Category: Economics

Kid Paid $100,000 to Skip College and Mine Asteroids

(p. 18) As I sat down for lunch at a restaurant in Los Angeles, I placed a copy of “Valley of the Gods,” by Alexandra Wolfe, on the table, and a waitress walking by stopped to peer at the cover. . . .
“It’s about Silicon Valley,” I began. “It follows this young kid, John Burnham, who gets paid $100,000 by this weird billionaire guy, Peter Thiel, whom you’ve probably heard of; he’s a big Trump supporter and spoke at the Republican National Convention?” — a blank stare from the waitress. “Anyway, Thiel pays him (and a bunch of other kids) to forgo college so Burnham can mine asteroids, but he doesn’t actually end up mining the asteroids and. . . .”
. . .
The book begins with the protagonist, Burnham (or antagonist, depending whose side you’re on), who isn’t old enough to drink yet but is debating dropping out of college to follow the Pied Piper of libertarian and contrarian thinking, Peter Thiel, to Silicon Valley. As Wolfe chronicles, Thiel, who has a degree from Stanford University and largely credits where he is today (a billionaire) to his time at that school, started the Thiel Fellowship, in 2011, which awards $100,000 to 20 people under 20 years old to say no to M.I.T., Stanford or, in Burnham’s case, the University of Massachusetts, to pursue an Ayn Randian dream of disrupting archetypal norms.
It won’t be giving away the ending by pointing out that it doesn’t end well for Burnham.

For the full review, see:
NICK BILTON. “Denting the Universe.” The New York Times Book Review (Sunday, FEB. 19, 2017): 18.
(Note: ellipsis at end of second paragraph, in original; other two, added.)
(Note: the online version of the review has the date FEB. 14, 2017, and has the title “Pet Projects of the New Billionaires.”)

The book under review, is:
Wolfe, Alexandria. Valley of the Gods: A Silicon Valley Story. New York: Simon & Schuster, 2017.

Congestion Pricing Rises Again, as Crises Loom

(p. A18) For decades, urban planners, economists, city officials and business leaders have revived again and again some version of a toll system both to manage the city’s worsening traffic and provide more revenue for public transit. Over and over it was batted down, only to be resurrected, most recently in August when Governor Andrew M. Cuomo declared that “congestion pricing is an idea whose time has come.”
Now a state task force, called Fix NYC, has been assembled with the goal of developing another congestion pricing plan. It has been nine years since the last major effort by Mayor Michael R. Bloomberg died in Albany after state legislative leaders refused to bring it to a vote. Mr. Cuomo, after once expressing doubt about congestion pricing’s chances, is expected to unveil a plan early next year and make it a centerpiece of his legislative agenda.
This time congestion pricing is back at a moment of crisis — above ground, streets are becoming increasingly snarled in large part because of the boom in ride-hailing apps, while below ground the problem is even worse as the city’s aging subway system is riddled with delays and in dire need of money. The state-run Metropolitan Transportation Authority, which operates the subway, faces a litany of problems, including antiquated signals and overcrowded cars, that have led to frequent breakdowns — much of it documented by smartphone-toting commuters for the world to see.

For the full story, see:
WINNIE HU. “A Solution to Gridlock, Years in the Making.” The New York Times (Weds., NOV. 29, 2017): A18.
(Note: the online version of the story has the date NOV. 28, 2017, and has the title “New York’s Tilt Toward Congestion Pricing Was Years in the Making.”)

Hundreds of Thousands of Californians Moving to Texas, Arizona and Nevada

(p. A18) For more than three decades, California has seen a net outflow of residents to other states, as less expensive southern cities like Phoenix, Houston and Raleigh supplant those of the Golden State as beacons of opportunity.
. . .
. . . , for many Californians, the question is always sitting there: Is this worth it? Natural disasters are a moment to take stock and rethink the dream. But in the end, the calculation almost always comes down to cost.
. . .
California was once a migration magnet, but since 2010 the state has lost more than two million residents 25 and older, including 220,000 who moved to Texas, according to census data. Arizona and Nevada have each welcomed about 180,000 California expatriates since the start of the decade.

For the full story, see:
CONOR DOUGHERTY. “Californians Brave Fires, but Flee Cost of Living.” The New York Times (Weds., DEC. 13, 2017): A1 & A18.
(Note: ellipses added.)
(Note: the online version of the story has the date DEC. 12, 2017, and has the title “Quakes and Fires? It’s the Cost of Living That Californians Can’t Stomach.”)

Robots May Be a Threat After They Learn How to Open a Door

(p. A1) Robots may enslave us all someday. In the meantime, if one of them goes berserk, here’s a useful tactic: Shut the door behind you.
One after another, robots in a government-sponsored contest were stumped by an unlocked door that blocked their path at an outdoor obstacle course. One bipedal machine managed to wrap a claw around the door handle and open it but was flummoxed by a breeze that kept blowing the door shut before it could pass through.
Robots excel at many tasks, as long as they don’t involve too much hand-eye coordination or common sense. Like some gifted children, they can perform impressive feats of mental arithmetic but are profoundly klutzy on the playground.
The machines stumble over tasks requiring even toddler-level balance, like kicking a ball, getting out of a car or (p. A9) climbing stairs. Grasping objects of varying size and weight is also perplexing.

For the full story, see:
Daniela Hernandez. “If the Robot Apocalypse Comes, Try Closing the Door.” The Wall Street Journal (Sat., Nov. 11, 2017): A1 & A9.
(Note: ellipses, and bracketed date, added.)
(Note: the online version of the story has the date Nov. 10, 2017, and has the title “How to Survive a Robot Apocalypse: Just Close the Door.”)

Union Blocks Firing of Teachers Who Do Not Teach

(p. A1) Francis Blake has not held a permanent position in a New York City public school in at least five years. At his last job, in a Bronx elementary school, records show he was disciplined for incompetence, insubordination and neglect of duties — he had been caught sleeping in a classroom when he was supposed to be helping with dismissal.
Felicia Alterescu, a special-education teacher, has been without a permanent post since 2010, despite high demand for special education teachers. According to records, in addition to getting a string of unsatisfactory ratings, she was disciplined for calling in sick when she actually went to a family reunion. She also did not tell the Education Department that she had been arrested on harassment charges.
This month, Mr. Blake, Ms. Alterescu and hundreds of other teachers who are part of a pool known as the Absent Teacher Reserve could be permanently back in classrooms, as the city’s Education Department places them in jobs at city schools.
The reserve is essentially a parking lot for staff members who have lost their positions, some because of school closings and budget cuts, others because of disciplinary problems, but cannot be fired. It grew significantly as a result of a 2005 deal between the Bloomberg administration, which wanted to give principals control over hiring, and the teachers’ un-(p. A17)ion. Since then, the union has fiercely protected the jobs of teachers in the reserve, resisting attempts to put a time limit on how long a teacher can remain there.

For the full story, see:
KATE TAYLOR. “Caught Sleeping or Worse, Idled Teachers Head Back to Class.” The New York Times (Sat., OCT. 23, 2017): A1 & A17.
(Note: the online version of the story has the date OCT. 22, 2017, and has the title “Caught Sleeping or Worse, Troubled Teachers Will Return to New York Classrooms.”)

High Demand for STEM Workers Is Mainly High for Workers in Info Tech

(p. 10) A working grasp of the principles of science and math should be essential knowledge for all Americans, said Michael S. Teitelbaum, an expert on science education and policy. But he believes that STEM advocates, often executives and lobbyists for technology companies, do a disservice when they raise the alarm that America is facing a worrying shortfall of STEM workers, based on shortages in a relative handful of fast-growing fields like data analytics, artificial intelligence, cloud computing and computer security.
“When it gets generalized to all of STEM, it’s misleading,” said Mr. Teitelbaum, a senior research associate in the Labor and Worklife Program at Harvard Law School. “We’re misleading a lot of young people.”
Unemployment rates for STEM majors may be low, but not all of those with undergraduate degrees end up in their field of study — only 13 percent in life sciences and 17 percent in physical sciences, according to a 2013 National Science Foundation survey. Computer science is the only STEM field where more than half of graduates are employed in their field.

For the full story, see:
STEVE LOHR. “Where the STEM Jobs Are/Aren’t.” The New York Times, Education Life Section (Sun., NOV. 5, 2017): 10.
(Note: the online version of the story has the date NOV. 1, 2017, and has the title “Where the STEM Jobs Are (and Where They Aren’t).”)

“Please Do Not Forget the Poor”

(p. A1) Last week, Peter Mattaliano, 66, an acting coach and screenwriter, put up Christmas decorations in his Hell’s Kitchen apartment and laid out presents for the children: Mary and Alfred.
These are not Mr. Mattaliano’s children, and they are no longer living. But a century ago they lived in what is now Mr. Mattaliano’s home.
He has honored Mary and Alfred every December for the past 15 years, ever since he learned of their existence when he renovated his fireplace. It had been sealed with brick for more than 60 years.
“My brother does construction, and I had him open up the fireplace,” he said. “We were joking that we might find Al Capone’s money. Then my brother yelled to me and said, ‘You’re not going to believe this.’ ”
In the rubble and dust, Mr. Mattaliano’s brother found a delicate piece of paper with faint children’s scrawl bearing a request to Santa from a century earlier.
“I want a drum and a hook and ladder,” read the letter, adding that the fire truck should be one with an “extentionisting” ladder. (p. A22) It was dated 1905 and signed “Alfred McGann,” who included the building’s address.
There was another item in the rubble: a small envelope addressed to Santa in “Raindeerland.” Inside was a second letter, this one dated 1907 and written by Alfred’s older sister, Mary, who had drawn a reindeer stamp as postage.
“The letters were written in this room, and for 100 years, they were just sitting there, waiting,” said Mr. Mattaliano.
He learned through online genealogical research that the siblings were the children of Patrick and Esther McGann, Irish immigrants who married in 1896. Mary was born in 1897 and Alfred in 1900.
. . .
Patrick McGann died in 1904, so by the time the children wrote the letters left in the chimney, they were being raised by Ms. McGann, a dressmaker.
Mary’s letter is as poignant as Alfred’s is endearing.
“Dear Santa Claus: I am very glad that you are coming around tonight,” it reads, the paper partly charred. “My little brother would like you to bring him a wagon which I know you cannot afford. I will ask you to bring him whatever you think best. Please bring me something nice what you think best.”
She signed it Mary McGann and added, “P.S. Please do not forget the poor.”
Mr. Mattaliano, who has read the letter countless times, still shakes his head at the implied poverty, the stoicism and the selflessness of the last line, all from a girl who requests a wagon for her brother first and nothing specific for herself.
“This is a family that couldn’t afford a wagon, and she’s writing, ‘Don’t forget the poor,’ ” he said. “That just shot an arrow through me. What did she think poor was?”

For the full story, see:
COREY KILGANNON. “Poignant Notes to Santa, Lost for a Century.” The New York Times (Tues., DEC. 22, 2015): A1 & A22.
(Note: ellipsis added.)
(Note: the online version of the article has the date DEC. 21, 2015, and has the title “A Chimney’s Poignant Surprise: Letters Santa Missed, Long Ago.”)

Steel Mills Repurposed as Online Warehouses

(p. A1) BETHLEHEM, Pa. — Ellen Gaugler remembers driving her father to the Bethlehem Steel mill, where he spent his working years hauling beams off the assembly line and onto rail cars.
When the Pennsylvania plant shut down about two decades ago, Ms. Gaugler thought it was the last time she or anyone in Bethlehem would come to its gates to find a job that paid a decent wage for a physical day of work.
But she saw an ad in the paper last year for a position at a local warehouse that changed her mind. She’d never heard of Zulily, the online retailer doing the hiring, but she knew the address: It was on the old mill site, steps from where her father worked.
“When I came for the interviews I looked up and said, ‘Oh, my God, I feel like I am at home,'” Ms. Gaugler said. She got the job.
As shopping has shifted from conventional stores to online marketplaces, many retail workers have been left in the cold, but Ms. Gaugler is coming out ahead. Sellers like Zulily, Amazon and Walmart are competing to get goods to the buyer’s doorstep as quickly as possible, giving rise to a constellation of vast warehouses that have fueled a boom for workers without college degrees and breathed new life into pockets of the country that had fallen economically behind.

For the full story, see:
NATALIE KITROEFF. ” Idle Steel Mills Rumble to Life As Online Sellers’ Warehouses.” The New York Times (Mon., OCT. 23, 2017): A1 & A13.
(Note: the online version of the story has the date OCT. 22, 2017, and has the title “Where Internet Orders Mean Real Jobs, and New Life for Communities.”)

The System Is “Rigged” by the “Unelected Permanent Governing Class”

(p. 10) With its broad historical scope, Eisinger’s book lacks the juicy, infuriating details of “Chain of Title,” David Dayen’s chronicle of foreclosure fraud — another instance of white-collar crime that went largely unpunished. With its emphasis on institutions and incentives, it doesn’t serve up the red meat of Matt Taibbi’s “The Divide,” a stinging indictment of the justice system’s unequal treatment of corporate executives and street-level drug offenders. But for someone familiar with the political landscape of the contemporary United States, Eisinger’s account has the ring of truth.
After decades in which Wall Street masters of the universe were lionized in the media and popular culture, star investment bankers — rich, usually white men in nice suits — just don’t match the popular image of criminals. Democrats as well as Republicans cozied up to big business, outsourcing the Treasury Department to Wall Street and the Justice Department to corporate law firms. Even after the financial system collapsed, the Obama administration’s priority was to bail out the megabanks — to “foam the runway,” in Treasury Secretary Tim Geithner’s words. The Justice Department became increasingly staffed by intelligent, status-seeking, conformist graduates of the nation’s top law schools — all of whom had friends on Wall Street and in the defense bar. In that environment, the easy choice was to play along, strike a deal with an impressive-sounding fine (to be absorbed by shareholders) that held no one responsible, and avoid risking an acquittal or a hung jury. (The book’s title comes from then-U.S. Attorney James Comey’s name for prosecutors who had never lost a trial.) Corruption can take many forms — not just bags of cash under the table, but a creeping rot that saps our collective motivation to pursue the cause of justice. As Upton Sinclair might have written were he alive today: It is difficult to get a man to understand something, when his résumé depends upon his not understanding it.
There’s just one problem. While the “unelected permanent governing class” may have been willing to look the other way when highly paid bankers wrecked the economy, many of the workers who lost their jobs and families who lost their homes were not. Outside the Beltway, the fact that the Wall Street titans who blew up the financial system suffered little more than slight reductions in their bonuses only reinforced the perception that the “system” is “rigged” — with the consequences we know only too well. Many people simply want to live in a world that is fair. As Eisinger shows, this one isn’t.

For the full review, see:
JAMES KWAK. “Getting Away With It.” The New York Times Book Review (Sunday, JULY 9, 2017): 10.
(Note: ellipsis added.)
(Note: the online version of the review has the date JULY 5, 2017, and has the title “America’s Top Prosecutors Used to Go After Top Executives. What Changed?”)

The book under review, is:
Eisinger, Jesse. The Chickenshit Club: Why the Justice Department Fails to Prosecute Executives. New York: Simon & Schuster, 2017.

Lobstermen Retooling as Oyster Farmers

(p. A10) COREA, Me. — The boats start up around 3:30 in the morning, stirring the village with the babble of engines before they motor out to sea. They will return hours later, loaded with lobster.
Joe Young’s boat has not gone out lately. Instead, he puts on waders and sloshes into the salt pond behind his house, an inlet where water rushes in and out with the tides. After a lifetime with most of his income tied to what he finds in the sea, this lobsterman — and sixth-generation fisherman — is trying his hand at something new. He is farming oysters.
“Said I would never have a garden,” Mr. Young, 64, says, as he tends to his briny nursery. Tens of thousands of oysters the size of peanuts are growing inside porous boxes, stacked up like underwater file drawers, in a contraption called an “oyster condo.” He gives one of the boxes a shake, hoping to dislodge a slimy orange growth that has taken up residence, and flings away a green crab. Nearby, kelp he is growing sways lazily from a long underwater rope.
Reaching into the glassy water, Mr. Young plucks larger oysters from among the smooth stones, popping the mottled mollusks into a big white bucket.
“It’s different from lobstering,” Mr. Young said, “because I’m in the whole process.”
. . .
“Lobstermen are saying, ‘Boy, not (p. A11) only personally, but community level, we’re all invested in lobsters,’ ” Jon Lewis, the director of the state’s aquaculture division, said. ” ‘Natural resources tend to come and go. If this happens, what do I do?’ ”
. . .
To Mr. Young, aquaculture does not look so different from catching lobsters. “Fishermen are farmers,” he said. “There’s one crop, and it’s lobster.”

For the full story, see:
JESS BIDGOOD. “A Lobsterman Tries a New Line: Oyster Farmer.” The New York Times (Mon., OCT. 23, 2017): A10-A11.
(Note: ellipses added.)
(Note: the online version of the story has the date OCT. 10, 2017, and has the title “A FISHERMAN TRIES FARMING.”)