Category: Economics

Xi Deflects Focus Away from Economic Stagnation by Telling Youth to “Eat Bitterness”

(p. B1) China’s young people are facing record-high unemployment as the country’s recovery from the pandemic is fluttering. They’re struggling professionally and emotionally. Yet the Communist Party and the country’s top leader, Xi Jinping, are telling them to stop thinking they are above doing manual work or moving to the countryside. They should learn to “eat bitterness,” Mr. Xi instructed, using a colloquial expression that means to endure hardships.

Many young Chinese aren’t buying it. They argue that they studied hard to get a college or graduate school degree only to find a shrinking job market, falling pay scale and longer work hours. Now the government is telling them to put up with hardships. But for what?

“Asking us to eat bitterness is like a deception, a way of hoping that we will unconditionally dedicate ourselves and undertake tasks that they themselves are unwilling to do,” Ms. Li said.

. . .

(p. B4) A record 11.6 million college graduates are entering the work force this year, and one in five young people is unemployed. China’s leadership is hoping to persuade a generation that grew up amid mostly rising prosperity to accept a different reality.

The youth unemployment rate is a statistic the Chinese Communist Party takes seriously because it believes that idle young people could threaten its rule. Mao Zedong sent more than 16 million urban youths, including Mr. Xi, to toil in the fields of the countryside during the Cultural Revolution. The return of these jobless young people to cities after the Cultural Revolution, in part, forced the party to embrace self-employment, or jobs outside the state planned economy.

Today the party’s propaganda machine is spinning stories about young people making a decent living by delivering meals, recycling garbage, setting up food stalls, and fishing and farming. It’s a form of official gaslighting, trying to deflect accountability from the government for its economy-crushing policies like cracking down on the private sector, imposing unnecessarily harsh Covid restrictions and isolating China’s trading partners.

Many people are struggling emotionally. A young woman in Shanghai named Ms. Zhang, who graduated last year with a master’s degree in city planning, has sent out 130 résumés and secured no job offers and only a handful of interviews.

. . .

“To ask us to endure hardships is to try to shift focus from the anemic economic growth and the decreasing job opportunities,” said Ms. Zhang, who, like most people I interviewed for this column, wanted to be identified with only her family name because of safety concerns.

. . .

Mr. Xi “talks about the great rejuvenation of the Chinese nation all the time,” said Steven, who graduated from a top U.K. university with a master’s degree in interactive design and has yet to find a job. “But isn’t the rejuvenation about not everyone engaging in physical labor?” Because of the rapid development of robots and other technologies, he said, these jobs are easily replaceable.

. . .

Now after months of fruitless job hunting, he, like almost every young worker I interviewed for this column, sees no future for himself in China.

“My best way out,” he said, “is to persuade my parents to let me run away from China.”

For the full commentary, see:

Li Yuan. “THE NEW NEW WORLD; China’s Grads Struggle to Find Work. Xi Shrugs.” The New York Times (Friday, June 2, 2023): B1 & B4.

(Note: ellipses added.)

(Note: the online version of the commentary was updated June 1, 2023, and has the title “THE NEW NEW WORLD; China’s Young People Can’t Find Jobs. Xi Jinping Says to ‘Eat Bitterness.’”)

Simple Beeping Pagers Tell Patients a Doctor’s Distraction Is Work-Related

(p. A10) Pagers, those pre-cellphone, one-way devices that alert the carrier that someone is trying to reach them, can seem like something out of a time capsule.

. . .

There are people who just refuse to let their pagers go, including some doctors and bird watchers. They say pagers allow them to separate parts of their life in a way phones don’t, and that the lower-tech one-way communication of a pager is less distracting than looking at a phone full of alerts and apps.

. . .

Another advantage of the pager? It’s easy for staff to throw one in frustration instead of turning on each other, according to Dr. Colm McCarthy, an orthopedic surgeon in Fall River, Mass.

Tired during a busy on-call night once, he chucked his pager in a closet where it broke.

He gave up his pager when he got his current job, and transitioned over to the apps on his phone. Now, though, when he gets a message on his phone, it’s awkward to answer it, he says. If he’s looking at the phone, he worries patients might wonder what he’s paying attention to while with a pager, it’s obvious it’s work.

He has multiple apps on his phone. Last year, his hospital adopted the fourth app that connects him to patients. When a patient wants to reach him, he gets a message with a phone number. He then has to call that number to get a message with the patient’s phone number.

The mute function on the apps is easily overridden by alerts, so to separate work from home life, he keeps his phone on silent altogether, he says. He often misses messages from family and friends because of that.

For the full story, see:

Ariana Perez-Castells. “What the Beep? Die-Hards Refuse to Let Go of Their Pagers.” The Wall Street Journal (Monday, May 20, 2023): A1 & A10.

(Note: ellipses added.)

(Note: the online version of the story has the date May 19, 2023, and has the same title as the print version.)

In Blackberry Movie “The Excitement of Disruption and the Thrill of Creation Become Tangible”

(p. C9) In Matt Johnson’s “BlackBerry” — a wonky workplace comedy that slowly shades into tragedy — the emergence of the smartphone isn’t greeted with fizzing fireworks and popping champagne corks. Instead, Johnson and his co-writer, Matthew Miller (adapting Jacquie McNish and Sean Silcoff’s 2015 book “Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry”), have fashioned a tale of scrabbling toward success that tempers its humor with an oddly moving wistfulness.

. . .

. . ., we’re in Waterloo, Ontario, in 1996, where Mike Lazaridis (a perfect Jay Baruchel) and Doug Fregin (Johnson) — best friends and co-founders of a small tech company called Research in Motion (RIM) — are trying to sell a product they call PocketLink, a revolutionary combination of cellphone, email device and pager.

. . .

The corporate types don’t understand Mike and Doug’s invention, but a predatory salesman named Jim Balsillie (a fantastic Glenn Howerton), gets it. Recently fired and fired up, Jim sees the device’s potential, making a deal to acquire part of RIM in exchange for cash and expertise. Doug, a man-child invariably accessorized with a headband and a bewildered look, is doubtful; Mike, assisted by a shock of prematurely gray hair, is wiser. He knows that they’ll need an intermediary to succeed.

Reveling in a vibe — hopeful, testy, undisciplined — that’s an ideal match for its subject, “BlackBerry” finds much of its humor in Jim’s resolve to fashion productive employees from RIM’s ebulliently geeky staff, who look and act like middle schoolers and converse in a hybrid of tech-speak and movie quotes. It’s all Vogon poetry to Jim; but as Jared Raab’s restless camera careens around the chaotic work space, the excitement of disruption and the thrill of creation become tangible.

For the full movie review, see:

Jeannette Catsoulis. “When Geeks Clash With Suits, They’re All Thumbs.” The New York Times (Friday, May 12, 2023): C9.

(Note: ellipses added.)

(Note: the online version of the movie review has the date May 11, 2023, and has the title “‘BlackBerry’ Review: Big Dreams, Little Keyboards.”)

The book that is the basis of the movie under review in the passages quoted above is:

McNish, Jacquie, and Sean Silcoff. Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of Blackberry. New York: Flatiron Books, 2015.

Instead of Ending Poverty, Chinese Communists End Free Speech About Poverty

(p. A1) A heartbreaking video of a retiree that showed what groceries she could buy with 100 yuan, or $14.50 — roughly her monthly pension and sole source of income — went viral on the Chinese internet. The video was deleted.

A singer vented the widespread frustration among young, educated Chinese about their dire finances and gloomy job prospects, like gig work. “I wash my face every day, but my pocket is cleaner than my face,” he sings. “I went to college to help rejuvenate China, not to deliver meals.” His song was banned and his social media accounts were suspended.

. . .

Hu Chenfeng recorded the footage that was removed from the Chinese internet. On popular video sites, he had posted a recording showing an elderly woman living on barely $15 a month. In the words of many social media commenters, he was revealing too much. “This subject is untouchable,” one commenter wrote on a now-deleted discussion thread on Zhihu, a site similar to Quora. Another wrote, “His account was censored simply because he showed what life is like for many people.”

In the video, which survives outside the Chinese internet on YouTube, Mr. Hu interviews the woman, a 78-year-old widow, on the street in the southwestern city of Chengdu. She said she planned to buy only rice, about the only thing she could afford. She hadn’t eaten meat for a long time. Tears rolled down her cheeks as she recounted her financial hardship. The two walk through a grocery store. They bought rice, eggs, pork and flour. The bill came to 127 yuan ($18). Mr. Hu insisted on paying.

He was emotional, too, signing off with “a heavy heart.”

The video was removed from the two biggest user-generated video platforms in China. Mr. Hu’s accounts were suspended.

For the full commentary, see:

Li Yuan. “THE NEW NEW WORLD; China Is Deleting Poverty, One Video at a Time.” The New York Times (Monday, May 8, 2023): A1 & A6.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date May 4, 2023, and has the title “THE NEW NEW WORLD; Why China’s Censors Are Deleting Videos About Poverty.”)

EU Likes Greek Prime Minister Who Enforces Borders and Permits Economic Growth

(p. 4) . . . with Greece holding national elections on Sunday [May 21, 2023], Brussels has . . . lauded Mr. Mitsotakis, a pro-Europe conservative, for bringing stability to the Greek economy, for sending military aid to Ukraine and for providing regional stability in a time of potential upheaval in Turkey.

Above all, European Union leaders appear to have cut Mr. Mitsotakis slack for doing the continent’s unpleasant work of keeping migrants at bay, a development that shows just how much Europe has shifted, with crackdowns formerly associated with the right wing drifting into the mainstream.

“I’m helping Europe on numerous fronts,” Mr. Mitsotakis said in a brief interview on Tuesday [May 16, 2023] in the port city of Piraeus, where, in his trademark blue dress shirt and slacks, the 55-year-old rallied adoring voters on crowded streets. “It’s bought us reasonable good will.”

. . .

“Right-wing or a central policy,” said Mr. Mitsotakis, the leader of the nominally center-right New Democracy party, “I don’t know what it is, but I have to protect my borders.”

. . .

His government has spurred growth at twice the eurozone average. Big multinational corporations and start-ups have invested. Tourism is skyrocketing.

The country is paying back creditors ahead of schedule, and Mr. Mitsotakis expects, if he wins, international rating agencies to lift Greece’s bonds out of junk status. The number of migrant arrivals has dropped off 90 percent since the crisis in 2015, but also significantly since Mr. Mitsotakis took office four years ago.

“A European success story,” The Economist called Greece under Mr. Mitsotakis.

. . .

As Mr. Mitsotakis walked the streets, a bus driver reached out the window and clasped his hand. “Supporters until the end,” chanted a group of men in front of a cafe. “We trust you,” a woman shouted from her jewelry shop.

For the full story, see:

Jason Horowitz. “A Migration Enforcer Europe Can Live With.” The New York Times, First Section (Sunday, May 21, 2023): 4.

(Note: ellipses, and bracketed dates, added.)

(Note: the online version of the story has the same date as the print version, and has the title “As Greece Votes, Leader Says Blocking Migrants Built ‘Good Will’ With Europe.”)

Scientist Latta Knows, but Cannot Prove, That Ivory-Billed Woodpecker Is Not Extinct

I respect and admire Dr. Latta for having the courage to affirm what he saw with his own two eyes. Other scientists should not be so quick to ‘give him the bird’ (so to speak ;).

(p. A19) If there’s new hope, it’s blurry. What’s certain: The roller coaster tale of the ivory-billed woodpecker, a majestic bird whose presumed extinction has been punctuated by a series of contested rediscoveries, is going strong.

The latest twist is a peer-reviewed study Thursday [May 18, 2023] in the journal Ecology and Evolution presenting sighting reports, audio recordings, trail camera images and drone video. Collected over the last decade in a Louisiana swamp forest, the precise location omitted for the birds’ protection, the authors write that the evidence suggests the “intermittent but repeated presence” of birds that look and behave like ivory-billed woodpeckers.

But are they?

“It’s this cumulative evidence from our multiyear search that leaves us very confident that this iconic species exists, and it persists in Louisiana and probably other places as well,” said Steven C. Latta, one of the study’s authors and director of conservation and field research at the National Aviary, a nonprofit bird zoo in Pittsburgh that helps lead a program that searches for the species.

But Dr. Latta acknowledges that no single piece of evidence is definitive, and the study is carefully tempered with words like “putative” and “possible.”

. . .

. . . Dr. Latta, the study co-author, insisted that he had seen one clearly with his own eyes. He was in the field in 2019 to set up recording units, and he figures he spooked the bird. As it flew up and away, he got a close, unimpeded view of its signature markings.

“I couldn’t sleep for, like, three days,” Dr. Latta said. “It was because I had this opportunity and I felt this responsibility to establish for the rest of the world, or at least the conservation world, that this bird actually does exist.”

For the full story, see:

Catrin Einhorn. “Experts Strive to Prove ‘This Bird Actually Does Exist’.” The New York Times (Friday, May 19, 2023): A19.

(Note: ellipses, and bracketed date, added. The online version of the article says that the print version appears on p. 21. My national edition of the print version appeared on p. 19.)

(Note: the online version of the story was updated May 18, 2023, and has the title “A Vanished Bird Might Live On, or Not. The Video Is Grainy.”)

The peer-reviewed paper, co-authored by Latta and mentioned above, is:

Latta, Steven C., Mark A. Michaels, Thomas C. Michot, Peggy L. Shrum, Patricia Johnson, Jay Tischendorf, Michael Weeks, John Trochet, Don Scheifler, and Bob Ford. “Multiple Lines of Evidence Suggest the Persistence of the Ivory-Billed Woodpecker (Campephilus Principalis) in Louisiana.” Ecology and Evolution 13, no. 5 (2023): e10017 https://onlinelibrary.wiley.com/doi/full/10.1002/ece3.10017.

California Democratic Leaders Are “Shook” that Voters in Their “Liberal Bastion” Prefer Merit Instead of Affirmative Action

(p. 1) The 2020 campaign to restore race-conscious affirmative action in California was close to gospel within the Democratic Party. It drew support from the governor, senators, state legislative leaders and a who’s who of business, nonprofit and labor elites, Black, Latino, white and Asian.

The Golden State Warriors, San Francisco Giants and 49ers and Oakland Athletics urged voters to support the referendum, Proposition 16, and remove “systemic barriers.” A commercial noted that Kamala Harris, then a U.S. senator, had endorsed the campaign, and the ad also suggested that to oppose it was to side with white supremacy. Supporters raised many millions of dollars for the referendum and outspent opponents by 19 to 1.

“Vote for racial justice!” urged the American Civil Liberties Union of Northern California.

None of these efforts persuaded Jimmie Romero, a 63-year-old barber who grew up in the working-class Latino neighborhood of Wilmington in Los Angeles. Homelessness, illegal dumping, spiraling rents: He sat in his shop and listed so many problems.

Affirmative action was not one of those.

“I was upset that they tried to push that,” Mr. Romero recalled in a recent interview. “It was not what matters.”

Mr. Romero was one of millions of California voters, including about half who are Hispanic and a majority who are Asian American, who voted against Proposition 16, which would have restored race-conscious admissions at public universities, and in government hiring and contracting.

The breadth of that rejection shook supporters. California is a liberal bastion and one of the most diverse states in the country.

. . .

(p. 12) Valerie Contreras, a crane operator, is a proud union member and civic leader in Wilmington, where half the voters were against the referendum. She had little use for the affirmative action campaign.

“It was ridiculous all the racially loaded terms Democrats used,” she said. “It was a distraction from the issues that affect our lives.”

Asian voters spoke of visceral unease. South and East Asians make up just 15 percent of the state population, and 35 percent of the undergraduates in the University of California system.

Affirmative action, to their view, upends traditional measures of merit — grades, test scores and extracurricular activities — and threatens to reduce their numbers.

Sunjay Muralitharan is a voluble freshman and a leader of the Democratic Party chapter at the University of California, San Diego. A Bernie Sanders supporter, he favors universal basic income, a higher minimum wage and national health care.

In 2020, as a 16-year-old, he joined the campaign against race-conscious affirmative action in California. Afterward, he and friends applied to elite private universities outside California and were often surprised by the rejections, reaffirming his view that Asian students need higher grades and scores to gain admission.

“There were lots of students of Indian and Chinese descent who had to settle for schools not of their caliber,” said Mr. Muralitharan, who grew up in Fremont, a predominantly Asian middle-class suburb of San Jose.

. . .

Kevin Liao, a consultant and former top Democratic Party aide, . . . was not surprised, . . ., that many Asian Americans balked. “The notion that you would look at anything other than pure academic performance is seen by immigrants as antithetical to American values,” he said.

For the full story, see:

Michael Powell and Ilana Marcus. “The Affirmative Action Vote That Divided California Democrats.” The New York Times, First Section (Sunday, June 11, 2023): 1 & 12.

(Note: ellipses added.)

(Note: the online version of the story was updated June 5, 2023, and has the title “The Failed Affirmative Action Campaign That Shook Democrats.” The online version says that the print version had the title “California Vote Exposed a Divide Amid Democrats” but my national print version had the title “The Affirmative Action Vote That Divided California Democrats.”)

Feds Impose Tariffs on Imports of Paper-Thin Steel Needed to Make EV Engines

(p. A3) Large U.S. steelmakers are ramping up production of a hard-to-make, paper-thin steel to capture a fast-growing market for a material critical to powering electric vehicles.

. . .

Such electrical steel, which accounts for about 1% of all the steel produced annually in the world, already is in short supply for electric vehicles, executives said. Companies expect demand to accelerate faster than production as EV volumes expand in the coming years.

“It’s in limited supply and with very long lead times. Sometimes 50 or 52 weeks,” said Hale Foote, owner of Scandic Springs Inc., a San Leandro, Calif., company that uses high-grade electrical steel to make parts for scientific measurement devices.

. . .

More than 80% of the electrical steel produced comes from China, Japan and South Korea, all countries that are subject to U.S. tariffs or quotas on steel imports, industry analysts said.

. . .

(p. B2) “It takes intense focus. You have to have absolute consistency or you scrap the material,” said David Stickler, who led the investment group that built Big River Steel in Osceola, Ark., and then sold the mill to U.S. Steel in 2021. Mr. Stickler said he envisioned electrical steel being a core product at Big River when he started planning the mill nearly a decade ago.

. . .

Steel-industry executives said that creating more domestic capacity to make electrical steel for vehicles will likely take years, as steel companies acquire equipment and become proficient at the exacting production process.

“You can’t just buy the equipment and start making electrical steel. Those who’ve made the investment will have an advantage for the next five to 10 years,” Mr. Stickler said.

For the full story, see:

Tita, Bob. “Paper-Thin Steel Used to Power EVs Is in Short Supply.” The Wall Street Journal (Tuesday, March 28, 2023): B1-B2.

(Note: ellipses added. The online version is longer, but the passages quoted above appear in both versions.)

(Note: the online version of the story has the date March 27, 2023, and has the title “The Paper-Thin Steel Needed to Power Electric Cars Is in Short Supply.”)

So-Called “Inflation Reduction Act” Mandates Pharma Firms Dishonestly Say They Voluntarily Negotiated Prices

(p. A15) The pharmaceutical company Merck claims in a lawsuit filed this week that the “Drug Price Negotiation Program for Medicare,” part of last summer’s Inflation Reduction Act, is an unconstitutional taking of company’s property and a violation of the company’s freedom of speech. If successful, this lawsuit will prevent the unconstitutional practice of forcing drug companies to sell drugs to the U.S. government at a government-determined price.

To make the provision of the 2022 law constitutional, Congress could have imposed price controls, or it could have bargained with pharmaceutical companies using the massive marketing power of Medicare, which accounts for some half of all American drug spending. Instead, Congress tried to prevent pharmaceutical companies from walking away from any potential deal. Under the act, secret negotiations force pharmaceutical companies to agree to government-determined prices amounting to massive discounts off market-based prices, under the threat of crippling taxes and penalties.

Americans tend to support pharmaceutical “price negotiations,” but oppose “price controls.” Knowing this, Congress set up a ruse.

. . .

. . ., the law essentially requires a company to communicate that it agreed to the set price—compelled speech that is prohibited by the First Amendment. Time and again, the Supreme Court has declared forced speech beyond the power of the government. The government’s only seeming interest is to pretend that a system of unilateral price controls and mandated sales is actually a system of voluntary negotiations.

For the full commentary, see:

Daniel E. Troy. “An Unconstitutional Offer Drug Companies Can’t Refuse.” The Wall Street Journal (Friday, June 9, 2023): A15.

(Note: ellipses added.)

(Note: the online version of the commentary has the date June 8, 2023, and has the same title as the print version.)

An Hawaiian Wants Land She Can Own and Control, Even if Not in Hawaii

(p. 1) When Pauline Kauinani Souza was a child in Hawaii, she spent early mornings watering her grandfather’s watermelons and papaya trees.

Her family lived frugally, eating homemade bread and heating water over a fire for bathing. But the no-frills life came with the ultimate perk: living near the beach and drifting off to sleep at night to the sound of waves gently crashing on the shore.

Now, at 80, Ms. Souza lives in Las Vegas, a desert city of neon reinvention far from the ocean and her ancestral home. It is not paradise, but it is full of Native Hawaiians like her who have flocked there in recent years for the endless entertainment, reasonable cost of living and something few people can find in Hawaii: a house they can afford.

“I own it outright,” she said proudly of her two-bedroom, ranch-style home in Las Vegas. “In Hawaii, there aren’t many people who can say that.”

Increasingly, Las Vegas is drawing Hawaiians who came to visit and decided to stay, convinced that an affordable faux version of the islands is better than an endless struggle to make ends meet in the real thing.

Between 2011 and 2021, the population of Native Hawaiians and (p. 19) other Pacific Islanders in Clark County, Nev., which includes Las Vegas, grew by about 40 percent, for a total of nearly 22,000 people. That was the greatest number of newcomers in that demographic in any county outside Hawaii, according to population estimates from the U.S. Census Bureau. In that same period, the total population of Clark County grew by about 17 percent.

For many, the draw is real estate: Houses in the Las Vegas area have a median listing price of about $460,000, compared with about $800,000 in Honolulu, according to Federal Reserve Economic Data.

Americans migrating for cheaper housing is not unusual, as seen most dramatically in the decades-long shift from the Northeast to the Sunbelt. But this migration from the impossibly lush natural landscape of the islands to the brash desert of Las Vegas is a particularly vivid glimpse of how the search for housing remakes the country in sometimes surprising ways.

. . .

In 2022, Hawaii had the highest cost of living out of all 50 states and the District of Columbia, according to data from the Council for Community and Economic Research. The state imports the vast majority of its food, making everyday groceries especially expensive. And strict regulations on building have contributed to housing shortages and prices out of reach for many.

For the full story, see:

Eliza Fawcett and Hana Asano. “Priced Out of Paradise’ But Hawaiians Thrive in Desert.” The New York Times, First Section (Sunday, May 21, 2023): 1 & 19.

(Note: ellipsis added.)

(Note: the online version of the story has the date May 20, 2023, and has the title “There’s No Ocean in Sight. But Many Hawaiians Make Las Vegas Their Home.” The online version says that the print version has the title “Desert Provides A New Paradise For Hawaiians” but my national print version has the title “They’re ‘Priced Out of Paradise’ But Hawaiians Thrive in Desert.”)

As Millennials Age They Shift to Republicans

(p. B4) Fifteen years ago, a new generation of young voters propelled Barack Obama to a decisive victory that augured a new era of Democratic dominance.

Fifteen years later, those once young voters aren’t so young — and aren’t quite so Democratic.

. . .

This shift toward the right among the young voters who propelled Mr. Obama to victory 15 years ago is part of a larger pattern: Over the last decade, almost every cohort of voters under 50 has shifted toward the right, based on an analysis of thousands of survey interviews archived at the Roper Center.

It’s not necessarily a stunning finding. Political folklore has long held that voters become more conservative as they get older. But it is nonetheless at odds with a wave of recent reports or studies suggesting otherwise. The Financial Times, for instance, wrote that “millennials are shattering the oldest rule in politics” by not moving to the right as they age.

For the full commentary, see:

Nate Cohn. “Millennials Aren’t an Exception. They Have Moved to the Right.” The New York Times, First Section (Sunday, June 4, 2023): A16.

(Note: ellipsis added.)

(Note: the online version of the commentary was updated June 2, 2023, and has the title “Millennials Are Not an Exception. They’ve Moved to the Right.”)