’s the friction of carrying it,” Whelan said. “There’s the friction of having to admit to another human being that you’re buying it. And when you remove the friction, you also remove a lot of individual self-control. The more you are in the ecosystem and the easier it is to make a purchase, the easier it is to say yes to your desire rather than no.”
  • “It used to be that being a consumer was all about choice,”
  • But now, “two-thirds of people start their product searches on Amazon.
  • Prime discourages comparison shopping—looking around is pointless when everything you need is right here—even as Amazon’s sheer breadth of products makes shoppers feel as if they have agency.
  • “Consumerism has become a key way that people have misidentified freedom,”
  • what Amazon represents is a corporate infrastructure that is increasingly directed at getting as many consumers as possible locked into a consumerist process—an Amazon consumer for life.”
  • Amazon offers steep discounts to college students and new parents, two groups that are highly likely to change their buying behavior. It keeps adding more discounts and goodies to the Prime bundle, making subscribing ever more appealing. And, in an especially sinister move, it makes quitting Prime maddeningly difficult.
  • As subscription numbers grew through the 2010s, the revenue from them helped Amazon pump more money into building fulfillment centers (to get products to people even faster), acquiring new businesses (to control even more of the global economy), and adding more perks to the bundle (to encourage more people to sign up)
  • In 2019, Amazon shaved a full day off its delivery time, making one-day shipping the default, and also making Prime an even more tantalizing proposition: Why hop in the car for anything at all when you could get it delivered tomorrow, for free?
  • the United States now has more Prime memberships than households. In 2020,
  • Amazon’s revenue from subscriptions alone—mostly Prime—was $25.2 billion, which is a 31 percent increase from the previous year
  • Thanks in large part to the revenue from Prime subscriptions and from the things subscribers buy, Amazon’s value has multiplied roughly 97 times, to $1.76 trillion, since the service was introduced. Amazon is the second-largest private employer in the United States, after Walmart, and it is responsible for roughly 40 percent of all e-commerce in the United States.
  • It controls hundreds of millions of square feet across the country and is opening more fulfillment centers all the time. It has acquired dozens of other companies, most recently the film studio MGM for $8.5 billion. Its cloud-computing operation, Amazon Web Services, is the largest of its kind and provides the plumbing for a vast swath of the internet, to a profit of $13.5 billion last year.
  • Amazon has entered some 40 million American homes in the form of the Alexa smart speaker, and some 150 million American pockets in the form of the Amazon app
  • “Amazon is a beast we’ve never seen before,” Alimahomed-Wilson told me. “Amazon powers our Zoom calls. It contracts with ICE. It’s in our neighborhoods. This is a very different thing than just being a large retailer, like Walmart or the Ford Motor Company.”
  • I find it useful to compare Big Tech to climate change, another force that is altering the destiny of everyone on Earth, forever. Both present themselves to us all the time in small ways—a creepy ad here, an uncommonly warm November there—but are so big, so abstract, so everywhere that they’re impossible for any one person to really understand
  • Both are the result of a decades-long, very human addiction to consumption and convenience that has been made grotesque and extreme by the incentives and mechanisms of the internet, market consolidation, and economic stratification
  • Both have primarily been advanced by a small handful of very big companies that are invested in making their machinations unseeable to the naked eye.
  • Speed and convenience aren’t actually free; they never are. Free shipping isn’t free either. It just obscures the real price.
  • Next-day shipping comes with tremendous costs: for labor and logistics and transportation and storage; for the people who pack your stuff into those smiling boxes and for the people who deliver them; for the planes and trucks and vans that carry them; for the warehouses that store them; for the software ensuring that everything really does get to your door on time, for air-conditioning and gas and cardboard and steel. Amazon—Prime in particular—has done a superlative job of making all those costs, all those moving parts, all those externalities invisible to the consumer.
  • The pandemic drove up demand for Amazon, and for labor: Last year, company profits shot up 70 percent, Bezos’s personal wealth grew by $70 billion, and 1,400 people a day joined the company’s workforce.
  • Amazon is so big that every sector of our economy has bent to respond to the new way of consuming that it invented. Prime isn’t just bad for Amazon’s workers—it’s bad for Target’s, and Walmart’s. It’s bad for the people behind the counter at your neighborhood hardware store and bookstore, if your neighborhood still has a hardware store and a bookstore. Amazon has accustomed shoppers to a pace and manner of buying that depends on a miracle of precision logistics even when it’s managed by one of the biggest companies on Earth. For the smaller guys, it’s downright impossible.
  • “Every decision we make is based upon the fact that Amazon can get these books cheaper and faster. The prevailing expectation is you can get anything online shipped for”— he scrunched his fingers into air quotes—“‘free,’ in one or two days. And there’s really only one company that can do that. They do that because they’re willing to push and exploit their workers.”
  • Just as abstaining from flying for moral reasons won’t stop sea-level rise, one person canceling Prime won’t do much of anything to a multinational corporation’s bottom line. “It’s statistically insignificant to Amazon. They’ll never feel it,” Caine told me. But, he said, “the small businesses in your neighborhood will absolutely feel the addition of a new customer. Individual choices do make a big difference to them.”
  • Whelan teaches a class at UW called Consuming Happiness, and she is fond of giving her students the adage that you can buy happiness—“if you spend your money in keeping with your values: spending prosocially, on experiences. Tons of research shows us this.”
Javier E

In China Businesses Cut Prices as Consumers Spend Less - The New York Times - 0 views

  • The shift to thrift is a worrying sign for China’s leaders, who need people to spend more. To stimulate growth, policymakers are banking on an increase in domestic consumption as an alternative to the boom-or-bust cycle of infrastructure spending and real estate investment that has left local governments and developers awash in debt.
  • “Chinese people actually don’t have a lot of money in their pockets, so the policy of relying on people’s consumption to promote China’s economy hasn’t been successful,” said He-Ling Shi, an associate economics professor at Monash University in Melbourne, Australia. “With people cutting back on spending, it’s even less likely to succeed.”
  • Instead of buying coffee at Starbucks, Ms. Chen said, she chooses between Luckin and Cotti based on “whichever is cheaper.” She used to use an expensive Japanese skin toner, but she switched to a Chinese brand that is 90 percent cheaper. She also stopped shopping at Victoria’s Secret for bras and underwear, choosing a no-name brand that costs $3 each.
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  • “The economic momentum has clearly petered out,” Ms. Chen said. “I don’t know what I want to save money for, but I just feel that having some money would make me feel more secure.”
  • When China did away with its “zero-Covid” restrictions in December, there was anticipation that the economy would rebound from pent-up demand. But confidence began to wane from a deepening real estate crisis and a steady stream of disappointing economic indicators. Consumer spending started to slow.From January to May, retail sales grew 9.3 percent from a year earlier. But growth slowed substantially starting in June and has not rebounded to previous levels.
  • Even when pockets of spending picked up from pandemic lows, they remained far from pre-Covid levels.
Javier E

America Needs a New Way to Measure Poverty - The Atlantic - 0 views

  • Income is one vital indicator of well-being, but it is not the only one: Things like health outcomes and social mobility matter too.
  • we should shift our focus from poverty to disadvantage. Disadvantage is a more useful term than poverty because we aren’t just talking about income—we’re trying to capture the complexity of a person’s life chances being hindered by multiple circumstances
  • Disadvantage is more accurate because it implies an injustice. People are being held back—unfairly.
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  • Thanks to social-science research, we now know that children’s life chances are profoundly affected by their context—not only income and family circumstances but also their community—more so than by their genetic profile or the medical care they receive.
  • With this in mind, we created what we call the Index of Deep Disadvantage, which reflects two traditional measures of income (the poverty rate and the “deep poverty rate,” meaning those with incomes below half the poverty line), two markers of health (birth weight and life expectancy), and the rate of social mobility for children who grow up in low-income families. We used this index to rank the roughly 3,100 counties in the United States along with the 500 most populous cities.
  • Immediately, the rankings revealed a stark geographical pattern.
  • the most disadvantaged places on our index were primarily rural
  • Though some of these were majority white, most were majority Black or Hispanic.
  • these places resembled, well, colonies—internal colonies within the U.S.
  • Considerable poverty exists in Chicago, Los Angeles, and New York. But in our apples-to-apples comparison, none of those cities ranked among even the 600 most disadvantaged places in the nation
  • The only cities on that list were a relatively small number of industrial municipalities such as Cleveland, Detroit, and Rochester.
  • Those living in the 200 most disadvantaged places on our index were just as likely to have major difficulties paying for housing as those in America’s 500 largest cities.
  • The places that our index identified as the 200 most disadvantaged are concentrated in three regions—Appalachia, South Texas, and the southern Cotton Belt.
  • hese places share a history of intensive resource extraction and human exploitation not seen to the same degree elsewhere in the United States
  • In each place, this economic pattern emerged (or, in the case of the Cotton Belt, fully flourished) in the late 19th or early 20th century. In each place, one industry came to dominate the economy, a pattern that held, broadly, until the 1960s, when King Cotton, King Tobacco, King Coal, and South Texas agriculture, would bow to the twin forces of automation and global competition.
  • many places with large Native American populations ranked among the most disadvantaged in the nation
  • While visiting many of the nation’s most disadvantaged places, we set out to build on this work through historical research, ethnographic observations, and in-depth interviews.
  • For generations, the appearance of towns in South Texas followed a pattern of social hierarchy: sturdy wood-frame houses, paved streets, and enclosed sewers in the white neighborhoods; shacks, dirt roads, and privies in the Mexican parts of town. Forced to migrate to find work during the off-season, generations of Mexican American children lost their right to a decent education. Even today, adult-illiteracy rates in these places are among the highest in the nation.
  • in Leflore County, Mississippi, for example, Black residents told us that violence was the No. 1 problem they face. The rate of death due to interpersonal violence there was nearly four times the national average, and well above that of Cook County, Illinois, home to Chicago
  • Throughout these regions, we saw the same themes emerge again and again—unequal schooling, the collapse of social infrastructure, violence, entrenched public corruption, and structural racism embedded in government programs.
  • Overall, poverty rates in these places are very low, babies are born healthy, people live to a ripe old age, and a low-income child usually has a similar chance of making it into the middle class as any other kid.
  • er they were forcibly relocated onto land mostly inhospitable to human habit
  • hey have enjoyed the lowest rates of violent crime, income inequality, and public corruption in the nation. These counties are unusually rich in social capital: Residents are connected to one another through volunteerism, membership in civic organizations, and participation in other community activities.
  • these communities have been more successful than most in preventing poverty, promoting health, and ensuring a level playing field for their children.
  • One cannot fully understand the benefits enjoyed in America’s most advantaged places without considering the historic (and ongoing) exploitation of migrant labor that has gone on in them, mostly drawn from the U.S. border regions.
  • Counties that rank among those of greatest advantage began as agricultural communities with modestly sized farms, many originally secured through the 1862 Homestead Act that made landownership widely available. Many of these places have built on this history of broad-based wealth by making significant investments in schools, which has contributed to high graduation and college enrollment rates over generations.
  • The upper Midwest is also overwhelmingly white. When we examined the relationship between whiteness and rank on the index, we found that a higher percentage of white residents is a significant predictor of a place’s rank, which is not at all surprising when one considers that the good schools and the good jobs have long been bestowed liberally on whites while being denied to Hispanic and Black Americans.
  • What makes the communities that are most advantaged unique is their histories as places of broad-based wealth. How different would conditions be in other parts of the country had they followed a similar, equitable course?
  • The lesson is that people seem to thrive—not always in high salaries but in health and life chances—when inequality is low; when landownership is widespread; when social connection is high; and when corruption and violence are rare.
  • The social leveling that is characteristic of communities in the upper Midwest is more than just a quaint cultural feature. It is the foundation of a community’s well-being. Until these regions’ virtues are shared nationwide, poverty and disadvantage will continue to haunt America.
Javier E

AI is about to completely change how you use computers | Bill Gates - 0 views

  • Health care
  • before the sophisticated agents I’m describing become a reality, we need to confront a number of questions about the technology and how we’ll use it.
  • Today, AI’s main role in healthcare is to help with administrative tasks. Abridge, Nuance DAX, and Nabla Copilot, for example, can capture audio during an appointment and then write up notes for the doctor to review.
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  • agents will open up many more learning opportunities.
  • Already, AI can help you pick out a new TV and recommend movies, books, shows, and podcasts. Likewise, a company I’ve invested in, recently launched Pix, which lets you ask questions (“Which Robert Redford movies would I like and where can I watch them?”) and then makes recommendations based on what you’ve liked in the past
  • Productivity
  • copilots can do a lot—such as turn a written document into a slide deck, answer questions about a spreadsheet using natural language, and summarize email threads while representing each person’s point of view.
  • I don’t think any single company will dominate the agents business--there will be many different AI engines available.
  • Helping patients and healthcare workers will be especially beneficial for people in poor countries, where many never get to see a doctor at all.
  • To create a new app or service, you won’t need to know how to write code or do graphic design. You’ll just tell your agent what you want. It will be able to write the code, design the look and feel of the app, create a logo, and publish the app to an online store
  • Agents will do even more. Having one will be like having a person dedicated to helping you with various tasks and doing them independently if you want. If you have an idea for a business, an agent will help you write up a business plan, create a presentation for it, and even generate images of what your product might look like
  • For decades, I’ve been excited about all the ways that software would make teachers’ jobs easier and help students learn. It won’t replace teachers, but it will supplement their work—personalizing the work for students and liberating teachers from paperwork and other tasks so they can spend more time on the most important parts of the job.
  • Mental health care is another example of a service that agents will make available to virtually everyone. Today, weekly therapy sessions seem like a luxury. But there is a lot of unmet need, and many people who could benefit from therapy don’t have access to it.
  • Entertainment and shopping
  • The real shift will come when agents can help patients do basic triage, get advice about how to deal with health problems, and decide whether they need to seek treatment.
  • They’ll replace word processors, spreadsheets, and other productivity apps.
  • Education
  • For example, few families can pay for a tutor who works one-on-one with a student to supplement their classroom work. If agents can capture what makes a tutor effective, they’ll unlock this supplemental instruction for everyone who wants it. If a tutoring agent knows that a kid likes Minecraft and Taylor Swift, it will use Minecraft to teach them about calculating the volume and area of shapes, and Taylor’s lyrics to teach them about storytelling and rhyme schemes. The experience will be far richer—with graphics and sound, for example—and more personalized than today’s text-based tutors.
  • your agent will be able to help you in the same way that personal assistants support executives today. If your friend just had surgery, your agent will offer to send flowers and be able to order them for you. If you tell it you’d like to catch up with your old college roommate, it will work with their agent to find a time to get together, and just before you arrive, it will remind you that their oldest child just started college at the local university.
  • To see the dramatic change that agents will bring, let’s compare them to the AI tools available today. Most of these are bots. They’re limited to one app and generally only step in when you write a particular word or ask for help. Because they don’t remember how you use them from one time to the next, they don’t get better or learn any of your preferences.
  • Agents will affect how we use software as well as how it’s written. They’ll replace search sites because they’ll be better at finding information and summarizing it for you
  • Businesses that are separate today—search advertising, social networking with advertising, shopping, productivity software—will become one business.
  • other issues won’t be decided by companies and governments. For example, agents could affect how we interact with friends and family. Today, you can show someone that you care about them by remembering details about their life—say, their birthday. But when they know your agent likely reminded you about it and took care of sending flowers, will it be as meaningful for them?
  • In the computing industry, we talk about platforms—the technologies that apps and services are built on. Android, iOS, and Windows are all platforms. Agents will be the next platform.
  • A shock wave in the tech industry
  • Agents won’t simply make recommendations; they’ll help you act on them. If you want to buy a camera, you’ll have your agent read all the reviews for you, summarize them, make a recommendation, and place an order for it once you’ve made a decision.
  • The current state of the art is Khanmigo, a text-based bot created by Khan Academy. It can tutor students in math, science, and the humanities—for example, it can explain the quadratic formula and create math problems to practice on. It can also help teachers do things like write lesson plans.
  • they’ll be dramatically better. You’ll be able to have nuanced conversations with them. They will be much more personalized, and they won’t be limited to relatively simple tasks like writing a letter.
  • Companies will be able to make agents available for their employees to consult directly and be part of every meeting so they can answer questions.
  • AI agents that are well trained in mental health will make therapy much more affordable and easier to get. Wysa and Youper are two of the early chatbots here. But agents will go much deeper. If you choose to share enough information with a mental health agent, it will understand your life history and your relationships. It’ll be available when you need it, and it will never get impatient. It could even, with your permission, monitor your physical responses to therapy through your smart watch—like if your heart starts to race when you’re talking about a problem with your boss—and suggest when you should see a human therapist.
  • If the number of companies that have started working on AI just this year is any indication, there will be an exceptional amount of competition, which will make agents very inexpensive.
  • Agents are smarter. They’re proactive—capable of making suggestions before you ask for them. They accomplish tasks across applications. They improve over time because they remember your activities and recognize intent and patterns in your behavior. Based on this information, they offer to provide what they think you need, although you will always make the final decisions.
  • Agents are not only going to change how everyone interacts with computers. They’re also going to upend the software industry, bringing about the biggest revolution in computing since we went from typing commands to tapping on icons.
  • In the distant future, agents may even force humans to face profound questions about purpose. Imagine that agents become so good that everyone can have a high quality of life without working nearly as much. In a future like that, what would people do with their time? Would anyone still want to get an education when an agent has all the answers? Can you have a safe and thriving society when most people have a lot of free time on their hands?
  • The ramifications for the software business and for society will be profound.
  • In the next five years, this will change completely. You won’t have to use different apps for different tasks. You’ll simply tell your device, in everyday language, what you want to do. And depending on how much information you choose to share with it, the software will be able to respond personally because it will have a rich understanding of your life. In the near future, anyone who’s online will be able to have a personal assistant powered by artificial intelligence that’s far beyond today’s technology.
  • You’ll also be able to get news and entertainment that’s been tailored to your interests. CurioAI, which creates a custom podcast on any subject you ask about, is a glimpse of what’s coming.
  • An agent will be able to help you with all your activities if you want it to. With permission to follow your online interactions and real-world locations, it will develop a powerful understanding of the people, places, and activities you engage in. It will get your personal and work relationships, hobbies, preferences, and schedule. You’ll choose how and when it steps in to help with something or ask you to make a decision.
  • even the best sites have an incomplete understanding of your work, personal life, interests, and relationships and a limited ability to use this information to do things for you. That’s the kind of thing that is only possible today with another human being, like a close friend or personal assistant.
  • The most exciting impact of AI agents is the way they will democratize services that today are too expensive for most people
  • They’ll have an especially big influence in four areas: health care, education, productivity, and entertainment and shopping.
Javier E

Is Anything Still True? On the Internet, No One Knows Anymore - WSJ - 0 views

  • Creating and disseminating convincing propaganda used to require the resources of a state. Now all it takes is a smartphone.
  • Generative artificial intelligence is now capable of creating fake pictures, clones of our voices, and even videos depicting and distorting world events. The result: From our personal circles to the political circuses, everyone must now question whether what they see and hear is true.
  • exposure to AI-generated fakes can make us question the authenticity of everything we see. Real images and real recordings can be dismissed as fake. 
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  • “When you show people deepfakes and generative AI, a lot of times they come out of the experiment saying, ‘I just don’t trust anything anymore,’” says David Rand, a professor at MIT Sloan who studies the creation, spread and impact of misinformation.
  • The signs that an image is AI-generated are easy to miss for a user simply scrolling past, who has an instant to decide whether to like or boost a post on social media. And as generative AI continues to improve, it’s likely that such signs will be harder to spot in the future.
  • The combination of easily-generated fake content and the suspicion that anything might be fake allows people to choose what they want to believe, adds DiResta, leading to what she calls “bespoke realities.”
  • Examples of misleading content created by generative AI are not hard to come by, especially on social media
  • This problem, which has grown more acute in the age of generative AI, is known as the “liar’s dividend,
  • People’s attention is already limited, and the way social media works—encouraging us to gorge on content, while quickly deciding whether or not to share it—leaves us precious little capacity to determine whether or not something is true
  • “What our work suggests is that most regular people do not want to share false things—the problem is they are not paying attention,”
  • are now using its existence as a pretext to dismiss accurate information
  • The rapid adoption of many different AI tools means that we are now forced to question everything that we are exposed to in any medium, from our immediate communities to the geopolitical, said Hany Farid, a professor at the University of California, Berkeley who
  • If the crisis of authenticity were limited to social media, we might be able to take solace in communication with those closest to us. But even those interactions are now potentially rife with AI-generated fakes.
  • what sounds like a call from a grandchild requesting bail money may be scammers who have scraped recordings of the grandchild’s voice from social media to dupe a grandparent into sending money.
  • companies like Alphabet, the parent company of Google, are trying to spin the altering of personal images as a good thing. 
  • With its latest Pixel phone, the company unveiled a suite of new and upgraded tools that can automatically replace a person’s face in one image with their face from another, or quickly remove someone from a photo entirely.
  • Joseph Stalin, who was fond of erasing people he didn’t like from official photos, would have loved this technology.
  • In Google’s defense, it is adding a record of whether an image was altered to data attached to it. But such metadata is only accessible in the original photo and some copies, and is easy enough to strip out.
  • in the course of a lawsuit over the death of a man using Tesla’s “full self-driving” system, Elon Musk’s lawyers responded to video evidence of Musk making claims about this software by suggesting that the proliferation of “deepfakes” of Musk was grounds to dismiss such evidence. They advanced that argument even though the clip of Musk was verifiably real
  • To put our current moment in historical context, he notes that the PC revolution made it easy to store and replicate information, the internet made it easy to publish it, the mobile revolution made it easier than ever to access and spread, and the rise of AI has made creating misinformation a cinch. And each revolution arrived faster than the one before it.
  • Not everyone agrees that arming the public with easy access to AI will exacerbate our current difficulties with misinformation. The primary argument of such experts is that there is already vastly more misinformation on the internet than a person can consume, so throwing more into the mix won’t make things worse.
  • it’s not exactly reassuring, especially given that trust in institutions is already at one of the lowest points in the past 70 years, according to the nonpartisan Pew Research Center, and polarization—a measure of how much we distrust one another—is at a high point.
  • “What happens when we have eroded trust in media, government, and experts?” says Farid. “If you don’t trust me and I don’t trust you, how do we respond to pandemics, or climate change, or have fair and open elections? This is how authoritarianism arises—when you erode trust in institutions.”
Javier E

What Elon Musk's 'Age of Abundance' Means for the Future of Capitalism - WSJ - 0 views

  • When it comes to the future, Elon Musk’s best-case scenario for humanity sounds a lot like Sci-Fi Socialism.
  • “We will be in an age of abundance,” Musk said this month.
  • Sunak said he believes the act of work gives meaning, and had some concerns about Musk’s prediction. “I think work is a good thing, it gives people purpose in their lives,” Sunak told Musk. “And if you then remove a large chunk of that, what does that mean?”
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  • Part of the enthusiasm behind the sky-high valuation of Tesla, where he is chief executive, comes from his predictions for the auto company’s abilities to develop humanoid robots—dubbed Optimus—that can be deployed for everything from personal assistants to factory workers. He’s also founded an AI startup, dubbed xAI, that he said aims to develop its own superhuman intelligence, even as some are skeptical of that possibility. 
  • Musk likes to point to another work of Sci-Fi to describe how AI could change our world: a series of books by the late-, self-described-socialist author Iain Banks that revolve around a post-scarcity society that includes superintelligent AI. 
  • That is the question.
  • “We’re actually going to have—and already do have—a massive shortage of labor. So, I think we will have not people out of work but actually still a shortage of labor—even in the future.” 
  • Musk has cast his work to develop humanoid robots as an attempt to solve labor issues, saying there aren’t enough workers and cautioning that low birthrates will be even more problematic. 
  • Instead, Musk predicts robots will be taking jobs that are uncomfortable, dangerous or tedious. 
  • A few years ago, Musk declared himself a socialist of sorts. “Just not the kind that shifts resources from most productive to least productive, pretending to do good, while actually causing harm,” he tweeted. “True socialism seeks greatest good for all.”
  • “It’s fun to cook food but it’s not that fun to wash the dishes,” Musk said this month. “The computer is perfectly happy to wash the dishes.”
  • In the near term, Goldman Sachs in April estimated generative AI could boost the global gross domestic product by 7% during the next decade and that roughly two-thirds of U.S. occupations could be partially automated by AI. 
  • Vinod Khosla, a prominent venture capitalist whose firm has invested in the technology, predicted within a decade AI will be able to do “80% of 80%” of all jobs today.
  • “I believe the need to work in society will disappear in 25 years for those countries that adapt these technologies,” Khosla said. “I do think there’s room for universal basic income assuring a minimum standard and people will be able to work on the things they want to work on.” 
  • Forget universal basic income. In Musk’s world, he foresees something more lush, where most things will be abundant except unique pieces of art and real estate. 
  • “We won’t have universal basic income, we’ll have universal high income,” Musk said this month. “In some sense, it’ll be somewhat of a leveler or an equalizer because, really, I think everyone will have access to this magic genie.” 
  • All of which kind of sounds a lot like socialism—except it’s unclear who controls the resources in this Muskism society
  • “Digital super intelligence combined with robotics will essentially make goods and services close to free in the long term,” Musk said
  • “What is an economy? An economy is GDP per capita times capita.” Musk said at a tech conference in France this year. “Now what happens if you don’t actually have a limit on capita—if you have an unlimited number of…people or robots? It’s not clear what meaning an economy has at that point because you have an unlimited economy effectively.”
  • In theory, humanity would be freed up for other pursuits. But what? Baby making. Bespoke cooking. Competitive human-ing. 
  • “Obviously a machine can go faster than any human but we still have humans race against each other,” Musk said. “We still enjoy competing against other humans to, at least, see who was the best human.”
  • Still, even as Musk talks about this future, he seems to be grappling with what it might actually mean in practice and how it is at odds with his own life. 
  • “If I think about it too hard, it, frankly, can be dispiriting and demotivating, because…I put a lot of blood, sweat and tears into building companies,” he said earlier this year. “If I’m sacrificing time with friends and family that I would prefer but then ultimately the AI can do all these things, does that make sense?”“To some extent,” Musk concluded, “I have to have a deliberate suspension of disbelief in order to remain motivated.”
Javier E

As Xi Heads to San Francisco, Chinese Propaganda Embraces America - The New York Times - 0 views

  • Now, the tone used to discuss the United States has suddenly shifted
  • Xinhua, the state news agency, on Monday published a lengthy article in English about the “enduring strength” of Mr. Xi’s affection for ordinary American
  • “More delightful moments unfolded when Xi showed up to watch an N.B.A. game,” the article continued, describing a visit by Mr. Xi to the United States in 2012. “He remained remarkably focused on the game.”
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  • Separately, Xinhua has published a five-part series in Chinese on “Getting China-U.S. Relations Back on Track.
  • Beijing, in particular, may be motivated to play up the meeting to reassure investors and foreign businesses
  • “Propaganda of this type is not meant for persuasion — it is not persuasive at all,” Professor Chen said. “It is mainly designed for signaling, in the hope that recipients will get the signal and implement the proper response, which is investment, or resumption of exchanges.”
  • many Chinese social media users have taken note of the abrupt turn — and have been left reeling, or at least wryly amused
  • Under another post showing true, recent state media editorials promoting U.S.-China relations, a commenter wrote: “So, going forward, do we or don’t we need to hate America? So unclear.”
  • On Guancha.cn, a nationalistic news and commentary site, columnists have noted that both countries are making short-term concessions for their own long-term strategic gain.
  • Even the most flowery Chinese articles have drawn distinctions between warm ties between American and Chinese people, and their governments; some state media outlets have continued to warn that the outcome of the California meeting will hinge on the United States, in line with Beijing’s stance that the strained relationship is entirely Washington’s fault.
  • On the future of U.S.-China relations, Professor Wang wrote, “I am only cautious, not optimistic.”
Javier E

Where we build homes helps explain America's political divide - The Washington Post - 0 views

  • Zoning, NIMBYism and regulations — “all those things matter” when you’re trying to build housing, Herbert said. But land scarcity is the most important.
  • So what’s happening now “is a lot more infill of single-family housing in closer-in communities, where you’re not going to have room for large-scale developments and where the land is going to be worth a lot more,” Herbert said. Single-family land scarcity, he said, “has been a big factor keeping the supply down.”
  • In a blockbuster 2010 paper, Albert Saiz, an economist at the Massachusetts Institute of Technology, analyzed satellite data to estimate how much land was actually available for development within a 50-kilometer (31-mile) radius of each major U.S. city. He found that available land, when combined with measures of land-use regulation, could go “very far to explain the evolution of prices” from 1970 to 2000.
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  • Saiz even took it a step further, showing that a lack of land can cause stricter regulation. If a place has less room to build — due to mountains, wetlands or oceans, for example — each square foot of dirt costs more. Homeowners also may push local officials to regulate the land more aggressively in an effort to protect their investment and safeguard a scarce resource.
  • From 2013 to 2018, zoning and related restrictions added about $410,000 to the cost of a quarter-acre lot in the San Francisco metro area, $199,000 in Los Angeles, $175,000 in Seattle and $152,000 in greater New York
  • The comparable figure for Phoenix sat at $22,000. Atlanta was $15,000. Dallas was a mere $2,000. Not coincidentally, perhaps, many such Sun Belt metros have produced floods of new housing.
  • But why do blue cities tend to have less land available for development? Perhaps it works the other way: Perhaps land-restricted places tend to evolve into Democratic strongholds.
  • We don’t have data for this, but logically higher home prices and regulation in land-light cities should make much of their housing accessible only to educated, well-compensated professionals, right? In this simple mental model, coastal cities have less room and thus, by definition, attract the elite. And in American politics right now, Democrats dominate the professional classes.
  • We’ve long heard Democrats derided as the “coastal elite,” but we never stopped to wonder why all those blue counties hugged the coasts in the first place. Exceptions are easy to find, but the subtle effects of coastal land shortages, over time, could help explain that most prominent feature of America’s political geography.
  • That effect could be compounded, Saiz told us, by the simple truth that coastlines, lakes and other natural obstacles to construction make cities more beautiful, and thus more desirable to those who can afford such amenities, as his research with Gerald Carlino of the Federal Reserve Bank of Philadelphia shows. And the presence of an educated workforce will cause the city’s economy to grow faster, further expanding economic divides.
  • “High-amenity areas are more desirable and tend to attract the highly skilled,” Saiz said. “These metros tend to have harder land constraints to start with, which begets more expensive housing prices which, in turn, activate more NIMBY activism to protect that wealth.”
Javier E

Will the Profit Motive Fail Us on AI Safety? - WSJ - 0 views

  • The mission of a for-profit company is, well, profit, the greatest return for investors. That’s the profound ethical crisis at the heart of artificial general intelligence development (“Capitalism Works, Says ChatGPT” by Holman Jenkins, Jr., Business World, Nov. 22).
  • it can sound naive to say that AI “won’t soon replace the human knack for synthesizing the most valuable insight from a welter of facts.” This seems to be exactly the goal of many transhumanists and the global elite. The speed at which this technology is developing means that it could be a dream or a nightmare in five years. If the controlling factor is mere profit, look for the nightmare.
Javier E

Opinion | Biden Trade Policy Breaks With Tech Giants - The New York Times - 0 views

  • One reason that the idea of free trade has fallen out of fashion in recent years is the perception that trade agreements reflect the wishes of big American corporations, at everybody else’s expense.
  • U.S. officials fought for trade agreements that protect intellectual property — and drug companies got the chance to extend the life of patents, raising the price of medicine around the world. U.S. officials fought for investor protections — and mining companies got the right to sue for billions in “lost profit” if a country moved to protect its drinking water or the Amazon ecosystem. And for years, U.S. officials have fought for digital trade rules that allow data to move freely across national borders — prompting fears that the world’s most powerful tech companies would use those rules to stay ahead of competitors and shield themselves from regulations aimed at protecting consumers and privacy.
  • That’s why the Biden administration, which came into office promising to fight for trade agreements that better reflect the interests of ordinary people, has dropped its advocacy for tech-friendly digital trade rules that American officials have championed for more than a decade.
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  • Last month, President Biden’s trade representative, Katherine Tai, notified the World Trade Organization that the American government no longer supported a proposal it once spearheaded that would have exported the American laissez-faire approach to tech. Had that proposal been adopted, it would have spared tech companies the headache of having to deal with many different domestic laws about how data must be handled, including rules mandating that it be stored or analyzed locally. It also would have largely shielded tech companies from regulations aimed at protecting citizens’ privacy and curbing monopolistic behavior.
  • The move to drop support for that digital trade agenda has been pilloried as disaster for American companies and a boon to China, which has a host of complicated restrictions on transferring data outside of China. “We have warned for years that either the United States would write the rules for digital trade or China would,” Senator Mike Crapo, a Republican from Idaho, lamented in a press statement. “Now, the Biden administration has decided to give China the pen.”
  • While some of this agenda is reasonable and good for the world — too much regulation stifles innovation — adopting this agenda wholesale would risk cementing the advantages that big American tech companies already enjoy and permanently distorting the market in their favor.
  • who used to answer the phone and interact with lobbyists at the U.S. trade representative’s office. The paper includes redacted emails between Trump-era trade negotiators and lobbyists for Facebook, Google, Microsoft and Amazon, exchanging suggestions for the proposed text for the policy on digital trade in the United States-Mexico-Canada Agreement. “While they were previously ‘allergic to Washington,’ as one trade negotiator described, over the course of a decade, technology companies hired lobbyists and joined trade associations with the goal of proactively influencing international trade policy,” Ms. Li wrote in the Socio-Economic Review.
  • That paper explains how U.S. trade officials came to champion a digital trade policy agenda that was nearly identical to what Google, Apple and Meta wanted: No restrictions on the flow of data across borders. No forced disclosure of source codes or algorithms in the normal course of business. No laws that would curb monopolies or encourage more competition — a position that is often cloaked in clauses prohibiting discrimination against American companies. (Since so many of the monopolistic big tech players are American, rules targeting such behavior disproportionately fall on American companies, and can be portrayed as unfair barriers to trade.)
  • The truth is that Ms. Tai is taking the pen away from Meta, Google and Amazon, which helped shape the previous policy, according to a research paper published this year by Wendy Li,
  • This approach essentially takes the power to regulate data out of the hands of governments and gives it to technology companies, according to research by Henry Gao, a Singapore-based expert on international trade.
  • Many smaller tech companies complain that big players engage in monopolistic behavior that should be regulated. For instance, Google has been accused of privileging its own products in search results, while Apple has been accused of charging some developers exorbitant fees to be listed in its App Store. A group of smaller tech companies called the Coalition for App Fairness thanked Ms. Tai for dropping support for the so-called tech-friendly agenda at the World Trade Organization.
  • Still, Ms. Tai’s reversal stunned American allies and foreign business leaders and upended negotiations over digital trade rules in the Indo-Pacific Economic Framework, one of Mr. Biden’s signature initiatives in Asia.
  • The about-face was certainly abrupt: Japan, Singapore and Australia — which supported the previous U.S. position — were left on their own. It’s unfortunate that U.S. allies and even some American officials were taken by surprise. But changing stances was the right call.
  • The previous American position at the World Trade Organization was a minority position. Only 34 percent of countries in the world have open data transfer policies like the United States, according to a 2021 World Bank working paper, while 57 percent have adopted policies like the European Union’s, which allow data to flow freely but leave room for laws that protect privacy and personal data.
  • Nine percent of countries have restrictive data transfer policies, including Russia and China.
  • The United States now has an opportunity to hammer out a sensible global consensus that gives tech companies what they need — clarity, more universal rules, and relative freedom to move data across borders — without shielding them from the kinds of regulations that might be required to protect society and competition in the future.
  • If the Biden administration can shepherd a digital agreement that strikes the right balance, there’s a chance that it will also restore faith in free trade by showing that trade agreements don’t have to be written by the powerful at the expense of the weak.
Javier E

Opinion | The Complicated Truth About Recycling - The New York Times - 0 views

  • Recycling has been called a myth and beyond fixing as we’ve learned that recyclables are being shipped overseas and dumped (true), are leaching toxic chemicals and microplastics (true) and are being used by Big Oil to mislead consumers about the problems with plastics.
  • Recycling is real. I’ve seen it. For the past four years, I’ve traveled the world writing a book about the waste industry, visiting paper mills and e-waste shredders and bottle plants. I’ve visited all kinds of plastics recycling facilities, from gleaming new factories in Britain to smoky, flake-filled shredding operations in India
  • While I’ve seen how recycling has become inseparable from corporate greenwashing, we shouldn’t be so quick to cast it aside. In the short term, at least, it might be the best option we have against our growing waste crisis.
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  • One of the most fundamental problems with recycling is that we don’t really know how much of it actually happens because of an opaque global system that too often relies on measuring the material that arrives at the front door of the facility rather than what comes out
  • What we do know is that with plastics, at least, the amount being recycled is much less than most of us assumed.
  • According to the Environmental Protection Agency, two of the most commonly used plastics in America — PET (used in soda bottles) and HDPE (used in milk jugs, among other things) — are “widely recycled,” but the rate is really only about 30 percent
  • Other plastics, like soft wraps and films, sometimes called No. 4 plastics, are not widely accepted in curbside collections.
  • The E.P.A. estimates that just 2.7 percent of polypropylene — the hard plastic known as No. 5, used to make furniture and cleaning bottles — was reprocessed in 2018
  • Crunch the sums, and only around 10 percent of plastics in the United States is recycle
  • the landfill-happy United States is far worse at recycling than other major economies. According to the E.P.A., America’s national recycling rate, just 32 percent, is lower than Britain’s 44 percent, Germany’s 48 percent and South Korea’s 58 percent.
  • the scientific research over decades has repeatedly found that in almost all cases, recycling our waste materials has significant environmental benefits
  • We need clearer labeling of what is and is not actually recyclable and transparency around true recycling rates
  • Recycling steel, for example, saves 72 percent of the energy of producing new steel; it also cuts water use by 40 percent
  • Recycling a ton of aluminum requires only about 5 percent of the energy and saves almost nine tons of bauxite from being hauled from mines
  • Even anti-plastics campaigners agree that recycling plastics, like PET, is better for the climate than burning them — a likely outcome if recycling efforts were to be abandoned.
  • The economic perks are significant, too. Recycling creates as many as 50 jobs for every one created by sending waste to landfills; the E.P.A. estimates that recycling and reuse accounted for 681,000 jobs in the United States alone.
  • That’s even more true in the developing world, where waste pickers rely on recycling for income.
  • before we abandon recycling, we should first try to fix it
  • Companies should be phasing out products that can’t be recycled and designing more products that are easier to recycle and reuse rather than leaving sustainability to their marketing departments.
  • Lawmakers can help by passing new laws, as cities like Seattle and San Francisco have done, to help increase recycling rates and drive investment into the sector.
  • Governments can also ban or restrict many problematic plastics to reduce the amount of needless plastics in our everyday lives, for instance in food packaging
  • According to a 2015 analysis by scientists at the University of Southampton in England, recycling a majority of commonly tossed-out waste materials resulted in a net reduction in greenhouse gas emissions
  • Greater safety regulations are needed to reduce toxic chemical contents and microplastic pollution caused by the recycling process.
  • consumers can do their bit by buying recycled products (and buying less and reusing more).
  • Yes, recycling is broken, but abandon it too soon, and we risk going back to the system of decades past, in which we dumped and burned our garbage without care, in our relentless quest for more. Do that, and like the recycling symbol itself, we really will be going in circles.
Javier E

Why are younger voters flocking to the far right in parts of Europe? | The far right | The Guardian - 0 views

  • Several factors may explain the phenomenon, analysts say. “We really should be careful about assuming a cultural or ideological alignment between young voters and the far right,”
  • “We know in many countries young people are more pro-immigration than older voters. They have not become xenophobic. But their lives are more precarious. These are often votes for what in this Dutch election was called ‘livelihood security’.”
  • The Dutch word bestaanszekerheid translates roughly as an existence with a sufficient and predictable income, a satisfactory home, adequate access to education and healthcare, and a cushion against unexpected eventualities.
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  • In the Netherlands, the PVV surged to become the largest party among 18- to 34-year-olds, winning 17% of their vote against 7% previously. In Sweden’s 2022 ballot, 22% of the 18-21 cohort voted for the far-right Sweden Democrats, against 12% in 2018.
  • “I am not a racist because I voted for Wilders. It frustrates me that migrants receive more help from the government than Dutch people – but I’m not against Islam; I don’t want mosques closed. I just think we need to control immigration better.”
  • Koen, 19, a student in Amsterdam, echoed that view. “I still live with my parents – I can’t afford a room in Amsterdam,” he said. “I have to commute every day. Wilders wants to give housing to people who are from here – I don’t think that’s strange.”
  • Far-right parties are not the preferred option – or even second choice – for younger voters everywhere in Europe, analysts caution. The trend appears strongest in countries such as Austria, Germany, the Netherlands, Sweden and Denmark
  • In Spain, the ultra-conservative Vox party’s share of the under-35 vote soared from 22% in April 2019 to a record 34% that November, echoing its rollercoaster performance with the electorate as a whole. It fell back in July this year but still stands at 27%.
  • Issues such as housing, overcrowded classes and struggling hospitals were key to the youth vote, De Vries said. “Wilders may want ‘Dutch people first’ but he promises to fix these things,” she said. “The government parties imposed austerity.”
  • Zerka also identified economic insecurity as the most significant factor. “Young voters haven’t moved rightwards on migration, abortion, minority rights,” he said. “Far-right parties have convinced them that they offer a credible economic alternative.”
  • Other factors include some far-right parties “managing to position themselves as a ‘cool’ electoral option”, Zerka said. “They are increasingly offering younger voters equally young, often charismatic politicians – people who speak their language.”
  • Zerka also cites far-right parties’ social media skills: Spain’s Vox has a particularly slick operation, and Sławomir Mentzen, the 37-year-old leader of Poland’s ultra-liberal far-right Konfederacja (Confederation) party, has 800,000 followers on TikTok.
  • Jacob Davey, the head of policy and research at the Institute for Strategic Dialogue thinktank, identified the influence of a far- and ultra-right youth counterculture, typified by the far-right pan-European Generation Identity group, as an additional factor.
  • Even if “economic grievances, insecurities around housing, jobs, futures” may account for much of the youth vote, he said, “we’re seeing the growth to fruition of a concerted far- and extreme-right effort to reach and radicalise young people”.
  • finally, said De Vries, there was “simply, normalisation. For many of these young voters, far-right parties have been part of the political landscape their whole lives. They’ve grown up with them. There’s not the stigmatisation there once was.”
  • “My mother’s a nurse, and healthcare is not coping. Wilders campaigned on investing in healthcare and old people’s homes. When it comes to migration, people from a war country deserve a better life here but it shouldn’t be at the expense of Dutch people.”
Javier E

Opinion | How Germany Became Mean - The New York Times - 0 views

  • Germany occupies a special place in the international imagination. After the horrors of the Holocaust and the difficulties of reunification, the country acquired a reputation as a leader of the free world. Economically prosperous, politically stable and more welcoming to immigrants than most other countries, the Germans — many thought — had really learned their lesson.
  • The past few months have been a bit of a rude awakening. The economy is stuttering and a constitutional court ruling has upended the government’s spending plans
  • The far-right Alternative for Germany party, fresh from success in two regional elections, is cementing itself as the country’s second-most-popular party.
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  • Migrants are in politicians’ cross hairs, threatened with deportation and reduced support.
  • And the country’s commitment to fighting antisemitism seems not only to be failing but also to have given rise to an outpouring of anti-Muslim sentiment.
  • The truth is that Germany never fully deserved its vaunted reputation. The export-led economy depended on a large low-wage sector and the country’s position in the European Union.
  • The far right — ensconced in parts of the state — never went away, and the celebrated Willkommenskultur, short lived in any case, couldn’t conceal enduring xenophobia and suspicion about foreigners.
  • The culture of remembrance and historical reckoning, too, was far from perfect
  • Even so, the sudden coarsening of public life in the service of a warped sense of national identity is striking. Germany, supposed model of fair-minded moderation, has become mean.
  • the government’s habit of conflating criticism of Israel with antisemitism has had some disturbing effects. Most notably, it has created an atmosphere where advocacy for Palestinian rights or a cease-fire in Gaza is seen as suspect, running afoul of the state-mandated position
  • The police, for example, have cracked down on pro-Palestinian protests in several cities and outright banned numerous demonstrations.
  • politicians, seizing on some evidence of antisemitic displays at pro-Palestinian protests to link Muslims and migrants with antisemitism, have taken the opportunity to advance an anti-migrant agenda
  • When Mr. Scholz was asked about antisemitism among people “with Arab roots” in an October interview, he said Germany needed to sort out more precisely who is allowed to come into the country and who is not. “We are limiting irregular migration,” Mr. Scholz pronounced, before adding a little later, “We must finally deport on a large scale.”
  • More spending cuts are expected. In an economy on the cusp of recession — Germany is the only country among Group of 7 nations not expected to register growth in 2023 — this is bad news for Germans, who, according to a recent study, are predominantly worried about living expenses, increasing rents, tax hikes and cuts to benefits.
  • Christian Lindner, the finance minister and head of the center-right Free Democratic Party, called for a fundamental change in immigration policy to “reduce the appeal of the German welfare state.”
  • In early November, after months of intense discussions, the federal government and the 16 state governors agreed on stricter measures to curb the number of migrants entering the country. Asylum seekers now receive less cash and have to wait twice as long to get on welfare, taking even more autonomy away from their lives. According to the new plan, Germany will also extend its border checks, speed up asylum procedures and look into the idea of offshoring asylum centers.
  • Worryingly, antisemitic incidents have been on the rise in recent weeks
  • it is troubling that Germany, of all places, should frame antisemitism as an imported problem. Crime statistics show that a vast majority of antisemitic crimes are committed by right-wing extremists and not by Islamists, let alone migrants or Muslims.
  • Germany’s leaders, aided by major media figures, are using the fight against antisemitism as a pretext to encourage racist resentment and anti-migrant sentiment.
  • Alternative for Germany, which has pulled the political center of gravity to the right since its formation in 2013, has never been stronger. Polling at over 20 percent, the party and its concerns, once fringe, are firmly mainstream. Questions of national identity and immigration dominate political discussion, in keeping with a broader rise of nativism across Europe.
  • The country’s anti-migrant turn is often justified in terms of economic concerns.
  • Opponents of immigration point to the underfunding of schools and hospitals, the lack of affordable housing, the miserable public transport and the general decline of the domestic economy.
  • German infrastructure is indeed in crisis. But this has little to do with immigration and everything to do with austerity policies that have been in place for the past two decades.
  • Central to those policies is the so-called debt brake. Enshrined in the German Constitution in 2009, it restricts the annual public deficit to 0.35 percent of gross domestic product, ensuring strict limits on spending.
  • The effects have been immediate: Mr. Lindner announced an early end to a price cap on energy bills, making it likely that German citizens will have to pay more for their heating in the coming year.
  • everal other high-ranking politicians have also pushed the need for stricter border controls in the aftermath of Oct. 7. Friedrich Merz, leader of the opposition Christian Democrats, spoke out against taking in refugees from Gaza, claiming that Germany already has “enough antisemitic young men in the country.”
  • It’s bad news for the government, too. The coalition, composed of the Social Democrats, Greens and Free Democrats, came to office in 2021 with a mandate to modernize the country and lead it in a progressive direction
  • Instead, with programs of fiscal restriction and stances of social reaction, Germany’s leaders are only serving the far-right party they claim to want to keep at bay.
Javier E

Opinion | The Reactionary Futurism of Marc Andreessen - The New York Times - 0 views

  • “I consider Mark and Elon to be role models to children in their embrace of fighting,” Andreessen writes.
  • Modern American society, at least in the big cities, is turning on law enforcement and tolerating crime, so you need combat skills to protect your loved ones. We are also fat and depressed, and learning to fight might help on both counts. In conclusion, “if it was good enough for Heracles and Theseus, it’s good enough for us.”
  • what caught my eye was the veneration of the virile aggression of the Greeks, the call to rediscover the ways of the ancients. A list of things that were good enough for the Greeks but not good enough for us would run long: Slavery, pederasty and bloodletting come to mind
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  • This is what connects figures as disparate as Jordan Peterson and J.D. Vance and Peter Thiel and Donald Trump. These are the ideas that unite both the mainstream and the weirder figures of the so-called postliberal right, from Patrick Deneen to the writer Bronze Age Pervert.
  • I think the Republican Party’s collapse into incoherence reflects the fact that much of the modern right is reactionary, not conservative
  • As Paul Valéry, the French poet, once said, “Ancient Greece is the most beautiful invention of the modern age.” To treat Andreessen’s essay as an argument misses the point. It’s a vibe. And the vibe is reactionary.
  • It’s a coalition obsessed with where we went wrong: the weakness, the political correctness, the liberalism, the trigger warnings, the smug elites. It’s a coalition that believes we were once hard and have become soft; worse, we have come to lionize softness and punish hardness.
  • The story of the reactionary follows a template across time and place. It “begins with a happy, well-ordered state where people who know their place live in harmony and submit to tradition and their God,” Mark Lilla writes in his 2016 book, “The Shipwrecked Mind: On Political Reaction.”
  • He continues:Then alien ideas promoted by intellectuals — writers, journalists, professors — challenge this harmony, and the will to maintain order weakens at the top. (The betrayal of elites is the linchpin of every reactionary story.) A false consciousness soon descends on the society as a whole as it willingly, even joyfully, heads for destruction. Only those who have preserved memories of the old ways see what is happening. Whether the society reverses direction or rushes to its doom depends entirely on their resistance.
  • The Silicon Valley cohort Andreessen belongs to has added a bit to this formula. In their story, the old way that is being lost is the appetite for risk and inequality and dominance that drives technology forward and betters human life. What the muscled ancients knew and what today’s flabby whingers have forgotten is that man must cultivate the strength and will to master nature, and other men, for the technological frontier to give way
  • Now Andreessen has distilled the whole ideology to a procession of stark bullet points in his latest missive, the buzzy, bizarre “Techno-Optimist Manifesto.”
  • it’s the pairing of the reactionary’s sodden take on modern society with the futurist’s starry imagining of the bright tomorrow. So call it what it is: reactionary futurism
  • Andreessen’s argument is simple: Technology is good. Very good. Those who stand in its way are bad.
  • “The Enemy.” The list is long, ranging from “anti-greatness” to “statism” to “corruption” to “the ivory tower” to “cartels” to “bureaucracy” to “socialism” to “abstract theories” to anyone “disconnected from the real world … playing God with everyone else’s lives”
  • So who is it, exactly, who extinguishes the dancing star within the human soul?
  • Our present society has been subjected to a mass demoralization campaign for six decades — against technology and against life — under varying names like “existential risk,” “sustainability,” “E.S.G.,” “sustainable development goals,” “social responsibility,” “stakeholder capitalism,” “precautionary principle,” “trust and safety,” “tech ethics,” “risk management,” “degrowth,” “the limits of growth.”
  • The enemy, in other words, is anything or anyone who might seek to yoke technology to social goals or structures
  • For years, I’ve been arguing for politics to take technology more seriously, to see new inventions as no less necessary than social insurance and tax policy in bringing about a worthier world. Too often, we debate only how to divvy up what we already have. We have lost the habit of imagining what we could have; we are too timid in deploying the coordinated genius and muscle of society
  • I’ve been digging into the history of where and when we lost faith in technology and, more broadly, growth. At the core of that story is an inability to manage, admit or even see when technologies or policies go awry
  • The turn toward a less-is-more politics came in the 1970s, when the consequences of reckless growth became unignorable
  • Did we, in some cases, overcorrect? Absolutely. But the only reason we can even debate whether we overcorrected is because we corrected: The Clean Air Act and the Clean Water Act and a slew of other bills and regulations did exactly what they promised.
  • It is telling that Andreessen groups sustainability and degrowth into the same bucket of antagonists
  • Degrowth is largely, though not wholly, skeptical of technological solutions to our problems
  • But the politics of sustainability — as evidenced in legislation like the Inflation Reduction Act — have settled into another place entirely: a commitment to solving our hardest environmental problems by driving technology forward, by investing and deploying clean energy infrastructure at a scale unlike anything the government has done since the 1950s.
  • Andreessen focuses at some length on the nuclear future he believes we’ve been denied —
  • but curiously ignores the stunning advances in solar and wind and battery power that public policy has delivered.
  • He yearns for a kind of person, not just a kind of technology. “We believe in ambition, aggression, persistence, relentlessness — strength,” he writes, italics included. “We believe in merit and achievement. We believe in bravery, in courage.”
  • There are ways in which these virtues have become undervalued, in which the left, in particular, has a dysfunctional relationship with individual achievement and entrepreneurial élan.
  • Andreessen’s ideas trace an odd, meme-based philosophy that has flourished in some corners of the internet known as effective accelerationism
  • “Effective accelerationism aims to follow the ‘will of the universe’: leaning into the thermodynamic bias towards futures with greater and smarter civilizations that are more effective at finding/extracting free energy from the universe,”
  • “E/acc has no particular allegiance to the biological substrate for intelligence and life, in contrast to transhumanism.” OK!
  • Take Andreessen’s naming of trust and safety teams as among his enemies.
  • That, in a way, is my core disagreement with Andreessen. Reactionary futurism is accelerationist in affect but deccelerationist in practice
  • How has that worked out? A new analysis by Similarweb found that traffic to twitter.com fell in the United States by 19 percent from September 2022 to September 2023 and traffic on mobile devices fell by almost 18 percent. Indications are that advertising revenue on the platform is collapsing.
  • Andreessen spends much of his manifesto venerating the version of markets that you hear in the first few weeks of Econ 101, before the professor begins complicating the picture with all those annoying market failures
  • Throughout his essay, Andreessen is at pains to attack those who might slow the development of artificial intelligence in the name of safety, but nothing would do more to freeze progress in A.I. than a disaster caused by its reckless deployment
  • It is hard to read Andreessen’s manifesto, with its chopped-up paragraphs and its blunt jabs of thought delivered for maximum engagement and polarization, and not feel that Andreessen now reflects the medium in which he has made his home: X. He doesn’t just write in the way the medium rewards. He increasingly seems to think in its house style, too.
  • One reason I left Twitter long ago is that I noticed that it was a kind of machine for destroying trust. It binds you to the like-minded but cuts you from those with whom you have even modest disagreements
  • There is a reason that Twitter’s rise was conducive to politics of revolution and reaction rather than of liberalism and conservatism. If you are there too often, seeing the side of humanity it serves up, it is easy to come to think that everything must be burned down.
  • Musk purchased Twitter (in an acquisition that Andreessen Horowitz helped finance) and gutted its trust and safety teams. The result has been a profusion of chaos, disinformation and division on his platform
  • Treating so much of society with such withering contempt will not speed up a better future. It will turn people against the politics and policies of growth, just as it did before. Trust is the most essential technology of all.
Javier E

Electric Cars Were Already Having Issues. Then Things Got Political. - WSJ - 0 views

  • , anti-“woke” backlash and high-profile politics are increasingly making the suggestion of owning an EV a political cudgel. Or, as Ford Motor Chief Executive Officer Jim Farley recently lamented: “They have become a political football.” 
  • President Biden’s support of the transition, through subsidizing manufacturing, extending tax credits for EVs and giving money for charging stations, has come under attack from Republican rivals seeking to challenge him for the White House next year. 
  • As the Democrat talks about trying to protect automotive jobs and help the environment with green technology, they raise concerns about losing work and question whether the governments should subsidize them or mandate future zero-emission vehicle sales, as California has done.  
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  • The tensions have risen as Ford and other global automakers have spent billions of dollars designing and building EVs, a move that looked especially smart a year ago when they were caught off guard by the strong demand for their new offerings. 
  • This past week, General Motors said it would delay opening a large EV truck factory in Michigan by a year, citing a need “to better manage capital investments while aligning with evolving EV demand.” The move followed an earlier announcement by Ford pushing back to late 2024 a target of building 600,000 EVs annually. The company has also temporarily cut one of the production shifts for its electric pickup and paused construction of a $3.5 billion battery plant in Michigan. 
  • In the U.S., for every five Democrats owning an EV there are two Republicans, said Alexander Edwards, president of Strategic Vision, which surveys new-vehicle buyers. 
  • His data finds that Democrats give priority to “environmentally friendly” when buying their cars while Republicans have other things they are looking for, such as performance and prestige.
  • On the campaign trail, however, EVs don’t always sound so cool. The GOP presidential hopeful Vivek Ramaswamy, who is against subsidies, has drawn laughs as he suggests that EV buyers are motivated by “a psychological insecurity,” while former Vice President Mike Pence said during the second Republican presidential primary debate that Biden’s efforts “are driving American gasoline, automotive manufacturing, into the graveyard.”  
  • “I don’t get why Ford and GM, why these carmakers, aren’t fighting…to make cars that are going to sell, to make cars that are going to be able to go on long distances,” Trump said at a rally during which he predicted the EV policies would lead to “hundreds of thousands of American jobs” being lost. 
  • “The real question is whether we’ll lead or we’ll fall behind in the race to the future; or whether we’ll build these vehicles and the batteries that go in them here in the United States or rely on other countries,” Biden said while visiting a Ford factory early in his administration. 
  • Underpinning the politics of EVs is an economic divide, made more stark by the rise of interest rates. Most EVs are more expensive than the average new vehicle—which sold for about $46,000 in September.
  • As new cars and trucks become more costly, the practical effect on buyers shows up in Strategic Vision’s survey: The median family household income of new-car buyers has risen to $122,000. That is a significant increase from around $90,000, where it had been at for a couple of decades until just recently. EV buyers are even better off, with a median household income of $186,000.
  • In some ways, the green car tensions are a return to the 2012 political season, when GM’s Chevrolet Volt became the embodiment of the Obama administration’s rescue of the Detroit auto industry in 2009 and efforts to promote electrified vehicles.
  • Former House Speaker Newt Gingrich, who unsuccessfully sought the Republican presidential nomination, said the problem with the “Obama car” was that one couldn’t put a gun rack in the plug-in hybrid vehicle.
  • Sales of the Volt disappointed, and Dan Akerson, then CEO of GM, was left fuming that the company hadn’t designed the sedan to become “a political punching bag.”
  • GM later killed off the Volt.
Javier E

Two Wall Street titans on why the world is at its most precarious since 1938 - 0 views

  • Israel’s war with Hamas and Russia’s full-scale invasion of Ukraine have made the world a more “scary and unpredictable” place than at any other time since the Second World War, Dimon contended. “Here in the US, we continue to have a strong economy,” he said. “We still have a lot of fiscal and monetary stimulus in the system. But these geopolitical matters are very serious — arguably the most serious since 1938.
  • What’s happening ... right now is the most important thing for the future of the world — freedom, democracy, food, energy, immigration. We diminish that importance when you say, ‘What’s it going to do to the market?’ Markets will be fine. Markets can deal with stuff. Markets go up and down. Markets fluctuate.”
  • That said, the conflict in the Middle East — in which at least 1,400 Israelis have been murdered and 9,000 Palestinians killed in Israeli attacks on Gaza since October 7 — has rattled a financial system already gulping at the prospect of inflation proving sticky and interest rates staying higher for longer. The region accounts for 48 per cent of global energy reserves and produced 33 per cent of the world’s oil last year. Previous crises, such as Saddam Hussein’s invasion of Kuwait in 1990 and the Arab oil embargo of 1973-74, resulted in big price shocks — although so far, at about $86 a barrel, oil has roughly returned to its pre-October 7 level, while gas prices have risen only slightly.
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  • So fear creates recessions in the long run — and if we continue to have rising fear, the probability of a European recession grows and the probability of a US recession grows. Geopolitics is playing a bigger role in everyone’s equations.”
  • Geopolitical risk is a major component in shaping all our lives. We are having rising fear throughout the world, and less hope. Rising fear creates a withdrawal from consumption or spending more.
  • “When the Russian invasion occurred in Ukraine, we said that the peace dividend is over,” Larry Fink, chief executive of investment giant BlackRock, told The Sunday Times. “Now, with the instability in the Middle East, we’re going to almost a whole new future.
  • Dimon noted that inflation had “levelled off a little bit” overall, but said: “It’s not clear to me that long-term forces are not inflationary … And that’s why I’m saying rates could possibly go up from here. That’s life in the fast lane.”
  • Higher borrowing costs have started to hit debt-fuelled sectors that boomed in the zero-rates era — such as commercial property, where $80 billion (£65 billion) of assets across the US are in some form of financial distress, according to MSCI, and private equity.
  • [the legendary investor] Warren Buffett says you see who’s swimming naked when the tide goes out. Not everyone is really ready for 6 or 7 per cent rates, but I wouldn’t rule them out.”
  • Fink pointed out that the transmission of rate rises into the US economy was less direct than in the UK
  • “I’m a fundamental believer that we’re going to have higher inflation for longer, and it’s going to require the [Fed] to raise rates higher — probably one or two more tightenings — and that will ultimately be the way we get into recession.”
  • Many senior figures on Wall Street worry about the US government’s ability to finance itself in the medium term. As in the UK, the market for government debt was underpinned by huge waves of quantitative easing (QE) after the financial crisis, as the Federal Reserve, in effect, bought assets including Treasuries to boost the economy. Following a revival of the programme during Covid, it came to an end in March last year.
  • The withdrawal of QE, combined with lacklustre appetite for Treasuries among US banks and international investors such as China, could force the government to pay higher prices at a time of near-record borrowing.
  • “It might be a 20km headwind right now, but next year it’s going to be 25km and it’s going to grow,” a top investor said of the decreasing international demand for US government debt.
  • US stock market floats and fundraisings, the heartbeat of capital markets, slumped to their lowest level since 1998 last year as the spike in interest rates punctured valuations of growth stocks in sectors such as tech and healthcare.
  • The cautious mood on Wall Street comes against a backdrop of surprisingly strong US growth. The economy expanded by an astonishing 4.9 per cent in the third quart
  • the Biden administration is shovelling stimulus into the system via big pieces of legislation promising to accelerate America’s adoption of renewables, rebuild its advanced semiconductor industry and increase its spending on roads, bridges and broadband.
  • We have huge stimulus,” said Fink. “People are not factoring in the Inflation Reduction Act, the Chips Act and the Infrastructure Act, which are about $970 billion of stimulus. Those are the largest stimuluses ever when there’s not a pandemic or a financial crisis ... And it’s at a time when you can have unions win a 25 per cent labour increase … These are very inflationary, whether it’s the fiscal stimulus or these wage increases.”
  • It all comes back to that word. Unexpectedly high growth, massive government stimulus and now two wars that threaten to spill out into broader crises — it all spells inflation. The flurry of hope in markets that Fed and the Bank of England have reached the top of their rate-raising cycles may yet prove premature
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