Britain's GDP fell again in the fourth quarter of 2012, raising the specter of a triple-dip recession
Britain's economy is a riddle wrapped in a mystery inside an enigma, but this much is clear: it's a disaster. After its Olympics-fueled growth, such as it was, lifted it out of recession in the third quarter of 2012, Britain might be headed back after its economy fell 0.3 percent at the end of the year -- the fourth time in five quarters its GDP has contracted. Britain's now verging on a triple-dip recession, which is just another way of saying a depression.
But it's not so simple.
Britain is stuck in its worst GDP slump in a century, but not so for jobs. As you can see in the chart below from Jonathan Portes, the director of the National Institute of Economic and Social Research, Britain's stagnating economy has left it in worse shape at this point of its recovery than it was during the Great Depression. GDP is still more than 3 percent below its 2008 peak, and it hasn't done anything to catchup in years. At this pace, there will be no recovery in our time, or any other time.
It's no accident this era of zero growth has coincided with an era of austerity. Despite entering office with borrowing costs at 50-year lows, the Cameron coalition decided the government deficit, and not the growth deficit, was the chief threat to future prosperity. It raised taxes and cut the growth of spending, but did so with little regard for what constituted smart cuts and what did not. As Portes points out, public net investment -- things like roads and bridges and schools, and everything else the economy needs to grow -- has fallen by half the past three years, and is set to fall even further the next two. It's the economic equivalent of shooting yourself in both feet, just in case shooting yourself in one doesn't completely cripple you. Austerity has driven down Britain's borrowing costs even further, but that's been due to investors losing faith in its recovery, rather than having more faith in its public finances. Indeed, weak growth has kept deficits from coming down all that much, despite the higher taxes and slower spending. In other words, it's economic pain for no fiscal gain.
But the story of Britain's flatlining growth isn't just one of ignoring Keynes' maxim that the boom, not the slump, is the time for austerity. It's more like an economic whodunit. The euro crisis -- yes, we're rounding up the usual suspects -- has kept Britain from exporting its way out of trouble, as its largest trading partner, the euro zone, has been too busy flirting with breakup and recession to buy as much stuff as it otherwise would. It hasn't helped that some of Britain's big productivity industries like oil and finance have gone into what might be the start of long-term declines; the North Sea oil and gas fields and the City of London have both shed output and jobs. But this downtrend in Britain's top industries doesn't nearly explain the real puzzle of its economy -- the collapse in productivity.
In other words, the disconnect between GDP and jobs. While the economy is, at best, stuck in neutral, Britain has been adding jobs at a better-than-decent clip the past year or so. Unemployment recently reached an 18-month low, and, in absolute terms, more people have a job today than in 2008 (though underemployment is a problem). This combination of zero GDP growth with positive job growth means Britain is working more to do less. Richard Davies of The Economist calculates Britain is 12 percent less productive today than it was at similar points in other recoveries -- and the decline of the North Sea fields and the City probably only explain 1-2 percentage points of this gap. That leaves a pair of, hardly mutually exclusive, possibilities: either Britain has some serious GDP mismeasurement problems or some serious economic problems, full stop. The former is usually the case any time there's an apparent disparity between GDP and jobs data, but the disparity is so large and so persistent in this case that it seems something else is going on. Davies hypothesizes zombie firms are starving new, more productive firms, for credit, which may well be true, but, again, doesn't seem to explain the full scope of the disaster.
The good news, if there is any, is Britain just poached Mark Carney, one of the top central bankers in the world, to run the Bank of England, and he seems determined to do more than his predecessor to get the country out of its economic rut. And that's it. There is no other good news. Thank goodness for stiff upper lips.
On Saturday, the president slipped away from the doubters in Washington to address a Florida crowd filled with loyal supporters.
MELBOURNE, Fla.—After four miserable weeks of being locked up in presidential prison—starved of affection, suffocated by bureaucracy, tormented by the press—Donald Trump made a break for it Saturday.
Touching down just before sunset here in the heart of Trump Country, the president was greeted as he emerged from Air Force One by an adoring crowd of 9,000 super-fans, many of whom had stood in line for hours to see him speak. Trump made no effort at masking his gratitude. “I’m here because I want to be among my friends,” he told them, adding, “I also want to speak to you without the filter of the fake news.”’
The rally was widely trumpeted in the press as a return to the campaign trail, and it’s easy to see why. The event had all the trappings of Trump-style electioneering—he deployed the same slogans, recycled the same stump-speech rhetoric, and walked out on stage to the same soundtrack. What’s more, the White House made clear earlier this week that the rally was being funded not by the federal government but by his campaign, making this perhaps the earliest launch to a reelection bid in history.
Lip service to the crucial function of the Fourth Estate is not enough to sustain it.
It’s not that Mark Zuckerberg set out to dismantle the news business when he founded Facebook 13 years ago. Yet news organizations are perhaps the biggest casualty of the world Zuckerberg built.
There’s reason to believe things are going to get worse.
A sprawling new manifesto by Zuckerberg, published to Facebook on Thursday, should set off new alarm bells for journalists, and heighten news organizations’ sense of urgency about how they—and their industry—can survive in a Facebook-dominated world.
Facebook’s existing threat to journalism is well established. It is, at its core, about the flow of the advertising dollars that news organizations once counted on. In this way, Facebook’s role is a continuation of what began in 1995, when Craigslist was founded. Its founder, Craig Newmark, didn’t actively aim to decimate newspapers, but Craigslist still eviscerated a crucial revenue stream for print when people stopped buying newspaper classifieds ads.
When my wife was struck by mysterious, debilitating symptoms, our trip to the ER revealed the sexism inherent in emergency treatment.
Early on a Wednesday morning, I heard an anguished cry—then silence.
I rushed into the bedroom and watched my wife, Rachel, stumble from the bathroom, doubled over, hugging herself in pain.
“Something’s wrong,” she gasped.
This scared me. Rachel’s not the type to sound the alarm over every pinch or twinge. She cut her finger badly once, when we lived in Iowa City, and joked all the way to Mercy Hospital as the rag wrapped around the wound reddened with her blood. Once, hobbled by a training injury in the days before a marathon, she limped across the finish line anyway.
So when I saw Rachel collapse on our bed, her hands grasping and ungrasping like an infant’s, I called the ambulance. I gave the dispatcher our address, then helped my wife to the bathroom to vomit.
The preconditions are present in the U.S. today. Here’s the playbook Donald Trump could use to set the country down a path toward illiberalism.
It’s 2021, and President Donald Trump will shortly be sworn in for his second term. The 45th president has visibly aged over the past four years. He rests heavily on his daughter Ivanka’s arm during his infrequent public appearances.
Fortunately for him, he did not need to campaign hard for reelection. His has been a popular presidency: Big tax cuts, big spending, and big deficits have worked their familiar expansive magic. Wages have grown strongly in the Trump years, especially for men without a college degree, even if rising inflation is beginning to bite into the gains. The president’s supporters credit his restrictive immigration policies and his TrumpWorks infrastructure program.
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Radical longevity may change the way we live—and not necessarily for the better.
“So, you don’t want to die?” I asked Zoltan Istvan, then the Transhumanist candidate for president, as we sat in the lobby of the University of Baltimore one day last fall.
“No,” he said, assuredly. “Never.”
Istvan, an atheist who physically resembles the pure-hearted hero of a Soviet children’s book, explained that his life is awesome. In the future, it will grow awesomer still, and he wants to be the one to decide when it ends. Defying aging was the point of his presidential campaign, the slogan of which could have been “Make Death Optional for Once.” To (literally) drive the point home, he circled the nation in the “Immortality Bus,” a brown bus spray-painted to look like a coffin.
He knew he’d lose, of course, but he wanted his candidacy to promote the cause of transhumanism—the idea that technology will allow humans to break free of their physical and mental limitations. His platform included, in part, declaring aging a disease. He implanted a chip in his hand so he could wave himself through his front door, and he wants to get his kids chipped, too. He’d be surprised, he told me, if soon “we don’t start merging our children with machines.” He’d like to replace his limbs with bionics so he can throw perfectly in water polo. Most of all, he wants to stick around for a couple centuries to see it all happen, perhaps joining a band or becoming a professional surfer, a long white beard trailing in his wake.
The Scandinavian country is an education superpower because it values equality more than excellence.
The Scandinavian country is an education superpower because it values equality more than excellence.
Everyone agrees the United States needs to improve its education system
dramatically, but how? One of the hottest trends in education reform lately
is looking at the stunning success of the West's reigning education
Trouble is, when it comes to the lessons that Finnish schools have to offer,
most of the discussion seems to be missing the point.
The small Nordic country of Finland used to be known -- if it was known for
anything at all -- as the home of Nokia, the mobile phone giant. But lately
Finland has been attracting attention on global surveys of quality of
life -- Newsweek ranked it number one last year -- and Finland's national
education system has been receiving particular praise, because in recent
years Finnish students have been turning in some of the highest test scores
in the world.
Viewers who watched it themselves saw a rambling, misleading performance. But those who relied on conservative cable newscasts or talk radio hosts got a very different impression.
On Thursday, Donald Trump gave a press conference that was rife with untruths and evasions. Let’s begin with specific examples of demonstrable falsehoods, so that readers who are favorable to the president won’t have to trust my characterization:
Bragging about all the electoral votes he won, Trump said, “We got 306 because people came out and voted like they've never seen before so that's the way it goes. I guess it was the biggest electoral college win since Ronald Reagan.” That is false. As CBS News notes, “In 2012, President Obama defeated his GOP rival, Mitt Romney, with 332 electoral votes. In 2008, Obama won the election against Sen. John McCain, R-Arizona, with 365 electoral votes. In 1996, President Clinton defeated Republican Bob Dole with 379 votes. In 1992, Clinton won against President George H.W. Bush, the incumbent, with 370 electoral votes. In 1988, Bush won the presidency with 426 votes.” And Trump even misstated how many votes he won. It was 304.
“Let me tell you about the travel ban,” Trump said, referring to the executive order that his press secretary, Sean Spicer, heatedly said wasn’t a travel ban. “We had a very smooth rollout of the travel ban. But we had a bad court. Got a bad decision.” Even apart from multiple unfavorable court rulings, the roll-out was anything but smooth. There was massive confusion about whether the surprise policy would affect permanent U.S. residents with green cards. Many were detained or turned away as protesters flocked to airports. Later the administration reversed itself. Ben Wittes went deep in the weeds on the rest of the incompetent, dysfunctional implementation of the order. Trump later said, “the only problem that we had is a bad court. We had a court that gave us what I consider to be, with great respect, a very bad decision. Very bad for the safety and security of our country. The rollout was perfect.”
Trump was asked, “Can you say whether you are aware that anyone who advised your campaign had contacts with Russia during the course of the election?” He said aside from Mike Flynn, the answer is no. In fact, he went even farther. “Russia is a ruse. I have nothing to do with Russia. Haven't made a phone call to Russia in years. Don't speak to people from Russia. Not that I wouldn't. I just have nobody to speak to. I spoke to Putin twice. He called me on the election. I told you this. And he called me on the inauguration, a few days ago. We had a very good talk, especially the second one, lasted for a pretty long period of time … I have nothing to do with Russia. To the best of my knowledge no person that I deal with does. Now, Manafort has totally denied it. He denied it. Now people knew that he was a consultant over in that part of the world for a while, but not for Russia. I think he represented Ukraine or people having to do with Ukraine, or people that—whoever.”
In doing so, Trump effectively denied the veracity of a recent New York Times report asserting, “phone records and intercepted calls show that members of Donald J. Trump’s 2016 presidential campaign and other Trump associates had repeated contacts with senior Russian intelligence officials in the year before the election, according to four current and former American officials.”
I don’t know if Trump or his team are guilty of any wrongdoing with regard to Russia. But Trump’s statement that he has “nothing to do with Russia” elides the fact that Trump made millions partnering with a Russian billionaire, Aras Agalarov, to host the Miss Universe pageant in Moscow in 2013. And in April 2016, when his campaign hosted an invitation-only campaign speech in Washington, D.C., that focused on foreign policy, Russian ambassador Sergey Kislyak attended Trump’s speech and sat in the front row.
As for people that he deals with, Rex Tillerson, his new secretary of state, was longtime director of a U.S.-Russia oil firm, and was awarded the Russian Order of Friendship by Vladamir Putin. “Carter Page, an early foreign policy adviser to Donald J. Trump who was scrutinized by the F.B.I. on suspicion of private communications with senior Russian officials over the summer, was back in Moscow on Thursday,” the New York Timesreported in December. Page, Flynn, and Manafort all resigned over murky Russia ties.
Perhaps this is all a series of innocent coincidences. But Trump misleads Americans into thinking there is no valid reason for suspicion when he falsely claims outright that neither he nor any person he deals with has ties to Russia.
Moscow grapples with a strange week in Washington.
Well, that didn’t last long. As President Donald Trump wrapped up his fourth week in office, the romance between him and Russian president Vladimir Putin seemed to have cooled suddenly. The week began with the resignation of National Security Adviser Michael Flynn amid revelations that he lied about his phone calls to the Russian ambassador. Then came reports that members of the Trump team had been in repeated contact with Russian intelligence agents. It ended with Vice Admiral Bob Harward declining to replace Flynn, and Trump giving a press conference in which he said his administration is “running like a fine-tuned machine;” toyed aloud with the idea of firing on a Russian spy ship in international waters off the East Coast; and dismissed allegations of collusion between his aides and the Russian government by saying, “Russia is fake news.” It was a performance that raised eyebrows in Moscow, with one Kremlin-friendly paper saying Friday that “you need to be drunk to understand the U.S. president’s true position.”
During the late 19th century, blacks and whites in the South lived closer together than they do today.
CHARLOTTE, N.C.—Growing up here in the 1940s and 1950s, Sevone Rhynes experienced segregation every day. He couldn’t visit the public library near his house, but instead had to travel to the “colored” library in the historically black area of Brooklyn, a neighborhood that used to be in the center of Charlotte. He attended a school for black children, where he received second-hand books, and where the school day was half the length of that of white schools, because the black school had too many children and not enough funds. Sixty years later, he says, Charlotte is still a segregated city. “People who are white want as little to do with black people as they can get away with,” he told me.
This is, unfortunately, not a surprising account of North Carolina, or of the South more generally. The South of the 1950s was the land of fire hoses aimed at black people who dared protest Jim Crow laws. Today, schools in the South are almost as segregated as they were when Sevone Rhymes was a child. Southern cities including Charlotte are facing racial tensions over the shootings of black men by white policemen, which, in Charlotte’s case, led to massive protests and riots.
Tweet, report, outrage, denial, confirmation, qualification. What to make of the bewildering reports from the early days of the Trump administration.
Friday morning, the Associated Press dropped a bombshell report: “Trump administration considers mobilizing as many as 100,000 National Guard troops to round up unauthorized immigrants,” the new agency’s Twitter account announced.
The hubbub that followed, as the White House denied the report, is a case study in the strange dance between the press and the Trump administration, and the complicated environment of information asymmetry, and misinformation, that characterizes the current moment in American politics. And it shows how the Trump administration deflects genuine reporting by caricaturing it, sometimes clumsily, as “fake news.”
The AP tweet came at 10:12 a.m. Eastern time, with the full story coming a few minutes later: