The typical American family spends half its income on housing and transportation. The typical Egyptian family spends half its income on food.
This week, we looked at how health care, education, and cell phone bills have eaten into American budgets since the recession. But let's take the global view. What do family budgets look like in Egypt? Or Indonesia? Or China? The Credit Suisse Emerging Consumer Survey asks thousands of respondents across eight developing countries -- the three above plus India, Russia, Brazil, Saudi Arabia, and Turkey -- to say how they spend money on categories like cars, food, and phones. Those eight graphs, with key stats from the report, are below. Some light analysis for the road comes at the bottom.
GDP per capita: $1,382
Key stat from the Credit Suisse report: "70% of Indians say they have no computers in the home. Only 19% of respondents register having access to the internet."
Egypt GDP per capita: $2,892
Key stat: "There is [an] ongoing red flag raised by exposure to food with its near 50% claim on the household income of Egyptian consumers. Ironically, plans to cut government spending on food subsidies to strengthen state finances, could in itself increase inflation and undermine consumer sentiment."
Indonesia GDP per capita: $3,456
Key stat: "The risk that always exists for the Indonesian consumer is the sensitivity of food prices. Food consumes a large proportion of the household budget. Upward pressure on prices would threaten to crowd out other discretionary spending."
China GDP per capita: $4,833
Key stat: "The two categories that stand out are healthcare and education. The only country with comparable momentum in healthcare spending is Saudi Arabia. Only Saudi and India had stronger readings on extra educational spending ... At nearly 30% of monthly income, [China's savings] is the highest in the survey."
Turkey GDP per capita: $11,054
Key stat: "Expenditure in [housing] (at an estimated 24%) is the highest of any country in the survey. This looks to be more out of necessity than desire. The proportion of people registered as renting their property is among the highest in the survey. Turkish economic growth over the past decade, and the ensuing urbanization, has led to high inflation in the housing sector."
Brazil GDP per capita: $12,423
Key stat: "The Brazilian consumer continues to stand out as the most optimistic across our survey. Barely 7% of household income is registered as saved and over a half of respondents suggest they have no extra cash for savings. Given the strength of projected real income growth, this is extraordinary. It is more typical of the countries where the consumer is being seriously squeezed than one where finances seem robust."
Russia GDP per capita: $13,543
Key stat: "Despite the structural support there has been for the Russian economy in recent years from commodity prices, there has not been a notable trickle down to the average consumer. Optimism remains the lowest of the BRICs. The inequality of income suggests that growth opportunities are played mainly at the high-income end in Russia."
Saudi Arabia GDP per capita: $21,685
Key stat: "While inflation has been a negative factor in our emerging economies sur- veyed, including Saudi Arabia, there is a stabilizing effect from government pol- icy. Robust oil revenues (a driver of infla- tion for others) have provided govern- ment spending with the firepower to support public sector incomes and boost spending more generally. We have seen a government pledge to spend USD 130 billion on housing and job creation this year."
Two big ideas for the road: Houses and food. Everybody
needs somewhere to live and something to eat. But you can learn a lot
about a country by looking at housing and food spending. Here's how the
U.S., where middle-class families spend about a third of their income on
housing, compare to the developing economies in this survey.
And here's the story with food.
don't want to push this point too far, because these sort of surveys
have obvious limitations. Tremendous income inequality in developing
countries with hundreds of millions of people makes it impossible to
tell the story of the frothy middle class *in one graph.* But the bigger
picture is clear and uncontroversial. When families earn more income,
they can afford to eat more and buy more clothes, but the real shift is
from those essentials to bigger better houses, education, and health
New presidents often err by either trying to impose their will on Congress or being too hands-off. Trump is on course to commit both errors on his top two legislative priorities.
Mucking up an interaction with Congress is a rite of passage for every new president—usually on health care, and especially for those with limited experience in Washington.
The twin pitfalls for a new president are the same ones the great Tommy Lasorda described in his approach to baseball: “I believe managing is like holding a dove in your hand. If you hold it too tightly you kill it, but if you hold it too loosely, you lose it.” A president can try to push his vision aggressively on Congress, risking backlash from members—let’s call that the Bill Clinton approach. Alternatively, he can try to hang back and let Congress act, risking the chance that without presidential leadership, members will come up with something he doesn’t like, or even worse that they can’t pass. We’ll call that the Barack Obama approach.
The MIT economist Peter Temin argues that economic inequality results in two distinct classes. And only one of them has any power.
A lot of factors have contributed to American inequality: slavery, economic policy, technological change, the power of lobbying, globalization, and so on. In their wake, what’s left?
That’s the question at the heart of a new book, The Vanishing Middle Class: Prejudice and Power in a Dual Economy, by Peter Temin, an economist from MIT. Temin argues that, following decades of growing inequality, America is now left with what is more or less a two-class system: One small, predominantly white upper class that wields a disproportionate share of money, power, and political influence and a much larger, minority-heavy (but still mostly white) lower class that is all too frequently subject to the first group’s whims.
In 1985, Neil Postman observed an America imprisoned by its own need for amusement. He was, it turns out, extremely prescient.
Earlier this month, thousands of protesters gathered at Washington’s National Mall to advocate for an assortment of causes: action against global climate change, federal funding for scientific research, an empirical approach to the world and its mysteries. The protesters at the March for Science, as scientists are wont to do, followed what has become one of the formulas for such an event, holding clever signs, wearing cheeky costumes, and attempting, in general, to carnivalize their anger. “Make the Barrier Reef Great Again,” read one sign at the March. “This is my sine,” read another. “I KNEW TO WEAR THIS,” one woman had written on the poncho she wore that soggy Saturday, “BECAUSE SCIENCE PREDICTED THE RAIN.” Three protesters, sporting sensible footwear and matching Tyrannosaurus rex costumes, waved poster boards bearing messages like “Jurassick of this shit.”
Cases of brain-infecting amoebae underscore the importance of purifying water before you pour it into your sinuses.
Allergy season is upon us once more, and for many allergy sufferers, that means it’s time to pull two crucial items to the front of the medicine cabinet: 24-hour non-drowsy loratadine, and a neti pot—a teapot-like device used to flush the nasal passages with saline in order to clear allergens and soothe sinus pressure. (It can be seen in action in this very popular gif.) The constant mockery of my loved ones doesn’t prevent me from using a neti pot to ease my congestion. It’s too effective to give up for the sake of pride. But I have also used my neti pot with considerable apprehension since 2011.
That year, a 20-year-old man from Louisiana died of encephalitis caused by Naegleria fowleri, an amoeba commonly found in lakes and rivers in the American South—but which rarely causes infection. More unusual still was the fact that the young man hadn’t had been swimming in freshwater lakes or rivers anytime recently. Then, a few months later, a 51-year-old Louisiana woman also died of encephalitis—primary amebic meningoencephalitis (PAM) to be exact, which is the condition caused when Naegleria fowleri infects the brain. Shortly before she passed away, her doctor learned that while she hadn’t had been swimming in freshwater either, she had recently used a neti pot. Researchers later learned that the other victim had also used a neti pot, and subsequent testing found Naegleria fowleri in both patients’ brain tissue as well as the tap water in their homes. Using a neti pot had allowed the amoeba to reach their brains.
It's okay for parents to nurture, protect, and encourage their children, especially when they're very young.
I still remember the first time someone spoke to me about grit. It wasn’t when I lost my dad and saw my mother fall apart.
It wasn’t when my mother died, and I felt like I was falling apart.
It wasn’t when people who I believed would invest in my business didn’t. It wasn’t when the great recession hit our advertisers and my business had to stop publishing a magazine.
It was when I was thinking of pulling my 3-year-old out of a preschool in which she clearly wasn’t thriving. She was anxious, frozen, a shadow of the child she used to be before she started there.
But it was a co-op preschool, meaning I couldn’t just turn around and leave. When you sign up to join a co-op, you also sign up to work various jobs around the school and to commit to being an active part of a larger community. In other words, I had to talk to the other parents at the co-op about my decision. One of them cautioned me: "What about grit?" she said. For a minute, I was taken aback. Was she talking about me or my 3-year-old?
For better or for worse, all roads to avoid global calamity run through Beijing.
President Donald Trump is right: North Korea’s nuclear program is on a dangerous trajectory. But there is no quick fix. Nor is there an imminent threat, and it does not help to create the impression that there is one. A show of force, if carefully calibrated, can be helpful. But rhetorical excess, personal provocations directed at North Korea’s leader Kim Jong Un, and stunts like calling the Senate to a White House briefing don’t help.
Moreover, for all the bellicose posturing from Washington and Pyongyang, the most likely outcome of this latest flare-up of tensions around North Korea is more stalemate, as the Kim regime continues work on its nuclear-weapons program—unless the Trump administration considers some new, non-military, approaches.
“Somewhere at Google there is a database containing 25 million books and nobody is allowed to read them.”
You were going to get one-click access to the full text of nearly every book that’s ever been published. Books still in print you’d have to pay for, but everything else—a collection slated to grow larger than the holdings at the Library of Congress, Harvard, the University of Michigan, at any of the great national libraries of Europe—would have been available for free at terminals that were going to be placed in every local library that wanted one.
At the terminal you were going to be able to search tens of millions of books and read every page of any book you found. You’d be able to highlight passages and make annotations and share them; for the first time, you’d be able to pinpoint an idea somewhere inside the vastness of the printed record, and send somebody straight to it with a link. Books would become as instantly available, searchable, copy-pasteable—as alive in the digital world—as web pages.
Recent border battles have once again redrawn the lines of the metro area.
On the Saturday before Election Day last November, Jason Lary, a former insurance executive, crouched on a rough patch of grass at the center of a busy intersection 20 miles outside of Atlanta in DeKalb County. Lary was holding a hammer, and he tapped carefully on the thin wire base of a campaign sign. “My hand is like Fred Flintstone’s right now because I banged my hand in the night,” he said, noting his latest sign-related injury. This hazard, though, was worthwhile: “If you don’t start [the sign] with your hand, it will bend. It takes longer—guys are 10 times faster than I am. But my sign’s still gonna be up.”
This was a non-trivial advantage for Lary, who for the past month had begun most mornings with a kind of ground-game whack-a-mole. He would put up signs under the cover of night, only to have his opponents dislodge them by hand or, when that failed, run over them with their cars. Nevertheless, Lary was feeling good. “My opposition? Worn down,” he told me. “They don’t even have any more signs. And I kept a stash, knowing this time was coming. This is not my first picnic with nonsense.”
On Wednesday, the administration launched a new office to “assist victims of crimes committed by criminal aliens.” Some rang in with reports of UFOs.
The term “alien” is used in legal contexts to denote those present in the United States who aren’t citizens. But some callers are using a new hotline launched on Wednesday for victims of crimes committed by aliens to report that they’ve been victimized by extraterrestrials.
On Wednesday, the Trump administration launched the Victims of Immigration Crime Engagement Office. The office, which was originally announced in a January executive order on immigration, intends to “assist victims of crimes committed by criminal aliens,” according to the Department of Homeland Security.
“All crime is terrible, but these victims are unique—and too often ignored,” said DHS Secretary John Kelly in announcing the office. “They are casualties of crimes that should never have taken place—because the people who victimized them often times should not have been in the county in the first place.”
Will you pay more for those shoes before 7 p.m.? Would the price tag be different if you lived in the suburbs? Standard prices and simple discounts are giving way to far more exotic strategies, designed to extract every last dollar from the consumer.
As Christmas approached in 2015, the price of pumpkin-pie spice went wild. It didn’t soar, as an economics textbook might suggest. Nor did it crash. It just started vibrating between two quantum states. Amazon’s price for a one-ounce jar was either $4.49 or $8.99, depending on when you looked. Nearly a year later, as Thanksgiving 2016 approached, the price again began whipsawing between two different points, this time $3.36 and $4.69.
We live in the age of the variable airfare, the surge-priced ride, the pay-what-you-want Radiohead album, and other novel price developments. But what was this? Some weird computer glitch? More like a deliberate glitch, it seems. “It’s most likely a strategy to get more data and test the right price,” Guru Hariharan explained, after I had sketched the pattern on a whiteboard.