ReportWire

Tag: Economics

  • Report: Slips in employer optimism tied to Trump tariffs

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    BOSTON — The state’s economy may be on solid footing but employers are becoming increasingly pessimistic about the impact of President Donald Trump’s tariffs on their bottom lines, according to a new report.

    The latest Business Confidence Index, which is compiled by the pro-business group Associated Industries of Massachusetts, shows overall enthusiasm among employers “grew darker” after slipping 1.4 points to 47.5 on a 100-point scale in September.


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    By Christian M. Wade | Statehouse Reporter

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  • Virginia finance professor on the hidden, long-term costs of a government shutdown – WTOP News

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    A University of Virginia professor uncovers the hidden, long-term economic impacts that come with a government shutdown.

    There are obvious economic impacts that come with a government shutdown. Everything from local businesses to the travel industry face uncertainty amid the lapse in funding.

    But what about the less obvious, long-term economic impacts? That’s what Christoph Herpfer, assistant professor of finance at University of Virginia’s Darden School of Business, is trying to make clear in a recent report.

    “Underneath the surface, there’s a much bigger thing going on that costs the government and the taxpayer, by extension, a lot more money in the long run than these initial, immediate consequences,” Herpfer said.

    The government often relies on federal employees being intrinsically motivated by the belief a job with the federal government is stable and predictable, according to Herpfer.

    “The shutdown kind of destroys both of these ideas,” Herpfer said. “What we find is that after the shutdown is over, the employees go back to their desks, they do their job, and they fire up LinkedIn, and look for a new job. And within about six to 12 months, you have a massive outflow of talent and human capital out of the government.”

    According to the report, Herpfer found the likelihood that furloughed employees leave their job within one year of the shutdown is one-third higher than employees who were not furloughed. That’s something, he said, that translates into tens of thousands of highly qualified workers leaving the government for the private sector.

    Herpfer was also able to quantify the shock to federal employees’ morale, finding the shock felt by workers furloughed during a shutdown is equivalent to as if their salaries were cut by 10%.

    He said these were the same underlying mechanisms in place during the federal shutdown in 2018. But, this time, our region is especially vulnerable.

    Government cutbacks from earlier this year eliminated 18,000 federal jobs. In addition to that, the D.C. region has seen a recent decline of 8,500 jobs in professional and business services and a sluggish tourism sector.

    But, Herpfer said, it’s possible federal cuts from earlier this year could actually mean we see less furloughed employees leave after the shutdown ends.

    “Because everybody who was on the fence, everybody who was kind of unhappy in the first place, they took the buyout way back in April and May. So maybe the people who are left are the true believers that really want to stick it out, and this time, there won’t be this exodus of people,” Herpfer said.

    “On the other hand, it could be that a lot of these people are on the edge already, and they’re kind of tired from the actions of the last year, which could mean that this could be the straw that breaks the camel’s back, and even more people leave the government,” he added.

    Herpfer emphasized that at the end of the day, the government shutdown is a bipartisan issue. He said even if you consider the government bloated, the way to cut down is not a shutdown or pushing employees out.

    “These permanent federal employees will be replaced by employees in the so-called ‘shadow government’ by outside contractors,” Herpfer said. “And what we find is that the cost for these outside contractors actually is two-and-a-half times as high as the savings and payroll from the federal employees who quit.”

    Herpfer aims for his research to support bipartisan efforts running through both the House and the Senate to replace shutdowns with a mechanism that will automatically continue funding the government if leaders cannot come to a stopgap resolution.

    “While this is often played up a lot by the media as a short-term story, the long-term consequences are hidden, and they’re much worse than the short-term consequences,” Herpfer said. “We all benefit from an efficient and competent administration.”

    Get breaking news and daily headlines delivered to your email inbox by signing up here.

    © 2025 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Grace Newton

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  • Tariffs are starting to crush America’s small liquor businesses

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    The alcohol industry recently dodged an attempt to smuggle a neo-Prohibitionist agenda into the U.S. Dietary Guidelines revisions. While the industry was able to breathe a sigh of relief thanks to this rule, its reprieve has been short-lived: President Donald Trump’s tariff policies have started to hammer the industry once again.

    On August 1, a 15 percent tariff went into effect on most European goods imported to America. Despite some initial hope that alcohol might be spared as part of a Trump-E.U. trade deal, the tariff remains in effect for booze, and it’s U.S. small businesses that are bearing some of the highest costs.

    During the first Trump administration, alcohol producers were hit hard by Trump’s tariff policies, facing price increases on beer cans (from the aluminum tariffs) as well as painful retaliatory tariffs from other countries that targeted American alcohol. So far, the second Trump presidency appears to promise more of the same.  

    With the tariffs now officially in effect, small- and medium-sized wineries in California are reporting price increases on key input materials, including glass, corks, and barrels. The day after the tariffs took effect, Dresser Winery in Paso Robles, California, was informed by its Portugal-based cork maker that cork prices would increase by 15 percent—the manufacturer offered to pay 2 percent of the cost increase, leaving the winery to cover the remaining 13 percent.

    Dresser Winery also sources its glass abroad, either from China or Mexico, and its barrels come from France or Hungary. As the winery’s owner Kory Burke pointed out to The Columbian, simply swapping these goods for American-made products is far from simple. American glass bottles are expensive and harder to find, while American-made oak barrels would noticeably alter the flavor profile of the wine. Another California winery reported that the tariffs will raise their production costs by 50 cents per bottle.

    The impact on the alcohol industry started being felt even before the tariffs officially went into effect, with prominent bourbon brands such as Brown-Forman (owner of Jack Daniel’s and Woodford Reserve), Wild Turkey, and Bulleit all experiencing drops in bourbon sales over the summer in anticipation of the tariffs, partly due to export markets becoming more politically fraught. And none of this even includes the decision by Canada earlier this year to yank all U.S. alcohol from the shelves of its municipal-run liquor stores, which resulted in devastating sales declines for U.S. booze in Canada. (In 2024, Canada was the second-largest export market for American spirits.)

    There are also lesser-known effects that are starting to have an impact. As Kevin D. Williamson noted recently in The Washington Post, the American three-tier system of alcohol distribution presents particular challenges for the industry when it comes to weathering tariffs. American alcohol distributors—who operate as a government-mandated middleman between producers and consumers—often derive higher profit margins on wines coming from countries like France and Italy.

    As Williamson puts it, these imported wines help “sustain the distribution ecosystem that lower-margin U.S. producers rely on to get their products to market,” which means that “European imports don’t just compete with U.S.-made wines—they effectively subsidize their distribution.” Williamson goes on to quote an alcohol distributor who derives 75 percent of its profits from European wine. “We need French, Spanish and Italian wines to make our business work,” said Harry Root, co-founder of the South Carolina and Alabama distributor Grassroots Wine. “Remove any piece of the puzzle, and the whole thing doesn’t work.”

    The cost of tariffs on the alcohol industry is no longer merely speculative. “It has real impacts,” Burke said. “We’ve thought deeply about selling our property. We’ve thought deeply about…charging double our price for our bottle.”

    As has been the theme of Trump’s trade war, in the end, it’s American businesses and consumers that suffer.

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    C. Jarrett Dieterle

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  • Trump’s tariffs have already hurt the economy—and the pain is only beginning

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    The U.S. economy is already feeling the effects of Trump’s tariffs, and the Organization for Economic Cooperation and Development (OECD) projects that things could get worse.

    The OECD’s biannual interim economic outlook, published on Tuesday, forecasts U.S. growth will fall by a full percentage point from its 2024 rate. While this might not sound like much, this will translate to Americans missing out on trillions of dollars of goods and services by 2035 if this decrease in growth persists.

    From 2010 to 2019, American gross domestic product (GDP) grew by an average of 2.4 percent per year. In 2024, it grew by 2.8 percent. Now, the OECD projects that the economy will grow by only 1.8 percent in 2025 and 1.5 percent in 2026, “owing to higher tariff rates [and] moderating net immigration,” among other factors. Assuming that yearly GDP growth neither rebounds nor falls further but persists at 1.8 percent, the U.S. economy will be $2.2 trillion smaller in 2035 than it would be had President Donald Trump not adopted his protectionist policies and growth remained at 2.4 percent.

    Even though the OECD’s growth projections show the long-run macroeconomic damage of Trump’s tariffs, the American economy has remained relatively strong since he took office. The stock market is at an all-time high while inflation has been about the same as that experienced during the last year of the Biden administration: The average monthly inflation from January 2024 to August 2024, as measured by the consumer price index (CPI), was 0.2 percent. From January 2025 to August 2025, monthly CPI growth was not much higher: 0.225 percent. Meanwhile, the average monthly increase in the producer price index (PPI), which measures changes in expenses borne by American businesses, was 36 percent lower compared to the same time last year.

    The Bureau of Labor Statistics (BLS) explains that “imports are excluded from PPI.” The experimental BLS index, which incorporates imports, tells a story similar to regular PPI: this index experienced 38 percent lower inflation from January 2025 to July 2025 than it did during the same period a year ago.

    Relatively stable consumer price inflation and lower producer price inflation—excluding and including imports—under Trump are surprising. After all, the president has more than tripled the average effective tariff rate to 11.6 percent on approximately $2.2 trillion worth of imports, according to the Tax Foundation. Therefore, all things being equal, CPI and PPI should be elevated. So, why aren’t they? The answer lies in the delayed implementation of Trump’s tariffs: Although “Liberation Day” was April 2, the “reciprocal tariffs” announced then were postponed for months, finally taking effect on August 7, meaning “the full effects of tariff increases have yet to be felt,” as the OECD explains.

    While most Americans have not yet felt the tariffs’ full effects, businesses have started to. An August survey administered by the Dallas Federal Reserve found that 60 percent and 70 percent of Texas retailers and manufacturers, respectively, said that Trump’s tariffs were negatively affecting their businesses. Earlier this month, The New York Times reported that Section 232 tariffs on imported steel and aluminum have cost John Deere “$300 million so far, with nearly another $300 million expected by the end of the year.” The company has already laid off “238 employees across factories in Illinois and Iowa.” While anecdotal, John Deere’s struggles are reflected in the 48 percent lower growth in total nonfarm employment from January 2025 to August 2025 (598,000 jobs added) compared to those months last year (1.1 million jobs added).

    Trump can reverse course at any time by rolling back the Section 232 tariffs and reciprocal tariffs. Even if Trump insists on hobbling the economy with his pointless trade war, Americans could soon enjoy some relief when the Supreme Court convenes in November to hear arguments about the constitutionality of his “Liberation Day” tariffs.

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    Jack Nicastro

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  • Federal Reserve to announce interest rate cut amid economic slowdown, pressure from President Trump

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    Federal Reserve to announce interest rate cut amid economic slowdown, pressure from President Trump

    The Federal Reserve is set to announce an interest rate cut this week in response to a slowing economy, making clear it is not surrendering to President Donald Trump’s demands.

    Updated: 7:42 AM PDT Sep 14, 2025

    Editorial Standards

    The Federal Reserve is expected to announce a long-awaited interest rate cut this week, responding to a slowing economy as opposed to yielding to President Donald Trump’s demands. Recent data shows hiring is slowing and unemployment is ticking up, which would normally call for an interest rate cut. Lower interest rates make borrowing money for things like cars and credit cards cheaper. At the same time, inflation remains stubbornly high, which is usually solved by keeping interest rates where they are and leaving costly prices up.With a big decision facing the Fed, added pressure from President Trump isn’t helping. Experts say his repeated calls for the Fed to lower interest rates are damaging the agency’s independence and credibility, spooking investors and the market. “If the Fed is politicized and they’re acting based upon political pressures rather than accurate economic data, that’s going to send messages throughout the economy that maybe what they’re doing isn’t really good for the economy, and maybe it doesn’t come from a solid place of evidence,” political analyst Todd Belt said. “It will introduce even more uncertainty in the economy, and uncertainty is the enemy of business planning.”President Trump’s tariffs have also injected lots of uncertainty in the market, and economists say that, in turn, will further drive up inflation.In a further escalation involving the president and the Fed, last week, a federal judge blocked Trump’s unprecedented attempt to fire Federal Reserve Governor Lisa Cook, alleging mortgage fraud. Now, the administration is appealing and is pushing the courts for an emergency ruling before the Fed’s big interest rate decision this week. But a big twist could undermine the administration’s case, as the Associated Press reports that Cook previously referred to the property in question as a “vacation home,” which would contradict the White House’s accusations of fraud.Watch the latest on the Federal Reserve:

    The Federal Reserve is expected to announce a long-awaited interest rate cut this week, responding to a slowing economy as opposed to yielding to President Donald Trump’s demands.

    Recent data shows hiring is slowing and unemployment is ticking up, which would normally call for an interest rate cut. Lower interest rates make borrowing money for things like cars and credit cards cheaper.

    At the same time, inflation remains stubbornly high, which is usually solved by keeping interest rates where they are and leaving costly prices up.

    With a big decision facing the Fed, added pressure from President Trump isn’t helping. Experts say his repeated calls for the Fed to lower interest rates are damaging the agency’s independence and credibility, spooking investors and the market.

    “If the Fed is politicized and they’re acting based upon political pressures rather than accurate economic data, that’s going to send messages throughout the economy that maybe what they’re doing isn’t really good for the economy, and maybe it doesn’t come from a solid place of evidence,” political analyst Todd Belt said. “It will introduce even more uncertainty in the economy, and uncertainty is the enemy of business planning.”

    President Trump’s tariffs have also injected lots of uncertainty in the market, and economists say that, in turn, will further drive up inflation.

    In a further escalation involving the president and the Fed, last week, a federal judge blocked Trump’s unprecedented attempt to fire Federal Reserve Governor Lisa Cook, alleging mortgage fraud.

    Now, the administration is appealing and is pushing the courts for an emergency ruling before the Fed’s big interest rate decision this week. But a big twist could undermine the administration’s case, as the Associated Press reports that Cook previously referred to the property in question as a “vacation home,” which would contradict the White House’s accusations of fraud.

    Watch the latest on the Federal Reserve:

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  • Huge immigration bust

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    Bust at an E.V. battery plant: “Immigration officials arrested nearly 500 workers, most of them South Korean citizens, at the construction site of an electric vehicle battery plant in Georgia on Thursday,” reports The New York Times. The Hyundai plant raid was the largest single-site immigration bust in recent history. The people arrested were accused of belonging to one of three categories: They’d illegally crossed in the first place, or they’d received a visa waiver that prohibited working, or they’d overstayed a visa. Most of them were classified as subcontractors, and some of them were working to complete construction of the plant.

    “The unfinished battery plant represented the kind of strategic investment the United States has welcomed from South Korea in recent years—one that promised to create manufacturing jobs and build up a growing industry,” adds the Times. Georgia’s governor, who has visited South Korea twice, has spent a lot of time courting investment, luring semiconductor material, solar panel, and battery manufacturers to his state.

    “Seoul-based Hyundai, whose U.S. sales have hit record monthly highs for nearly a year straight, has pledged $26 billion in fresh American investments since Trump took office earlier this year—including $5 billion after South Korea’s leader visited the White House early last week,” reports The Wall Street Journal.

    Given Trump’s purported manufacturing revitalization agenda, it will be interesting to see whether this plant gets completed, and on what timeline, following these busts.

    Killing of woman on light rail in Charlotte: The common refrain on the right goes something like this: The left-leaning mainstream media fails to sufficiently cover crimes in which the victim is sympathetic and the perpetrator has a mile-long rap sheet. The killing of Ukrainian woman Iryna Zarutska provides a perfect example.

    Zarutska, a 23-year-old blonde woman who fled her native Ukraine due to the war, was riding the light rail in Charlotte, North Carolina, minding her own business late last month. Decarlos Williams, a 35-year-old black man with many arrests under his belt and schizophrenia, unprompted and seemingly out of nowhere, stabbed her.

    Elon Musk has signal-boosted this:

    “This is a tragic situation that sheds light on problems with society safety nets related to mental healthcare and the systems that should be in place,” said the city’s mayor in a statement released after the killing. “As we come to understand what happened and why, we must look at the entire situation. While I do not know the specifics of the man’s medical record, what I have come to understand is that he has long struggled with mental health and appears to have suffered a crisis.”

    The kicker: “I am not villainizing those who struggle with their mental health or those who are unhoused. Mental health disease is just that – a disease like any other than needs to be treated with the same compassion, diligence and commitment as cancer or heart disease. Our community must work to address the underlying issue of access to mental healthcare. Also, those who are unhoused are more frequently the victim of crimes and not the perpetrators. Too many people who are on the street need a safe place to sleep and wrap around services to lift them up.”

    Looked at one way, it’s a local crime story, and not every local crime story rises to the news of mainstream media coverage. Looked at another, it’s a pattern: Someone who is a repeat offender, who should probably have been locked up, is able to kill an innocent person, and the Democratic mayor gives an awful lot of airtime to the plight of the perpetrator. We’ve seen this one play out again and again in blue cities over the last few years.

    Now it’s becoming a “Republicans pounce” story—thus warranting coverage:


    Scenes from New York: “Lawmakers made two pledges in advocating for a law to enforce the city’s longstanding prohibition on short-term rentals, which finally went into effect in 2023,” reports The Wall Street Journal. “The first was that a crackdown would remove noisy, disruptive tourists from residential buildings that had turned into de facto hotels. The second was that curtailing Airbnb and other short-term rental companies’ operations would protect the city’s tight housing supply.” But that second one never came to fruition: “Apartment rents are at all-time highs, while the vacancy rate is next to nothing. The new legislation removed tens of thousands of short-term rentals from New York City apartment buildings, but it is unclear how many of those units are now occupied by year-round tenants.”


    QUICK HITS

    • French Prime Minister François Bayrou has put forward an “austerity budget proposal, designed to confront a severe deficit and a worsening national debt, in part by freezing welfare payments at their current levels,” per The New York Times. His reward? Most likely: a vote of no confidence that gives him the boot.
    • “Partial results of the Buenos Aires legislative elections: Fuerza Patria with 46.93% of the votes, while La Libertad Avanza achieved 33.85%,” reports La Nación (translated from Spanish). For those keeping track: That’s a victory for Perónism and a huge defeat for President Javier Milei’s party (La Libertad). And if Milei can’t get more supporters into the legislature, he’s going to be severely hamstrung in what he can do.
    • Florida’s New College has been the target of an ideological takeover by Republican Gov. Ron DeSantis (and henchmen like Chris Rufo). Now some disgruntled former administration insiders there are trying to privatize the school, which sounds like a win for the taxpayers of Florida.
    • Niiiice:

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    Liz Wolfe

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  • MAGAnomics Isn’t Working

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    A dismal jobs report affirms earlier warnings about the economic impact of Donald Trump’s tariffs, immigration restrictions, and DOGE-led firings.

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    John Cassidy

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  • How civilizations lose their spark—and how we might keep ours

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    The feeling will be familiar to many who have visited the great cities of history: I had come to Athens for the first time and made a pilgrimage to its democratic Assembly, Plato’s Academy, and Aristotle’s Lyceum. And it left me with a sense of profound sadness. Here were the scenes of some of the most extraordinary moments in human history, and all that was left was rubble, garbage, and dog waste. Instead of bustling creativity, there was silence, interrupted only by the odd intoxicated passerby.

    To be sure, I also experienced spectacular beauty in Athens, such as the grand monuments on the Acropolis. But even that was a museum to bygone glory. This used to be the place around which the world revolved, and now it’s a collection of patched-together columns, stone blocks and shards with plaques telling us that it used to be impressive.

    This must be what Percy Shelley, a great admirer of ancient Greece, reflected upon when he wrote about the crumbled monument to Ozymandias, king of kings: “‘Look on my works, ye Mighty, and despair!’ / Nothing beside remains. Round the decay / Of that colossal wreck, boundless and bare / The lone and level sands stretch far away.”

    This encounter with the transience of great civilizations set my mind racing. What made it possible for them to rise so spectacularly, and why did they decline so thoroughly? It forced me to consider whether travelers will one day visit our proud landmarks and plazas and think about how our civilization lost its way and became so sluggish and stationary. 

     

    This is a precarious time to write about history’s golden ages. Ours is an era of authoritarian and populist revival, with savage dictators trying to extinguish neighbouring democracies, when the fear of inevitable decline seems more prevalent than belief in progress. 

    The American legal scholar Harold Berman compared his history of the rise of Western law to a drowning man who sees his whole life flash before him, perhaps in an unconscious effort to find something within his own experiences to help him escape his impending doom. We are not yet drowning, but drawing on historical human experience can be a useful way to avoid ending up in a bad situation. It might even help us to keep our vessels seaworthy. 

    It is said that we should study history to avoid repeating its mistakes, and that is all very well. But our ancestors were not just capable of mistakes. Human history is a long list of depravations and horrors, but it is also the source of the knowledge, institutions, and technologies that in the last few centuries have set most of humanity free from such horrors for the first time. The historical record shows what mankind is capable of, in terms of exploration, imagination, and innovation. This in itself is an important reason to study it, to broaden our mental horizon of what is possible. 

    In my new book, Peak Human: What We Can Learn from the Rise and Fall of Golden Ages, I explore seven of the world’s great civilizations: ancient Athens, the Roman Republic and early Roman Empire, the Abbasid Caliphate, Song China, Renaissance Italy, the Dutch Republic, and the Anglosphere. Each of them exemplifies what I think of as a golden age: a period with a large number of innovations that revolutionize many fields and sectors in a short period of time. 

    A golden age is associated with a culture of optimism, which encourages people to explore new knowledge, experiment with new methods and technologies, and exchange the results with others. Its characteristics are cultural creativity, scientific discoveries, technological achievements, and economic growth that stand out compared to what came before and after and compared to other contemporary cultures. Its result is a high average standard of living, which is usually the envy of others and often also of its heirs. 

    Peak Human could have been a much longer book, exploring many other cultures, because golden ages are dependent not on geography, ethnicity, or religion but on what we make of these circumstances. These cultures just happened to excel in the era in which they, for some reason or another, began to interpret or emphasize a particular part of their beliefs and traditions to make them more open to surprises—unconventional ideas and methods imported by merchants and migrants, dreamed up by eccentrics, or stumbled upon by someone fortunate. 

    There are certain important preconditions for this progress. The basic raw materials are a wide variety of ideas and methods to learn from and to combine in new ways. It therefore takes a certain population density to create progress, and urban conglomerations are often particularly creative. Being open to the contributions of other civilizations is the quickest way of making use of more brains, which is why these golden ages often appeared at the crossroads of different cultures and in every instance benefited greatly from the inspiration brought about by international trade, travel, and migration. They were often maritime cultures, always on the lookout for new discoveries. Distance is the “number one enemy of civilization,” as the French historian Fernand Braudel understood so well. 

    To make use of these raw materials, it takes a relatively inclusive society. Citizens have to be free to experiment and innovate, without being subjected to the whims of feudal lords, centralized governments, or ravaging armies. This takes peace, rule of law, and secure property rights. Most importantly, there has to be an absence of orthodoxies imposed from the top about what to believe, think, and say; how to live; and what to do. If we limit the realm of the acceptable to what we already know and are comfortable with, we will be stuck with it, and we will deserve the stagnation we get. If we want more knowledge, wealth, and technological capacity, we have to cut misfits and troublemakers some slack. 

    Institutions that are built for discovery, innovation, and adaptation have profound effects on science, culture, economy, and warfare. It is not easy to sustain such institutions for a long time. The most depressing aspect of studying golden ages is that they don’t last. You don’t have to wait 2,300 years to go back to Athens. There are many stories about people visiting centers of progress just a few decades later and finding that it’s all over. It’s the same place, the same traditions, and the same people, but that irreplaceable spark has disappeared. 

    The California historian Jack Goldstone calls these episodes of temporary growth “efflorescences.” That is really another word for an anti-crisis: Just as a crisis is a sudden and unexpected downturn in indicators of human well-being, an efflorescence is a sharp, unexpected upturn. 

    Goldstone argues that most societies have experienced such efflorescences, and that these usually set new patterns of thought, political organization, and economic life for many generations. This is a corrective to the common notion that humankind has a long history of stagnation and then suddenly experiences progress. History is full of growth and progress; it is just that they were always periodic and efflorescent rather than self-sustaining and accelerating. In other words: They don’t last.

    Civilizations in every era have tried to break away from the shackles of oppression and scarcity, but increasingly they faced opposite forces, which sooner or later dragged them back to Earth. Elites who have benefited from innovation want to kick away the ladder behind them; groups threatened by change try to fossilize culture into an orthodoxy; and aggressive neighbours, attracted to the wealth of nearby achievers, try to kill the goose to steal its golden eggs. 

    Why would intellectual, economic, and political elites accept a system that keeps delivering surprises and innovations? Yes, it might provide their society with more resources, but at the risk of upending a status quo that made them powerful to begin with. Often such institutions came about as a result of revolutionary upheaval or emerged unintentionally because they happened to provide important solutions in difficult situations or at a time of fierce competition against rivals. 

    But sooner or later, most elites regain their composure and begin to reimpose orthodoxies and stamp out the potential for unpredictability. The great economic historian Joel Mokyr calls this Cardwell’s Law, after the technology historian D. S. L. Cardwell, who observed that most societies remain technologically creative for only a short period. 

    The perceived self-interest of incumbents who have much to lose from change goes a long way to explaining why episodes of creativity and growth are terminated. But such groups are always there, always eager to stop the future in its tracks. Why do their reactions prevail in some places and moments but not in others? Many factors are at play, but there is one psychological factor that reinforces all of them. 

    “What is civilization’s worst enemy?” asked the art historian Kenneth Clark. He answered: “First of all fear—fear of war, fear of invasion, fear of plague and famine, that make it simply not worthwhile constructing things, or planting trees or even planting next year’s crop. And fear of the supernatural, which means that you daren’t question anything or change anything.”

     

    We humans have two basic settings: We are traders, and we are tribalists. Early humans prospered (relatively) because they ventured out to explore, experiment, and exchange, to discover new places, partners, and knowledge. But sometimes they only survived their adventures because they were also acutely sensitive to risks and instantly reacted to a potential threat by fighting or fleeing back to the familiar, their cave and their tribe. We need both the adventurous and the risk-sensitive aspects of our personality. But since Homo sapiens emerged over hundreds of thousands of years in a world more dangerous than today’s, our “spider sense” is over-sensitive to threats: It often misfires and is easily manipulated by those who want to divide and conquer. 

    As I documented in my book Open: The Story of Human Progress, this anxious aspect has remained a central part of our nature, even after we left the savannah for a safer world. When we feel threatened as a community by, say, neighbouring armies, pandemics, or recessions, there is often a societal fight-or-flight instinct, causing us to hunt for scapegoats and flee behind physical and intellectual walls, even though complex threats might call for learning and creativity rather than simply avoidance or attack. 

    Again and again, we see civilizations prosper when they embrace trade and experiments but decline when they lose cultural self-confidence. When under threat, we often seek stability and predictability, shutting out that which is different and unpredictable. Unfortunately, this often makes the fear of disaster self-fulfilling, since those barriers limit access to other possibilities and restrict the adaptation and innovation that could have helped us deal with the threat. The problem with paralyzing fear is that it has a tendency to paralyze. 

    I wouldn’t go so far as to say that we have nothing to fear but fear itself. That sounds a bit like underestimating armed raiders and bubonic plague. But it is certainly true that an insular, suppressive angst deprives us of the tools we need to take on the problems we face. Outsiders can kill and destroy, but they can’t kill curiosity and creativity. Only we can do that to ourselves. 

    History often repeats because human nature does. All of the golden ages ended, except one—the one that we are in now. But “history,” said the American journalist Norman Cousins, “is a vast early warning system.” We still know how to swim, but that doesn’t happen automatically; it takes a conscious effort. For that reason, repeating history’s swimming lessons once in a while is helpful. 

    To situate my argument in the context of current culture wars, I object both to the relativist idea that all cultures are equal and to the idea that there is a hierarchy of two opposing and clashing cultures—civilization vs. barbarians (often associated with European Judeo-Christian culture vs. the rest). 

    Yes, some cultures are better than others. Denying that is, as pointed out by the physicist David Deutsch, “denying that the future state of one’s own culture can be better than the present.” It implies that chattel slavery and human rights are equally good (or bad). Some cultures are better than others because they provide institutions for positive-sum games instead of zero-sum; they create liberties and opportunities rather than oppression and destruction. 

    But no, we are not talking here about the inherent traits of two opposite and clashing civilizations. Among the seven golden ages featured here, we meet pagans, Muslims, Confucians, Catholics, Calvinists, Anglicans, and secular civilizations. Those who were seen as barbarians in one era became world leaders in science and technology in the next, and then roles reversed again. They excelled at a time in which their culture was open to the contributions of other civilizations, and so gained access to more brains. 

    This is why both the nationalist right and the woke left are hopelessly unhistorical in their crusades against cultural hotchpotch: Civilizations are not monoliths with inherent traits but complex, growing things defined by how they engage with, adopt, and adapt (appropriate, if you like) what they find elsewhere. It’s the connections and combinations that make them what they are. 

    The battle between freedom and coercion, and between reason and superstition, is not a clash of civilizations. It is a clash within every civilization, and at some level within each one of us. Every culture, country, and government is capable of decency and creativity as well as ignorance and jawdropping barbarianism. That is why “golden” should be understood as much in relationship to what you could otherwise have been as it should be understood as making a comparison with others. It is of course not just down to sheer will, but you and I have it within ourselves to help make our particular place on earth decent and creative rather than the opposite. 

    It is important to grapple with the question “golden ages for whom?” All of the civilizations I describe in this book practised slavery, all of them denied women basic rights, and all took great delight in exterminating neighbouring populations to the last man, woman, and child. 

    Whenever I am tempted to look back at these ages and dream about how amazing it would have been to be alive then—to debate philosophy in the Athenian Lyceum or Baghdad’s House of Wisdom, to discuss political strategy with Cicero or the Song emperor, or to be present at the creation of the Pantheon, The Last Supper, or the printing press—I remind myself that I wouldn’t have come near those places. I would have been a destitute peasant, struggling desperately to keep my family safe from hunger and raiders for another season. 

    If I were one of the lucky ones, that is. As the classicist Mary Beard has remarked, when people say they admire the Roman Empire, they always assume they would have been the emperor or a senator (a few hundred people) and never the enslaved masses in mines, plantations, and other people’s households (a few million). 

    Recorded history is the work of a tiny literate elite, and for most people, in most eras, life was nasty, brutish, and short. In fact, that went for the elites too. No matter how powerful they were, everything could be lost in an instant if they had the misfortune to displease a capricious ruler, and even he had little chance against, say, a bacterial infection or a barbarian invasion. Remember that every time history books record that a city was “sacked,” it means that thousands of civilians were raped, mutilated, and disembowelled. This also tells us something about what mankind is capable of. 

    But history is more than a crime scene. It is also the place where ideas were developed that helped humanity to identify the crimes and overcome them. If we discard all the achievements of those who came before us because they weren’t sufficiently enlightened and decent (they weren’t), we will eventually lose the capacity to discern what is enlightened and decent. Because that very language and moral sense emerged out of their struggles. 

    If you discover something inspiring and useful there, in the overgrown ruins of the past, that can be salvaged to help ensure that our civilization does not just become one in the long list of Goldstone’s temporary efflorescenses, let’s fight for it, shall we? As Goethe once told us, you cannot inherit a tradition from your parents; you have to earn it.

    Johan Norberg is the author of Peak Human: What We Can Learn from the Rise and Fall of Golden Ages, from which this article is adapted by permission of Atlantic Books.

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    Johan Norberg

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  • ‘Tariffs will simply put us all out of business’: Trump’s trade war is crushing American crafters

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    As President Donald Trump’s tariffs make life less affordable and predictable for Americans, they’re also threatening to make it less creative. American craft stores are struggling to keep up with ever-changing trade policies, which are making the foreign-made products they stock more expensive and difficult to access. Many foreign craft supply companies are now unable to ship to American consumers at all.

    Dana Chadwell founded Chattanooga Yarn Company three years ago when she “saw a niche in the local market that wasn’t being filled by the big box stores such as JoAnn, Michael’s, and Hobby Lobby.” She envisioned “a place to find fine yarns for hand knitting and crochet, and a place to build community around yarn crafting.” It’s been a successful venture “in both the business and community aspect” and “I’m truly living my dreams,” Chadwell explains—but tariffs have thrown her shop into a world of uncertainty.

    Over 90 percent of her stock has been affected by tariffs, Chadwell says. “Every supplier I have, minus one, from major to minor, has had a price increase,” she continues. “Because the tariff situation has been so unpredictable…it has made long term planning impossible.”

    “I feel like I’m stuck in a reactive rather than proactive status,” says Chadwell.

    From aluminum knitting needles to printed garment fabric to bottles of oil paint, American crafters work with many materials that are produced abroad. That has left them particularly vulnerable to Trump’s trade war. Imports from Europe currently face tariffs of 15 percent, and while sky-high tariffs on China are paused until mid-November, they still stand at 57.6 percent, according to the Peterson Institute for International Economics. Worse still, Trump is doing away with the de minimis exemption, which allows goods valued at under $800 to enter the U.S. tariff-free. Casual crafters and bustling craft stores alike will see their costs go up.

    Chadwell did all of her fall 2025 shopping this past spring—something she says is typical of yarn shops. “Think about how many changes there have been to tariffs since then,” she points out. “It has been extremely chaotic.” With no hope of planning for the long term, she decided to buy more inventory than she typically would in an attempt to lock in “lower, pre-tariff costs.” As a business owner, she doesn’t intend to spend beyond her means—”I opened with no debt and intend to stay that way,” she explains—so she emptied her rainy-day fund “in order to front-load [her] ordering.”

    Chadwell has told customers that they can expect higher prices starting this fall. “I simply can’t ‘eat’ the tariffs as a small business,” she says. She’s stopped carrying certain products “due to tariff-based cost increases” and tried to stock lower-priced items “to help my customers keep within their family budgets.” She’s brought in more American-made yarns, but “those are luxury yarns without the tariffs, so they’re a higher priced option.”

    Exclusively stocking U.S.-produced materials isn’t an option for most craft stores. “Tariffs impact American-made yarns as well,” pointed out Fibre Space, a yarn store in Alexandria, Virginia. That’s because “American-made goods still rely on materials made in other countries.” Yarn “is an agricultural product,” observes Chadwell, “so certain crops and certain livestock produce the best fiber in very specific climates that aren’t necessarily” found in the United States. Meanwhile, “needles, notions, doodads, [and] bags…can only be produced at much higher prices” here.

    Joann craft store, long the first stop for budget-conscious crafters or people hoping to try out a new hobby, closed its doors in May. Many craft shops “have started to try to bring in products at a more affordable price point to serve” those customers, says Abby Glassenberg, co-founder and president of the Craft Industry Alliance, a trade association for craft businesses. “But with the tariffs, that becomes also more difficult, because a lot of those more budget-friendly supplies are made overseas.”

    Once the de minimis exemption expires on Friday, even small orders of goods will be subject to country-specific tariffs. “According to U.S. Customs and Border Protection data, 1.36 billion packages that qualified for the exemption arrived during 2024,” reported Reason‘s Eric Boehm. Several European shippers, including DHL, Britain’s Royal Mail, and France’s La Poste, have announced that they will temporarily pause shipments to the U.S., “citing ambiguous policies and the need to establish brand-new logistics systems,” reported NPR. Danish, Swedish, Italian, and Austrian postal companies have also halted U.S.-bound shipments.

    Even before those decisions would have prevented European vendors from selling their products to American crafters, several companies cut off orders to the United States. The popular Danish yarn brand Knitting for Olive announced that it would only ship to American yarn stores—not direct to individual crafters—as a result of U.S. trade policies. The British craft store Wool Warehouse suspended all shipments to the U.S. on August 21. “Clearly this is not something we want to do,” explained the shop, calling U.S. sales “a significant part of our business.” But “the likely average extra charges will be in the region of 50%” per order. The shop anticipated that few customers would be willing to pay that charge upon receipt, leading “to HUGE amounts of undelivered packages being returned to us.”

    The “vast majority” of businesses in America’s crafts industry are small businesses, says Glassenberg. Many rely on the de minimis exemption to place small wholesale orders to afford the component parts that go into craft kits and handmade products. “The reality is the supply chain in the U.S. is just not robust enough at this time to be able to provide those items,” she continues.

    Some crafters will find ways to adapt. Glassenberg sees increased interest in mending workshops and creative reuse centers, which are secondhand craft supply stores. In online forums about tariffs, knitters and crocheters predict that they’ll weather the trade war by working through their yarn stashes or unraveling previous projects and thrifted sweaters to reuse the material.

    Still, those tactics leave out many casual crafters who just want to buy a cheap crochet hook and a skein of acrylic yarn. That might sound like a small thing, but tariffs prevent all sorts of voluntary transactions that shape lives and culture in big—and often inconspicuous—ways. That means shops that won’t be started, gifts that won’t be made by hand, and hobbies that won’t be taken up. And more immediately, tariffs are punishing business owners who want to help Americans fill their lives with more creativity.

    “Those of us who are running our shops as a profitable business are deeply concerned but also very frustrated because we feel like we have no control over our fates,” says Chadwell. “There is a point at which tariffs will simply put us all out of business no matter how well we manage our shops.”

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    Fiona Harrigan

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  • An Account Using the Same Name as Trump’s BLS Pick Posted Red-Pilled Conspiracy Theories

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    The account was active at least between September 2019 and January 2021, and had the username @PhDofbombsaway. It used several different screen names, including “Dr. Erwin J. Antoni III” and “Dr. Curtis LeMay,” an apparent reference to the US Air Force general who oversaw a campaign of firebombing Japan in World War II, promoted the use of nuclear weapons, and ran for the vice presidency alongside segregationist George Wallace in 1968. The account’s profile picture was a stock image of a fiery mushroom cloud.

    The account’s persona was that of a deeply loyal Trump supporter engaging in conspiracy theories ranging from Covid denialism to attacks on Black Lives Matter, and even ones related to the death of Jeffrey Epstein. The posting, which was infused with a deeply hard-line Catholic worldview, at times displayed misogyny and a knowledge of Nazi military techniques.

    The account posted a mixture of conspiracy theories and pro-Trump MAGA content, sharing a veritable who’s who of right-wing influencer accounts, including Jack Posobiec, Mark Dice, James O’Keefe, Scott Adams, Cassandra MacDonald, Steven Crowder, James Woods and Robby Starbuck.

    Throughout 2020, the account shared Covid conspiracy theories, especially focusing on the claims that China had purposely manufactured the virus to destroy its enemies.

    In February 2020, responding to a posting asking how many nuclear bombs America should drop on China if it turns out the country was responsible for Covid-19, the account—which was using the “Dr. Curtis LeMay” screen name, according to captures from the Internet Archive—wrote “All the bombs—trust me, I’m kind of the expert on this.”

    The account posted a wide variety of conspiratorial content, as well as misogynistic content. In November 2019, for example, the person controlling the account claimed that Jeffrey Epstein “didn’t kill himself.” That same month, in response to a post about then presidential candidate Kamala Harris, they wrote, “She does her best work when life brings her to her knees.”

    But the account was most consistently vocal in its embrace of the conspiracy theory that Joe Biden stole the 2020 presidential election.

    In the days after the November 3, 2020, election, the account posted hundreds of times as it fully embraced numerous conspiracy theories about how the vote had been rigged.

    While citing dozens of different GOP lawmakers, Trump himself, and far-right influencers like Phillip Buchanan, the right-wing internet troll known as Catturd, the account most frequently shared claims of election conspiracies from an account called Election Wizard.

    That account was run by Travis Vernier, a former Oklahoma City police officer who had no experience in assessing election data. Despite this, Election Wizard became one of the most influential voices in the Stop the Steal movement, to the point that Vernier was even invited to Mar-a-Lago for Trump’s 2022 announcement that he was running for president again.

    As well as sharing conspiracy theories, the account bearing Antoni’s name repeatedly used violent rhetoric to declare how far it was willing to go to ensure Trump secured a second term in office.

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    David Gilbert

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  • Trump promised ‘reciprocal’ tariffs. The numbers tell a different story.

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    For months on the campaign trail and after taking office, President Donald Trump promised that his tariff policies would be based on a simple principle: reciprocity.

    “Whatever they tax us, we will tax them,” Trump told a joint session of Congress in March, outlining plans for higher tariffs on imports from much of the world. When some of those tariff rates were unveiled in early April—before being paused, amended, altered, and in some cases finally imposed—the president reiterated that point. “They’re reciprocal—so whatever they charge us, we charge them,” Trump said.

    The White House has dropped that talking point in recent months. Even so, the executive order that invoked emergency powers to impose those tariffs still promises that they will be “reciprocal.” And in courts where the Trump administration is defending the president’s use of those expansive (and possibly unconstitutional) powers, the administration’s attorneys continue to refer to that set of tariffs as the “reciprocal” tariffs—to distinguish them from tariffs on Canada, China, and Mexico that were imposed in February for different reasons.

    So are the tariffs actually reciprocal? Not even close.

    Consider Switzerland. Last year, the average Swiss tariff on U.S. goods was a minuscule 0.2 percent, while the U.S. charged an average tariff of 1.4 percent on goods imported from Switzerland.

    To make trade with Switzerland “reciprocal,” then, Trump would have had to lower American tariffs on Swiss goods. In fact, he’d have to lower them even more, because in January the Swiss government abolished all of its tariffs on industrial goods from America—an arrangement that Swiss officials said would allow more than 99 percent of American items into the country duty-free.

    Trump responded to that by imposing a staggering 39 percent tariff on imports from Switzerland. This is reciprocity?

    The Swiss tariffs are where the Trump administration’s claim of reciprocity is most disconnected from reality, but it is hardly the only example.

    Singapore does not charge any tariffs on imports from the United States. Nevertheless, Trump’s 10 percent baseline tariff applies to anything that Americans want to purchase from individuals or businesses in Singapore. The average tariff charged by the European Union on American goods is a scant 1.7 percent, but imports from there will now face a 15 percent tariff here. Vietnam charges an average tariff of less than 3 percent on American goods, but Vietnamese goods will face a 20 percent tariff when coming into the U.S.—and that’s after Vietnam negotiated with Trump to lower what had been a 46 percent rate announced in April.

    In all, about 80 percent of the Trump administration’s supposedly “reciprocal” tariffs are higher than the tariffs charged by those countries on American goods, according to a new analysis from the Cato Institute.

    “This revelation is more than just a rhetorical gotcha: tariff advocates, including Trump himself, have long justified new US tariffs on the grounds that they were needed to balance foreign tariffs, which are supposedly quite high, on American goods,” write Scott Lincicome and Alfredo Carrillo Obregon, the co-authors of the Cato analysis. “Overall, the data further demonstrate that US tariffs today are about protectionism, with ‘fairness’ and other buzzwords simply a cover for achieving it.”

    There’s nothing fair about charging Americans higher taxes in an attempt to restrict global trade. And there’s nothing reciprocal about it at all.

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    Eric Boehm

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  • How American U. students are using Taylor Swift to learn about economics – WTOP News

    How American U. students are using Taylor Swift to learn about economics – WTOP News

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    American University students are using Taylor Swift to learn about economics by examining her star power’s impact on the market. The course offering was initially supposed to be a one-hit wonder, but its become so popular that it will also be taught next semester

    Professor and AU Economics Department Chair Kara Reynolds (left) and student course creators Megan Wysocki (center) and Mackenzie Shultz (right).(WTOP/Jessica Kronzer)

    American University students are using Taylor Swift to learn about economics by examining her star power’s impact on the market.

    On the first day of “Switftonomics: The Economics of Taylor Swift,” Economics Department Chair Kara Reynolds sent students home with kits to make friendship bracelets — except unlike the ones from “The Eras Tour” that were modeled off Swift’s memorable songs, these spelled out economic concepts like “demand” and “inflation” instead.

    “I spent the afternoon painstakingly stringing every one on, and it was so nice of her to do that for all the 40 students here,” said student Teddy Gelman.

    Those bracelets set the tone for “Switftonomics: The Economics of Taylor Swift.”

    As WTOP previously reported, students in the class are applying economics to parts of Swift’s career, including her re-recordings, and of course, her record-breaking Eras Tour.

    Two AU students, Megan Wysocki and Mackenzie Shultz, designed the class for a course competition last spring and their concept won.

    Wysocki said the course’s subject matter peaked the interest of some students who haven’t taken a higher level economics course before.

    “This is getting people’s foot in the door of understanding that economics never stops. It’s everywhere,” Wysocki said.

    The enchanted course offering was initially supposed to be a one-hit wonder, but it garnered such a big reputation on campus that Reynolds will teach it again next semester to accommodate students that are hoping to take the course.

    “I can’t wait to see the next group. Actually, I would love to teach it forever,” Reynolds said.

    Shultz said some of her friends enrolled in the economic prerequisite this fall with hopes of enrolling in Swiftonomics this spring.

    “I think people see economics as a scary thing with a lot of numbers and it’s very complicated, but when you kind of pull apart the things that you enjoy out in the world, you can connect those and make it much simpler and more enjoyable,” Shultz said.

    What’s going on in the classroom?

    Each class is themed after a different Swift album.

    “It’s a lot more fun than regular economics,” Gelman said.

    Reynolds plays music as students enter. There’s an ice breaker question, such as “What Taylor Swift song describes your feelings today?” before they get down to business. Reynolds then teaches a lecture on an economic concept, such as supply and demand.

    During this week’s class session, students learned about externalities from the Eras Tour. The economic spillovers were on the agenda.

    “When someone buys a ticket to a concert, they don’t just contribute the economic impact of that ticket,” Gelman explained of the economic concept. “If they travel, if they stay in a hotel, that helps the economy. If they dine out, they are employing workers in that respect.”

    The class also looked at the cost of the tour, including possible environmental impacts of the production and concertgoers.

    “It’s a very meaningful economic phenomenon, and especially with how she has rerecorded her albums and has disrupted the industry, it has potential to reshape things for years to come,” Gelman said.

    Over the past three weeks, Reynolds said the class has also gone over the Ticketmaster scandal that snowballed after the Eras Tour concerts went on sale. And they’ve talked about how Taylor Swift likely prompted the Department of Justice suit against Live Nation and Ticketmaster.

    “(In) the first week, we talked a lot about the ‘superstar economy’ and inequality in our society,” Reynolds said.

    While the class is partially about friendship bracelets and album listening sessions, Gelman said it also tackles topics such as how the Eras Tour may have helped pulled the U.S. out of an economic recession.

    “I would urge everyone who thinks that all this Eras Tour talk is kind of unserious and marginal to reconsider and to think about how it’s really affecting a lot of areas of economic life,” Gelman said.

    Is it working?

    There’s a lot of participation during the class, according to student Meg Norten.

    “I always look forward to coming to class, and that says a lot, because for block classes that are over two hours long, that’s a hard thing to do for students,” she said.

    Unlike other economics classes, Norten said there’s a lot of back-and-forth dialogue between students and their professor during class.

    “It is a lot more … focused on just kind of making sure this is a ‘low stress, high learning’ experience for us, so that the pressure’s down, and we all just feel like we can be ourselves and just learn in the way that’s best for us,” Norten said.

    The class has attracted those outside of the economics major, including students studying journalism and political science.

    “The connections I’ve made and the kind of community I’ve been able to build within the class of people who have the same passions as I do, of Taylor Swift and economics, has been great,” said economics major Callie Morton.

    In this classroom, female students are ‘The Man’

    The class is nearly entirely made up of female students. Reynolds said that’s notable as only about 30% of economics majors are women.

    The field often struggles to attract women. The professor said her students tell her, “When we’re in class, the men really suck the air out of the room.”

    “To have a room of women who feel so confident talking out and giving their opinions, has been so rewarding for me as a faculty member,” said Reynolds.

    Norten added that Swift is representative of the female experience, having persevered despite her experience with gender inequality and negative stereotypes.

    “I think that motivates us, as a largely female class of econ students, in our own field of study in econ where women are underrepresented,” Norten said.

    Norten called the popstar a role model who has broken down barriers. She wants people to think twice before mocking Swifties.

    “There is something really powerful in Taylor Swift’s story,” she said. “It’s not shallow, it’s not surface level. It’s really inspiring to us. And again, she’s clearly powerful enough that we have a whole econ class on her now.”

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    Jessica Kronzer

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  • Report: Rising costs threaten state’s economic growth

    Report: Rising costs threaten state’s economic growth

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    BOSTON — Rising labor costs and a stagnant workforce are threatening Massachusetts’ status as a leader in innovation and economic growth, according to a new report from an independent tax watchdog group.

    The Massachusetts Taxpayers Foundation new Competitiveness Index, released earlier in the week, found that while the state benefits from the “symbiotic relationship” between a highly educated workforce and key economic sectors such as health care and higher education, it also faces significant challenges related to cost and demographic shifts.

    Those include the state’s high cost of energy, housing, and childcare, as well as a declining labor force, aging population, and increasing rates of outmigration, the report’s authors said.

    “Massachusetts has long been a leader in innovation and economic productivity, but our ability to maintain this status is under threat,” said Doug Howgate, the foundation’s president.

    The foundation ranked the state’s competitiveness standing on a broad set of 26 key metrics, ranging from economic health, population and labor force trends to business, employment, and investment factors as well as resident’s quality of life.

    Among the key findings: Massachusetts’ talent and innovation are its biggest strength, with the state ranked first nationally in terms of adult residents with a bachelor’s degree, and first and second in performance among public school students in reading and math, respectively.

    But the state’s high cost of living and cost of doing business is a “major competitive disadvantage,” according to the report, with energy, unemployment insurance and taxes near the bottom of national rankings, the report authors said.

    Child care and housing costs, as well as commute times, also make Massachusetts a challenging place to raise a family, according to the report.

    The authors said the COVID-19 pandemic exacerbated preexisting demographic challenges and pointed out the state has seen a 2.4% decrease in its labor force since 2018, a trend they said is a “serious risk” to the state’s long-term economic growth.

    The state also ranks 45th in the nation for domestic outmigration, with many residents relocating to lower-cost states such as New Hampshire, the report noted.

    Gov. Maura Healey and legislative leaders have focused on boosting the state’s competitiveness in response to previous reports showing an exodus of people from the state in recent years. Healey argues that a lack of housing, among other factors, is impacting the state’s ability to attract and maintain businesses and families.

    But an economic development bill that would set aside hundreds of millions of dollars in bonding and tax credits and reauthorize the state’s life sciences initiative to boost competitiveness has been stuck in a six-member committee since the July 31 end of formal legislative sessions.

    The bill, a key plank of Healey’s first term agenda, was approved by the House and Senate but differences between the two bills still need to be worked out.

    The MTA’s new index, created with the Massachusetts Competitive Partnership and the University of Massachusetts at Amherst’s Donahue Institute, will be updated yearly to give policymakers, business leaders, and the public “a clear, data-driven understanding of how Massachusetts measures up against other states.”

    “If Massachusetts is going to be serious about improving our competitiveness and enhancing what our state offers to residents and employers, we need to start with shared understanding of where we stand and where we want to go,” Howgate said.

    Jay Ash, president and CEO of the Massachusetts Competitive Partnership, said the MTA report “provides a roadmap for the policies and strategies that can help us reverse these trends and build a stronger, more resilient economy.”

    “Massachusetts is a great state, but to maintain our competitive edge, we need to address the fundamental issues driving up costs and driving out talent,” he said.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com

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    By Christian M. Wade | Statehouse Reporter

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  • 3 Recession-Proof Lessons We Can Learn From the Medspa Industry | Entrepreneur

    3 Recession-Proof Lessons We Can Learn From the Medspa Industry | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Estée Lauder chairman Leonard Lauder called it the “lipstick effect” — the growth in demand for small luxuries during times of economic uncertainty. The assumption behind this phenomenon is that when people are under more stress, beauty and self-care rituals offer a form of psychological comfort.

    McKinsey even reported a surge in demand for skincare and wellness products during the pandemic. So, with fears of an economic downturn never far from the surface, might the same apply to the more affordable alternatives to surgical procedures like tummy tucks?

    One of the most recognizable dermatology brands in the U.S., LaserAway, has now expanded to over 120 locations and reports the industry has been growing at over 20% annually in America. CEO Scott Heckmann says that LaserAway experienced “strong years” in 2008 and 2020 despite the recessions. He put it down, in part, to patients moving away from higher-cost providers like plastic surgeons and dermatologists.

    As CMO of Vagaro, a software provider to the wellness industry, I have witnessed it myself: So many people are abandoning surgical procedures for non-invasive methods such as body contouring that advancements in beauty technology are now allowing. They are simply more accessible and less overwhelming. I want to dive deeper into LaserAway’s growth as a barometer of the industry because it has drawn out three lessons that can help other beauty brands recession-proof themselves in an unpredictable economic climate.

    Related: 7 Strategies to Recession Proof Your Business in 2024 and Beyond

    1. A changing market is a good market

    When customers trust a clinic’s practitioners with something as sensitive as their bodies and faces, being very transparent about what’s involved in a procedure is critical to credibility. LaserAway’s social media features videos with real people, real nurses, actual treatments and basic plotlines — at their heart, these procedures are about helping people find their self-confidence.

    Providing people with a realistic picture of likely outcomes also ensures they are more likely to end up satisfied with the treatment. Internal data from our marketplace shows increasing demand for these non-invasive aesthetic treatments. Over the last five years, we have seen an average annual growth of new medspa businesses on our platform of 24%.

    Technology has been a key factor. While cosmetic surgeons have a very limited audience at a high price point, medspa clinics offer myriad services that open the door to a large market — including an increasing number of men. In fact, skincare makes up 45.6% of the global men’s grooming market (worth $85.2 billion in 2023) as old masculine stereotypes give way to self-care among younger generations.

    Related: 5 Recession-Proof Businesses to Start in a Turbulent Economy

    2. Diversification builds resilience

    In many industries, brands must be niche with their products or services. But medspa chains like LaserAway, Sculpt MD and Sono Bello can on-sell a range of services while still maintaining expertise in each area. That diversification is really important because it drives repeat customers and more revenue. When people get body contouring once, they are likely to come back. It’s the same with Botox.

    On our platform, we’ve found that medspa businesses offer an average of 47 services. Having a balance of higher and lower-value offerings like this is a great strategy to maintain steady income through economic fluctuations as people regard treatments as an ongoing investment in their well-being.

    Technology with embedded payments is also a key feature in helping people afford all types of treatments. A lot of consumers are choosing non-invasive procedures because they get the same results as surgery but don’t have to deal with the long recovery time.

    However, the pay-later option can make these treatments financially viable. Getting people through the door, however, does not require the hard sell because consumers are savvier than ever about what they want and expect.

    3. The power of referrals

    All beauty businesses need to be aware that the traditional sales model has evolved after first engaging customers through their different digital and marketing channels. The pandemic was the big impetus for digital influence, but people now want to be impacted through the use of real-life case studies instead of feeling like they are being “sold to.” Hence, the role of influencers.

    We can now assume that once people have sought out a product or service online and done their own research, they are already warm. For me, it is only once I have satisfied myself that a company has authority and integrity that I am ready to talk to a salesperson. The demand for more authenticity only reinforces the idea that the biggest point of sale in the beauty and wellness space should be referrals.

    It will be interesting to watch companies shift to this new expectation of how consumers want to be influenced through sales. This is especially the case since they are already doing so much right, such as their onboarding process that leads patients to choose their treatment, their body target areas, number of treatments already received, and their age. This kind of data can inform the appropriate regime and be leveraged to anticipate consumer trends and continue to build credibility.

    Related: How Small Businesses Can Survive and Thrive in a Recession

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    Charity Hudnall

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  • Rich, western countries face a stark choice: 6-day workweeks or more immigration, top economist warns

    Rich, western countries face a stark choice: 6-day workweeks or more immigration, top economist warns

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    A specter is haunting Europe — the specter of aging.

    Many Western countries are facing what the World Bank calls a “profound demographic crisis”: The twin perils of an aging population and record-low fertility rates are predicted to send their populations plunging in the coming decades. 

    The worst consequences of this demographic shift, per the World Bank, are economic. Soon, the shrinking working population in the U.S., Canada, or Germany won’t be able to meet their own constant demands for high-quality goods and services. These rich, elderly countries will have to make a hard choice for economic survival: force people to work more, or allow immigrants to fill in? 

    Lant Pritchett, one of the world’s top thinkers on developmental economics, has seen this crisis coming for decades over his career at Harvard, the World Bank, and Oxford University, where he currently heads a research lab. He told Fortune his radical plan to stave off economic disaster. 

    Population decline

    In the long run, without intervention, the UN predicts that a decline in population growth could cascade into a full-on population “collapse.” That collapse is not likely to occur until well into the next century – if it comes at all. However, in the short run, population decline presents a real, and relatively simple economic problem: the West soon won’t have enough workers. 

    The ratio of working-age people to elderly people in rich countries will soon become so diminished that support for elders will be unaffordable. In Japan, a nation already facing the consequences of a graying population, the average cost of nursing care is projected to increase 75% in the next 30 years, with Prime Minister Fumio Kishida warning that the nation is on “the brink.” In the U.S., think tanks have warned, an older population with more retirees means a shrinking tax base and higher demands on programs like Social Security and Medicare, along with a smaller number of working-age people to pay into those programs. 

    In short, we have a “ticking time bomb” on our hands, in the words of Greece’s prime minister Kyriakos Mitsotakis, whose government introduced a six-day workweek last month to address the nation’s labor shortages. The move prompted fury and protests among workers as they watched their German and Belgian cousins embrace four-day workweeks. 

    Indeed, even as some European countries and a few American companies flirt with working less, panicked economists and politicians are sounding the alarm: We need to work more. A study conducted by consulting firm Korn Ferry found that by 2030, there will be a global human talent shortage of more than 85 million people, roughly equivalent to the population of Germany. That talent shortage could slash $8.5 trillion from nations’ expected revenues, affecting highly educated sectors such as financial services and IT as well as manufacturing jobs, which are considered “lower skilled” and require less education.

    Now is the time to act, economic veteran Pritchett told Fortune. But doing so involves some radical rethinking of the current immigration debate. 

    Classical economics offers a number of ways to address a labor shortage, Prichett said. Since most of the unfilled jobs are “unskilled,” or don’t require a degree to complete, one solution for businesses and governments is to invest in automation, essentially having robots fill the gap. But, while automation helps get the jobs done, it depresses human workers’ wages by decreasing the amount of jobs available, “exacerbating” the issue, Pritchett said. 

    Some have called for increasing wages to induce more people to work. But most of the working-age population in the U.S. is already employed. Despite a well-documented decline in the portion of working-age men with jobs over the past few decades, Prichett said that the vast majority of working-age men are working, meaning raising pay would have small effects at best. There’s room for more women to work, he noted, but that could take away from other important responsibilities that are overwhelmingly shunted to women, such as caring for family or raising children. 

    That leaves two other options: forcing workers to work more or allowing an influx of legal, controlled immigration. 

    Why a six-day week won’t work

    Mitsotakis’ plan for a six-day-work week is a step in the right direction for the short term, Pritchett said. 

    But “economics is not just about direction: It’s about magnitude,” he added. In other words, he says, small policy tweaks won’t do it. If we’re trying to address a big, structural problem with the U.S. labor force, the solution needs to be ambitious and comprehensive—precisely the type of legislation American politicians have largely avoided in recent years.  

    If policymakers simply try to make everyone work an additional day, the math simply won’t work out in the long run, Pritchett said. Even if Greece has “fantastic success” and increases its working hours by 10% over the next 30 years, that growth would represent a “drop in the bucket” in fighting a worsening labor shortage. He calculated a demographic labor force gap of 232 million people globally in his most recent paper, even assuming the highest possible labor force participation rate. 

    “You can’t solve a problem that’s growing over time with [a labor force] that has an upward bound,” he said. You would have to keep the labor force working more and more, and even then, you would never be able to fill in the gap. 

    Pritchett has a better idea. He knows that the current immigration debate is fraught, since the West is concerned with the social ramifications of allowing more migrants into its borders. But he maintains the only way to solve rich countries’ labor problem is to let in immigrants to work, particularly from countries where population growth is increasing, such as Nigeria or Tanzania, rather than decreasing. 

    In his view, the Western debate on immigration has taken on an unnecessarily binary flavor, with the choice depicted as one between a path to citizenship or closed borders. In a recent article titled “The political acceptability of time-limited labor mobility,” Pritchett says the West will soon have to abandon this view. Instead, he advocates for developed nations to embrace a system where immigrants can come to their country to work for a limited time – while also buying goods and services, renting homes, starting companies, and hiring workers — and then go back home, leaving both parties wealthier.  

    Over his time at Harvard, Oxford, and the World Bank, Lant Pritchett came up with a plan to stave off economic decline.

    Courtesy of Lant Pritchett

    The future of immigration is temporary

    The truth, Pritchett said, is that the U.S. needs low-skilled migrants, and many migrants need the economic boost from working in the U.S. Immigration is a symbiotic relationship that the West cannot quit – that’s why it’s so hard for us to actually control our borders. 

    “The way to secure the border is to create a legitimate way for people and firms to get the labor that the economy really needs in legitimate, legal ways, and until we have that, the whole debate over the wall and stuff is just silly,” Pritchett said. 

    If anything, the intensifying crackdown on undocumented and legal migration since the late 1980s has led to mass settlement, according to Hein de Haas, a sociologist of immigration. Prior to the 1980s, the U.S. and Mexico enjoyed a relationship similar to the work-visa program Pritchett envisions. Mexicans freely flowed across the border, coming for a short time to work, returning home to enjoy their money, and sometimes repeating this journey over several years, Haas wrote. They never permanently settled because, knowing they could come and go as they pleased, they did not have to. 

    The U.S. facilitated this temporary migration programs specifically aimed at Mexicans,  encouraging contract workers to come to the U.S. after  World War I and II. The second of these,the Bracero Program, established a treaty for the temporary employment of Mexican farmworkers in the U.S., and was so popular that it was extended far beyond its initial lifespan, allowing nearly 5 million Mexicans to temporarily work in the U.S. from 1942 to 1964. (The program ended in 1965, when the U.S. sharply limited immigration from Latin America as part of a major overhaul of immigration laws.) 

    What Pritchett suggests isn’t too dissimilar from simply turning the clock back to a time when migrants could move and work freely. He proposes a fixed-term system: a worker comes to the U.S. with the understanding that they are not on a path to citizenship, works on a 3-year contract, and then returns to their home country. After an “off period” of six months to a year, the migrant could come back for another three years. 

    “There are a billion people on the planet who would come to the U.S. under those terms,” Pritchett said. “But we don’t have that available.” 

    He isn’t exaggerating about the billion. In a 2010 survey, Gallup asked people around the world whether they would like to temporarily move to work in another country. Some 1.1 billion responded “yes,” including 41% of the 15-to-24 population and 28% of those aged 25-44, Pritchett sa

    “What you could make in America in three years and go back to Senegal with is a fortune compared to anything else you could do to make your way in Senegal,” he added.  “You go back to Senegal, you build a house, you buy your own business, and you’ve transformed your life by working temporarily.” 

     To avoid potential labor shortages in sending nations, Pritchett’s system would depend on bilateral agreements between the host and sending countries, and nations “could choose to put limits on their participation” to address their own labor needs, Pritchett said. 

    Meanwhile, the U.S. would receive fresh batches of workers for service industries, elderly care, or manufacturing—essentially, all the jobs that would be otherwise unfilled. 

    Policies like these are not yet being discussed on the national stage, but Pritchett believes that will soon change. With the upcoming labor shortage and the unpopularity of forcing workers to toil for longer, politicians will have to expand their understanding of immigration to allow for policies like his. For now, he’s planting the seed. 

    In partnership with economist Rebekah Smith, Pritchett has started an organization called Labor Mobility Partnerships (LaMP) that aims to build political support for a temporary rotational migration system. The way he sees it, nothing will change by pitching the idea to politicians (“who tend to be followers, not leaders”) so instead, he is working with countries that are currently already expanding their immigration channels, like Spain. 

    He is also courting business leaders in sectors that will be the hardest hit by labor shortages, such as elderly care, who could “be potentially a powerful force” in explaining to politicians why policies like his are necessary. 

    “Ideas at times are like dams: huge, unmoving, impregnable, able to hold the water back forever,” Pritchett writes in the conclusion of his paper. “But a small, strategically placed crack can cause a dam to be washed away overnight.”

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    Eva Roytburg

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  • Paradigm Shifts: A Complete Change in Worldview

    Paradigm Shifts: A Complete Change in Worldview

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    Discover the power of paradigm shifts in driving individual and societal transformation, from overcoming cognitive dissonance to fueling scientific revolutions.


    When’s the last time you changed your mind about something?

    Many people are stuck in their beliefs and worldview, especially once we reach a certain age. Our map of reality is shaped most by early life experiences, including lessons we’ve learned from parents, teachers, and friends.

    A worldview can be hard to break out of on a purely psychological level.

    Once we are set in a view, we seek new information that continues to confirm these beliefs by only looking at sources that already agree with us. When new information contradicts these beliefs, we can easily ignore it or distort it to keep our map of reality intact.

    Accepting that we are wrong about something can be hurtful to our ego and pride, and in many ways our brains are designed to protect ourselves from this discomfort by simply ignoring contradictory information unless it has a real world effect on our lives. As Philip K. Dick once said, “Reality is that which, when you stop believing in it, doesn’t go away.”

    The average person isn’t primarily driven by a search for truth, they just need a map of reality that is good enough to navigate their lives effectively and not get themselves into too much trouble, which includes social pressures to conform to certain beliefs or stay silent about others.

    People can go through radical changes in beliefs though. Young adults and teenagers may go through “phases” as they come-of-age, where they question what they’ve been taught, rebel against orthodoxy, and search for their own meaning or purpose in life. These transformative years can lead to paradigm shifts that last a lifetime, such as adherence to new political, religious, or philosophical ideologies. Many may still return to their old beliefs later in life, but with a fresh new perspective.

    Learning about a new worldview, ideology, or philosophy doesn’t mean you need to adopt it – and it doesn’t necessarily lead to a paradigm shift. Often times learning about radically different belief systems can give us a firmer understanding of our current beliefs. There’s wisdom in learning about worldviews you find wrong, mistaken, or incorrect; at the very least, it will give you a better understanding of where other people are coming from.

    Paradigm shifts aren’t just new or updated knowledge, they represent a complete change in your perspective that makes you see and interpret old knowledge in a different way.

    This shift in perspective can be jolting and uncomfortable at first. We depend on worldviews to make sense of reality, so deep changes in perspective can often make reality feel more confusing or unstable at first.

    We often need to re-evaluate old knowledge and experiences through a new lens, and re-integrate them into a new and better map of reality. This is a mental shift that can sometimes take months or years before it is fully developed.

    My Paradigm Shifts

    My mind has changed a lot over the past decade, which hopefully is a sign that I’m learning and growing. When I first started this website over 15 years ago, my worldview was very different than what it is today.

    A few ways my mindset has changed:

    • Less Individualistic – During my college years, I explored a lot of libertarian philosophy that emphasized the individual over the collective. This is a common starting point in many “self help” circles too, which have an ethos of “take responsibility” and “pull yourself up by your boot straps.” While I still believe strongly in individual responsibility and initiative, I’ve grown to recognize the “no man is an island” mantra and focus more on the importance of social support, community-mindedness, and asking for help. This understanding has led to changes in my political and economic views too.
    • Less Materialistic and Money-Focused – It’s a bit embarrassing looking back on it, but I used to want to be rich and famous. I think a lot of it is just part of America’s narcissistic culture, where everyone strives to become some type of celebrity. As I get older, I’ve discovered new core values that have helped me focus on the more important things in life. I’ve also learned that a lot of my drive for money was really a drive for independence, and those aren’t the same thing. A person can make a lot of money and be trapped in their career to sustain their luxurious lifestyle, but a person of more modest fortune, who can be happy with less, often has more independence because they can then focus on other things in life. That was a counter-intuitive idea for me that took awhile to process.
    • Focus on Social and Cultural Forces – When I was younger, and likely a product of my libertarian days, I used to focus more on the importance of economics rather than culture. Generally, I saw things like music, art, and film as just a peripheral aspect of society, but now I’m beginning to understand their central importance. Every culture reflects and propagates a certain set of values, and a culture that promotes harmful and destructive values will lead to a harmful and destructive society. When I look at today’s world, I see a lot of cultural forces going in the wrong direction. I’m not pro-censorship in anyway, but I find many aspects of our culture need to be analyzed, criticized, and abandoned if they are hurting the happiness and health of a people.

    This is how my mindset has shifted over the years – and my mind will likely keep changing as long as I stay open to new information, new knowledge, and new experiences. At this point, most of my learning has happened outside of school and that’s a path I will continue on for the rest of my life.

    The Structure of Scientific Revolutions

    One of the most popular discussions on the topic of paradigm shifts is Thomas Kuhn’s 1962 book
    The Structure of Scientific Revolutions.

    Kuhn describes that scientific progress isn’t just an accumulation of facts, which he calls “normal science,” but also periods of “revolutionary science,” where anomalies are discovered that force scientists to look at a field in a completely new way.

    Common examples of paradigm shifts in science include:

    • The Copernican Revolution in the 16th century, where there was a change from geocentrism (“earth is the center of the universe”) to heliocentrism (“sun is the center of the solar system”)
    • Newtonian Physics in the 17th century, where classical mechanics discovered by Isaac Newton replaced previous models of Aristotelian physics.
    • Darwin’s theory of evolution and natural selection in the 19th century, which changed how humans viewed themselves in relation to animals and nature.

    Often there is initial resistance to accept new paradigms, which can go through heated periods of controversy and criticism among contemporary scientists and laymen.

    However, once these new paradigms were adopted, they allowed for research and discoveries into new phenomenon which ultimately expanded the boundaries of science and learning.

    New paradigms completely change how a scientific field is looked at. Thomas Kuhn used the example of the duck-rabbit optical illusion to demonstrate how new paradigms can change how we see old information:

    duck-rabbit optical illusion

    A duck or rabbit? It depends on your perspective.

    New paradigms can take awhile to be fully adopted. Old facts need to be looked at through a new lens. New books, research, studies, lectures, and textbooks need to be re-written from this new perspective, leading to a type of cognitive restructuring of society. The philosopher Immanuel Kant referred to the advancements of Greek mathematics and Newtonian physics as “revolutions in thinking,” and they take time to process.

    Generally, new scientific paradigms are better than old ones because they have more explanatory power over understanding natural phenomenon and predicting future outcomes.

    The best measure of scientific truth is its predictive power: if a new paradigm fails to better explain or predict a natural occurrence over a previous paradigm, then there’s no real point in replacing the old model (from a scientific perspective).

    Paradigm Shifts: An Antidote to Cognitive Dissonance

    Paradigm shifts are spurred on when new facts don’t fit into old worldviews. This leads to feelings of cognitive dissonance which is when someone is forced to hold two contradictory beliefs at the same time.

    Often the only way to reconcile this disconnect between facts vs. experience is to find a completely new paradigm that accounts for all old and new knowledge. This may require recognizing wrong or mistaken beliefs from your past, or cultivating a worldview with more complexity and nuance.

    Cognitive dissonance is a painful experience that most people choose to ignore or avoid. Many people double-down on wrong beliefs when they are passionately invested in them, which leads to excessive confirmation bias and conspiracy theories when beliefs continue to be held unchecked.

    At the same time, cognitive dissonance can be a catalyst for change – it’s a signal that we need to adjust our understanding of reality. This can become a real avenue for transformative thinking as long as you are honest with yourself, seek out diverse sources of information, and open-minded enough to see things in a new light.

    Conclusion

    Paradigm shifts are a part of learning and growing on both an individual and societal level. They are necessary for both radical self-improvement and radical scientific progress.

    While it’s important not to “change your mind just for the sake of changing your mind,” honest searches for knowledge and truth inevitably come up against walls that require a paradigm shift to get over and move onto the next stage.


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    Steven Handel

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  • 2024 World Happiness Rankings: USA Falls Out of Top 20, Youngest Hit Hardest

    2024 World Happiness Rankings: USA Falls Out of Top 20, Youngest Hit Hardest

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    What are the top 20 happiest countries in the world? How do mental health and well-being trends look in the United States and Canada? The 2024 World Happiness Report is in!


    The World Happiness Report is a research initiative to compare happiness levels between different countries.

    The project first launched in 2012, surveying more than 350,000 people in 95 countries asking them to rate their happiness on a 10-point scale.

    Each year they release a new report and the 2024 full report was just published a few weeks ago. There are some interesting findings in it that are worth highlighting.

    First let’s look at the happiness rankings by country.

    Top 20 Happiest Countries

    Here are the top 20 happiest countries in 2024 according to the report.

    The scores are on a scale of 1-10. Each participant was asked to think of a ladder, with the best possible life for them being a “10” and the worst possible life being a “0.” They were then asked to rate their current lives. The final rankings are the average score for each country.

    (By the way, this simple test for measuring subjective well-being is known as the “Cantril Ladder,” it’s a common tool used in public polling especially the Gallup World Poll.)

    The results:

      1. Finland (7.741)
      2. Denmark (7.538)
      3. Iceland (7.525)
      4. Sweden (7.344)
      5. Israel (7.341)
      6. Netherlands (7.319)
      7. Norway (7.302)
      8. Luxembourg (7.122)
      9. Switzerland (7.060)
      10. Australia (7.057)
      11. New Zealand (7.029)
      12. Costa Rica (6.955)
      13. Kuwait (6.951)
      14. Austria (6.905)
      15. Canada (6.900)
      16. Belgium (6.894)
      17. Ireland (6.838)
      18. Czechia (6.822)
      19. Lithuania (6.818)
      20. United Kingdom (6.749)

    The top 10 countries have remained stable over the years. As of March 2024, Finland has been ranked the happiest country in the world seven times in a row.

    There was more movement in the top 20 rankings. Most notably, this is the first year that the United States dropped out of the top 20 (from rank 15 to 23 – an 8 place drop).

    More alarming are the age gaps in happiness reports. In both the U.S. and Canada, those above the age of 60 report significantly higher rates of happiness than those below 30.

    Above age 60, the U.S. ranks 10 overall on the world happiness rankings. Below age 30, the U.S. falls to rank 62, just beating out Peru, Malaysia, and Vietnam.

    Could this be a sign of a continuing downward trend in places like the U.S. and Canada?

    Potential Factors Behind Life Evaluation

    How to measure happiness is always a controversial topic.

    To this day, psychologists and social scientists don’t really have a reliable way to determine happiness besides simply asking someone, “How happy are you?”

    However, the World Happiness Report attempts to take the above findings and break them down into six main factors that contribute to overall life evaluation on a societal level.

    These factors don’t influence the final rankings, they are just a way to make sense of the results:

    • GDP per capita – A general measure of a country’s overall wealth.
    • Life expectancy – A general measure of a country’s overall health.
    • Generosity – The level of a country’s trust and kindness through charity and volunteering.
    • Social support – The level of a country’s social cohesion and community.
    • Freedom – The level of a country’s freedom to live life as a person sees fit.
    • Corruption – A general measure of government competence and political accountability.

    Each factor helps explain the differences in overall happiness between countries, with some countries performing better in certain areas over others.

    One benefit of this model is that it looks beyond GDP (or “Gross Domestic Product”) which has long been the overall benchmark for comparing countries in the social sciences. The U.S. has the highest GDP in the world and frequently ranks in the top 10 per capita, but the happiness rankings show there is more to the picture.

    Conclusion

    The World Happiness Report is a good guideline for comparing happiness and well-being between different countries. How does your country rank? It will be interesting to see how these rankings change over the next few years, do you have any predictions?


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    Steven Handel

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  • Business briefs

    Business briefs

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    PEOPLEGreg Stevens was recently announced as the new president at Cabot Wealth Management. Rob Lutts and the firm’s managing partners made the announcement last week. It was effective Jan. 1. Stevens has been with Cabot for 20 years and has been instrumental in managing the growth and success of the firm over those years. He takes over the role of president from Lutts who founded the firm in 1983. Lutts will remain with Cabot as part of the management team. “I am confident that Greg will be a solid leader for the firm and, along with other senior leadership, will continue to ensure that our key focus is the same as it has been for 40 years — doing everything we can to help our clients achieve their goals,” said Lutts. The firm, based in Salem, is a leading wealth management firm that provides a wide range of services including investment management, financial planning, estate planning, tax filing and planning. Cabot is a national firm that serves clients across the country.

    Aubrie L. Gallagher recently joined Downey Law Group, LLC/DLG Closing to its law practice based in Topsfield and Haverhill. Gallagher is an experienced estate planning, probate, and trust administration attorney, having practiced as a solo practitioner for over 10 years. An Amesbury native, she graduated from Massachusetts School of Law in 2011. She comes from three generations of estate planning and probate attorneys, following in the footsteps of her mother, attorney Janice Weyland Sinclair, and her grandfather, attorney Wendell P. Weyland, who was a CPA and estate attorney in the Topsfield/Boxford area. Gallagher lives in Amesbury with her husband and family.

    Hancock Associates, a leading provider of land surveying, civil engineering and wetland science services, has announced the semi-retirement of Don Frydryk PE, PLS. Frydryk joined Hancock Associates, which has offices in Danvers, as a Regional Office Manager when the firm acquired Sherman & Frydryk, LLC, a land surveying and civil engineering firm located in Palmer. He will continue in a smaller, part-time role as Business Development Coordinator and focus on business development for Hancock’s western Massachusetts offices and mentoring staff.

    MILESTONESConnolly Brothers Inc., a construction management firm based in Beverly, recently completed a 52,000-square-foot design-build fit-up project for Calare Properties. The facility, located in Milford, will serve as a new state 911 Public Safety Answering Point, State 911 Training Center, Municipal Police Training Committee Academy and offices for the Massachusetts Department of Correction Professional Standards Unit. The two-story building was vacant for seven years, presenting challenges for Connolly’s design team. At first, it was critical to ascertain an understanding of the existing infrastructure, such as underground plumbing and structural components. Connolly proceeded to update the structural requirements, such as reinforcing second-floor and roof bar joists, strengthening steel column brace frames and creating four new grade beams, in order to meet updated building code requirements for use group risk category of the building. Connolly provided additional accessible entrances and replaced the exterior stairs with new granite. The electrical requirements to support the 911 Communication Center required a high level of coordination between Connolly’s design and construction teams, as this included design of 22 workstation consoles that support the intricate technological infrastructure needed to support the operating requirements for a 911 emergency dispatch center. Connolly served as both Architect of Record and Construction Manager for this design-build project. The project team also included Platinum Fire Protection, D+D/DNET and Tech Mechanical.

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  • Chinatown coalition touts study that warns new 76ers arena could drive away neighborhoods’ businesses

    Chinatown coalition touts study that warns new 76ers arena could drive away neighborhoods’ businesses

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    Opponents of the 76ers’ proposed arena in Center City released an analysis Thursday claiming to show the project could cost the city a billion dollars in tax revenue over the next several decades by destabilizing businesses in nearby neighborhoods.

    The analysis, shared by Chinatown organizers, aims to refute brighter economic projections touted by the team in its quest to gain city approval for the project on East Market Street. The 76ers called the new study “fatally flawed” and questioned the methods used by its author, who fears the city’s commissioned impact studies on the arena — which have yet to be released — will fail to capture any potential downsides of the team’s plan.

    “The idea behind this project was to try to look beyond the direct impact of the arena and try to model what might happen to the existing businesses and employees in the area,” said Arthur Acolin, the University of Washington researcher who conducted the analysis.

    The study looks at potential impacts on businesses in the 19107 ZIP code, which covers the commercial core of Chinatown, Washington Square West and Midtown Village within a mile of the proposed arena site at the Fashion District mall. The businesses in this footprint generate an estimated $296 million in city and state tax revenue each year, according to Acolin’s analysis.

    Acolin presents three hypothetical scenarios — low, median and high impact — with calculations of potential business closures and tax revenue losses during the five-year period of the arena’s construction and the first 30 years of operation.

    The economic rationale for the study is that disruptions during the construction phase will harm area businesses — some of which operate on slim margins — by discouraging people from shopping in the area, according to Acolin. And when the arena is completed, crowds for Sixers games and other events will most often spend their money on concessions and at new businesses built to complement the arena. Over time, this could threaten the survival of existing businesses to varying degrees, past research on other development projects shows. 

    Acolin completed his graduate studies in urban planning at the University of Pennsylvania and said he has remained invested in Philadelphia’s economic future. He’s been a community representative in the city’s ongoing review of the 76ers’ arena plan and previously has attended planning meetings for the Save Chinatown Coalition, but said he was not paid for his research.

    In his worst-case scenario, Acolin projects there could be a loss of more than 500 businesses and 15,000 jobs in the 19107 ZIP code. That could result in as much as $1.04 billion in lost city and state tax revenue, a figure that would offset much of the $1.472 billion in tax revenue the 76ers have claimed the arena will generate in its first 30 years for the city and state.

    “The new businesses entering bring new customers, but also drain some of the customers from the area,” Acolin said. “It’s really a substitution effect that in the Sixers’ numbers is not taken into account at all. They’re just looking at what their investment will be contributing in terms of economic activity, but not what they are taking away from the community.”

    The 76ers called Acolin’s conclusions “haphazard,” suggesting it has “half-baked theories,” errors and omissions.

    “The underlying research and citations do not actually reach the stated conclusions,” said Mark Nicastre, a spokesperson for the 76ers on the arena. “There is no explanation of how the researcher arrived at his data, assumptions, or conclusions. If it exists, we encourage the author to submit it to the city for independent analysis as we have done.”

    In the 76ers’ campaign to build their arena and residential tower, the team has committed to privately financing the $1.55 billion project. State subsidies haven’t been ruled out, but the 76ers’ proposal is otherwise an unusual example of a sports venue that ostensibly would not be dependent on significant public money — apart from a negotiated tax payment, called a PILOT agreement, that the 76ers would get on the land they lease from the city.

    The project’s financing is among the reasons the Sixers are so optimistic about their tax revenue projections related to the arena, which they say will create 1,000 permanent jobs and crucially fill the impending void of created by the Fashion District mall’s decline.

    Acolin and the Chinatown organizers contend that the 76ers and the city have not examined any of the potential negative impacts of an arena on small and mid-size businesses in the area. They say there has been too little transparency around the methods behind the impact studies done by the 76ers’ consultants and by the firms chosen to lead the city’s arena impact studies, which are paid for by the team and overseen by the Philadelphia Industrial Development Corp.

    “It is hard to tell given the lack of details, but from what I have seen, they do not claim to model changes in surrounding activity as part of their tax estimates,” Acolin said. “If they do, they should make it clear and break down how much is coming from (the arena’s) economic activity and how much is coming from what they anticipate to be the impact on existing businesses.” 

    PIDC did not respond Thursday to a request for information about when the city’s impact studies will be released and whether they will have data that answer questions similar to Acolin’s research. A spokesperson for City Councilmember Mark Squilla, whose 1st District covers the arena site, said Thursday that community members participated in shaping the goals of the impact studies and that Squilla’s office defers PIDC about their specifics. 

    Chinatown organizers said they expressed concerns to Squilla and others last year, but were never assured that their requests would been taken into account.

    “Despite multiple requests to fill that gap (made to PIDC, city planning, and Squilla) the scope of work has not been modified to include an analysis of potential lost revenue, to our knowledge,” Save Chinatown Coalition spokesperson Melissa McCleery said.

    As the wait continues for the city to release its studies, the 76ers warn that the precarious future of the Fashion District makes the arena’s approval a pressing issue for local leaders. The team believes it holds the best path forward for the languishing East Market Street corridor and has presented a rare opportunity for the city to leverage private investment in a bold, multifaceted project. In emails Thursday, team officials questioned why building the arena would be considered more harmful than letting the mall die with no plan to replace it, or opting for a different project that theoretically could affect other businesses in ways similar to those described in Acolin’s analysis.

    “This should be read for what it is — another attempt by those who oppose the project to obfuscate the truth by pumping out misinformation,” Nicastre said.

    Given the lack of direct highway access near the proposed arena site and the lofty expectation that fans will embrace public transportation, Acolin argues that the viability of the arena “seems highly speculative.” He feels the city would be better served if the 76ers built a new arena at the Sports Complex in South Philadelphia, where the project could better support and connect to neighboring projects in the Navy Yard and the development of the Bellwether District. He acknowledged that the challenges on East Market Street are significant, especially in the context of broader economic conditions constraining new development, but he urged careful deliberation about whether an arena is the right answer. 

    “One of the big issues is the pressure to act now and find a solution for that location now while the development cycle is really not favorable to any large-scale development,” Acolin said. “The arena can seem like an immediate fix, but then there is the potential that it does not support the existing businesses and residents.”

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    Michael Tanenbaum

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  • ROCKPORT RAMBLINGS: ‘Shed your meds’ topic for luncheon

    ROCKPORT RAMBLINGS: ‘Shed your meds’ topic for luncheon

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    Worried your taking too many medicines? A presentation on Wednesday may help you advocate for yourself and keep medications in check throughout the aging process.

    The Rockport Council on Aging will host Donna Bartlett, author of “MedStrong,” at a special luncheon presentation Wednesday, Feb. 21, at noon.

    The lunch and presentation topic “Shed Your Meds” is free thanks to sponsorship from Addison Gilbert Hospital and the Friends of the Rockport Council on Aging. The event will take place at the Rockport Community House, 58 Broadway, where seats are limited and advance reservations are required.

    A board-certified geriatric pharmacist based in Worcester, Bartlett is engaged in community outreach programming specializing in older adult medication needs, affordability and prescription coverage. Bartlett has seen first-hand the effects of staying on medication longer than necessary and the impact of “over medication.”

    Those in attendance can expect to come away with a better understanding of “de-prescribing” from an expert who has been practicing, teaching and speaking on the subject for more than 15 years. Copies of Bartlett’s book “MedStrong” will be available for purchase at the event.

    Seats may be reserved by contacting the Rockport Council on Aging at 978-546-2573.

    Career Day

    The DECA chapter at Rockport High School is sponsoring Career Day on Wednesday, April 3, at the school, 24 Jerden’s Lane, from 8 to 10:30 a.m., and the chapter is seeking for volunteers for presentations. Rockport High alumni are encouraged to present. Anyone interested in participating should email DECA advisor Scott Larsen at slarsen@rpk12.org.

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    Rockport Ramblings | All Hands

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