The welfare state is dead. Long live the welfare state!
It's getting hard to keep track of which countries aren't Greece anymore.
First, Ireland wasn't Greece. Then it kind of was. Then it was Portugal's turn to not be Greece. Then it was Portugal's turn to be Greece. Next, Spain wasn't Greece. But now it might be. At the very least it's Ireland. Although Uganda looks like it's in the clear. It's not Spain, which could be Greece. That's better than Cyprus can say. They're pretty much Greece. And, of course, Greece is almost certainly Greece. That goes without saying.
But there's one country that definitely isn't Greece. That's the United States.
Let's step back. What makes a country "Greece"? It's become shorthand for wild government overspending -- especially on entitlements. Paul Ryan says we don't have long to avoid the same fate. Neither does the terrifyingly successful investor Michael Burry. They think that absent drastic reform -- read: cuts -- to the social safety net, we'll end up in penury like the Greeks.
It's a scary story. But it's just a scare story. Yes, we have a long-term healthcare spending problem. But that doesn't make us Greece. Heck, Greece isn't even Greece. At least not the "Greece" that's become such a political football. The evidence -- or lack thereof -- is in the chart below. It compares each country's average social spending since 1999, via the OECD, against its current borrowing costs. See the pattern?
There is none. Europe's biggest social spenders don't have any problems. And Europe's biggest problem countries don't spend that much on social programs. The death knell of the welfare state this is not.
Here's the dirty little secret of the euro debt crisis. There is no euro debt crisis. There is a euro crisis. The debt is a symptom of the crisis of the common currency.* Europe's bailed out countries all saw piles of capital pour in during the boom, only to pour out during the bust. They were left with inflated, uncompetitive wages -- and that's sent them into deep slumps. That's been despite lower social spending than their northern euro neighbors. Germany, Austria, Finland, Finland, the Netherlands, Belgium and -- at least for now -- France have all been able to sustain more generous safety nets thanks to the magic of competitive wages.
It's the same story for Europe's non-euro nations. Sweden, Denmark, Norway, Switzerland and the Czech Republic are all lucky enough to not be passengers on the Titantic members of the common currency. (Denmark has pegged its krone to the euro, but they still have their own central bank). Most of them spend more on social programs than the so-called PIIGS, but all of them can borrow for almost nothing. Investors are actually paying the Swiss and Danish governments for the privilege of lending to them short-term. Think about that. What's going on? Well, if things ever get rough, they can just print money or devalue their currencies. In other words, they can never run out of money.
But Greece can. Being in the euro means never being able to print your own money. And that turns each euro country into a bank. Imagine a bank run. Fear becomes self-fulfilling. Depositors try to pull their money out before everyone else because they're worried the bank will collapse -- which, of course, causes the bank's collapse. Very Oedipal -- minus the parent love. It's the same with Greece. Investors worry that Greece will run out of euros. That's a very rational fear right now. So they try to sell-off their bonds, which pushes up Greece's borrowing costs -- and makes it more likely that Greece will run out of euros. This kind of panic is why Italy -- which has a primary surplus! -- is flirting with trouble too. Only the ECB can stop this.
Notice that I didn't talk about debt at all in the previous paragraph. The PIIGS have too-high wages, too little growth, and face crippling crises of confidence. Austerity won't cure any of that. It'll make things worse. It has. It kneecaps growth. And investors are more worried about growth right now than they are deficits.
Also notice that none of this applies to the United States. We never have to worry about self-fulfilling prophesies of bankruptcy because we can never run out of dollars. As the Boomers retire, we'll spend more on entitlements. That's not the end of the world. Unless you think Sweden is the end of the world. Yes, we need to rein in healthcare inflation, and, yes, we need to raise some more revenue. The former might already be happening. The latter is a political choice. Neither makes us Greece.
So don't believe the rumors of the welfare state's death. They're greatly exaggerated.
* Caveat: Greece is sui generis. They really did just spend too much money. They're not pictured here, because their 10-year bond yield is -- wait for it -- off the chart. Fitting their 27 percent borrowing costs onto this graph makes it too hard to see anything else. But Greece's average social spending is only 21.4 percent of GDP.
The Republican frontrunner repudiated a long litany of party orthodoxies in a contentious debate—but will that hurt his candidacy, or help it?
Donald Trump blamed the Bush administration for failing to heed CIA warnings before 9/11; denounced the Iraq War for destabilizing the Middle East; defended the use of eminent domain; promised to save Social Security without trimming benefits; and credited Planned Parenthood for “wonderful things having to do with women's health.”
He’s fresh off a crushing victory in New Hampshire, and the prohibitive favorite in the polls in South Carolina. Will his flouting of Republican orthodoxy sink his chances—or is it his very willingness to embrace these heterodox stances that has fueled his rise?
Even his rivals no longer seem certain of the answer. Jeb Bush, at one point, called Trump “a man who insults his way to the nomination.” He sounded like a man ruing a race that has run away from him.
Fredrickson, a leading researcher of positive emotions at the University of North Carolina at Chapel Hill, presents scientific evidence to argue that love is not what we think it is. It is not a long-lasting, continually present emotion that sustains a marriage; it is not the yearning and passion that characterizes young love; and it is not the blood-tie of kinship.
Rather, it is what she calls a "micro-moment of positivity resonance." She means that love is a connection, characterized by a flood of positive emotions, which you share with another person—any other person—whom you happen to connect with in the course of your day. You can experience these micro-moments with your romantic partner, child, or close friend. But you can also fall in love, however momentarily, with less likely candidates, like a stranger on the street, a colleague at work, or an attendant at a grocery store. Louis Armstrong put it best in "It's a Wonderful World" when he sang, "I see friends shaking hands, sayin 'how do you do?' / They're really sayin', 'I love you.'"
A passionate, complex conservative, Scalia forever changed how Americans think about original intent. Both liberals and conservatives now play by Scalia’s rules.
In 1996, Antonin Scalia assessed the legacy of the great liberal Justice William Brennan: “He is probably the most influential justice of the century.” Depending on future events, the legacy of the great conservative Scalia—who died Saturday at 79—may eclipse that of Brennan.
Scalia’s death is a monumental event; a Supreme Court without him is difficult to imagine. His legacy is so large and complex that it will take weeks simply to catalogue the questions he leaves behind.
By all accounts, in private Scalia was a figure of considerable charm to liberals and conservatives alike. As a public man, he was by turns impish, saturnine, quarrelsome, and penetrating. He set the terms of debate in the law in not one but two areas: the interpretation of statutes (which is the bulk of the Court’s docket) and the application of an 18th-century Constitution for 20th- and 21st-century needs. In statutory construction, he emphasized the text and the text alone. Before his ascendancy, it had been customary to infer the “intent” of the legislature from committee reports and statements by the measure’s sponsors. Scalia would not have that—only the words of the statute were law, he insisted; a reviewing court should apply only them. Though Scalia called his approach a modest one, the austere textual creed had the effect of placing judges at the center of the complex world of federal statutes. That said, it must be added that his background in the law of administrative agencies made him a careful reader—which a textualist ought to be. In cases with no ideological valence, it was clear that his colleagues often looked to him for legal guidance.
The GOP presidential candidate—and at least two of his rivals—are acting as if the meaning of the Constitution changes depending on the timing of the next election.
Antonin Scalia is dead. Is it legitimate for the Republican-controlled Senate to refrain from confirming a replacement for the late Supreme Court justice until a new president is elected, as Ted Cruz, Marco Rubio, Ben Carson and others on the right have urged? Or does the Senate have an obligation to approve a qualified nominee put forth by President Obama, as many on the left argued as soon as news of the death broke?
The debate on Twitter was instantaneous. “The Democrat-controlled Senate confirmed Ronald Reagan's nominee to the Court, Anthony Kennedy, in his last year in office: 1988,” the liberal journalist Glenn Greenwald observed. Jim Antle, a paleoconservative, retorted with a Robert Bork reference, writing, “And it wouldn't quite have been in his final year if first choice had been confirmed in 1987.”
“During the 100 days before the relationship starts, we observe a slow but steady increase in the number of timeline posts shared between the future couple.”
Facebook might understand your romantic prospects better than you do.
In a blog post published yesterday, the company’s team of data scientists announced that statistical evidence hints at budding relationships before the relationships start.
As couples become couples, Facebook data scientist Carlos Diuk writes, the two people enter a period of courtship, during which timeline posts increase. After the couple makes it official, their posts on each others’ walls decrease—presumably because the happy two are spending more time together.
During the 100 days before the relationship starts, we observe a slow but steady increase in the number of timeline posts shared between the future couple. When the relationship starts ("day 0"), posts begin to decrease. We observe a peak of 1.67 posts per day 12 days before the relationship begins, and a lowest point of 1.53 posts per day 85 days into the relationship. Presumably, couples decide to spend more time together, courtship is off, and online interactions give way to more interactions in the physical world.
The passing of Antonin Scalia roils the presidential campaign and could leave the Supreme Court deadlocked until 2017. Will the Senate even consider a replacement nominated by President Obama?
The sudden death of Antonin Scalia, an associate justice of the United States Supreme Court, on Saturday morning will shake up American politics like few events in recent memory, reshaping the 2016 presidential campaign and potentially leaving the Supreme Court deadlocked for more than a year.
In the short term, President Obama will have to decide who to nominate to replace the voluble conservative jurist, and the Republican-led Senate will have to decide whether to even consider the president’s pick in the heat of the election campaign. Majority Leader Mitch McConnell immediately signaled that an Obama nominee would not get a vote this year. “The American people should have a voice in the selection of their next Supreme Court justice,” the Kentucky Republican said in a statement. “Therefore, this vacancy should not be filled until we have a new president.” CNN reported Saturday evening that Obama intends to nominate a new Supreme Court justice, setting up a potential confrontation with Republicans that would play out both on Capitol Hill and on the campaign trail.
Today’s empires are born on the web, and exert tremendous power in the material world.
Mark Zuckerberg hasn’t had the best week.
First, Facebook’s Free Basics platform was effectively banned in India. Then, a high-profile member of Facebook’s board of directors, the venture capitalist Marc Andreessen, sounded off about the decision to his nearly half-a-million Twitter followers with a stunning comment.
“Anti-colonialism has been economically catastrophic for the Indian people for decades,” Andreessen wrote. “Why stop now?”
After that, the Internet went nuts.
Andreessen deleted his tweet, apologized, and underscored that he is “100 percent opposed to colonialism” and “100 percent in favor of independence and freedom.” Zuckerberg, Facebook’s CEO, followed up with his own Facebook post to say Andreessen’s comment was “deeply upsetting” to him, and not representative of the way he thinks “at all.”
The number of American teens who excel at advanced math has surged. Why?
On a sultry evening last July, a tall, soft-spoken 17-year-old named David Stoner and nearly 600 other math whizzes from all over the world sat huddled in small groups around wicker bistro tables, talking in low voices and obsessively refreshing the browsers on their laptops. The air in the cavernous lobby of the Lotus Hotel Pang Suan Kaew in Chiang Mai, Thailand, was humid, recalls Stoner, whose light South Carolina accent warms his carefully chosen words. The tension in the room made it seem especially heavy, like the atmosphere at a high-stakes poker tournament.
Stoner and five teammates were representing the United States in the 56th International Mathematical Olympiad. They figured they’d done pretty well over the two days of competition. God knows, they’d trained hard. Stoner, like his teammates, had endured a grueling regime for more than a year—practicing tricky problems over breakfast before school and taking on more problems late into the evening after he completed the homework for his college-level math classes. Sometimes, he sketched out proofs on the large dry-erase board his dad had installed in his bedroom. Most nights, he put himself to sleep reading books like New Problems in Euclidean Geometry and An Introduction to Diophantine Equations.
The Islamic State is no mere collection of psychopaths. It is a religious group with carefully considered beliefs, among them that it is a key agent of the coming apocalypse. Here’s what that means for its strategy—and for how to stop it.
What is the Islamic State?
Where did it come from, and what are its intentions? The simplicity of these questions can be deceiving, and few Western leaders seem to know the answers. In December, The New York Times published confidential comments by Major General Michael K. Nagata, the Special Operations commander for the United States in the Middle East, admitting that he had hardly begun figuring out the Islamic State’s appeal. “We have not defeated the idea,” he said. “We do not even understand the idea.” In the past year, President Obama has referred to the Islamic State, variously, as “not Islamic” and as al-Qaeda’s “jayvee team,” statements that reflected confusion about the group, and may have contributed to significant strategic errors.
Einstein’s gravitational waves rest on a genuinely radical idea.
After decades of anticipation, we have directly detected gravitational waves—ripples in spacetime traveling at the speed of light through the universe. Scientists at LIGO (the Laser Interferometic Gravitational-wave Observatory) have announced that they have measured waves coming from the inspiral of two massive black holes, providing a spectacular confirmation of Albert Einstein’s general theory of relativity, whose hundredth anniversary was celebrated just last year.
Finding gravitational waves indicates that Einstein was (once again) right, and opens a new window onto energetic events occurring around the universe. But there’s a deeper lesson, as well: a reminder of the central importance of locality, an idea that underlies much of modern physics.