Linkage

The dominant view of inflation holds that it is macroeconomic in origin and must always be tackled with macroeconomic tightening. In contrast, we argue that the US COVID-19 inflation is predominantly a sellers’ inflation that derives from microeconomic origins, namely the ability of firms with market power to hike prices. Such firms are price makers, but they only engage in price hikes if they expect their competitors to do the same. This requires an implicit agreement which can be coordinated by sector-wide cost shocks and supply bottlenecks. We review the long-standing literature on price-setting in concentrated markets and survey earnings calls and compile firm-level data to derive a three-stage heuristic of the inflationary process: (1) Rising prices in systemically significant upstream sectors due to commodity market dynamics or bottlenecks create windfall profits and provide an impulse for further price hikes. (2) To protect profit margins from rising costs, downstream sectors propagate, or in cases of temporary monopolies due to bottlenecks, amplify price pressures. (3) Labor responds by trying to fend off real wage declines in the conflict stage. We argue that such sellers’ inflation generates a general price rise which may be transitory, but can also lead to self-sustaining inflationary spirals under certain conditions. Policy should aim to contain price hikes at the impulse stage to prevent inflation from the onset.

Paul Krugman apparently called this article "truly stupid". I can think of no higher praise.

President Truman was aware of the risks of ending price controls. On 30 October 1945, he warned that after the first world war, the US had “simply pulled off the few controls that had been established, and let nature take its course”. And he urged, “The result should stand as a lesson to all of us. A dizzy upward spiral of wages and the cost of living ended in the crash of 1920 – a crash that spread bankruptcy and foreclosure and unemployment throughout the Nation.” Nevertheless, price controls were pulled in 1946, again triggering inflation and a boom-bust cycle.

Today, there is once more a choice between tolerating the ongoing explosion of profits that drives up prices or tailored controls on carefully selected prices. Price controls would buy time to deal with bottlenecks that will continue as long as the pandemic prevails. Strategic price controls could also contribute to the monetary stability needed to mobilize public investments towards economic resilience, climate change mitigation and carbon-neutrality. The cost of waiting for inflation to go away is high.

Phew. Comprehensive.

Attempts to delegitimize transgender lives and experiences often rely on overly simplistic claims about “biological sex.” Drawing on my previous writings and background as a biologist, here I challenge these common presumptions and instead present a more holistic understanding of sex, gender, and trans people.

In response to rent increases, the Texas capital experimented with the uncommon strategy of actually building enough homes for people to live in. This year, Austin is expected to add more apartment units as a share of its existing inventory than any other city in the country. Again as a share of existing inventory, Austin is adding homes more than twice as fast as the national average and nearly nine times faster than San Francisco, Los Angeles, and San Diego. (You read that right: nine times faster.)

The results are spectacular for renters and buyers. The surge in housing supply, alongside declining inbound domestic migration, has led to falling rents and home prices across the city. Austin rents have come down 7 percent in the past year.

One could celebrate this report as a win for movers. Or, if you’re The Wall Street Journal, you could treat the news as a seriously frightening development.

“Once America’s Hottest Housing Market, Austin Is Running in Reverse,” announced the headline of the top story on the WSJ website on Monday. The article illustrated “Austin’s recent downswing” and its “glut of luxury apartment buildings” with photographs of abandoned downtown plazas, as if the fastest-growing city of the 2010s had been suddenly hollowed out by a plague and left to zombies and tumbleweeds.

[…]

If homeownership is best understood as an investment, like equities, we should root for prices to go up. If housing is an essential good, like food and clothing, we should cheer when prices stay flat—or even when they fall. Instead, many Americans seem to think of a home as existing in a quantum superposition between a present-day necessity and a future asset.

This magical thinking isn’t just a phenomenon of real-estate reporting. It is deeply rooted even in the highest echelons of policy making.

The poll, surveying registered voters in South Carolina, posed the question: "If parents are already involved in the decision-making process, do you believe the government should or should not intervene in LGBTQ gender-affirming health care decisions concerning individuals under the age of 18?" It found that 71% of the state's registered voters believe the government should not intervene in such gender-affirming health care decisions. Opposition to government intervention was substantial across all political affiliations: 67% of Republicans, 70% of independents, and 80% of Democrats were opposed.

A few years back, a writer in a developing country started doing contract work for a company called AdVon Commerce, getting a few pennies per word to write online product reviews.

But the writer — who like other AdVon sources interviewed for this story spoke on condition of anonymity — recalls that the gig's responsibilities soon shifted. Instead of writing, they were now tasked with polishing drafts generated using an AI system the company was developing, internally dubbed MEL.

"They started using AI for content generation," the former AdVon worker told us, "and paid even less than what they were paying before."

The former writer was asked to leave detailed notes on MEL's work — feedback they believe was used to fine-tune the AI which would eventually replace their role entirely.

The situation continued until MEL "got trained enough to write on its own," they said. "Soon after, we were released from our positions as writers."

The UN agency's annual State of the Global Climate report confirmed it wasn't just the hottest year on record, ocean heat reached its highest level since records began, global mean sea level also reached a record high and Antarctic sea ice reached a record low.

The impacts of extreme weather and climate events up-ended life for millions of people across the world and inflicted billions of dollars in economic losses, according to the WMO.

"Extreme climate conditions exacerbated humanitarian crises, with millions experiencing acute food insecurity and hundreds of thousands displaced from their homes," WMO Secretary General Professor Celeste Saulo said.

"Heatwaves, floods, droughts, wildfires and intense tropical cyclones wreaked havoc on every continent and caused huge socio-economic losses." 

A good explainer:

In 2017, the body responsible for standardizing web browser technologies, W3C, introduced Encrypted Media Extensions (EME)—thus bringing with it the end of competitive indie web browsers.

No longer is it possible to build your own web browser capable of consuming some of the most popular content on the web. Websites like Netflix, Hulu, HBO, and others require copyright content protection which is only accessible through browser vendors who have license agreements with large corporations.

[…]

These roadblocks were primarily introduced to appease the media industry.

[…]

Since the introduction of EME to web standards, the ability for new browsers to compete has become restricted by gatekeepers, which goes against the promises of the platform.

User agents are pieces of software that represent the user, a natural person, in their digital interactions. Examples include Web browsers, operating systems, single-sign-on systems, or voice assistants. User agents hold, due to the role they play in the digital ecosystem, a strategic position. They can be arbiters of structural power. The overwhelming majority of the data that is collected about people, particularly that which is collected passively, is collected through user agents, at times with their explicit support or at least by their leave. I propose to lean on this strategic function that user agents hold to develop a regime of fiduciary duties for them that is relatively limited in the number of actors that it affects yet has the means to significantly increase the power of users in their relationships with online platforms. The limited, tractable scope of software user agency as a fiduciary relationship provides effective structural leverage in righting the balance of power between individuals and tech companies. 

The Internet, itself in constant innovation since its inception, has historically supported unprecedented innovation across the globe, driving considerable growth in technology and commerce.This paper reviews a set of properties set out by Internet experts in 2012, which aimed to capture the unvarying properties that defined the Internet (“the Invariants”).

[…] 

An early realization was that that the Invariants not only capture an ideal form of the Internet, they describe a generative platform — a platform capable of continuous growth and fostering the expansive development of new things upon itself.

[…]

Notably, several technologies being developed and deployed in today’s Internet don’t conform to those Invariants, and thus are not laying the foundation for similar innovations in the future. With the Invariants in hand, however, we have a tool to evaluate the state of the Internet and any proposed changes that would impact it, and support discussion between and among technologists and policy makers to help ensure that future choices foster a better Internet, aligned with the ideal expressed in the Internet Invariants.

This is “climate change” of the Internet ecosystem: absent concrete action to address the departure of the application infrastructure of the Internet from the ideal outlined in the Invariants, the experience of the Internet going forward will not feature such a rich diversity of solutions to the needs of the world’s population.