Category: Economics

Working for Uber Allows Flexibility for Aspiring Actors

(p. 8) Not long ago, being a waiter at the Ivy or a salesman at Fred Segal was considered the reliable way to earn a living until one got a big break in a Wes Anderson film and got picked up by a major Hollywood agency like CAA or WME.
But Krystal Harris, 27, an actress who appeared in the recent Kevin Hart film “About Last Night,” quickly realized those sorts of jobs were overrated. So now she works primarily for Lyft.
“I was a lead hostess at three different restaurants,” Ms. Harris said. “It really didn’t allow for much flexibility at all. I ended up getting fired for going to an audition. Even when I got my shifts covered, they gave me a hard time.”
In 2013, she turned her Ford Escape into a roving cash register. She had total control over her hours, never needing to clear her schedule with anyone for a last-minute audition. There weren’t even rules against working for both Uber and Lyft.
When acting gigs were hard to come by, she drove as many as 40 hours a week, earning what she estimated was about $20 an hour after Uber and Lyft took their commissions (generally around 20 percent). If the casting gods shined on her, she simply shut off the apps.
“When I’m really on a roll, I don’t have to work,” she said. “As long as my insurance and registration are up to date, I can go back.”
Mr. Totten had a similar experience. Before driving for Uber, he worked at a half-dozen restaurants. All those jobs ended when he had to take off for auditions, or was caught trying to learn lines on the job. Once, he refused to shave because a casting director was looking for someone with stubble.
“My look is my scruff,” said Mr. Totten, who is blond and blue-eyed, with a James Dean meets 90210 appeal. “As soon as I started driving for Uber, things got better.”
. . .
(p. 9) Recently, Mr. Totten considered getting a new side job. “I’m probably going to do Postmates,” he said, referring to the app-based service that delivers artisanal food in under 60 minutes and guarantees its drivers a minimum of $25 an hour. “You can’t live on this anymore.”

For the full story, see:
JACOB BERNSTEIN. “Drivers With Head Shots.” The New York Times, SundayStyles Section (Sun., JAN. 24, 2016): 1 & 8-9.
(Note: ellipsis added.)
(Note: the online version of the story has the date JAN. 23, 2016, and has the title “The New Side Job for Actors and Artists in Los Angeles: Driving.”)

“Ordinary People Should Have a Go”

(p. A11) The classical archaeologist and now big-picture historian Ian Morris, whose last book argued that war is good for you, now explains why coal is too. In “Foragers, Farmers, and Fossil Fuels,” Mr. Morris puts “energy capture” at the center of human values since the Ice Age, through three eras: the Foragers to begin with; the Farmers after about 8,000 B.C.; and, in the past few centuries, the Fossil Fuelers.
. . .
A culture favorable to liberty and dignity for commoners came out of the Reformation and 16th-century Holland, spread to Britain and Britain’s colonies in the 18th century, and resulted after 1800 in an explosion of ingenuity.
This Great Enrichment, which Mr. Morris acknowledges but does not explain, increased income per head not by the 100% or 200% of earlier efflorescences but by anything from 2,000% to 10,000%. Routine materialism of Mr. Morris’s sort can’t explain the most important secular event in human history. He wants to pin it all on energy capture. The correct story is one of ideas of human equality changing, starting with a conviction novel in the 17th century in northwestern Europe that ordinary people should have a go. This led to massive innovation, among which was energy capture. We do not have a fossil-fuel civilization. We have a free and ingenious one.

For the full review, see:
DEIRDRE MCCLOSKEY. “BOOKSHELF; Oil on Troubled Waters; In this telling, progress is explained by the rising use of fossil fuels. Yet the Industrial Revolution was powered by water, not coal..”The Wall Street Journal (Mon., July 6, 2015): A11.
(Note: ellipsis added.)
(Note: the online version of the review has the date July 5, 2015.)

The book under review, is:
Morris, Ian. Foragers, Farmers, and Fossil Fuels: How Human Values Evolve, The University Center for Human Values Series. Princeton, NJ: Princeton University Press, 2015.

Americans Should Not Be Required to Join a Private Organization Against Their Will

(p. A15) I am one of 10 California teachers suing to end compulsory union dues in Friedrichs v. California Teachers Association, which will be heard by the Supreme Court Jan. 11. Our request is simple: Strike down laws in 23 states that require workers who decline to join a union to pay fees anyway. In our view, paying fees to a union should not be a prerequisite for teaching in a public school. No one in the U.S. should be forced to give money to a private organization he or she disagrees with fundamentally. Teachers deserve a choice.
. . .
I was a member of the union for years and even served as a union representative. But the union never played an important role in my school. When most teachers sought guidance, they wanted help in the classroom and on how to excel at teaching. The union never offered this pedagogic aid.
Instead, the union focused on politics. I remember a phone call I received before a major election from someone in the union. It was a “survey,” asking teachers whether they would vote for so-and-so if the election were held tomorrow. I disagreed with every issue and candidate the union was promoting. After that conversation, I thought about what the union represents. Eventually, I realized that my dues–about $1,000 a year–went toward ideas and issues that ran counter to my beliefs.
. . .
A Gallup poll last year found that 82% of the public agrees that “no American should be required to join any private organization, like a labor union, against his will.” That’s all we’re asking.

For the full commentary, see:
HARLAN ELRICH. “Why I’m Fighting My Teachers Union; I don’t want to be forced to pay for a political agenda I don’t support. Now the Supreme Court will rule.” The Wall Street Journal (Mon., Jan. 4, 2016): A15.
(Note: ellipses added, italics in original.)
(Note: the online version of the commentary has the date Jan. 3, 2016.)

Global Poor Fell from 29% in 2001 to 15% in 2015

(p. A6) UNITED NATIONS — Poverty may be down worldwide, yet that does not mean that yesterday’s poor are today’s middle class. Data analyzed by the Pew Research Center concluded that more than half the world’s population remains “low-income,” while another 15 percent are still what a report issued by the center on Wednesday called “poor.”
The share of the global poor, defined as those who lived on $2 a day or less, fell from 29 percent in 2001. Most of the people in that category, though, took “only a moderate step up the income ladder,” the report concluded: 56 percent were “low-income,” in 2011, living on $2 to $10 a day.

For the full story, see:
SOMINI SENGUPTAJ. “Study Finds Low Incomes Constrain Half of World.” The New York Times (Thurs., JULY 9, 2015): A6.
(Note: the online version of the story has the date JULY 8, 2015.)

More Evidence for Stigler’s Capture Theory

(p. A15) WASHINGTON — Marilyn B. Tavenner, the former Obama administration official in charge of the rollout of HealthCare.gov, was chosen on Wednesday to be the top lobbyist for the nation’s health insurance industry.
Ms. Tavenner, who stepped down from her federal job in February, will become president and chief executive of America’s Health Insurance Plans, the trade group whose members include Aetna, Anthem, Humana, Kaiser Permanente and many Blue Cross and Blue Shield companies.
As the new voice for insurers, Ms. Tavenner will lead the industry in a time of tumultuous changes and challenges, including delicate negotiations with Congress over the future of the Affordable Care Act.
. . .
The board of America’s Health Insurance Plans unanimously elected Ms. Tavenner at a meeting here on Wednesday, according to Mark B. Ganz, the board chairman, who is also the chief executive of Cambia Health Solutions, based in Portland, Ore.
. . .
Mr. Ganz said that Ms. Tavenner had “the trust and respect of members of Congress from both sides of the aisle.”
Senator John Barrasso, Republican of Wyoming, described the selection in more negative terms. “While millions of Americans are still being hurt by Obamacare’s soaring costs and fewer choices,” he said, “Ms. Tavenner’s appointment shows how the law has created a cozy and profitable relationship for some.”

For the full story, see:
ROBERT PEAR. “Head of Obama’s Health Care Rollout to Lobby for Insurers.” The New York Times (Thurs., JULY 16, 2015): A15.
(Note: ellipses added.)
(Note: the online version of the story has the date JULY 15, 2015.)

Yamir Jackson-Adens on How You Learn

(p. B4) PHILANTHROPISTS have poured millions of dollars into improving education in the United States — paying for new buildings, buying new computers and even creating new charter schools.
Susan Crown, a member of the billionaire Crown family of Chicago, is trying something different. Two years ago, she began working with organizations that seek to foster character traits like grit, empathy and perseverance, which studies show can be determinants of future success.
But financing organizations that focus on social and emotional learning programs for disadvantaged children was just part of the effort. Ms. Crown said she also wanted to go deeper into understanding why some organizations succeeded so well.
, , ,
Yamir Jackson-Adens, 18, began going to the Philadelphia Wooden Boat Factory in eighth grade. Living in a poor section in the northeast part of the city, he said he had been bullied in elementary school, and he was still shy. The boat program intrigued him, even though he knew no one who owned a boat.
“In boat building, you learn stuff,” Mr. Jackson-Adens said. “You’re free to move. You don’t have a whole lot of restrictions. It’s more of a trial-and-error kind of thing. You learn from those mistakes. In school, if you fail, you’ve failed.”
. . .
Next fall, Mr. Jackson-Adens will be attending Colorado State University to begin studies that he hopes will lead to becoming a veterinarian.
“Boat got me into thinking outside the box,” he said. “It helped me adjust to different situations.”
That is a life skill anyone could use.

For the full story, see:
PAUL SULLIVAN. “A Philanthropist Drills Down to Discover Why Programs Work.” The New York Times (Sat., Feb. 6, 2016): B4.
(Note: ellipsis added.)
(Note: the online version of the article has the date Feb. 5, 2016.)

Proletariat Loses Money Investing in Ponzi Scheme Supported by Chinese Communists

(p. B1) HONG KONG — At every turn in his improbably rapid rise, Ding Ning, 34, went to great efforts to convey the image of strong government backing for his Internet financing business.
There was his company’s lavish annual meeting and banquet last year in Beijing’s Great Hall of the People, where China’s legislature meets and where top government leaders host official functions. Adding a splash of celebrity to the event were Zhou Tao, a nationally famous actress and host on the government’s main television broadcaster, and several mid-ranking officials, bureaucrats and lawmakers.
There were the positive profiles in state-controlled media, as well as the company’s advertising on official TV. There was the section of his company’s website devoted to building Communist Party spirit.
But it all came crashing down in dramatic fashion for Mr. Ding this week, when the police alleged that his financing business, Ezubao, was a $7.6 billion Ponzi scheme and announced 21 arrests, including of Mr. Ding. The company was shut down.
, , ,
(p. B7) In interviews, former staff and investors described the signals of strong state support as one of the keys to Ezubao’s rapid rise.
“Many people joined Ezubao because they saw the support from the government and from some government officials,” said Feng Zhe, 36, a Beijing resident who worked as a salesman at the company from June of last year until December.
Mr. Feng said a number of his friends and family members invested in Ezubao’s products and suffered losses. “Many people bought their products because the government has lent the company credibility,” he added.

For the full story, see:
NEIL GOUGH. “Feeling Twice Victimized.” The New York Times (Sat., Feb. 6, 2016): B1 & B7.
(Note: ellipsis added.)
(Note: the online version of the article has the date Feb. 5, 2016, and has the title “Ponzi Scheme in China Gained Credibility From State Media.”)

“Recyclers Around the Country Face Losses”

(p. B1) . . . recycling is a commodities business. The paper, metal, plastic and glass that recyclers collect, sort and sell competes against so-called virgin materials. And right now, many commodities are cheap.
Abundant oil is the latest headache for recyclers. New plastics are made from the byproducts of oil and gas production. So as plentiful fossil fuels saturate global markets, it has become cheaper for the makers of water bottles, yogurt containers and takeout boxes to simply buy new plastics. This, in turn, is dragging down the price of recycled materials, straining every part of the recycling industry.
In Montgomery, Ala., Infinitus Energy opened a $35 million recycling center in 2014. By last October, it was hemorrhaging (p. B5) money and shut down. Montgomery’s recyclables are now going to a landfill, and a once booming local business, United Plastic Recycling, filed for bankruptcy last year.
. . .
. . . as recyclers around the country face losses, they are passing their costs along to cities and counties. Increasingly, local governments are receiving nothing at all for their recyclables, or even having to pay companies to accept them.
Last year, the city government in Washington, D.C., paid Waste Management $1.37 million to accept the recyclables it collected from residents.

For the full story, see:
DAVID GELLES. “Losing a Profit Motive: A Skid in Oil Prices Pulls the Recycling Industry Down With It.” The New York Times (Sat., FEB. 13, 2016): B1 & B5.
(Note: ellipses added.)
(Note: the online version of the story has the date FEB. 12, 2016, and has the title “Skid in Oil Prices Pulls the Recycling Industry Down With It.”)

New Middle-Skill Jobs Combine Technical and Social Skills

DemingGraphOnMathSocialSkillJobs2015-10-18.jpgSource of graph: online version of the NYT article quoted and cited below, based on Deming paper cited further below.

(p. 4) For all the jobs that machines can now do — whether performing surgery, driving cars or serving food — they still lack one distinctly human trait. They have no social skills.

Yet skills like cooperation, empathy and flexibility have become increasingly vital in modern-day work. Occupations that require strong social skills have grown much more than others since 1980, according to new research. And the only occupations that have shown consistent wage growth since 2000 require both cognitive and social skills.
The findings help explain a mystery that has been puzzling economists: the slowdown in the growth even of high-skill jobs. The jobs hit hardest seem to be those that don’t require social skills, throughout the wage spectrum.
“As I’m speaking with you, I need to think about what’s going on in your head — ‘Is she bored? Am I giving her too much information?’ — and I have to adjust my behavior all the time,” said David Deming, associate professor of education and economics at Harvard University and author of a new study. “That’s a really hard thing to program, so it’s growing as a share of jobs.”
. . .
“If it’s just technical skill, there’s a reasonable chance it can be automated, and if it’s just being empathetic or flexible, there’s an infinite supply of people, so a job won’t be well paid,” said David Autor, an economist at the Massachusetts Institute of Technology. “It’s the interaction of both that is virtuous.”
Mr. Deming’s conclusions are supported by previous research, including that of Mr. Autor. Mr. Autor has written that traditional middle-skill jobs, like clerical or factory work, have been hollowed out by technology. The new middle-skill jobs combine technical and interpersonal expertise, like physical therapy or general contracting.
James Heckman, a Nobel Prize-winning economist, did groundbreaking work concluding that noncognitive skills like character, dependability and perseverance are as important as cognitive achievement. They can be taught, he said, yet American schools don’t necessarily do so.

For the full commentary, see:
Claire Cain Miller. “The Upshot; The Best Jobs Require Social Skills.” The New York Times, SundayReview Section (Sun., OCT. 18, 2015): 4.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date OCT. 16, 2015, and has the title “The Upshot; Why What You Learned in Preschool Is Crucial at Work.”)

The Deming paper referred to above, is:
Deming, David J. “The Growing Importance of Social Skills in the Labor Market.” National Bureau of Economic Research, Inc., NBER Working Paper # 21473, Aug. 2015.

The Autor paper referred to above, is:
Autor, David. “Polanyi’s Paradox and the Shape of Employment Growth.” National Bureau of Economic Research, Inc., NBER Working Paper # 20485, Sept. 2014.

The Heckman paper referred to above, is:
Heckman, James J., Jora Stixrud, and Sergio Urzua. “The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior.” Journal of Labor Economics 24, no. 3 (July 2006): 411-82.

Technology Extends Capabilities of Older Japanese

(p. A1) TOKYO–At an office-building construction site in the center of Japan’s capital, 67-year-old Kenichi Saito effortlessly stacks 44-pound boards with the ease of a man half his age.
His secret: a bendable exoskeleton hugging his waist and thighs, with sensors attached to his skin. The sensors detect when Mr. Saito’s muscles start to move and direct the machine to support his motion, cutting his load’s effective weight by 18 pounds.
“I can carry as much as I did 10 years ago,” says the hard-hatted Mr. Saito.
Mr. Saito is part of an experiment by Obayashi Corp. , the construction giant handling the building project, to confront one of the biggest problems facing the company and the country: a chronic labor shortage resulting from a rapidly aging population. The exoskeleton has allowed Mr. Saito to extend his working life–and Obayashi to keep building.
. . .
(p. A14) The Fujisawa Aikoen nursing home about an hour outside Tokyo started leasing the “hybrid assistive limb,” or HAL, exoskeletons from maker Cyberdyne Inc. in June.
In Hokkaido, 60-year-old potato-pickers use rubber “smart suits” making it easier to bend over. Baggage handlers at Tokyo’s Haneda airport employ similar assistance.
In cases where older people simply can’t do the job or aren’t available, Japanese manufacturers are turning to robots, which help them keep costs down and continue growing.
Bank of Tokyo Mitsubishi UFJ, Japan’s largest bank, employs a small robot speaking 19 languages to greet customers, while a Nagasaki hotel staffed mainly by robots opened in July. Komatsu Ltd. is developing self-driving vehicles for construction sites, while industrial robot maker Fanuc Corp. is designing machines that repair each other.
Toyota Motor Corp. is testing in homes its “human support robot,” a videophone/remote-controlled android that allows family and friends to perform tasks for distant elderly people as if they were in the same home. In one demonstration, a young man uses a tablet to look around a bed-bound older man’s room, then directs the robot to open the curtains and bring the older man a drink.
SoftBank Group Corp. earlier this year drew global attention when it put on sale in Japan an automaton called Pepper, which it called the world’s first robot capable of understanding emotions. One of the earliest uses for the 4-foot-tall white humanoid is as a nursing helper.
In a Kanagawa Prefecture test, Pepper entertained a room of 30 80- to 90-year-olds for 40 minutes. He led them in light exercises and tested their ability to recognize colors and letters. Women patted his head like a grandchild.
Showing a video of Pepper with a dementia patient on another occasion, Shunji Iyama, one of the developers, says the robot may sometimes work better than people. “That man keeps repeating himself over and over again,” Mr. Iyama said. “If Pepper were human, he’d get fed up, but he just repeats the same reaction and doesn’t get tired.”

For the full story, see:
Jacob M. Schlesinger and Alexander Martin. “Graying Japan Tries to Embrace the Golden Years.” The Wall Street Journal (Mon., Nov. 30, 2015): A1 & A14.
(Note: ellipsis added.)
(Note: the online version of the story has the date Nov. 29, 2015, and has the title “Graying Japan Tries to Embrace the Golden Years.”)

To Get the High-Hanging Fruit, Grow Shorter Trees

Dr. Gennaro Fazio, a plant breeder and geneticist with the USDA’s Agricultural Resource Service tells us . . . :

“In taller apple trees, the fruit that is high up, exposed to the sun, ripens the fastest. Low-hanging fruit doesn’t get much sun, and it’s not as ripe — not so delectable, you could say — as the higher fruit. You want to pick the low-hanging fruit last, so it has more time to develop.”

But according to Fazio none of this ultimately matters: the idiom “low-hanging fruit” has been rendered totally and utterly irrelevant by the changing nature of apple tree genetics.
When “low-hanging fruit” became a metaphor in the late 1960s, the majority of apple trees in the U.S. were 25- to 30-foot tall goliaths–and the only fruits within reach were those that lingered on lower branches. Today, however, the majority of apple trees are what arborists refer to as “dwarfs.”
. . .
Once hesitant that the smaller trees wouldn’t produce as much fruit, apple growers realized dwarf trees were actually far more profitable. “Farmers get a higher yield per acre,” says Heather Faubert, of the Rhode Island Fruit Growers Association. “With the taller trees, you could only plant about 20 trees per acre; now, you can get as many as 2,000 in the same space.”
The result of these smaller trees is that the lowest-hanging fruits are actually no longer the easiest to pick. In fact, picking them requires repeatedly bending over to knee-level, a maneuver that can prove incredibly straining on the lower back.
“The ergonomics of picking apples have completely changed,” says Fazio. “It really no longer makes sense to go for the low-hanging fruit. The phrase is irrelevant.”

For the full story, see:
Priceonomics.com, “Should You Literally Pick the Low-Hanging Fruit?,” Feb. 5, 2016, URL: http://priceonomics.com/should-you-literally-pick-the-low-hanging-fruit/.
(Note: ellipses added.)

The web page was excerpted in:
“Notable & Quotable: ‘Low-Hanging Fruit’.” The Wall Street Journal (Weds., Feb. 10, 2016): A11.
(Note: the online version of the article has the date Feb. 9, 2016.)