A fully armed and operational fiscal cliff would cost us 3.4 million jobs in 2013
These aren't the tax hikes we're looking for.
With the election behind us, all the attention inside the Beltway has turned to the so-called fiscal cliff -- the tax increases and spending cuts set to start kicking in on January 1, 2013. As my colleague Derek Thompson points out, it's more of a "fiscal hill" than a "fiscal cliff", but the bottom line is that unless Congress does something there will be a great disturbance in the budget that leaves billions of dollars crying out in terror, only to disappear.
What are these (mostly) peaceful billions under threat from the fully armed and operational fiscal cliff? Well, it comes in four parts: 1) cuts to defense spending from sequestration, 2) cuts to non-defense and Medicare payments to doctors from sequestration, 3) the expiration of the payroll tax cut and extended unemployment insurance, and 4) the Bush tax cuts.
These tax increases and spending cuts are too clumsy, random, and big to do anything but send us back into recession. The Congressional Budget Office (CBO) calculates the cumulative fiscal contraction would send GDP down 0.5 percent and unemployment up to 9.1 percent by the end of 2013. Unless, of course, we undo what we have done. The chart below from the CBO shows how many jobs we would save from reversing each part of the fiscal cliff. The difference between extending all of the Bush tax cuts and extending all but the Bush tax cuts for the rich is just 200,000 jobs over 12 months.
Washington's adherence to that old bipartisan religion hasn't helped them conjure up a grand bargain, at least not yet. A potential debt ceiling sequel as the fiscal cliff hits won't make it any easier. But it's crazy that Washington is haggling over the least stimulative part of the fiscal cliff -- the Bush tax cuts for the rich -- while seeming willing to let the most stimulative part -- the payroll tax cut and extended unemployment insurance -- lapse.
Let's hope the threat of sharply higher taxes gets both sides to the negotiating table. Because our economy can't repel tax hikes and spending cuts of this magnitude.
It happened gradually—and until the U.S. figures out how to treat the problem, it will only get worse.
It’s 2020, four years from now. The campaign is under way to succeed the president, who is retiring after a single wretched term. Voters are angrier than ever—at politicians, at compromisers, at the establishment. Congress and the White House seem incapable of working together on anything, even when their interests align. With lawmaking at a standstill, the president’s use of executive orders and regulatory discretion has reached a level that Congress views as dictatorial—not that Congress can do anything about it, except file lawsuits that the divided Supreme Court, its three vacancies unfilled, has been unable to resolve.
On Capitol Hill, Speaker Paul Ryan resigned after proving unable to pass a budget, or much else. The House burned through two more speakers and one “acting” speaker, a job invented following four speakerless months. The Senate, meanwhile, is tied in knots by wannabe presidents and aspiring talk-show hosts, who use the chamber as a social-media platform to build their brands by obstructing—well, everything. The Defense Department is among hundreds of agencies that have not been reauthorized, the government has shut down three times, and, yes, it finally happened: The United States briefly defaulted on the national debt, precipitating a market collapse and an economic downturn. No one wanted that outcome, but no one was able to prevent it.
Learning how to bond with my daughter, who found comfort in the familiarity of being alone, has come through understanding reactive attachment disorder.
My hands hover over the computer keyboard. They are trembling. I hold down the shift key and type the words with intention, saying each letter aloud: “R-e-a-c-t-i-v-e A-t-t-a-c-h-m-e-n-t D-i-s-o-r-d-e-r.” The words “reactive attachment disorder” are memory beads I gather into a pile and attempt to string along on a necklace.
I think back to when Judith, my neighbor who is a psychiatrist, offhandedly threw out the term the first time she met Julia. We were talking about babies who start their lives in orphanages, and she mentioned the disorder. She wasn't suggesting that my daughter Julia showed any signs, but she’d said it was a well-known problem with children who’d been adopted from Romanian orphanages in the '80s and '90s. I remember nodding my head and thinking, Shut up, Judith. We got Julia young. It shouldn't be an issue.
The June 23 vote represents a huge popular rebellion against a future in which British people feel increasingly crowded within—and even crowded out of—their own country.
I said goodnight to a gloomy party of Leave-minded Londoners a few minutes after midnight. The paper ballots were still being counted by hand. Only the British overseas territory of Gibraltar had reported final results. Yet the assumption of a Remain victory filled the room—and depressed my hosts. One important journalist had received a detailed briefing earlier that evening of the results of the government’s exit polling: 57 percent for Remain.
The polling industry will be one victim of the Brexit vote. A few days before the vote, I met with a pollster who had departed from the cheap and dirty methods of his peers to perform a much more costly survey for a major financial firm. His results showed a comfortable margin for Remain. Ten days later, anyone who heeded his expensive advice suffered the biggest percentage losses since the 2008 financial crisis.
Unexpected discoveries in the quest to cure an extraordinary skeletal condition show how medically relevant rare diseases can be.
When Jeannie Peeper was born in 1958, there was only one thing amiss: her big toes were short and crooked. Doctors fitted her with toe braces and sent her home. Two months later, a bulbous swelling appeared on the back of Peeper’s head. Her parents didn’t know why: she hadn’t hit her head on the side of her crib; she didn’t have an infected scratch. After a few days, the swelling vanished as quickly as it had arrived.
When Peeper’s mother noticed that the baby couldn’t open her mouth as wide as her sisters and brothers, she took her to the first of various doctors, seeking an explanation for her seemingly random assortment of symptoms. Peeper was 4 when the Mayo Clinic confirmed a diagnosis: she had a disorder known as fibrodysplasia ossificans progressiva (FOP).
The results of the referendum are, in theory, not legally binding.
Lest we think the Euroskepticism displayed this week by British voters is new, let me present a scene from the BBC’s Yes, Minister, a comedy about the U.K. civil service’s relationship with a minister. The series ran from 1980 to ’84 (and, yes, it was funny), at a time when the European Union was a mere glint in its founders’ eyes.
The Europe being referred to in the scene is the European Economic Community (EEC), an eventually 12-member bloc established in the mid-1950s, to bring about greater economic integration among its members.
In many ways, the seeds of the U.K.’s Thursday referendum on its membership in the European Union were sown soon after the country joined the now-defunct EEC in 1973. Then, as now, the ruling Conservative Party and opposition Labour, along with the rest of the country, were deeply divided over the issue. In the run-up to the general election the following year, Labour promised in its manifesto to put the U.K.’s EEC membership to a public referendum. Labour eventually came to power and Parliament passed the Referendum Act in 1975, fulfilling that campaign promise. The vote was held on June 5, 1975, and the result was what the political establishment had hoped for: an overwhelming 67 percent of voters supported the country’s EEC membership.
Shedding pounds is usually a losing battle—research suggests it’s better to just focus on building a healthy lifestyle.
“My own history of yo-yo dieting started when I was 15 and lasted about three decades,” said Sandra Aamodt, a neuroscientist and the author of Why Diets Make Us Fat, on Saturday at Spotlight Health, a conference co-hosted by the Aspen Institute and The Atlantic. “I lost the same 15 pounds pretty much every year during that same period, and gained it back regular as clockwork.”
This is a classic tale—the diet that doesn’t take, the weight loss that comes right back. The most recent, extreme, highly publicized case was that of the study done on contestants from the reality show The Biggest Loser, most of whom, six years after losing 100 to 200 pounds, had gained most of it back, and had significantly slowed metabolisms.
American society increasingly mistakes intelligence for human worth.
As recently as the 1950s, possessing only middling intelligence was not likely to severely limit your life’s trajectory. IQ wasn’t a big factor in whom you married, where you lived, or what others thought of you. The qualifications for a good job, whether on an assembly line or behind a desk, mostly revolved around integrity, work ethic, and a knack for getting along—bosses didn’t routinely expect college degrees, much less ask to see SAT scores. As one account of the era put it, hiring decisions were “based on a candidate having a critical skill or two and on soft factors such as eagerness, appearance, family background, and physical characteristics.”
The 2010s, in contrast, are a terrible time to not be brainy. Those who consider themselves bright openly mock others for being less so. Even in this age of rampant concern over microaggressions and victimization, we maintain open season on the nonsmart. People who’d swerve off a cliff rather than use a pejorative for race, religion, physical appearance, or disability are all too happy to drop the s‑bomb: Indeed, degrading others for being “stupid” has become nearly automatic in all forms of disagreement.
How the Brexit vote activated some of the most politically destabilizing forces threatening the U.K.
Among the uncertainties unleashed by the Brexit referendum, which early Friday morning heralded the United Kingdom’s coming breakup with the European Union, was what happens to the “union” of the United Kingdom itself. Ahead of the vote, marquee campaign themes included, on the “leave” side, the question of the U.K.’s sovereignty within the European Union—specifically its ability to control migration—and, on the “remain” side, the economic benefits of belonging to the world’s largest trading bloc, as well as the potentially catastrophic consequences of withdrawing from it. Many of the key arguments on either side concerned the contours of the U.K.-EU relationship, and quite sensibly so. “Should the United Kingdom remain a member of the European Union or leave the European Union?” was, after all, the precise question people were voting on.
The city is riding high after the NBA final. But with the GOP convention looming, residents are bracing for disappointment.
Cleveland’s in a weird mood.
My son and I attended the Indians game on Father’s Day, the afternoon before game seven of the NBA Finals—which, in retrospect, now seems like it should be blockbustered simply as The Afternoon Before—when the Cavaliers would take on the Golden State Warriors and bring the city its first major-league sports championship in 52 years.
I am 52 years old. I’ve lived in Northeast Ohio all my life. I know what Cleveland feels like. And it’s not this.
In the ballpark that day, 25,269 of us sat watching a pitcher’s duel, and the place was palpably subdued. The announcer and digitized big-screen signage made no acknowledgement of the city’s excitement over the Cavaliers. There were no chants of “Let’s Go Cavs,” no special seventh-inning-stretch cheer for the Indians’ basketball brothers, who play next door in the Quicken Loans Arena, which in a few weeks will host the Republican National Convention.