United States Economy

Subterms

    More stories

    • 125 Shares99 Views

      in Elections

      Red Sea Shipping Halt Is Latest Risk to Global Economy

      by

      Next year could see increasing volatility as persistent military conflicts and economic uncertainty influence voting in national elections across the globe.The attacks on crucial shipping traffic in the Red Sea straits by a determined band of militants in Yemen — a spillover from the Israeli-Hamas war in Gaza — is injecting a new dose of instability into a world economy already struggling with mounting geopolitical tensions.The risk of escalating conflict in the Middle East is the latest in a string of unpredictable crises, including the Covid-19 pandemic and the war in Ukraine, that have landed like swipes of a bear claw on the global economy, smacking it off course and leaving scars.As if that weren’t enough, more volatility lies ahead in the form of a wave of national elections whose repercussions could be deep and long. More than two billion people in roughly 50 countries, including India, Indonesia, Mexico, South Africa, the United States and the 27 nations of the European Parliament, will head to the polls. Altogether, participants in 2024’s elections olympiad account for 60 percent of the world’s economic output.In robust democracies, elections are taking place as mistrust in government is rising, electorates are bitterly divided and there is a profound and abiding anxiety over economic prospects.A ship crossing the Suez Canal toward the Red Sea. Attacks on the Red Sea have pushed up freight and insurance rates.Mohamed Hossam/EPA, via ShutterstockA billboard promoting presidential elections in Russia, which will take place in March.Dmitri Lovetsky/Associated PressEven in countries where elections are neither free nor fair, leaders are sensitive to the economy’s health. President Vladimir V. Putin’s decision this fall to require exporters to convert foreign currency into rubles was probably done with an eye on propping up the ruble and tamping down prices in the run-up to Russia’s presidential elections in March.The winners will determine crucial policy decisions affecting factory subsidies, tax breaks, technology transfers, the development of artificial intelligence, regulatory controls, trade barriers, investments, debt relief and the energy transition.A rash of electoral victories that carry angry populists into power could push governments toward tighter control of trade, foreign investment and immigration. Such policies, said Diane Coyle, a professor of public policy at the University of Cambridge, could tip the global economy into “a very different world than the one that we have been used to.”In many places, skepticism about globalization has been fueled by stagnant incomes, declining standards of living and growing inequality. Nonetheless, Ms. Coyle said, “a world of shrinking trade is a world of shrinking income.”And that raises the possibility of a “vicious cycle,” because the election of right-wing nationalists is likely to further weaken global growth and bruise economic fortunes, she warned.A campaign rally for former President Donald J. Trump in New Hampshire in December.Doug Mills/The New York TimesA line of migrants on their way to a Border Patrol processing center at the U.S.-Mexico border. Immigration will be a hot topic in upcoming elections.Rebecca Noble for The New York TimesMany economists have compared recent economic events to those of the 1970s, but the decade that Ms. Coyle said came to mind was the 1930s, when political upheavals and financial imbalances “played out into populism and declining trade and then extreme politics.”The biggest election next year is in India. Currently the world’s fastest-growing economy, it is jockeying to compete with China as the world’s manufacturing hub. Taiwan’s presidential election in January has the potential to ratchet up tensions between the United States and China. In Mexico, the vote will affect the government’s approach to energy and foreign investment. And a new president in Indonesia could shift policies on critical minerals like nickel.The U.S. presidential election, of course, will be the most significant by far for the world economy. The approaching contest is already affecting decision-making. Last week, Washington and Brussels agreed to suspend tariffs on European steel and aluminum and on American whiskey and motorcycles until after the election.The deal enables President Biden to appear to take a tough stance on trade deals as he battles for votes. Former President Donald J. Trump, the likely Republican candidate, has championed protectionist trade policies and proposed slapping a 10 percent tariff on all goods coming into the United States — a combative move that would inevitably lead other countries to retaliate.Mr. Trump, who has echoed authoritarian leaders, has also indicated that he would step back from America’s partnership with Europe, withdraw support for Ukraine and pursue a more confrontational stance toward China.Workers on a car assembly line in Hefei, China. Beijing has provided enormous incentives for electric vehicles.Qilai Shen for The New York TimesA shipyard in India, which is jockeying to compete with China as the world’s largest manufacturing hub.Atul Loke for The New York Times“The outcome of the elections could lead to far-reaching shifts in domestic and foreign policy issues, including on climate change, regulations and global alliances,” the consulting firm EY-Parthenon concluded in a recent report.Next year’s global economic outlook so far is mixed. Growth in most corners of the world remains slow, and dozens of developing countries are in danger of defaulting on their sovereign debts. On the positive side of the ledger, the rapid fall in inflation is nudging central bankers to reduce interest rates or at least halt their rise. Reduced borrowing costs are generally a spur to investment and home buying.As the world continues to fracture into uneasy alliances and rival blocs, security concerns are likely to loom even larger in economic decisions than they have so far.China, India and Turkey stepped up to buy Russian oil, gas and coal after Europe sharply reduced its purchases in the wake of Moscow’s invasion of Ukraine. At the same time, tensions between China and the United States spurred Washington to respond to years of strong-handed industrial support from Beijing by providing enormous incentives for electric vehicles, semiconductors and other items deemed essential for national security.A protest in Yemen on Friday against the operation to safeguard trade and protect ships in the Red Sea.Osamah Yahya/EPA, via ShutterstockThe drone and missile attacks in the Red Sea by Iranian-backed Houthi militia are a further sign of increasing fragmentation.In the last couple of months, there has been a rise in smaller players like Yemen, Hamas, Azerbaijan and Venezuela that are seeking to change the status quo, said Courtney Rickert McCaffrey, a geopolitical analyst at EY-Parthenon and an author of the recent report.“Even if these conflicts are smaller, they can still affect global supply chains in unexpected ways,” she said. “Geopolitical power is becoming more dispersed,” and that increases volatility.The Houthi assaults on vessels from around the world in the Bab-el-Mandeb strait — the aptly named Gate of Grief — on the southern end of the Red Sea have pushed up freight and insurance rates and oil prices while diverting marine traffic to a much longer and costlier route around Africa.Last week, the United States said it would expand a military coalition to ensure the safety of ships passing through this commercial pathway, through which 12 percent of global trade passes. It is the biggest rerouting of worldwide trade since Russia’s invasion of Ukraine in February 2022.Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said the impact of the attacks had so far been limited. “From an economic perspective, we’re not seeing huge increase in oil and gas prices,” Mr. Vistesen said, although he acknowledged that the Red Sea assaults were the “most obvious near-term flashpoint.”Uncertainty does have a dampening effect on the economy, though. Businesses tend to adopt a wait-and-see attitude when it comes to investment, expansions and hiring.“Continuing volatility in geopolitical and geoeconomic relations between major economies is the biggest concern for chief risk officers in both the public and private sectors,” a midyear survey by the World Economic Forum found.With persistent military conflicts, increasing bouts of extreme weather and a slew of major elections ahead, it’s likely that 2024 will bring more of the same. More

    • 88 Shares99 Views

      in Elections

      Why Biden Could Lose Georgia Next Year

      by

      Far from the hustle of modern Atlanta and its rapidly growing suburbs is an older Georgia, a rural land of cotton fields and vacant storefronts, of low-wage jobs and shuttered swimming pools, of underfunded Black colleges and American promises ever deferred.In 2020, strong turnout among Black voters in these isolated regions of the state was key to the coalition that turned Georgia blue and ousted Donald Trump from office. Though Atlanta and its suburbs have drawn much of the national attention, Black Democrats in rural Georgia were just as critical: Voting in large numbers in 2020, they reduced the margin of victory in Republican strongholds.Three years later, ahead of a presidential election that could determine whether the United States slides toward autocracy, there are signs this coalition is on the brink of collapse. Many Black voters say President Biden and the Democratic Party have so far failed to deliver the changes they need to improve their lives, from higher-paid jobs to student debt relief and voting protections. They want Mr. Trump out of the White House for good. But indifference and even disdain are growing toward a Democratic Party that relies assiduously on Black Americans’ support yet rarely seems in a hurry to deliver results for them in return.“The Black Hills,” a print by Jason Hunt, hangs at Major’s Barber & Beauty in Fort Valley, Ga.José Ibarra Rizo for The New York TimesA shuttered business in downtown Fort Valley.José Ibarra Rizo for The New York Times“What does he know about my life?” Kyla Johnson, 19, told me of Mr. Biden outside the Dollar General grocery store in Fort Valley, a tiny town in central Georgia home to Fort Valley State University. Ms. Johnson said she had no plans to vote next year.To better understand this discontent, I set out to talk to Black voters across rural Georgia. What I found were many people who are largely living in poverty and say they feel forgotten by Mr. Biden and national Democrats, though almost all did vote for Mr. Biden in 2020. They say they won’t vote for Republicans, whom they see as embodying the spirit of the Old South. But so far, many voters told me, they have seen and heard nothing to suggest that the Democratic Party understands their problems, is committed to improving their lives or even cares about them at all.In dozens of interviews across rural Georgia, younger Black Americans in the region said they are struggling to put food on the table amid soaring prices. They are grappling with suddenly surging housing costs in areas that had long been affordable. Many are carrying tens of thousands of dollars in student loans, debts they have no idea how they can repay working the jobs available in the region, which are extremely limited and low paying. The bounty from a booming Wall Street is nowhere to be found.In Peach County, home to Fort Valley, nearly one in three Black Americans is living below the federal poverty line, according to U.S. census data, compared to 16 percent of white residents in the county and 12.5 percent of Americans nationally. In Lowndes County, which includes Valdosta, about one in three Black Americans is living below the poverty line, compared to just 12.5 percent of white residents.Ms. Johnson’s friend Zayln Young, 18, said she would consider voting, but had so far heard nothing from Mr. Biden about the issues she cared about the most. “For instance, I can’t get food stamps because I’m on my meal plan. Why?” Ms. Young asked, adding that her school meal plan at Fort Valley State University is hard for her to afford and doesn’t provide enough food. (Under federal rules, students who receive the majority of their meals from a school meal plan are ineligible for food stamps, now known as the Supplemental Nutrition Assistance Program.)Inside the grocery store moments later, Kem Harris, a social worker, told me she had come to buy items to make gift baskets for Fort Valley State University students who were in need. “Some of them don’t have family nearby and they can’t afford basics, like food,” said Ms. Harris, 56. “Today is toiletries, like toothpaste.”In national polls, Black voters appear to be moving away from Mr. Biden and the Democratic Party while expressing growing support for Mr. Trump. In one October poll, just 71 percent of Black voters in battleground states said they would vote for Mr. Biden, compared to the 87 percent that voted for him nationwide in 2020. Nearly a third of Black men said they support Mr. Trump, while 17 percent of Black women do. In another poll, one in five Black voters said they wanted someone other than Mr. Trump or Mr. Biden.What’s going on? Trumpism has proved to be a powerful force in American politics, so it should come as little surprise that some Black Americans — especially Black men — might also be drawn to its authoritarianism, faux populism and toxic masculinity, as so many White Americans have been, particularly as the economy has grown increasingly unequal.Given Mr. Trump’s open embrace of white supremacy, however, that appeal is severely limited. What’s more likely is not a widespread shift of Black voters toward Mr. Trump but a vote of no confidence in Mr. Biden and the Democratic Party. Black Americans know they make up the backbone of the party. They believe — correctly — that it has long taken them for granted. And now they seem to be reaching a breaking point.Melinee Calhoun.José Ibarra Rizo for The New York Times“Overall, I hear this sense of apathy,” said Melinee Calhoun, the state organizing manager for Black Voters Matter, a nonpartisan voting rights group with a large presence in rural Georgia. “It’s: We did what we were asked to do, and nothing has changed.” In many communities, organizers like Dr. Calhoun are the only ones building a relationship with Black voters.Biden campaign officials say the president and Democrats have enacted policies, like the infrastructure bill and $2.2 billion in relief aimed at helping Black farmers, that directly benefit these communities. Part of the challenge, they say, is explaining that they could do more were it not for Republican opposition in Congress.“We want to point out the fact that the Republicans have stood in the way,” Quentin Fulks, Mr. Biden’s principal deputy campaign manager, told me in a phone interview. But, he said, “we have to do a better job of taking credit for the work we’ve been doing.”In rural Georgia, this disconnect is vast. Organizers, voters and others here say there has been little investment from national Democrats in the region. Mr. Fulks said that it’s early, and that the campaign was still hiring and planned to spend significant resources in the state. Nevertheless, as Mr. Biden campaigns for a second term, likely against a would-be autocrat, he is speaking about democracy in sweeping terms and lauding the strength of an economy whose fruits are far removed from the daily realities of Black Americans in rural Georgia.Whipping up fears over Mr. Trump and taking a victory lap on standard Democratic policies may not be enough to win back these voters. Instead, Mr. Biden and the Democratic Party will have to get serious about taking bolder measures to help a group of people who, descended from Americans once enslaved in the very same region, remain largely without access to financial capital, under constant threat of political disenfranchisement and, too often, in poverty.When the gentlemen at Major’s Barber & Beauty Shop in downtown Fort Valley learned a journalist from The New York Times was in town, one of them stepped out onto the mostly empty street and beckoned me in. Inside, one of the customers, a regular, welcomed me to what he described as “our country club.”“If it’s Trump, I’ll vote twice,” Major McKenzie, 72, joked. But across the room one barber, Shaun William, 38, carefully affixed a Louis Vuitton-themed cape around a client’s neck and shook his head. Mr. William was worried. Many of his clients, he said, couldn’t stand Mr. Trump. But in recent years under Mr. Biden, they had only seen their lives become harder with rising inflation.Major’s Barber & Beauty Shop in Fort Valley.José Ibarra Rizo for The New York Times“Bad as things were, people say they felt money was circulating with Trump in office, those stimulus checks,” he said. “Now there is no money circulating. Prices are up. The cost of food is up.”Throughout the region, opportunities for jobs are extremely limited. Many voters told me they are forced to make a choice: working menial jobs for local businesses owned by a handful of White Republican families, fast food or Wal-Mart. Given the grinding poverty around them, some voters here also said the recent headlines about the United States sending billions to Israel to bomb Gaza are hard to swallow.“I think he should stay out of other people’s business and focus more on problems here at home,” said Kameron White, a 33-year-old forklift operator. “We need help here. We need better education. More jobs. There’s drugs, there’s gang violence. There’s very few grocery stores. I want to see more change at home.”The state of Georgia stands to receive more than $9 billion under the infrastructure plan championed by Mr. Biden, money for roads, bridges, airports, public transit and cleaner water. But Black voters in Georgia, which has two Democratic senators but a Republican governor and legislature, say they have yet to see that money flow into their own communities. In Valdosta, not far from the Florida border, several residents told me they were angry the city was spending $1.8 million to build pickleball courts even as it keeps threadbare hours for a public swimming pool in a largely Black neighborhood throughout the sweltering South Georgia summer. Though Black residents make up a modest majority in Valdosta, the city’s mayor is a white right-wing talk-show host.The pool at the Mildred Hunter Community Center, in Valdosta, Ga., is open only on Saturdays during the weekends and for limited hours each weekday during the summer.José Ibarra Rizo for The New York TimesVoter enthusiasm is critical in Georgia, where a spirited campaign of suppression and disenfranchisement driven by Republicans and conservative activists both local and national makes exercising the right to vote harder than in many places. In 2005, the state became among the first in the country to enact a measure requiring a government-issued photo ID to vote. In recent years, right-wing activists and Republican Party officials in the state have led an effort to remove voters from the rolls.In a quiet neighborhood of Valdosta near Barack Obama Boulevard, Erica Jordan, 29, greeted me on the porch of her aging white bungalow.She is behind on the rent, as she recently lost her job at Pizza Hut. Because of this, she lost her car, severely limiting her ability to work and be a parent in Valdosta, which has no regular citywide public transit system. Over the past year, the monthly rent on her small house went up by $100, to $750. In late August, floodwaters from Hurricane Idalia entered her home, damaging some of her belongings.Erica Jordan with her daughter.José Ibarra Rizo for The New York TimesMs. Jordan is now working a telecommunications job from home, but she says she earns too much for food stamps and not enough to make ends meet or afford food at the one grocery store within walking distance. At the end of every month, Ms. Jordan says, she asks to babysit or do hair just to eke by.“I’m not complaining, but I pay the bills on my own. I’m a single mother. I need help,” she said.She plans to vote next year, but wonders aloud if it will ever bring the change she needs. “All my life, I been played,” she says. “Every year it gets harder. It makes me wonder why I vote.”It was these voters, some of the poorest in the country, who played a key role in denying Mr. Trump a second term and preserving American democracy. It’s in America’s best interest to make sure they have a reason — and a right — to keep showing up to vote.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, Instagram, TikTok, X and Threads. More

    • 88 Shares99 Views

      in Elections

      There Wasn’t Much to Love About 2023

      by

      Bret Stephens: Hi, Gail. This is our last conversation for the year, so let me first wish you and Dan a Merry Christmas.Gail: Thanks, Bret. And the best of course to you and Corinna and your kids.Bret: As much as I’ve loved our exchanges, I can’t say I’ve loved the year. From Donald Trump’s political resurrection, to Congress failing to come together to help Ukraine, to America’s premier university presidents being unable to say that calling for the genocide of Jews violates campus policies, to this latest ludicrous impeachment inquiry, to the clown show that made Kevin McCarthy speaker of the House and then the clown show that brought him down, to Vivek Ramaswamy merely opening his mouth, it feels like the year in which America slipped into terminal decline.Gail Collins: Hey, let’s go for something a little less drastic. I admit any year in which all the most positive stories seemed to involve Taylor Swift wasn’t exactly great for politics. But looking back I see some bright spots.Bret: I’m all ears.Gail: Even though people can’t wrap their heads around it, the economy’s really improved. Lots of jobs available. The unemployment rate is, gee, nearly the lowest since I was in grad school. Biden’s battle against global warming has been showing signs of progress. Electric car sales, for example, are up. Solar is energy booming.Bret: Much of it lining the pockets of Elon Musk, 2023’s third-biggest blowhard.Gail: Representative George Santos is gone — so deeply gone he’s joined Rudy Giuliani in the world of cameo video sales. And while it’s hard for America to find issues on which a strong majority can get together, I’ll bet one is the conviction that Vivek Ramaswamy is the most irritating presidential candidate in recent world history.Bret: Your point about the remarkable resilience of the American economy is a good one, and maybe it will even help Joe Biden politically as inflation finally cools off and interest rates start to fall. He’ll need that, since right now more than 60 percent of Americans disapprove of his handling of the economy.Biden might just get another political assist if the Supreme Court, in its supreme unwisdom, fails to overturn a lower court decision to sharply restrict the distribution of abortion pills, which will almost surely energize a lot of independent voters to stick with him. There’s a bitter sort of irony in thinking that the only thing that might save abortion rights in America for the long term is their restriction in the short term.Gail: The struggle over abortion rights is one of the most fascinating political stories of our era. It seems to be getting a very strong, very positive response from a wide swath of the public. Not just limited to liberals or Democrats.Bret: Even conservatives like me shudder to think of what happens in this country if we turn the clock back 60 years on reproductive rights.Gail: The most recent controversies are going to bring even more voters into the abortion-rights camp. We had the story of the Texas Supreme Court blocking an abortion for a young woman who wanted to have a baby, then learned the fetus she was carrying would almost certainly not survive — and that following through with the delivery might make it impossible for her to have children in the future. Hard to get a more sympathetic saga.Bret: Remarkable how people who claim to believe in the sanctity of life are willing to wreck lives to get what they want.Gail: And the abortion pills work so early in a pregnancy … opposition is pretty much limited to people with a religious conviction against ending pregnancy at all.I’m very sure a majority of the Supreme Court justices don’t want to have to deal with this issue. They’re conservative, but not totally crazy.Bret: Very sure? I can see John Roberts, the chief justice, and Neil Gorsuch, the most libertarian of the justices, joining the three liberals in overturning the appeals court. But it’s going to be uncomfortably close.Gail: Fingers crossed.Bret: Returning to my preferred tale of woe, Gail, homelessness in America just rose to its highest recorded rate. Levels of illegal immigration continued to rise this year to stratospheric levels, despite Biden’s repeated promises to get the border under control. Both problems contribute to a palpable sense that things are not under control. And I don’t quite understand why Democrats don’t want to move more aggressively on these fronts, since they are big liabilities for the party.You’re in charge of the Dems: What’s up with that?Gail: Hmmph. I clearly remember recently that when something strange was going on in the House, I mentioned that you were in charge of Republicans and you protested. So don’t stick all the Democrats on me.Bret: Turnabout is fair play!Gail: OK, we’re talking about two issues here. I blame much of the housing crisis on suburban zoning laws that make it hard to build a lot of affordable homes for working families. Not that it’s all that easy to get large apartment complexes for the non-rich built in cities, either.To really tackle housing on a national scale, we’d need new programs coming from Congress, where the Republican House majority is hard pressed to work efficiently enough to brew coffee.Bret: The question isn’t whether House Republicans can brew coffee, Gail. It’s about what the president knew about Hunter’s coffee brewing — and when he knew it.Gail: Oh please, let’s skip the nonissue of Hunter Biden today.Bret: About the coffee: I was kidding. About housing: I don’t pretend to be an expert, but my impression is that the homelessness crisis has a lot to do with the opioid, meth and mental-health crises. I’m all for easing zoning laws, but I doubt we’ll make much headway until we find a way to address our catastrophic drug and mental-health problems, which often reinforce each other. Reversing misbegotten efforts to decriminalize hard drugs in places like Oregon, as well as a terrible Ninth Circuit ruling that made it difficult for cities to enforce ordinances against public camping, would do some good.Gail: Too bad we’re not doing the negotiations. I can envision possible trade-offs.The border is definitely a huge problem, but the Republicans are just using it as an excuse not to do anything the Biden administration proposes on any issue. While there have been some modest administration reforms, really getting the border situation under control requires bipartisan agreement that these House Republicans will never, ever allow.Bret: I’ve always been in favor of comprehensive and liberal immigration reform, but we didn’t have this scale of crisis when any of Biden’s recent predecessors were in office. The problem started when the administration came to office determined to be the un-Trump — and doing so at precisely the moment when much of Latin America was falling apart. Biden then spent two years in denial about the crisis until Democratic mayors in cities like New York and the governor of Massachusetts started crying foul. And the solution, I’m afraid, is to effectively militarize the border until would-be migrants get the message that the only way into the United States is through legal channels.Gail: Have a feeling we’ll be arguing about this throughout 2024. Meantime, give me some thoughts on Republican presidential politics. (Not that you’re in charge of the Republicans or anything.)Bret: If only!Gail: Next time we converse, the Iowa Republican caucus will be right around the corner, followed by the New Hampshire primary.The only candidate who seems to have a sliver of a chance of embarrassing Trump is Nikki Haley. She’s been picking up steam in New Hampshire and some people think she might actually be able to win there if Chris Christie dropped out of the race. Think you could talk him into it?Bret: Well, hope springs eternal — or at least until Super Tuesday. If Christie dropped out of the race tomorrow and threw his political weight behind Haley, she might have a chance of edging out Ron DeSantis for second place in Iowa, behind Trump, which would at least give her a symbolic victory. Ditto for New Hampshire, where the combined Haley-Christie vote, according to polls, stands at about 32 percent compared with Trump’s 44 — almost a contest! But the biggest problem Haley faces is that while she would probably trounce Biden in a general election, it now looks like Trump will win, too, which defeats the argument among Republicans that the 45th president is unelectable as the 47th.Gail: Awful but electable, the Donald Trump story.Bret: In short, the only thing that can turn things around for Republicans is Biden stepping down. Which, as you’ve correctly been telling me these past months, ain’t likely to happen. How very, very depressing.Gail: Yeah, we’ve been wishing for ages that Biden would make the smart, generous move and announce he’s not running for re-election. Now, with the primaries right around the corner, it’s almost too late for him to change his mind anyway. Sigh.Bret: Gnash teeth. Beat breast. Wail.Gail: Well, the one thing I think we can count on is a non-boring new year. It’s true the Republican presidential primaries could be really dreary, but I refuse to believe that a man who’s under indictment for a jillion different offenses is just going to coast to victory.And we’ll have lots of House and Senate races to argue about. For instance, did you see that in Arizona — no, I’m gonna stop and hold that thought for the new year. This one’s been hard enough.Bret, one of my favorite things is waiting, every week, for you to end the conversation with some great piece of prose or poetry. Let’s have one more for the holidays.Bret: Well, the most delightful piece of prose that I’ve read in The Times in the last few days is Jonathan Kandell’s obituary for Sanche Charles Armand Gabriel de Gramont, better known in this country as the journalist Ted Morgan (an anagram for “de Gramont”). The son of a French aristocrat, Morgan chose to become an American, led a life of adventure as a soldier and journalist, and even won a Pulitzer Prize for local reporting when he covered the death of the opera baritone Leonard Warren, who died at the Met in 1960 while singing Verdi’s aria “Urna fatale del mio destino” — “the fatal urn of my destiny.”“There was an awesome moment as the singer fell,” Morgan reported. “The rest of the cast remained paralyzed. Finally someone in the capacity audience called out, ‘For God’s sake, bring down the curtain!’”And that’s my wish, Gail, for 2023.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, Instagram, TikTok, X and Threads. More

    • 113 Shares159 Views

      in Elections

      High Housing Prices May Pose a Problem for Biden

      by

      Buying a home is a less attainable goal for many young people, and rents are expensive. Could that dog Democrats in the 2024 election?Cameron Ambrosy spent the first weekend of December going to 10 open houses — purely for research purposes. The 25-year-old in St. Paul, Minn., has a well-paying job and she and her husband are saving diligently, but she knows that it will be years before they can afford to buy.“It is much more of a long-term goal than for my parents or my grandparents, or even my peers who are slightly older,” said Ms. Ambrosy, adding that for many of her friends, homeownership is even farther away. “There’s a lot of nihilism around long-term goals like home buying.”As many people pay more for rent and some struggle to save for starter homes, political and economic analysts are warning that housing affordability may be adding to economic unhappiness — and is likely to be a more salient issue in the 2024 presidential election than in years past.Many Americans view the economy negatively even though unemployment is low and wage growth has been strong. Younger voters cite housing as a particular source of concern: Among respondents 18 to 34 in a recent Morning Consult survey, it placed second only to inflation overall.Wary of the issue and its political implications, President Biden has directed his economic aides to come up with new and expanded efforts for the federal government to help Americans who are struggling with the costs of buying or renting a home, aides say. The administration is using federal grants to prod local authorities to loosen zoning regulations, for instance, and is considering executive actions that focus on affordability. The White House has also dispatched top officials, including Lael Brainard, who leads the National Economic Council, to give speeches about the administration’s efforts to help people afford homes.“The president is very focused on the affordability of housing because it is the single most important monthly expense for so many families,” Ms. Brainard said in an interview.Housing is “the single most important monthly expense for so many families,” noted Lael Brainard, director of the National Economic Council. Erin Schaff/The New York TimesHousing has not traditionally been a big factor motivating voters, in part because key market drivers like zoning policies tend to be local. But some political strategists and economists say the rapid run-up in prices since the pandemic could change that.Rents have climbed about 22 percent since late 2019, and a key index of home prices is up by an even heftier 46 percent. Mortgages now hover around 7 percent as the Federal Reserve has raised rates to the highest level in 22 years in a bid to contain inflation. Those factors have combined to make both monthly rent and the dream of first-time homeownership increasingly unattainable for many young families.“This is the singular economic issue of our time, and they need to figure out how to talk about that with voters in a way that resonates,” said Tara Raghuveer, director of KC Tenants, a tenant union in Kansas City, Mo., referring to the White House. The housing affordability crush comes at a time when many consumers are facing higher prices in general. A bout of rapid inflation that started in 2021 has left households paying more for everyday necessities like milk, bread, gas and many services. Even though costs are no longer increasing so quickly, those higher prices continue to weigh on consumer sentiment, eroding Mr. Biden’s approval ratings.While incomes have recently kept up with price increases, that inflationary period has left many young households devoting a bigger chunk of their budgets to rental costs. That is making it more difficult for many to save toward now-heftier down payments. The situation has spurred a bout of viral social media content about the difficulty of buying a home, which has long been a steppingstone into the middle class and a key component of wealth-building in the United States.That’s why some analysts think that housing concerns could morph into an important political issue, particularly for hard-hit demographics like younger people. While about two-thirds of American adults overall are homeowners, that share drops to less than 40 percent for those under 35.“The housing market has been incredibly volatile over the last four years in a way that has made it very salient,” said Igor Popov, the chief economist at Apartment List. “I think housing is going to be a big topic in the 2024 election.”Yet there are reasons that presidential candidates have rarely emphasized housing as an election issue: It is both a long-term problem and a tough one for the White House to tackle on its own.“Housing is sort of the problem child in economic policy,” said Jim Parrott, a nonresident fellow at the Urban Institute and former Obama administration economic and housing adviser. America has a housing supply shortfall that has been years in the making. Builders pulled back on construction after the 2007 housing market meltdown, and years of insufficient building have left too few properties on the market to meet recent strong demand. The shortage has recently been exacerbated as higher interest rates deter home-owning families who locked in low mortgage rates from moving.Some analysts think concerns about housing affordability could morph into an important political issue, particularly for hard-hit demographics like younger people.Mikayla Whitmore for The New York TimesConditions could ease slightly in 2024. The Federal Reserve is expected to begin cutting borrowing costs next year as inflation eases, which could help to make mortgages slightly cheaper. A new supply of apartments are expected to be finished, which could keep a lid on rents.And even voters who feel bad about housing might still support Democrats for other reasons. Ms. Ambrosy, the would-be buyer in St. Paul, said that she had voted for President Biden in 2020 and she planned to vote for the Democratic nominee in this election purely on the basis of social issues, for instance.But housing affordability is enough of a pain point for young voters and renters — who tend to lean heavily Democrat — that it has left the Biden administration scrambling to emphasize possible solutions.After including emergency rental assistance in his 2021 economic stimulus bill, Mr. Biden has devoted less attention to housing than to other inflation-related issues, like reducing the cost of prescription drugs. His most aggressive housing proposals, like an expansion of federal housing vouchers, were dropped from last year’s Inflation Reduction Act.Still, his administration has pushed several efforts to liberalize local housing laws and expand affordable housing. It released a “Housing Supply Action” plan that aims to step up the pace of development by using federal grants and other funds to encourage state and local governments to liberalize their zoning and land use rules to make housing faster and easier to build. The plan also gives governments more leeway to use transportation and infrastructure funds to more directly produce housing (such as with a new program that supports the conversion of offices to apartments).The administration has also floated a number of ideas to help renters, such as a blueprint for future renters’ legislation and a new Federal Trade Commission proposal to prohibit “junk fees” for things like roommates, applications and utilities that hide the true cost of rent.Some affordable housing advocates say the administration could do more. One possibility they have raised in the past would be to have Fannie Mae and Freddie Mac, which help create a more robust market for mortgages by buying them from financial institutions, invest directly in moderately priced rental housing developments. Ms. Raghuveer, the tenant organizer, has argued that the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, could unilaterally impose a cap on annual rent increases for landlords whose mortgages are backed by the agencies.But several experts said that White House efforts would only help on the margins. “Without Congress, the administration is really limited in what they can do to reduce supply barriers,” said Emily Hamilton, an economist at the Mercatus Center who studies housing.Republicans control the House and have opposed nearly all of Mr. Biden’s plans to increase government spending, including for housing. But aides say Mr. Biden will press the case and seek new executive actions to help with housing costs.While it could be valuable to start talking about solutions, “nothing is going to solve the problem in one year,” said Mark Zandi, chief economist of Moody’s Analytics and a frequent adviser to Democrats.“This problem has been developing for 15 years, since the financial crisis, and it’s going to take another 15 years to get out of it.” More

    • 75 Shares129 Views

      in Elections

      Vibes, the Economy and the Election

      by

      Recent positive news may put two theories on economic disenchantment to the test.The New York Stock Exchange on Thursday. Stocks have boomed in recent days.Angela Weiss/Agence France-Presse — Getty ImagesA Federal Reserve announcement about the future of the funds rate is not the sort of news that would typically factor into analysis of public opinion and the economy. Usually, analysts look at numbers like gross domestic product and unemployment, not something as arcane as a federal funds rate.But this isn’t a normal economy, and public opinion about the economy hasn’t been normal, either.For two years, the public has said the economy is doing poorly, even though it appears healthy by many traditional measures. This has prompted a fierce debate over whether the public’s views are mostly driven by concrete economic factors like high prices or something noneconomic — like a bad “vibe” brought on by social media memes or Fox News.The Fed’s projection Wednesday that it will cut rates three times over the next year probably won’t generate TikTok memes, but it’s exactly the kind of event that may ultimately resolve this debate one way or another — with important and potentially decisive consequences for the 2024 presidential election.To cut right to the heart of the problem underlying this debate: High prices do not seem to fully explain why voters are this upset about the economy.Yes, voters are upset about high prices, and prices are indeed high. This easily and even completely explains why voters think this economy is mediocre: In the era of consumer sentiment data, inflation has never risen so high without pushing consumer sentiment below average and usually well below average. This part is not complicated.But it’s harder to argue that voters should believe the economy is outright terrible, even after accounting for inflation. Back in early 2022, I estimated that consumer confidence was running at least 10 to 15 percentage points worse than one would expect historically, after accounting for prices and real disposable income.I could run through the numbers, but just consider this instead: The low point for consumer sentiment in 2022 wasn’t just low; it was a record low for the index dating all the way to 1952. That’s right: Consumer sentiment in 2022 was worse than it was in the 1970s, when higher inflation was sustained for much longer, and worse than it was in the depths of the Great Recession.Now, other gauges of consumer confidence don’t show things quite so bad, but even the rosier measures show Americans about as down on the economy as they were 15 years ago, when mass layoffs drove a doubling of the unemployment rate to 10 percent and when household net worth fell $11.5 trillion. You don’t need fancy math to see there’s something left to be explained.The two sides of this debate disagree about why, exactly, the public is so sour on the economy.The Fed chairman, Jerome Powell, on Wednesday.Brendan Smialowski/Agence France-Presse — Getty ImagesThe case for vibesOne side argues that public opinion about the economy is now being driven by noneconomic factors, and in particular vibes, or a prevailing mood that colors our perception of reality. In this view, the vibe today is so biting and dour that public opinion is no longer responsive to material economic reality: The “vibe” is bad, so voters can’t see that the economy is good.Strictly speaking, there’s no reason vibes can’t be grounded in tangible economic conditions — like stimulus checks going away — but in practice this winds up being an argument for how noneconomic factors prevent voters from appreciating the economy. Those factors could include conservative media, cynical social media, the mental health crisis, a pandemic hangover, President Biden or really anything else that might dampen the economic spirit of Americans.There might well be something to the vibes argument. There might even be a lot to it. But there’s just not much evidence to support it. This side fundamentally rests its case on a diagnosis of exclusion: If we don’t buy the economic argument, then it must be noneconomic — and if it’s noneconomic, it can really be anything. The power of vibes here is naturally indeterminate, and allowing limitless explanatory power to a theory without evidence should give any serious thinker some pause.If this side of the debate is right, the consequences for Mr. Biden are pretty bleak. In this view, the economy ought to be helping him, but instead it will presumably be a major drag. An 81-year-old white male moderate may be the worst possible Democrat to turn around the vibe on TikTok.The case for the economy explaining allThe other side of the debate argues that the explanation is fundamentally economic, but that the factors dragging down consumers aren’t neatly captured by the usual economic statistics.There are two kinds of adverse economic factors that this side of the debate has in mind. One is economic dysfunction — some basic things have become harder. It’s harder to hire. It’s harder to get a loan. It’s more expensive to buy things. At times it was impossible to buy things because of supply chain shortages. It’s harder to buy a home. It’s harder to sell a home. If you wanted to engage in these kinds of economic activities, you should have done them before the fall of 2021.It’s easy to see how these challenges could affect economic perceptions, and these problems can be missed by economic statistics. The usual data measures the extent of economic activity, not its ease. That people still have the resources to spend, hire and buy doesn’t change that voters may rationally conclude the economy is bad if it makes it harder for them to undertake economic activity.The other kind of adverse economic factor is the pessimism about future growth. A statistic like unemployment says a lot about the economy today, but little about the economy tomorrow. Expectations of future growth are an important component of consumer confidence indexes, and for good reason: The desire to turn money into more money is foundational to American capitalist culture. Here again, there have been reasons to anticipate limited economic growth or even a recession. Investors have expected it, as evidenced by the yield curve. There was even a reasonable assumption that the Fed would be so focused on slowing inflation by keeping interest rates high that a recession would be all but inevitable.In contrast to the “vibes” theory, there’s a lot of evidence for these various phenomena. They also fit into the framework of consumer confidence as a function of concrete economic conditions.But whether these nontraditional economic problems add up to explain what’s going on is much harder to say. They might explain a lot and might even explain all of it, but it’s impossible to prove empirically without any precedent for today’s economy in the era of modern consumer confidence data. There has simply never been a time when unemployment has stayed so low and prices have gone up so much, let alone with all of these additional twists like supply chain shortages and expectations of recession.What can be said is that the theory of concrete economic problems will be put to the test as soon as economic reality improves, and that time might finally be at hand.Many states now have gas prices below $3 a gallon.Adam Davis/EPA, via ShutterstockThe economy appears to be improvingAfter a few months of stubborn inflation, rising gas prices and interest rates, and a falling stock market, the last month or so has brought excellent economic news. The stock market has gone up nearly 15 percent since New York Times/Siena College polls were in the field in late October. The inflation trajectory looks good. Mortgage rates are falling. Gas prices are down. Once-skeptical economists have declared that a “soft landing” seems at hand. And now the Fed is forecasting rate cuts, which augurs growth, confidence in lower inflation and eventually a return to a more normal economy.Put it together, and the big economic barriers could be poised to fade. If they do and the material economic side of the debate is correct, consumer confidence might quickly begin to recover. And Mr. Biden’s re-election chances would begin to improve, at least to the extent that the economy and not another issue, like his age, is responsible for Donald J. Trump’s lead in the polls.While it’s too early to say, there are certainly signs that consumer confidence could rise. For one, it has already been doing so. Overall, consumer confidence is up nearly 20 points since inflation peaked in the summer of 2022. That rate of improvement is in line with prior, vigorous periods of economic expansion, like during the 1990s. The monthly pattern in consumer confidence even seems to align with the news: Last month’s strong economic data corresponded with a rebound in consumer confidence that erased the declines of the past four months, when the economic news was worse than over the summer.That’s what we would expect if real economic factors were driving consumer confidence, though it’s not enough to disprove the vibe theory. To send the vibe argument away, we would need to start to see the gap closing between expected and actual consumer confidence. If fears of a recession fade and a more normal economic environment returns, there might still be enough time for that gap to close before Mr. Biden stands for re-election. More

    • 138 Shares119 Views

      in Elections

      The Stock and Bond Markets Are Getting Ahead of the Fed.

      by

      Stock and bond markets have been rallying in anticipation of Federal Reserve rate cuts. But don’t get swept away just yet, our columnist says.It’s too early to start celebrating. That’s the Federal Reserve’s sober message — though given half a chance, the markets won’t heed it.In a news conference on Wednesday, and in written statements after its latest policymaking meeting, the Fed did what it could to restrain Wall Street’s enthusiasm.“It’s far too early to declare victory and there are certainly risks” still facing the economy, Jerome H. Powell, the Fed chair, said. But stocks shot higher anyway, with the S&P 500 on the verge of a record.The Fed indicated that it was too early to count on a “soft landing” for the economy — a reduction in inflation without a recession — though that is increasingly the Wall Street consensus. An early decline in the federal funds rate, the benchmark short-term rate that the Fed controls directly, isn’t a sure thing, either, though Mr. Powell said the Fed has begun discussing rate cuts, and the markets are, increasingly, counting on them.The markets have been climbing since July — and have been positively buoyant since late October — on the assumption that truly good times are in the offing. That may turn out to be a correct assumption — one that could be helpful to President Biden and the rest of the Democratic Party in the 2024 elections.But if you were looking for certainty about a joyful 2024, the Fed didn’t provide it in this week’s meeting. Instead, it went out of its way to say that it is positioning itself for maximum flexibility. Prudent investors may want to do the same.Reasons for OptimismOn Wednesday, the Fed said it would leave the federal funds rate where it stands now, at about 5.3 percent. That’s roughly 5 full percentage points higher than it was in early in 2022. Inflation, the glaring economic problem at the start of the year, has dropped sharply thanks, in part, to those steep interest rate increases. The Consumer Price Index rose 3.1 percent in the year through November. That was still substantially above the Fed’s target of 2 percent, but way below the inflation peak of 9.1 percent in June 2022. And because inflation has been dropping, a virtuous cycle has developed, from the Fed’s standpoint. With the federal funds rate substantially above the inflation rate, the real interest rate has been rising since July, without the Fed needing to take direct action.But Mr. Powell says rates need to be “sufficiently restrictive” to ensure that inflation doesn’t surge again. And, he cautioned, “We will need to see further evidence to have confidence that inflation is moving toward our goal.”The wonderful thing about the Fed’s interest rate tightening so far is that it has not set off a sharp increase in unemployment. The latest figures show the unemployment rate was a mere 3.7 percent in November. On a historical basis, that’s an extraordinarily low rate, and one that has been associated with a robust economy, not a weak one. Economic growth accelerated in the three months through September (the third quarter), with gross domestic product climbing at a 4.9 percent annual rate. That doesn’t look at all like the recession that had been widely anticipated a year ago.To the contrary, with indicators of robust economic growth like these, it’s no wonder that longer-term interest rates in the bond market have been dropping in anticipation of Fed rate cuts. The federal funds futures market on Wednesday forecast federal funds cuts beginning in March. By the end of 2024, the futures market expected the federal funds rate to fall to below 4 percent.But on Wednesday, the Fed forecast a slower and more modest decline, bringing the rate to about 4.6 percent.Too Soon to RelaxSeveral other indicators are less positive than the markets have been. The pattern of Treasury rates known as the yield curve has been predicting a recession since Nov. 8, 2022. Short-term rates — specifically, for three-month Treasuries — are higher than those of longer duration — particularly, for 10-year Treasuries. In financial jargon, this is an “inverted yield curve,” and it often forecasts a recession.Another well-tested economic indicator has been flashing recession warnings, too. The Leading Economic Indicators, an index formulated by the Conference Board, an independent business think tank, is “signaling recession in the near term,” Justyna Zabinska-La Monica, a senior manager at the Conference Board, said in a statement.The consensus of economists measured in independent surveys by Bloomberg and Blue Chip Economic Indicators no longer forecasts a recession in the next 12 months — reversing the view that prevailed earlier this year. But more than 30 percent of economists in the Bloomberg survey and fully 47 percent of those in the Blue Chip Economic Indicators disagree, and take the view that a recession in the next year will, in fact, happen.While economic growth, as measured by gross domestic product, has been surging, early data show that it is slowing markedly, as the bite of high interest rates gradually does its damage to consumers, small businesses, the housing market and more.Over the last two years, fiscal stimulus from residual pandemic aid and from deficit spending has countered the restrictive efforts of monetary policy. Consumers have been spending resolutely at stores and restaurants, helping to stave off an economic slowdown.Even so, a parallel measurement of economic growth — gross domestic income — has been running at a much lower rate than G.D.P. over the last year. Gross domestic income has sometimes been more reliable over the short term in measuring slowdowns. Ultimately, the two measures will be reconciled, but in which direction won’t be known for months.The MarketsThe stock and bond markets are more than eager for an end to monetary belt-tightening.Already, the U.S. stock market has fought its way upward this year and is nearly back to its peak of January 2022. And after the worst year in modern times for bonds in 2022, market returns for the year are now positive for the investment-grade bond funds — tracking the benchmark Bloomberg U.S. Aggregate Bond Index — that are part of core investment portfolios.But based on corporate profits and revenues, prices are stretched for U.S. stocks, and bond market yields reflect a consensus view that a soft landing for the economy is a near-certain thing.Those market movements may be fully justified. But they imply a near-perfect, Goldilocks economy: Inflation will keep declining, enabling the Fed to cut interest rates early enough to prevent an economic calamity.But excessive market exuberance itself could upend this outcome. Mr. Powell has spoken frequently of the tightening and loosening of financial conditions in the economy, which are partly determined by the level and direction of the stock and bond markets. Too big a rally, taking place too early, could induce the Fed to delay rate cuts.All of this will have a bearing on the elections of 2024. Prosperity tends to favor incumbents. Recessions tend to favor challengers. It’s too early to make a sure bet.Without certain knowledge, the best most investors can do is to be positioned for all eventualities. That means staying diversified, with broad holdings of stocks and bonds. Hang in, and hope for the best. More

    • 100 Shares149 Views

      in Elections

      This Economy Has Bigger Problems Than ‘Bad Vibes’

      by

      The economy is growing. Wages are up. Unemployment is low. Income inequality is narrowing. The fearmongering about inflation proved to be, well, wrong. According to many economy-watchers, Americans should be sending the Biden administration a gift basket full of positive vibes — and votes.Instead, consumer confidence polling paints a different picture. A recent Times/Siena poll found that only 2 percent of registered voters said economic conditions are “excellent,” and only a further 16 percent said they were “good.” While economic indicators suggest that the economy is healthy and growing, the American public doesn’t feel that way. Why the perception gap?One popular theory is that media narratives have duped Americans into believing that they’re having a rough time, when, in fact, they’re doing fine. Kyla Scanlon coined “vibe-cession” last year to describe this gap between perception and economic indicators. Since then, a story has emerged about consumer confidence: that poor perception and political polarization are mostly to blame. Brian Beutler, who writes the newsletter “Off Message,” calls out social media and misinformation for reinforcing the “bad economy” belief. Claudia Sahm, a former Federal Reserve economist, wrote that a “toxic brew” of human bias for negative information and the attention economy leads to consumer pessimism.The Biden administration’s messaging about the strength of the economy will shape President Biden’s presidential campaign. If Americans’ negative vibes about the economy persist, Donald Trump will surely bludgeon Biden with a line of attack that he relishes delivering. One of Trump’s favorite claims is that he is a successful businessman who ran a strong economy as president. Too few people believe that Trump, the G.O.P.’s favored candidate, will go to jail between now and the 2024 election. And so it should worry Biden that, according to that Times/Siena poll, a majority of likely voters trust Trump more than Biden on the economy.Why aren’t more voters giving President Biden credit for his strong economy?The bad vibes explanation is sound on the indicators, but that story doesn’t think too highly of Americans. It does not acknowledge voters’ dissatisfaction. It also does not offer a way forward. What do you do about bad vibes, exactly? Hire an exorcist?Looking at the economy through more than macroeconomic indicators could tell us a more compelling, empowering story. What if people are not being manipulated by the media, confused about the fundamentals or biased against Democrats? What we know about historical changes to how the economy works and for whom it works might tell a different story with more potential for the future.One such story considers what we consume and how much harder (and expensive) it is to procure it. A lot of our consumption is about meeting our basic needs. Housing, food, and energy come to mind. The economic fundamentals on these may be trending positively, but the bad vibes narrative undersells how miserable that part of the economy can feel.People are struggling with mortgage interest rates, housing shortages and pricey grocery bills. They’re also consuming to make their lives work: on expensive, hard-to-manage child care, health care and convenience spending — things like restaurants, travel, delivery services, and on-demand help — which are necessary for balancing work and life demands. Even when those services are affordable, they are full of friction. That is a nice way of saying the consumer experience sucks. It is hard to schedule things, hard to get customer service, hard to judge the quality of what you are buying, and hard to get amends when an experience goes bad. There is a reason industry analysts have reported that customer brand loyalty is low and customer rage is high.In 2021, the American Rescue Plan created a temporary social safety net for millions of Americans that may have changed how they feel about their spending. For younger Americans, massive stimulus was a taste of the Great Society investment that benefited their grandparents and great-grandparents. Child care subsidies, direct cash transfers, food supplements, eviction moratoriums, and flexible work from home arrangements temporarily lifted many low-income people out of poverty. Those provisions also exposed many working and middle class workers to the difference that economic policy could make — for the better — in their lives.Then, fearing inflationary pressures on the economy, Congress let the American Rescue Plan’s most powerful investments, and therefore the most substantial government support for social reproduction in a generation, end. But social reproduction — the caretaking of people, relationships and systems that make our society work — still had to be done. Reallocating your spending from child care to student loan payments, for example, might be feasible, but it is not particularly enjoyable. That assumes one can find accessible child care or an in-network doctor or apartment. When stimulus funding ended, a lot of services people rely on became harder to find and afford.When people talk about the work that makes the economy possible, they often think first and most about child care. There is a good reason for that. Child care is necessary work. It is often unpaid work (when done by mothers) or underpaid work (when done by child care workers). The American Rescue Plan sent $39 billion to states, with the aim of stabilizing child care centers. After some of that funding expired in September, the problems typical of our country’s child care shortage re-emerged. Depending on where one lives, child care centers’ capacity may not have returned to prepandemic levels, producing a lot of anxiety and wait-lists for families. As one of my colleagues recently put it, anyone who thinks he just has bad vibes hasn’t tried to find summer day care for young children.Then there is the rest of the hidden labor that has to happen so people can go to work, that is so often invisible and has historically been the domain of women: caring for a household and aging relatives, receiving the plumber or delivery truck and, of course, having the time (and money) to make meals, manage doctors appointments, chauffeur kids to after-school activities and clean the house.For the most part, the industries that support that kind of invisible labor are more difficult to find, harder to obtain and more expensive to buy than they were four years ago. Those industries also gained a lot of not-so-enjoyable friction. Industry surveys suggest that customer service has gotten worse and consumers are angry about it. That coarsening of consumerism affects millions, but women, in particular, pay a price due to the outsize role they play in managing hidden labor.Jessica Calarco, a sociologist at the University of Wisconsin, calls the way our society relies on families to independently support social reproduction a “D.I.Y. society.” Research demonstrates repeatedly that women, especially, are sacrificing to balance paid work with all that D.I.Y. labor. Healthy economic indicators, like low unemployment, also put the squeeze on women by raising the price and increasing the difficulty of hiring a little help.The bad vibes story emphasizes that lower-income workers have benefited the most from the growing economy. It is true. Over the past four years, at the macro level, workers at the bottom of the income distribution made greater gains than those at the top. That wage compression means some good things, for example: People without college degrees are benefiting from a strong labor market. The female-dominated child care field is a good example. Acknowledging that child care is skilled labor empowers the workers to demand better working conditions.However, those positives also present a challenge. Using child care workers as an example again, as their wages stagnated and their skills upgraded, many of them left for better paying jobs. That is the case for a lot of the jobs that do the vital social reproduction work in our economy. There are now fewer people to do the low-paid, low status work than there was before the Covid-19 pandemic. Illness pushed some workers out. Others left for better economic opportunities. The social reproduction work needs to be done but there are fewer workers able or willing to do it.Low unemployment means more Americans are working. It also means more people are experiencing our social reproduction crisis firsthand. This has long been a reality for female workers. Our crisis of who is supposed to do all the undervalued labor that underpins economic life has pushed many women out of the work force, reduced their participation, and generally made work more stressful. Men now take on moderately more responsibility for household tasks. With that shift, the problem of balancing care work and paid work has become urgent for both men and women. Even as millions of Americans are earning more, they face stiff competition from high-income earners for a smaller pool of services — including schools, health care, home maintenance and retail services — to make it all work.In short, people may have more money. But it has become harder to buy the services they need and more expensive to buy the goods that they want. The very wealthy can spend their way out of that bind, simply by paying more for housekeeping and grocery delivery and nannies. But everyone else needs some sort of partnership with the government to make the act of working not just affordable, but accessible. The Biden administration has not solved that bigger crisis (neither did the Trump administration). Whether Americans are blaming the right administration for their woes, their economic lives legitimately feel tougher even as they work more and earn more money.Bad economic storytelling tells millions of Americans in an election year that they only think that they are struggling financially. Good economic storytelling would figure out how to account for their experiences and imagine a better future. People need child care, and dentists, and affordable housing, and safe transportation, and accessible education. Telling them that to instead enjoy the fact that they can buy a Tesla is a fundamental misunderstanding of what economic policy is supposed to do, which is to make people’s lives better.Tressie McMillan Cottom (@tressiemcphd) became a New York Times Opinion columnist in 2022. She is an associate professor at the University of North Carolina at Chapel Hill School of Information and Library Science, the author of “Thick: And Other Essays” and a 2020 MacArthur fellow.Source images by Ivan Bajic and kutaytanir/Getty ImagesThe 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, Instagram, TikTok, X and Threads. More

    • 88 Shares189 Views

      in Elections

      Can an ‘Anarcho-Capitalist’ President Save Argentina’s Economy?

      by

      Carlos Prieto, Rachelle Bonja and M.J. Davis Lin and Marion Lozano and Listen and follow The DailyApple Podcasts | Spotify | Amazon MusicWarning: this episode contains strong language.With Argentina again in the midst of an economic crisis, Argentine voters turned to Javier Milei, a far-right libertarian who has drawn comparisons to Donald J. Trump.Jack Nicas, who covers South America for The New York Times, discusses Argentina’s incoming president, and his radical plan to remake the country’s economy.On today’s episodeJack Nicas, the Brazil bureau chief for The New York Times.In his first decree as president of Argentina, Javier Milei cut the number of government ministries from 18 to nine.Sarah Pabst for The New York TimesBackground readingArgentina’s incoming president is a libertarian economist whose brash style and embrace of conspiracy theories has parallels with those of Donald J. Trump.Argentina braces itself for an “anarcho-capitalist” in charge.There are a lot of ways to listen to The Daily. Here’s how.We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.Jack Nicas More