Search Results for: Economist

The Early Principles That Guided the Makers of LEGO

Legos in space

In his 2013 book, Brick by Brick: How LEGO Rewrote the Rules of Innovation and Conquered the Global Toy Industry, David Robertson outlines the early successes and failures of the Denmark-based LEGO Group — from their early experiments with plastic, to their decision in the late 1990s to finally strike licensing deals with movies and characters, starting with Star Wars.

Robertson describes a pivotal moment in the company’s history, when Godtfred Kirk Christiansen, the son of founder Ole Kirk Christiansen, met up with a toy buyer: Read more…

Exxon, Rex, and Russia: A Deep Drilling

Rex Tillerson, the former CEO of ExxonMobil and recipient of Russia’s Order of Friendship, has become our new Secretary of State. I took a deep dive into the archives, and, like all the amateur Kremlinologists and power-hungry oilmen who’ve tread this ground before me, I’ve learned that the deeper you drill, the bigger the risk. Stop somewhere around point #10 if you start to feel like you’re on shaky ground, or like you’re one nesting matryoshka doll short of a shell company. Read more…

The Audacity of Hope: A Reading List on Barack Obama

Image by Jason Taellious (CC BY-SA 2.0)

I’m not sure when Barack Obama first entered my consciousness: whether it was a 60 Minutes segment during the first campaign or reading about him in the July 10th, 2008 issue of Rolling Stone — which, albeit slightly crumpled — remains on our coffee table to this day.

The time leading up to his first election was the darkest period of my life to date and during those long nights in late 2008, I took strength from the enthusiasm surrounding him, his campaign, and his election. The optimism was part antidote to my troubles, part encouragement to move on. Of all the articles written about Obama over the years, the ones that intrigued me most were the ones that helped me get to know the man and what he stood for, just a little bit better.

Thursday, January 19th, 2017 is the last day in office for Barack Obama as the 44th president of the United States. With this reading list we remember the man, his time in office, and take a peek at what’s in store after the White House.

1. “The Conciliator” (Larissa Macfarquhar, The New Yorker, May 7, 2007)

Macfarquhar reports on Obama in action with constituents before being elected president, observing his calm demeanor, “freakish self-possession,” and ability to connect with humans of every description. She describes a man who, early on, eschewed political outrage as an impotent, empty tactic — a distraction to achieving unity.

2. “A Conversation with Barack Obama” (Jann S. Wenner, Rolling Stone, July 10, 2008)

In this wide-ranging interview during Obama’s first bid for president in 2008, Wenner takes us back to the optimism surrounding the candidate and his campaign. They chat about Obama’s three favorite books, musical tastes, pop culture, getting endorsed by Bob Dylan and Bruce Springsteen, and Obama’s overall approach to governing a nation.

3. “Obama’s Way” (Michael Lewis, Vanity Fair, October, 2012)

Michael Lewis spent six months with the president before Obama was elected to his second term in office. Lewis reports on the emotional demands of the presidency, avoiding distraction to save decision-making energy as commander-in-chief, the potentially disastrous human consequences of those decisions, and what the president does to soothe his soul after a particularly hard day.

4. “The way ahead” (Barack Obama, The Economist, October 8, 2016)

In his own words, Barack Obama examines the state of the U.S. economic union, positing that globalization, inclusion, and closing the gap between the richest and poorest Americans will aid U.S. prosperity.

5. “Barack Obama is Preparing for His Third Term” (Jason Zengerle, GQ, January 17, 2017)

Most former presidents avoid the spotlight to spend more time with family and maybe enjoy some golf. Even though Barack Obama is stepping away from political office, he’s gearing up to influence the direction of the United States by advising his successor.

Our Favorite Words Of 2016

Photo by Heather

Black Cardigan is a great newsletter by writer-editor Carrie Frye, who shares dispatches from her reading life. We’re thrilled to share some of them on Longreads. Go here to sign up for her latest updates.

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In an earlier letter, I put out a call for favorite words you learned in 2016. I hoped they’d make a nice handful of marbles for us to have in our pockets for this new year, which only this week taught me the word ‘kompromat.’ :-(. Read more…

The Changing Face of Reindeer Herding

Mr Ingold wrote about the importance of the word talo. Roughly translated, it means house. But it also has a deeper meaning. When Finnish herders are raised in a talo, it is not simply that they grow up in one place. “A house,” explains Mr Ingold, “is a total establishment, an organic unity of place and people, cumulatively built up through the work of generations.” It is not something that can be shaken off. When Aarne says that herders are “born” to do it he is not being flippant. Like his father, he feels he had little choice. Nor does he regret that. Raisa explains that “this is what we want to do. There’s a richness to this wild way of life.”

That remains true even as threats from climate change, logging and other signs of expanding human footprints impinge on their vast emptiness. But throughout the centuries herders have adapted to changes wrought from outside. They have embraced GPS tracking, all-terrain vehicles (ATVs) and drones.

The Economist goes into the frigid north to examine how climate change and economics have endangered the centuries-old relationship between Finn and reindeer.

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Fuck Work

Longreads Pick

Economists believe in full employment. Americans think that work builds character. But what if jobs aren’t working anymore?

Source: Aeon
Published: Nov 25, 2016
Length: 12 minutes (3,021 words)

The Case Against Christmas

Long after winter has ended, hating on Christmas remains popular sport, as much a holiday tradition as eggnog and overspending. In the New Republic in December, 1990, James S. Henry published an essay outlining his yuletide complaints and what he sees as Christmas’ flaws. The magazine republished Henry’s piece online for Christmas this year, so I thought I’d share it here, too. The stats might be dated and popular toys no longer the same, but the case Henry builds is as evergreen as a spruce. Each New Year I hope we live in a world with less hate and more understanding. But complaints? I have a few. Happy Holidays.

Christmas destroys the environment and innocent animals and birds. These have perhaps not been traditional concerns for economists. But when one takes account of all the Christmas trees, letters, packages, increased newspaper advertising, wrapping paper, and catalogs and cards, as well as all the animals slaughtered for feast and fur, this holiday is nothing less than a catastrophe for the entire ecosystem. According to the U.S. Forest Service, 33 million Christmas trees are consumed each year. Growing them imposes an artificially short rotation period on millions of acres of forest land, and the piles of needles they shed shorten the life of most household rugs and pets. All the trees and paper have to be disposed of, which places a heavy burden on landfill sites and recycling facilities, especially in the Northeast.

This year, according to the Humane Society, at least 4 million foxes and minks will be butchered just to provide our Christmas furs. To stock our tables, the Department of Agriculture tells me, we’ll also slaughter 22 million turkeys, 2 million pigs, and 2 million to 3 million cattle, plus a disproportionate fraction of the 6 billion chickens that the United States consumes each year. To anyone who has ever been to a turkey farm, Christmas and Thanksgiving take on a new and somewhat less cheerful meaning. Every single day during the run-up to these holidays, thousands of bewildered, debeaked, growth-hormone-saturated birds are hung upside down on assembly-line racks and given electric shocks. Then their throats are slit and they are dropped into boiling water.

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A Conversation With Dan Ariely About What Shapes our Motivations

Photo Credit: May R.

Jessica Gross | Longreads | November 2016 | 14 minutes (3,711 words)

 

“It’s astonishing to me how some ideas endure even when it’s obvious that they are no longer relevant,” Dan Ariely writes in his latest book, Payoff: The Hidden Logic That Shapes Our Motivations. A professor of psychology and behavioral economics at Duke University, Ariely relentlessly examines our assumptions about ourselves—and finds they’re often totally misconstrued. We think, for example, that money is our main motivator in the workplace. But not only are “a sense of connection, meaning, ownership, and long-term thinking” often more effective, it also turns out that monetary bonuses can work against us, undermining our commitment to the work itself. In one study, workers at a semiconductor factory were offered rewards of a pizza voucher, a compliment, money, or nothing on the first day of a workweek. That first day, the voucher and the compliment boosted productivity more than the bonus, but all three motivated people more than the control condition (getting nothing). But as the week went on, people who’d gotten the bonus that first day began to perform worse than people who hadn’t been rewarded at all!

Please excuse the exclamation point, but it’s hard to describe an Ariely finding without one. His work often so directly counters our common understandings that it’s startling, even funny. This also has a lot to do with Ariely himself. His tenacity as a researcher is matched by his commitment to sharing his ideas with the public, in plain language and often with a dose of humor. He’s written a slew of popular books, including Predictably Irrational, The Upside of Irrationality, and The (Honest) Truth About Dishonesty, and given a number of TED Talks. (Full disclosure: I wrote about Ariely for TED last year.) We spoke by phone on a mid-October morning, and Ariely was professorial in the best way: no jargon, tons of examples, and committed to helping me understand.

Your field is behavioral economics. What is that, exactly?

There are two ways to explain it. The first one is in opposition to standard economics. In standard economics, we assume all kinds of things about people: that they know their preferences, that they always make decisions that are in their best interest, that they don’t have emotions or limitations of time and attention and thinking capacity. Based on those assumptions, economists go ahead and make recommendations on how to design our lives, how to do our tax and education and healthcare systems.

Behavioral economics just doesn’t start with any assumptions. Rather than saying, “People are perfectly rational,” behavioral economics starts by saying, “We just don’t know.” Let’s put people in different situations and see how they behave. And when you put people in different situations, people often behave very differently than most rational economists would expect. Because of that, the recommendations that come from behavioral economics are very different.

The second definition is that behavioral economics is really, for me at least, an applied field of social science that is designed to figure out how we actually make decisions and how to make things better. Now, not everybody is interested in the “better” part, but it’s an analysis of the true forces that influence us in our day-to-day lives and how we harness those forces to improve our ability to make decisions. Read more…

Home Is Where the Fraud Is

Banksy. Crayon House Foreclosure, East Los Angeles. Via Occupy.com

David Dayen | Chain of Title: How Three Ordinary Americans Uncovered Wall Street’s Great Foreclosure Fraud | The New Press | May 2016 | 26 minutes (7,150 words)

Below is an excerpt from Chain of Title, by David Dayen, the true story of how a group of ordinary Americans took on the nation’s banks at the height of the housing crisis, calling into question fraudulent foreclosure practices. This story is recommended by Longreads contributing editor Dana Snitzky

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How could you not know who I am if you’re suing me?

Lisa Epstein drove down Highway A1A, along the Intracoastal Waterway, back to her old apartment in Palm Beach. At her side was her daughter Jenna, in a car seat; atop the dashboard was an envelope containing the monthly payment on her unsold co-op. Though her house was in foreclosure, Lisa always paid the mortgage on the apartment, her fallback in case of eviction.

Lisa gazed at the water out the window. She never wanted to miss mortgage payments; Chase told her to do it and promised assistance afterward, but then put her into foreclosure. The delinquency triggered late fees, penalties, and notifications to national credit bureaus. A damaged credit score affected a mortgage company’s decision to grant loan relief, which hinged on the ability to pay. Even if Lisa managed to finally sell the apartment, even if she could satisfy the debt on the house, the injury from this “advice” would stick with her for years. Chase Home Finance never mentioned the additional consequences, emphasizing only the possibility of aid. The advice was at best faulty, at worst a deliberate effort to seize the home. Lisa spent a lifetime living within her means, guarding against financial catastrophe. Now Chase Home Finance obliterated this carefully constructed reputation. She felt tricked.

America has a name for people who miss their mortgage payments: deadbeats. Responsible taxpayers who repay their debts shouldn’t have to “subsidize the losers’ mortgages,” CNBC host Rick Santelli shouted from the floor of the Chicago Board of Trade on February 19, 2009, two days after Lisa got her foreclosure papers. “This is America! How many of you people want to pay for your neighbor’s mortgage, that has an extra bathroom and can’t pay their bills, raise your hand!” The floor traders in Chicago, between buying and selling commodity futures, hooted. This rant would later be credited as the founding moment of the Tea Party. And it signified a certain posture toward delinquent homeowners, a cultural bias that equated missing the mortgage payment with failing the duties of citizenship. The indignation didn’t account for mortgage companies driving customers into default. However, lenders welcomed anything that humiliated deadbeats into blaming themselves. In most cases it worked: in the twenty-three states that required judicial sign-off for foreclosures, around 95 percent of the cases went uncontested.

But Lisa had an inquisitive mind. Before she would acquiesce, she wanted to understand the circumstances that led to this lawsuit from U.S. Bank, an entity she had never encountered before seeing it listed as the plaintiff. She had three questions: who was this bank, why did it have a relationship with her, and why was it trying to take her house? Read more…

What It’s Like to Fly Into a Thunderstorm

Flying near a fast-forming storm in North Dakota.
Flying near a fast-forming storm in North Dakota. (Photo by Shawn,flickr)

Justin Nobel | Atlas Obscura | November 2015 | 14 minutes (3,498 words)

 

Atlas ObscuraOur latest Exclusive is a new story by Justin Nobel, co-funded by Longreads Members and published by Atlas Obscura.

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