Conservatives like to fret that the United States is turning a giant
European-style welfare state. But our big government and banking rules are what keep us from becoming Europe.
The last few years have been a tale of two currency unions.
On one side of the Atlantic, you have the euro zone. It features a dysfunctional group of state economies that don't necessarily make sense together. Bailouts, recession, and general doom have been the norm lately. On the other side of the Atlantic, you have the United States. It features a dysfunctional group of state economies that don't necessarily make sense together. Bailouts, recession, and ... no, wait. Growth has been disappointing since 2009, but the American economy has grown. Europe would be thrilled with our disappointing growth.
Why is our currency union working so much better than Europe's? As mentioned above, it's not because American states are much more economically uniform than European ones. It's not at all clear that it's easier for the Fed to set monetary policy that makes sense for every American state than it is for the ECB to do for European states. Consider the below chart, courtesy of the Bureau of Economic Analysis, shows GDP growth at the state level for 2009-10. Notice the wide divergence.
There are three broad reasons. First, we have a federal government that sends around more money when times get tough. After the housing bubble burst in Nevada, citizens still got Social Security, unemployment insurance, food stamps, and Medicaid check mostly paid for by the other 49 states that weren't hit as hard.
Second, it's not just about making poor states less poor by giving them money. It's also about the banks. More specifically, about failed banks. We have pan-American banking regulators to close down troubled banks. The euro zone doesn't. So, Nevada isn't on the hook for the bad loans its banks make. But Ireland is. And that can be the difference between a depression-lite and depression-heavy for the local and state economies.
Third, it's about people. They move to where the jobs are. Admittedly, people aren't moving around quite as much as they used to, but it's still easier to do than it is in Europe. It's not front-page news when people move from Nevada to Nebraska for jobs. It is when people move from Portugal to Germany. After all, it's much harder to move when you don't share the same languages or customs, as is the case in Europe.
Conservatives like to fret that the United States is turning a giant European-style welfare state. The irony is that it's precisely our existing big federal government and prudential banking regulation (at least for smaller banks) that has prevented us from turning into Europe. Without those institutions, our currency union wouldn't work either. Hopefully, the euro zone will embrace big federal government before it's too late.
Russia's strongman president has many Americans convinced of his manipulative genius. He's really just a gambler who won big.
I. The Hack
The large, sunny room at Volgograd State University smelled like its contents: 45 college students, all but one of them male, hunched over keyboards, whispering and quietly clacking away among empty cans of Juicy energy drink. “It looks like they’re just picking at their screens, but the battle is intense,” Victor Minin said as we sat watching them.
Clustered in seven teams from universities across Russia, they were almost halfway into an eight-hour hacking competition, trying to solve forensic problems that ranged from identifying a computer virus’s origins to finding secret messages embedded in images. Minin was there to oversee the competition, called Capture the Flag, which had been put on by his organization, the Association of Chief Information Security Officers, or ARSIB in Russian. ARSIB runs Capture the Flag competitions at schools all over Russia, as well as massive, multiday hackathons in which one team defends its server as another team attacks it. In April, hundreds of young hackers participated in one of them.
Russian billionaire Yuri Milner says if the space rock 'Oumuamua is giving off radio signals, his team will be able to detect them—and they may get the results within days.
The email about “a most peculiar object” in the solar system arrived in Yuri Milner’s inbox last week.
Milner, the Russian billionaire behind Breakthrough Listen, a $100 million search for intelligent extraterrestrial life, had already heard about the peculiar object. ‘Oumuamua barreled into view in October, the first interstellar object seen in our solar system.
Astronomers around the world chased after the mysterious space rock with their telescopes, collecting as much data as they could as it sped away. Their observations revealed a truly unusual object with puzzling properties. Scientists have long predicted an interstellar visitor would someday coast into our corner of the universe, but not something like this.
The cryptocurrency is almost certainly due for a major correction. But its long-term value remains a mystery.
To call Bitcoin the biggest and most obvious bubble in modern history may be a disservice to its surreality.
The price of bitcoin has doubled four times this year. In early January, one bitcoin was worth about $1,000. By May, it hit $2,000. In June, it breached $4,000. By Thanksgiving, it was $8,000. Two weeks later, it was $16,000.
This astronomical trajectory might make sense for a new public company with accelerating profits. Bitcoin, however, has no profits. It’s not even a company. It is a digital encrypted currency running on a decentralized network of computers around the world. Ordinary currencies, like the U.S. dollar, don’t double in value by the month, unless there’s a historic deflationary crisis, like the Panic of 1837. Instead, bitcoin’s behavior more resembles that of a collectible frenzy, like Beanie Babies in the late 1990s.
The depiction of uncomfortable romance in "Cat Person" seems to resonate with countless women.
Recent months make it seem like humanity has lost the instruction manual for its “procreate” function and has had to relearn it all from scratch. After scores of prominent men have been fired on sexual-assault allegations, confusion reigns about signals, how to read them, and how not to read into them. Some men are wondering if hugging women is still okay. Some male managers are inviting third parties into performance reviews in order to avoid being alone with women. One San Francisco design-firm director recently said holiday parties should be canceled, as The New York Times reported, “until it has been figured out how men and women should interact.”
Into this steps “Cat Person,” a New Yorker fiction story by Kristen Roupenian that explores how badly people can misread each other, but also how frightening and difficult sexual encounters can be for women, in particular. “It isn’t a story about rape or sexual harassment, but about the fine lines that get drawn in human interaction,” Deborah Treisman, The New Yorker’s fiction editor, told me.
There is clear evidence that it’s best to show children relationship skills that never escalate to physical harm.
Spanking looks to be instantlyeffective. If a child is misbehaving—if he keeps swearing, or playing with matches—and then you spank that child, the behavior stops immediately.
The effect is so apparently obvious that it can drive a sort of delusion. Lived experience tends to be more powerful than facts. One of the few memories that many people retain from early childhood is times they were spanked. The desire to believe it was “for our own good” is strong, if only because the alternative interpretation is bleak.
It’s in the face of personal experiences like these that science has been flailing for generations. Some 81 percent of Americans believe spanking is appropriate, even though decades of research have shown it to be both ineffective and harmful. The refrain I keep hearing is, “Well, I got spanked, and I turned out okay.”
Students don't seem to be getting much out of higher education.
I have been in school for more than 40 years. First preschool, kindergarten, elementary school, junior high, and high school. Then a bachelor’s degree at UC Berkeley, followed by a doctoral program at Princeton. The next step was what you could call my first “real” job—as an economics professor at George Mason University.
Thanks to tenure, I have a dream job for life. Personally, I have no reason to lash out at our system of higher education. Yet a lifetime of experience, plus a quarter century of reading and reflection, has convinced me that it is a big waste of time and money. When politicians vow to send more Americans to college, I can’t help gasping, “Why? You want us to waste even more?”
David Bentley Hart’s text recaptures the awkward, multivoiced power of the original.
In the beginning was … well, what? A clap of the divine hands and a poetic shock wave? Or an itchy node of nothingness inconceivably scratching itself into somethingness? In the beginning was the Word, says the Gospel according to John—a lovely statement of the case, as it’s always seemed to me. A pre-temporal syllable swelling to utterance in the mouth of the universe, spoken once and heard forever: God’s power chord, if you like. For David Bentley Hart, however, whose mind-bending translation of the New Testament was published in October, the Word—as a word—does not suffice: He finds it to be “a curiously bland and impenetrable designation” for the heady concept expressed in the original Greek of the Gospels as Logos. The Chinese word Tao might get at it, Hart tells us, but English has nothing with quite the metaphysical flavor of Logos, the particular sense of a formative moral energy diffusing itself, without diminution, through space and time. So he throws up his hands and leaves it where it is: “In the origin there was the Logos …”
The authors of a new book argue that government regulations have been giving an unfair advantage to those already on top.
Why has inequality increased so much over the past 40 years? Common answers to that question cite changes in trade, technology, globalization, and education. Cheap imports from low-wage countries, in particular China, sapped domestic manufacturing. Companies offshored jobs, fired people, and hired robots. Demand for skilled workers far outstripped the demand for unskilled workers, depressing earnings for those without an advanced degree.
In their excellent, slim new book, Brink Lindsey and Steven Teles—the former the director of the Open Society Project at the libertarian think tank the Niskanen Center, the latter a political scientist at Johns Hopkins—point to an important and overlooked additional cause. InThe Captured Economy: How the Powerful Become Richer, Slow Down Growth, and Increase Inequality, they argue that it is not just that technology and offshoring have wiped away middle-income jobs, but that high-income individuals and big-profit businesses have rewritten the rules of the economy, “capturing” the regulatory system and using it to squeeze out their competition. The result is both greater inequality, and a more sclerotic economy.
As the Alabama Senate race enters its final days, Doug Jones is making an all out push—while his rival is nowhere to be seen.
MONTGOMERY, Ala.—The dramatic contrast between the two Senate campaigns in Alabama grew even more stark during the final weekend before Election Day.
Doug Jones, the Democratic candidate, is holding multiple events every day, taking questions from the press, and campaigning with other Democratic politicians. His opponent Roy Moore has all but disappeared. Dogged by controversy following allegations by nine women of sexual misconduct or abuse when they were teenagers, Moore has not appeared in public since last Tuesday, and isn’t scheduled to do so again before Monday. Reports suggest that he was in Philadelphia on Saturday watching the Army-Navy football game, and a Moore spokesperson told me that he attended a Christmas gathering with supporters and friends on Sunday evening—closed to the press.
Five times a day for the past three months, an app called WeCroak has been telling me I’m going to die. It does not mince words. It surprises me at unpredictable intervals, always with the same blunt message: “Don’t forget, you’re going to die.”
Sending these notices is WeCroak’s sole function. They arrive “at random times and at any moment just like death,” according to the app’s website, and are accompanied by a quote meant to encourage “contemplation, conscious breathing or meditation.” Though the quotes are not intended to induce nausea and despair, this is sometimes their effect. I’m eating lunch with my husband one afternoon when WeCroak presents a line from the Zen poet Gary Snyder: “The other side of the ‘sacred’ is the sight of your beloved in the underworld, dripping with maggots.”