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    I.M.F. Sees Steady Growth but Warns of Rising Protectionism

    The International Monetary Fund offered an upbeat economic outlook but said that new trade barriers and escalating wars could worsen inflation.The global economy is approaching a soft landing after several years of geopolitical and economic turmoil, the International Monetary Fund said on Tuesday. But it warned that risks remain, including stubborn inflation, the threat of escalating global conflicts and rising protectionism.In its latest World Economic Outlook report, the I.M.F. projected global output to hold steady at 3.2 percent in 2024, unchanged from 2023. Although the pace of the expansion is tepid by historical standards, the I.M.F. said that global economic activity has been surprisingly resilient given that central banks aggressively raised interest rates to tame inflation and wars in Ukraine and the Middle East further disrupt supply chains.The forecasts came as policymakers from around the world began arriving in Washington for the spring meetings of the International Monetary Fund and the World Bank. The outlook is brighter from just a year ago, when the I.M.F. was warning of underlying “turbulence” and a multitude of risks.Although the world economy has proved to be durable over the last year, defying predictions of a recession, there are lingering concerns that price pressures have not been sufficiently contained and that new trade barriers will be erected amid anxiety over a recent surge of cheap Chinese exports.“Somewhat worryingly, progress toward inflation targets has somewhat stalled since the beginning of the year,” Pierre-Olivier Gourinchas, the I.M.F.’s chief economist, wrote in an essay that accompanied the report. “Oil prices have been rising recently in part due to geopolitical tensions and services inflation remains stubbornly high.”He added: “Further trade restrictions on Chinese exports could also push up goods inflation.”The gathering is taking place at a time of growing tension between the United States and China over a surge of Chinese green energy products, such as electric vehicles, lithium batteries and solar panels, that are flooding global markets. Treasury Secretary Janet L. Yellen returned last week from a trip to China, where she told her counterparts that Beijing’s industrial policy was harming American workers. She warned that the United States could pursue trade restrictions to protect investments in America’s solar and electric vehicle industries.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Tesla’s Troubles Raise Questions About Its Invincibility

    As the share price plunges, investors wonder whether the company, led by Elon Musk, can withstand intensifying competition.Elon Musk appeared to be in a defiant mood Wednesday when he stood before employees at Tesla’s factory near Berlin a week after an arsonist set fire to a high-voltage power pylon and brought production to a standstill.“They can’t stop us,” Mr. Musk, the company’s chief executive, told workers in a giant tent beside the plant.But there are proliferating signs that Tesla may not be as unstoppable as it once seemed. The company’s car sales are no longer growing at a torrid pace. Chinese automakers and established brands like BMW and Volkswagen are flooding the market with electric cars. And Tesla has been slow to respond with new models.Mr. Musk’s many outside ventures, and his penchant for making polarizing political statements and attacking people he disagrees with, have raised questions about how focused he remains on managing Tesla. Wall Street is increasingly concerned about the company: Tesla’s share price has lost one-third of its value this year even as major stock indexes have hit record highs.“A bet on Tesla has always been a bet on Mr. Musk,” said Eric Talley, a professor at Columbia Law School who focuses on corporate law, governance and finance.In an interview with the former television anchor Don Lemon that streamed online on Monday, Mr. Musk brushed off the drop in the company’s share price as part of the cycle.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Republicans Say, ‘Let Them Eat Hate’

    So Donald Trump has endorsed J.D. Vance in the race for Ohio’s Republican Senate nomination. Will Trump’s nod tip the balance? I have no idea, and frankly I don’t care.Ohio’s G.O.P. primary has, after all, been a race to the bottom, with candidates seemingly competing to see who can be crasser, who can do the most to dumb down the debate. Vance insists that “what’s happening in Ukraine has nothing to do with our national security” and that we should focus instead on the threat from immigrants crossing our southern border. Josh Mandel, who has been leading in the polls, says that Ohio should be a “pro-God, pro-family, pro-Bitcoin state.” And so on. Any of these candidates would be a terrible senator, and it’s anyone’s guess who’d be worst.But the thing about Vance is that while these days he gives cynical opportunism a bad name, he didn’t always seem that way. In fact, not that long ago he seemed to offer some intellectual and maybe even moral heft. His 2016 memoir, “Hillbilly Elegy,” drew widespread and respectful attention, because it offered a personal take on a real and important problem: The unraveling of society in Appalachia and more broadly for a significant segment of the white working class.Yet neither Vance nor, as far as I can tell, any other notable figure in the Republican Party is advocating any real policies to address this problem. They’re happy to exploit white working-class resentment; but when it comes to doing anything to improve their supporters’ lives, their implicit slogan is, “Let them eat hate.”Let’s talk for a minute about the reality Vance was writing about back when many took him seriously.I still encounter people who imagine that social dysfunction is mainly a problem involving nonwhite residents of big cities. But that picture is decades out of date. The social problems that have festered in 21st-century America — notably large numbers of prime-age males not working and widespread “deaths of despair” from drugs, suicide and alcohol — have if anything fallen most heavily on rural and small-town whites, especially in parts of the heartland that have been left behind as a knowledge-centered economy increasingly favors high-education metropolitan areas.What can be done? Progressives want to see more social spending, especially on families with children; this would do a lot to improve people’s lives, although it’s less clear whether it would help revive declining communities.Back in 2016 Trump offered a different answer: protectionist trade policies that, he claimed, would revive industrial employment. The arithmetic on this claim never worked, and in practice Trump’s trade wars appear to have reduced the number of U.S. manufacturing jobs. But back then Trump was at least pretending to address a real issue.At this point, however, neither Trump nor any other important Republican is willing to go even that far. I’d say that G.O.P. campaigning in 2022 is all culture war, all the time, except that this would be giving Republicans too much credit. They aren’t fighting a real culture war, a conflict between rival views of what our society should look like; they’re riling up the base against phantasms, threats that don’t even exist.This isn’t hyperbole. I’m not just talking about things like the panic over critical race theory, although this has come to mean just about any mention of the role that slavery and discrimination have played in U.S. history. Florida is even rejecting many math textbooks, claiming that they include prohibited topics.That’s bad. But we’re seeing a growing focus on even more bizarre conspiracy theories, with frantic attacks on woke Disney, etc. And roughly half of self-identified Republicans believe that “top Democrats are involved in elite child sex-trafficking rings.”What people may not realize is that Vance’s anti-immigrant rhetoric is almost as detached from reality as QAnon-type theories about Democratic pedophiles. I mean, yes, undocumented immigrants do exist. But the idea that they pose a major threat to public order is a fantasy; indeed, the evidence suggests that they’re considerably more law-abiding than native-born Americans.And making the alleged insecurity of the southern border your signature campaign issue is especially bizarre if you’re running for office in Ohio, where immigrants make up only 4.8 percent of the population — around a third of the national average. (Almost 38 percent of the population of New York City, and 45 percent of its work force, is immigrant. It’s not exactly a dystopian hellhole.)But look, none of this is a mystery. Republicans are following an old playbook, one that would have been completely familiar to, say, czarist-era instigators of pogroms. When the people are suffering, you don’t try to solve their problems; instead, you distract them by giving them someone to hate.And history tells us that this tactic often works.As I said, I have no idea whether Trump’s endorsement of Vance will matter. What I do know is that the G.O.P. as a whole has turned to hate-based politics. And if you aren’t afraid, you aren’t paying attention.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More

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    Status Anxiety Is Blowing Wind Into Trump’s Sails

    What is the role of status discontent in the emergence of right-wing populism? If it does play a key role, does it matter more where someone stands at any given moment or whether someone is moving up the ladder or down?In the struggle for status, Michael Bang Petersen, a political scientist at Aarhus University, Denmark and the lead author of “Beyond Populism: The Psychology of Status-Seeking and Extreme Political Discontent,” argues thatEducation has emerged as a clear cleavage in addition to more traditional indicators of social class. The highly educated fare better in a more globalized world that puts a premium on human capital. Since the 1980s the highly educated left in the U.S. and elsewhere have been forging alliances with minority groups (e.g., racial, ethnic and sexual minorities), who also have been increasing their status in society. This, in turn, pushes those with lower education or those who feel challenged by the new emerging groups towards the right.It is hardly a secret that the white working class has struggled in recent decades — and clearly many factors play a role — but what happens to those without the skills and abilities needed to move up the education ladder to a position of prestige in an increasingly competitive world?Petersen’s answer: They have become populism’s frontline troops.Over the past six decades, according to Petersen, there has been a realignment of the parties in respect to their position as pro-establishment or anti-establishment: “In the 1960s and 1970s the left was associated with an anti-systemic stance but this position is now more aligned with the right-wing.”Those trapped in a downward spiral undergo a devastating experience.Lea Hartwich, a social psychologist at the Institute for Migration Research and Intercultural Studies at Osnabrueck University in Germany wrote in an email:Those falling behind face a serious threat to their self-worth and well-being: Not only are the societal markers of personal worth and status becoming unattainable but, according to the dominant cultural narrative of individual responsibility, this is supposedly the result of their own lack of hard work or merit.Instead of focusing on the economic system and its elites, Hartwich continued,Right-wing populists usually identify what they call liberal elites in culture, politics and the media as the “enemies of the people.” Combined with the rejection of marginalized groups like immigrants, this creates targets to blame for dissatisfaction with one’s personal situation or the state of society as a whole while leaving a highly unequal economic system intact. Right-wing populists’ focus on the so-called culture wars, the narrative that one’s culture is under attack from liberal elites, is very effective because culture can be an important source of identity and self-worth for people. It is also effective in organizing political conflicts along cultural, rather than economic lines.In a January 2021 paper — “Neoliberalism can reduce well-being by promoting a sense of social disconnection, competition, and loneliness” — Hartwich, Julia C. Becker, also of Osnabrueck, and S. Alexander Haslam of Queensland University found that “exposure to neoliberal ideology,” which they describe as the belief that “economies and societies should be organized along the principles of the free market,” results in “loneliness and, through this, decreases well-being. We found that exposure to neoliberal ideology increased loneliness and decreased well-being by reducing people’s sense of connection to others and by increasing perceptions of being in competition with others.”Diana Mutz, a political scientist at the University of Pennsylvania, described the political consequences of white status decline in her 2018 paper, “Status threat, not economic hardship, explains the 2016 presidential vote.”“Candidate preferences in 2016 reflected increasing anxiety among high-status groups,” Mutz wrote. “Both growing domestic racial diversity and globalization contributed to a sense that white Americans are under siege by these engines of change.”Mutz found that:Change in financial well-being had little impact on candidate preference. Instead, changing preferences were related to changes in the party’s positions on issues related to American global dominance and the rise of a majority-minority America: issues that threaten white Americans’ sense of dominant group status.In fact, status decline and economic decline, which have fueled the increasing conservatism of the Republican Party, are closely linked both psychologically and politically.Gordon Hanson, a professor of urban policy at Harvard and the author of “Economic and Political Consequences of Trade-Induced Manufacturing Decline,” emailed me that before the 2016 election, the assumption was that “the political consequences of regionally concentrated manufacturing job loss” would be that “left-leaning politicians” would be “the primary beneficiaries.” Trump’s victory “dramatically altered our thinking on the matter.”Instead, Hanson continued, “large scale job loss led to greater tribalism (as represented by the populist nationalism of Trump and his acolytes) rather than greater support for redistribution (as represented by your run-of-the-mill Democrat).” There was, in fact, “precedence for this outcome,” he wrote, citing a 2013 paper, “Political Extremism in the 1920s and 1930s: Do German Lessons Generalize?” by Alan de Bromhead, Barry Eichengreen and Kevin H. O’Rourke, economists at Queen’s University Belfast, Berkeley and N.Y.U. Abu Dhabi.The three economists wrote:Consistent with German experience, we find a link between right-wing political extremism and economic conditions, as captured by the change in G.D.P. Importantly, however, what mattered for right-wing anti-system party support was not just deterioration in economic conditions lasting a year or two, but economic conditions over the longer run.Many of the U.S. counties that moved toward Trump in 2016 and 2020 experienced long-run adverse economic conditions that began with the 2000 entry of China into the World Trade Organization, setbacks that continue to plague those regions decades later.Hanson and his co-authors, David Autor and David Dorn, economists at M.I.T. and the University of Zurich, found in their October 2021 paper “On the Persistence of the China Shock” thatLocal labor markets more exposed to import competition from China suffered larger declines in manufacturing jobs, employment-population ratios, and personal income per capita. These effects persist for nearly two decades beyond the intensification of the trade shock after 2001, and almost a decade beyond the shock reaching peak intensity.They go on:Even using higher-end estimates of the consumer benefits of rising trade with China, a substantial fraction of commuting zones appears to have suffered absolute declines in average real incomes.In their oft-cited 2020 paper, “Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure,” Autor, Dorn, Hanson and Kaveh Majlesi, an economist at Monash University, found that in majority white regions, adverse economic developments resulting from trade imports produced a sharp shift to the right.Autor and his co-authors describe “an ideological realignment in trade-exposed local labor markets that commences prior to the divisive 2016 U.S. presidential election.” More specifically, “trade-impacted commuting zones or districts saw an increasing market share for the Fox News Channel, stronger ideological polarization in campaign contributions and a relative rise in the likelihood of electing a Republican to Congress.”Counties with a majority white population “became more likely to elect a G.O.P. conservative, while trade-exposed counties with an initial majority-minority population became more likely to elect a liberal Democrat,” Autor and his colleagues write.They continue:In presidential elections, counties with greater trade exposure shifted toward the Republican candidate. These results broadly support an emerging political economy literature that connects adverse economic shocks to sharp ideological realignments that cleave along racial and ethnic lines and induce discrete shifts in political preferences and economic policy.The trade-induced shift to the right has deeper roots dating back to at least the early 1990s.In “Local Economic and Political Effects of Trade Deals: Evidence from NAFTA,” Jiwon Choi and Ilyana Kuziemko, both of Princeton, Ebonya Washington of Yale and Gavin Wright of Stanford make the case that the enactment of the North American Free Trade Agreement in 1993 played a crucial role in pushing working class whites out of the Democratic Party and into the Republican Party:We demonstrate that counties whose 1990 employment depended on industries vulnerable to NAFTA suffered large and persistent employment losses relative to other counties. These losses begin in the mid-1990s and are only modestly offset by transfer programs. While exposed counties historically voted Democratic, in the mid-1990s they turn away from the party of the president (Bill Clinton) who ushered in the agreement and by 2000 vote majority Republican in House elections.The trade agreement with Mexico and Canada “led to lasting, negative effects on Democratic identification among regions and demographic groups that were once loyal to the party,” Choi and her co-authors write.Before enactment, the Republican share of the vote in NAFTA-exposed counties was 38 percent, well below the national average, but “by 1998, these once-solidly Democratic counties voted as or more Republican in House elections as the rest of the country,” according to Choi and her colleagues.Before NAFTA, the authors write, Democratic Party support for protectionist policies had been the glue binding millions of white working-class voters to the party, overcoming the appeal of the Republican Party on racial and cultural issues. Democratic support for the free trade agreement effectively broke that bond: “For many white Democrats in the 1980s, economic issues such as trade policy were key to their party loyalty because on social issues such as guns, affirmative action and abortion they sided with the G.O.P.”The consequences of trade shocks have been devastating both to whole regions and to the individuals living in them.Katheryn Russ — co-author along with Katherine Eriksson and Minfei Xu, economists at the University of California-Davis, Jay C. Shambaugh, an economist at George Washington University of the 2020 paper “Trade Shocks and the Shifting Landscape of U.S. Manufacturing” — wrote in an email that trade induced economic downturns “affect entire communities, as places with the lowest fractions of high-school or college-educated workers are finding themselves falling with increasing persistence into the set of counties with the highest unemployment rates.”Even worse, these counties “do not bounce back out with the same frequency that counties with the highest fraction of high-school and college-educated workers do. So we aren’t just talking about a phenomenon that may influence the self-perceived status of individual workers, but of entire communities.”Russ cited a separate 2017 study, “Trade Shocks and the Provision of Local Public Goods” by Leo Feler and Mine Z. Senses, economists at U.C.LA. and Johns Hopkins, which finds that “increased competition from Chinese imports negatively affects local finances and the provision of public services across US localities.”Specifically, “a $1,000 increase in Chinese imports per worker results in a relative decline in per capita expenditures on public welfare, 7.7 percent, on public transport, 2.4 percent, on public housing, 6.8 percent, and on public education, 0.9 percent.”These shortfalls emerge just as demand increases, Feler and Senses write: “The demand for local public goods such as education, public safety, and public welfare is increasing more in trade-affected localities when resources for these services are declining or remaining constant.”For example,Public safety expenditures remain constant at a time when local poverty and unemployment rates are rising, resulting in higher property crime rates by 3.5 percent. Similarly, a relative decline in education spending coincides with an increase in the demand for education as students respond to a deterioration in employment prospects for low-skilled workers by remaining in school longer.As if that were not enough,In localities that are more exposed to trade shocks, we also document an increase in the share of poor and low-income households, which tend to rely more on government services such as public housing and public transportation, both of which experience spending cuts.Eroded social standing, the loss of quality jobs, falling income and cultural marginalization have turned non-college white Americans into an ideal recruiting pool for Donald Trump — and stimulated the adoption of more authoritarian, anti-immigrant and anti-democratic policies.Rui Costa Lopes, a research fellow at the University of Lisbon, emailed in response to my inquiry about the roots of right-wing populism: “As we’re talking more about those who suffer from relative deprivation, status insecurity or powerlessness, then we’re talking more about the phenomenon of ‘politics of resentment’ and there is a link between those types of resentment and adhesion to right populist movements.”Lopes continued: “Recent research shows that the link between relative deprivation, status insecurity or powerlessness and political populist ideas (such as Euroscepticism) occurs through cultural (anti-immigrant) and political (anti-establishment) blame attributions.”“The promise of economic well-being achieved through meritocratic means lies at the very heart of Western liberal economies,” write three authors — Elena Cristina Mitrea of the University of Sibiu in Romania, Monika Mühlböck and Julia Warmuth, of the University of Vienna — in “Extreme Pessimists? Expected Socioeconomic Downward Mobility and the Political Attitudes of Young Adults.” In reality, “the experience of upward mobility has become less common, while the fear of downward mobility is no longer confined to the lower bound of the social strata, but pervades the whole society.”Status anxiety has become a driving force, Mitrea and her colleagues note: “It is not so much current economic standing, but rather anxiety concerning future socioeconomic decline and déclassement, that influences electoral behavior.”“Socially disadvantaged and economically insecure citizens are more susceptible to the appeals of the radical right,” Mitrea, Mühlböck and Warmuth observe, citing data showing “that far-right parties were able to increase their vote share by 30 percent in the aftermath of financial crises.Economic insecurity translates into support for the far-right through feelings of relative deprivation, which arise from negative comparisons drawn between actual economic well-being and one’s expectations or a social reference group. Coping with such feelings increases the likelihood of rejecting political elites and nurturing anti-foreign sentiments.The concentration of despair in the United States among low-income whites without college degrees compared with their Black and Hispanic counterparts is striking.Carol Graham, a Brookings senior fellow, and Sergio Pinto, a doctoral candidate at the University of Maryland’s School of Public Policy, document this divide in “The Geography of Desperation in America: Labor Force Participation, Mobility Trends, Place, and Well-being,” a paper presented at a 2019 conference sponsored by the Boston Federal Reserve:Poor blacks are by far the most optimistic group compared to poor whites: they are 0.9 points higher on the 0-10 scale (0.43 standard deviations). Poor blacks are also 14 percentage points (0.28 standard deviations) less likely to report stress the previous day, half as likely as poor whites to report stress in the previous day, while poor Hispanics fall somewhere in the middle.Graham and Pinto measured poll respondents’ sense of purpose, sense of community and their financial and social well-being and found “that blacks and Hispanics typically score higher than whites,” noting that “these findings highlight the remarkable levels of resilience among blacks living in precarious circumstances compared to their white counterparts.”Graham and Pinto write:The deepest desperation is among cohorts in the white working class who previously had privileged access to jobs (and places) that guaranteed stable, middle-class lives. Rather ironically, African Americans and Hispanics — the cohorts that historically faced high levels of discrimination — retain higher levels of well-being, especially hope for the future.The data suggest that a large segment of the white, non-college population lives day-by-day in a cauldron of dissatisfaction, a phenomenon that stands apart from the American tradition.This discontent drew many disaffected Americans to Donald Trump, and Trump’s defeat in 2020 has produced millions of still more disaffected voters who support his claim that the election was stolen.Michael Bang Petersen puts it this way:We know that humans essentially have two routes to acquire status: prestige and dominance. Prestige is earned respect from having skills that are useful to others. Dominance is status gained from intimidation and fear. Individuals who are high in the pursuit of dominance play a central role in political destabilization. They are more likely to commit political violence, to engage in hateful online interactions and to be motivated to share misinformation.That this is dangerous does not need repeating.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram. More