History Readings

the delay might accelerate the unraveling of employer-sponsored health coverage:If you like Obamacare, and you want it to work, you don’t need the employer mandate. Democrats put the employer mandate in Obamacare because the President was worried that, without a mandate, employers would dump coverage, violating his oft-repeated promise that “if you like your plan, you can keep it.

(the “American Job Protection Act”) is that one can very easily imagine it being taken up by left-wing Democrats as well as right-wing Republicans, albeit for different reasons.

delaying the employer mandate could lead, ultimately, to its repeal, which would do much to transition our insurance market from an employer-sponsored one to an individually-purchased one.

If the employer mandate were to ultimately be repealed, or never implemented, today’s news may turn out to be one of the most significant developments in health care policy in recent memory.

Even if the Obama administration’s delay lasts for only one year, that delay will give firms time to restructure their businesses to avoid offering costly coverage, leading to an expansion of the individual insurance market and a shrinkage of the employer-sponsored market.

If we transition from employer-provided coverage to tightly-regulated state-based insurance markets, it is possible that the insurance business will become even more rigid than it already is — this is why I’ve called for a national exchange as a kind of escape hatch. And of course if the private insurance market becomes more dysfunctional, a single-payer, Medicare-for-all alternative will become more politically attractive. 

the real America is, in fact, a nation of metropolitan areas, not small towns.

two-thirds of Americans live in metro areas with half-a-million or more residents.

we are, objectively, the most class-ridden nation in the Western world — the country where children of the wealthy are most likely to inherit their parents’ status. It’s also a place where everyone celebrates the right to vote, yet many politicians work hard to disenfranchise the poor and nonwhite.

Almost none of us are farmers; few of us hunt; by and large, we sit in cubicles on weekdays and visit shopping malls on our days off.

We’re no longer an Anglo-Saxon nation; we’re only around half-Protestant; and we’re increasingly nonwhite.

America remains uniquely democratic in its mannerisms, in the way people from different classes interact.

we are still, at root, a nation that believes in democracy, even if we don’t always act on that belief.

The wealthy may defend their privileges, but given the temper of America, they have to pretend that they’re doing no such thing. The block-the-vote people know what they’re doing, but they also know that they mustn’t say it in so many words. In effect, both groups know that the nation will view them as un-American unless they pay at least lip service to democratic ideals

for many consumers there is simply no other way to get many books than through Amazon. And for some books, Amazon is, in effect, beginning to raise prices.

even books by Nobel Prize winners are now being sold at prices that minimally diverge from the bookstores that were driven out of business in the last decade.

Stockholders have pushed Amazon shares up to a record level, even though the company makes only pocket change. Profits were always promised tomorrow. Small publishers wonder if tomorrow is finally here, and they are the ones who will pay for it.

With greater accuracy, for example, marketers can comb large databases of consumer behavior to get more precise information on buying habits. And improvements in facial recognition are likely to make surveillance technology cheaper and more commonplace.

Modern artificial neural networks are composed of an array of software components, divided into inputs, hidden layers and outputs. The arrays can be “trained” by repeated exposures to recognize patterns like images or sounds.

A new intelligence assessment of global trends projects that China will outstrip the United States as the leading economic power before 2030, but that America will remain an indispensable world leader

“The growth of the global middle class constitutes a tectonic shift,” the study says, adding that billions of people will gain new individual power as they climb out of poverty. “For the first time, a majority of the world’s population will not be impoverished, and the middle classes will be the most important social and economic sector in the vast majority of countries around the world.”

half of the world’s population will probably be living in areas that suffer from severe shortages of fresh water, meaning that management of natural resources will be a crucial component of global national security efforts.

terrorists could mount a computer-network attack in which the casualties would be measured not by the hundreds or thousands killed but by the millions severely affected by damaged infrastructure, like electrical grids being taken down.

At least 15 countries are “at high risk of state failure” by 2030, the report predicts, among them Afghanistan and Pakistan, but also Burundi, Rwanda, Somalia, Uganda and Yemen.

The best-case situation for global security until 2030, according to the study, would be a growing political partnership between the United States and China.

The worst-case situation envisions a stalling of economic globalization that would preclude advancement of financial well-being around the world. That would be a likely outcome after an outbreak of a health pandemic that, even if short-lived, would result in closed borders and economic isolationism.

Mr. Burrows noted that the audiences in China were far more accepting of the American intelligence assessments — both those predicting China’s economic ascendancy and those warning of political dangers if there was no reform of governance in Beijing — than were audiences in Russia.

To assess the validity of this study, the research and analysis team graded its past work on global trends, an effort undertaken every four years since 1996. Past studies, it found, underestimated the speed with which changes arrived on the global scene.

previous assessments should have paid greater attention to ideology.

The risk of conflict within a state — like a civil war or an insurgency — is expected to decline in Latin America, but will remain high in sub-Saharan Africa, in parts of the Middle East and South Asia, and in some Asia-Pacific island hot spots

Most worrisome — and already a part of the global security dynamic — is an assessment that future wars in Asia and the Middle East could include nuclear weapons.

Other important demographic trends will be aging populations in Europe, Japan, South Korea and Taiwan, which could slow their economies further

“the health of the global economy increasingly will be linked to how well the developing world does — more so than the traditional West.”

In addition to China, the developing nations that “will become especially important to the global economy” include Brazil, Colombia, India, Indonesia, Nigeria, South Africa and Turkey.

There were 606 firearm-related accidents in the same year -- about 5% of the number of intentional gun deaths.

There are about 310 million guns in the country. About 40% of households have them, a fraction that has been slowly declining over the last few decades, down from about 50% in the 1960s.

current federal gun regulation (see above) contains an enormous loophole: While businesses that deal in guns are required to keep records and run background checks, guns can be transferred between private citizens without any record. This makes straw purchases easy.

The most comprehensive public list of U.S. mass shootings is the spreadsheet of 62 incidents from 1982-2012, compiled by Mother Jones. Their list shows:

Mass shootings happen all over the country. Killers used a semi-automatic handgun in 75% of incidents, which is about the same percentage as the 72% in overall gun violence. Killers used an assault weapon in 40% of incidents. This is much higher than overall assault weapon use in crimes, estimated at less than 2%. The guns were obtained legally in 79% of mass shootings. Many of the shooters showed signs of mental illness, but in only two cases was there a prior diagnosis. There were no cases where an armed civilian fired back.

they account for only a small fraction of gun violence in the United States.

It's also possible that gun ownership is a deterrent to crime, because criminals must consider the possibility that their intended victim is armed.

. In 2010, different researchers re-examined Lott's work, the NRC report, and additional data up through 2006, and reaffirmed that there is no evidence that right-to-carry laws reduce crime.

The most comprehensive estimate is that a 10% reduction in U.S. households with guns would result in a 3% reduction in homicides.

gun ownership has gotten much more concentrated among fewer households: if you own one gun, you probably own several

There's abundant evidence that under the current system, guns flow easily between legal and illegal markets.

guns are used to commit a crime about 10 times as often as they are used for self-defense.

Won't criminals kill with other weapons if they don't have guns? The crux of this question is whether most homicides are planned, or whether killers more often confront their victims with no clear intention. In the second case, adding a gun could result in a fatal shooting that would otherwise have been avoided.

In 1968, Franklin Zimring examined cases of knife assaults versus gun assaults in Chicago. The gun attacks were five times more deadly

Here are some approaches that don't seem to work, at least not by themselves, or in the ways they've been tried so far: Stiffer prison sentences for gun crimes. Gun buy-backs: In a country with one gun per person, getting a few thousand guns off the street in each city may not mean very much. Safe storage laws and public safety campaigns.

We don't really have good enough evidence to evaluate these strategies: Background checks, such as the Brady Act requires. Bans on specific weapons types, such as the expired 1994 assault weapons ban or the handgun bans in various cities.

These policies do actually seem to reduce gun violence, at least somewhat or in some cases: More intensive probation strategies: increased contact with police, probation officers and social workers. Changes in policing strategies, such increased patrols in hot spots. Programs featuring cooperation between law enforcement, community leaders, and researchers, such as Project Safe Neighborhoods.

Removing legal restrictions that prevent the Centers for Disease Control and other agencies from tracking and researching gun violence is also a sensible idea, and follows a long history of calls from scientists (see: what don't we know).

We lack some of the most basic information we need to have a sensible gun policy debate, partially because researchers have been prevented by law from collecting it. The 2004 National Research Council report discussed above identified several key types of missing data: systematic reporting of individual gun incidents and injuries, gun ownership at the local level, and detailed information on the operation of firearms markets. We don't even have reliable data on the number of homicides in each county.

Centers for Disease Control, the main U.S. agency that tracks and studies American injuries and death, has been effectively prevented from studying gun violence, due to a law passed by Congress in 1996.

anonymized hospital reporting systems are the main ways we know about many other types of injuries, but the Affordable Care Act prevents doctors from gathering information about their patients' gun use. A 2011 law restricts gun violence research at the National Institutes of Health. The legal language prevents these agencies from using any money "to advocate or promote gun control."

the mouth feel of soda and many other food items, especially those high in fat, is second only to the bliss point in its ability to predict how much craving a product will induce.

He organized focus-group sessions with the people most responsible for buying bologna — mothers — and as they talked, he realized the most pressing issue for them was time. Working moms strove to provide healthful food, of course, but they spoke with real passion and at length about the morning crush, that nightmarish dash to get breakfast on the table and lunch packed and kids out the door.

as the focus swung toward kids, Saturday-morning cartoons started carrying an ad that offered a different message: “All day, you gotta do what they say,” the ads said. “But lunchtime is all yours.”

When it came to Lunchables, they did try to add more healthful ingredients. Back at the start, Drane experimented with fresh carrots but quickly gave up on that, since fresh components didn’t work within the constraints of the processed-food system, which typically required weeks or months of transport and storage before the food arrived at the grocery store. Later, a low-fat version of the trays was developed, using meats and cheese and crackers that were formulated with less fat, but it tasted inferior, sold poorly and was quickly scrapped.

One of the company’s responses to criticism is that kids don’t eat the Lunchables every day — on top of which, when it came to trying to feed them more healthful foods, kids themselves were unreliable. When their parents packed fresh carrots, apples and water, they couldn’t be trusted to eat them. Once in school, they often trashed the healthful stuff in their brown bags to get right to the sweets.

This idea — that kids are in control — would become a key concept in the evolving marketing campaigns for the trays. In what would prove to be their greatest achievement of all, the Lunchables team would delve into adolescent psychology to discover that it wasn’t the food in the trays that excited the kids; it was the feeling of power it brought to their lives.

The prevailing attitude among the company’s food managers — through the 1990s, at least, before obesity became a more pressing concern — was one of supply and demand. “People could point to these things and say, ‘They’ve got too much sugar, they’ve got too much salt,’ ” Bible said. “Well, that’s what the consumer wants, and we’re not putting a gun to their head to eat it. That’s what they want. If we give them less, they’ll buy less, and the competitor will get our market. So you’re sort of trapped.”

at last count, including sales in Britain, they were approaching the $1 billion mark. Lunchables was more than a hit; it was now its own category

he holds the entire industry accountable. “What do University of Wisconsin M.B.A.’s learn about how to succeed in marketing?” his presentation to the med students asks. “Discover what consumers want to buy and give it to them with both barrels. Sell more, keep your job! How do marketers often translate these ‘rules’ into action on food? Our limbic brains love sugar, fat, salt. . . . So formulate products to deliver these. Perhaps add low-cost ingredients to boost profit margins. Then ‘supersize’ to sell more. . . . And advertise/promote to lock in ‘heavy users.’ Plenty of guilt to go around here!”

men in the eastern part of Finland had the highest rate of fatal cardiovascular disease in the world. Research showed that this plague was not just a quirk of genetics or a result of a sedentary lifestyle — it was also owing to processed foods. So when Finnish authorities moved to address the problem, they went right after the manufacturers. (The Finnish response worked. Every grocery item that was heavy in salt would come to be marked prominently with the warning “High Salt Content.” By 2007, Finland’s per capita consumption of salt had dropped by a third, and this shift — along with improved medical care — was accompanied by a 75 percent to 80 percent decline in the number of deaths from strokes and heart disease.)

I tracked Lin down in Irvine, Calif., where we spent several days going through the internal company memos, strategy papers and handwritten notes he had kept. The documents were evidence of the concern that Lin had for consumers and of the company’s intent on using science not to address the health concerns but to thwart them. While at Frito-Lay, Lin and other company scientists spoke openly about the country’s excessive consumption of sodium and the fact that, as Lin said to me on more than one occasion, “people get addicted to salt

the marketing team was joined by Dwight Riskey, an expert on cravings who had been a fellow at the Monell Chemical Senses Center in Philadelphia, where he was part of a team of scientists that found that people could beat their salt habits simply by refraining from salty foods long enough for their taste buds to return to a normal level of sensitivity. He had also done work on the bliss point, showing how a product’s allure is contextual, shaped partly by the other foods a person is eating, and that it changes as people age. This seemed to help explain why Frito-Lay was having so much trouble selling new snacks. The largest single block of customers, the baby boomers, had begun hitting middle age. According to the research, this suggested that their liking for salty snacks — both in the concentration of salt and how much they ate — would be tapering off.

Riskey realized that he and his colleagues had been misreading things all along. They had been measuring the snacking habits of different age groups and were seeing what they expected to see, that older consumers ate less than those in their 20s. But what they weren’t measuring, Riskey realized, is how those snacking habits of the boomers compared to themselves when they were in their 20s. When he called up a new set of sales data and performed what’s called a cohort study, following a single group over time, a far more encouraging picture — for Frito-Lay, anyway — emerged. The baby boomers were not eating fewer salty snacks as they aged. “In fact, as those people aged, their consumption of all those segments — the cookies, the crackers, the candy, the chips — was going up,” Riskey said. “They were not only eating what they ate when they were younger, they were eating more of it.” In fact, everyone in the country, on average, was eating more salty snacks than they used to. The rate of consumption was edging up about one-third of a pound every year, with the average intake of snacks like chips and cheese crackers pushing past 12 pounds a year

Riskey had a theory about what caused this surge: Eating real meals had become a thing of the past.

“We looked at this behavior, and said, ‘Oh, my gosh, people were skipping meals right and left,’ ” Riskey told me. “It was amazing.” This led to the next realization, that baby boomers did not represent “a category that is mature, with no growth. This is a category that has huge growth potential.”

The food technicians stopped worrying about inventing new products and instead embraced the industry’s most reliable method for getting consumers to buy more: the line extension.

He zeroed right in on the Cheetos. “This,” Witherly said, “is one of the most marvelously constructed foods on the planet, in terms of pure pleasure.” He ticked off a dozen attributes of the Cheetos that make the brain say more. But the one he focused on most was the puff’s uncanny ability to melt in the mouth. “It’s called vanishing caloric density,” Witherly said. “If something melts down quickly, your brain thinks that there’s no calories in it . . . you can just keep eating it forever.”

Frito-Lay acquired Stacy’s Pita Chip Company, which was started by a Massachusetts couple who made food-cart sandwiches and started serving pita chips to their customers in the mid-1990s. In Frito-Lay’s hands, the pita chips averaged 270 milligrams of sodium — nearly one-fifth a whole day’s recommended maximum for most American adults — and were a huge hit among boomers.

There’s a paradox at work here. On the one hand, reduction of sodium in snack foods is commendable. On the other, these changes may well result in consumers eating more. “The big thing that will happen here is removing the barriers for boomers and giving them permission to snack,” Carey said. The prospects for lower-salt snacks were so amazing, he added, that the company had set its sights on using the designer salt to conquer the toughest market of all for snacks: schools

The company’s chips, he wrote, were not selling as well as they could for one simple reason: “While people like and enjoy potato chips, they feel guilty about liking them. . . . Unconsciously, people expect to be punished for ‘letting themselves go’ and enjoying them.” Dichter listed seven “fears and resistances” to the chips: “You can’t stop eating them; they’re fattening; they’re not good for you; they’re greasy and messy to eat; they’re too expensive; it’s hard to store the leftovers; and they’re bad for children.” He spent the rest of his memo laying out his prescriptions, which in time would become widely used not just by Frito-Lay but also by the entire industry.

Dichter advised Frito-Lay to move its chips out of the realm of between-meals snacking and turn them into an ever-present item in the American diet. “The increased use of potato chips and other Lay’s products as a part of the regular fare served by restaurants and sandwich bars should be encouraged in a concentrated way,”

the largest weight-inducing food was the potato chip. The coating of salt, the fat content that rewards the brain with instant feelings of pleasure, the sugar that exists not as an additive but in the starch of the potato itself — all of this combines to make it the perfect addictive food. “The starch is readily absorbed,” Eric Rimm, an associate professor of epidemiology and nutrition at the Harvard School of Public Health and one of the study’s authors, told me. “More quickly even than a similar amount of sugar. The starch, in turn, causes the glucose levels in the blood to spike” — which can result in a craving for more.

If Americans snacked only occasionally, and in small amounts, this would not present the enormous problem that it does. But because so much money and effort has been invested over decades in engineering and then relentlessly selling these products, the effects are seemingly impossible to unwind.

Todd Putman, who worked at Coca-Cola from 1997 to 2001, said the goal became much larger than merely beating the rival brands; Coca-Cola strove to outsell every other thing people drank, including milk and water. The marketing division’s efforts boiled down to one question, Putman said: “How can we drive more ounces into more bodies more often?”

how will these intertwined systems of hardware and software be designed to meaningfully add to our lives and to society?

the idea that we are beginning to instrument our bodies and make them nodes on the network opens the opportunity to truly improve how we manage our health, how we assist the elderly, and how we express ourselves socially.

they can be activated by more subtle means such as tapping on objects or speaking. Or a device could recognize objects on its own and react accordingly.

they are simplifying tasks to their essence and creating new styles of interaction. For example, a function might be executed by tapping and speaking at the same time, or through natural gestures such as near-field “waving.”

The result should be a world where we have more pervasive access to computers yet fewer moments in our lives where we have to stop what we’re doing and operate a computer terminal. Essentially, we hope to take the computers out of computing.

In his 2013 paper, Burkhauser and his two co-authors have completely upended the thrust of Figures 1 and 2.

Burkhauser’s 2011 methodology worked to make the pattern appear far less extreme, as illustrated by Figure 2:

First, take a look at Figure 1, a 2011 Congressional Budget Office chart showing significant inequality in the distribution of income gains from 1979 to 2007. Many on the left consider work done by the C.B.O. to be the gold standard of inequality measurement:

The Burkhauser approach does a number of things. First, it spreads and flattens income from capital gains over the duration of ownership. For a wealthy individual who makes a huge killing selling stock or a businesses, his or her income does not spike in the year of the sale, but emerges instead as a series of yearly incremental gains.

If Burkhauser’s approach was accepted, it would render moot the basic political and philosophical tenets of the Obama presidency

Not only would Burkhauser lay waste to a core liberal argument — inequality is worsening — but his claim that a declining share of income is going to the wealthy could be used to justify further tax cuts for the affluent in order to foster top-down investment and growt

Burkhauser et al. achieve their reversal of past income distribution data by amending the definition of income developed in their 2012 paper — “post-tax, post-transfer, size-adjusted household income including the ex-ante value of in-kind health insurance benefits” — to incorporate another accounting tool: “yearly-accrued capital gains to measure yearly changes in wealth.”

it is a game changer.

Burkhauser attempts to measure the year-to-year increase in taxpayers’ assets — stocks and bonds, housing and privately held businesses – and to count those annual increases as income. Increases in the value of such assets do not show up in tax data because they are taxed by the federal government only when the asset in question is sold and the increased value is realized as taxable gains.

If — a virtually impossible if — the economic and policy-making community were to reach even a rough consensus in support of Burkhauser’s 2013 analysis, the victory for the right would be hard to overestimate.

For assets that have been held for a long time, the Burkhauser system effectively backdates much of currently realized capital gains onto earlier years. This is especially significant in calculating income gains from the current sale of assets purchased in the 1980s and 1990s, since much of the added value was acquired in those earlier decades.

I raised the following question: Is it a fair measure of a person’s well-being to include unrealized capital gains? Their house or other assets may have increased in value, but their standard of living has not changed.

The unfairness of Burkhauser’s approach is clearly acute at the bottom and middle of income distribution. The most common large asset for those on the bottom rungs is a house. Burkhauser would increase the income of those below the median lucky enough to own a home by the annual appreciation in the value of the home through 2007. For many of these families, however, selling their home is not an option. In Burkhauser’s view, their income goes up even if their living conditions remain unchanged.

Burkhauser is respected by his peers; his critics, including some friends, do not accuse him of ideological bias. In addition to A.E.I, he has received support from such center-left institutions as the Pew Foundation, Brookings Institution and the Russell Sage Foundation.

the “problem is that in such things, especially when it is a difficult task based on lots of new data sources, the devil is in the details. It’s pretty hard to judge those details without doing a substantial amount of work.” Acemoglu’s conclusion: “Bottom line: conceptually there is a valid point here, and this is a serious paper. The rest is to be determined.”

“Rich Burkhauser’s work is really the state of the art — the most important research on inequality being done, in my view,” Scott Winship, of the Brookings Institution, e-mailed me. Winship voiced some concern over the reliability of the statistical data used by Burkhauser, but concluded:All that said, I think Rich’s paper is incredibly disruptive for many fields of research in labor economics and other social sciences, and potentially it could change our entire view about rising inequality over the past few decades.

Burtless continued:The problem with the authors’ estimates of accruing capital gains is that those numbers are wholly made up based on a prediction that everyone is equally successful in finding homes, stocks, bonds and other assets to invest in.  But they’re not:  Some people are wildly successful, and get into the 1%; others are horribly unsuccessful and become paupers (or receive foreclosure papers); and most earn mediocre returns that are — surprise! — a bit lower than the economy-wide average.

Burkhauser et al. measure the period from 1989 to 2007 because those are both peak years in the business cycle. This timing results in a failure to account for the consequences of the 2008-9 financial crisis and the subsequent struggle toward recovery accompanied by persistent high levels of unemployment.

During the post-crisis years 2009-11, according to the Pew Center, the wealthiest mean of the nation saw the value of their assets grow by 28 percent, to $3.17 million from $2.48 million, while the bottom 93 percent saw their net worth drop by 4 percent, to $133,816 from $139,896.

Wealth trends since the 2008 crash, shown in Figure 5, demonstrate an extraordinary growth in inequality, suggesting that Burkhauser’s findings — restricted to his carefully tailored definition of income — are fatally flawed as an instrument to assess the current real-world position of the poor and middle class compared with the very rich:

A key purpose in measuring both wealth and income is to determine what kind of standard of living is possible for those at the top, the middle and the bottom. Do individuals, families and households have enough to provide for themselves, perhaps most importantly for their children? Do they have the financial resources to enter the highly competitive global marketplace?On that score, Burkhauser’s use of “yearly accrued capital gains” fails the test of measuring what is most significant to know in policy making and in assessing the true quality of life in America.