Economy

Bring Back the Space Race

To remain competitive, the U.S. needs to rebalance its portfolio of talent.

After the Soviets launched Sputnik, the U.S. created NASA and funneled millions of resources into technological and scientific research to shore up U.S. competitiveness. In China today, the government has had the foresight the U.S. once did and has put in place a talent program to support its students in the pursuit of higher education and innovation. Returning to the investment in science education of the Sputnik days and fostering technical talent like the Chinese may at once help reduce U.S. employment and make the country more competitive technologically. As Reuters recently reported, the U.S. has an insufficient supply of qualified skilled workers to fill job vacancies that require technical knowledge—especially in manufacturing, where technicians are in high demand. A manpower survey also reported that 52 percent of U.S. companies had trouble filling essential positions; that study supports statistics from the U.S. Labor Department showing that more three million tech jobs...

Just TELL Me You're Gonna Invade My Privacy

Federal regulators have reached a settlement with Facebook over privacy violations—but it's just a slap on the wrist for an industry that regularly sells user data.

Washington, D.C., and Facebook Inc. took part yesterday in another round of what we might call "working on their relationship." But that we're fixated on specific privacy violations rather than the day-in-day-out use of our personal data lets us know that there's a limit to the conversation in which they're engaged. What happened is this: The Federal Trade Commission (FTC) reached a settlement with Facebook that requires the company to stop engaging in privacy-violating practices and to participate in regular third-party privacy audits for the next 20 years. The agreement, prompted by a complaint by privacy-advocacy groups, is meant to address several places were Facebook was found to have gone astray in recent years—not truly deleting deleted user accounts, sharing friend lists that had been marked private, and changing privacy settings without really telling anyone. The agreement still needs to be approved by FTC commissioners at the end of December, after a period of public comment...

Good News, Bad News for Europe

The good news? France and Germany seem to be in agreement. The bad news? They agree Europe needs more belt tightening so that bankers can get more relief. The leaders of France and Germany, reportedly, are discussing ways to compel European nations to have a common fiscal policy without resorting to the cumbersome process of amending the EU treaty. This was enough to reassure stock markets for the moment, which are nothing if not subject to herd instincts. But who are we kidding here? More austerity may appease the bankers’ need for their pound of flesh, but it will only make the Great Deflation worse. A common fiscal policy is a good idea, but one biased towards austerity is exactly the wrong medicine Before this crisis is over, the Europeans will need to find their way to a common invest-and-grow strategy, which includes debt relief for struggling countries; as well as Euro-bonds and a real crackdown on banker abuses. And the European Central Bank will have to function as a true...

Life, Monetized

In Deadly Monopolies, Harriet A. Washington asserts that corporations now own life itself.

I n 2010, Rebecca Skloot published The Immortal Life of Henrietta Lacks , a New York Times bestseller about a poor black woman in the late stages of cancer in 1950s Baltimore whose doctor removed cervical tissue from her without her knowledge. By remaining viable outside of Lacks’s body, the cells became “immortal” and thus quite valuable; scientists using them have been able to pursue research that would have been unimaginable beforehand, leading to achievements such as the polio vaccine and advances against cancer and Parkinson’s disease. Skloot’s book captivated readers by revealing the story of exploitation behind the development of what have become known as “HeLa cells.” Similar episodes of scientific advancement on the backs of vulnerable subjects have been exposed before, from J. Marion Sims’s gruesome mid-19th-century experiments on black slaves that laid the groundwork for the modern field of gynecology to recently uncovered evidence that in the 1940s, U.S. researchers...

For Europe, High Stakes in Greece

Stabilizing one teetering economy won't end the eurozone's dance of death.

T he problems of the euro turned critical when the Greek government nearly defaulted in May 2010 and the International Monetary Fund and European Union agreed to a bailout. In truth, the 17-nation euro area had deep troubles long before that. Its oversized and undercapitalized banks, its common monetary policy but diverse and fragmented fiscal policies, the persistent economic imbalances among nations that use the euro, and a cumbersome decision-making structure all made the euro-area economy vulnerable. The crisis, which still bears the mark of the Greek tragedy that first set it off, has now spread far beyond Greece. The euro was created for normal times, but the EU lacked good mechanisms for crisis management. At every step of the Greek drama, policy-maker responses have remained behind the curve of economic deterioration. Slowly but surely, this erosion of confidence ensnared other countries, such as Ireland and Portugal, then spread to Spain and Italy, both perceived to be...

A More Perfect Union

E mily Dopper and her boyfriend, Willem van Leeuwen, tourists from the Netherlands, were on their way to lunch at the Boathouse restaurant in New York’s Central Park when they encountered the picket line. Clay Skaggs, a striking waiter, intercepted them. “We’re asking you not to eat here,” he said in a tone of polite explanation. “They practice sexual harassment, and they stole $3 million in wages over two years. They also got a C-rating on their health inspection.” Dopper looked dejected and unconvinced. “We came here to Central Park all the way from Europe,” she said. “There are lots of other great places nearby,” Skaggs continued. He handed them a foldout flyer. One side featured a detailed map of the park and its myriad paths and attractions, displaying locations and write-ups of other restaurants and a big red circle with a slash around the Boathouse. On the other side was an explanation of the issues in the strike, with summaries in 19 languages. Adopting his best waiter’s...

Woe Is Europe

A week of credit-rating downgrades and skyrocketing interest rates fuels fears the monetary union is doomed.

(AP Photo/Michael Probst) T hings are now hanging by a thread in Europe. In a disastrous auction of two-year bonds and six-month bills on Friday, Italy was forced to pay interest rates of 7.8 percent and 6.5 percent, respectively—levels far higher than those that sent Greece into the arms of its troika of lenders. Spain, despite the emphatic election a week ago of a new right-wing government committed to austerity, on Tuesday paid an average yield of 5.11 percent on three-month bills and 5.23 percent on six-month bills. The three-month yields were more than double what the country paid a month ago, while the six-month bills had cost it only 3.30 percent in October. Rumors have begun circulating that the new government is planning to ask for some form of outside help to service its debts. Belgium’s credit rating was downgraded by Standard & Poor’s and Portugal was downgraded to junk by Fitch. Even Germany felt the tremors of market turbulence, managing on Thursday to sell only 3.64...

Thanks, But No Thanksgiving

Employees and consumers fight back against "Black Friday," which increasingly starts on the holiday itself.

It may feel as traditional as leftover turkey, but it’s only been since the 1960s that retailers have named the day after Thanksgiving, when bargain shoppers hunt for discount goods like big game, "Black Friday." But this year, black could just refer to the pall cast on store employees’ holidays, which have been increasingly cut short in an effort to start the sales earlier and earlier. In Nebraska, rumors of a Thanksgiving midnight opening at the Omaha North Target store where Anthony Hardwick has worked for the past three years first circulated on Facebook. By the time store managers confirmed that employees were scheduled to start their shifts at 11 p.m. Thanksgiving Day, the part-time parking attendant had taken matters into his own hands. “There was a sense of inevitability about the whole thing,” Hardwick said. “Initially, I thought I’d like to start a petition to give to corporate to show how many team members and customers are against this.” Hardwick argued that all hourly and...

Ivy League Brain Drain

At Yale, OWS-inspired protesters target recruiters for the country's major finance firms.

Joseph Breen Student protesters and attendees—both from Yale—at a Morgan Stanley recruiting event. S he was tall, blond, standing in the lobby of a swanky hotel in downtown New Haven. She came for the recruitment seminar by Morgan Stanley, the banking and investment firm. Like the other Yale University students who attended, she came to learn more about starting a lucrative career on Wall Street. And like most of the people I interviewed that evening, she seemed afraid. "Thanks for talking with me, Ally," I said. "Can I have your last name?” "I don't know if I can say," she said. "I'll be right back." She never returned. Perhaps it was all the noise outside. To get to the hotel, Ally and dozens of other would-be recruits had to get by a phalanx of demonstrators, also from Yale, who were protesting the Morgan Stanley event. They were raising awareness of what they call the "brain drain" of American society. While Yale graduates who become entrepreneurs, artists, teachers, and...

What to Read Before You Unwonk Tonight

Jonathan Chait wrote a truly excellent essay in this month’s issue of New York that refuses to sympathize with the liberal journalists and scholars who have been writing damning commentary on Democratic presidents since the early 20th century. Instead of adding to the journalistic canon of how Obama is a traitor to his 2008 campaign, he turns his sight back on the Drew Westens and Patrick Caddells and Doug Schoens of the world and tries to explain why liberals are never satisfied with the people they elect: For almost all of the past 60 years, liberals have been in a near-constant emotional state of despair, punctuated only by brief moments of euphoria and occasional rage. When they’re not in charge, things are so bleak they threaten to move to Canada; it’s almost more excruciating when they do win elections, and their presidents fail in essentially the same ways: He is too accommodating, too timid, too unwilling or unable to inspire the populace. No one should be surprised that the...

What Happened to the Tea Party?

When the 2012 Republican nominating contest was getting underway earlier this year, it was widely predicted (I predicted it myself) that the race would eventually come down to a contest between an establishment candidate like Mitt Romney or Tim Pawlenty, and a Tea Party candidate more appealing to the party's base. It seemed perfectly reasonable at the time; after all, the Tea Party had energized the GOP and propelled it to the historic 2010 congressional election victory. With its anti-Obama fervor, the Tea Party was the focus of all the GOP's grassroots energy, to such a degree that nearly every Republican felt compelled to proclaim him or herself a Tea Partier. Once the Tea Party's champion was selected, we would discover just how much strength the party establishment still held in our decentralized political age. Yet with the Iowa caucus just six weeks away, it appears that there will be no grand battle between the establishment and the insurgents, the old guard and the new. There...

Super-Duper Failure

As many of us have been hoping and praying, the Super Committee fell of its own weight, making room for a much better debate about where budget cutting fits into a recovery strategy (if at all), and how to raise taxes progressively in order to finance the investments and jobs that America needs. President Barack Obama was unwise to make this devil’s bargain in the first place; he has since moved on to emphasizing jobs and recovery. The Super Committee crack-up should be the last gasp of the “bipartisan” folly about deficit reduction as key to recovery—which the president himself gave a big boost with his appointment of the late Bowles-Simpson Commission. Now, mercifully, the Republicans stand exposed as the party that would ravage Social Security, Medicare, Medicaid, and other valued social outlays in order to spare the richest 1 percent any tax increases. Republicans have been in their own echo chamber for so long that they don’t quite grasp that most of the voters oppose this idea...

The Establishment Strikes Back

Protesters in front of the New York Stock Exchange Thursday.
Occupy Weekly: The Establishment Strikes Back. This was the week that Occupy Wall Street faced its greatest pushback and pulled off its largest action yet. Sunday’s surprise police raid on Occupy Portland turned out to be one of several around the country, as mayors sent cops to clear occupations in cities including Chapel Hill, Salt Lake City, and New York. Some raids were marked by violence against protesters and press (including reporters from the right-wing New York Post and Daily Caller ). Occupy Boston has secured a preemptive restraining order in hopes of warding off a similar eviction, and Occupy Los Angeles is seeking one as well. Post-raid occupations face new choices and challenges going forward. But the crackdown seems to have swelled the numbers for Thursday’s Day of Action , which opened in New York with protesters and police surrounding the New York Stock Exchange. By day’s end, New York occupiers had staged a student walk-out, shared personal stories in subway cars,...

What to Read Before You Unwonk for the Weekend

Rejoice! Congress won at not ruining the Constitution today! The Super Committee won at doing nothing . NERD FIGHT. Round Two. Or three. This has been going on for a while. The Monkey Cage’s John Sides added his two cents to the Economics v. Campaigns election forecast debate, saying that it’s difficult to assess how effective campaigns are while we’re watching them unfold. Maybe it’s time to bench this topic and bring it back for round three after next November. Nate Silver also tried to find out which economic factors have been most consistent in predicting electoral outcomes. Turns out the ISM manufacturing index is a better predictor of whether an incumbent will re-win the White House than the change in unemployment rate or GDP. Yay data. As an addendum to the “Do Campaigns Matter” debate, the “Do Debates Matter” debate might also become a thing soon, followed inevitably by the, “Do the Party Elite matter” and “Do Superdelegates matter” debates that close every primary season. I’m...

Unemployment and Underemployment Over Time

I'm not the only nerd here in the room, right? Phew. Check out Remapping Debate's new graph of Bureau of Labor Statistics data of unemployment and underemployment, by state, over time. Don't miss the widget that lets you examine how the data differs by year. In brief: It looks grim. Do use the data for good.

Pages