Linkage

At first blush, these tycoons might seem to be “prepping” for a familiar 20th-century style apocalypse, as depicted in countless disaster movies. But they’re not. 

Yes, their vast estates do include bunkers and other technologies traditionally associated with prepping. For example, the mansions of Ko’olau Ranch are connected through underground tunnels that feed into a large shelter.

However, Zuckerberg, Winfrey, Ellison and others are actually embarking on far more ambitious projects. They are seeking to create entirely self-sustaining ecosystems, in which land, agriculture, the built environment and labour are all controlled and managed by a single person, who has more in common with a mediaeval-era feudal lord than a 21st-century capitalist.

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What we see with Zuckerberg’s project isn’t an overt conflict between billionaire and community. In Kauai, members of a community have consented, or conceded, to grant a plutocrat the stewardship of their land, in the name of preservation. This is a business model that leads directly (back) to feudalism.

This insight is lost in the media’s obsession with the “craziest features” of Zuckerberg’s Hawaiian folly. Rather, what is emerging among billionaires is a belief that survival depends not (only) on hiding out in a reinforced concrete hole in the ground, but (also) on developing, and controlling, an ecosystem of one’s own.

The Israeli Ministry of Intelligence is recommending the forcible and permanent transfer of the Gaza Strip’s 2.2 million Palestinian residents to Egypt’s Sinai Peninsula, according to an official document revealed in full for the first time by +972’s partner site Local Call yesterday.

The 10-page document, dated Oct. 13, 2023, bears the logo of the Intelligence Ministry — a small governmental body that produces policy research and shares its proposals with intelligence agencies, the army, and other ministries. It assesses three options regarding the future of the Palestinians in the Gaza Strip in the framework of the current war, and recommends a full population transfer as its preferred course of action. It also calls on Israel to enlist the international community in support of this endeavor.

Economics has achieved much; there are large bodies of often nonobvious theoretical understandings and of careful and sometimes compelling empirical evidence. The profession knows and understands many things. Yet today we are in some disarray. We did not collectively predict the financial crisis and, worse still, we may have contributed to it through an overenthusiastic belief in the efficacy of markets, especially financial markets whose structure and implications we understood less well than we thought. Recent macroeconomic events, admittedly unusual, have seen quarrelling experts whose main point of agreement is the incorrectness of others. Economics Nobel Prize winners have been known to denounce each other’s work at the ceremonies in Stockholm, much to the consternation of those laureates in the sciences who believe that prizes are given for getting things right.

Like many others, I have recently found myself changing my mind, a discomfiting process for someone who has been a practicing economist for more than half a century. I will come to some of the substantive topics, but I start with some general failings. I do not include the corruption allegations that have become common in some debates. Even so, economists, who have prospered mightily over the past half century, might fairly be accused of having a vested interest in capitalism as it currently operates. I should also say that I am writing about a (perhaps nebulous) mainstream, and that there are many nonmainstream economists.

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."