Category: Economics

Many People Hope “to Achieve Some Wealth”

The “Mr. Doggett” who is quoted below is “Representative Lloyd Doggett of Texas, a senior Democrat on the Ways and Means Committee.”

(p. A12) Senator Elizabeth Warren, Democrat of Massachusetts, pressed Treasury Secretary Janet L. Yellen last week on Ms. Warren’s proposed wealth tax, which would impose a 2 percent surtax on the value of assets owned by people worth more than $50 million — and raise at least $3 trillion.

. . .

Other Democrats, even liberals, are not so sure.

“The whole term of a wealth tax scares an awful lot of people who are hoping to achieve some wealth,” Mr. Doggett said. “We don’t want to discourage economic success. We just want to level the playing field.”

For the full story, see:

Jonathan Weisman. “Bipartisan Infrastructure Talks Collide With Democrats’ Goal to Tax Rich.” The New York Times (Mon., June 21, 2021): A12.

(Note: ellipsis added.)

(Note: the online version of the story has the date June 20, 2020, and has the title “Bipartisan Infrastructure Talks Collide With Democrats’ Goal to Tax the Rich.”)

Subsidies for Black Farmers Fuel Claims of “Reverse Racism” and “All Farmers Matter”

(p. 1) LaGRANGE, Mo. — Shade Lewis had just come in from feeding his cows one sunny spring afternoon when he opened a letter that could change his life: The government was offering to pay off his $200,000 farm loan, part of a new debt relief program created by Democrats to help farmers who have endured generations of racial discrimination.

It was a windfall for a 29-year-old who has spent the past decade scratching out a living as the only Black farmer in his corner of northeastern Missouri, where signposts quoting Genesis line the soybean fields and traffic signals warn drivers to go slow because it is planting season.

But the $4 billion fund has angered conservative white farmers who say they are being unfairly excluded because of their race. And it has plunged Mr. Lewis and other farmers of color into a new culture war over race, money and power in American farming.

. . .

(p. 19) The plans have drawn thousands of enraged comments on farm forums and are being fought by banks worried about losing interest income. And some rural residents have rallied around a new slogan, cribbed from the conservative response to the Black Lives Matter movement: All Farmers Matter.

. . .

“It’s a bunch of crap,” said Jeffrey Lay, who grows corn and soybeans on 2,000 acres and is president of the county farm bureau. “They talk about they want to get rid of discrimination. But they’re not even thinking about the fact that they’re discriminating against us.”

. . .

. . . rural residents upset with the repayments call them reverse racism.

White conservative farmers and ranchers from Florida, Texas and the Midwest quickly sued to block the program, arguing that the promised money amounts to illegal discrimination. America First Legal, a group run by the former Trump aide Stephen Miller, is backing the Texas lawsuit, whose plaintiff is the state’s agriculture commissioner.

“It’s anti-white,” said Jon Stevens, one of five Midwestern farmers who filed a lawsuit through the Wisconsin Institute for Law and Liberty, a conservative legal group. “Since when does Agriculture get into this kind of race politics?”

. . .

One recent afternoon, a friend, Brad Klauser, who runs his family’s large cattle and grain farm, swung by Mr. Lewis’s barn to catch up. As they talked bills, rising fuel costs and sky-high land prices, the conversation turned to the debt relief that only one of them was eligible to receive.

“Everybody should have the same option,” said Mr. Klauser, who is white, leaning on the flatbed of Mr. Lewis’s pickup. “Do you think you’re disadvantaged?”

“There’s definitely disadvantages,” Mr. Lewis replied, saying that officials scoffed when he first tried to get a federal farm loan. “They didn’t take me serious.”

After Mr. Klauser headed home, Mr. Lewis thought about how the two friends were both trying to reap a profit from the land. “Everyone should have a chance at farming,” he said.

For the full story, see:

Jack Healy. “Windfall for Black Farmers Roils Rural America.” The New York Times, First Section (Sunday, May 23, 2021): 1 & 19.

(Note: ellipses added.)

(Note: the online version of the story was updated May 24, 2021, and has the title “‘You Can Feel the Tension’: A Windfall for Minority Farmers Divides Rural America.” The online “pressreader” version showed the continuation page as p. 21. The continuation page of my “National” print version was p. 19.)

Federal Central Planners (and Cronies) Spent Hundreds of Millions of Strategic National Stockpile Funds on Emergent’s Outdated, Marginal Anthrax Vaccine, Leaving N95 Masks Unfunded

(p. 1) WASHINGTON — A year ago, President Donald J. Trump declared a national emergency, promising a wartime footing to combat the coronavirus. But as Covid-19 spread unchecked, sending thousands of dying people to the hospital, desperate pleas for protective masks and other medical supplies went unanswered.

Health workers resorted to wearing trash bags. Fearful hospital officials turned away sick patients. Governors complained about being left in the lurch. Today the shortage of basic supplies, alongside inadequate testing and the slow vaccine rollout, stands as a symbol of the broken federal response to a worldwide calamity that has killed more than a half-million Americans.

Explanations about what went wrong have devolved into partisan finger pointing, with Mr. Trump blaming the Obama administration for leaving the cupboard bare, and Democrats in Congress accusing Mr. Trump of negligence.

An investigation by The New York Times found a hidden explanation: Government purchases for the Strategic National Stockpile, the country’s emergency medical reserve where such equipment is kept, have largely been driven by the demands and financial interests of a handful of biotech firms that have specialized in products that address terrorist threats rather than infectious disease.

Chief among them is Emergent BioSolutions, a Maryland-based company now manufacturing Covid-19 vaccines for AstraZeneca and Johnson & Johnson. Last year, as the pandemic raced across the country, the government paid Emergent $626 million for products that included vaccines to fight an entirely different threat: a terrorist attack using anthrax.

Throughout most of the last decade, the government has spent nearly half of the stockpile’s half-billion-dollar annual budget on the company’s anthrax vaccines, The Times found. That left the government with less money to buy supplies needed in a pandemic, despite repeatedly being advised to do so.

Under normal circumstances, Emergent’s relationship with the federal stockpile would be of little public interest — an obscure contractor in an obscure corner of the federal bureaucracy applying the standard tools of Washington, like well-connected lobbyists and campaign contributions, to create a business heavily dependent on taxpayer dollars.

Security concerns, moreover, keep most information about (p. 18) stockpile purchases under wraps. Details about the contracts and inventory are rarely made public, and even the storage locations are secret.

But with the stockpile now infamous for what it doesn’t have, The Times penetrated this clandestine world by examining more than 40,000 pages of documents, some previously undisclosed, and interviewing more than 60 people with inside knowledge of the stockpile.

Former Emergent employees, government contractors, members of Congress, biodefense experts and current and former officials from agencies that oversee the stockpile described a deeply dysfunctional system that contributed to the shocking shortages last year. Their accounts were confirmed by federal budget and contracting records, agency planning documents, court filings, corporate disclosures and transcripts of congressional hearings and investor presentations. Continue reading “Federal Central Planners (and Cronies) Spent Hundreds of Millions of Strategic National Stockpile Funds on Emergent’s Outdated, Marginal Anthrax Vaccine, Leaving N95 Masks Unfunded”

Entrepreneur Pan Leaves Communist China After Xi Arrests Human Rights Defender and Friend

(p. B1) China’s economy is on a tear. Factories are humming, and foreign investment is flowing in. Even so, the wealthy and powerful people atop some of the country’s most prominent companies are heading for the exits.

The latest are Pan Shiyi and Zhang Xin, the husband-and-wife team that runs Soho China, a property developer known for its blobby, futuristic office buildings. In striking a deal this week to sell a controlling stake to the investment giant Blackstone for as much as $3 billion, Mr. Pan and Ms. Zhang are turning over the company as high-profile entrepreneurs come under public and official scrutiny in China like never before.

. . .

(p. B5) “For big tycoons in China, nowadays they need to be careful in general,” said Ling Chen, who studies state-business relations in China at the School of Advanced International Studies at Johns Hopkins University.

. . .

Mr. Pan was . . . one of the first Chinese business leaders to recognize the power of the internet in marketing and public relations. He wrote a popular blog in the 2000s. Then, when the Twitter-like social media platform Weibo came along, he quickly became one of its most influential voices, amassing more than 20 million followers.

. . .

He was never too pointed in expressing his opinions. But he wanted China to learn from its mistakes, such as its cruel treatment of the moneyed and educated classes during the Cultural Revolution.

After Mr. Xi took office as China’s top leader in 2013, the authorities began going after businesspeople and intellectuals with big online followings. The police that year arrested Wang Gongquan, a friend of Mr. Pan’s and supporter of human rights causes, on charges of disrupting public order.

Mr. Pan and Ms. Zhang began selling off property holdings in China and spending more time in the United States.

For the full story, see:

Raymond Zhong. “A Chinese Power Couple Cashes Out.” The New York Times (Friday, June 18, 2021): B1 & B5.

(Note: ellipses added.)

(Note: the online version of the story has the date June 17, 2021, and has the title “As China Scrutinizes Its Entrepreneurs, a Power Couple Cashes Out.”)

To Extort U.S. Firms, Xi Passes Laws that Firms Cannot Obey

(p. B1) Doug Guthrie spent 1994 riding a single-speed bicycle between factories in Shanghai for a dissertation on Chinese industry. Within years, he was one of America’s leading experts on China’s turn toward capitalism and was helping companies venture East.

Two decades later, in 2014, Apple hired him to help navigate perhaps its most important market. By then, he was worried about China’s new direction.

China’s new leader, Xi Jinping, was leaning on Western companies to strengthen his grip on the country. Mr. Guthrie realized that few companies were bigger targets, or more vulnerable, than Apple. It assembled nearly every Apple device in China and had made the region its No. 2 sales market.

So Mr. Guthrie began touring the company with a slide show and lecture to ring the alarm. Apple, he said, had no Plan B.

“I was going around to business leaders, and I’m like: ‘Do you guys understand who Xi Jinping is? Are you listening to what’s going on here?’” Mr. Guthrie said in an interview. “That was my big calling card.”

His warnings were prescient. China has taken a nationalist, au-(p. B3)thoritarian turn under Mr. Xi, and American companies like Apple, Nike and the National Basketball Association are facing a dilemma. While doing business in China often remains lucrative, it also increasingly requires uncomfortable compromises.

That trend raises the question of whether, instead of empowering the Chinese people, American investment in the country has empowered the Chinese Communist Party.

. . .

Mr. Guthrie’s career arc and evolving view of China tell the story of Western industry’s complicated dance with the country over the past three decades. Mr. Guthrie and many executives, politicians and academics had bet that Western investment in China would lead the country to liberalize. It is now clear that they miscalculated.

“We were wrong,” said Mr. Guthrie, who left Apple in 2019. “The wild card was Xi Jinping.”

In recent years, China shut down Marriott’s website after it listed Tibet and Taiwan as separate countries in a customer survey. It suspended sign-ups to LinkedIn after the site failed to censor enough political content. And the Communist Party urged a boycott of Western apparel companies that criticized forced-labor practices in Xinjiang, a Chinese region where the government is repressing Uyghurs, the country’s Muslim ethnic minority.

. . .

In 2014, China’s so-called dispatch labor law went into effect, limiting the share of temporary workers in a company’s work force to 10 percent. From Day 1, Apple and its suppliers were in violation.

At a Foxconn plant in Zhengzhou, China, the world’s biggest iPhone factory, temporary workers made up as much as half of the work force, according to a report by China Labor Watch, an advocacy group. After the report, Apple confirmed that the factory broke the law.

Apple executives were concerned and confused, Mr. Guthrie said. They knew the company couldn’t comply because it needed the extra workers to meet periods of intense demand, such as the holidays.

. . .

“‘This is the point. You are supposed to be out of compliance,’” he said he had told them. “‘Not so they can shut you down, but so you’ll figure out what they want you to do and figure out how to do it.’”

Mr. Guthrie, who is often tucking his long, graying hair behind his ears, began giving his lecture on Apple’s risk in China around that time. Its extreme reliance on the country left it with little leverage to resist.

Apple continued to grapple with demands from the government.

. . .

To measure the success of their lobbying, Apple executives looked to the government’s annual corporate social responsibility scores, a proxy for the Communist Party’s view of a company.

. . .

Apple’s score steadily improved. From 2016 to 2020, its ranking among all companies in China rose from No. 141 to No. 30.

Apple didn’t always successfully resist the government’s demands. Over that period, Mr. Cook had agreed to store his Chinese customers’ private data — and the digital keys to unlock that data — on computer servers owned and run by the Chinese government.

For the full story, see:

Jack Nicas. “A Warning On China Is Prescient For Apple.” The New York Times (Friday, June 18, 2021): B1 & B3.

(Note: ellipses added.)

(Note: the online version of the story has the date June 17, 2021, and has the title “He Warned Apple About the Risks in China. Then They Became Reality.”)

Nanosatellites May Be a General Purpose Technology

(p. B4) Scientists who track the health of Adélie penguins on the ice-covered wastes of Antarctica are managing their cameras from thousands of miles away—via tiny satellites orbiting above our heads.

Energy companies are exploring using the same technology for monitoring hard-to-reach wind farms; logistics companies for tracking shipping containers; and agribusiness companies for minding cattle. It even helped National Geographic track a discarded plastic bottle from Bangladesh to the Indian Ocean.

In the near future, it isn’t unreasonable to imagine this evolving satellite technology could put a distress beacon in every automobile, allow remote monitoring of wildlife in any environment on earth, and track your Amazon shipment—not just when it’s on a truck, but backward, all the way to the factory that produced it. And it could be done at a fraction of the cost of earlier satellite tracking systems.

These novel networks of nanosats—aka cubesats—are a result of a number of factors.

First, the satellites themselves are smaller, cheaper and more capable than ever. The smartphone industry has miniaturized all electronics, benefiting everything from cars to drones. Then there are falling launch costs, due to companies like SpaceX, active national space programs like India’s, and an array of new launch technologies, from reusable boosters to 3-D-printed engines.

Just as important, there’s the rollout and adoption of new long-distance, low-power wireless communication standards that can work just as well in outer space as they do on the ground.

Like so many innovations in their early days, from the internet to the smartphone, no one is quite sure what low-cost, low-power data relays from space will enable—or whether there will be enough demand to sustain the many companies jostling to provide it. In the next year, hundreds of satellites from more than a dozen companies are set to launch.

For the full commentary, see:

Christopher Mims. “A March of Penguins and Progress.” The Wall Street Journal (Saturday, Jan. 9, 2021): B4.

(Note: the online version of the commentary has the date January 8, 2021, and has the title “The Tiny Satellites That Will Connect Cows, Cars and Shipping Containers to the Internet.”)

Covid-19 Patents Provide Funding for Development of Future Vaccines

(p. A25) South Africa and India have petitioned the World Trade Organization to suspend some intellectual property protections from Covid-19 drugs, vaccines and diagnostic technologies. In support of the effort, Doctors Without Borders began a social media campaign urging governments to “put lives over profits,” warning of “pharma profiteering” and urging support for “#NoCovidMonopolies.”

. . .

Intellectual property rights, including patents, grant inventors a period of exclusivity to make and market their creations. By affording these rights to those who create intangible assets, such as musical compositions, software or drug formulas — people will invent more useful new things.

Development of a new medicine is risky and costly. Consider that scientists have spent decades — and billions of dollars — working on Alzheimer’s treatments, but still have little to show for it. The companies and investors who fund research shoulder so much risk because they have a shot at a reward. Once a patent expires, generic companies are free to produce the same product. Intellectual property rights underpin the system that gives us all new medicines, from psychiatric drugs to cancer treatments.

. . .

Eroding patent protections has far-reaching consequences.

Take “messenger RNA,” the technology platform that supports the vaccines from Pfizer-BioNTech and Moderna. Ozlem Tureci and Ugur Sahin, the wife-and-husband team at the helm of BioNTech, began exploring the use of mRNA more than 25 years ago and founded their company in 2008. Theoretically, mRNA can instruct the body to engineer proteins, including ones that increase immunity against infectious pathogens, cancers and rare genetic conditions. But the Covid-19 vaccines are the first truly successful applications of this technology. Scientists eager to explore future uses of mRNA will struggle to find investment if intellectual property protections are snatched away when others deem it necessary.

For the full commentary, see:

Thomas Cueni. “The Risk in Suspending Vaccine Patent Rules.” The New York Times (Saturday, December 12, 2020): A25.

(Note: ellipses added.)

(Note: the online version of the commentary has the date Dec. 10, 2020, and has the same title as the print version.)

Entrepreneur Roger’s Reward for Solving a Puzzle: “A Bigger and More Complicated Puzzle”

(p. C6) Growing up in Battle Ground, Wash., James Rogers wanted to be an inventor.

. . .

Some 25 years since those afternoons with his “invention journal,” Mr. Rogers, 35, is now promoting a scientific discovery that could improve the global food-supply chain. His company, Apeel, applies an edible, plant-based coating to fruits and vegetables that extends their shelf life without refrigeration.

Apeel-treated avocados, limes, apples and cucumbers are already in some of the largest grocery chains in the U.S. and Europe. The startup now plans to expand into markets in Asia, Africa and Latin America, thanks to a $30 million investment from the International Finance Corp., the World Bank’s private-sector arm. The company Mr. Rogers launched in 2012 as a Ph.D. student is now valued at more than $1 billion.

. . .

Mr. Rogers has had to prove that more time not only reduced waste but also boosted sales. According to the Edeka Group, which runs more than 11,000 grocery stores in Germany, a pilot launch of Apeel avocados in nearly 3,000 stores in 2020 resulted in 50% less waste and a 20% rise in sales. Edeka swiftly agreed to carry Apeel avocados, oranges and clementines across all of its stores.

. . .

Mr. Rogers had been a student all his life when he launched Apeel at age 27. Did his youth and inexperience create problems? “It may have helped,” he says. “I didn’t know what I didn’t know, so I wasn’t overwhelmed.”

He has discovered, for example, that every fruit and vegetable has its own idiosyncratic supply chain, and Apeel works to pinpoint where time has the most value. He has also learned that delivering avocados to Europeans throughout the year means working with lots of different countries (Chile, Israel, Morocco, South Africa, etc.), each of which has its own unique supply chain, regulatory hurdles and distinct avocado.

“Working at a startup, you just have to really love puzzles,” he says. “Your reward for solving your current puzzle? A bigger and more complicated puzzle.”

For the full story, see:

Emily Bobrow. “WEEKEND CONFIDENTIAL; James Rogers.” The Wall Street Journal (Saturday, Jan. 9, 2021): C6.

(Note: ellipses added.)

(Note: the online version of the story has the date January 8, 2021, and has the title “WEEKEND CONFIDENTIAL; Apeel CEO James Rogers Wants to Extend the Shelf Life of Your Avocados and Oranges.”)

Can the Methods of ACT UP Bring Quicker Cures for Other Maladies?

Amar Bhidé has a thought-provoking article in which he asks the public choice question of how to overcome government regulators who slow the development of breakthrough drugs. He holds up, as a main example to ponder, the AIDs ACT UP movement that is often given credit for winning concessions from the FDA that spurred the availability of a drug cocktail that greatly extended and improved the lives of AIDs patients. The passages quoted below are from a review of a book that may be a promising source for learning more about what ACT UP did and how they did it.

(p. C3) In her 2012 book, “The Gentrification of the Mind,” Sarah Schulman delved into the silence still surrounding AIDS in America.

. . .

Schulman has gone from witness to a sort of living archive. She is a former member of AIDS Coalition to Unleash Power, the influential direct-action group committed to ending AIDS. Her new book, “Let the Record Show,” is based on 17 years of interviews she conducted with nearly 200 members of the organization.

. . .

The effect is rather like standing in the middle of that large room, where anyone could speak up and share an idea. Everyone is talking; small stories branch off, coalesce pages later. Speakers shade in one another’s stories, offer another angle, disagree passionately. You turn a page, and the same people have their arms linked together at a protest. Shadows start to fall; in squares of gray text, deaths are marked, moments for remembrance. So many people leave the room.

. . .

This is not reverent, definitive history. This is a tactician’s bible.

The organizational brilliance of ACT UP emerged out of necessity. The group was founded in 1987, incited by Larry Kramer’s famous call to action. The members were infected, their lovers were sick and dying. There wasn’t time to obsess over process, to contest every comma in a letter. The anarchistic framework asked only that members be “committed to direct action to end the AIDS crisis.”

. . .

When Schulman herself returns to the individual, it is to think again about the figure of the bystander. Why did these particular people rise to the moment and not others?

What thread connected an H.I.V.-positive stockbroker, a retired chemist from Queens, addicts, art students, lifelong activists, people who just happened to be in the next room at the center and wandered in, What was going on in there? For some it was their first experience of gay community; for others it was where they went when the community began to vanish. All of them became autodidacts in drug research, policy, media relations.

For the full review, see:

Parul Sehgal. “Remembering Those Who Stood Up.” The New York Times (Wednesday, May 5, 2021): C3.

(Note: ellipses added. In the original, the words NOT italicized above, were the only words that WERE italicized.)

(Note: the online version of the review has the date May 4, 2021, and has the title “A New Testament to the Fury and Beauty of Activism During the AIDS Crisis.”)

The book under review is:

Schulman, Sarah. Let the Record Show: A Political History of ACT UP New York, 1987-1993. New York: Farrar, Straus and Giroux, 2021.

The article mentioned above by Bhidé is:

Bhidé, Amar. “Constraining Knowledge: Traditions and Rules That Limit Medical Innovation.” Critical Review 29, no. 1 (Jan. 2017): 1-33.

Risk Averse Family Firms with Large Cash Reserves Can Last 1,000 Years

Is longevity for firms a noble goal? Or do humans usually flourish more in the churn of creative destruction?

(p. B1) KYOTO, Japan — Naomi Hasegawa’s family sells toasted mochi out of a small, cedar-timbered shop next to a rambling old shrine in Kyoto. The family started the business to provide refreshments to weary travelers coming from across Japan to pray for pandemic relief — in the year 1000.

Now, more than a millennium later, a new disease has devastated the economy in the ancient capital, as its once reliable stream of tourists has evaporated. But Ms. Hasegawa is not concerned about her enterprise’s finances.

Like many businesses in Japan, her family’s shop, Ichiwa, takes the long view — albeit longer than most. By putting tradition and stability over profit and growth, Ichiwa has weathered wars, plagues, natural disasters, and the rise and fall of empires. Through it all, its rice flour cakes have remained the same.

Such enterprises may be less dynamic than those in other countries. But their resilience offers lessons for businesses in places like the United States, where the coronavirus has forced tens of thousands into bankruptcy.

“If you look at the economics textbooks, enterprises are supposed to be maximizing profits, scaling up their size, market share and growth rate. But these companies’ operating principles are completely different,” said Kenji Matsuoka, a professor emeritus of business at Ryukoku University in Kyoto.

(p. B5) “Their No. 1 priority is carrying on,” he added. “Each generation is like a runner in a relay race. What’s important is passing the baton.”

Japan is an old-business superpower. The country is home to more than 33,000 with at least 100 years of history — over 40 percent of the world’s total, according to a study by the Tokyo-based Research Institute of Centennial Management. Over 3,100 have been running for at least two centuries. Around 140 have existed for more than 500 years. And at least 19 claim to have been continuously operating since the first millennium.

. . .

The businesses, known as “shinise,” are a source of both pride and fascination.

. . .

Most of these old businesses are, like Ichiwa, small, family-run enterprises that deal in traditional goods and services. But some are among Japan’s most famous companies, including Nintendo, which got its start making playing cards 131 years ago, and the soy sauce brand Kikkoman, which has been around since 1917.

. . .

The Japanese companies that have endured the longest have often been defined by an aversion to risk — shaped in part by past crises — and an accumulation of large cash reserves.

It is a common trait among Japanese enterprises and part of the reason that the country has so far avoided the high bankruptcy rates of the United States during the pandemic. Even when they “make some profits,” said Tomohiro Ota, an analyst at Goldman Sachs, “they do not increase their capital expenditure.”

Large enterprises in particular keep substantial reserves to ensure that they can continue issuing paychecks and meet their other financial obligations in the event of an economic downturn or a crisis. But even smaller businesses tend to have low debt levels and an average of one to two months of operating expenses on hand, Mr. Ota said.

For the full story, see:

Ben Dooley and Hisako Ueno. “A Family Business Got Its Start In a Pandemic (1,000 Years Ago).” The New York Times (Saturday, December 5, 2020): B1 & B5.

(Note: ellipses added.)

(Note: the online version of the story was updated Jan. 7, 2021, and has the title “This Japanese Shop Is 1,020 Years Old. It Knows a Bit About Surviving Crises.”)

Older Americans Shifting to Entrepreneurship at Faster Pace

(p. B6) In April [2020], Dave Summers lost his job as director of digital media productions at the American Management Association, a casualty of layoffs brought on by the pandemic.

Mr. Summers, 60, swiftly launched his own business as a digital media producer, coach and animator who creates podcasts, webcasts and video blogs.

And in September, he and his wife, who teaches nursery school, moved from Danbury, Conn., to Maryville, Tenn., which they discovered while visiting their son in Nashville. “My new work is all virtual, so I can live anywhere,” he said. “Not only is it a cheaper place to live, we love hiking and the outdoors, and our new town is in the foothills of the Great Smoky Mountains.”

Droves of small businesses have been shuttered by the economic fallout of the coronavirus, but for Mr. Summers, starting a new one was the best option.

“I’m not sitting on a massive nest egg, so I need to work to keep afloat,” he said. “It’s also about being healthy and happy. I can’t just retire because underneath it all I’m creative, and I have to be busy doing stuff and helping people tell their stories.”

While the coronavirus pandemic is causing many older workers who have lost jobs, or who have been offered early retirement severance packages, to decide to leave the work force, others like Mr. Summers are shifting to entrepreneurship.

In fact, older Americans had already been starting new businesses at a fast rate. In 2019, research from the Kauffman Foundation, a nonpartisan group supporting entrepreneurship, found that more than 25 percent of new entrepreneurs were ages 55 to 64, up from about 15 percent in 1996.

Across the age spectrum, there has been a rise in new business start-ups since May [2020], according to the Census Bureau. The surge is likely “powered by newly unemployed individuals opting to start their own businesses, either by choice or out of necessity,” according to the Economic Innovation Group, a bipartisan public policy organization.

. . .

It turns out that the importance of entrepreneurship, or self-employment as a form of work, increases significantly with age, according to a report by Cal J. Halvorsen and Jacquelyn B. James of the Center on Aging & Work at Boston College.

According to the report: “While about one in six workers in their 50s are self-employed, nearly one in three are self-employed in their late 60s and more than 1 in 2 workers over the age of 80 are self-employed.

For the full story, see:

Kerry Hannon. “Older Americans Make a New Start in a Business of Their Own.” The New York Times (Friday, November 27, 2020): B6.

(Note: ellipsis, and bracketed year, added.)

(Note: the online version of the story has the date Oct. [sic] 21, 2020, and has the title “Making a New Start in a Business of Their Own.”)