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A Tight Labor Market Should Prompt Job-Hopping. It's Not - Real Time Economics - WSJ - 0 views

  • The rate at which Americans are leaving their jobs–voluntarily or involuntary–was unchanged in November, at 3.5%, from a year earlier, the Labor Department said in a new report.
  • consistent level of turnover in the labor market indicates employers are reluctant to let workers go, which is expected in a tight labor market. But it also shows workers are cautious about quitting their jobs
  • unemployment rate holding at 4.1% in the final three months of 2017—a 17-year low
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  • Workers may be more reluctant to switch jobs
  • long overhang from the deep recession may weigh on some workers’ psyches
  • may not find high enough wages elsewhere to change jobs
  • Workers are also less mobile, in part due to a spouse’s job or other family concerns.
  • Government work has the lowest turnover, with a rate of 1.6% in November.
  • Changes to the tax law could cause turnover rates to pick up modestly this year
  •  
    This labor relates to the industrial revolution
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Opinion | White Riot - The New York Times - 0 views

  • how important is the frustration among what pollsters call non-college white men at not being able to compete with those higher up on the socioeconomic ladder because of educational disadvantage?
  • How critical is declining value in marriage — or mating — markets?
  • How toxic is the combination of pessimism and anger that stems from a deterioration in standing and authority? What might engender existential despair, this sense of irretrievable loss?
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  • How hard is it for any group, whether it is racial, political or ethnic, to come to terms with losing power and status? What encourages desperate behavior and a willingness to believe a pack of lies?
  • I posed these questions to a wide range of experts. This column explores their replies.
  • The population of U.S. Citizens who’ve lost the most power in the past 40 years, who aren’t competing well to get into college or get high paying jobs, whose marital prospects have dimmed, and who are outraged, are those I believe were most likely to be in on the attack.
  • White supremacy and frank racism are prime motivators, and they combined with other elements to fuel the insurrection: a groundswell of anger directed specifically at elites and an addictive lust for revenge against those they see as the agents of their disempowerment.
  • It is this admixture of factors that makes the insurgency that wrested control of the House and Senate so dangerous — and is likely to spark new forms of violence in the future.
  • While most acute among those possessing high status and power, Anderson said,People in general are sensitive to status threats and to any potential losses of social standing, and they respond to those threats with stress, anxiety, anger, and sometimes even violence
  • The terrorist attacks on 9/11, the Weatherman bombings in protest of the Vietnam War, ethnic cleansing in Bosnia, or the assassination of abortion providers, may be motivated by different ideological beliefs but nonetheless share a common theme: The people who did these things appear to be motivated by strong moral conviction. Although some argue that engaging in behaviors like these requires moral disengagement, we find instead that they require maximum moral engagement and justification.
  • “lower class individuals experience greater vigilance to threat, relative to high status individuals, leading them to perceive greater hostility in their environment.”
  • This increased vigilance, Brinke and Keltner continue, createsa bias such that relatively low socio-economic status individuals perceive the powerful as dominant and threatening — endorsing a coercive theory of power
  • There is evidence that many non-college white Americans who have been undergoing what psychiatrists call “involuntary subordination” or “involuntary defeat” both resent and mourn their loss of centrality and what they perceive as their growing invisibility.
  • Before Trump, many of those who became his supporters suffered from what Carol Graham, a senior fellow at Brookings, describes as pervasive “unhappiness, stress and lack of hope” without a narrative to legitimate their condition:
  • When the jobs went away, families fell apart. There was no narrative other than the classic American dream that everyone who works hard can get ahead, and the implicit correlate was that those who fall behind and are on welfare are losers, lazy, and often minorities.
  • What, however, could prompt a mob — including not only members of the Proud Boys and the Boogaloo Bois but also many seemingly ordinary Americans drawn to Trump — to break into the Capitol?
  • One possible answer: a mutated form of moral certitude based on the belief that one’s decline in social and economic status is the result of unfair, if not corrupt, decisions by others, especially by so-called elites.
  • there is evidence that individuals of lower social class are more cynical than those occupying higher classes, and that this cynicism is directed toward out-group members — that is, those that occupy higher classes.
  • violence is:considered to be the essence of evil. It is the prototype of immorality. But an examination of violent acts and practices across cultures and throughout history shows just the opposite. When people hurt or kill someone, they usually do it because they feel they ought to: they feel that it is morally right or even obligatory to be violent.
  • “Most violence,” Fiske and Rai contend, “is morally motivated.”
  • A key factor working in concert to aggravate the anomie and disgruntlement in many members of Trump’s white working-class base is their inability to obtain a college education, a limitation that blocks access to higher paying jobs and lowers their supposed “value” in marriage markets.
  • A major development since the end of the “Great Compression” of the 30 years or so after World War II, when there was less inequality and relatively greater job security, at least for white male workers, is that the differential rate of return on education and training is now much higher.
  • there isvery consistent and compelling evidence to suggest the some of what we have witnessed this past week is a reflection of the angst, anger, and refusal to accept an “America”’ in which White (Christian) Americans are losing dominance, be it political, material, and/or cultural. And, I use the term dominance here, because it is not simply a loss of status. It is a loss of power. A more racially, ethnically, religiously diverse US that is also a democracy requires White Americans to acquiesce to the interests and concerns of racial/ethnic and religious minorities.
  • In this new world, Federico argues, “promises of broad-based economic security” were replaced by a job market whereyou can have dignity, but it must be earned through market or entrepreneurial success (as the Reagan/Thatcher center-right would have it) or the meritocratic attainment of professional status (as the center-left would have it). But obviously, these are not avenues available to all, simply because society has only so many positions for captains of industry and educated professionals.
  • The result, Federico notes, is that “group consciousness is likely to emerge on the basis of education and training” and when “those with less education see themselves as being culturally very different from an educated stratum of the population that is more socially liberal and cosmopolitan, then the sense of group conflict is deepened.”
  • In their paper “Trends in Educational Assortative Marriage From 1940 to 2003,” Christine R. Schwartz and Robert D. Mare, professors of sociology at the University of Wisconsin and the University of California-Los Angeles, wrote that the “most striking” data in their research, “is the decline in odds that those with very low levels of education marry up.”
  • Trump, Richeson continued,leaned into the underlying White nationalist sentiments that had been on the fringe in his campaign for the presidency and made his campaign about re-centering Whiteness as what it actually means to be American and, by implication, delegitimizing claims for greater racial equity, be it in policing or any other important domain of American life.
  • Whites in the last 60 years have seen minoritized folks gain more political power, economic and educational opportunity. Even though these gains are grossly exaggerated, Whites experience them as a loss in group status.
  • all the rights revolutions — civil rights, women’s rights, gay rights — have been key to the emergence of the contemporary right wing:As the voices of women, people of color, and other traditionally marginalized communities grow louder the frame of reference from which we tell the story of American is expanding
  • The white male story is not irrelevant but it’s insufficient, and when you have a group of people that are accustomed to the spotlight see the camera lens pan away, it’s a threat to their sense of self. It’s not surprising that QAnon support started to soar in the weeks after B.L.M. QAnon offers a way for white evangelicals to place blame on (fictional) bad people instead of a broken system. It’s an organization that validates the source of Q-Anoners insecurity — irrelevance — and in its place offers a steady source of self-righteousness and acceptance.
  • “compared to other advanced countries caught up in the transition to knowledge society, the United States appears to be in a much more vulnerable position to a strong right-wing populist challenge.”
  • First, Kitschelt noted,The difference between economic winners and losers, captured by income inequality, poverty, and illiteracy rates within the dominant white ethnicity, is much greater than in most other Western countries, and there is no dense welfare state safety net to buffer the fall of people into unemployment and poverty.
  • Another key factor, Kitschelt pointed out, is thatThe decline of male status in the family is more sharply articulated than in Europe, hastened in the U.S. by economic inequality (men fall further under changing economic circumstances) and religiosity (leading to pockets of greater male resistance to the redefinition of gender roles).
  • More religious and less well-educated whites see Donald Trump as one of their own despite his being so obviously a child of privilege. He defends America as a Christian nation. He defends English as our national language. He is unashamed in stating that the loyalty of any government should be to its own citizens — both in terms of how we should deal with noncitizens here and how our foreign policy should be based on the doctrine of “America First.”
  • nlike most European countries, Kitschelt wrote,The United States had a civil war over slavery in the 19th century and a continuous history of structural racism and white oligarchical rule until the 1960s, and in many aspects until the present. Europe lacks this legacy.
  • for the moment the nation faces, for all intents and purposes, the makings of a civil insurgency. What makes this insurgency unusual in American history is that it is based on Trump’s false claim that he, not Joe Biden, won the presidency, that the election was stolen by malefactors in both parties, and that majorities in both branches of Congress no longer represent the true will of the people.
  • We would not have Trump as president if the Democrats had remained the party of the working class. The decline of labor unions proceeded at the same rate when Democrats were president as when Republicans were president; the same is, I believe, true of loss of manufacturing jobs as plants moved overseas.
  • President Obama, Grofman wrote,responded to the housing crisis with bailouts of the lenders and interlinked financial institutions, not of the folks losing their homes. And the stagnation of wages and income for the middle and bottom of the income distribution continued under Obama. And the various Covid aid packages, while they include payments to the unemployed, are also helping big businesses more than the small businesses that have been and will be permanently going out of business due to the lockdowns (and they include various forms of pork.
  • “white less well-educated voters didn’t desert the Democratic Party, the Democratic Party deserted them.”
  • On top of that, in the United States.Many lines of conflict mutually reinforce each other rather than crosscut: Less educated whites tend to be more Evangelical and more racist, and they live in geographical spaces with less economic momentum.
  • He speaks in a language that ordinary people can understand. He makes fun of the elites who look down on his supporters as a “basket of deplorables” and who think it is a good idea to defund the police who protect them and to prioritize snail darters over jobs. He appoints judges and justices who are true conservatives. He believes more in gun rights than in gay rights. He rejects political correctness and the language-police and woke ideology as un-American. And he promises to reclaim the jobs that previous presidents (of both parties) allowed to be shipped abroad. In sum, he offers a relatively coherent set of beliefs and policies that are attractive to many voters and which he has been better at seeing implemented than any previous Republican president.
  • What Trump supporters who rioted in D.C. share are the beliefs that Trump is their hero, regardless of his flaws, and that defeating Democrats is a holy war to be waged by any means necessary.
  • In the end, Grofman said,Trying to explain the violence on the Hill by only talking about what the demonstrators believe is to miss the point. They are guilty, but they wouldn’t be there were it not for the Republican politicians and the Republican attorneys general, and most of all the president, who cynically exaggerate and lie and create fake conspiracy theories and demonize the opposition. It is the enablers of the mob who truly deserve the blame and the shame.
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May's Jobs Report: Very Disappointing - The Atlantic - 0 views

  • May's Jobs Report: Very Disappointing
  • . Economists were expecting a modest 158,000 jobs to be added last month, meaning that May’s disappointing jobs report will almost surely be read as a sign of a slowing economy. It is the smallest number of jobs added in a monthly jobs report since 2010.
  • oughly 35,000 Verizon workers were on strike in the month of May, but they returned to work this week after an agreement between Verizon and its union was reached
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  • Jobs reports reveal key economic indicators, and thus this one will likely influence the Federal Reserve’s decision making  at the next Federal Open Market Committee meeting on June 14.
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March 2020: How the Fed Averted Economic Disaster - WSJ - 0 views

  • Over the week of March 16, markets experienced an enormous shock to what investors refer to as liquidity, a catchall term for the cost of quickly converting an asset into cash.
  • Mr. Powell bluntly directed his colleagues to move as fast as possible.
  • They devised unparalleled emergency-lending backstops to stem an incipient financial panic that threatened to exacerbate the unfolding economic and public-health emergencies.
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  • They were offering nearly unlimited cheap debt to keep the wheels of finance turning, and when that didn’t help, the Fed began purchasing massive quantities of government debt outright.
  • Investors dumped whatever they could, including ostensibly “risk-free” U.S. Treasury securities. As a global dash for dollars unfolded, Treasurys were no longer serving as the market’s traditional shock absorbers, amplifying extreme turmoil on Wall Street.
  • By week’s end, the Dow had plunged more than 10,000 points since mid-February as investors struggled to get their arms around what a halt to global commerce would mean for businesses that would soon have no revenue.
  • “It was sheer, unadulterated panic, of a magnitude that was far worse than in 2008 and 2009. Far worse,”
  • The idea of shutting down markets was especially discouraging: “It was a profoundly un-American thing to contemplate, to just shut everything down, and almost fatalistic—that we’re not going to get out of this.”
  • nearly two years later, most agree that the Fed’s actions helped to save the economy from going into a pandemic-induced tailspin.
  • “My thought was—I remember this very clearly—‘O.K. We have a four-or-five-day chance to really get our act together and get ahead of this. We’re gonna try to get ahead of this,’” Mr. Powell recalled later. “And we were going to do that by just announcing a ton of stuff on Monday morning.”
  • It worked. The Fed’s pledges to backstop an array of lending, announced on Monday, March 23, would unleash a torrent of private borrowing based on the mere promise of central bank action—together with a massive assist by Congress, which authorized hundreds of billions of dollars that would cover any losses.
  • If the hardest-hit companies like Carnival, with its fleet of 104 ships docked indefinitely, could raise money in capital markets, who couldn’t?
  • on April 9, where he shed an earlier reluctance to express an opinion about government spending policies, which are set by elected officials and not the Fed. He spoke in unusually moral terms. “All of us are affected,” he said. “But the burdens are falling most heavily on those least able to carry them…. They didn’t cause this. Their business isn’t closed because of anything they did wrong. This is what the great fiscal power of the United States is for—to protect these people as best we can from the hardships they are facing.”
  • They were extraordinary words from a Fed chair who during earlier, hot-button policy debates said the central bank needed to “stay in its lane” and avoid providing specific advice.
  • To avoid a widening rift between the market haves (who had been given access to Fed backstops) and the market have-nots (who had been left out because their debt was deemed too risky), Mr. Powell had supported a decision to extend the Fed’s lending to include companies that were being downgraded to “junk” status in the days after it agreed to backstop their bonds.
  • Most controversially, Mr. Powell recommended that the Fed purchase investment vehicles known as exchange-traded funds, or ETFs, that invest in junk debt. He and his colleagues feared that these “high-yield” bonds might buckle, creating a wave of bankruptcies that would cause long-term scarring in the economy.
  • Mr. Powell decided that it was better to err on the side of doing too much than not doing enough.
  • , Paul Singer, who runs the hedge-fund firm Elliott Management, warned that the Fed was sowing the seeds of a bigger crisis by absolving markets of any discipline. “Sadly, when people (including those who should know better) do something stupid and reckless and are not punished,” he wrote, “it is human nature that, far from thinking that they were lucky to have gotten away with something, they are encouraged to keep doing the stupid thing.”
  • The breathtaking speed with which the Fed moved and with which Wall Street rallied after the Fed’s announcements infuriated Dennis Kelleher, a former corporate lawyer and high-ranking Senate aide who runs Better Markets, an advocacy group lobbying for tighter financial regulations.
  • This is a ridiculous discussion no matter how heartfelt Powell is about ‘we can’t pick winners and losers’—to which my answer is, ‘So instead you just make them all winners?’”
  • “Literally, not only has no one in finance lost money, but they’ve all made more money than they could have dreamed,” said Mr. Kelleher. “It just can’t be the case that the only thing the Fed can do is open the fire hydrants wide for everybody
  • Mr. Powell later defended his decision to purchase ETFs that had invested in junk debt. “We wanted to find a surgical way to get in and support that market because it’s a huge market, and it’s a lot of people’s jobs… What were we supposed to do? Just let them die and lose all those jobs?” he said. “If that’s the biggest mistake we made, stipulating it as a mistake, I’m fine with that. It wasn’t time to be making finely crafted judgments,” Mr. Powell said. He hesitated for a moment before concluding. “Do I regret it? I don’t—not really.”
  • “We didn’t know there was a vaccine coming. The pandemic is just raging. And we don’t have a plan,” said Mr. Powell. “Nobody in the world has a plan. And in hindsight, the worry was, ‘What if we can’t really fully open the economy for a long time because the pandemic is just out there killing people?’”
  • Mr. Powell never saw this as a particularly likely outcome, “but it was around the edges of the conversation, and we were very eager to do everything we could to avoid that outcome,”
  • The Fed’s initial response in 2020 received mostly high marks—a notable contrast with the populist ire that greeted Wall Street bailouts following the 2008 financial crisis. North Carolina Rep. Patrick McHenry, the top Republican on the House Financial Services Committee, gave Mr. Powell an “A-plus for 2020,” he said. “On a one-to-10 scale? It was an 11. He gets the highest, highest marks, and deserves them. The Fed as an institution deserves them.”
  • The pandemic was the most severe disruption of the U.S. economy since the Great Depression. Economists, financial-market professionals and historians are only beginning to wrestle with the implications of the aggressive response by fiscal and monetary policy makers.
  • Altogether, Congress approved nearly $5.9 trillion in spending in 2020 and 2021. Adjusted for inflation, that compares with approximately $1.8 trillion in 2008 and 2009.
  • By late 2021, it was clear that many private-sector forecasters and economists at the Fed had misjudged both the speed of the recovery and the ways in which the crisis had upset the economy’s equilibrium. Washington soon faced a different problem. Disoriented supply chains and strong demand—boosted by government stimulus—had produced inflation running above 7%.
  • because the pandemic shock was akin to a natural disaster, it allowed Mr. Powell and the Fed to sidestep concerns about moral hazard—that is, the possibility that their policies would encourage people to take greater risks knowing that they were protected against larger losses. If a future crisis is caused instead by greed or carelessness, the Fed would have to take such concerns more seriously.
  • The high inflation that followed in 2021 might have been worse if the U.S. had seen more widespread bankruptcies or permanent job losses in the early months of the pandemic.
  • an additional burst of stimulus spending in 2021, as vaccines hastened the reopening of the economy, raised the risk that monetary and fiscal policy together would flood the economy with money and further fuel inflation.
  • The surge in federal borrowing since 2020 creates other risks. It is manageable for now but could become very expensive if the Fed has to lift interest rates aggressively to cool the economy and reduce high inflation.
  • The Congressional Budget Office forecast in December 2020 that if rates rose by just 0.1 percentage point more than projected in each year of the decade, debt-service costs in 2030 would rise by $235 billion—more than the Pentagon had requested to spend in 2022 on the Navy.
  • its low-rate policies have coincided with—and critics say it has contributed to—a longer-running widening of wealth inequality.
  • In 2008, household wealth fell by $8 trillion. It rose by $13.5 trillion in 2020, and in the process, spotlighted the unequal distribution of wealth-building assets such as houses and stocks.
  • Without heavy spending from Washington, focused on the needs of the least well-off, these disparities might have attracted more negative scrutiny.
  • Finally, the Fed is a technocratic body that can move quickly because it operates under few political constraints. Turning to it as the first line of defense in this and future crises could compromise its institutional independence.
  • Step one, he said, was to get in the fight and try to win. Figuring out how to exit would be a better problem to have, because it would mean they had succeeded.
  • “We have a recovery that looks completely unlike other recoveries that we’ve had because we’ve put so much support behind the recovery,” Mr. Powell said last month. “Was it too much? I’m going to leave that to the historians.”
  • The final verdict on the 2020 crisis response may turn on whether Mr. Powell is able to bring inflation under control without a painful recession—either as sharp price increases from 2021 reverse on their own accord, as officials initially anticipated, or because the Fed cools down the economy by raising interest rates.
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When the New York Times lost its way - 0 views

  • There are many reasons for Trump’s ascent, but changes in the American news media played a critical role. Trump’s manipulation and every one of his political lies became more powerful because journalists had forfeited what had always been most valuable about their work: their credibility as arbiters of truth and brokers of ideas, which for more than a century, despite all of journalism’s flaws and failures, had been a bulwark of how Americans govern themselves.
  • I think Sulzberger shares this analysis. In interviews and his own writings, including an essay earlier this year for the Columbia Journalism Review, he has defended “independent journalism”, or, as I understand him, fair-minded, truth-seeking journalism that aspires to be open and objective.
  • It’s good to hear the publisher speak up in defence of such values, some of which have fallen out of fashion not just with journalists at the Times and other mainstream publications but at some of the most prestigious schools of journalism.
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  • All the empathy and humility in the world will not mean much against the pressures of intolerance and tribalism without an invaluable quality that Sulzberger did not emphasise: courage.
  • Sulzberger seems to underestimate the struggle he is in, that all journalism and indeed America itself is in
  • In describing the essential qualities of independent journalism in his essay, he unspooled a list of admirable traits – empathy, humility, curiosity and so forth. These qualities have for generations been helpful in contending with the Times’s familiar problem, which is liberal bias
  • on their own, these qualities have no chance against the Times’s new, more dangerous problem, which is in crucial respects the opposite of the old one.
  • The Times’s problem has metastasised from liberal bias to illiberal bias, from an inclination to favour one side of the national debate to an impulse to shut debate down altogether
  • the internet knocked the industry off its foundations. Local newspapers were the proving ground between college campuses and national newsrooms. As they disintegrated, the national news media lost a source of seasoned reporters and many Americans lost a journalism whose truth they could verify with their own eyes.
  • far more than when I set out to become a journalist, doing the work right today demands a particular kind of courage:
  • the moral and intellectual courage to take the other side seriously and to report truths and ideas that your own side demonises for fear they will harm its cause.
  • One of the glories of embracing illiberalism is that, like Trump, you are always right about everything, and so you are justified in shouting disagreement down.
  • leaders of many workplaces and boardrooms across America find that it is so much easier to compromise than to confront – to give a little ground today in the belief you can ultimately bring people around
  • This is how reasonable Republican leaders lost control of their party to Trump and how liberal-minded college presidents lost control of their campuses. And it is why the leadership of the New York Times is losing control of its principles.
  • Over the decades the Times and other mainstream news organisations failed plenty of times to live up to their commitments to integrity and open-mindedness. The relentless struggle against biases and preconceptions, rather than the achievement of a superhuman objective omniscience, is what mattered
  • . I thought, and still think, that no American institution could have a better chance than the Times, by virtue of its principles, its history, its people and its hold on the attention of influential Americans, to lead the resistance to the corruption of political and intellectual life, to overcome the encroaching dogmatism and intolerance.
  • As the country became more polarised, the national media followed the money by serving partisan audiences the versions of reality they preferred
  • This relationship proved self-reinforcing. As Americans became freer to choose among alternative versions of reality, their polarisation intensified.
  • as the top editors let bias creep into certain areas of coverage, such as culture, lifestyle and business, that made the core harder to defend and undermined the authority of even the best reporters.
  • here have been signs the Times is trying to recover the courage of its convictions
  • The paper was slow to display much curiosity about the hard question of the proper medical protocols for trans children; but once it did, the editors defended their coverage against the inevitable criticism.
  • As Sulzberger told me in the past, returning to the old standards will require agonising change. He saw that as the gradual work of many years, but I think he is mistaken. To overcome the cultural and commercial pressures the Times faces, particularly given the severe test posed by another Trump candidacy and possible presidency, its publisher and senior editors will have to be bolder than that.
  • As a Democrat from a family of Democrats, a graduate of Yale and a blossom of the imagined meritocracy, I had my first real chance, at Buchanan’s rallies, to see the world through the eyes of stalwart opponents of abortion, immigration and the relentlessly rising tide of modernity.
  • the Times is failing to face up to one crucial reason: that it has lost faith in Americans, too.
  • For now, to assert that the Times plays by the same rules it always has is to commit a hypocrisy that is transparent to conservatives, dangerous to liberals and bad for the country as a whole.
  • It makes the Times too easy for conservatives to dismiss and too easy for progressives to believe.
  • The reality is that the Times is becoming the publication through which America’s progressive elite talks to itself about an America that does not really exist.
  • It is hard to imagine a path back to saner American politics that does not traverse a common ground of shared fact.
  • It is equally hard to imagine how America’s diversity can continue to be a source of strength, rather than become a fatal flaw, if Americans are afraid or unwilling to listen to each other.
  • I suppose it is also pretty grandiose to think you might help fix all that. But that hope, to me, is what makes journalism worth doing.
  • Since Adolph Ochs bought the paper in 1896, one of the most inspiring things the Times has said about itself is that it does its work “without fear or favour”. That is not true of the institution today – it cannot be, not when its journalists are afraid to trust readers with a mainstream conservative argument such as Cotton’s, and its leaders are afraid to say otherwise.
  • Most important, the Times, probably more than any other American institution, could influence the way society approached debate and engagement with opposing views. If Times Opinion demonstrated the same kind of intellectual courage and curiosity that my colleagues at the Atlantic had shown, I hoped, the rest of the media would follow.
  • You did not have to go along with everything that any tribe said. You did not have to pretend that the good guys, much as you might have respected them, were right about everything, or that the bad guys, much as you might have disdained them, never had a point. You did not, in other words, ever have to lie.
  • This fundamental honesty was vital for readers, because it equipped them to make better, more informed judgments about the world. Sometimes it might shock or upset them by failing to conform to their picture of reality. But it also granted them the respect of acknowledging that they were able to work things out for themselves.
  • The Atlantic did not aspire to the same role as the Times. It did not promise to serve up the news of the day without any bias. But it was to opinion journalism what the Times’s reporting was supposed to be to news: honest and open to the world.
  • Those were the glory days of the blog, and we hit on the idea of creating a living op-ed page, a collective of bloggers with different points of view but a shared intellectual honesty who would argue out the meaning of the news of the day
  • They were brilliant, gutsy writers, and their disagreements were deep enough that I used to joke that my main work as editor was to prevent fistfights.
  • Under its owner, David Bradley, my colleagues and I distilled our purpose as publishing big arguments about big ideas
  • we also began producing some of the most important work in American journalism: Nicholas Carr on whether Google was “making us stupid”; Hanna Rosin on “the end of men”; Taylor Branch on “the shame of college sports”; Ta-Nehisi Coates on “the case for reparations”; Greg Lukianoff and Jonathan Haidt on “the coddling of the American mind”.
  • I was starting to see some effects of the new campus politics within the Atlantic. A promising new editor had created a digital form for aspiring freelancers to fill out, and she wanted to ask them to disclose their racial and sexual identity. Why? Because, she said, if we were to write about the trans community, for example, we would ask a trans person to write the story
  • There was a good argument for that, I acknowledged, and it sometimes might be the right answer. But as I thought about the old people, auto workers and abortion opponents I had learned from, I told her there was also an argument for correspondents who brought an outsider’s ignorance, along with curiosity and empathy, to the story.
  • A journalism that starts out assuming it knows the answers, it seemed to me then, and seems even more so to me now, can be far less valuable to the reader than a journalism that starts out with a humbling awareness that it knows nothing.
  • In the age of the internet it is hard even for a child to sustain an “innocent eye”, but the alternative for journalists remains as dangerous as ever, to become propagandists. America has more than enough of those already.
  • When I looked around the Opinion department, change was not what I perceived. Excellent writers and editors were doing excellent work. But the department’s journalism was consumed with politics and foreign affairs in an era when readers were also fascinated by changes in technology, business, science and culture.
  • Fairly quickly, though, I realised two things: first, that if I did my job as I thought it should be done, and as the Sulzbergers said they wanted me to do it, I would be too polarising internally ever to lead the newsroom; second, that I did not want that job, though no one but my wife believed me when I said that.
  • there was a compensating moral and psychological privilege that came with aspiring to journalistic neutrality and open-mindedness, despised as they might understandably be by partisans. Unlike the duelling politicians and advocates of all kinds, unlike the corporate chieftains and their critics, unlike even the sainted non-profit workers, you did not have to pretend things were simpler than they actually were
  • On the right and left, America’s elites now talk within their tribes, and get angry or contemptuous on those occasions when they happen to overhear the other conclave. If they could be coaxed to agree what they were arguing about, and the rules by which they would argue about it, opinion journalism could serve a foundational need of the democracy by fostering diverse and inclusive debate. Who could be against that?
  • The large staff of op-ed editors contained only a couple of women. Although the 11 columnists were individually admirable, only two of them were women and only one was a person of colour
  • Not only did they all focus on politics and foreign affairs, but during the 2016 campaign, no columnist shared, in broad terms, the worldview of the ascendant progressives of the Democratic Party, incarnated by Bernie Sanders. And only two were conservative.
  • This last fact was of particular concern to the elder Sulzberger. He told me the Times needed more conservative voices, and that its own editorial line had become predictably left-wing. “Too many liberals,” read my notes about the Opinion line-up from a meeting I had with him and Mark Thompson, then the chief executive, as I was preparing to rejoin the paper. “Even conservatives are liberals’ idea of a conservative.” The last note I took from that meeting was: “Can’t ignore 150m conservative Americans.”
  • As I knew from my time at the Atlantic, this kind of structural transformation can be frightening and even infuriating for those understandably proud of things as they are. It is hard on everyone
  • experience at the Atlantic also taught me that pursuing new ways of doing journalism in pursuit of venerable institutional principles created enthusiasm for change. I expected that same dynamic to allay concerns at the Times.
  • If Opinion published a wider range of views, it would help frame a set of shared arguments that corresponded to, and drew upon, the set of shared facts coming from the newsroom.
  • New progressive voices were celebrated within the Times. But in contrast to the Wall Street Journal and the Washington Post, conservative voices – even eloquent anti-Trump conservative voices – were despised, regardless of how many leftists might surround them.
  • The Opinion department mocked the paper’s claim to value diversity. It did not have a single black editor
  • Eventually, it sank in that my snotty joke was actually on me: I was the one ignorantly fighting a battle that was already lost. The old liberal embrace of inclusive debate that reflected the country’s breadth of views had given way to a new intolerance for the opinions of roughly half of American voters.
  • Out of naivety or arrogance, I was slow to recognise that at the Times, unlike at the Atlantic, these values were no longer universally accepted, let alone esteemed
  • After the 9/11 attacks, as the bureau chief in Jerusalem, I spent a lot of time in the Gaza Strip interviewing Hamas leaders, recruiters and foot soldiers, trying to understand and describe their murderous ideology. Some readers complained that I was providing a platform for terrorists, but there was never any objection from within the Times.
  • Our role, we knew, was to help readers understand such threats, and this required empathetic – not sympathetic – reporting. This is not an easy distinction but good reporters make it: they learn to understand and communicate the sources and nature of a toxic ideology without justifying it, much less advocating it.
  • Today’s newsroom turns that moral logic on its head, at least when it comes to fellow Americans. Unlike the views of Hamas, the views of many Americans have come to seem dangerous to engage in the absence of explicit condemnation
  • Focusing on potential perpetrators – “platforming” them by explaining rather than judging their views – is believed to empower them to do more harm.
  • After the profile of the Ohio man was published, media Twitter lit up with attacks on the article as “normalising” Nazism and white nationalism, and the Times convulsed internally. The Times wound up publishing a cringing editor’s note that hung the writer out to dry and approvingly quoted some of the criticism, including a tweet from a Washington Post opinion editor asking, “Instead of long, glowing profiles of Nazis/White nationalists, why don’t we profile the victims of their ideologies”?
  • the Times lacked the confidence to defend its own work
  • The editor’s note paraded the principle of publishing such pieces, saying it was important to “shed more light, not less, on the most extreme corners of American life”. But less light is what the readers got. As a reporter in the newsroom, you’d have to have been an idiot after that explosion to attempt such a profile
  • Empathetic reporting about Trump supporters became even more rare. It became a cliché among influential left-wing columnists and editors that blinkered political reporters interviewed a few Trump supporters in diners and came away suckered into thinking there was something besides racism that could explain anyone’s support for the man.
  • After a year spent publishing editorials attacking Trump and his policies, I thought it would be a demonstration of Timesian open-mindedness to give his supporters their say. Also, I thought the letters were interesting, so I turned over the entire editorial page to the Trump letters.
  • I wasn’t surprised that we got some criticism on Twitter. But I was astonished by the fury of my Times colleagues. I found myself facing an angry internal town hall, trying to justify what to me was an obvious journalistic decision
  • Didn’t he think other Times readers should understand the sources of Trump’s support? Didn’t he also see it was a wonderful thing that some Trump supporters did not just dismiss the Times as fake news, but still believed in it enough to respond thoughtfully to an invitation to share their views?
  • And if the Times could not bear to publish the views of Americans who supported Trump, why should it be surprised that those voters would not trust it?
  • Two years later, in 2020, Baquet acknowledged that in 2016 the Times had failed to take seriously the idea that Trump could become president partly because it failed to send its reporters out into America to listen to voters and understand “the turmoil in the country”. And, he continued, the Times still did not understand the views of many Americans
  • Speaking four months before we published the Cotton op-ed, he said that to argue that the views of such voters should not appear in the Times was “not journalistic”.
  • Conservative arguments in the Opinion pages reliably started uproars within the Times. Sometimes I would hear directly from colleagues who had the grace to confront me with their concerns; more often they would take to the company’s Slack channels or Twitter to advertise their distress in front of each other
  • This environment of enforced group-think, inside and outside the paper, was hard even on liberal opinion writers. One left-of-centre columnist told me that he was reluctant to appear in the New York office for fear of being accosted by colleagues.
  • An internal survey shortly after I left the paper found that barely half the staff, within an enterprise ostensibly devoted to telling the truth, agreed “there is a free exchange of views in this company” and “people are not afraid to say what they really think”.)
  • Even columnists with impeccable leftist bona fides recoiled from tackling subjects when their point of view might depart from progressive orthodoxy.
  • The bias had become so pervasive, even in the senior editing ranks of the newsroom, as to be unconscious
  • Trying to be helpful, one of the top newsroom editors urged me to start attaching trigger warnings to pieces by conservatives. It had not occurred to him how this would stigmatise certain colleagues, or what it would say to the world about the Times’s own bias
  • By their nature, information bubbles are powerfully self-reinforcing, and I think many Times staff have little idea how closed their world has become, or how far they are from fulfilling their compact with readers to show the world “without fear or favour”
  • sometimes the bias was explicit: one newsroom editor told me that, because I was publishing more conservatives, he felt he needed to push his own department further to the left.
  • The Times’s failure to honour its own stated principles of openness to a range of views was particularly hard on the handful of conservative writers, some of whom would complain about being flyspecked and abused by colleagues. One day when I relayed a conservative’s concern about double standards to Sulzberger, he lost his patience. He told me to inform the complaining conservative that that’s just how it was: there was a double standard and he should get used to it.
  • A publication that promises its readers to stand apart from politics should not have different standards for different writers based on their politics. But I delivered the message. There are many things I regret about my tenure as editorial-page editor. That is the only act of which I am ashamed.
  • I began to think of myself not as a benighted veteran on a remote island, but as Rip Van Winkle. I had left one newspaper, had a pleasant dream for ten years, and returned to a place I barely recognised.
  • The new New York Times was the product of two shocks – sudden collapse, and then sudden success. The paper almost went bankrupt during the financial crisis, and the ensuing panic provoked a crisis of confidence among its leaders. Digital competitors like the HuffPost were gaining readers and winning plaudits within the media industry as innovative. They were the cool kids; Times folk were ink-stained wrinklies.
  • In its panic, the Times bought out experienced reporters and editors and began hiring journalists from publications like the HuffPost who were considered “digital natives” because they had never worked in print. This hiring quickly became easier, since most digital publications financed by venture capital turned out to be bad businesses
  • Though they might have lacked deep or varied reporting backgrounds, some of the Times’s new hires brought skills in video and audio; others were practised at marketing themselves – building their brands, as journalists now put it – in social media. Some were brilliant and fiercely honest, in keeping with the old aspirations of the paper.
  • critically, the Times abandoned its practice of acculturation, including those months-long assignments on Metro covering cops and crime or housing. Many new hires who never spent time in the streets went straight into senior writing and editing roles.
  • All these recruits arrived with their own notions of the purpose of the Times. To me, publishing conservatives helped fulfil the paper’s mission; to them, I think, it betrayed that mission.
  • then, to the shock and horror of the newsroom, Trump won the presidency. In his article for Columbia Journalism Review, Sulzberger cites the Times’s failure to take Trump’s chances seriously as an example of how “prematurely shutting down inquiry and debate” can allow “conventional wisdom to ossify in a way that blinds society.
  • Many Times staff members – scared, angry – assumed the Times was supposed to help lead the resistance. Anxious for growth, the Times’s marketing team implicitly endorsed that idea, too.
  • As the number of subscribers ballooned, the marketing department tracked their expectations, and came to a nuanced conclusion. More than 95% of Times subscribers described themselves as Democrats or independents, and a vast majority of them believed the Times was also liberal
  • A similar majority applauded that bias; it had become “a selling point”, reported one internal marketing memo. Yet at the same time, the marketers concluded, subscribers wanted to believe that the Times was independent.
  • As that memo argued, even if the Times was seen as politically to the left, it was critical to its brand also to be seen as broadening its readers’ horizons, and that required “a perception of independence”.
  • Readers could cancel their subscriptions if the Times challenged their worldview by reporting the truth without regard to politics. As a result, the Times’s long-term civic value was coming into conflict with the paper’s short-term shareholder value
  • The Times has every right to pursue the commercial strategy that makes it the most money. But leaning into a partisan audience creates a powerful dynamic. Nobody warned the new subscribers to the Times that it might disappoint them by reporting truths that conflicted with their expectations
  • When your product is “independent journalism”, that commercial strategy is tricky, because too much independence might alienate your audience, while too little can lead to charges of hypocrisy that strike at the heart of the brand.
  • It became one of Dean Baquet’s frequent mordant jokes that he missed the old advertising-based business model, because, compared with subscribers, advertisers felt so much less sense of ownership over the journalism
  • The Times was slow to break it to its readers that there was less to Trump’s ties to Russia than they were hoping, and more to Hunter Biden’s laptop, that Trump might be right that covid came from a Chinese lab, that masks were not always effective against the virus, that shutting down schools for many months was a bad idea.
  • there has been a sea change over the past ten years in how journalists think about pursuing justice. The reporters’ creed used to have its foundation in liberalism, in the classic philosophical sense. The exercise of a reporter’s curiosity and empathy, given scope by the constitutional protections of free speech, would equip readers with the best information to form their own judgments. The best ideas and arguments would win out
  • The journalist’s role was to be a sworn witness; the readers’ role was to be judge and jury. In its idealised form, journalism was lonely, prickly, unpopular work, because it was only through unrelenting scepticism and questioning that society could advance. If everyone the reporter knew thought X, the reporter’s role was to ask: why X?
  • Illiberal journalists have a different philosophy, and they have their reasons for it. They are more concerned with group rights than individual rights, which they regard as a bulwark for the privileges of white men. They have seen the principle of  free speech used to protect right-wing outfits like Project Veritas and Breitbart News and are uneasy with it.
  • They had their suspicions of their fellow citizens’ judgment confirmed by Trump’s election, and do not believe readers can be trusted with potentially dangerous ideas or facts. They are not out to achieve social justice as the knock-on effect of pursuing truth; they want to pursue it head-on
  • The term “objectivity” to them is code for ignoring the poor and weak and cosying up to power, as journalists often have done.
  • And they do not just want to be part of the cool crowd. They need to be
  • To be more valued by their peers and their contacts – and hold sway over their bosses – they need a lot of followers in social media. That means they must be seen to applaud the right sentiments of the right people in social media
  • The journalist from central casting used to be a loner, contrarian or a misfit. Now journalism is becoming another job for joiners, or, to borrow Twitter’s own parlance, “followers”, a term that mocks the essence of a journalist’s role.
  • The new newsroom ideology seems idealistic, yet it has grown from cynical roots in academia: from the idea that there is no such thing as objective truth; that there is only narrative, and that therefore whoever controls the narrative – whoever gets to tell the version of the story that the public hears – has the whip hand
  • What matters, in other words, is not truth and ideas in themselves, but the power to determine both in the public mind.
  • By contrast, the old newsroom ideology seems cynical on its surface. It used to bug me that my editors at the Times assumed every word out of the mouth of any person in power was a lie.
  • And the pursuit of objectivity can seem reptilian, even nihilistic, in its abjuration of a fixed position in moral contests. But the basis of that old newsroom approach was idealistic: the notion that power ultimately lies in truth and ideas, and that the citizens of a pluralistic democracy, not leaders of any sort, must be trusted to judge both.
  • Our role in Times Opinion, I used to urge my colleagues, was not to tell people what to think, but to help them fulfil their desire to think for themselves.
  • It seems to me that putting the pursuit of truth, rather than of justice, at the top of a publication’s hierarchy of values also better serves not just truth but justice, too
  • over the long term journalism that is not also sceptical of the advocates of any form of justice and the programmes they put forward, and that does not struggle honestly to understand and explain the sources of resistance,
  • will not assure that those programmes will work, and it also has no legitimate claim to the trust of reasonable people who see the world very differently. Rather than advance understanding and durable change, it provokes backlash.
  • The impatience within the newsroom with such old ways was intensified by the generational failure of the Times to hire and promote women and non-white people
  • Pay attention if you are white at the Times and you will hear black editors speak of hiring consultants at their own expense to figure out how to get white staff to respect them
  • As wave after wave of pain and outrage swept through the Times, over a headline that was not damning enough of Trump or someone’s obnoxious tweets, I came to think of the people who were fragile, the ones who were caught up in Slack or Twitter storms, as people who had only recently discovered that they were white and were still getting over the shock.
  • Having concluded they had got ahead by working hard, it has been a revelation to them that their skin colour was not just part of the wallpaper of American life, but a source of power, protection and advancement.
  • I share the bewilderment that so many people could back Trump, given the things he says and does, and that makes me want to understand why they do: the breadth and diversity of his support suggests not just racism is at work. Yet these elite, well-meaning Times staff cannot seem to stretch the empathy they are learning to extend to people with a different skin colour to include those, of whatever race, who have different politics.
  • The digital natives were nevertheless valuable, not only for their skills but also because they were excited for the Times to embrace its future. That made them important allies of the editorial and business leaders as they sought to shift the Times to digital journalism and to replace staff steeped in the ways of print. Partly for that reason, and partly out of fear, the leadership indulged internal attacks on Times journalism, despite pleas from me and others, to them and the company as a whole, that Times folk should treat each other with more respect
  • My colleagues and I in Opinion came in for a lot of the scorn, but we were not alone. Correspondents in the Washington bureau and political reporters would take a beating, too, when they were seen as committing sins like “false balance” because of the nuance in their stories.
  • My fellow editorial and commercial leaders were well aware of how the culture of the institution had changed. As delighted as they were by the Times’s digital transformation they were not blind to the ideological change that came with it. They were unhappy with the bullying and group-think; we often discussed such cultural problems in the weekly meetings of the executive committee, composed of the top editorial and business leaders, including the publisher. Inevitably, these bitch sessions would end with someone saying a version of: “Well, at some point we have to tell them this is what we believe in as a newspaper, and if they don’t like it they should work somewhere else.” It took me a couple of years to realise that this moment was never going to come.
  • There is a lot not to miss about the days when editors like Boyd could strike terror in young reporters like me and Purdum. But the pendulum has swung so far in the other direction that editors now tremble before their reporters and even their interns. “I miss the old climate of fear,” Baquet used to say with a smile, in another of his barbed jokes.
  • I wish I’d pursued my point and talked myself out of the job. This contest over control of opinion journalism within the Times was not just a bureaucratic turf battle (though it was that, too)
  • The newsroom’s embrace of opinion journalism has compromised the Times’s independence, misled its readers and fostered a culture of intolerance and conformity.
  • The Opinion department is a relic of the era when the Times enforced a line between news and opinion journalism.
  • Editors in the newsroom did not touch opinionated copy, lest they be contaminated by it, and opinion journalists and editors kept largely to their own, distant floor within the Times building. Such fastidiousness could seem excessive, but it enforced an ethos that Times reporters owed their readers an unceasing struggle against bias in the news
  • But by the time I returned as editorial-page editor, more opinion columnists and critics were writing for the newsroom than for Opinion. As at the cable news networks, the boundaries between commentary and news were disappearing, and readers had little reason to trust that Times journalists were resisting rather than indulging their biases
  • The Times newsroom had added more cultural critics, and, as Baquet noted, they were free to opine about politics.
  • Departments across the Times newsroom had also begun appointing their own “columnists”, without stipulating any rules that might distinguish them from columnists in Opinion
  • I checked to see if, since I left the Times, it had developed guidelines explaining the difference, if any, between a news columnist and opinion columnist. The paper’s spokeswoman, Danielle Rhoades Ha, did not respond to the question.)
  • The internet rewards opinionated work and, as news editors felt increasing pressure to generate page views, they began not just hiring more opinion writers but also running their own versions of opinionated essays by outside voices – historically, the province of Opinion’s op-ed department.
  • Yet because the paper continued to honour the letter of its old principles, none of this work could be labelled “opinion” (it still isn’t). After all, it did not come from the Opinion department.
  • And so a newsroom technology columnist might call for, say, unionisation of the Silicon Valley workforce, as one did, or an outside writer might argue in the business section for reparations for slavery, as one did, and to the average reader their work would appear indistinguishable from Times news articles.
  • By similarly circular logic, the newsroom’s opinion journalism breaks another of the Times’s commitments to its readers. Because the newsroom officially does not do opinion – even though it openly hires and publishes opinion journalists – it feels free to ignore Opinion’s mandate to provide a diversity of views
  • When I was editorial-page editor, there were a couple of newsroom columnists whose politics were not obvious. But the other newsroom columnists, and the critics, read as passionate progressives.
  • I urged Baquet several times to add a conservative to the newsroom roster of cultural critics. That would serve the readers by diversifying the Times’s analysis of culture, where the paper’s left-wing bias had become most blatant, and it would show that the newsroom also believed in restoring the Times’s commitment to taking conservatives seriously. He said this was a good idea, but he never acted on it
  • I couldn’t help trying the idea out on one of the paper’s top cultural editors, too: he told me he did not think Times readers would be interested in that point of view.
  • opinion was spreading through the newsroom in other ways. News desks were urging reporters to write in the first person and to use more “voice”, but few newsroom editors had experience in handling that kind of journalism, and no one seemed certain where “voice” stopped and “opinion” began
  • The Times magazine, meanwhile, became a crusading progressive publication
  • Baquet liked to say the magazine was Switzerland, by which he meant that it sat between the newsroom and Opinion. But it reported only to the news side. Its work was not labelled as opinion and it was free to omit conservative viewpoints.
  • his creep of politics into the newsroom’s journalism helped the Times beat back some of its new challengers, at least those on the left
  • Competitors like Vox and the HuffPost were blending leftish politics with reporting and writing it up conversationally in the first person. Imitating their approach, along with hiring some of their staff, helped the Times repel them. But it came at a cost. The rise of opinion journalism over the past 15 years changed the newsroom’s coverage and its culture
  • The tiny redoubt of never-Trump conservatives in Opinion is swamped daily not only by the many progressives in that department but their reinforcements among the critics, columnists and magazine writers in the newsroom
  • They are generally excellent, but their homogeneity means Times readers are being served a very restricted range of views, some of them presented as straight news by a publication that still holds itself out as independent of any politics.
  • And because the critics, newsroom columnists and magazine writers are the newsroom’s most celebrated journalists, they have disproportionate influence over the paper’s culture.
  • By saying that it still holds itself to the old standard of strictly separating its news and opinion journalists, the paper leads its readers further into the trap of thinking that what they are reading is independent and impartial – and this misleads them about their country’s centre of political and cultural gravity.
  • And yet the Times insists to the public that nothing has changed.
  • “Even though each day’s opinion pieces are typically among our most popular journalism and our columnists are among our most trusted voices, we believe opinion is secondary to our primary mission of reporting and should represent only a portion of a healthy news diet,” Sulzberger wrote in the Columbia Journalism Review. “For that reason, we’ve long kept the Opinion department intentionally small – it represents well under a tenth of our journalistic staff – and ensured that its editorial decision-making is walled off from the newsroom.”
  • When I was editorial-page editor, Sulzberger, who declined to be interviewed on the record for this article, worried a great deal about the breakdown in the boundaries between news and opinion
  • He told me once that he would like to restructure the paper to have one editor oversee all its news reporters, another all its opinion journalists and a third all its service journalists, the ones who supply guidance on buying gizmos or travelling abroad. Each of these editors would report to him
  • That is the kind of action the Times needs to take now to confront its hypocrisy and begin restoring its independence.
  • The Times could learn something from the Wall Street Journal, which has kept its journalistic poise
  • It has maintained a stricter separation between its news and opinion journalism, including its cultural criticism, and that has protected the integrity of its work.
  • After I was chased out of the Times, Journal reporters and other staff attempted a similar assault on their opinion department. Some 280 of them signed a letter listing pieces they found offensive and demanding changes in how their opinion colleagues approached their work. “Their anxieties aren’t our responsibility,” shrugged the Journal’s editorial board in a note to readers after the letter was leaked. “The signers report to the news editors or other parts of the business.” The editorial added, in case anyone missed the point, “We are not the New York Times.” That was the end of it.
  • Unlike the publishers of the Journal, however, Sulzberger is in a bind, or at least perceives himself to be
  • The confusion within the Times over its role, and the rising tide of intolerance among the reporters, the engineers, the business staff, even the subscribers – these are all problems he inherited, in more ways than one. He seems to feel constrained in confronting the paper’s illiberalism by the very source of his authority
  • The paradox is that in previous generations the Sulzbergers’ control was the bulwark of the paper’s independence.
  • if he is going to instil the principles he believes in, he needs to stop worrying so much about his powers of persuasion, and start using the power he is so lucky to have.
  • Shortly after we published the op-ed that Wednesday afternoon, some reporters tweeted their opposition to Cotton’s argument. But the real action was in the Times’s Slack channels, where reporters and other staff began not just venting but organising. They turned to the union to draw up a workplace complaint about the op-ed.
  • The next day, this reporter shared the byline on the Times story about the op-ed. That article did not mention that Cotton had distinguished between “peaceful, law-abiding protesters” and “rioters and looters”. In fact, the first sentence reported that Cotton had called for “the military to suppress protests against police violence”.
  • This was – and is – wrong. You don’t have to take my word for that. You can take the Times’s
  • Three days later in its article on my resignation it also initially reported that Cotton had called “for military force against protesters in American cities”. This time, after the article was published on the Times website, the editors scrambled to rewrite it, replacing “military force” with “military response” and “protesters” with “civic unrest”
  • That was a weaselly adjustment – Cotton wrote about criminality, not “unrest” – but the article at least no longer unambiguously misrepresented Cotton’s argument to make it seem he was in favour of crushing democratic protest. The Times did not publish a correction or any note acknowledging the story had been changed.
  • Seeking to influence the outcome of a story you cover, particularly without disclosing that to the reader, violates basic principles I was raised on at the Times
  • s Rhoades Ha disputes my characterisation of the after-the-fact editing of the story about my resignation. She said the editors changed the story after it was published on the website in order to “refine” it and “add context”, and so the story did not merit a correction disclosing to the reader that changes had been made.
  • In retrospect what seems almost comical is that as the conflict over Cotton’s op-ed unfolded within the Times I acted as though it was on the level, as though the staff of the Times would have a good-faith debate about Cotton’s piece and the decision to publish it
  • Instead, people wanted to vent and achieve what they considered to be justice, whether through Twitter, Slack, the union or the news pages themselves
  • My colleagues in Opinion, together with the PR team, put together a series of connected tweets describing the purpose behind publishing Cotton’s op-ed. Rather than publish these tweets from the generic Times Opinion Twitter account, Sulzberger encouraged me to do it from my personal one, on the theory that this would humanise our defence. I doubted that would make any difference, but it was certainly my job to take responsibility. So I sent out the tweets, sticking my head in a Twitter bucket that clangs, occasionally, to this day
  • What is worth recalling now from the bedlam of the next two days? I suppose there might be lessons for someone interested in how not to manage a corporate crisis. I began making my own mistakes that Thursday. The union condemned our publication of Cotton, for supposedly putting journalists in danger, claiming that he had called on the military “to ‘detain’ and ‘subdue’ Americans protesting racism and police brutality” – again, a misrepresentation of his argument. The publisher called to tell me the company was experiencing its largest sick day in history; people were turning down job offers because of the op-ed, and, he said, some people were quitting. He had been expecting for some time that the union would seek a voice in editorial decision-making; he said he thought this was the moment the union was making its move. He had clearly changed his own mind about the value of publishing the Cotton op-ed.
  • I asked Dao to have our fact-checkers review the union’s claims. But then I went a step further: at the publisher’s request, I urged him to review the editing of the piece itself and come back to me with a list of steps we could have taken to make it better. Dao’s reflex – the correct one – was to defend the piece as published. He and three other editors of varying ages, genders and races had helped edit it; it had been fact-checked, as is all our work
  • This was my last failed attempt to have the debate within the Times that I had been seeking for four years, about why it was important to present Times readers with arguments like Cotton’s. The staff at the paper never wanted to have that debate. The Cotton uproar was the most extreme version of the internal reaction we faced whenever we published conservative arguments that were not simply anti-Trump. Yes, yes, of course we believe in the principle of publishing diverse views, my Times colleagues would say, but why this conservative? Why this argument?
  • I doubt these changes would have mattered, and to extract this list from Dao was to engage in precisely the hypocrisy I claimed to despise – that, in fact, I do despise. If Cotton needed to be held to such standards of politesse, so did everyone else. Headlines such as “Tom Cotton’s Fascist Op-ed”, the headline of a subsequent piece, should also have been tranquillised.
  • As that miserable Thursday wore on, Sulzberger, Baquet and I held a series of Zoom meetings with reporters and editors from the newsroom who wanted to discuss the op-ed. Though a handful of the participants were there to posture, these were generally constructive conversations. A couple of people, including Baquet, even had the guts to speak up in favour of publishing the op-ed
  • Two moments stick out. At one point, in answer to a question, Sulzberger and Baquet both said they thought the op-ed – as the Times union and many journalists were saying – had in fact put journalists in danger. That was the first time I realised I might be coming to the end of the road.
  • The other was when a pop-culture reporter asked if I had read the op-ed before it was published. I said I had not. He immediately put his head down and started typing, and I should have paid attention rather than moving on to the next question. He was evidently sharing the news with the company over Slack.
  • Every job review I had at the Times urged me to step back from the daily coverage to focus on the long term. (Hilariously, one review, urging me to move faster in upending the Opinion department, instructed me to take risks and “ask for forgiveness not permission”.)
  • I learned when these meetings were over that there had been a new eruption in Slack. Times staff were saying that Rubenstein had been the sole editor of the op-ed. In response, Dao had gone into Slack to clarify to the entire company that he had also edited it himself. But when the Times posted the news article that evening, it reported, “The Op-Ed was edited by Adam Rubenstein” and made no mention of Dao’s statement
  • Early that morning, I got an email from Sam Dolnick, a Sulzberger cousin and a top editor at the paper, who said he felt “we” – he could have only meant me – owed the whole staff “an apology for appearing to place an abstract idea like open debate over the value of our colleagues’ lives, and their safety”. He was worried that I and my colleagues had unintentionally sent a message to other people at the Times that: “We don’t care about their full humanity and their security as much as we care about our ideas.”
  • “I know you don’t like it when I talk about principles at a moment like this,” I began. But I viewed the journalism I had been doing, at the Times and before that at the Atlantic, in very different terms from the ones Dolnick presumed. “I don’t think of our work as an abstraction without meaning for people’s lives – quite the opposite,” I continued. “The whole point – the reason I do this – is to have an impact on their lives to the good. I have always believed that putting ideas, including potentially dangerous one[s], out in the public is vital to ensuring they are debated and, if dangerous, discarded.” It was, I argued, in “edge cases like this that principles are tested”, and if my position was judged wrong then “I am out of step with the times.” But, I concluded, “I don’t think of us as some kind of debating society without implications for the real world and I’ve never been unmindful of my colleagues’ humanity.”
  • in the end, one thing he and I surely agree on is that I was, in fact, out of step with the Times. It may have raised me as a journalist – and invested so much in educating me to what were once its standards – but I did not belong there any more.
  • Finally, I came up with something that felt true. I told the meeting that I was sorry for the pain that my leadership of Opinion had caused. What a pathetic thing to say. I did not think to add, because I’d lost track of this truth myself by then, that opinion journalism that never causes pain is not journalism. It can’t hope to move society forward
  • As I look back at my notes of that awful day, I don’t regret what I said. Even during that meeting, I was still hoping the blow-up might at last give me the chance either to win support for what I had been asked to do, or to clarify once and for all that the rules for journalism had changed at the Times.
  • But no one wanted to talk about that. Nor did they want to hear about all the voices of vulnerable or underprivileged people we had been showcasing in Opinion, or the ambitious new journalism we were doing. Instead, my Times colleagues demanded to know things such as the names of every editor who had had a role in the Cotton piece. Having seen what happened to Rubenstein I refused to tell them. A Slack channel had been set up to solicit feedback in real time during the meeting, and it was filling with hate. The meeting ran long, and finally came to a close after 90 minutes.
  • I tried to insist, as did Dao, that the note make clear the Cotton piece was within our editorial bounds. Sulzberger said he felt the Times could afford to be “silent” on that question. In the end the note went far further in repudiating the piece than I anticipated, saying it should never have been published at all. The next morning I was told to resign.
  • It was a terrible moment for the country. By the traditional – and perverse – logic of journalism, that should also have made it an inspiring time to be a reporter, writer or editor. Journalists are supposed to run towards scenes that others are fleeing, towards hard truths others need to know, towards consequential ideas they would prefer to ignore.
  • But fear got all mixed up with anger inside the Times, too, along with a desire to act locally in solidarity with the national movement. That energy found a focus in the Cotton op-ed
  • the Times is not good at acknowledging mistakes. Indeed, one of my own, within the Times culture, was to take responsibility for any mistakes my department made, and even some it didn’t
  • To Sulzberger, the meltdown over Cotton’s op-ed and my departure in disgrace are explained and justified by a failure of editorial “process”. As he put it in an interview with the New Yorker this summer, after publishing his piece in the Columbia Journalism Review, Cotton’s piece was not “perfectly fact-checked” and the editors had not “thought about the headline and presentation”. He contrasted the execution of Cotton’s opinion piece with that of a months-long investigation the newsroom did of Donald Trump’s taxes (which was not “perfectly fact-checked”, as it happens – it required a correction). He did not explain why, if the Times was an independent publication, an op-ed making a mainstream conservative argument should have to meet such different standards from an op-ed making any other kind of argument, such as for the abolition of the police
  • “It’s not enough just to have the principle and wave it around,” he said. “You also have to execute on it.”
  • To me, extolling the virtue of independent journalism in the pages of the Columbia Journalism Review is how you wave a principle around. Publishing a piece like Cotton’s is how you execute on it.
  • As Sulzberger also wrote in the Review, “Independent journalism, especially in a pluralistic democracy, should err on the side of treating areas of serious political contest as open, unsettled, and in need of further inquiry.
  • If Sulzberger must insist on comparing the execution of the Cotton op-ed with that of the most ambitious of newsroom projects, let him compare it with something really important, the 1619 Project, which commemorated the 400th anniversary of the arrival of enslaved Africans in Virginia.
  • Like Cotton’s piece, the 1619 Project was fact-checked and copy-edited (most of the Times newsroom does not fact-check or copy-edit articles, but the magazine does). But it nevertheless contained mistakes, as journalism often does. Some of these mistakes ignited a firestorm among historians and other readers.
  • And, like Cotton’s piece, the 1619 Project was presented in a way the Times later judged to be too provocative.
  • The Times declared that the 1619 Project “aims to reframe the country’s history, understanding 1619 as our true founding”. That bold statement – a declaration of Times fact, not opinion, since it came from the newsroom – outraged many Americans who venerated 1776 as the founding. The Times later stealthily erased it from the digital version of the project, but was caught doing so by a writer for the publication Quillette. Sulzberger told me during the initial uproar that the top editors in the newsroom – not just Baquet but his deputy – had not reviewed the audacious statement of purpose, one of the biggest editorial claims the paper has ever made. They also, of course, did not edit all the pieces themselves, trusting the magazine’s editors to do that work.
  • If the 1619 Project and the Cotton op-ed shared the same supposed flaws and excited similar outrage, how come that one is lauded as a landmark success and the other is a sackable offence?
  • I am comparing them only to meet Sulzberger on his terms, in order to illuminate what he is trying to elide. What distinguished the Cotton piece was not an error, or strong language, or that I didn’t edit it personally. What distinguished that op-ed was not process. It was politics.
  • It is one thing for the Times to aggravate historians, or conservatives, or even old-school liberals who believe in open debate. It has become quite another for the Times to challenge some members of its own staff with ideas that might contradict their view of the world.
  • The lessons of the incident are not about how to write a headline but about how much the Times has changed – how digital technology, the paper’s new business model and the rise of new ideals among its staff have altered its understanding of the boundary between news and opinion, and of the relationship between truth and justice
  • Ejecting me was one way to avoid confronting the question of which values the Times is committed to. Waving around the word “process” is another.
  • As he asserts the independence of Times journalism, Sulzberger is finding it necessary to reach back several years to another piece I chose to run, for proof that the Times remains willing to publish views that might offend its staff. “We’ve published a column by the head of the part of the Taliban that kidnapped one of our own journalists,” he told the New Yorker. He is missing the real lesson of that piece, as well.
  • The case against that piece is that Haqqani, who remains on the FBI’s most-wanted terrorist list, may have killed Americans. It’s puzzling: in what moral universe can it be a point of pride to publish a piece by an enemy who may have American blood on his hands, and a matter of shame to publish a piece by an American senator arguing for American troops to protect Americans?
  • As Mitch McConnell, then the majority leader, said on the Senate floor about the Times’s panic over the Cotton op-ed, listing some other debatable op-ed choices, “Vladimir Putin? No problem. Iranian propaganda? Sure. But nothing, nothing could have prepared them for 800 words from the junior senator from Arkansas.”
  • The Times’s staff members are not often troubled by obnoxious views when they are held by foreigners. This is an important reason the paper’s foreign coverage, at least of some regions, remains exceptional.
  • What seems most important and least understood about that episode is that it demonstrated in real time the value of the ideals that I poorly defended in the moment, ideals that not just the Times’s staff but many other college-educated Americans are abandoning.
  • After all, we ran the experiment; we published the piece. Was any Times journalist hurt? No. Nobody in the country was. In fact, though it is impossible to know the op-ed’s precise effect, polling showed that support for a military option dropped after the Times published the essay, as the Washington Post’s media critic, Erik Wemple, has written
  • If anything, in other words, publishing the piece stimulated debate that made it less likely Cotton’s position would prevail. The liberal, journalistic principle of open debate was vindicated in the very moment the Times was fleeing from it.
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Opinion | Republicans, Don't Ignore the Evidence on 'Labor Shortages' - The New York Times - 0 views

  • Talk of labor shortages is everywhere. That is to say, many economic commentators and policymakers have been bemoaning the supposedly alarming reports of a lack of workers to fill the jobs vital to the ongoing economic recovery. But there is always a chorus of employers complaining they can’t find the workers they need. We have to look beyond anecdotal reports to fully understand the data.
  • As we sift through the latest jobs report, which showed the economy gained 559,000 jobs in May, three key findings rise to the surface.
  • This is also true today. Wage growth decelerated in May in most sectors. And in the vast majority of sectors, wages are growing solidly but not fast enough to raise concern about damaging labor shortages, given that job growth is also strong. Further, we still have 7.6 million fewer jobs than we did before Covid and there are large employment gaps in virtually all industries and demographic groups
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  • Nevertheless, many commentators have ignored this evidence. They conclude not only that there are widespread shortages, but that the culprit is pandemic unemployment insurance benefits. Governors in 25 Republican-led states have now said they will no longer accept federal unemployment benefits. This will cut aid to nearly four million impacted workers, despite the absence of compelling evidence that jobless benefits are causing problems in the labor market. Instead, we have considerable evidence that it is helpful.
  • But employers of low-wage workers typically have a great deal of power to suppress wages. Out of desperation, these workers often have no choice but to take any job no matter how bad the wages, unsafe the labor, or chaotic the schedule as they try to cobble together child care or elder care. Unemployment insurance isn’t keeping people out of the labor market en masse right now. But, when expanded benefits mean some individuals don’t feel the same pressure to accept a terrible job, that is what economists would call efficiency enhancing.
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Opinion | The Meaning of an Awesome Employment Report - The New York Times - 0 views

  • Americans, they said, just don’t want to work. Socialism has made them lazy. They’d rather play video games. They don’t have the skills required by a 21st-century economy. High unemployment is “structural” and can’t be solved with monetary and fiscal stimulus.
  • none of them were true
  • the speed and extent of America’s recovery from the pandemic shock have been incredible.
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  • After the 2008 financial crisis, it took 12 years for employment rates to get back to pre-crisis levels. But only three years after Covid struck, employment is fully back for almost every age and demographic group.
  • At this point the employed percentage of adults is at or above early 2020 levels for every age group except those 70 or older.
  • The overall unemployment rate is only 3.5 percent; we haven’t had that spirit here since 1969. Black unemployment is at a record low. There’s good news everywhere you look.
  • So whaddya know: Provide enough job opportunities, and lazy video-game-playing Americans will take those jobs and, apparently, demonstrate enough skill that employers want to keep them.
  • Full employment also turns out to be a powerful force for equality, on multiple dimensions. The gap between Black and white unemployment is now a fifth of what it was when Ronald Reagan proclaimed “morning in America.” A tight labor market has led to big gains for low-wage workers, sharply reducing overall wage inequality.
  • The big question now is whether the good news on jobs is somehow a mirage, based on an unsustainably hot labor market that will have to cool off drastically to contain inflation.
  • what does the current data say? To some extent the answer is, whatever you want to hear.
  • maybe the important point is that almost every measure of inflationary pressure I’m aware of has improved substantially over the past year, with no increase in the unemployment rate
  • there’s good reason to believe that we can sustain the incredibly good job market we have right now, even while getting inflation under control. And it will be a real tragedy if exaggerated fear of inflation causes the Federal Reserve to push interest rates too high for too long, leading to a gratuitous recession that throws away many of the gains we’ve made.
  • Republicans keep insisting President Biden’s policies have been an economic disaster, and that even the mainstream news media has tended to emphasize inflation — which has been a nasty shock, even though it may be subsiding — rather than job gains.
  • So it does seem worth pointing out that at this point Biden is presiding over the best job market America has seen in a generation — specifically since the boom of the late Clinton years. And that, as Biden himself might (almost) say, is a big something deal.
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FACT CHECK: President Trump's Record On Jobs And Stocks : NPR - 0 views

  • It's difficult to tie those gains directly to President Trump's economic vision, however. On average, employers have added 170,000 jobs in each of the 10 months since Trump took office. That's slightly below the 196,000 per month pace during the comparable period in 2016, under President Obama. If you throw out September of this year, when job gains were depressed by hurricanes, Trump's monthly average is closer to Obama's, at 185,000, but the change in administrations doesn't appear to have had much effect on the overall job market.
  • Factories nationwide have added 171,000 jobs so far in 2017 — a rebound from the previous year when factories shed 16,000 jobs. Trump has promised to lead a renaissance in American manufacturing. The sector has generally been adding jobs since 2010, although the strength of export-oriented factories is strongly tied to what's happening in the global economy.
  • According to the Labor Department, there are 95 million Americans 16 and older who are not working. But that figure includes retirees, students and voluntary stay-at-home parents. It's an open question how many might be lured into the workforce. Lower taxes might offer a carrot to would-be workers. The administration is also considering sticks — in the form of a less generous safety net.
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  • The S&P 500-stock index has risen more than 23 percent since Election Day last year. Along with a rising real estate market, that's helped to push the nation's total household wealth to $96.9 trillion. However, as NPR noted last spring, only about half the people in the country own stocks either directly or through retirement accounts.
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Immigration powered the economy, job market amid border negotiations - The Washington Post - 0 views

  • There isn’t much data on how many of the new immigrants in recent years were documented versus undocumented. But estimates from the Pew Research Center last fall showed that undocumented immigrants made up 22 percent of the total foreign-born U.S. population in 2021. That’s down compared to previous decades: Between 2007 and 2021, the undocumented population fell by 14 percent, Pew found. Meanwhile, the legal immigrant population grew by 29 percent.
  • immigrant workers are supporting tremendously — and likely will keep powering for years to come.
  • The economy is projected to grow by $7 trillion more over the next decade than it would have without new influxes of immigrants, according to the CBO.
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  • Fresh estimates from the Congressional Budget Office this month said the U.S. labor force in 2023 had grown by 5.2 million people, thanks especially to net immigration
  • The sudden snapback in demand sent inflation soaring. Supply chain issues were a main reason prices rose quickly. But labor shortages posed a problem, too, and economists feared that rising wages — as employers scrambled to find workers — would keep price increases dangerously high.
  • he flow of migrants to the United States started slowing during the Trump administration, when officials took hundreds of executive actions designed to restrict migration.
  • Right before the pandemic, there were about 1.5 million fewer working-age immigrants in the United States than pre-2017 trends would have predicted, according to the San Francisco Fed. By the end of 2021, that shortfall had widened to about 2 million
  • But the economy overall wound up rebounding aggressively from the sudden, widespread closures of 2020, bolstered by historic government stimulus and vaccines that debuted faster than expected.
  • economy grow. But today’s snapshot still represents a stark turnaround from just a short time ago.
  • That’s because the labor force that emerged as the pandemic ebbed was smaller than it had been: Millions of people retired early, stayed home to take over child care or avoid getting sick, or decided to look for new jobs entirely
  • In the span of a year or so, employers went from having businesses crater to sprinting to hire enough staff to keep restaurants, hotels, retail stores and construction sites going. Wages for the lowest earners rose at the fastest pace.
  • About the same time, the path was widening for migrants to cross the southern border, particularly as the new Biden administration rolled back Trump-era restrictions.
  • Experts argue that the strength of the U.S. economy has benefited American workers and foreign-born workers alike. Each group accounts for roughly half of the labor market’s impressive year-over-year growth since January 2023
  • But the past few years were extremely abnormal because companies were desperate to hire.
  • lus, it would be exceedingly difficult for immigration to affect the wages of enormous swaths of the labor force,
  • “What it can do is lower the wages of a specific occupation in a specific area, but American workers aren’t stupid. They change jobs. They change what they specialize in,” Nowrasteh said. “So that’s part of the reason why wages don’t go down.”
  • In normal economic times, some analysts note, new immigrants can drag down wages, especially if employers decide to hire them over native-born workers. Undocumented workers, who don’t have as much leverage to push for higher pay, could lower average wages even more.
  • Particularly for immigrants fleeing poorer countries, the booming U.S. job market and the promise of higher wages continue to be an enormous draw.
  • “More than any immigration policy per se, the biggest pull for migrants is the strength of the labor market,” said Catalina Amuedo-Dorantes, an economics professor at the University of California at Merced. “More than any enforcement policy, any immigration policy, at the end of the day.”
  • Upon arriving in Denver in October, Santander hadn’t acquired a work permit but needed to feed his small children. Even without authorization, he found a job as a roofer for a contractor that ultimately pocketed his earnings, then one cleaning industrial refrigerators on the overnight shift for $12 an hour. Since receiving his work permit in January, Santander has started “a much better job” at a wood accessories manufacturer making $20 an hour.
  • But for the vast majority of migrants who arrive in the United States without prior approval, including asylum seekers and those who come for economic reasons, getting a work permit isn’t easy.
  • Federal law requires migrants to wait nearly six months to receive a work permit after filing for asylum. Wait times can stretch for additional months because of a backlog in cases.
  • While they wait, many migrants find off-the-books work as day laborers or street vendors, advocates say. Others get jobs using falsified documents, including many teenagers who came into the country as unaccompanied minors.
  • Still, many migrants miss the year-long window to apply for asylum — a process that can cost thousands of dollars — leaving them with few pathways to work authorization, advocates say. Those who can’t apply for asylum often end up working without official permission in low-wage industries where they are susceptible to exploitation.
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A Future Without Jobs? Two Views of the Changing Work Force - The New York Times - 0 views

  • Eduardo Porter: I read your very interesting column about the universal basic income, the quasi-magical tool to ensure some basic standard of living for everybody when there are no more jobs for people to do. What strikes me about this notion is that it relies on a view of the future that seems to have jelled into a certainty, at least among the technorati on the West Coast
  • the economic numbers that we see today don’t support this view. If robots were eating our lunch, it would show up as fast productivity growth. But as Robert Gordon points out in his new book, “The Rise and Fall of American Growth,” productivity has slowed sharply. He argues pretty convincingly that future productivity growth will remain fairly modest, much slower than during the burst of American prosperity in mid-20th century.
  • it relies on an unlikely future. It’s not a future with a lot of crummy work for low pay, but essentially a future with little or no paid work at all.
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  • The former seems to me a not unreasonable forecast — we’ve been losing good jobs for decades, while low-wage employment in the service sector has grown. But no paid work? That’s more a dream (or a nightmare) than a forecast
  • Farhad Manjoo: Because I’m scared that they’ll unleash their bots on me, I should start by defending the techies a bit
  • They see a future in which a small group of highly skilled tech workers reign supreme, while the rest of the job world resembles the piecemeal, transitional work we see coming out of tech today (Uber drivers, Etsy shopkeepers, people who scrape by on other people’s platforms).
  • Why does that future call for instituting a basic income instead of the smaller and more feasible labor-policy ideas that you outline? I think they see two reasons. First, techies have a philosophical bent toward big ideas, and U.B.I. is very big.
  • They see software not just altering the labor market at the margins but fundamentally changing everything about human society. While there will be some work, for most nonprogrammers work will be insecure and unreliable. People could have long stretches of not working at all — and U.B.I. is alone among proposals that would allow you to get a subsidy even if you’re not working at all
  • If there are, in fact, jobs to be had, a universal basic income may not be the best choice of policy. The lack of good work is probably best addressed by making the work better — better paid and more skilled — and equipping workers to perform it,
  • The challenge of less work could just lead to fewer working hours. Others are already moving in this direction. People work much less in many other rich countries: Norwegians work 20 percent fewer hours per year than Americans; Germans 25 percent fewer.
  • Farhad Manjoo: One key factor in the push for U.B.I., I think, is the idea that it could help reorder social expectations. At the moment we are all defined by work; Western society generally, but especially American society, keeps social score according to what people do and how much they make for it. The dreamiest proponents of U.B.I. see that changing as work goes away. It will be O.K., under this policy, to choose a life of learning instead of a low-paying bad job
  • Eduardo Porter: To my mind, a universal basic income functions properly only in a world with little or no paid work because the odds of anybody taking a job when his or her needs are already being met are going to be fairly low.
  • The discussion, I guess, really depends on how high this universal basic income would be. How many of our needs would it satisfy?
  • You give the techies credit for seriously proposing this as an optimal solution to wrenching technological and economic change. But in a way, isn’t it a cop-out? They’re just passing the bag to the political system. Telling Congress, “You fix it.
  • the idea of the American government agreeing to tax capitalists enough to hand out checks to support the entire working class is in an entirely new category of fantasy.
  • paradoxically, they also see U.B.I. as more politically feasible than some of the other policy proposals you call for. One of the reasons some libertarians and conservatives like U.B.I. is that it is a very simple, efficient and universal form of welfare — everyone gets a monthly check, even the rich, and the government isn’t going to tell you what to spend it on. Its very universality breaks through political opposition.
  • Eduardo Porter: I guess some enormous discontinuity right around the corner might vastly expand our prosperity. Joel Mokyr, an economic historian that knows much more than I do about the evolution of technology, argues that the tools and techniques we have developed in recent times — from gene sequencing to electron microscopes to computers that can analyze data at enormous speeds — are about to open up vast new frontiers of possibility. We will be able to invent materials to precisely fit the specifications of our homes and cars and tools, rather than make our homes, cars and tools with whatever materials are available.
  • The question is whether this could produce another burst of productivity like the one we experienced between 1920 and 1970, which — by the way — was much greater than the mini-productivity boom produced by information technology in the 1990s.
  • investors don’t seem to think so. Long-term interest rates have been gradually declining for a fairly long time. This would suggest that investors do not expect a very high rate of return on their future investments. R.&D. intensity is slowing down, and the rate at which new businesses are formed is also slowing.
  • Little in these dynamics suggests a high-tech utopia — or dystopia, for that matter — in the offing
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Degrees and Dollars - NYTimes.com - 0 views

  • the idea that modern technology eliminates only menial jobs, that well-educated workers are clear winners, may dominate popular discussion, but it’s actually decades out of date.
  • The fact is that since 1990 or so the U.S. job market has been characterized not by a general rise in the demand for skill, but by “hollowing out”: both high-wage and low-wage employment have grown rapidly, but medium-wage jobs — the kinds of jobs we count on to support a strong middle class — have lagged behind. And the hole in the middle has been getting wider: many of the high-wage occupations that grew rapidly in the 1990s have seen much slower growth recently, even as growth in low-wage employment has accelerated.
  • Computers, they pointed out, excel at routine tasks, “cognitive and manual tasks that can be accomplished by following explicit rules.” Therefore, any routine task — a category that includes many white-collar, nonmanual jobs — is in the firing line. Conversely, jobs that can’t be carried out by following explicit rules — a category that includes many kinds of manual labor, from truck drivers to janitors — will tend to grow even in the face of technological progress.
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  • Most of the manual labor still being done in our economy seems to be of the kind that’s hard to automate.
  • And then there’s globalization. Once, only manufacturing workers needed to worry about competition from overseas, but the combination of computers and telecommunications has made it possible to provide many services at long range.
  • high-wage jobs performed by highly educated workers are, if anything, more “offshorable” than jobs done by low-paid, less-educated workers.
  • the notion that putting more kids through college can restore the middle-class society we used to have is wishful thinking. It’s no longer true that having a college degree guarantees that you’ll get a good job, and it’s becoming less true with each passing decade.
  • So if we want a society of broadly shared prosperity, education isn’t the answer — we’ll have to go about building that society directly. We need to restore the bargaining power that labor has lost over the last 30 years, so that ordinary workers as well as superstars have the power to bargain for good wages. We need to guarantee the essentials, above all health care, to every citizen.
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Chicago gave hundreds of high-risk kids a summer job. Violent crime arrests plummeted. ... - 0 views

  • A couple of years ago, the city of Chicago started a summer jobs program for teenagers attending high schools in some of the city's high-crime, low-income neighborhoods.
  • Students who were randomly assigned to participate in the program had 43 percent fewer violent-crime arrests over 16 months, compared to students in a control group.
  • Researcher Sara Heller conducted a randomized control trial with the program, in partnership with the city. The study included 1,634 teens at 13 high schools. They were, on average, C students, almost all of them eligible for free or reduced-price lunch. Twenty percent of the group had already been arrested, and 20 percent had already been victims of crime.
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  • There was a big difference, though, in the violent crime arrest data between the teenagers who got jobs and those who did not:
  • The teenagers in the control group participated in neither part of the program.
  • Heller, in fact, found that most of the decline came a few months later:
  • Some of the students were given part-time jobs through the program, working 25 hours a week at minimum wage ($8.25 in Illinois) with government or non-profit employers
  • If their added income allowed parents to work less, they may also have gotten more adult supervision.
  • It's also possible that students who were busy working simply didn't have idle time over the summer to commit crime — but that theory doesn't explain the long-term declines in violent arrests that occurred well after the summer program was over.
  • A lot of things could be going on here. Teenagers who might have committed crime to get money would no longer need to when they have a job.
  • That long-term benefit suggests that students who had access to jobs may have then found crime a less attractive alternative to work. Or perhaps their time on the job taught them how the labor market values education. Or maybe the work experience may have given them skills that enabled them to be more successful — and less prone to getting in trouble — back in school.
  • The results echo a common conclusion in education and health research: that public programs might do more with less by shifting from remediation to prevention.
  • The findings make clear that such programs need not be hugely costly to improve outcomes for disadvantaged youth; well-targeted, low-cost employment policies can make a substantial difference, even for a problem as destructive and complex as youth violence.
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Ocasio-Cortez's Green New Deal Is a Winning Climate Strategy - The Atlantic - 0 views

  • For the first time in more than a decade, Democrats can approach climate policy with a sense of imagination. They can also approach it with a sense of humility, because their last two strategies didn’t work particularly well. When the party last controlled Congress, in 2009, Democrats tried to pass a national cap-and-trade bill, a type of policy that allows polluters to bid on the right to emit carbon dioxide into the atmosphere. It failed to pass in the Senate. Starting in 2011, President Obama tried to use the EPA’s powers under the Clean Air Act to fight carbon-dioxide emissions. After President Trump was elected, he terminated that effort by executive order.
  • Economists tend to prefer policies that work across the entire economy at once by integrating the costs of climate change into the price of gas, food, and other consumer goods. But voters—who have more quotidian concerns than optimally elegant economic policy—don’t always feel the same way. They don’t want gas prices to go up. And that means they support policies that remake one sector of the economy at a time, usually by mandating the use of technology. Economists like to disparage these policies as “kludges” or “command and control.” But Americans like them
  • climate policy’s Boring as Dirt problem: the BAD problem. The BAD problem recognizes that climate change is an interesting challenge. It is scary and massive and apocalyptic, and its attendant disasters (especially hurricanes, wildfires, and floods) make for good TV. But the policies that will address climate change do not pack the same punch. They are technical and technocratic and quite often dull. At the very least, they will never be as immediate as climate change itself. Floods are powerful, but stormwater management is arcane.
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  • The Green New Deal, first and foremost, can be understood as trying to fix the BAD problem. In the long term, it’s an ambitious package of laws that will touch every sector of the economy. The Sunrise Movement, a youth-led activism group that has pushed for the policy, has listed seven demands that any Green New Deal must satisfy. They range from requiring the U.S. to get 100 percent of its electricity from renewable sources to “decarbonizing, repairing and improving transportation and other infrastructure.” They also call for a massive investment in technology that could directly remove carbon dioxide from the atmosphere.
  • The single most crucial aspect of the Green New Deal is its proposed job guarantee, a controversial policy that says that every American can have a job with the government if they want one. Data for Progress, a leftist advocacy group, claims that the Green New Deal could generate 10 million new jobs across the country over 10 years.
  • This policy—a job for every American who wants one—reflects what the party learned from fighting Obamacare’s repeal. Obamacare provides a revealing view into how economists think about policy versus how people experience it
  • Franklin D. Roosevelt’s New Deal was not a tax, even if it included taxes; it’s remembered instead as the greatest of all stimulus and jobs bills. If Democrats take the White House during a recession, they will have a far easier time passing a Green New Deal than a carbon tax.
  • Obamacare survived because it gave two new superpowers to voters. The first was the power never to be denied health insurance for preexisting conditions, and the second was free or cheap health insurance through Medicaid. The reason Americans jammed the Capitol Hill switchboards last year to protest the repeal—and pulled the lever for Democrats in November—wasn’t that they valued Obamacare’s elegant cost-control mechanism. They wanted to keep their superpowers.
  • Fixing climate change will include lots of technocratic tweaks, lots of bills about dirt. They will be hard to defend against later repeal. So it would be nice if lawmakers could wed them to a new benefit, a superpower that people will fight for years after passage. Hence the job guarantee—a universal promise of employment meant to win over Americans in general and create more union jobs in particular.
  • The policy aligns with emerging Democratic strategy, too. The Green New Deal is policy-by-slogan, like “Medicare for All” or “Free Community College” or “Abolish ICE.” Those phrases capture a worldview, a promise, and a vision of how life would be different after their passage. They mirror the pungency, if not the politics, of Trump’s promise to “Build the wall.”
  • as far as policy makers are concerned, Obamacare comprises a set of clever tweaks and rules meant to change how insurance markets work and lower the cost of health care. Before the law passed, Democratic lawmakers cared deeply about getting those tweaks right.
  • For her first day on Capitol Hill, and her first public act as a representative-elect, Ocasio-Cortez chose to focus on climate change
  • Many Americans first heard of the Green New Deal early last month, after Ocasio-Cortez made a surprise appearance at a demonstration in Nancy Pelosi’s office
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China's Young People Can't Find Jobs. Xi Jinping Says to 'Eat Bitterness.' - The New Yo... - 0 views

  • China’s young people are facing record high unemployment as the country’s recovery from the pandemic is fluttering. They’re struggling professionally and emotionally. Yet the Communist Party and the country’s top leader, Xi Jinping, are telling them to stop thinking they are above doing manual work or moving to the countryside. They should learn to “eat bitterness,” Mr. Xi instructed, using a colloquial expression that means to endure hardships.
  • A record 11.6 million college graduates are entering the work force this year, and one in five young people are unemployed. China’s leadership is hoping to persuade a generation that gre
  • up amid mostly rising prosperity to accept a different reality
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  • The youth unemployment rate is a statistic the Chinese Communist Party takes seriously because it believes that idle young people could threaten its rule. Mao Zedong sent more than 16 million urban youth, including Mr. Xi, to toil in the fields of the countryside during the Cultural Revolution. The return of these jobless young people to cities after the Cultural Revolution, in part, forced the party to embrace self-employment, or jobs outside the state planned economy.
  • Many people are struggling emotionally. A young woman in Shanghai named Ms. Zhang, who graduated last year with a master’s degree in city planning, has sent out 130 resumes and secured no job offers and only a handful of interviews. Living in a 100-square-foot bedroom in a three-bedroom apartment, she barely gets by with a monthly income of less than $700 as a part-time tutor.“At my emotional low point, I wished I were a robot,” she said. “I thought to myself if I didn’t have emotions, I would not feel helpless, powerless and disappointed. I would be able to keep sending out résumés.”
  • “To ask us to endure hardships is to try to shift focus from the anemic economic growth and the decreasing job opportunities,” said Ms. Zhang, who, like most people I interviewed for this column, wanted to be identified with only her family name because of safety concerns. A few others want to be identified only with their English names.
  • Mr. Xi’s instruction to move to the countryside is equally out of touch with young people, as well as with China’s reality. Last December he told officials “to systematically guide college graduates to rural areas.” On Youth Day a few weeks ago, he responded to a letter by a group of agriculture students who are working in rural areas, commending them for “seeking self-inflicted hardships.” The letter, also published on the front page of People’s Daily, triggered discussions about whether Mr. Xi would start a Maoist-style campaign to send urban youths to the countryside.
  • In the hierarchical Chinese society, manual jobs are looked down upon. Farming ranks even lower because of the huge wealth gap between cities and rural areas. “Women wouldn’t consider to become my girlfriends if they knew that I deliver meals,” said Wang. He would fare even worse in the marriage market if he becomes a farmer.
  • Out of 13 Chinese graduates from his school, the five who chose to stay in the West have found jobs at Silicon Valley or Wall Street firms. Only three out of the eight who returned to China have secured job offers. Steven moved back to China earlier this year to be closer to his mother.
  • Now after months of fruitless job hunting, he, like almost every young worker I interviewed for this column, sees no future for himself in China.“My best way out,” he said, “is to persuade my parents to let me run away from China.”
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The future of jobs: The onrushing wave | The Economist - 0 views

  • drudgery may soon enough give way to frank unemployment. There is already a long-term trend towards lower levels of employment in some rich countries. The proportion of American adults participating in the labour force recently hit its lowest level since 1978
  • In a recent speech that was modelled in part on Keynes’s “Possibilities”, Larry Summers, a former American treasury secretary, looked at employment trends among American men between 25 and 54. In the 1960s only one in 20 of those men was not working. According to Mr Summers’s extrapolations, in ten years the number could be one in seven.
  • A 2013 paper by Carl Benedikt Frey and Michael Osborne, of the University of Oxford, argued that jobs are at high risk of being automated in 47% of the occupational categories into which work is customarily sorted. That includes accountancy, legal work, technical writing and a lot of other white-collar occupations.
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  • The impacts of technological change take their time appearing. They also vary hugely from industry to industry. Although in many simple economic models technology pairs neatly with capital and labour to produce output, in practice technological changes do not affect all workers the same way. Some find that their skills are complementary to new technologies. Others find themselves out of work.
  • The case for a highly disruptive period of economic growth is made by Erik Brynjolfsson and Andrew McAfee, professors at MIT, in “The Second Machine Age”, a book to be published later this month. Like the first great era of industrialisation, they argue, it should deliver enormous benefits—but not without a period of disorienting and uncomfortable change
  • Their argument rests on an underappreciated aspect of the exponential growth in chip processing speed, memory capacity and other computer metrics: that the amount of progress computers will make in the next few years is always equal to the progress they have made since the very beginning. Mr Brynjolfsson and Mr McAfee reckon that the main bottleneck on innovation is the time it takes society to sort through the many combinations and permutations of new technologies and business models.
  • A startling progression of inventions seems to bear their thesis out. Ten years ago technologically minded economists pointed to driving cars in traffic as the sort of human accomplishment that computers were highly unlikely to master. Now Google cars are rolling round California driver-free
  • Even after computers beat grandmasters at chess (once thought highly unlikely), nobody thought they could take on people at free-form games played in natural language. Then Watson, a pattern-recognising supercomputer developed by IBM, bested the best human competitors in America’s popular and syntactically tricksy general-knowledge quiz show “Jeopardy!” Versions of Watson are being marketed to firms
  • Text-mining programs will displace professional jobs in legal services. Biopsies will be analysed more efficiently by image-processing software than lab technicians. Accountants may follow travel agents and tellers into the unemployment line as tax software improves. Machines are already turning basic sports results and financial data into good-enough news stories.
  • the second machine age will make such trial and error easier. It will be shockingly easy to launch a startup, bring a new product to market and sell to billions of global consumers (see article). Those who create or invest in blockbuster ideas may earn unprecedented returns as a result.
  • Tyler Cowen, an economist at George Mason University and a much-read blogger, writes in his most recent book, “Average is Over”, that rich economies seem to be bifurcating into a small group of workers with skills highly complementary with machine intelligence, for whom he has high hopes, and the rest, for whom not so much.
  • A taxi driver will be a rarity in many places by the 2030s or 2040s. That sounds like bad news for journalists who rely on that most reliable source of local knowledge and prejudice—but will there be many journalists left to care? Will there be airline pilots? Or traffic cops? Or soldiers?
  • Thomas Piketty, an economist at the Paris School of Economics, argues along similar lines that America may be pioneering a hyper-unequal economic model in which a top 1% of capital-owners and “supermanagers” grab a growing share of national income and accumulate an increasing concentration of national wealth
  • The rise of the middle-class—a 20th-century innovation—was a hugely important political and social development across the world. The squeezing out of that class could generate a more antagonistic, unstable and potentially dangerous politics.
  • The current doldrum in wages may, like that of the early industrial era, be a temporary matter, with the good times about to roll (see chart 3). These jobs may look distinctly different from those they replace. Just as past mechanisation freed, or forced, workers into jobs requiring more cognitive dexterity, leaps in machine intelligence could create space for people to specialise in more emotive occupations, as yet unsuited to machines: a world of artists and therapists, love counsellors and yoga instructors.
  • though growth in areas of the economy that are not easily automated provides jobs, it does not necessarily help real wages. Mr Summers points out that prices of things-made-of-widgets have fallen remarkably in past decades; America’s Bureau of Labour Statistics reckons that today you could get the equivalent of an early 1980s television for a twentieth of its then price,
  • owever, prices of things not made of widgets, most notably college education and health care, have shot up
  • As innovation continues, automation may bring down costs in some of those stubborn areas as well, though those dominated by scarcity—such as houses in desirable places—are likely to resist the trend, as may those where the state keeps market forces at bay. But if innovation does make health care or higher education cheaper, it will probably be at the cost of more jobs, and give rise to yet more concentration of income.
  • Adaptation to past waves of progress rested on political and policy responses. The most obvious are the massive improvements in educational attainment brought on first by the institution of universal secondary education and then by the rise of university attendance. Policies aimed at similar gains would now seem to be in order. But as Mr Cowen has pointed out, the gains of the 19th and 20th centuries will be hard to duplicate.
  • Boosting the skills and earning power of the children of 19th-century farmers and labourers took little more than offering schools where they could learn to read, write and do algebra. Pushing a large proportion of college graduates to complete graduate work successfully will be harder and more expensive. Perhaps cheap and innovative online education will indeed make new attainment possible. But as Mr Cowen notes, such programmes may tend to deliver big gains only for the most conscientious students.
  • Everyone should be able to benefit from productivity gains—in that, Keynes was united with his successors. His worry about technological unemployment was mainly a worry about a “temporary phase of maladjustment” as society and the economy adjusted to ever greater levels of productivity
  • However, society may find itself sorely tested if, as seems possible, growth and innovation deliver handsome gains to the skilled, while the rest cling to dwindling employment opportunities at stagnant wages.
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U.S. Unemployment Claims Rise as Coronavirus Weighs on Economy - WSJ - 0 views

  • The total for the week ended Jan. 9 also was the highest in nearly five months and put claims well above the roughly 800,000 a week they had averaged in recent months
  • The U.S. labor-market recovery stalled last month with the December jobs report showing the U.S. lost 140,000 payroll positions. The economic recovery’s slowdown has included weakness in household spending, though economists expect the economy to rebound later this year as a Covid-19 vaccine is distributed through the population.
  • Employers cut 140,000 jobs in December, marking the first decline since the pandemic hit last spring. The leisure and hospitality industry bore the brunt of the decline, shedding 498,000 jobs as a surge in coronavirus infections forced many restaurants and bars to close or scale back operations.
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  • So-called continuing claims rose to nearly 5.3 million for the week ended Jan. 2, from 5.1 million a week earlier, according to the Labor Department. That marked the first weekly increase since November.
  • Hunter Keegan, 27 years old, of Fairfax County, Va., said he lost his job as a corporate recruiter for a health-care company last April. He said he immediately began applying for work in the greater Washington, D.C., area as well as in other parts of the country where the labor market seems to be faring better.
  • Seasonal quirks and the passage last month of a $900 billion Covid-19 relief bill could have muddied the claims picture somewhat.
  • At the same time, the bill added the $300-a-week supplement for those receiving unemployment benefits through March 14 and extended two federal pandemic programs that otherwise would have paid out their final benefits in December. News of the relief package could also have contributed to an uptick in initial claims by encouraging additional workers to apply or previously eligible workers who exhausted their benefits to reapply.
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The Internet Is the Greatest Legal Facilitator of Inequality in Human History - Bill Da... - 0 views

  • the Internet has created a tremendous amount of personal wealth. Just look at the rash of Internet billionaires and millionaires,
  • Then there’s the superstar effect. The Internet multiplies the earning power of the very best high-frequency traders, currency speculators, and entertainers, who reap billions while the merely good are left to slog it out.
  • will the Internet also create the greatest economic inequality the global economy has ever known?
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  • As the Internet goes about its work making the economy more efficient, it is reducing the need for travel agents, post office employees, and dozens of other jobs in corporate America. The increased interconnectivity created by the Internet forces many middle and lower class workers to compete for jobs with low-paid workers in developing countries. Even skilled technical workers are finding that their jobs can be outsourced to trained engineers and technicians in India and Eastern Europe.
  • The new news is that Internet-based companies may well be the businesses of the future, but they create opportunities for only a select few. Google has a little over 54,000 employees and generated revenues of around $50 billion in sales or about $1.0 million per employee.
  • in order to justify hiring an employee, a highly productive Internet company must create five to ten times the dollars in sales as the average domestic company.
  • In the past, the most efficient businesses created lots of middle class jobs.
  • One reason we are failing to create a vibrant middle class is that the Internet affects the economy differently than the new businesses of the past did., forcing businesses and their workers to face increased global competition. It reduces the barriers for moving jobs overseas. It has a smaller economic trickle-down effect.
  • Doing some of the obvious things like raising the minimum wage to fight the effects of the Internet will probably worsen the problem. For example, it will make it more difficult for bricks-and-mortar retailers to compete with online retailers.
  • Surprisingly, the much-vilified Walmart probably does more to help middle class families raise their median income than the more productive Amazon. Walmart hires about one employee for every $200,000 in sales, which translates to roughly three times more jobs per dollar of sales than Amazon
  • two things are certain: the Internet is creating many of those in the ultra-wealthy 1%; and it forces businesses to compete with capable international competitors while providing the tools so that businessmen can squeeze inefficiency out of the system in order to remain competitive.
  • If the government is going to be in the business of redistributing wealth, a better approach would be to raise the earned income tax credit and increase taxes to pay for it. Not only would this raise the income of low paid workers, but also it would subsidize businesses so they would be more competitive in world markets and encourage them to create jobs
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Caterpillar to cut more than 10,000 jobs - Sep. 24, 2015 - 0 views

  • This time at a giant in U.S. business. Caterpillar (CAT) announced on Thursday that job cuts could exceed 10,000 through 2018. Up to 5,000 employees will lose jobs between now and the end of 2016.
  • The moves are aimed at cutting $1.5 billion in annual costs as the global growth outlook continues to darken.
  • Nearly 10% of the company's revenue is generated in China, where the country's economy is shifting from infrastructure-led growth to being more consumer driven.
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  • China's growing pains have rippled through many countries with which it has deep trade ties.
  • As demand for raw materials dropped, it's sent prices careening for everything from crude oil and copper to iron ore. That's led mining and oil exploration companies to cut back on spending on the heavy equipment that Caterpillar produces.
  • Given those challenges, Caterpillar dimmed its 2015 sales targets and warned next year's revenue could decline by 5%. That would mark the first time in Caterpillar's 90-year history that sales have declined for four straight years.
  • the 10,000 job cut estimate includes the potential closing of more than 20 unspecified manufacturing facilities. The company will offer a voluntary retirement enhancement program for qualifying employees that will be completed by the end of 2015.
  • Earlier this week the company said retail sales of its machinery slumped 11% between June and August. The company felt the greatest pressure in China and Latin America.
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    Caterpillar cuts thousands of jobs
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December Jobs Report: Recovery Goes Into Reverse - The New York Times - 0 views

  • U.S. employers cut 140,000 jobs in December, the Labor Department said Friday. It was the first net decline in payrolls since last spring’s mass layoffs and followed five straight months in which hiring had slowed.
  • The unemployment rate was unchanged at 6.7 percent, down sharply from its high of nearly 15 percent in April but still close to double the 3.5 percent rate in the same month a year earlier.
  • “It’s a really vivid demonstration that the labor market can’t bounce back in any sustainable form until the pandemic is under control,” said Nick Bunker,
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  • “With the pandemic raging, people are losing work and losing hope,” he said.
  • At the same time, economists said the concentrated nature of the December job losses suggested that the damage from the latest wave of coronavirus cases had not spread to the rest of the economy.
  • Most forecasters expect the economy to remain weak and perhaps shed more jobs in early 2021. But they are becoming increasingly optimistic about the rest of the year.
  • Nearly four million Americans have been unemployed for more than six months, the standard threshold for long-term unemployment.
  • Retailers, which laid off millions of workers last spring, added more than 120,000 jobs last month, a sign that they have learned to adapt to the pandemic.
  • Robert Branca, who owns two dozen Dunkin’ locations in Massachusetts, said that business picked up steadily over the summer but that it had tailed off since then.
  • Federal aid may also be crucial in another hard-hit category: the public sector.
  • “There are a lot of rich people who’ve saved a lot of money and really want to spend it,” said Tara Sinclair, an economist at George Washington University.
  • If that pattern repeats, it could have long-term consequences, particularly for people with disabilities, criminal records or other characteristics that make it hard to find jobs even in the best of times.
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When Milton Friedman Ran the Show - The Atlantic - 0 views

  • Today, Friedman might seem to belong to a bygone world. The Trumpian wing of the Republican Party focuses on guns, gender, and God—­a stark contrast with Friedman’s free-market individualism. Its hostility to intellectuals and scientific authority is a far cry from his grounding within academic economics.
  • The analysts associated with the Claremont Institute, the Edmund Burke Foundation, and the National Conservatism Conference (such as Michael Anton, Yoram Hazony, and Patrick Deneen) espouse a vision of society focused on preserving communal order that seems very different from anything Friedman, a self-defined liberal in the style of John Stuart Mill, described in his work.
  • Jennifer Burns, a Stanford historian, sets out to make the case in her intriguing biography Milton Friedman: The Last Conservative that Friedman’s legacy cannot be shaken so easily. As she points out, some of his ideas—­the volunteer army, school choice—­have been adopted as policy; others, such as a universal basic income, have supporters across the political spectrum.
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  • Friedman’s thought, she argues, is more complex and subtle than has been understood: He raised pressing questions about the market, individualism, and the role of the state that will be with us for as long as capitalism endures.
  • Just as important, his time at Chicago taught Friedman about the intertwining of political, intellectual, and personal loyalties. He became a regular in an informal group of graduate students and junior faculty trying to consolidate the department as a center of free-market thought
  • by the 1930s, the leading figures at the University of Chicago were deeply committed to what had become known as price theory, which analyzed economic behavior in terms of the incentives and information reflected in prices. The economists who left their mark on Friedman sought to create predictive models of economic decision making, and they were politically invested in the ideal of an unencumbered marketplace.
  • Friedman was also shaped by older traditions of economic thought, in particular the vision of political economy advanced by thinkers such as Adam Smith and Alfred Marshall. For them, as for him, economics was not a narrow social science, concerned with increasing productivity and efficiency. It was closely linked to a broader set of political ideas and values, and it necessarily dealt with basic questions of justice, freedom, and the best way to organize society.
  • His libertarian ethos helped seed the far more openly hierarchical social and political conservatism that fuels much of our present-day political dysfunction.
  • In 1946, Friedman was hired by the University of Chicago, where he shut down efforts to recruit economists who didn’t subscribe to free-market views.
  • Instead, he believed that consumption patterns were dependent on local conditions and on lifetime expectations of income. The federal government, he argued, could do much less to affect economic demand—­and hence to fight recessions—­than the Keynesian consensus suggested.
  • But his fundamental commitments were consistent. In his early work on consumption habits, Friedman sought to puncture the arrogance of the postwar Keynesian economists, who claimed to be able to manipulate the economy from above, using taxes and spending to turn investment, consumption, and demand on and off like so many spigots
  • He was also legendary for his brutal classroom culture. One departmental memo, trying to rectify the situation, went so far as to remind faculty to please not treat a university student “like a dog.” What had started as a freewheeling, rebellious culture among the economists in Room Seven wound up as doctrinal rigidity.
  • Evidence leads her to argue more pointedly that Rose (credited only with providing “assistance”) essentially co-wrote Capitalism and Freedom (1962).
  • Burns implicitly exposes some of the limitations of Friedman’s focus on the economic benefits of innate individual talent. He had more than nature to thank for producing associates of such high caliber, ready to benefit him in his career. Culture and institutions clearly played a large role, and sexual discrimination during the 1930s, ’40s, and ’50s ensured that professional paths were anything but fair.
  • The state, he acknowledged, would have to take some responsibility for managing economic life—­and thus economists would be thrust into a public role. The question was what they would do with this new prominence.
  • Although he personally rejected racial prejudice, he considered the question of whether Black children could attend good schools—and whether, given the “taste” for prejudice in the South, Black adults could find remunerative jobs—less important than the “right” of white southerners to make economic decisions that reflected their individual preferences. In fact, Friedman compared fair-employment laws to the Nuremberg Race Laws of Nazi Germany. Not only was this tone-deaf in the context of the surging 1960s civil-rights movement; it was a sign of how restricted his idea of freedom really was.
  • in Capitalism and Freedom, Friedman made the case that the real problem lay in the methods liberals employed, which involved interfering with the competitive price mechanism of the free market. Liberals weren’t morally wrong, just foolish, despite the vaunted expertise of their economic advisers.
  • In a rhetorical move that seemed designed to portray liberal political leaders as incompetent, he emphasized efficiency and the importance of the price system as a tool for social policy
  • For Friedman, the competitive market was the realm of innovation, creativity, and freedom. In constructing his arguments, he envisioned workers and consumers as individuals in a position to exert decisive economic power, always able to seek a higher wage, a better price, an improved product
  • The limits of this notion emerged starkly in his contorted attempts to apply economic reasoning to the problem of racism, which he described as merely a matter of taste that should be free from the “coercive power” of the law:
  • Almost as soon as the Second World War ended, Friedman began to stake out a distinctive rhetorical position, arguing that the policy goals of the welfare state could be better accomplished by the free market
  • s the conservative movement started to make electoral gains in the ’70s, Friedman emerged as a full-throated challenger of liberal goals, not just methods
  • He campaigned for “tax limitation” amendments that would have restricted the ability of state governments to tax or spend
  • n a famous New York Times Magazine essay, he suggested that corporations had no “social responsibility” at all; they were accountable only for increasing their own profit
  • Friedman’s free-market certainties went on to win over neoliberals. By the time he and Rose published their 1998 memoir, Two Lucky People, their ideas, once on the margin of society, had become the reigning consensus.
  • That consensus is now in surprising disarray in the Republican Party that was once its stronghold. The startling rise in economic inequality and the continued erosion of middle-class living standards have called into question the idea that downsizing the welfare state, ending regulations, and expanding the reach of the market really do lead to greater economic well-being—let alone freedom.
  • Friedman—despite being caricatured as a key intellectual architect of anti-government politics—had actually internalized an underlying assumption of the New Deal era: that government policy should be the key focus of political action. Using market theory to reshape state and federal policy was a constant theme of his career.
  • Still, Friedman—­and the libertarian economic tradition he advanced—­bears more responsibility for the rise of a far right in the United States than Burns’s biography would suggest. His strategy of goading the left, fully on display in the various provocations of Free to Choose and even Capitalism and Freedom, has been a staple for conservatives ever since
  • He zealously promoted the kind of relentless individualism that undergirds parts of today’s right, most notably the gun lobby. The hostile spirit that he brought to civil-rights laws surfaces now in the idea that reliance on court decisions and legislation to address racial hierarchy itself hems in freedom
  • The opposition to centralized government that he championed informs a political culture that venerates local authority and private power, even when they are oppressive
  • his insistence (to quote Capitalism and Freedom) that “any … use of government is fraught with danger” has nurtured a deep pessimism that democratic politics can offer any route to redressing social and economic inequalities.
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