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Was planning on stopping by my favorite bookstore on Wednesday or Thursday to pick up a copy of Walter Scheidel’s The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty-First Century. Just as an extra nudge, the author published an article on the topic today in The Atlantic. As you might have guessed from the subtitle, it is not a hopeful piece. “With the rarest of exceptions, great reductions in inequality were only ever brought forth in sorrow,” the author writes.

No candidate was particularly honest about the economy and wealth inequality in the recent Presidential election. In one debate during the Democratic primary, Hillary Clinton argued that the free markets had allowed post-war America to create an upward trajectory for those seeking a solid middle-class existence. Well, not exactly.

The free market was important, sure, but it can’t be forgotten that progressive tax rates reached 90% during the Eisenhower Administration, a figure even your average liberal today would say is draconian, and that money was redistributed via investment in those who had less, often through education, social welfare and infrastructure development. Without flourishes from both capitalism and socialism, the level playing field that inched into the 1970s never would have existed for more than two decades. And if you remove World War II from the equation, it never would have happened at all. 

Scheidel doesn’t relate his thoughts on the Gilded Age and the Progressive Era in this article, though hopefully he does in his book.

The opening:

Calls to make America great again hark back to a time when income inequality receded even as the economy boomed and the middle class expanded. Yet it is all too easy to forget just how deeply this newfound equality was rooted in the cataclysm of the world wars.

The pressures of total war became a uniquely powerful catalyst of equalizing reform, spurring unionization, extensions of voting rights, and the creation of the welfare state. During and after wartime, aggressive government intervention in the private sector and disruptions to capital holdings wiped out upper-class wealth and funneled resources to workers; even in countries that escaped physical devastation and crippling inflation, marginal tax rates surged upward. Concentrated for the most part between 1914 and 1945, this “Great Compression” (as economists call it) of inequality took several more decades to fully run its course across the developed world until the 1970s and 1980s, when it stalled and began to go into reverse.

This equalizing was a rare outcome in modern times but by no means unique over the long run of history. Inequality has been written into the DNA of civilization ever since humans first settled down to farm the land. Throughout history, only massive, violent shocks that upended the established order proved powerful enough to flatten disparities in income and wealth. They appeared in four different guises: mass-mobilization warfare, violent and transformative revolutions, state collapse, and catastrophic epidemics. Hundreds of millions perished in their wake, and by the time these crises had passed, the gap between rich and poor had shrunk.•

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The main reason I preferred Hillary Clinton to Bernie Sanders was simple math. 

In addition to his impossible pledge of America no longer having the highest incarceration rate of Western nations by the end of his first term, Sanders based his extraordinary spending plans on fanciful economic growth numbers (5.3%) that he couldn’t possibly deliver. That promise made Sanders policies seem less debt-heavy than they were, a dishonest way of doing business.

Although Donald Trump is promising a smaller if still out-of-reach 3.0-3.5%, he’s doing something the Vermont Senator would have never done: Ordering the Council of Economic Advisers to backfill all of its projections at his unrealistic rate. That intellectually deceptive gaming, he hopes, will be the smoke and mirrors he needs to cover the exorbitant cost of the tax cuts he plans for the nation’s highest earners. 

From Catherine Rampell at the Washington Post:

Astonishingly, the White House still hasn’t released details for any of the major economic initiatives Trump promised during the campaign (a “terrific” Obamacare replacement, a top-to-bottom tax overhaul, massive infrastructure investment). But thanks to recent leaks about the administration’s economic book-cooking, we at least know that whatever Trump ultimately proposes will be very, very expensive.

After the election, the Trump transition team began the long, arduous process of putting together the presidential budget. As is always the case, it worked with the (non-political) career staffers at the Council of Economic Advisers.

Normally this process starts by asking the CEA staff to estimate baseline economic growth under current policies. These professionals then build on this baseline to forecast how the president’s proposals will affect the overall economy, as well as budget deficits.

The end results are often more optimistic than what independent forecasters predict — the White House is factoring in new policies it believes are pro-growth, after all — but not wildly so. The numbers still need to be credible.

Like I said, that’s how things normally work. Not this time around.

As the Wall Street Journal first reported (and as I’ve independently confirmed through my own sources), the Trump transition team instead ordered CEA staffers to predict sustained economic growth of 3 to 3.5 percent. The staffers were then directed to backfill all the other numbers in their models to produce these growth rates.•

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Nothing pleases me more than the smart-stupid tweets from the account of Jose Canseco, which serves as its own parody. The former baseball player and amateur chemist has, it would seem, recently become aware of the Second Machine Age and has addressed its arrival in the most dystopian 140-character bursts possible. 

In “No, Robots Aren’t Killing the American Dream,” the New York Times has a more sober Editorial Board take on the topic that gets a lot right, but it skates over some troubling points. The Times is correct in saying that robotics is good for a society’s wealth in the aggregate and that it should be a boon for all if robust public policy is done properly. But it makes that seem too simple.

“The response in previous eras was quite different,” the op-ed declares, suggesting yesteryear’s politicians were nimble with answers to the challenges that attended the Industrial Age. Not so. The rise of Labor Unions was born (quite literally) of blood, and the G.I. Bill, which the essay lauds, was labeled as “welfare” by those on the right who wanted to kill it. 

The path to a fairer country was always a jagged one, and Times also fails to mention, perhaps most importantly, that the pace of change is poised to be far faster now as robotics matures, a dynamic that will put further stress on even good policy. Additionally, thinking of automation in a vacuum neglects an important part of the contemporary Labor story, as Internet companies with few employees have been able to disrupt industries formerly full of steady middle-class work. That’s another ingredient missing from the twentieth-century’s struggles.

Yes, policy is the answer. No, it never was so simple in our capitalist society and won’t be now.

An excerpt:

And yet, the data indicate that today’s fear of robots is outpacing the actual advance of robots. If automation were rapidly accelerating, labor productivity and capital investment would also be surging as fewer workers and more technology did the work. But labor productivity and capital investment have actually decelerated in the 2000s.

While breakthroughs could come at any time, the problem with automation isn’t robots; it’s politicians, who have failed for decades to support policies that let workers share the wealth from technology-led growth.

The response in previous eras was quite different.

When automation on the farm resulted in the mass migration of Americans from rural to urban areas in the early decades of the 20th century, agricultural states led the way in instituting universal public high school education to prepare for the future. At the dawn of the modern technological age at the end of World War II, the G.I. Bill turned a generation of veterans into college graduates.

When productivity led to vast profits in America’s auto industry, unions ensured that pay rose accordingly.

Corporate efforts to keep profits high by keeping pay low were countered by a robust federal minimum wage and time-and-a-half for overtime.

Fair taxation of corporations and the wealthy ensured the public a fair share of profits from companies enriched by government investments in science and technology.

One troubling aspect of globalization is that those not adversely affected by the flow of international trade and actually helped by it (most Americans) are often opposed to a smaller world because of prejudice or some other irrational fear.

While financial concerns in the Rust Belt may have put Trump over the top (along with Russian hacking and FBI machinations), the bigoted President’s voters enjoy an overall higher household income than the average U.S. resident. Many were turning the lever for something else, and that was nationalism, which is sadly something most dear to many among us.

In an excellent Five Questions interview, Lawrence Summers discusses the strictly economic repercussions of globalization. He acknowledges that while he thinks the process still works in the big picture, our bumpy ride is just beginning, meaning we’ll need to strengthen “systems of social insurance,” something which seems to not be on the horizon in the U.S. Sooner or later, though, people will tire of bread and Kardashians.

An excerpt:

Question:

Finally, a title from last year. Richard Baldwin’s The Great Convergence (2016). Please give us a precis.

Lawrence Summers:

It’s the newest of the books and it’s a very powerful description of the newest phase of globalization. Two ideas about this newest phase of globalization that Baldwin emphasizes are hugely important.

The first is that we used to think very much in terms of trade in goods—some country exports washing machines, some other country exports dryers. Increasingly, goods are produced with global supply chains. Part of a good is produced in one country, part of a good is produced in another country and assembly takes place in a third country. So trade is part of the production process, whether it takes place within a multi-national corporation or between companies. Trade is part of production through supply chains.

The other idea that is emphasized is the role of trade and globalization in sharing knowledge. Baldwin uses a very powerful analogy. He says it’s one thing for a soccer team in one country to play against a soccer team in another country. It’s a very different thing if the coach in one country starts to coach teams in many countries and therefore promotes convergence. Baldwin argues that the second type of openness may be more problematic than the first. And, increasingly, trade is taking that form.

Question:

Please explain the challenges to politics and economic policy presented by this “great convergence” he describes.

Lawrence Summers:

The challenge is that there are likely to be more winners associated with global convergence, but there are also likely to be more losers and more potential volatility. In this latest stage of globalization, ideas can be traded and support production elsewhere, leading to less identification of entrepreneurship with location. The example I like to give is when George Eastman invented the instamatic camera, he got rich and Rochester, New York, where he founded his company, had a strong middle class for several generations. When Steve Jobs made equally powerful innovations, involving the iPhone and the iPad, the result was that he got very, very rich and there was an increase in the demand for labor globally, primarily in Asia, with no similarly broad increase in local wealth.

Question:

In recent years, you have been sounding an alarm about the role of globalization in contributing to local dislocations and inequality. What caused your worries and what are your solutions for globalization going forward.

Lawrence Summers:

I’ve said, for some years, that global integration won’t work if it means local disintegration. Unfortunately, that proved prescient.•

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  • The meek were promised they would inherit the earth, but policies change.
  • Trump’s Administration, fueled by Exxon and coal, is eager to deregulate as many environmental protections as possible and embrace what will be the death of us. The willful ignorance of the ruling party may not kill off all of humanity–not immediately, anyway–but you better have a large bankroll or be especially lucky if you want a chance at persisting in life.
  • I wrote last month on Evan Osnos’ New Yorker article about members of the financial elite planning on escaping a large-scale calamity, readying themselves for the Big Withdrawal from a disaster that will envelop their less-well-funded friends. Perhaps they’ll relocate away from the worst of a heating planet or maybe the wars that will likely attend higher mercury. Peter Thiel has a backup plan if the sociopath he enabled into the White House is the final nail in our coffin, but for most there will be no avoiding the creeping disaster of climate change.
  • It’s the worst possible moment for the most destructive American political uprising in memory. The earth is cracked and so are the people.

In “The Slow Confiscation of Everything,” an excellent Baffler essay, Laurie Penny analyzes how the meaning of end-of-world scenarios have changed through the ages and the political undertones of the current ruinous impulses among the masses. 

An excerpt:

This month, in a fascinating article for The New Yorker, Evan Osnos interviewed several multi-millionaires who are stockpiling weapons and building private bunkers in anticipation of what preppers glibly call “SHTF”—the moment when “Shit Hits The Fan.” Osnos observes that the reaction of Silicon Valley Svengalis, for example, is in stark contrast to previous generations of the super-rich, who saw it as a moral duty to give back to their community in order to stave off ignorance, want and social decline. Family names like Carnegie and Rockefeller are still associated with philanthropy in the arts and sciences. These people weren’t just giving out of the goodness of their hearts, but out of the sense that they too were stakeholders in the immediate future.

Cold War leaders came to the same conclusions in spite of themselves. The thing about Mutually Assured Destruction is that it is, well, mutual—like aid, or understanding, or masturbation. The idea is that the world explodes, or doesn’t, for everyone. How would the Cuban Missile Crisis have gone down, though, if the negotiating parties had known, with reasonable certainty, that they and their families would be out of reach of the fallout? 

Today’s apocalypse will be unevenly distributed. It’s not the righteous who will be saved, but the rich—at least for a while. The irony is that the tradition of apocalyptic thinking—religious, revolutionary or both—has often involved the fantasy of the destruction of class and caste. For many millenarian thinkers—including the puritans in whose pinched shoes the United States is still sneaking about—the rapture to come would be a moment of revelation, where all human sin would be swept away. Money would no longer matter. Poor and privileged alike would be judged on the riches of their souls. That fantasy is extrapolated in almost every modern disaster movie—the intrepid survivors are permitted to negotiate a new-made world in which all that matters is their grit, their courage, and their moral fiber. 

A great many modern political currents, especially the new right and the alt-right, are swept along by the fantasy of a great civilizational collapse which will wash away whichever injustice most bothers you, whether that be unfettered corporate influence, women getting above themselves, or both—any and every humiliation heaped on the otherwise empty tables of men who had expected more from their lives, economic humiliations that are served up and spat back out as racism, sexism, and bigotry. For these men, the end of the world sounds like a pretty good deal. More and more, it is only by imagining the end of the world that we can imagine the end of capitalism in its current form. This remains true even when it is patently obvious that civilizational collapse might only be survivable by the elite.•

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Newspapers could simply fade in America, unable to make the post-print transition, but what if they’re able to turn a profit from a much smaller readership and sustain themselves, even thrive, in that fashion?

If companies can monetize this tinier base without touching the masses, that could lead to the present polarization becoming permanently entrenched, a battle between those largely informed and those not nearly. You don’t have to ban books if most people aren’t reading, and you needn’t censor the news if enough eyes are closed.

On his blog, journalist Clive Davis posted a pertinent quote from Alistair Cooke, who wondered in 1952 how fascism would be received when newsprint was no longer prominent, when a Hitler wouldn’t even have to bother to wrest control of the presses. An excerpt:

We don’t know yet what the televising of the conventions will do to American politics, to elections, to the convention system itself. Some of us fear what one good demagogue with a fine voice and a rousing profile might do to the tyranny of popular government…. The only time that I ever saw Adolf Hitler was at a big rally outside the Brauhaus in Munich in 1931. I was a student who had only just heard of him. I got jammed in there and I watched him and soon felt my heart begin to pound. He was – all morals, politics aside – a superb performer. When he got to his peroration, he ended on a practically meaningless sentence. He shouted, “It is five minutes to twelve.” Nobody knew in his head what Hitler meant. But they felt they had been slapped on the back and a sword put in their hands. Hitler paid a direct physical compliment to the nervous system. I had to fight my frightened way out over fainting women and cheering, sobbing men.

I was glad the next morning to sit down and see it in the newspaper and know that most Germans could sit back and read, and judge the speech unmoved, unseduced by the physical experience of the thing itself. The next Hitler will not suffer from this restraint.•

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“You’re far better off affecting policy if you’re in the room” is a true statement in U.S. politics if we’re talking about your average conservative, liberal or moderate elected official, but it doesn’t extend to this moment in our history, with a reckless, dangerous, kleptocratic and, perhaps, traitorous sociopath in the White House.

In this case, it’s better to be outside the room, refusing to lend your reputation to an aspiring autocrat and raising your voice in protest, especially if you have a giant megaphone like Travis Kalanick or Elon Musk. The former did the morally correct thing in resigning from Trump’s economic advisory council, while the latter still sees this un-American Administration as a game he can officiate.

In a jaw-dropping BuzzFeed article, William Alden reports on political consultant Bradley Tusk’s work advising Silicon Valley titans on how to deal with a deeply irregular White House, encouraging them to ignore their consciences at all costs and do what’s best for the bottom line. It’s not shocking there are people so amoral they can’t see beyond business as usual even in these desperate times, but it is surprising to hear someone so publicly announce such a dicey position.

An excerpt:

Last week, he sent a memo to clients outlining a strategy for dealing with Trump, advising them to take a deep breath and think before engaging in political protest. Taking a stand against Trump might be the right choice, Tusk said, but only if it makes business sense.

“If the business demands immediate action, that’s one thing. If it’s your conscience, that’s another,” he wrote in the memo. Pressure from the media or even from employees, he added, wouldn’t necessarily be a sufficient reason to speak out, especially if it would create other problems.

The memo came just days after Tusk’s flagship client, Uber CEO Travis Kalanick, resigned from President Trump’s economic advisory council. More than 200,000 Uber customers had deleted their accounts, according to The New York Times, after the ride-hailing company was accused of trying to undermine a taxi strike over Trump’s immigration order. Uber also came under pressure from employees and drivers, many of whom are immigrants. Kalanick’s resignation from the advisory council contrasted with the decision of another tech titan, Elon Musk, to stay there.

“This is one of those cases where the symbolism and the emotion on both sides of it took everything in such an incredible direction that people like Travis, like Elon, who are pretty well intentioned, and are saying, ‘O.K., let’s see if we can help things,’ got put in a really, really impossible position,” Tusk told BuzzFeed News. “And they’re handling it in different ways. But that’s kind of why I wrote this memo.”

Tusk said Kalanick made the right decision in this case, but he expressed regret that it had to be that way. “I think Travis joined the council for the right reasons,” Tusk said. “You’re far better off affecting policy if you’re in the room.”•

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Near the mid-point of last century, cyberneticist and mathematician Norbert Wiener worried that either the Kremlin or computers–perhaps both–would be the ruination of America. In Trump’s time, his fears may be realized.

A Russian spy ship is now patrolling the East Coast as a new Administration deeply linked to Vladimir Putin stands idly by, just days after it was reported that Trump campaign officials had constant contact with the autocracy throughout an election that was hacked by our adversary. 

Meanwhile, the new President and his anti-science inner circle are manufacturing fetishists who will invest in yesterday’s jobs at the expense of tomorrow’s high-tech future (robotics included). That could leave China, another despotic nemesis, in a position of predominance. That scenario becomes especially likely if isolationist tendencies and trade wars reduce our soft power abroad.

That’s not exactly how Wiener’s apocalyptic vision unfolded, but the same end would be reached.

In an article in the August 18, 1950 Brooklyn Daily Eagle, the scientist explained how the “Automatic Age” might be a mixed blessing.

Drain the swamp was the most obvious lie of the campaign that landed a kleptocrat in the White House. Did his supporters actually believe this line or was its acceptance just a rationalization to cover up other motivations?

I blogged last year about Alexandra Suich’s The Economist 1843 article which reported on the eye-popping conspicuous consumption of deep-pocketed Silicon Valley titans, which was an echo of the outrageous displays of wealth of Wall Street wizards just prior to the 2008 economic collapse that laid so many low. Especially egregious was Blackstone Group CEO Steve Schwarzman’s vomit-inducing 60th birthday party, which the Trumps attended, of course. The exclamation point at the end of the sentence occurred later when Schwarzman compared Obama raising taxes on the highest earners to Hitler invading Poland.

A decade later, with Schwarzman now chairing Trump’s Strategic and Policy Forum, his big 7-0 was welcomed with another circus-like bash replete with Gwen Stefani, fireworks, acrobats and even camels. The swamp may not be drained but the desert is a little barer.

In Amanda L. Gordon’s Bloomberg piece on the bash, Howard Marks of Oaktree Capital said, “It’s nice to have an evening where everybody’s happy, harmonious and upbeat.” Well, not everybody, with much of the camel-less country in the greatest state of unrest in 50 years.

The opening:

There were camels in the sand, a gondolier in the pool and a giant birthday cake in the shape of a Chinese temple — with Gwen Stefani on hand to help sing Happy Birthday at midnight.

Steve Schwarzman’s 70th birthday party in Palm Beach, Florida, on Saturday was another memorable affair, according to guests who attended. (The event was closed to the media.)

“You walked into what used to be the tennis court, and there was a balcony with trapeze artists,” said Larry Gagosian, the art dealer. “The level of detail and creativity, it was extraordinary. Steve loves parties.”

Guests said they were impressed by the production overseen by Schwarzman’s wife, Christine Hearst Schwarzman, and the event-design firm Van Wyck & Van Wyck, whose clients have included Madonna, Calvin Klein and David Koch for his own 70th.

Ivanka and Jared

“It was brilliantly stimulating,” said Koch, the day after Schwarzman’s party. “You learned a lot about Asian theater. There were acrobats, Mongolian soldiers and two camels. It was a little bit of everything.”

The guest list also was a little bit of everything, reflecting Schwarzman’s vast personal, professional, philanthropic and, increasingly, White House connections as the billionaire chief executive officer of Blackstone Group.

Representing President Trump’s sphere were daughter Ivanka and son-in-law Jared Kushner and incoming cabinet members Steve Mnuchin, Wilbur Ross and Elaine Chao. Bank bosses included Jes Staley of Barclays and Michael Corbat of Citigroup. Investing titans Henry Kravis, David Rubenstein and Howard Marks paid respects.

Philanthropic recipients and leaders abounded. Olympians, whose training Schwarzman sponsored, mingled. So did Susan George, executive director of the Inner-City Scholarship Fund, and Nigel Thrift, executive director of the Schwarzman Scholars program.

And for some glamour: Donatella Versace, Sloan Barnett in Yves Saint Laurent, Jean Pigozzi who came up from Panama, Nicolas Berggruen, the Hiltons, Philippe Dauman and Francois Delattre, France’s representative to the United Nations.•

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Amnesia is a trouble that often plagues a long-stable society. It’s easy to forget what doesn’t ail you. That’s true whether we’re being forgetful about the value of democracy or disease prevention. Jogging the memory, unfortunately, can be painful, even deadly.

Figures on the Left and Right, journals both high and low, doctors and celebrities alike conspired over the last two decades to needlessly create a panic about vaccines that allowed for the return of outbreaks we thought were forever buried. The craziness began in 1998 when British doctor Andrew Wakefield published a now-retracted Lancet article linking immunizations to autism. The study was based on junk science and dishonesty, and his medical license was ultimately revoked.

Over the years, publications from Salon to the Huffington Post to Rolling Stone have published pieces further feeding a growing online fury, providing platforms to disparate, wrong-minded personalities from Jenny McCarthy to Robert F. Kennedy. (It should be noted that Salon and the Huffington Post have long since abandoned this misinformation.)

The opening of Amy Wallace’s smart 2009 Wired story on the subject related just how hysterical the situation had become:

TO HEAR HIS enemies talk, you might think Paul Offit is the most hated man in America. A pediatrician in Philadelphia, he is the coinventor of a rotavirus vaccine that could save tens of thousands of lives every year. Yet environmental activist Robert F. Kennedy Jr. slams Offit as a “biostitute” who whores for the pharmaceutical industry. Actor Jim Carrey calls him a profiteer and distills the doctor’s attitude toward childhood vaccination down to this chilling mantra: “Grab ’em and stab ’em.” Recently, Carrey and his girlfriend, Jenny McCarthy, went on CNN’s Larry King Live and singled out Offit’s vaccine, RotaTeq, as one of many unnecessary vaccines, all administered, they said, for just one reason: “Greed.”•

During the Arab Spring, there was debate about whether smartphones and social media were truly able to make mass movements go viral. It seems they really do, though it’s a two-way street, and one avenue leads to ignorance. The culmination of all this foolishness was on display in the Presidential election, in which two candidates, Donald Trump and Dr. Jill Stein, expressed solidarity with the anti-Vaxxers. Trump won and RFK Jr. reiterated today that he will head a “vaccine safety commission.” 

From Daniel Smith at the New York Review of Books:

Measles is a severe virus than can result in high fever, diarrhea, pneumonia, deafness, brain swelling, and death. It is very hardy and therefore wildly contagious; it can survive in the air for up to two hours after an infected person has sneezed or coughed. Among those who aren’t immune, nine out of ten people who are exposed to measles will contract the virus. It is one of the leading causes of childhood death worldwide—and it is a growing threat to the United States.

In 2014, the US Centers for Disease Control recorded twenty-three separate outbreaks of measles in the United States, involving 668 individual cases—the highest number in twenty years and more than the previous five years combined. Many of these cases were contracted by children whose parents had refused to vaccinate them, out of a fear that doing so would cause developmental problems. And now in 2017 we have President Donald Trump, a man who is not only the most prominent and media-savvy fear-monger in the English-speaking world but also a dedicated, unabashed, very loud purveyor of myths about the dangers of vaccines. 

Trump has been fixated for years on a discredited link between childhood vaccines and autism. As recently as Tuesday, during a White House meeting with Secretary of Education Betsy DeVos and a group of educators, Trump launched into rambling remarks on the subject, drawing directly on the claims of the anti-vaccination movement: “So what’s going on with autism? When you look at the tremendous increase, it’s really—it’s such an incredible—it’s really a horrible thing to watch, the tremendous amount of increase. Do you have any idea?” There is in fact no evidence to support the claim that we are in the midst of an autism epidemic, let alone to connect autism to vaccines. 

The stakes of Trump’s allegiance to anti-vaccination canards are huge. The CDC declared in 2000 that measles had been “eliminated,” meaning that it was no longer endemic to the United States. After that point, any cases that occurred were carried in from outside the country. Outbreaks still happened, but they were minor and restricted to small geographic areas. This changed in 2014. The most serious of the measles outbreaks that year began in Disneyland, in southern California, and quickly radiated outward, north to Oregon, Washington, and Canada, east to Arizona, Utah, Colorado, and Nebraska, and south to Mexico. By the time the outbreak ran its full course, at least 111 people had contracted the illness, half of them children.

What caused this sudden burst of outbreaks?•

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The problem with pointing out that the Trump Administration wants to severely shift focus on Muslims involved in terrorism to the point of ignoring domestic radical right-wing and anti-government groups is that it’s not an oversight.

These are some of the very people, often white nationalists, who most ardently supported Trump’s bigoted campaign, and it’s not likely that the self-avowed tough-on-crime politician will turn on these militias. That will put law enforcement officers, government officials and non-white folks in general in harm’s way. Perhaps an outcry from police groups can bring greater light on what could be a lethal decision?

From an article by Emily Tamkin, Robbie Gramer and Molly O’Toole of Foreign Policy:

Such a shift would also downplay the threat from other forms of terrorism. Far-right and anti-government groups plan and carry out domestic attacks at a greater frequency than foreign terrorist groups, according to the Southern Poverty Law Center, a nonprofit focused on advocacy and civil rights. There are nearly 1,000 such groups in the United States, such as the Crusaders, which counts among its membership three men in Kansas who plotted in October 2016 to bomb an apartment complex where Somalis live. The SPLC noted an increase in hate crimes in the month following Trump’s election.

And since the 9/11 terrorist attacks, anti-government groups have racked up a death toll on par with that of Islamist extremists, according to New America, a think tank, which keeps a database on terrorist incidents. Until the Pulse nightclub shooting in Orlando, Florida, in 2016, in which a New York man pledging allegiance to the Islamic State killed 49 people, far-right extremism caused more deaths in the United States than did jihad.

“The trend lines look very similar,” David Sterman, a terrorism analyst with New America, told FP.

According to a 2015 survey of nearly 400 law enforcement agencies at the federal, state, and local levels, authorities considered anti-government violent extremists, rather than radicalized Muslims, to be “the most severe threat of political violence that they face.”

And that threat may be growing. The former U.S. counterterrorism official said recent intelligence briefings showed an uptick in domestic threats associated with white nationalists and anti-government groups. Police officers are being threatened by these groups as well, the official said — and are even being infiltrated by them, according to a classified FBI counterterrorism policy guide from April 2015.•

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In handicapping what kind of President Trump would be just before he was inaugurated, Brad DeLong did not consider “Russian traitor,” which now might be the most obvious choice.

The economic historian did write these chilling words about the Silvio-style kleptocracy that seemed poised to unfold: “Italy lost a decade of economic growth, I think, because of Berlusconi.” If Trump survives the corrupt and perhaps treasonous morass he’s engulfed in, America could be headed down the same sinkhole, which would be awful for us and wonderful for China and other autocracies.

Already have written that in addition to various high-tech fields, America should invest in creating positions that focus on maintenance of many kinds: health, environment, infrastructure. The demand is certainly evident. In the Financial Times, Martin Sandbu argues the new Administration’s manufacturing fetish is regressive, especially in a society heading deeper into automation, while the “caring industry” is the future.

An excerpt:

The economic nationalism of President Trump and Messrs Navarro and Bannon can be described as Germany-envy. In those manufacturing powers, they see countries that have fought to hold on to the good, manly jobs that validate the status of the native working class. Like so often with machismo, the envy is rooted in insecurity — a feeling of inadequacy compared with the perceived strength sported by these economies. Since export surpluses cannot be enjoyed by all countries (unlike broader gains from trade), manufacturing fetishism leads logically to a zero-sum view of trade policy. It entails an attempt to displace the current surplus of manufacturing producers. Thus, in the context of a Germany-envying inferiority complex, the desire to repatriate global supply chains, limit imports and boost manufacturing makes sense.

But, outside the fetishists’ fantasies, it will not produce the desired effect. First, manufacturing machismo itself is a handicap when it comes to grasping the opportunities for a thriving economy. By far the largest number of jobs to be created in the US over the next decade will be in services, in particular the caring professions. 

Factory fetishists might retort that it is this development they want to oppose by resurrecting factory employment. But this runs headlong into a second obstacle. Regardless of trade, automation is reducing the need for manufacturing jobs everywhere.•

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The United Arab Emirates announced it will build the first city on Mars by 2117, and I would also like to announce I will build the first city on Mars by 2117. Why not? Plenty of wiggle room there.

While the ETA date is probably a lot more realistic than Elon Musk’s proposed mad dash into space, the UAE really wants to use the project to create an international coalition that can help advance science in the region and educate their next several generations of students and workers for employment in the technological and information sectors, not a bad plan for enjoying continued wealth tomorrow in a world that wants to wean itself off of oil. 

From Gulfnews:

The scientific initiative will first be implemented by an Emirati scientific team, and will eventually expand to include international scientists and researchers that will run in parallel with the coordination of human research efforts in the field of exploring and inhabiting Mars.

“The landing of people on other planets has been a longtime dream for humans. Our aim is that the UAE will spearhead international efforts to make this dream a reality,” said Shaikh Mohammad Bin Rashid.

He emphasised that the project prioritises the building of scientific capacities of Emiratis, and transforming our universities into research centres, thus consolidating the passion of leadership in our generations to come.

Shaikh Mohammad Bin Rashid said that the UAE is ranked among the most important nine countries in the world that invest in space science, and our goal is to accelerate human researches in this field.

“Human ambitions have no limits, and whoever looks into the scientific breakthroughs in the current century believes that human abilities can realise the most important human dream,” he added.

“The new project is a seed that we are planting today, and we expect the next generations to reap its fruits,” Shaikh Mohammad Bin Rashid said.

Shaikh Mohammad Bin Zayed said that the short-term goal is to develop the capacities and skills of Emiratis. “The 2117 Mars initiative is a long-term project, which will first help develop our education, universities and research centres that will empower young Emiratis to enter all disciplines of scientific research fields,” said Shaikh Mohammad Bin Zayed.

“The findings of the project will be available to all international research institutes,” he said, and added that the research outcomes will contribute to aspects of transportation, energy and food as part of the Mars project to achieve scientific breakthroughs that contribute to developing human life on Earth.

“The UAE has become part of dynamic human scientific efforts to explore space and making scientific contributions to human knowledge,” Shaikh Mohammad Bin Zayed said.

“With the launch of this project, we begin a new journey that will last for decades to come, and it will speed up human endeavors to explore other planets,” he added.•

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While the headline of Emily Jane Fox’s Vanity Fair “Hive” article “Jared Kushner Emerges as Trump’s True Believer” is misleading because he always was just that, it goes a good way toward being a corrective for an earlier piece she wrote which perplexingly distanced Ivanka Trump and her spouse from the chaos and bigotry they supported into the White House. 

It may be difficult for some to accept that Kushner, who was raised in an Orthodox Jewish background, would be so simpatico with the white nationalists and anti-Semites central to the campaign’s success (and now the Administration), but that’s exactly who Kushner is. He isn’t a mitigator but a co-conspirator, not especially bright and seriously lacking in decency.

An excerpt:

Both Bannon and Kushner have tried to articulate their improbable mutual affection. In explaining the unlikely relationship between himself (an orthodox Jew whose grandparents survived the Holocaust), and Bannon (who ran the alt-right Web site Breitbart News, which has published anti-Semitic comments), Kushner defended his colleague’s character in an interview with Forbes. “What I’ve seen from working together with him was somebody who did not fit the description that people are pushing on him. I choose to judge him based on my experience and seeing the job he’s done, as opposed to what other people are saying about him.” Bannon had a similar take. “If you’re in a foxhole with him, and fighting with him, you’re a brother, and he will defend you nonstop,” Bannon told New York Magazine.

Nevertheless, a perception existed during the campaign and transition that Kushner was a moderating voice to Bannon’s nationalistic agenda. Kushner, after all, came from a major Democratic family. He hosted fundraisers for Corey Booker. He privately reassured his friends and business leaders in his orbit that his father-in-law and Trump’s team would pull back from some of the extreme rhetoric that they peddled on the trail once they got into the West Wing. As one source close to Kushner described to me last month, Kushner was thought of as the “secure line” as a result—someone whom moderates could call in order to be heard by the president and to hear what the president really planned to do behind all that political bombast.

But now, a month into his new job in the West Wing, Kushner appears to have become a true believer in Bannon’s agenda. Several sources told me that Kushner was defensive about the executive order that temporarily barred Muslim immigrants and refugees. The longtime friend said that when he pointed out that refugees had not, in fact, been responsible for any of the terror attacks on U.S. soil, Kushner, he said, answered by saying that that was not true.

The source close to the Trump administration explained that Kushner has “always been far more defensive of Donald and their policies than the general public has believed.•

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Elon Musk was saying things again today. He likes to say things.

The technologist and F.O.T. (Friend of Trump), who has completely misunderstood this political moment and either doesn’t comprehend or doesn’t care that he’s been permanently lowered in many eyes, spoke out on the topics of Guaranteed Basic Income and cyborgism.

Musk is in favor of both, thinking the first will be necessary for society to survive the rough patch of Digital Age transformation, and the second will be required for human beings to survive at all as Artificial Intelligence become more profound. Of course, even if the latter is needed, the melding of human and machine would create something that isn’t exactly human as we know it, so we wouldn’t truly survive.

At any rate, if GBI and human-machine interface become realities, I would hope someone with a more developed sense of morality than Musk is leading the way. A person born in an Apartheid nation should know better than to cozy up to an Administration that would like to turn America into one.

Two excerpts follow.


From Fast Company:

“There will be fewer and fewer jobs that a robot cannot do better. I want to be clear. These are not things I wish will happen; these are things I think probably will happen. And if my assessment is correct and they probably will happen, than we have to think about what are we going to do about it? I think some kind of universal basic income is going to be necessary. The output of goods and services will be extremely high. With automation there will come abundance. Almost everything will get very cheap. I think we’ll end up doing universal basic income. It’s going to be necessary.•


From CNBC:

Billionaire Elon Musk is known for his futuristic ideas and his latest suggestion might just save us from being irrelevant as artificial intelligence (AI) grows more prominent.

The Tesla and SpaceX CEO said on Monday that humans need to merge with machines to become a sort of cyborg.

“Over time I think we will probably see a closer merger of biological intelligence and digital intelligence,” Musk told an audience at the World Government Summit in Dubai, where he also launched Tesla in the United Arab Emirates (UAE).
 
“It’s mostly about the bandwidth, the speed of the connection between your brain and the digital version of yourself, particularly output.”
 
Musk explained what he meant by saying that computers can communicate at “a trillion bits per second,” while humans, whose main communication method is typing with their fingers via a mobile device, can do about 10 bits per second.

In an age when AI threatens to become widespread, humans would be useless, so there’s a need to merge with machines, according to Musk.

“Some high bandwidth interface to the brain will be something that helps achieve a symbiosis between human and machine intelligence and maybe solves the control problem and the usefulness problem,” Musk explained.

The technologists proposal would see a new layer of a brain able to access information quickly and tap into artificial intelligence.•

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Like many of us, William Hope “Coin” Harvey worried about money. His concerns, however, stretched beyond his own bank account.

A lawyer, popular writer on financial theory and a political populist who championed monetary bimetallism in the last decades of the 19th century when such things were a hot topic of conversation, he supported William Jennings Bryan, a free silverite, to a painful defeat in the 1896 Presidential Election. The waterloo curbed Harvey’s appetite for elections for a long spell, though he did run as a third-party candidate for the U.S. Presidency as standard bearer of the Liberty Party in 1932.

While Harvey’s monetary policy and political doings are largely lost to history, another aspect of his legacy can still be encountered in the pages of Henry Miller’s 1945 American odyssey, The Air-Conditioned Nightmare. In 1900, Harvey used some of his publishing windfall to purchase a few acres in Northwest Arkansas where he built a gorgeous resort he called Monta Ne.

What most interested Miller about his subject was Harvey’s belief that American civilization was in steep decline thanks to wealth inequality and poor education and would soon be gone. To prevent all traces of our culture from disappearing, he planned to build at Monte Na something he called “The Pyramid” (actually a 130-foot-tall obelisk), that would contain multiple volumes of books he was writing that explained who we were to future peoples to prevent them from making our mistakes.

Alas, it was never built, as the market crash of 1929 and Harvey’s failing health prevented its construction. If America did not fall to the doom the money man feared, Monte Na itself was not long for the world. Beaver Lake, a man-made body completed in 1966, caused rising waters to mostly bury the resort.

An article in the February 19, 1927 Brooklyn Daily Eagle recall the Pyramid scheme before it crumbled.

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Whether we’re baristas or bureaucrats, the robots will come for us.

No, they won’t take every position and in some cases they’ll create more, but if they kill enough jobs and displace a sufficient number of human workers, it can provoke societal disarray, especially in countries without enlightened policies to deal with the transition. The idea that smart machines will only complement workers and not supplant them seems particularly foolish to me. Even in the cases where that occurs, fewer humans will likely be needed. 

Steve Cousins, founder and CEO of Savioke which provides robots to the services industry, clings to this notion of human-robot tandem in a TechCrunch piece:

Innovation is going to happen; we can’t and shouldn’t stop it if we want the U.S. to maintain its strong position in the global economy. It’s how we manage this transition that’s our collective challenge and opportunity. Income inequality continues to increase worldwide, with educated individuals gaining ground quickly in innovation economies, while lower-skilled workers fall behind. Instead of jettisoning the members of society who feel left behind by technological progress, we need to include them in the jobs created by innovation.

Finding ways to incorporate all members of society in technology’s rapid progress doesn’t just include education and training — though those are essential — but also requires engineers to design intuitive, easy-to-use machines. With touchscreen interfaces and simple commands, many of the emerging collaborative robots are easy to operate. In the same way cashiers have learned to use high-tech registers — basically retail computers — people can learn to operate robots in service, hospitality, retail, healthcare or other sectors. Thus, as robots take over mundane tasks, humans can rise into more fulfilling jobs as operators of these machines.•

I agree with him that innovation shouldn’t be stymied, but it’s likely that a lot more than graceful interfaces ad perhaps more than training will be required to smooth out what could be a very rough patch. There won’t be endless positions for “machine operators.”

Two excerpts on the topic follow.


From Danny King at Travel Weekly:

LOS ANGELES — Hotel robots that perform tasks like delivering amenities to guests or cleaning rooms will be the norm within the next five years, panelists at the Americas Lodging Investment Summit (ALIS) held here last week predicted.

The anticipated growth in hotel robots was largely attributed to falling technology costs and guests becoming more accustomed to the concept.

Early hotel adopters say devices such as Savioke’s Relay robot and Maidbot are gaining favor because they are efficient at both delivering items such as toiletries and bottled water to guests and cleaning rooms. They are also a novelty among family travelers.

Executives with both larger hotel owners like Host Hotels and smaller counterparts like Southern California-based Seaview Investors both expressed satisfaction on the ALIS panels with their early trials of the robots.

“We feel that it pays for itself, more from a guest-satisfaction standpoint than from labor savings,” said ALIS panelist moderator and Seaview Investors president Robert Alter. Seaview has used a Relay robot at his company’s Residence Inn Los Angeles LAX for the past 18 months.

Host Hotels managing director Michael Lentz, said, “We’re testing Maidbots for cleaning rooms. You have to think in years ahead that there are opportunities to reduce our operating costs.”

Front and center at the conference was Savioke’s Relay robotic butler, which debuted as Botlr at select properties under then-Starwood Hotels’ Aloft brand in 2014.

Panelist and Savioke “chief robot whisperer” Tessa Lau said hotels typically lease a Relay for about $2,000 a month (the company does not sell the robots) and the device, on average, performs a front-desk-to-room delivery of smaller products like toothpaste or bottled water in less than four minutes. Lau, too, alluded to the novelty factor, noting that many families with kids take “robot selfies.”•


From the Economist:

Steve Cousins, Savioke’s founder, is more realistic. In an article for TechCrunch, he accepts that his machines will eliminate the need for many of those currently working at hotels. But he argues that automation means jobs will be displaced rather than lost. “Dull and low paid occupations” will go, he writes, and be replaced by more interesting careers. This has frequently been true in the past. The Luddites, for example, burned weaving machines that were threatening their jobs in the 19th century. Yet as machines increased output and lowered prices, employment went up along with demand. The number of people working for weavers quadrupled between 1830 and 1900.

There are two big differences today, however. One is the speed at which new technological advances are introduced. Until the market catches up with the changes, there will probably be a lag between people’s jobs being automated away and new ones being created. We also seem to be heading for a more protectionist world. One reason why a Singaporean hotel might be so keen on employing Relay is that it has a shortage of people willing to work in Mr Cousin’s “dull and low paid occupations”. That is partly because of restrictions on foreign workers. Likewise, in London as many as 70% of jobs in the travel and tourism sector depend on migrants, according to the Association of British Travel Agents. If such labour is in short supply once Britain “takes back control” of immigration after Brexit, then hotels will face a simple choice: employ cheap robots or pay high wages for locals who are not keen on the jobs they have to offer. Expect more droids knocking on your hotel door with your morning coffee.•

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Speaking of immortality, former Transhumanist Presidential candidate Zoltan Istvan is the subject of a well-written profile by Mark McConnell in the New York Times Magazine, adapted from his about-to-be-published book, To Be a Machine.

Unlike, say, Bobby Jindal, the newbie pol knew he had no chance of winning the White House, so he resigned himself to stump for radical life extension, gene editing and other futurist dreams–a CRISPR in every pod and a driverless car in every garage!–and ultimately vote for Hillary Clinton. He did so while acknowledging he didn’t dislike Trump, which seemed a puzzling stance to take on someone who was deeply bigoted, anti-science, wholly unqualified and seemingly unhinged.

In a pre-election Ask Me Anything, Istvan explained his preference for a traditional candidate like Clinton despite his outré opinions: 

One main reason is that if Trump becomes President, and gets assassinated, Mike Pence will take office and that could be a disaster for science and tech, especially in the gene editing and AI era.

Trump can live out his term in perfect health and science in the U.S. is still going to get clobbered, much to the delight of China and other countries competing with us.

McConnell, who traveled part of the way with Istvan during his campaign across America aboard the “Immortality Bus,” reflects on the unsettling and, perhaps, enlightening experience. An excerpt:

He confided that his wife, Lisa, a gynecologist who worked for Planned Parenthood, recently started to express a keen interest in his doing something productive with his life. Lisa had just given birth to their second child and, what with the exponentially growing cost of living in the Bay Area, she was becoming increasingly concerned about the need to begin saving for their two daughters’ educations. He explained to me that he was reluctant to fritter away money on such things, given that by the time the girls were in their late teens, it would be possible to upload the informational content of a Harvard or Yale degree directly to their brains and at a fraction of what such an education costs today.

Lisa, he said, was largely tolerant of his views, but drew the line at gambling their children’s futures on the fanciful notion of some imminent technological intervention.

“Obviously she’s a little resistant to transhumanist ideas,” he said, “because in the near future her entire profession will be obsolete. What with actual childbirth becoming a thing of the past. You know, with babies being produced by ectogenesis and whatnot.”

When, some months later, Istvan emailed me about his decision to run for president, I immediately called him. The first thing I asked was what his wife thought of the plan.

“Well, in a way,” he said, “it was Lisa who gave me the idea. Remember how I said she wanted me to do something concrete, get some kind of a proper job?”

“I do,” I said. “Although I’m guessing running for president on the immortality platform was not what she had in mind.” 

“That’s correct,” he confirmed. “It took a little while for her to come around to the idea.”

“How did you break it to her?”

“I left a note on the refrigerator,” he said, “and went out for a couple hours.”

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Gerontologist Aubrey de Grey’s intense quest for immortality is so fervent it leads him to sometimes make proclamations too bold: In 2004, the scientist said “the first person to live to 1,000 might be 60 already.” Not likely. De Grey would likely blame the lack of large-scale funding from governments, GMOs and individuals in the research he and other like-minded souls are doing–and he has a point. We waste an awful lot of money on killing that might be better spent on other things, defeating cancer and Alzheimer’s among them. Certainly Silicon Valley has gotten into the long-life game in recent years.

If the implausible occurs and de Grey is correct that someone alive today will live ten centuries, I bet with our luck it ends up being his fellow immortality enthusiast Peter Thiel. In 2616, Thiel will support a bigoted, mentally malfunctioning, kleptocratic robot for President of the United States in order to “shake things up.” World War XII was worth it for the change it brought, he’ll say in the aftermath of the carnage, from the safety of a New Zealand bunker.

Hugo Cox of the Financial Times visited de Grey, who appears like a Simeon Stylites of Silicon Valley, at his ramshackle home in Los Gatos. An excerpt:

Most approaches aimed at combating ageing focus on arresting the harmful byproducts of metabolism, he says. These cause cellular damage and decay, which, in turn, accumulate to trigger the age-related disorders, such as cancer or dementia, that tend to finish us off.

For de Grey, this strategy turns anti-ageing treatment into an impossible game of Whac-A-Mole. Because we understand metabolism so poorly, our efforts to interfere with it remain crude and the process of decay races through the body far quicker than treatments to avert it can keep up.

Instead of stopping the damage, the approach that de Grey has developed at his research centre — Strategies for Engineered Negligible Senescence (SENS), a public charity that he co-founded in 2009 — focuses on repair. This “engineering” approach is designed to keep the process of degradation below the threshold at which it turns into life-threatening disease. “If you can repair the microscopic damage then you are sidestepping the bigger problem [of prevention]”.

While his science may now be more widely accepted, his pronouncements of impending immortality remain unpopular among his peers. Their squeamishness is unsupported by the evidence, he says. It belies an intellectual dishonesty that has at its heart a deeply emotional — and increasingly erroneous — attachment to the inevitability of death, according to de Grey.

Historically, accepting the inevitability of death was the rational choice and a necessary requirement, he says, “to get on and make the most of our miserably short lives”. Today, when technology has advanced enough to put us “within striking distance” of extending human life by a multiple of existing lifespans, this acceptance has become a huge obstacle to achieving that goal. The traditional emotional need to accept our own mortality has generated a “pro-ageing trance” which is hobbling even the best scientists from pursuing the enterprise with the ardour it demands.•

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Following up on the recent post about contracted and temporary work proliferating in America, putting citizens on an insecure and downward path, there are a couple of just-published pieces about the same dynamic in Europe.

Part of this new normal is the result of the aftershock of the 2008 collapse, which may have been even worse in Europe due to that region opting for austerity, but other factors like poor Labor policy, wealth inequality and technological change are also playing a role. Perhaps as much as anything the corporate mindset that workers are disposable has had a corrosive effect. As we’ve seen, this instability has done much to provoke increasingly risky political choices.

It’s not only those in the manufacturing sector facing a steep climb but also oncologists and nanotechnologists, the type of high achievers who were supposed to be largely impervious to such vicissitudes. The generation may not be completely lost but it’s certainly being underutilized.

Liz Alderman of the New York Times has an excellent article that profiles some Europeans lost in the shuffle, and Klaus Brinkbäumer, Markus Feldenkirchen and Horand Knaup of Spiegel address the topic in an interview Martin Schulz, SDP candidate for the German Chancellery. Two excerpts follow.


From the NYT:

After graduating with degrees in accounting and finance from a university in Finland, Ville Markus Kieloniemi thought he would at least find an entry-level job in his field. He studied potential employers, tailoring his applications accordingly.

He wound up churning through eight temporary jobs over the next three years. He worked variously as a hotel receptionist and as a salesman in men’s clothing stores, peddling tailored suits and sportswear.

“It’s hard to manage your finances or even get housing, let alone start a career,” said Mr. Kieloniemi, 23, who added depth to his résumé by accepting unpaid office jobs and internships in New York and Spain, mostly at his own expense. “You feel pressure all the time.”

Meet the new generation of permatemps in Europe.

While the region’s economy is finally recovering, more than half of all new jobs created in the European Union since 2010 have been through temporary contracts. This is the legacy of a painful financial crisis that has left employers wary of hiring permanent workers in a tenuous economy where growth is still weak. Under European labor laws, permanent workers are usually more difficult to lay off and require more costly benefit packages, making temporary contracts appealing for all manner of industries, from low-wage warehouse workers to professional white-collar jobs.  

For those stuck in this employment netherworld, life is a cycle of constant job searches. Confidence can give way to doubt as career prospects seem to fade. Young people talk of delaying marriage and families indefinitely. And though many were grateful for any workplace experience, they were also cynical about companies that treated them like disposable labor.•


From Spiegel:

Spiegel:

In the early 2000s, SPD Chancellor Gerhard Schröder introduced tough and controversial cuts to Germany’s welfare and unemployment aid programs, a reform package known as Agenda 2010. Was that a mistake in hindsight?

Martin Schulz:

In the Old Testament, Solomon preaches that “to everything there is a season and a time to every purpose under the heaven.” In 2003, 14 years ago, the Agenda was the correct response to a phase of stagnation. On that issue, I always supported Gerhard Schröder. The fact that today we have record employment is also thanks to Gerhard Schröder. But we have also made mistakes. We should have introduced the minimum wage at the same time and taxed the super-rich at a higher rate. Because we didn’t do that, many got the impression that the reforms were unfair. The Agenda was advantageous for the country, but the SPD suffered significant collateral damage as a result. It is now time to focus on fairness.

Spiegel:

In times of globalization and digitalization, where politics can no longer exert influence in many areas, how can you promise greater fairness?

Martin Schulz:

I cannot guarantee people absolute fairness. I can only promise that I will do everything in my power to secure fairness or create a greater degree of fairness. The old fundamental principles must continue to apply, even in our changing society: Democracy knows neither master nor slave. Equal education opportunities for all, no matter where they come from and no matter who their parents are. Equal access as well when it comes to digitalization.

Spiegel:

That sounds nice enough, but it’s also rather ambiguous. Let’s be a bit more concrete. How do you intend to limit the number of temporary jobs and limited contracts?

Martin Schulz:

Labor Minister Andrea Nahles (SPD) has already achieved a lot in that regard. We could limit the admissibility of temporary and limited work to a much greater degree if we had the necessary parliamentary majorities to do so.

Spiegel:

How do you intend to limit the number?

Martin Schulz:

We need to roll back precarious employment models. Temporary and limited contracts were initially seen as a way of introducing more flexibility so as to bridge periods of need in certain phases of production. Some employers have taken advantage of the model to push down wages. In general, we must strive for equal pay for equal work.•

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From the May 1, 1945 Brooklyn Daily Eagle:

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The Sarandon Plan, the theory of the politically challenged actor Susan Sarandon which asserted that the election of a kleptocrat Donald Trump would lead to a revolution that obliterates wealth inequality and other social ills, was not the optimal one. A lot of people get hurt in this scenario.

We would be better off electing politicians who alter tax policy, invest in education and work to remove outsize wealth from the political process. Perhaps we could also institute something like the National Service system I’ve suggested, in which maintenance of health, environment and infrastructure would provide good jobs, so that we’re not a nation of “iPhones and potholes.” It won’t be easy, but neither were the challenges of the Gilded Age, the Industrial Revolution or the Great Depression. Major things can be accomplished despite huge obstacles. 

In a Marketwatch article, Steve Goldstein writes of a new study by Thomas Piketty and others which reveals the bottom half of American households to be cratering financially. What follows is the opening of that piece and a few exchanges from a Reddit AMA the writer conducted in relation to the findings.


A new research paper from economists including Thomas Piketty finds that the bottom 50%’s share of income in the United States is “collapsing.”

The paper, written by Facundo Alvaredo, Lucas Chancel, Piketty, Emmanuel Saez and Gabriel Zucman, studies global inequality dynamics. And while there are rising top income and wealth shares in nearly all countries, the magnitude varies substantially.

In the U.S., between 1978 and 2015, the income share of the bottom 50% fell to 12% from 20%. Total real income for that group fell 1% during that time period.

That’s not the case elsewhere. In China — where there also has been a marked rise in income inequality — the bottom 50% saw their income go up by 401%, not surprising given the industrialization the world’s second-largest economy has seen. Even in developed France, however, the bottom 50% saw their income grow, by 39%.

Like income, wealth also has become more concentrated around the world.

The economists say that the varying magnitude suggests different country-specific policies and institutions matter greatly.•


Question:

If we took all the money in the world and divided it equally amongst everyone, we’d all have about $7,000. Do you support doing this?

Steve Goldstein:

I don’t, but then, that’s because it would hurt me. And obviously no U.S. policymaker would be in favor, either.

The point is, should eliminating income inequality be the number-one priority? The authors noted that in China, where income inequality also has skyrocketed, so too has the living standards of the bottom 50%. Now, China is in a different stage of the economic cycle than the U.S., but the point is if the pie is growing — and everyone is getting a reasonable slice — people won’t worry as much about the size of their slice.


Question:

I think having a universal basic income that provided housing, clothing, food, and medical care should be the goal. Provide those 4 things to meet basic needs and income inequality doesn’t mean much. If basic needs are met people are then free to invest time. And time mixed with sweat is what allows small businesses to thrive.

Steve Goldstein:

Universal basic income is a really interesting idea — particularly if, as technology advances, fewer laborers will be needed. The new experiment in Finland along those lines will certainly be closely watched.


Question:

Is rising income inequality today tied to the financialization of the economy in the 70s?

Steve Goldstein:

Tough question. I suspect the greater share of finance activity in the economy is the result of broader changes — laws and technology — then the cause.


Question:

Should we all share equally in all money or should be paid out according to your value?

Steve Goldstein:

I think regulated capitalism is the best economic system out there, for fairness and living standards alike. Small-scale sharing societies (e.g., a kibbutz) can work, but at large scale they have been a disaster.


Question:

As automation continues to replace human jobs, do you see income inequality getting massively worse as the gains accrue to those who create the automation? I.e. the rate of change of income inequality is getting much worse?

Steve Goldstein:

Seems that way so far. The Gini ratio — a common measure of inequality — has steadily climbed since the 1970s, as automation has picked up.


Question:

In a capitalistic system like the U.S., isn’t it futile to seek income equality?

Steve Goldstein:

If the goal is 100% equality, yes.

If the goal is reducing inequality, then no. That can be achieved in different ways, from improving the distribution of skills to taxation. It ostensibly was the message of both major presidential candidates in the last election.•

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We tend to choose the devil we know.

In this election, Americans opted for the past, something that never quite reappears, voting for a nostalgic vision of postwar labor, when manufacturing provided steady, secure middle-class livings. The problem is, factory jobs aren’t really returning regardless of who’s President since these positions are being rapidly thinned by automation, even when companies reshore their plants, and those positions yet to be assumed by machines aren’t what they used to be, as former unionized slots are now often contracted, temporary, poorly paid and dangerous.

Needless to say, manufacturing is not the future anymore than coal is, and while we dream on these remnants of the Industrialized Age, we fall behind China and others in areas that could provide a decent tomorrow, alternative energies among them. It’s an unforced error by the U.S. that we’ll have to endure.

Excerpts follow from: 1) Gary Silverman’s excellent Financial Times article on the perils of manufacturing work no longer guided by “industrial paternalism,” and 2) Lauren Weber’s eye-opening WSJ report on the disquieting shift to contracted labor.


From Silverman:

Regina Elsea of Chambers County, Alabama, had her work cut out for her. At the age of 20, she was engaged to be married and had bills to pay — for her new car, the home she rented with her fiancé, the toys she liked to buy for her dog Cow and, if all went according to plan, the wedding of her dreams, complete with a $4,000 white dress that fitted just right. So, she took a job in a factory last year.

Elsea had the option because Chambers County has been enjoying a manufacturing revival. A hardscrabble corner of the southern US with 34,000 residents, its economy was hurt badly by the decline of its textile industry early this century. However, local officials offering tax breaks and other aid remade the county into a supply-chain link for South Korean carmakers. New factories arose to provide just-in-time parts for two nearby assembly plants Hyundai in Montgomery, Alabama, and Kia in West Point, Georgia.

As a result, unemployment in Chambers County fell from 19.4 per cent in February 2009 to 5.5 per cent last year. But the conditions Elsea encountered on her highly automated production line were a far cry from the ones that people were dreaming about at the Donald Trump campaign rallies. Elsea found work as a temporary employee — she was paid $8.50 an hour, according to her family — and the work killed her.

On June 18 2016 — a Saturday — a robot that Elsea was overseeing at the Ajin USA auto parts plant in Cusseta, Alabama, stopped moving. She and three colleagues tried to get it going, stepping inside the cage designed to protect workers from the machine, according to the federal Occupational Safety and Health Administration. When the robot restarted abruptly, Elsea was crushed. She died the next day when she was taken off a life-support machine, with her mother, Angel Ogle, at her side. After an investigation, Osha concluded that the accident that killed Elsea was preventable.

“Everybody needs to know what’s going on in those plants,” says Ms Ogle, 43, a housecleaner who once worked for a Korean auto parts maker in Alabama herself. “I have seen too many people get hurt.”

The life and death of Regina Elsea points to a national predicament as President Trump seeks to “make America great again” by increasing industrial employment. With automation on the rise and unionisation on the decline, manufacturing jobs no longer guarantee a secure middle-class life as they often did in the past. Much of the new work is low paid and temporary. Staffing agencies sometimes supply factories with workers who have little training or experience — and who can quickly find themselves in harm’s way.•


From Weber:

No one in the airline industry comes close to Virgin America Inc. on a measurement of efficiency called revenue per employee. That’s because baggage delivery, heavy maintenance, reservations, catering and many other jobs aren’t done by employees. Virgin America uses contractors.

“We will outsource every job that we can that is not customer-facing,” David Cush, the airline’s chief executive, told investors last March. In April, he helped sell Virgin America to Alaska Air Group Inc. for $2.6 billion, more than double its value in late 2014. He left when the takeover was completed in December.

Never before have American companies tried so hard to employ so few people. The outsourcing wave that moved apparel-making jobs to China and call-center operations to India is now just as likely to happen inside companies across the U.S. and in almost every industry. …

The shift is radically altering what it means to be a company and a worker. More flexibility for companies to shrink the size of their employee base, pay and benefits means less job security for workers. Rising from the mailroom to a corner office is harder now that outsourced jobs are no longer part of the workforce from which star performers are promoted.

For companies, the biggest allure of replacing employees with contract workers is more control over costs. Contractors help businesses keep their full-time, in-house staffing lean and flexible enough to adapt to new ideas or changes in demand.

For workers, the changes often lead to lower pay and make it surprisingly hard to answer the simple question “Where do you work?” Some economists say the parallel workforce created by the rise of contracting is helping to fuel income inequality between people who do the same jobs.•

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It seems people without material needs who shoplift are oftentimes doing so in the unwitting desire to be caught. Perhaps something happened earlier in life that’s buried so thoroughly that they can’t get at it–or they’re too frightened to go there–so they subconsciously want everything to stop, more or less, until this pain can be addressed. If they’re spotted, apprehended, taken into custody, they’ve been pulled off the path they were on and have no choice but to tend to the wound. Some people probably just want to steal for thrills, sure, but humans are such a strange mix of resilience and fragility and so much goes on beneath the surface, it’s usually a lot more complicated than that. Our stories run deep.

In Jerome Groopman’s New York Review of Books piece about Suzanne O’Sullivan’s Is It All in Your Head? True Stories of Imaginary Illness, the writer raises a really interesting point about modern medicine: In our algorithmic age, a patient’s history is no longer a narrative but instead a bunch of keywords. An excerpt:

Suzanne O’Sullivan is a neurologist specializing in epilepsy who practices in London. Many of her patients suffer from so-called conversion disorders: somatic symptoms caused by psychological distress that defy ready diagnosis by medical tests or physical examination. “They are medical disorders like no others,” O’Sullivan writes. “They obey no rules. They can affect any part of the body…. Almost any symptom we can imagine can become real when we are in distress.”

Physicians who practice family medicine, pediatrics, or internal medicine learn that a substantial proportion of people seeking care have inexplicable complaints. Some surveys indicate that at least a quarter of such patients report symptoms that appear to have no physical basis, and that one in ten continues to believe that he has a terminal disease even after the doctor has found him to be healthy.

Understandably, because the symptoms obscure the psychological genesis, patients seek a physical disorder to explain their condition, and turn to doctors like O’Sullivan to provide a diagnosis. Her findings are striking:

My first consultant post…saw me running a service whose main purpose was to investigate people with epilepsy who were not getting better with standard treatment. It transpired that approximately 70 percent of the people referred to me with poorly controlled seizures were not responding to epilepsy treatment because they did not have epilepsy. Their seizures were occurring for purely psychological reasons.

While not a psychiatrist, O’Sullivan proposes that their collapse and convulsions “happen for a reason. When words are not available our bodies sometimes speak for us—and we have to listen.”

That listening is no longer valued in today’s medicine. The patient’s “history” was once the centerpiece of his medical record, his story written in narrative form. With current electronic templates, information is fragmented into chunks designed to meet so-called quality metrics and maximize revenue from insurers. The patient’s story has been reduced to telegraphed key words that trigger prefigured algorithms, which generate pop-ups on the computer screen for further testing or generic therapies.•

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That handsome and agreeable robot Charlie Rose recently interviewed Warren Buffet and Bill Gates at Columbia University, and the billionaires made a point that is true in the long run, which is that technology replacing human toil and increasing productivity makes us richer. 

That’s correct, at least in the aggregate, though the distribution is tricky.

In the short- and medium-term, that can make for a bumpy ride, especially since the pace of the transitions are much faster now than in the time of steam-powered looms, a situation that’s only likely to accelerate as time passes. Smart policy is needed to fill the breach to help those left behind as Buffet and Gates state, but that’s not looking good presently, especially in America, with President Crazypants running the show.

The comments on automation:

Warren Buffett:

If we were here in 1800 and conducting this, somebody would point out that eventually tractors would come along and better fertilizer and that 80 percent of the people are now employed on the farm and in couple hundred years it is going to be 2 or 3 percent, and what are we going to do with all these people? Well, the answer is we release them. Keynes wrote something about in something called Essays in Persuasion, which he wrote in 1930 about what a more prosperous society would become like, and he actually postulated that in 100 years and we’re now 87 years along, there would be four to eight times as much output per capita—remarkable—but he didn’t quite get at how it would get distributed. But the idea of more output per capita—which is what the progress is made on productivity—that that should be harmful to society is crazy. Now the distribution may be a problem, but if one person could push a button and turn out everything we turn out now, is that good for the world or bad for the world? You’d have to figure out how to distribute it, but you’d free up all kinds of possibilities for everything else. Everything should be devoted initially to getting greater productivity, but people who fall through the wayside through no fault of their own, as the goose lays more golden eggs, should still get a chance to participate in that prosperity, and that’s where government comes in.

Charlie Rose (to Gates):

Do you have anything to add to that?

Bill Gates:

A problem of excess is a different problem than a problem of shortage. If all the tractor and computers stopped working, then we would have problems of shortage there, and we just wouldn’t have enough people to make the output. A problem of excess really forces us took at individuals effected and take those individual resources and make sure they’re directed to them in terms of reeducation and income policies. And the smaller class size in helping handicapped kids reaching out to the elderly…the demand for labor is not at zero. If you ever get to that point, sure, you can shorten the work week, you’ll be just fine with that. This idea of taking an individual during a generation who is effected by that, I think there’s a lot to be learned about that, a lot of thinking we have to do, but the macro picture that it enables is an opportunity.

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