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Not because it was going to help Trump win but because it was going to help Trump cope with a loss. The president was not accepting defeat. That meant no Republican with career ambitions could accept it, either.

At a low point in his party’s existence, with much of the GOP’s leadership class pre-writing their own political epitaphs by empowering Trump to lay waste to the country’s foundational democratic norms, an obscure lawyer from west Michigan stood on principle. It proved to be the nail in Trump’s coffin

Shortly after Michigan’s vote to certify, the General Services Administration finally commenced the official transition of power and Trump tweeted out a statement affirming the move “in the best interest of our Country.”

Still, the drama in Lansing raised deeper questions about the health of our political system and the sturdiness of American democracy

Why were Republicans who privately admitted Trump’s legitimate defeat publicly alleging massive fraud? Why did it fall to a little-known figure like Van Langevelde to buffer the country from an unprecedented layer of turmoil?

In conversations with more than two dozen Michigan insiders—elected officials, party elders, consultants, activists—it became apparent how the state’s conditions were ripe for this sort of slow-motion disaster

Michigan is home to Detroit, an overwhelmingly majority Black city, that has always been a favorite punching bag of white Republicans. The state had viral episodes of conflict and human error that were easily manipulated and deliberately misconstrued. It drew special attention from the highest levels of the party, and for the president, it had the potential to settle an important score with his adversary, Democratic Governor Gretchen Whitmer

Perhaps most important, Trump’s allies in Michigan proved to be more career-obsessed, and therefore more servile to his whims, than GOP officials in any other state he has cultivated during his presidency, willing to indulge his conspiratorial fantasies in ways other Republicans weren’t.

“Anybody can sue anybody for any reason. But winning is a whole different matter. And Trump didn’t have a realistic pathway here,” Brian Calley, the former GOP lieutenant governor, told me prior to the certification vote

“We have to see this for what it is. It’s a PR strategy to erode public confidence in a very well-run election to achieve political ends,” Secretary of State Jocelyn Benson, a Democrat, said in an interview last week. “This was not any type of valid legal strategy that had any chance at ultimately succeeding.”

Strangely liberated by his deficit of 154,000 votes, the president’s efforts here were aimed not at overturning the results, but rather at testing voters’ faith in the ballot box and Republicans’ loyalty to him.

where he can ultimately succeed—is in convincing unprecedented numbers of Americans that their votes didn’t count. Last month, Gallup reported that the public’s confidence in our elections being accurate dropped 11 points since the 2018 midterms, which included a 34-point decrease among Republicans.

That was before a daily deluge of dishonest allegations and out-of-context insinuations; before the conservative media’s wall-to-wall coverage of exotic conspiracy theories; before the GOP’s most influential figures winked and nodded at the president of the United States alleging the greatest fraud in U.S. history.

Trump failed to win Michigan. But he succeeded in convincing America that a loss, no matter how conclusive, may never again be conclusive enough.

The irony of Michigan’s electoral meltdown is that Election Day, in the eyes of veteran clerks and poll workers across the state, was the smoothest it had ever been

“You’re talking about election officials implementing new laws, running an election with a 60 percent mail vote, in the middle of a pandemic,”

“In terms of voters getting the ballots processed and counted in a reasonable time period, I thought they did a marvelous job. But it was a huge challenge.”

There’s always this rallying cry from Republicans—‘We win everywhere else, but lose Wayne County’—that creates paranoia. I still remember hearing, back on my first campaign in 2002, that Wayne County always releases its votes last so that Detroit can see how many votes Democrats need to win the state. That’s what a lot of Republicans here believe.”

The Republicans—House Speaker Lee Chatfield and Senate Majority Leader Mike Shirkey—were not interested. Spooked by Trump’s continued assault on mail voting, and aware that their own members in the Legislature were distrustful of the new “no-excuse-absentee” rules, Chatfield and Shirkey weren’t inclined to do the process any favors.

many Republicans didn’t believe the election would be terribly close to begin with

The common expectation was that the president would lose comfortably, by at least 4 or 5 points, a margin that would render any controversy about absentee voting meaningless.

Michigan Republicans were gripped by equal parts euphoria and panic. It was clear Trump was running far more competitively than they’d anticipated; he was on track to win Florida, Ohio and North Carolina, three states that tally their ballots quickly, meaning the spotlight would abruptly shift to the critical, slow-counting battlegrounds of Michigan, Wisconsin and Pennsylvania.

it wasn’t until midnight that the urgency of the situation crashed over Republicans. Trump had built a lead of nearly 300,000 votes on the strength of same-day ballots that were disproportionately favorable to him. Now, with the eyes of the nation—and of the president—fixed on their state, Michigan Republicans scrambled to protect that lead.

Whitmer and Benson warned the GOP leaders that a protracted counting process, especially in the scenario of a competitive election, would invite chaos. Other states Trump carried in 2016, such as Ohio and Florida, allowed for pre-canvassing of absentee and other mail-in ballots so that voters would know which candidate carried the state on election night. Why couldn’t Michigan do the same?

Thomas had been “thrilled” with the professionalism he’d witnessed during Monday’s pre-processing session and Tuesday’s vote tabulating. Now, in the early morning hours of Wednesday, things were going sideways. Groups of Republican poll challengers were clustering around individual counting tables in violation of the rules.

“Reading these affidavits afterward from these Republican poll challengers, I was just amazed at how misunderstood the election process was to them,” Thomas chuckled. “The things they said were going on—it’s like ‘Yeah, that’s exactly what was going on. That’s what’s supposed to happen.’

His cushion over Biden had been whittled down to 70,000 votes. There remained hundreds of thousands of absentee ballots to be counted in the large, Democratic strongholds of Detroit, Lansing and Flint. The math was simply not workable for the president. Just before 9:30 a.m., Biden overtook Trump in the tally of Michigan’s votes—and suddenly, a switch flipped on the right.

After 24 hours of letting the democratic process work, Republicans around the country—watching Trump’s second term slipping through their fingers—began crying foul and screaming conspiracy. No state cornered the hysteria market quite like Michigan.

“The people outside that room were doing exactly what the law says you would eject people for doing—they were disrupting the election,” Thomas said. “Everyone else in the room—the Democratic Party, the Republican Party, the ACLU, the nonpartisans—they all still had a full complement of challengers in the room. And the Republicans, by the way, had far more challengers in the room than they were entitled to.”

Truly egregious was Cox’s dishonesty. At the time of her tweet, several hundred of her party’s poll challengers, attorneys and representatives were already inside the TCF Center monitoring the count

By law, Republicans were allowed to have 134 challengers in the room, one for each tabulation table. In reality, the GOP had far more than that, according to sworn testimony from nonpartisan poll watchers inside the TCF Center. Because of the overflow, election officials ultimately decided to lock down the complex

In the days following Trump’s shameful address to the nation, two realities became inescapable to Michigan’s GOP elite. First, there was zero evidence to substantiate widespread voter fraud. Second, they could not afford to admit it publicly.

What made this behavior all the more confounding, Thomas said, is that the election was conducted more transparently than any he’d ever participated in. Each of the 134 tables had monitors placed at the end, “showing every keystroke that was made,” so that challengers could see exactly what was happening

But he came to realize that none of this mattered. Having dealt with Republican poll challengers for decades, Thomas said, it was clear the people who infiltrated TCF on Wednesday were not adequately trained or there for the right reasons.

“Unlike the people who were there Monday and Tuesday, these people Wednesday were totally unprepared. They had no idea how the system worked. They had no idea what they were there for,” Thomas said. “Many of them—not all of them, but many of them—they were on a mission. They clearly came in believing there was mass cheating going on in Detroit and they were on a mission to catch it.”

When Trump addressed the nation from the White House on Thursday night, insisting the election had been “stolen” from him, he returned time and again to alleged misconduct in Michigan’s biggest city. Detroit, he smirked, “I wouldn’t say has the best reputation for election integrity.” He said the city “had hours of unexplained delay” in counting ballots, and when the late batches arrived, “nobody knew where they came from.” He alleged that Republicans had been “denied access to observe any counting in Detroit” and that the windows had been covered because “they didn’t want anybody seeing the counting.”

All of this was a lie. Republicans here—from Ronna Romney McDaniel to Laura Cox to federal and local lawmakers—knew it was a lie. But they didn’t lift a finger in protest as the president disparaged Michigan and subverted America’s democratic norms. Why?

The true insanity was saved for Detroit. By early afternoon on Wednesday, hundreds and hundreds of Republicans had descended on the TCF Center, responding to an all-hands-on-deck missive that went out from the state party and was disseminated by local officials. Cox, the party chair, tweeted out a video of her comrades standing outside the locked-up downtown building. “Republican poll challengers blocked from entering the TCF Center in Detroit! This is egregious!” she wrote.

Tapped by the president-elect to take over the Republican National Committee—on the not-so-subtle condition that she remove “Romney” from her professional name—McDaniel morphed into an archetype of the Trump-era GOP sycophant. There was no lie too outlandish to parrot, no behavior too unbecoming to justify, no abuse of power too flagrant to enable

Longtime friends worried that McDaniel wasn’t merely humiliating herself publicly; she seemed to be changing in private. She was no longer coolly detached from the passions of politics. If anything, she was turning into a true MAGA believer.

There was some relief, then, when in recent weeks McDaniel told multiple confidants that she doubted there was any scalable voter fraud in Michigan. Nevertheless, McDaniel told friends and fellow Republicans that she needed to stay the course with Trump and his legal team. This wasn’t about indulging him, she said, but rather about demonstrating a willingness to fight—even when the fight couldn’t be won.

McDaniel’s thinking is actually quite linear. The RNC will vote in January on the position of chair. She is anxious to keep her job.

No matter how obvious the outcome—to McDaniel, to the 168 members of the RNC, maybe even to Trump himself—any indication of surrender would be unforgivable.

This is why McDaniel has sanctioned her employees, beginning with top spokesperson Liz Harrington, to spread countless demonstrable falsehoods in the weeks since Election Day. It’s why the RNC, on McDaniel’s watch, tweeted out a video clip of disgraced lawyer Sidney Powell claiming Trump “won in a landslide” (when he lost by more than 6 million votes nationally) and alleging a global conspiracy to rig the election against him.

With Trump entering the anguished twilight of his presidency, all that appears to matter for someone like McDaniel—or Cox, the state party chair, who faces an upcoming election of her own—is unconditional fidelity to the president.

Both Chatfield and Shirkey are talented and ambitious, self-grooming for future runs at higher office. Both could see the obvious problems of meeting with the president at such a precarious moment—and both could also see how spurning Trump could torpedo their careers in the GOP.

“Frankly, continuing to humor him merely excuses his role in this. The election wasn’t stolen, he blew it. Up until the final two weeks, he seemingly did everything possible to lose. Given how close it was, there is no one to blame but Trump.”

“But if they want a future within the party, it is required of them to demonstrate continued fealty. Principled conservatives who respect the rule of law and speak out suddenly find themselves outcasts in a party that is no longer about conservativism but Trumpism. Just ask once-conservative heroes like Jeff Flake, Justin Amash and Mark Sanford.”

Monica Palmer, one of the GOP canvassers, caused an uproar when she offered to certify the rest of Wayne County—precincts like Livonia—without certifying Detroit. (Livonia, which is 95 percent white, had more poll-book irregularities than Detroit, which is 80 percent Black.)

Tweeting out siren emojis, Jenna Ellis, the attorney for Trump’s campaign, announced: “BREAKING: This evening, the county board of canvassers in Wayne County, MI refused to certify the election results. If the state board follows suit, the Republican state legislator will select the electors. Huge win for @realDonaldTrump.”

the notion that legislators would under any circumstance be free to send their own partisans to the Electoral College had no basis in fact. Under Michigan statute, the only electors eligible to represent Michigan are those who will vote for the winner of the popular vote. There is no discretion for anyone—the governor, leaders of the legislature, canvassers at the county or state level—to do anything but follow the law.

“The unfortunate reality within the party today is that Trump retains a hold that is forcing party leaders to continue down the path of executing his fantasy of overturning the outcome—at their own expense,”

precautions were taken. In a savvy move, Chatfield and Shirkey prepared a letter addressing concerns over funding to deal with Covid-19 in Michigan. They also brought along their general counsels. These two maneuvers—one to soothe the outcry over Michigan lawmakers meeting with a president whose legal team was calling for them to overturn the state’s election results; the other to insulate them from improper discussions about doing exactly that—were sufficient to sidestep any major crisis.

Trump, perhaps sensing the nervous reticence of his guests, did not make the ask they feared. As the meeting went on, it became apparent to some people in the room that more than anything, Trump had called his Michigan allies to Washington to get an honest assessment of what had happened there. He wanted to know if there was any pathway to victory. They told him there was not.

“I don’t get it,” the president said, venting confusion and frustration. “All these other Republicans, all over the country, they all win their races. And I’m the only guy that loses?”

With all 83 counties boasting certified results, the only thing that stood between Joe Biden and his rightful claim to Michigan’s 16 electoral votes was certification from the state board of canvassers. In a rational political climate, this would not have been the subject of suspense. But the swirling innuendo and disinformation had long ago swept away any semblance of normalcy.

Already, one of the board’s two Republicans, Norm Shinkle, a career party fixture, had hinted he would not vote to certify the state’s result. Because the two Democrats would obviously vote in favor of certification, a manic gush of attention turned to the other Republican member, Aaron Van Langevelde.

By Sunday morning, speculation was rampant that Van Langevelde would resign from the board on Monday. This made perfect sense to Republicans and Democrats alike: Based on their fact-finding mission into the mysterious fourth board member, Van Langevelde was a bookish type, a rule follower, an obsessive student of world history (particularly the Roman Empire) who believes to his core in a conservative application of the law

He would be inclined, Lansing insiders figured, to vote in favor of certifying the results. But he would be disinclined to throw away his future in the Republican Party. A resignation from the board was his only way out.

Working off this expectation, a late lobbying blitz turned on Shinkle. In the 36 hours preceding Monday’s vote, he was inundated with calls and emails and text messages from high-ranking Republican luminaries around the state. Some, such as former congressman and House Intelligence Chair Mike Rogers, urged him to certify the results in accordance with Michigan law. Others, including McDaniel and Cox and other state party figures, pleaded with Shinkle to stand his ground and insist on a two-week delay.

The response they got was universal: He would promise to “do my best,” then he would offer a litany of unsubstantiated allegations of fraud. (Not everyone bothered contacting Shinkle: That his wife served as a plaintiff’s witness in Trump’s ill-fated lawsuit against Detroit struck many people not just as a conflict of interest, but as a clear indication he would never vote to certify.)

Some Republicans didn’t want to believe it. But for others, reality began to set in. They had grown so accustomed to Republicans falling in line, bending a knee to Trumpism, that the notion of someone acting on his own personal ethic had become foreign.

But the more they learned about Van Langevelde, the more he sounded like just that type of independent thinker. Some viewed his relative youth as an asset, believing he wouldn’t risk throwing away his future in the party. What they had failed to appreciate was that young conservatives were oftentimes the most disillusioned with the party’s drift from any intellectual or philosophical mooring.

Like a good attorney, Van Langevelde meticulously questioned a number of expert guest speakers to ascertain if they had dissenting views of the board’s authority under state law. Time and again, they affirmed his position. The body did not have power to audit or investigate or recount; that could be done only by distinct bodies after certification was complete. The job of the board of state canvassers was narrowly to examine the certified results from all 83 counties and then, based on the relevant vote totals, certify a winner of Michigan’s 16 electoral votes. The one time he was challenged—by Spies, the political superlawyer representing John James’ U.S. Senate campaign—Van Langevelde calmly brushed his recommendations aside, telling Spies, “I’m going to have to respectfully disagree with you on that.”

Within minutes of Van Langevelde’s vote for certification—and of Shinkle’s abstention, which guaranteed his colleague would bear the brunt of the party’s fury alone—the fires of retaliation raged. In GOP circles, there were immediate calls for Van Langevelde to lose his seat on the board; to lose his job in the House of Representatives; to be censured on the floor of the Legislature and exiled from the party forever. Actionable threats against him and his family began to be reported. The Michigan State Police worked with local law enforcement to arrange a security detail.

ll for doing his job. All for upholding the rule of law. All for following his conscience and defying the wishes of Donald Trump.

“It took a lot of courage for him to do what he thought was right and appropriate, given the amount of pressure he was under,” said Brian Calley, the GOP former lieutenant governor, who told me days earlier that he had never heard the name Aaron Van Langevelde. “He carried himself as well as anybody I’ve seen in that type of setting, including people with decades and decades of experience. He showed an awful lot of poise.”

The name Van Langevelde is already so infamous in Michigan Republican lore that those associated with him are at risk of being branded turncoats, too.

because of the sweeping transformation of the party—not just ideologically or stylistically, but mechanically, with MAGA loyalists now installed in state and local leadership posts across the country—the question of loyalty will continue to define the Republican identity for years to come.

That contours of that identity—what it means to be a Trump Republican—have gained clarity over time. The default embrace of nationalism. The indifference to ideas as a vision for governing. The disregard for institutional norms. The aversion to etiquette and the bottomless appetite for cultural conflict. Now there is another cornerstone of that identity: The subversion of our basic democratic process.

More than any policy enacted or court vacancy filled, Trump’s legacy will be his unprecedented assault on the legitimacy of the ballot box

Future iterations of the GOP will make casual insinuations of voter fraud central to the party’s brand. The next generation of Republicans will have learned how to sow doubts about election integrity in one breath and in the next breath bemoan the nation’s lack of faith in our elections, creating a self-perpetuating justification to cast suspicion on a process that by raw numbers does not appear conducive to keeping them in power.

“This is not some whacked-out fringe,” James said in one taping. “When half the votes in our state believe we just had the most secure election in U.S. history, and the other half believe they were cheated, we have a problem.”

James is right. We do have a problem. Our elections continue to be underfunded. Our election bureaus are chronically understaffed. Our election workers are badly undertrained. Our elections are prone to a significant amount of human error—and any municipal or county clerk will tell you that concerns over not catching those errors keep them up at night.

But errors are not fraud. And when James says he’s troubled that half of Michigan’s voters feel they were cheated, he would do well to remember that he was the one telling them they got cheated in the first place.

there is no denying the advent of a pattern. Republicans in Michigan and across America have spent the past three weeks promoting baseless allegations of corruption at the ballot box, the rabid responses to which they use as justification to continue to question the fundamental integrity of our elections. It’s a vicious new playbook—one designed to stroke egos and rationalize defeats, but with unintended consequences that could spell the unraveling of America’s democratic experiment.

“By capriciously throwing around these false claims, you can’t get to the heart of a really important issue. In fact, you lose any credibility to get to the heart of that issue,”

“And by the way, if you’re going to do an audit, you’d better do it statewide. This is not just a Detroit thing. There are sloppy Republican precincts all over the state.

There is no immediate way to make Americans appreciate this distinction, no instant cure for the flagging confidence in our elections.

there are obvious incremental steps to take in the name of transparency and efficiency. First among them, acknowledged Chatfield, the Michigan House speaker, is getting rid of the rules that led to the TCF Center circus in the first place.

one of the items where we should look at other states and see how they’ve done it well, is regarding the early processing of absentee ballots. We mishandled that this year. We should have allowed for early processing. We didn’t, and it became a spectacle.

For those Republicans left to pick up the pieces in the coming legislative session, there may be little incentive for bipartisan cooperation on a subject that now divides the two party bases as starkly as gun rights or tax rates. The backlash against absentee voting from Republican constituents was already fierce; in the wake of Trump’s defeat and the TCF Center conspiracies, Republicans might find it beneficial to avoid raising the issue at all.

There is little cause for optimism. If the majority of GOP politicians couldn’t be bothered to do the easy work of debunking crackpot conspiracy theories, how likely are they to do the hard work of hardening our democracy?

“A lot of our leaders in this country ought to be ashamed of themselves,” said Thomas, the nonpartisan elections guru who kept Michigan’s governing class guessing his political affiliation for the past several decades. “They have propagated this narrative of massive fraud, and it’s simply not true. They’ve leapt from some human error to massive fraud. It’s like a leap to Never Neverland. And people are believing them.

“The people of this country really need to wake up and start thinking for themselves and looking for facts—not conspiracy theories being peddled by people who are supposed to be responsible leaders, but facts,” Thomas said. “If they’re not going to be responsible leaders, people need to seek out the truth for themselves. If people don’t do that—if they no longer trust how we elect the president of the United States—we’re going to be in real trouble.”

“AI is the next revolution and there is no going back,”

that transformation is already taking shape, and workers can find ways to use the ChatGPT and other new technology to free them from boring work.

“Every month there are hundreds more job postings mentioning generative AI,”

“The way things have been done in the past aren’t necessarily the way they need to be done today,” he said, adding that workers and employers should invest in retraining and upskilling where possible.

“There is an enormous demand for people who are tech-savvy and who will be the first adopters, who will be the first to figure out what opportunities these technologies open up,”

The jobs of the future will require a mind-set shift for employees, several executives said. Rather than viewing generative AI and other machine-learning software as a threat, workers should embrace new technology as a way to free them from less-rewarding work and augment their strengths.

“This is a huge opportunity to advance a lot of professions—allow people to do work that’s, frankly, more stimulating.”

For the hotel chain, that could look like using AI to determine which brand of wine a guest likes, and adjusting recommendations accordingly.

United Airlines Holdings Inc., aims to use AI to do transactions that shouldn’t require a human, such as placing someone in an aisle or window seat depending on their preference, or suggesting a different flight for someone trying to book a tight connection, said Kate Gebo, executive vice president of human resources and labor relations. That leaves employees free to have more complex interactions with customers

services intended to help customers solve emotional problems require solutions a machine can’t provide.

“AI is not sentient. It can’t be emotional. And that is the kind of accountability and reciprocity that is needed…for people to have the outcomes that we’re hoping to provide,”

“Certain business processes could be enhanced,” said Carmen Orr, Yelp’s chief people officer, adding that there are plenty of concerns, too. “We don’t want it for high human-touch things.”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

There are many policy changes we should consider. We should increase earnings subsidies.

Policy should help workers build skills that businesses actually demand and that the market will reward.

Policy should get government out of the way by deregulating the labor market, creating more opportunity

And policies with significant unintended consequences that suppress workforce participation — like disability insurance — need to be reformed.

Some of these policy changes will cost money. That’s okay. Our commitment to the common good requires public action to help the working class lead flourishing live

members of society who practice involved parenting, strong community involvement, strong attachment to the workforce, and stable marriages in their own lives should recover the confidence to “preach what they practice,” as my AEI colleague Charles Murray has eloquently put it.

The fraction of workers required to hold a government-issued license has sextupled since the 1950s, from less than 5 percent to almost 30 percent today. It’s harder to switch into an industry, especially one in a new state, that’s larded with licensing.

States with more workers in routine-intensive tasks, like administrative duties, actually saw smaller declines in labor market fluidity.

Young people are more likely to switch jobs and move around.

If young people are tumbleweeds, adults are like trees: They grow roots, and they tend to stay put. So, as a country ages, it should become less dynamic.

. On Thursday, the Financial Times reported that productivity “is set to fall in the U.S. for the first time in more than three decades.”

Geographic mobility was very high in the U.S. in the 19th century. This was initially due to the settling of the western frontier. But even after the “closing" of the frontier in 1890, mobility remained high for decades, according to the economists Jason Long and Joseph Ferrie.

In every major city, there are many stores, health-care facilities, and insurance offices. By and large, less educated workers might be less willing to move between states because they assume every area has generally the same type of work.

somebody moving from a small farm to Washington, D.C., would have to visit the capital to understand its culture, job mix, pretty falls, and humid summers. But today’s potential movers are more informed and therefore more strategic:

Between 1880 and 1980, people generally moved from poor states to rich states, seeking the best jobs. “The creation of a single automobile plant—Ford’s River Rouge complex, completed in 1928—boosted Michigan’s population by creating more than 100,000 workers,” as Tim Noah reported. Migration promoted geographical equality.

Smaller counties used to lead the nation in the growth in new businesses even through the early 1990s. But this decade, small counties have lost businesses, while venture capital, the lifeblood of high-growth startups, clustered in a handful of metros.

Land-use policies prevent more middle-class families from living in productive areas, because housing becomes too expensive. Meanwhile, the rich can afford to cluster in a handful of metros where entrepreneurship is a norm, while business dynamism falls in the rest of the country.

most policy makers would confidently predict that a fourfold increase in a people’s material living standard would make them considerably happier.

Although the rate of layoffs dropped considerably in the early 2000s and unemployment started falling, Chinese people’s concerns about jobs and safety-net benefits persisted.

Yet there is no evidence that the Chinese people are, on average, any happier, according to an analysis of survey data that colleagues and I conducted. If anything, they are less satisfied than in 1990, and the burden of decreasing satisfaction has fallen hardest on the bottom third of the population in wealth. Satisfaction among Chinese in even the upper third has risen only moderately.

The transition to a more private economy in the 1990s abruptly overturned the iron rice bowl.

Before free-market reforms kicked in, most urban Chinese workers enjoyed what was called an “iron rice bowl”: permanent jobs and an extensive employer-provided safety net, which included subsidized food, housing, health care, child care, pensions and jobs for grown children. Life satisfaction during this period among urban Chinese, despite their much lower levels of income, was almost as high as in the developed world.

Evidence of a fraying social safety net is indicated by the decline in self-reported health among the bottom third: those reporting that their health was good or very good dropped to 44 percent, compared with 54 percent in 1990.

China’s transition has been similar in several respects to the transitions of countries in Central and Eastern Europe, for which we have similar life-satisfaction data.

The president’s allies are newly optimistic the brightening economic mood will further discredit the notion that a recession is necessary to tame inflation.

Despite the disagreement, senior White House aides still talk to Summers frequently and routinely seek his input. Summers has been to the White House several times this year alone, even as he continues to publicly hammer Biden’s industrial policy, student loan forgiveness and other economic programs.

Along with other centrist economists, Summers says inflation remains dangerously high, warning it could reaccelerate. The latest inflation report shows prices rising by 3.2 percent in July relative to one year ago, but a less volatile measure of price increases is still at 4.7 percent. The labor market remains strong not because Biden has defied the laws of economic reality, according to Summers, but because the battle against inflation is still far from won. Summers maintains the rescue plan sparked inflation that is at risk of becoming “entrenched” — a long-term problem for consumers and businesses.

“I don’t think anybody should reach any definitive judgments until we see how things play out,” Summers said in an interview. Summers said his predictions were based on standard macroeconomic models, and not meant to be interpreted as precise estimates. “The idea that bringing down inflation has nothing to do with increasing unemployment runs different from all conventional macroeconomic assessments.”

“The Democratic Party is currently split between people who thought the American Rescue Plan was appropriately sized and absolutely necessary — and those who think it was too big and had collateral effects that were quite damaging,” said Bill Galston, a policy analyst at the D.C.-based Brookings Institution who served in the Clinton administration. “This is a moral question, but it’s also a political question. If Joe Biden loses the election principally because of economic discontent over inflation and high prices, then a lot of Democrats will conclude it was not worth it.”

Summers has also made predictions that still do not appear to have been borne out, at least not yet. In a June 2022 speech at the London School of Economics, when inflation was at its 9.1 percent peak, Summers said the nation would “need” substantially higher levels of unemployment for inflation to come down.

“We need five years of unemployment above 5 percent to contain inflation — in other words, we need two years of 7.5 percent unemployment or five years of 6 percent unemployment or one year of 10 percent unemployment,

That same month, Summers and a co-author wrote that reducing job vacancies by 20 percent “requires, on average” a three percentage point increase in the unemployment rate. The number of job openings has fallen about 16 percent with no discernible jump in unemployment

In September 2022, Summers reiterated the point to Fortune: “I’m not sure you’re restraining inflation until you get the unemployment rate close to 5 percent, and to significantly restrain inflation you’re likely to need unemployment for some period at 6 percent.” The unemployment rate was 3.5 percent then and is the same level now.

In more recent interviews, Summers has defended his estimates by pointing out that inflation remains above the Fed’s 2 percent target. In particular, Summers emphasizes that it was always the case that transitory factors — such as soaring gas prices — pushed inflation up higher, to closer to 8 percent, but that the more stable “underlying” inflation was closer to 4.5 percent.

Even with lower overall inflation, Summers argues, underlying inflation remains largely unchanged — though the decline in transitory prices makes the problem appear to be going away.

“I think it’s fair to say — given how hot the economy is — the inflation performance at this point is better than I think many standard models would have predicted,” Summers said. “But I don’t think that all establishes we’re on a confident glide path to 2 percent with current rates of unemployment.”

More liberal economists argued that Summers misdiagnosed the cause of higher inflation, and therefore missed the cure. These economists contend that price spikes were overwhelmingly caused by supply chain disruptions, including lingering shocks from the pandemic and Russia’s invasion of Ukraine, not by too much government stimulus. As supply chains have normalized, so too has inflation.

Skanda Amarnath, executive director of the left-leaning think tank Employ America, emphasized that inflation is “now broadly decelerating,” not just in some idiosyncratic or transitory factors such as energy and used cars but across a large range of categories — household furnishings, technological equipment, wages, legal and professional services, and more.

“Remember when the experts said that to get inflation under control we needed to lower wages, and drive up unemployment? I never bought that,” Biden tweeted on July 20. “Instead, I focused on getting more Americans into the workforce, fixing our broken supply chains, and lowering costs.

Summers remains unconvinced about the rescue plan, pointing to substantial “unhappiness in the middle class about the state of the economy” over the last two years, mostly driven by inflation.

Today, China’s economy is roughly five times the size of India’s. The average citizen of China has an economic output of almost $13,000 a year, while the average Indian’s is less than $2,500

In human-development indicators, the contrast is even sharper, with infant mortality rates much higher in India, life expectancy lower and access to sanitation less prevalent.

The divergence, analysts say, comes down largely to China’s central consolidation of policy power, an earlier start in opening up its economy to market forces starting in the late 1970s, and its single-minded focus on export-led growth.

China took the first-mover advantage and then compounded its dominance as it pursued its plans relentlessly.

India started opening its quasi-socialist economy nearly a decade later. Its approach remained piecemeal, constrained by tricky coalition politics and the competing interests of industrialists, unions, farmers and factions across its social spectrum.

“There is that element where China is a natural role model — not for its politics, but for the sheer efficiency,”

The world now has a radically different power structure than it did in 1990. China has already made itself the world’s factory, all but closing off any path India could take to competitive dominance in export-driven manufacturing.

A “Make in India” campaign, inaugurated by Mr. Modi in 2014, has been stuttering ever since. Wage costs are lower in India than in China, but much of the work force is poorly educated, and the country has struggled to attract private investment with its restrictive labor laws and other impediments to business, including lingering protectionism.

service-sector growth can go only so far in reaping India’s promise of a demographic dividend, or blunt the peril of an unemployment crisis. Hundreds of millions of people can’t find jobs or are underemployed in work that pays too little.

the employment entrance exams at government agencies. These jobs are still coveted as private sector work remains limited and less stable.

650,000 students will apply for just 600 or 700 jobs in the national civil service this year.

The civil service is a tiny part of the work force, but it is prestigious — in part because it comes with job security for life. Most applicants spend years, and a big chunk of their family’s savings, and still fail to make the cut.

“Here there is no enterprise, no companies,” Mr. Kumar said. For any young person, “the question comes, ‘What next? What can I do?’”

The lessons Mr. Modi is taking from China are most apparent in his push for infrastructure development, investing heavily in highways, railways and airports to improve supply chains and connectivity.

India has quintupled its annual spending on roads and railways during Mr. Modi’s nine years in power

As Mr. Modi has boxed in opponents, cowed the press and overwhelmed independent elements of civil society, his government has lashed out at expressions of concern from abroad as evidence of a colonial plot to undermine India or a lack of understanding of India’s “civilizational” approach — both elements that diplomats had long heard in China’s own defensiveness.

All the while, the increasing militancy of his Hindu nationalist supporters, as arms of the state hang back and give perpetrators a free pass, exacerbates India’s religious fault lines and clashes that threaten to disrupt India’s rise.

Even as India tries to align its growing technological and economic capacity to capitalize on the Western tensions with China, it is determined to stick to its neutrality and maintain a balancing act between the United States and Russia. There is also the question of whether the West’s shift from China, the linchpin of the global economy, is a temporary recalibration or a more fundamental one.

“China took advantage of a favorable geopolitical moment to really transform itself by having access to technology, to capital, to markets led by the United States. It took advantage of that to build itself up,” Mr. Saran said. “This could be that moment for India.”

“I could not have done it sooner,” he says. “I don’t think anybody could have done it sooner. Because I was the first one.” 

By the late 1960s, he was managing TI’s integrated-circuit division. Before long, he was running the entire semiconductor group. 

He transferred to the Massachusetts Institute of Technology, where he studied mechanical engineering, earned his master’s degree and would have stayed for his Ph.D. if he hadn’t failed the qualifying exam. Instead, he got his first job in semiconductors and moved to Texas Instruments in 1958

he came along as the integrated circuit was being invented, and his timing couldn’t have been any better, as Chang belonged to the first generation of semiconductor geeks. He developed a reputation as a tenacious manager who could wring every possible improvement out of production lines, which put his career on the fast track.

Chang grew up dreaming of being a writer—a novelist, maybe a journalist—and he planned to major in English literature at Harvard University. But after his freshman year, he decided that what he actually wanted was a good job

“They talk about life-work balance,” he says. “That’s a term I didn’t even know when I was their age. Work-life balance. When I was their age, if there was no work, there was no life.” 

These days, TSMC is investing $40 billion to build plants in Arizona, but the project has been stymied by delays, setbacks and labor shortages, and Chang told me that some of TSMC’s young employees in the U.S. have attitudes toward work that he struggles to understand. 

Chang says he wouldn’t have taken the risk of moving to Taiwan if he weren’t financially secure. In fact, he didn’t take that same risk the first time he could have.

“The closer the industry match,” they wrote, “the greater the success rate.” 

By then, Chang knew that he wasn’t long for Texas Instruments. But his stock options hadn’t vested, so he turned down the invitation to Taiwan. “I was not financially secure yet,” he says. “I was never after great wealth. I was only after financial security.” For this corporate executive in the middle of the 1980s, financial security equated to $200,000 a year. “After tax, of course,” he says. 

Chang’s situation had changed by the time Li called again three years later. He’d exercised a few million dollars of stock options and bought tax-exempt municipal bonds that paid enough for him to be financially secure by his living standards. Once he’d achieved that goal, he was ready to pursue another one. 

“There was no certainty at all that Taiwan would give me the chance to build a great semiconductor company, but the possibility existed, and it was the only possibility for me,” Chang says. “That’s why I went to Taiwan.” 

Not long ago, a team of economists investigated whether older entrepreneurs are more successful than younger ones. By scrutinizing Census Bureau records and freshly available Internal Revenue Service data, they were able to identify 2.7 million founders in the U.S. who started companies between 2007 and 2014. Then they looked at their ages.

The average age of those entrepreneurs at the founding of their companies was 41.9. For the fastest-growing companies, that number was 45. The economists also determined that 50-year-old founders were almost twice as likely to achieve major success as 30-year-old founders, while the founders with the lowest chance of success were the ones in their early 20s

“Successful entrepreneurs are middle-aged, not young,” they wrote in their 2020 paper.  

Silicon Valley’s venture capitalists throw money at talented young entrepreneurs in the hopes they will start the next trillion-dollar company. They have plentiful energy, insatiable ambition and the vision to peek around corners and see the future. What they don’t typically have are mortgages, family obligations and other adult responsibilities to distract them or diminish their appetite for risk. Chang himself says that younger people are more innovative when it comes to science and technical subjects. 

But in business, older is better. Entrepreneurs in their 40s and 50s may not have the exuberance to believe they will change the world, but they have the experience to know how they actually can. Some need years of specialized training before they can start a company. In biotechnology, for example, founders are more likely to be college professors than college dropouts. Others require the lessons and connections they accumulate over the course of their careers. 

one more finding from their study of U.S. companies that helps explain the success of a chip maker in Taiwan. It was that prior employment in the area of their startups—both the general sector and specific industry—predicted “a vastly higher probability” of success.

Chang was such a workaholic that he made sales calls on his honeymoon and had no patience for those who didn’t share his drive

Morris Chang had 30 years of experience in his industry when he decided to uproot his life and move to another continent. He knew more about semiconductors than just about anyone on earth—and certainly more than anyone in Taiwan. As soon as he started his job at the Industrial Technology Research Institute, Chang was summoned to K.T. Li’s office and given a second job. “He felt I should start a semiconductor company in Taiwan,”

“I decided right away that this could not be the kind of great company that I wanted to build at either Texas Instruments or General Instrument,”

TI handled every part of chip production, but what worked in Texas would not translate to Taiwan. The only way that he could build a great company in his new home was to make a new sort of company altogether, one with a business model that would exploit the country’s strengths and mitigate its many weaknesses.

Chang determined that Taiwan had precisely one strength in the chip supply chain. The research firm that he was now running had been experimenting with semiconductors for the previous 10 years. When he studied that decade of data, Chang was pleasantly surprised by Taiwan’s yields, the percentage of working chips on silicon wafers. They were almost twice as high in Taiwan as they were in the U.S., he said. 

“People were ingrained in thinking the secret sauce of a successful semiconductor company was in the wafer fab,” Campbell told me. “The transition to the fabless semiconductor model was actually pretty obvious when you thought about it. But it was so against the prevailing wisdom that many people didn’t think about it.” 

Taiwan’s government took a 48% stake, with the rest of the funding coming from the Dutch electronics giant Philips and Taiwan’s private sector, but Chang was the driving force behind the company. The insight to build TSMC around such an unconventional business model was born from his experience, contacts and expertise. He understood his industry deeply enough to disrupt it. 

“TSMC was a business-model innovation,” Chang says. “For innovations of that kind, I think people of a more advanced age are perhaps even more capable than people of a younger age.”

the personal philosophy that he’d developed over the course of his long career. “To be a partner to our customers,” he says. That founding principle from 1987 is the bedrock of the foundry business to this day, as TSMC says the key to its success has always been enabling the success of its customers.  

TSMC manufactures chips in iPhones, iPads and Mac computers for Apple, which manufactures a quarter of TSMC’s net revenue. Nvidia is often called a chip maker, which is curious, because it doesn’t make chips. TSMC does. 

Churning out identical copies of a single chip for an iPhone requires one TSMC fab to produce more than a quintillion transistors—that is, one million trillions—every few months. In a year, the entire semiconductor industry produces “more transistors than the combined quantity of all goods produced by all other companies, in all other industries, in all human history,” Miller writes. 

I asked how he thought about success when he moved to Taiwan. “The highest degree of success in 1985, according to me, was to build a great company. A lower degree of success was at least to do something that I liked to do and I wanted to do,” he says. “I happened to achieve the highest degree of success that I had in mind.” 

But labor economists have long questioned this view

the labor force — is people. And because workers are people, wages are not, in fact, like the price of butter, and how much workers are paid depends as much on social forces and political power as it does on simple supply and demand.

What’s the evidence? First, there is what actually happens when minimum wages are increased. Many states set minimum wages above the federal level, and we can look at what happens when a state raises its minimum while neighboring states do no

the overwhelming conclusion from studying these natural experiments is that moderate increases in the minimum wage have little or no negative effect on employment.

Then there’s history. It turns out that the middle-class society we used to have didn’t evolve as a result of impersonal market forces — it was created by political action, and in a brief period of time

America was still a very unequal society in 1940, but by 1950 it had been transformed by a dramatic reduction in income disparities, which the economists Claudia Goldin and Robert Margo labeled the Great Compression.

How did that happen?

Part of the answer is direct government intervention, especially during World War II, when government wage-setting authority was used to narrow gaps between the best paid and the worst paid. Part of it, surely, was a sharp increase in unionization. Part of it was the full-employment economy of the war years, which created very strong demand for workers and empowered them to seek higher pay.

the Great Compression didn’t go away as soon as the war was over. Instead, full employment and pro-worker politics changed pay norms, and a strong middle class endured for more than a generation. Oh, and the decades after the war were also marked by unprecedented economic growth.

Walmart is under political pressure over wages so low that a substantial number of employees are on food stamps and Medicaid. Meanwhile, workers are gaining clout thanks to an improving labor market, reflected in increasing willingness to quit bad jobs.

its justification for the move echoes what critics of its low-wage policy have been saying for years: Paying workers better will lead to reduced turnover, better morale and higher productivity.

What this means, in turn, is that engineering a significant pay raise for tens of millions of Americans would almost surely be much easier than conventional wisdom suggests. Raise minimum wages by a substantial amount; make it easier for workers to organize, increasing their bargaining power; direct monetary and fiscal policy toward full employment, as opposed to keeping the economy depressed out of fear that we’ll suddenly turn into Weimar Germany. It’s not a hard list to implement — and if we did these things we could make major strides back toward the kind of society most of us want to live in.

The point is that extreme inequality and the falling fortunes of America’s workers are a choice, not a destiny imposed by the gods of the market. And we can change that choice if we want to.

the economic security of most Americans dwindled, and the legitimacy of the system was called into question. One consequence has been the rise of the far right; another is Donald Trump.

Germany insisted that the struggling countries had to practice austerity in order to restore the confidence of private financial markets. In a deep recession, even orthodox economists at the International Monetary Fund soon recognized that austerity was a perverse recipe for economic recovery.

Europe, because of Germany’s worries that these policies would lead to inflation, had no way to extend credit to struggling nations or to raise money through the sale of bonds, which would have allowed the ECB to provide debt relief or to invest in public services.

The political result was the same on both sides of the Atlantic—declining prospects for ordinary people, animus toward elites, and the rise of ultra-nationalism

Not so in Europe. Parties such as the German Social Democratic Party, the British Labour Party, and the French Socialists disgraced themselves as co-sponsors of the neoliberal formula that brought down the economy.

In nation after nation, the main opposition to the party of Davos is neofascism.

In his masterful narrative, the economic historian Adam Tooze achieves several things that no other single author has quite accomplished. Tooze has managed to explain a hugely complex global crisis in its multiple dimensions, and his book combines cogent analysis with a fascinating history of the political and economic particulars

when the collapse came, it was “a financial crisis triggered by the humdrum market for American real estate.”

the collapse reinforced the financial supremacy of Washington and New York. “Far from withering away,” he writes, “the Fed’s response gave an entirely new dimension to the global dollar.”

When the entire structure of borrowed money collapsed, the losses more than wiped out all the capital of the banking system—not just in the US but in Europe, because of the intimate interconnection (and contagion) of American and European banks. Had the authorities just stood by, Tooze writes, the collapse would have been far more severe than the Great Depression:

While insisting to Congress that the emergency response was mainly to shore up US finance, Bernanke turned the Fed into the world’s central bank. “Through so-called liquidity swap lines, the Fed licensed a hand-picked group of core central banks to issue dollar credits on demand,” Tooze writes. In other words, the Fed simply created enough dollars, running well into the trillions, to prevent the global economy from collapsing for lack of credit.

Bernanke instigated government action on an unimagined scale to prop up a private system that supposedly did not need the state

Using deposit guarantees, loans to banks, outright capital transfers, and purchases of nearly worthless securities, the Fed and the Treasury recapitalized the banking system. To camouflage what was at work, officials invented unlimited credit pipelines with disarmingly technical names.

The blandly named policy of quantitative easing, which drove interest rates down to almost zero, was a euphemism for Fed purchases of immense quantities of private and government securities.

The crisis, Tooze writes, “was a devastating blow to the complacent belief in the great moderation, a shocking overturning of the prevailing laissez-faire ideology.” And yet the ideology prevailed

In a reversal of New Deal priorities, most of the relief went to the biggest banks, while smaller banks and homeowners were allowed to go under

Banks were permitted to invent complex provisional loan “modifications” with opaque terms that favored lenders, rather than using their government subsidies to provide refinancing to reduce homeowner debts

How did a nominally center-left administration, elected during a financial crisis caused by right-wing economic ideology and policy, end up in this situation?

Turning to Europe, Tooze explores the fatal combination of Germany’s demands for austerity with the structural weakness of the ECB and the vulnerability of the euro.

Portugal or Greece now enjoyed interest rates that were only slightly higher than Germany’s, and markets failed to take account of the risk of default, which was more serious than that of devaluation.

instead of treating the Greek situation as a crisis to be contained and helping a genuinely reformist new government find its footing, Brussels and Berlin treated Greece as an object lesson in profligacy and an opportunity to insist on punitive terms for financial aid

A central player in this tragedy was the European Central Bank. Tooze does a fine job of explaining the delicate dance between the bank’s leaders and its real masters in Germany. Since Germany opposed continent-wide recovery spending, the bank could only pursue monetary policy. The model was the Fed. Yet while the Fed has a congressional “dual mandate” to target both price stability and high employment, the ECB’s charter allowed for price stability only

The ECB, with the consent of the Germans, came up with one of those bland-sounding names, Outright Monetary Transactions, for its direct purchases of government bonds. But the program, at the insistence of the Germans, was restricted to nations in compliance with Merkel’s rigid fiscal terms, which limited national deficits and debts. In other words, the money could not go to the very nations where it was needed most, since the hardest-hit countries had to borrow heavily to get themselves out of the recession

Reading Tooze, you realize that it’s a miracle that the EU and the euro survived at all—but they did so at terrible human cost.

the ideal of liberalized trade, and the use of trade treaties to promote deregulation or privatized regulation of finance, is a major element of the story of how neoliberal hegemony promoted the eventual collapse. But except for a passing reference, trade and globalized deregulation get little mention here.

he has almost nothing to say about Janet Yellen. Her nomination as Fed chair in 2013 to succeed Bernanke was an epochal event and an improbable defeat for the proponents of austerity, deregulation, and bank bailouts who influenced Obama’s policymaking. Yellen, a left-liberal economist specializing in labor markets, was the only left-of-center Fed chair other then FDR’s chairman Marriner Eccles. She also believed in tough regulation of banks. The extension of quantitative easing well beyond its intended end was substantially due to Yellen’s concern about wages and employment, and not just price stability, since low interest rates can also help promote recovery.

Tooze ends the book with a short chapter called “The Shape of Things to Come,” mainly on the ascent of China, the one nation that avoided all the shibboleths of economic and political liberalism, though it also, of course, does not have a political democracy.

There’s been a lot of cheap money floating around in the past decade, thanks to low interest rates and Federal Reserve policy. Much of that has gone into financial assets, jacking up the wealth of those who own them.

“Eighty percent of the stock is owned by 20% of the people,” he said. (The reality is actually more extreme than that, with the richest 10% holding 84% of equity wealth, according to economist Edward Wolff.)

one of many changes wrought by the pandemic is that it’s shown how aggressive government spending to put cash in ordinary Americans’ pockets can do a lot of good. What if there was an economy where households relied less on wealth trickling down from asset owners? That would be something for Wall Street to be nervous about.

Last month, it eclipsed Walmart as the most valuable retailer in the country, with a market valuation of $250 billion, and Forbes deemed Mr. Bezos the fifth-wealthiest person on earth.

Others who cycled in and out of the company said that what they learned in their brief stints helped their careers take off. And more than a few who fled said they later realized they had become addicted to Amazon’s way of working.

Amazon may be singular but perhaps not quite as peculiar as it claims. It has just been quicker in responding to changes that the rest of the work world is now experiencing: data that allows individual performance to be measured continuously, come-and-go relationships between employers and employees, and global competition in which empires rise and fall overnight. Amazon is in the vanguard of where technology wants to take the modern office: more nimble and more productive, but harsher and less forgiving.

“Organizations are turning up the dial, pushing their teams to do more for less money, either to keep up with the competition or just stay ahead of the executioner’s blade,”

At its best, some employees said, Amazon can feel like the Bezos vision come to life, a place willing to embrace risk and strengthen ideas by stress test. Employees often say their co-workers are the sharpest, most committed colleagues they have ever met, taking to heart instructions in the leadership principles like “never settle” and “no task is beneath them.”

In contrast to companies where declarations about their philosophy amount to vague platitudes, Amazon has rules that are part of its daily language and rituals, used in hiring, cited at meetings and quoted in food-truck lines at lunchtime

“You can work long, hard or smart, but at Amazon.com you can’t choose two out of three,” Mr. Bezos wrote in his 1997 letter to shareholders

mazon, though, offers no pretense that catering to employees is a priority. Compensation

As the company has grown, Mr. Bezos has become more committed to his original ideas, viewing them in almost moral terms, those who have worked closely with him say. “My main job today: I work hard at helping to maintain the culture,”

perhaps the most distinctive is his belief that harmony is often overvalued in the workplace — that it can stifle honest critique and encourage polite praise for flawed ideas. Instead, Amazonians are instructed to “disagree and commit” (

According to early executives and employees, Mr. Bezos was determined almost from the moment he founded Amazon in 1994 to resist the forces he thought sapped businesses over time — bureaucracy, profligate spending, lack of rigor. As the company grew, he wanted to codify his ideas about the workplace, some of them proudly counterintuitive, into instructions simple enough for a new worker to understand, general enough to apply to the nearly limitless number of businesses he wanted to enter and stringent enough to stave off the mediocrity he feared.

Company veterans often say the genius of Amazon is the way it drives them to drive themselves. “If you’re a good Amazonian, you become an Amabot,” said one employee, using a term that means you have become at one with the system.

But in its offices, Amazon uses a self-reinforcing set of management, data and psychological tools to spur its tens of thousands of white-collar employees to do more and more. “The company is running a continual performance improvement algorithm on its staff,” said Amy Michaels, a former Kindle marketer.

As the newcomers acclimate, they often feel dazzled, flattered and intimidated by how much responsibility the company puts on their shoulders and how directly Amazon links their performance to the success of their assigned projects

Every aspect of the Amazon system amplifies the others to motivate and discipline the company’s marketers, engineers and finance specialists: the leadership principles; rigorous, continuing feedback on performance; and the competition among peers who fear missing a potential problem or improvement and race to answer an email before anyone else.

many others said the culture stoked their willingness to erode work-life boundaries, castigate themselves for shortcomings (being “vocally self-critical” is included in the description of the leadership principles) and try to impress a company that can often feel like an insatiable taskmaster.

“One time I didn’t sleep for four days straight,” said Dina Vaccari, who joined in 2008 to sell Amazon gift cards to other companies and once used her own money, without asking for approval, to pay a freelancer in India to enter data so she could get more done. “These businesses were my babies, and I did whatever I could to make them successful.”

To prod employees, Amazon has a powerful lever: more data than any retail operation in history. Its perpetual flow of real-time, ultradetailed metrics allows the company to measure nearly everything its customers do:

Amazon employees are held accountable for a staggering array of metrics, a process that unfolds in what can be anxiety-provoking sessions called business reviews, held weekly or monthly among various teams. A day or two before the meetings, employees receive printouts, sometimes up to 50 or 60 pages long, several workers said. At the reviews, employees are cold-called and pop-quizzed on any one of those thousands of numbers.

Ms. Willet’s co-workers strafed her through the Anytime Feedback Tool, the widget in the company directory that allows employees to send praise or criticism about colleagues to management. (While bosses know who sends the comments, their identities are not typically shared with the subjects of the remarks.) Because team members are ranked, and those at the bottom eliminated every year, it is in everyone’s interest to outperform everyone else.

many workers called it a river of intrigue and scheming. They described making quiet pacts with colleagues to bury the same person at once, or to praise one another lavishly. Many others, along with Ms. Willet, described feeling sabotaged by negative comments from unidentified colleagues with whom they could not argue

The rivalries at Amazon extend beyond behind-the-back comments. Employees say that the Bezos ideal, a meritocracy in which people and ideas compete and the best win, where co-workers challenge one another “even when doing so is uncomfortable or exhausting,” as the leadership principles note, has turned into a world of frequent combat

Resources are sometimes hoarded. That includes promising job candidates, who are especially precious at a company with a high number of open positions. To get new team members, one veteran said, sometimes “you drown someone in the deep end of the pool,” then take his or her subordinates. Ideas are critiqued so harshly in meetings at times that some workers fear speaking up.

David Loftesness, a senior developer, said he admired the customer focus but could not tolerate the hostile language used in many meetings, a comment echoed by many others.

Each year, the internal competition culminates at an extended semi-open tournament called an Organization Level Review, where managers debate subordinates’ rankings, assigning and reassigning names to boxes in a matrix projected on the wall. In recent years, other large companies, including Microsoft, General Electric and Accenture Consulting, have dropped the practice — often called stack ranking, or “rank and yank” — in part because it can force managers to get rid of valuable talent just to meet quotas.

Molly Jay, an early member of the Kindle team, said she received high ratings for years. But when she began traveling to care for her father, who was suffering from cancer, and cut back working on nights and weekends, her status changed. She was blocked from transferring to a less pressure-filled job, she said, and her boss told her she was “a problem.” As her father was dying, she took unpaid leave to care for him and never returned to Amazon.

“When you’re not able to give your absolute all, 80 hours a week, they see it as a major weakness,” she said.

A woman who had thyroid cancer was given a low performance rating after she returned from treatment. She says her manager explained that while she was out, her peers were accomplishing a great deal. Another employee who miscarried twins left for a business trip the day after she had surgery. “I’m sorry, the work is still going to need to get done,” she said her boss told her. “From where you are in life, trying to start a family, I don’t know if this is the right place for you.”

A woman who had breast cancer was told that she was put on a “performance improvement plan” — Amazon code for “you’re in danger of being fired” — because “difficulties” in her “personal life” had interfered with fulfilling her work goals. Their accounts echoed others from workers who had suffered health crises and felt they had also been judged harshly instead of being given time to recover.

Amazon retains new workers in part by requiring them to repay a part of their signing bonus if they leave within a year, and a portion of their hefty relocation fees if they leave within two years.

In interviews, 40-year-old men were convinced Amazon would replace them with 30-year-olds who could put in more hours, and 30-year-olds were sure that the company preferred to hire 20-somethings who would outwork them. A

A 2013 survey by PayScale, a salary analysis firm, put the median employee tenure at one year, among the briefest in the Fortune 500

Recruiters, though, also say that other businesses are sometimes cautious about bringing in Amazon workers, because they have been trained to be so combative. The derisive local nickname for Amazon employees is “Amholes” — pugnacious and work-obsessed.

By the time the dust settles in three years, Amazon will have enough space for 50,000 employees or so, more than triple what it had as recently as 2013.

just as Jeff Bezos was able to see the future of e-commerce before anyone else, she added, he was able to envision a new kind of workplace: fluid but tough, with employees staying only a short time and employers demanding the maximum.

“Amazon is driven by data,” said Ms. Pearce, who now runs her own Seattle software company, which is well stocked with ex-Amazonians. “It will only change if the data says it must — when the entire way of hiring and working and firing stops making economic sense.”

The unemployment rate climbed to its apex of 9.9 percent 23 months after the formal start of the Great Recession. Just a few weeks into the domestic coronavirus pandemic, and just days into the imposition of emergency measures to arrest it, nearly 20 percent of workers report that they have lost hours or lost their job.

Absent a strong governmental response, the unemployment rate seems certain to reach heights not seen since the Great Depression or even the miserable late 1800s. A 20 percent rate is not impossible.

The economy is not tipping into a jobs crisis. It is exploding into one. Given the trajectory of state reports, it is certain that the country will set a record for new jobless claims next week, not only in raw numbers but also in the share of workers laid off. The total is expected to be in the range of 1.5 million to 2.5 million, and to climb from there.

The economy had been plodding along in its late expansion, growing at a 2 or 3 percent annual pace. Now, private forecasters expect it will contract at something like a 15 percent pace, though nobody really know

The markets are not normal, either. The stock market lost 20 percent of its value in just 21 days—the fastest and sharpest bear market on record, faster than 1929, faster than 1987, 10 times faster than 2007.

Yet in the real economy, everything has halted, frozen in place. This is not a recession. It is an ice age.

On the present trajectory, it will kill, by late April, more Americans than Vietnam. Having earlier promised that casualties could be held near zero, Trump now claims he will have done a “very good job” if the toll is held below 200,000 dead.

The United States is on trajectory to suffer more sickness, more dying, and more economic harm from this virus than any other comparably developed country.

The loss of stockpiled respirators to breakage because the federal government let maintenance contracts lapse in 2018 is Trump’s fault. The failure to store sufficient protective medical gear in the national arsenal is Trump’s fault

That states are bidding against other states for equipment, paying many multiples of the precrisis price for ventilators, is Trump’s fault. Air travelers summoned home and forced to stand for hours in dense airport crowds alongside infected people? That was Trump’s fault too

Trump failed. He is failing. He will continue to fail. And Americans are paying for his failures.

The lying about the coronavirus by hosts on Fox News and conservative talk radio is Trump’s fault: They did it to protect him

The false hope of instant cures and nonexistent vaccines is Trump’s fault, because he told those lies to cover up his failure to act in time.

The severity of the economic crisis is Trump’s fault; things would have been less bad if he had acted faster instead of sending out his chief economic adviser and his son Eric to assure Americans that the first stock-market dips were buying opportunities.

The fact that so many key government jobs were either empty or filled by mediocrities? Trump’s fault. The insertion of Trump’s arrogant and incompetent son-in-law as commander in chief of the national medical supply chain? Trump’s fault.

sooner or later, every president must face a supreme test, a test that cannot be evaded by blather and bluff and bullying.

Ten weeks of insisting that the coronavirus is a harmless flu that would miraculously go away on its own? Trump’s fault again. The refusal of red-state governors to act promptly, the failure to close Florida and Gulf Coast beaches until late March? That fault is more widely shared, but again, responsibility rests with Trump: He could have stopped it, and he did not.

Those lost weeks also put the United States—and thus the world—on the path to an economic collapse steeper than any in recent memory.

It’s a good guess that the unemployment rate had reached 13 percent by April 3. It may peak at 20 percent, perhaps even higher, and threatens to stay at Great Depression–like levels at least into 2021, maybe longer.

This country—buffered by oceans from the epicenter of the global outbreak, in East Asia; blessed with the most advanced medical technology on Earth; endowed with agencies and personnel devoted to responding to pandemics—could have and should have suffered less than nations nearer to China

Through the early weeks of the pandemic, when so much death and suffering could still have been prevented or mitigated, Trump joined passivity to fantasy. In those crucial early days, Trump made two big wagers. He bet that the virus could somehow be prevented from entering the United States by travel restrictions. And he bet that, to the extent that the virus had already entered the United States, it would burn off as the weather warmed.

If Trump truly was so trustingly ignorant as late as January 22, the fault was again his own. The Trump administration had cut U.S. public-health staff operating inside China by two-thirds, from 47 in January 2017 to 14 by 2019, an important reason it found itself dependent on less-accurate information from the World Health Organization. In July 2019, the Trump administration defunded the position that embedded an epidemiologist inside China’s own disease-control administration, again obstructing the flow of information to the United States.

Yet even if Trump did not know what was happening, other Americans did. On January 27, former Vice President Joe Biden sounded the alarm about a global pandemic in an op-ed in USA Today.

Because Trump puts so much emphasis on this point, it’s important to stress that none of this is true. Trump did not close the borders early—in fact, he did not truly close them at all.

Trump’s actions did little to stop the spread of the virus. The ban applied only to foreign nationals who had been in China during the previous 14 days, and included 11 categories of exceptions. Since the restrictions took effect, nearly 40,000 passengers have entered the United States from China, subjected to inconsistent screenings, The New York Times reported.

At a House hearing on February 5, a few days after the restrictions went into effect, Ron Klain—who led the Obama administration’s efforts against the Ebola outbreak—condemned the Trump policy as a “travel Band-Aid, not a travel ban.”

The president’s top priority through February 2020 was to exact retribution from truth-tellers in the impeachment fight.

Intentionally or not, Trump’s campaign of payback against his perceived enemies in the impeachment battle sent a warning to public-health officials: Keep your mouth shut

Throughout the crisis, the top priority of the president, and of everyone who works for the president, has been the protection of his ego

Denial became the unofficial policy of the administration through the month of February, and as a result, that of the administration’s surrogates and propagandists.

That same day, Secretary of State Mike Pompeo scolded a House committee for daring to ask him about the coronavirus. “We agreed that I’d come today to talk about Iran, and the first question today is not about Iran.”

The president’s lies must not be contradicted. And because the president’s lies change constantly, it’s impossible to predict what might contradict him.

During the pandemic, this psychological deformity has mutated into a deadly strategic vulnerability for the United States.

For three-quarters of his presidency, Trump has taken credit for the economic expansion that began under President Barack Obama in 2010. That expansion accelerated in 2014, just in time to deliver real prosperity over the past three years

The harm done by Trump’s own initiatives, and especially his trade wars, was masked by that continued growth.

The economy Trump inherited became his all-purpose answer to his critics. Did he break laws, corrupt the Treasury, appoint cronies, and tell lies? So what? Unemployment was down, the stock market up.

On February 28, very few Americans had heard of an estimated death toll of 35,000 to 40,000, but Trump had heard it. And his answer to that estimate was: “So far, we have lost nobody.” He conceded, “It doesn’t mean we won’t.” But he returned to his happy talk. “We are totally prepared.” And as always, it was the media's fault. “You hear 35 and 40,000 people and we’ve lost nobody and you wonder, the press is in hysteria mode.”

on February 28, it was still not too late to arrange an orderly distribution of medical supplies to the states, not too late to coordinate with U.S. allies, not too late to close the Florida beaches before spring break, not too late to bring passengers home from cruise lines, not too late to ensure that state unemployment-insurance offices were staffed and ready, not too late for local governments to get funds to food banks, not too late to begin social distancing fast and early

Stay-at-home orders could have been put into effect on March 1, not in late March and early April.

So much time had been wasted by the end of February. So many opportunities had been squandered. But even then, the shock could have been limited. Instead, Trump and his inner circle plunged deeper into two weeks of lies and denial, both about the disease and about the economy.

Kudlow repeated his advice that it was a good time to buy stocks on CNBC on March 6 after another bad week for the financial markets. As late as March 9, Trump was still arguing that the coronavirus would be no worse than the seasonal flu.

The overwhelmed president responded by doing what comes most naturally to him at moments of trouble: He shifted the blame to others.

Trump’s instinct to dodge and blame had devastating consequences for Americans. Every governor and mayor who needed the federal government to take action, every science and medical adviser who hoped to prevent Trump from doing something stupid or crazy, had to reckon with Trump’s psychic needs as their single biggest problem.

Governors got the message too. “If they don’t treat you right, I don’t call,” Trump explained at a White House press briefing on March 27. The federal response has been dogged by suspicions of favoritism for political and personal allies of Trump. The District of Columbia has seen its requests denied, while Florida gets everything it asks for.

The Trump administration is allocating some supplies through the Federal Emergency Management Agency, but has made the deliberate choice to allow large volumes of crucial supplies to continue to be distributed by commercial firms to their clients. That has left state governments bidding against one another, as if the 1787 Constitution had never been signed, and we have no national government.

Around the world, allies are registering that in an emergency, when it matters most, the United States has utterly failed to lead

s the pandemic kills, as the economic depression tightens its grip, Donald Trump has consistently put his own needs first. Right now, when his only care should be to beat the pandemic, Trump is renegotiating his debts with his bankers and lease payments with Palm Beach County.

He has never tried to be president of the whole United States, but at most 46 percent of it, to the extent that serving even the 46 percent has been consistent with his supreme concerns: stealing, loafing, and whining.

Now he is not even serving the 46 percent. The people most victimized by his lies and fantasies are the people who trusted him, the more conservative Americans who harmed themselves to prove their loyalty to Trump.

Governments often fail. From Pearl Harbor to the financial crisis of 2008, you can itemize a long list of missed warnings and overlooked dangers that cost lives and inflicted hardship. But in the past, Americans could at least expect public spirit and civic concern from their presidents.

Trump has mouthed the slogan “America first,” but he has never acted on it. It has always been “Trump first.” His business first. His excuses first. His pathetic vanity first.

rump has taken millions in payments from the Treasury. He has taken millions in payments from U.S. businesses and foreign governments. He has taken millions in payments from the Republican Party and his own inaugural committee. He has taken so much that does not belong to him, that was unethical and even illegal for him to take. But responsibility? No, he will not take that.

Yet responsibility falls upon Trump, whether he takes it or not. No matter how much he deflects and insults and snivels and whines, this American catastrophe is on his hands and on his head.

“In some ways Amazon doesn’t really want to be a retailer,” said Juozas Kaziukenas of Marketplace Pulse, an e-commerce consultant. “It doesn’t want to do curation or offer human interaction,” two of the essential qualities of retail for centuries.

Offering tens of millions of items to hundreds of millions of customers prevents any human touch — but opens up a lot of space for advertising, and for confusion and duplicity.

It’s the paradox of plenty: The more things there are to buy, the more difficult it is to find the right thing among the plethora of ads and competition, new material and secondhand, quality and garbage.

“Amazon knows what I buy, how often I buy, what I search for,” Mr. Kaziukenas said. “But decades after it launched, it can’t answer a simple question — what would Juozas like to buy? Instead it shows me thousands of deals, with some basic filters like category and price, and hopes I will find what I like. Amazon is so much work.”

Once upon a time, when the dot-coms roamed the earth, the Amazon bookstore was a simple place. It had knowledgeable human editors, bountiful discounts and delivery that was speedy for the era. For the book-obsessed, it offered every publisher’s backlist, obscure but irresistible titles that had previously been difficult to discover and acquire.