Longreads Pick
The smart money says the U.S. economy will splinter, with some states thriving, some states not, and all eyes are on California as the nightmare scenario. After a hair-raising visit with former governor Arnold Schwarzenegger, who explains why the Golden State has cratered, Michael Lewis goes where the buck literally stops—the local level, where the likes of San Jose mayor Chuck Reed and Vallejo fire chief Paige Meyer are trying to avert even worse catastrophes and rethink what it means to be a society.
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Published: Sep 29, 2011
Length: 45 minutes (11,495 words)
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Longreads Pick
The September 11, 2001 attacks have been a symbol of many things and many causes, but like the lavish, flag-draped rebuilding of the site, it has also been a vehicle for enrichment. From corporations to politicians to government officials to nonprofits to the security industry to publishers to the health industry (not to mention the incidents of outright fraud over the years), many people have found ways to profit from one of the nation’s biggest disasters. 9/11 has created an economy all its own. “The intersection of 9/11 and money is a busy intersection,” says retired New York City firefighter Kenny Specht. Glenn Corbett, a professor of fire science at John Jay College, active in a range of 9/11 issues, puts it this way: “Lots of people have got their hand in the till. A lot of people and a lot of companies have made a lot of money off of 9/11.” Is it sacrilege to point this out? #Sept11
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Published: Aug 31, 2011
Length: 25 minutes (6,311 words)
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Longreads Pick
Instead of the surge of rebounding growth which historically accompanies successful exit from a recession, we have the UK’s disappointing 0.2 per cent growth, the US’s anaemic 0.3 per cent and the glum eurozone average figure of 0.2 per cent. That number includes the surprising and alarming German 0.1 per cent, the desperately poor French 0 per cent and then, wait for it, the agreeably frisky Belgian 0.7 per cent. Why is that, if you’ve been following the story, laugh-aloud funny? Because Belgium doesn’t have a government. Thanks to political stalemate in Brussels, it hasn’t had one for 15 months. No government means none of the stuff all the other governments are doing: no cuts and no ‘austerity’ packages. In the absence of anyone with a mandate to slash and burn, Belgian public sector spending is puttering along much as it always was; hence the continuing growth of their economy. It turns out that from the economic point of view, in the current crisis, no government is better than any government – any existing government.
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Published: Sep 1, 2011
Length: 12 minutes (3,055 words)
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Longreads Pick
Still, we face several challenges. First of all, every new company today is being built in the face of massive economic headwinds, making the challenge far greater than it was in the relatively benign ’90s. The good news about building a company during times like this is that the companies that do succeed are going to be extremely strong and resilient. And when the economy finally stabilizes, look out—the best of the new companies will grow even faster. Secondly, many people in the U.S. and around the world lack the education and skills required to participate in the great new companies coming out of the software revolution. This is a tragedy since every company I work with is absolutely starved for talent.
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Published: Aug 20, 2011
Length: 9 minutes (2,358 words)
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Longreads Pick
Yet only two years in, the future of carbon capture and storage (CCS) is in jeopardy. On July 14, American Electric Power pulled the plug on its CCS efforts, citing a weak economy and the “uncertain status of U.S. climate policy.” CEO Morris said AEP and its partners “have advanced CCS technology more than any other power generator with our successful two-year project to validate the technology. But at this time it doesn’t make economic sense to continue.” The dimming of CCS’s promise reflects a broader national retreat from the goal of reversing climate change. In private and, to some degree, in public, the company and its executives express frustration that they tried to do the right thing—only to end up burned.
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Published: Jul 22, 2011
Length: 9 minutes (2,356 words)
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Longreads Pick
Much of what liberals blame on financialization is a result of profound changes to both the United States and the global economy that date from as early as 1968—well before the onset of financialization. In fact, the growth of the finance sector was partly a product of these developments. It is true that the speculative disruptions caused by financialization have to be addressed if we don’t want to suffer another crash down the road. But, if policymakers truly want to arrest America’s decline in the world and attend to the various ills that have accompanied it, then they must come to terms with the much broader story of what has happened to American industry and global capitalism in the last four decades. Simply cracking down on Wall Street won’t be enough.
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Published: Jul 13, 2011
Length: 14 minutes (3,633 words)
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Longreads Pick
Since 1978, the price of tuition at US colleges has increased over 900 percent, 650 points above inflation. To put that in number in perspective, housing prices, the bubble that nearly burst the US economy, then the global one, increased only fifty points above the Consumer Price Index during those years. But while college applicants’ faith in the value of higher education has only increased, employers’ has declined.
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Published: Apr 25, 2011
Length: 11 minutes (2,969 words)
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Longreads Pick
“Etsy has made it possible for a lot of small businesses to get off the ground,” says Dale Dougherty, co-founder of O’Reilly Media and the publisher of Make magazine, which covers the do-it-yourself economy. “But even the most successful crafters run up against the limits of their own labor. Handmade can be a limited idea.” In other words, the very qualities that make Etsy so attractive to new sellers put the most successful Etsy sellers in an awkward position: They must stay small or abandon Etsy. For founder Rob Kalin and his investors, the questions are even tougher: Can a site dedicated to DIY scale? Or is Etsy, despite Kalin’s ambition and grandiosity, just a small idea?
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Published: Apr 6, 2011
Length: 16 minutes (4,085 words)
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Longreads Pick
One could also read ‘The Master Switch’ as a much bolder attempt to influence the future of the information economy, not just net neutrality. In the book and in recent public appearances, Wu has focused on the growing power of Apple, Facebook, and Twitter—not the usual contestants in net neutrality debates. He believes that some of these companies exhibit features of earlier information empires and may be hurting innovation. The separations principle is clearly meant to apply to them, and to the information industry as a whole, not just to network operators such as Comcast and Verizon. The merits and implications of Wu’s position, therefore, need to be assessed in a much broader context than net neutrality alone.
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Published: Mar 2, 2011
Length: 15 minutes (3,799 words)
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The Great Afghan Bank Heist
Poring over stacks of documents, investigators at the American Embassy in Kabul have pinpointed dozens of instances in which Kabul Bank executives may have bribed Afghan officials, including a successful bid to hold the contract to process the salaries that the government pays its employees each month—approximately seventy-five million dollars. Access to the salaries would give bank officials an opportunity to earn millions of dollars in interest in the course of a single year.
“The troubles at Kabul Bank stand as a parable for the sometimes malign effect that the influx of billions of foreign dollars has had on this impoverished country since 2001. While the Western money spent has done a great deal to create a modern economy, much of it has been captured by a tiny minority of well-connected Afghan businessmen and politicians, and much of it illegitimately. The loss of seven hundred million dollars or more at Kabul Bank represents a significant percentage of Afghanistan’s gross domestic product, which stands at only about twelve billion dollars.”
-By Dexter Filkins, The New Yorker
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