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In a city like New York, where everything is superlative, who exactly is middle class?

“My niece just bought a home in Atlanta for $85,000,” she said. “I almost spend that on rent and utilities in a year.

“Housing has always been one of the ways the middle class has defined itself, by the ability to own your own home. But in New York, you didn’t have to own.” There is no stigma, he said, to renting a place you can afford only because it is rent-regulated; such a situation is even considered enviable.

“It’s overwhelmingly housing — that’s the big distortion relative to other places,” said Frank Braconi, the chief economist in the New York City comptroller’s office. “Virtually everything costs more, but not to the degree that housing does.”

The average Manhattan apartment, at $3,973 a month, costs almost $2,800 more than the average rental nationwide. The average sale price of a home in Manhattan last year was $1.46 million, according to a recent Douglas Elliman report, while the average sale price for a new home in the United States was just under $230,000.

New Yorkers also live in a notably unequal place. Household incomes in Manhattan are about as evenly distributed as they are in Bolivia or Sierra Leone — the wealthiest fifth of Manhattanites make 40 times more than the lowest fifth, according to 2010 census data.

There is no single, formal definition of class status in this country. Statisticians and demographers all use slightly different methods to divvy up the great American whole into quintiles and median ranges. Complicating things, most people like to think of themselves as middle class. It feels good, after all, and more egalitarian than proclaiming yourself to be rich or poor. A $70,000 annual income is middle class for a family of four, according to the median response in a recent Pew Research Center survey, and yet people at a wide range of income levels, including those making less than $30,000 and more than $100,000 a year, said they, too, belonged to the middle.

“You could still go into a bar in Manhattan and virtually everyone will tell you they’re middle class,” said Daniel J. Walkowitz, an urban historian at New York University.

The price tag for life’s basic necessities — everything from milk to haircuts to Lipitor to electricity, and especially housing — is more than twice the national average.

If the money you live on is coming from any kind of investment or dividend, you are probably not middle class, according to Mr. Braconi.

Without the clear badge of middle-class membership — a home mortgage — it is hard to say where a person fits on the class continuum. So let’s consider the definition of “middle class” through five different lenses.

If you live in Manhattan and you are making more than $790,000 a year, then congratulations, you are the 1 percent.

“Understanding who is middle class, in New York, but especially Manhattan, is all about when you got into the real estate market,” he said. “If you bought an apartment prior to 2000, or have long been in a rent-stabilized apartment, you could probably be a teacher in Manhattan and be solidly middle class. But if you bought or started renting in a market-rate apartment over the last 5 or 10 years, you could probably be a management consultant and barely have any savings.”

By the same formula — measuring by who sits in the middle of the income spectrum — Manhattan’s middle class exists somewhere between $45,000 and $134,000.

But if you are defining middle class by lifestyle, to accommodate the cost of living in Manhattan, that salary would have to fall between $80,000 and $235,000. This means someone making $70,000 a year in other parts of the country would need to make $166,000 in Manhattan to enjoy the same purchasing power.

Using the rule of thumb that buyers should expect to spend two and a half times their annual salary on a home purchase, the properties in Manhattan that could be said to be middle class would run between $200,000 and $588,000.

On the low end, the pickings are slim. The least expensive properties are mostly uptown, in neighborhoods like Yorkville, Washington Heights and Inwood. The most pleasing options in this range, however, are one-bedroom apartments not designed for children or families.

“There’s no room for the earlier version of the middle class,” Mr. Walkowitz said. Firefighter, police officer, teacher and manufacturing worker all used to be professions that could lift a family into its ranks. But those kinds of jobs have long left people unable to keep up with soaring real estate prices.

Positions that would nudge a family into the upper class elsewhere — say, vice president or director of strategy — and professions like psychologist are solidly middle class in Manhattan.

The same holds true for jobs in higher education, a growth sector for the city. The average tenured university professor at New York University or Columbia makes more than $180,000 a year, according to a 2012 survey by The Chronicle of Higher Education. Sweetening the deal for those looking to buy, N.Y.U. has offered mortgage assistance and discounted loans, while qualified Columbia faculty are eligible for a subsidy of up to $40,000 a year. Some faculty members benefit from university housing that rents well below the market rate, in prime locations on the Upper West Side and in Greenwich Village.

Because her building is owned by Columbia, her rent, about $1,800 a month, is manageable on an associate professor’s salary, which averages about $125,000. A similar market-rate apartment on the Upper West Side costs about $6,000 a month,

One way to stay in Manhattan as a member of the middle class is to be in a relationship. Couples can split the cost of a one-bedroom apartment, along with utilities and takeout meals. But adding small roommates, especially the kind that do not contribute to rent, creates perhaps the single greatest obstacle to staying in the city.

Only 17 percent of Manhattan households have children, according to census data. That is almost half the national average, making little ones the ultimate deal-breaker for otherwise die-hard middle-class Manhattanites.

By one measure, in cities like Houston or Phoenix — places considered by statisticians to be more typical of average United States incomes than New York — a solidly middle-class life can be had for wages that fall between $33,000 and $100,000 a year.

“The only artists I know now who are still in Manhattan,” she said, “either made it big and bought, or are still in the rent-controlled studios they landed in 1976, and will leave in a coffin.”

People define class as much by association and culture as they do by raw numbers — a sense, more than anything, of baseline financial security garnished by an occasional luxury like a vacation, and a belief that things can get better through hard work and determination.

In the last decade, the percentage of people who are paying “unaffordable rents” (defined as more than 30 percent of their income) has increased significantly, according to a report issued in September by the city’s comptroller.

The only young people she sees moving in around her are often buoyed by parental support, given an apartment at graduation the way she was given a Seiko watch. As her own friends and neighbors age or die out, she wonders, “who is going to take our place?”

Globalization helps drive these patterns to new extremes. Money flows into suburbs like San Marino and Palos Verdes, where Asian immigrants buy up expensive properties and generously donate their time and money to the local schools. Money flows out of poorer suburbs like South Gate, Bell and Huntington Park, all heavily Latino, where disposable income is tight and many families export remittances to a home country. New poverty builds upon old impoverishment. Infrastructure is stretched as renters crowd into dwellings that were modest to begin with. The toxic footprint of departed industries is left behind for new residents to contend with.

Many of Los Angeles’s middling suburbs have also slipped, especially those ravaged by plant closures since the 1980s. The southern section of blue-collar suburbs was hit especially hard. Here, suburbia transformed from comfortable communities housing unionized workers with well-paying jobs in local factories that gave them access to a middle-class lifestyle to fiscally strained communities housing immigrants working in low-paying, nonunion jobs.

Outer suburbs have fared little better. As home costs skyrocketed in recent decades, families chased “affordable” housing to the exurbs. They took on outsize mortgages and monster commutes, and they took with them congested roads, smog and sprawl. Compounding these strains, tax revenues lagged behind the cost of schools, roads, parks and libraries — the very infrastructure necessary to sustain middle-class life. This edifice came crashing down in the recession.

Policies to redress suburban inequality must focus not only on factors like income but also on tax equity across metro areas and regional planning that fairly distributes resources and responsibilities (like affordable housing). We should limit the mortgage-interest deduction for second homes and for values above the regional median. These steps would reduce distortions that inflate housing prices and concentrate wealth in what are already wealthy places.

Clark declines to join McMeekin in what he calls “the blame game,” because there were so many participants. He argues that trying to fix guilt on one leader or nation assumes that there must be a guilty party and this, he maintains, distorts the history into a prosecutorial narrative that misses the essentially multilateral nature of the exchanges, while underplaying the ethnic and nationalistic ferment of a region. “The outbreak of war in 1914,” he writes, “is not an Agatha Christie drama at the end of which we will discover the culprit standing over a corpse in the conservatory with a smoking pistol.” Not having a villain to boo is emotionally less satisfying, but Clark makes a cogent case for the war as a tragedy, not a crime: in his telling there is a smoking pistol in the hands of every major character.

Clark makes a fascinating point I’ve not seen before: not simply were all the political players in the drama male, but they were men caught in a “crisis of masculinity.” He cites historians of gender who argue that at this particular time “competition from subordinate and marginalized masculinities — proletarian and nonwhite for example” accentuated assertiveness. You’d expect the military men to exude testosterone, and they do, but Clark is struck by how ubiquitous in memoir and memorandums are pointedly masculine modes of comportment, and how closely they are interwoven with their understanding of policy. “Uprightness,” “backs very stiff,” “firmness of will,” “self-castration” are typical modes of expression.

The brilliance of Clark’s far-reaching history is that we are able to discern how the past was genuinely prologue. The participants were conditioned to keep walking along a precipitous escarpment, sure of their own moral compass, but unknowingly impelled by a complex interaction of deep-rooted cultures, patriotism and paranoia, sediments of history and folk memory, ambition and intrigue. They were, in Clark’s term, “sleepwalkers, watchful but unseeing, haunted by dreams, yet blind to the reality of the horror they were about to bring into the world.”

Some of our greatest music was written under the influence: would David stop that? Jazz might not exist without it. All of our recent presidents were stoners at some point - and the current president in his teens was an enthusiast even by Hawaii standards in the 1970s. Does David think that the man who wrote Dreams From My Father suffered from impaired memory? Does he believe that Michael Phelps who smoked pot and became the most decorated Olympian of all time didn't do one of those two things? Can we not discuss drugs rationally, rather than with this vast super-structure of boomer-era culture-war synapses attached to it?

Here's the "drug abuse" site's description of how dreadful canabis dependency can be: Long-term marijuana abusers trying to quit report withdrawal symptoms including: irritability, sleeplessness, decreased appetite, anxiety, and drug craving, all of which can make it difficult to remain abstinent. These symptoms begin within about 1 day following abstinence, peak at 2-3 days, and subside within 1 or 2 weeks following drug cessation. How many alcoholics would kill for a two-week readjustment period after using a drug for a lifetime?

In saying his core point is to protect the vulnerable and poor, he also fails inexplicably to note how enforcement of petty marijuana possession laws in urban centers needlessly ruins countless lives, and does so with a racial disparity that is simply staggering. The first thing you'd do to improve the prospects of the young black men David rightly cares about is to stop incarcerating the black pot-smokers at rates white kids and their parents would not tolerate for a milli-second.

If it just means that Americans have believed their country is special, then (as a British skeptic writes) there is “nothing exceptional about this exceptionalism. All great nations cherish national myths.”[1] If it means that the U.S.A. was exceptionally virtuous given its precocious dedication to civil and religious liberty, equality, justice, prosperity, social mobility, and peace and harmony with all nations, then ipso facto the U.S.A. is exceptionally vicious for falling so short of those ideals. If the term means rather that Americans are somehow exempted from the laws of entropy governing other nations—that (as Bismarck reportedly quipped) “God has a special providence for fools, drunks, and the United States of America”—then such exceptionalism can only be proven sub specie aeternitatis. Indeed, the very illusion that a nation is under divine dispensation may perversely inspire the pride that goeth before a fall (“thou shalt not tempt the Lord thy God”) or the many bad ends to which reckless adolescents are prone. Finally, if American Exceptionalism means that its power, values, and “indispensable” status render the United States exempt from the rules of behavior it makes and enforces on other nations, then enemies, neutrals, and allies alike are sure to push back.

it was probably just a matter of time before somebody turned the Stalinist term of derision into a patriotic badge of honor and ait stamped it over all of American history. As it happened, that somebody was Max Lerner, a former editor of The Nation turned Cold War liberal and author of the one-thousand page America as a Civilization (1957).

he concluded that “these distortions should not blind us to the valid elements in the theory of exceptionalism.... America represents, as I have stressed above, the naked embodiment of the most dynamic elements of modern Western history

Exceptionalism dovetailed perfectly with a new orthodoxy among political scientists that extolled what Harvard professor Louis Hartz called America’s Liberal Tradition.

the idea of an America set apart by Providence and endowed with a special mission to reform (not to say redeem) the whole human race dovetailed perfectly with the political rhetoric needed to rally Americans to lead the Free World in what amounted to a “holy war” against “godless Communism.”

Those were the years when the “Judaeo-Christian tradition” became a civilizational motto

Those were the years when presidential rhetoric became steeped in what sociologist Robert Bellah called “God-Talk,”

how come computerized word-searches show that references to American Exceptionalism exploded—literally from hundreds to tens of thousands—only after the Cold War was over?

the Cold War was over, globalization and multiculturalism were the new trends, and American identity got contested as never before. What made exceptionalist rhetoric ubiquitous was the fact it was now contested

the myth of American Exceptionalism, ironically inspired by Roman Catholics and Marxists, entered our lexicon as historical gloss for the campaign to persuade a skeptical, war-weary people that global commitments such as the UN, Truman Doctrine, and NATO were not really a break with tradition, but a fulfillment of the nation’s hoariest, holiest calling.

As early as 1630, Massachusetts Governor John Winthrop implored his people ‘to Consider that wee shall be as a Citty upon a Hill, the eies of all people are uppon us.’”[12] I took for granted that my teachers and textbooks were right when they traced our national identity back to the Puritans beginning with Winthrop’s Model of Christian Charity. Composed on board the ship Arbella bound for the New World, it seemed the elegant spiritual companion to the Pilgrims’ Mayflower Compact.

he borrowed a New Testament image when he imagined New England as a city on a hill called to inspire the whole human race by its example.

the dogged literary excavations of historian Richard Gamble have now exposed it as myth. It turns out that Winthrop’s manuscript, far from serving as keynote address of the American pageant, was either unknown or forgotten until it turned up in the family archives in 1809. Donated to the New York Historical Society, it slept for another three decades before publication in a Massachusetts collection of colonial documents in 1838

The famous “City on a Hill” passage appears in the Sermon on the Mount as one in a list of metaphors Jesus uses to describe his disciples. He speaks of them as the salt of the earth, the light of the world, a city on a hill, and a lamp not hidden under a bushel. The passage served as text for many a sermon preached by colonial divines, not least Jonathan Edwards. But those pastors were quoting the Bible to make theological points to Christian audiences; none was quoting Winthrop to make political points to American audiences. What has been lost “in the fierce crossfire of the battle to define the American identity,” Gamble writes, is “the story not of how the metaphor helped make America what it is today but the story of how America helped make the metaphor what it never was.”

not even the Puritans were “impelled by a unique or exceptional American impulse. On the contrary, they were products of European education, European culture, European piety, and they were engaged in a great European quarrel.

Americans have always been tempted to think that because they live in God’s Country they must be God’s Elect. Such faith has its uses, for instance to motivate a free and disparate people to rally and sacrifice in times of crisis. But it verges on idolatry from the standpoint of Biblical religion and—if exploited for partisan purposes—verges on heresy from the standpoint of civil religion.

Trump’s pathologically abusive tendencies, his hair-trigger overreaction to criticism and slights both real and imagined, and his mental habit of sorting the world into the strong and the weak — the dominant and the submissive — render him temperamentally unfit for the presidency

He lacks basic knowledge of the world and doesn’t appear burdened by any curiosity about the complexities of foreign affairs or domestic policy

He is at worst a genuine bigot and at best a charlatan who has actively sought to stoke reactionary hostility to culturally and demographically evolving America.

He is indifferent to the inner workings of the American system and instead promises authoritarian glory.

Trump’s basic vision of the country as an apocalyptic hellscape — in which we’re existentially threatened by skyrocketing crime, dark hordes flooding up from the south, and refugee-terrorists menacing us from the east — is based on exaggerations, distortions, and lies.

First, the anti-immigration obsession that had transfixed the right-wing inured many supposed gate-keepers (e.g., magazines, pundits) as well as the base to a candidate peddling a dangerous brew of nativism, protectionism and isolationism. If the “respectable” publications rant and rave about “amnesty,” one can imagine why Trump’s idea for a wall might have gotten traction rather than guffaws

Second, over the past seven years, the anti-government tirades from talk radio, from Beltway groups such as Heritage Action and even from Sen. Ted Cruz (R-Tex.) saturated the base, convincing them that everyone with experience “betrayed them” and only outsiders devoid of exposure to governance had the secret sauce for peace and prosperity.

Third, the “establishment” — the officialdom of the Republican National Committee — facilitated Trump’s rise, convinced he’d run as an independent

One, therefore, is left with an unpleasant reality: A plurality of GOP voters wanted Trump

A significant segment of the GOP primary electorate itself lacked common sense, standards of decency, and intolerance of bigotry and cruelty. No group was worse than the evangelical “leaders” who cheered him along the way.

A Republican wag joked that the GOP needs not only a new candidate but also a new base. There is something to that. In the 2016 postmortem, it will be worth examining the extent to which the GOP has promoted crackpots, become ghettoized in distorted right-wing media and lost track of what 21st-century America believes and looks like

the party as a whole has to expand its vision and its base. It’s time to stop reveling in ignorance and celebrating lost causes.

It’s a problem when the rest of the country has to rescue the GOP and the country from Republican voters’ terrible judgment.

During the Cold War, the Ford administration convened a Team B comprised of conservative foreign-policy thinkers to challenge the intelligence community’s estimates of Soviet nuclear capabilities. Then-CIA director and future President George H.W. Bush later concluded the group’s work lent “itself to manipulation for purposes other than estimative accuracy.”

In the early 1990s, after a rocky confirmation process during which he was accused of politicizing intelligence analysis, Director of the CIA Robert Gates implemented a series of reforms aimed at guarding against political or ideological thinking coloring intelligence analysis. Gates described politicization as “deliberately distorting analysis or judgments to favor a preferred line of thinking irrespective of evidence.”

during my tenure as an analyst with the CIA—President George W. Bush’s administration exerted unusual pressure to have the CIA support its plans to invade Iraq because of that country’s alleged ties to al-Qaeda and its weapons of mass destruction program. Both assumptions proved flawed.

It is anathema to the training most analysts receive and the values that lie at the heart of the vocation. There is a high cost to putting ideology over informed assessments of political, economic, and military realities.

Intelligence analysis is more an imperfect art than it is a science: Gaps in reporting, bad sources, and circular reporting all complicate the analyst’s quest for knowledge and understanding

Politicization, however, sits on top of all of these complicating factors because it is an act of willful commission: At its most overt, it amounts to using a political position to get people to say that a clear, bright blue sky is cloudy

Speaking “truth to power” requires courage, because political partisans are all too happy to causally decry dissent as disloyalty.

What is the cost of politicization? As of 2013, it was estimated that the American invasion of Iraq in 2003 cost an estimated $1.7 trillion, and saw over 4,000 Americans killed in action and over 30,000 wounded in action. Those numbers don’t include the families of the fallen; the innocent Iraqis killed or wounded during the conflict; or the insurgency that evolved into the extremist threat that we now know as ISIS.

The irony is that President Trump is a vocal critic of his predecessors’ decisions to invade, occupy, and ultimately withdraw from Iraq. In the run-up to that war, the Department of Defense formed an Office of Special Plans, conceived by Deputy Secretary of Defense Paul Wolfowitz, which as Seymour Hersh argued in The New Yorker, “was created in order to find evidence of what Wolfowitz and his boss, Defense Secretary Donald Rumsfeld, believed to be true” about Iraq the threat it posed to the world

But that hasn’t happened. Builders have gone recruiting in high schools and elsewhere, looking for people willing to learn building skills, but they’re not having much luck.

the labor shortage hasn’t led to higher wages; it’s reduced and distorted the flow of the economic river. There’s less home buying, less furniture buying, less economic activity. People devote a larger share of their income to housing and less to everything else. When builders do have workers, they focus on high-end luxury homes, leaving affordable housing high and dry.

The essential point is that immigrants don’t take native jobs on any sort of one-to-one basis. They drive economic activity all the way down the river, creating new jobs in some areas and then pushing native workers into more complicated jobs in others.

Construction is hard, many families demean physical labor and construction is highly cyclical. Hundreds of thousands of people lost construction jobs during the financial crisis and don’t want to come back. They want steadier work even at a lower salary.

A comprehensive study of non-European Union immigrants into Denmark between 1991 and 2008 found that immigrants did not push down wages, but rather freed natives to do more pleasant work.

An exhaustive U.S. study by the National Academy of Sciences found that immigration didn’t drive down most wages, but it had a “very small” and temporary effect on native-born workers without a high school degree.

Dr. Dodes is a retired assistant clinical professor of psychiatry at Harvard Medical School. Dr. Schachter is a former chairman of the Committee on Research Proposals, International Psychoanalytic Association. The letter was also signed by 35 other psychiatrists, psychologists and social workers.

So Ailes came up with a brilliantly cynical strategy. He created a conservative news channel that dispensed with objectivity, and sometimes with facts, while claiming it was more objective — “Fair and Balanced” — than the competition.

Baker believes that most media is hopelessly biased, Journal staffers say. He views his critics as liberal whiners, and his approach as the fair and balanced one.

I happen to agree that liberal bias can be a media problem. On important issues — abortion, education, parenting and religion, to name a few — left-leaning beliefs too often distort coverage. The Journal, and every newspaper, should indeed fight that problem.

But that’s very different from saying reporters protect any political party. They don’t. Journalists’ incentives and instincts all point the other way. Which is why the media reported so aggressively on Hillary Clinton’s emails, damaging her badly.

has there ever been a more important time for sophisticated and fearless financial journalism?

Conard said Baker was undercounting the social benefits of investment. He looks, in particular, at agriculture, where, since the 1940s, the cost of food has steadily fallen because of a constant stream of innovations. While the businesses that profit from that innovation — like seed companies and fast-food restaurants — have made their owners rich, the average U.S. consumer has benefited far more. Conard concludes that for every dollar an investor gets, the public reaps up to $20 in value. This is crucial to his argument: he thinks it proves that we should all appreciate the vast wealth of others more, because we’re benefiting, proportionally, from it.

What about investment banks, with their complicated financial derivatives and overleveraged balance sheets? Conard argues that they make the economy more efficient, too. The financial crisis, he writes, was not the result of corrupt bankers selling dodgy financial products. It was a simple, old-fashioned run on the banks, which, he says, were just doing their job

He argues that collateralized-debt obligations, credit-default swaps, mortgage-backed securities and other (now deemed toxic) financial products were fundamentally sound. They were new tools that served a market need for the world’s most sophisticated investors,

“A lot of people don’t realize that what happened in 2008 was nearly identical to what happened in 1929,” he says. “Depositors ran to the bank to withdraw their money only to discover, like the citizens of Bedford Falls” — referring to the movie “It’s a Wonderful Life” — “that there was no money in the vault. All that money had been lent.”

In 2008 it was large pension funds, insurance companies and other huge institutional investors that withdrew in panic. Conard argues in retrospect that it was these withdrawals that led to the crisis — not, as so many others have argued, an orgy of irresponsible lending

Conard concedes that the banks made some mistakes, but the important thing now, he says, is to provide them even stronger government support. He advocates creating a new government program that guarantees to bail out the banks if they ever face another run.

the central role of banks, Conard says, is to turn the short-term assets of nervous savers into risky long-term loans that help the economy grow.

A central problem with the U.S. economy, he told me, is finding a way to get more people to look for solutions despite these terrible odds of success. Conard’s solution is simple. Society benefits if the successful risk takers get a lot of money

As Conard told me, one of the crucial lessons he learned at Bain is that it makes no sense to look for easy solutions. In a competitive market, all that’s left are the truly hard puzzles. And they require extraordinary resources. While we often hear about the greatest successes — penicillin, the iPhone — we rarely hear about the countless failures and the people and companies who financed them.

we live longer, healthier and richer lives because of countless microimprovements like that one. The people looking for them, Conard likes to point out, are not only computer programmers, engineers and scientists. They are also wealthy investors like him

He said the only way to persuade these “art-history majors” to join the fiercely competitive economic mechanism is to tempt them with extraordinary payoffs.

When I look around, I see a world of unrealized opportunities for improvements, an abundance of talented people able to take the risks necessary to make improvements but a shortage of people and investors willing to take those risks. That doesn’t indicate to me that risk takers, as a whole, are overpaid. Quite the opposite.” The wealth concentrated at the top should be twice as large, he said. That way, the art-history majors would feel compelled to try to join them.

Rather than simply serving as an invitation for everybody to engage in potentially beneficial risk-taking, inequality can allow those with wealth to crush new ideas.

Unlike Romney, Conard rejects the notion that America has “some monopoly on hard work or entrepreneurship.” “I think it’s simple economics,” he said. “If the payoff for risk-taking is better, people will take more risks

Conard sees the success of the U.S. economy as, in part, the result of a series of historic accidents. Most recently, the coincidence of Roe v. Wade and the late 1970s economic malaise allowed Ronald Reagan to unify social conservatives and free-market advocates and set the country on a pro-investment path for decades. Europeans, he says, made all the wrong decisions. Concern about promoting equality and protecting favored industries have led to onerous work rules, higher taxes and all sorts of social programs that keep them poorer than Americans.

Now we’re at a particularly crucial moment, he writes. Technology and global competition have made it more important than ever that the United States remain the world’s most productive, risk-taking, success-rewarding society. Obama, Conard says, is “going to dampen the incentives.” Even worse, Conard says, “he’s slowing the accumulation of equity” by fighting income inequality.

Conard’s book addresses what is perhaps the most important question in economics, the one Adam Smith set out to answer in “The Wealth of Nations”: Why do some countries grow so rich and others stay poor? Where you come down on the answer has as much to do with your politics as your economic worldview (two things that can often be the same)

Nearly every economist I spoke with said that Conard has too much faith in the market’s ability to reward only those who create real value. Conard, for instance, insists that even the dodgiest financial products must have been beneficial or else nobody would have bought them in the first place. If a Wall Street trader or a corporate chief executive is filthy rich, Conard says that the merciless process of economic selection has assured that they have somehow benefited society. Even pro-market Romney supporters take issue with this. “Ed ought to be more concerned about crony capitalism,” Hubbard told me.

“Unintended Consequences” ignores some of the most important economic work of the past few decades, about how power and politics influence economic growth. In technical language, this field is the study of “rent seeking,” in which people or companies get rich because of their power, not because of their ideas.

wealthy individuals and corporations are able to influence politicians and regulators to make seemingly insignificant changes to regulations that benefit themselves. In other words, to rig the game

Conard’s version of the financial crisis ignores much reporting and analysis — including work I’ve done with NPR’s “Planet Money” team — that shows that some of the nation’s largest banks actively manipulated customers and regulators and, sometimes, their own stockholders to profit from dangerous risk

he expressed anger over the praise that Warren Buffett has received for pledging billions of his fortune to charity. It was no sacrifice, Conard argued; Buffett still has plenty left over to lead his normal quality of life. By taking billions out of productive investment, he was depriving the middle class of the potential of its 20-to-1 benefits. If anyone was sacrificing, it was those people. “Quit taking a victory lap,” he said, referring to Buffett. “That money was for the middle class.”

Perhaps concentrated wealth will inspire a nation of innovative problem-solvers. But if the view of many economists is right — that it sometimes discourages innovation — then we should worry

on this one he resorted to anecdotes and gut feelings. During his work at Bain, he said, he saw that successful companies had to battle against one another. Nobody was just given a free ride because of their power. “Was a person, like me, excluded from opportunity?” he asked rhetorically. “If so, I wasn’t aware!”

both could be true. The rich could earn a great deal of wealth through their own hard work, skill and luck. They could also use their subsequent influence to make themselves even richer

One of the great political and economic challenges of our time is figuring out the balance between wealth that benefits society and wealth that distorts.

Glenn Hubbard said only that at a broad level, Romney and Conard share “beliefs about innovation and growth and responsible risk-taking.”

Conard and Romney certainly share views on numerous policy matters. Like many Republicans, they promote lower taxes and less regulation for those who achieve financial succes

it reflects conservative belief in the magic of the marketplace, in the superiority of free-market competition over government planning.

despite many promises that prison privatization will lead to big cost savings, such savings — as a comprehensive study by the Bureau of Justice Assistance, part of the U.S. Department of Justice, concluded — “have simply not materialized.”

To the extent that private prison operators do manage to save money, they do so through “reductions in staffing patterns, fringe benefits, and other labor-related costs.”

So what’s really behind the drive to privatize prisons, and just about everything else?

One answer is that privatization can serve as a stealth form of government borrowing, in which governments avoid recording upfront expenses (or even raise money by selling existing facilities) while raising their long-run costs in ways taxpayers can’t see. We hear a lot about the hidden debts that states have incurred in the form of pension liabilities; we don’t hear much about the hidden debts now being accumulated in the form of long-term contracts with private companies hired to operate prisons, schools and more.

Another answer is that privatization is a way of getting rid of public employees, who do have a habit of unionizing and tend to lean Democratic in any case.

But the main answer, surely, is to follow the money. Never mind what privatization does or doesn’t do to state budgets; think instead of what it does for both the campaign coffers and the personal finances of politicians and their friends. As more and more government functions get privatized, states become pay-to-play paradises, in which both political contributions and contracts for friends and relatives become a quid pro quo for getting government business

nonprivatized government has its own problems of undue influence, that prison guards and teachers’ unions also have political clout, and this clout sometimes distorts public policy. Fair enough. But such influence tends to be relatively transparent. Everyone knows about those arguably excessive public pensions; it took an investigation by The Times over several months to bring the account of New Jersey’s halfway-house-hell to light.

It is, instead, almost surely a glimpse of a pervasive and growing reality, of a corrupt nexus of privatization and patronage that is undermining government across much of our nation.

it’s become increasingly clear that social and emotional deficits can trump material or even intellectual progress.

psychological researchers have taught us that motivation, self-control and resilience are together as important as raw I.Q. and are probably more malleable.

Schools are now casting about, trying to find psychological programs that will help students work on resilience, equanimity and self-control. Some schools give two sets of grades — one for academic work and one for deportment.

across vast stretches of America, economic, social and family breakdowns are producing enormous amounts of stress and unregulated behavior, which dulls motivation, undermines self-control and distorts lives.

in the long run, “when pay setters set their own pay, there’s no limit,” unless “confiscatory tax rates” are imposed.

suggests that traditional liberal government policies on spending, taxation and regulation will fail to diminish inequality.

Conservative readers will find that Piketty’s book disputes the view that the free market, liberated from the distorting effects of government intervention, “distributes,” as Milton Friedman famously put it, “the fruits of economic progress among all people.

Piketty proposes instead that the rise in inequality reflects markets working precisely as they should: “This has nothing to do with a market imperfection: the more perfect the capital market, the higher” the rate of return on capital is in comparison to the rate of growth of the economy. The higher this ratio is, the greater inequality is.

we are in the presence of one of the watershed books in economic thinking.”

There are a number of key arguments in Piketty’s book.

One is that the six-decade period of growing equality in western nations – starting roughly with the onset of World War I and extending into the early 1970s – was unique and highly unlikely to be repeated. That period, Piketty suggests, represented an exception to the more deeply rooted pattern of growing inequality.

According to Piketty, those halcyon six decades were the result of two world wars and the Great Depression. The owners of capital – those at the top of the pyramid of wealth and income – absorbed a series of devastating blows. These included the loss of credibility and authority as markets crashed; physical destruction of capital throughout Europe in both World War I and World War II; the raising of tax rates, especially on high incomes, to finance the wars; high rates of inflation that eroded the assets of creditors; the nationalization of major industries in both England and France;

The six decades between 1914 and 1973 stand out from the past and future, according to Piketty, because the rate of economic growth exceeded the after-tax rate of return on capital. Since then, the rate of growth of the economy has declined, while the return on capital is rising to its pre-World War I levels.

“If the rate of return on capital remains permanently above the rate of growth of the economy – this is Piketty’s key inequality relationship,” Milanovic writes in his review, it “generates a changing functional distribution of income in favor of capital and, if capital incomes are more concentrated than incomes from labor (a rather uncontroversial fact), personal income distribution will also get more unequal — which indeed is what we have witnessed in the past 30 years.”

The Piketty diagnosis helps explain the recent drop in the share of national income going to labor (see Figure 2) and a parallel increase in the share going to capital.

Piketty’s analysis also sheds light on the worldwide growth in the number of the unemployed. The International Labor Organization, an agency of the United Nations, reported recently that the number of unemployed grew by 5 million from 2012 to 2013, reaching nearly 202 million by the end of last year. It is projected to grow to 215 million by 2018.

Piketty’s wealth tax solution runs directly counter to the principles of contemporary American conservatives who advocate antithetical public policies: cutting top rates and eliminating the estate tax.

even this chart may understate the effects of copyright, since the comparison assumes that the same quantity of books has been published every decade. This is of course not the case: Increasing literacy coupled with technological efficiencies mean that far more titles are publishe

By this calculation, the effect of copyright appears extreme. Heald says that the WorldCat research showed, for example, that there were eight times as many books published in the 1980s as in the 1880s, but there are roughly as many titles available on Amazon for the two decades.

Copyright advocates have long (and successfully) argued that keeping books copyrighted assures that owners can make a profit off their intellectual property, and that that profit incentive will "assure [the books'] availability and adequate distribution." The evidence, it appears, says otherwise.

Moreover, she disregards the findings of the sources she does rely on when they contradict her yellow journalism conspiracy theories.

for anyone familiar with the historical literature, the core of what she has written is well known and what is new is either overheated, or simply false and distorted

West proceeds to construct a conspiracy thesis resting on five claims she believes establish a vast plot by Soviet agents and their American pawns to shape the outcome of the Second World War and in the process benefit the Communists at the expense of the West.

In this review, I will focus on each of these claims in turn and show that they are groundless, and worse.

What's the basis for the GOP claim that the time has come to "defund Obamacare" and threaten default and shutdown to get their way? Their passion comes from their contention that the public has turned against this program. Thus, they are doing no more than reflecting popular will.

1) Just last year, a presidential election was fought over this exact issue, along with economic policy more broadly. When the votes came in, Barack Obama scored a runaway Electoral College win -- and became the first person since Dwight Eisenhower to get more than 51% of the popular vote twice.

2) In that year's elections for the Senate, the Democrats increased their majority by two seats and overall received 10 million+ more votes than all Republican candidates.

3) And last year even in the elections for the House, Democrats -- who for better or worse were forced to run on Obamacare and the president's economic policies -- gained 8 seats and received 1.7 million more votes than did all Republican candidates combined. 

all evidence suggests that without post-2010 gerrymandering, the Democrats might well control the House right now, along with the Senate and White House.

In short, we have a faction making historically unprecedented demands -- give us everything, or we stop the government and potentially renege on the national debt. And it is doing so less than a year after its party lost the presidency, lost the Senate (and lost ground there), and held onto the House in part because of rotten-borough distortions. 

The Invisibles offer “an alternate path to success” — they got where they were not by courting attention, but by working quietly and extremely carefully toward something bigger than themselves. “The work they do is always in service of a larger endeavor,”

they show that at least for some people, “when you focus on excellence and good work, that actually does get recognized in the end.”

Many Americans, he said, feel “this pressure to have more of a presence online and just in the overall corporate environment to be promoting themselves more, when they really would be far better off focusing on their work.”

many people he’d talked to while working on the book expressed “anxiety and even resentment about a work culture today where it’s expected of you to really be pushing yourself in a promotional way.” His book, he said, “gives them permission to step off the wheel” of self-promotion and go back to their actual jobs.

Nobel laureate Peter Higgs, of Higgs Boson fame, said he wouldn’t make it as an academic today because he wouldn’t be considered productive enough. There’s no time to think.”

the increasing emphasis on the self over the collective could cause problems for science:

“When building an individual’s reputation takes precedence over the common good, it creates troubling distortions. One of them is that scholars and scientists are encouraged to produce as many measurable units of publication as possible.

Those who feel more comfortable working in a collaborative way should do so — “the people in my book show again and again that that has brought them to success.”

“When so many people are competing for attention, getting attention becomes a full time job with dispiriting results (and is highly annoying to everyone else).”

Overall, she said, “there’s not a lot of evidence that self-promotion works. It’s exhausting both for the people doing it and their audience

“It could be argued that a culture of recognition dovetails with a culture of excessive supervision. If the expectation of recognition for nearly everything we do becomes increasingly normalized, what affect does that attitude have on our relationship to privacy, in particular to employers, corporations, and governments overseeing much of what we do?”

“One thing that organizations and managers might think to do is create an environment where it’s frowned upon or not as prevalent for people to constantly promote themselves.”