Category: Government

Incentive Packages to Big Incumbent Firms Hurt Local Start-Ups

(p. A1) When New Jersey announced a $7 billion package of tax incentives to try to lure Amazon’s second headquarters to Newark, local officials saw a chance to jump-start a city that has long struggled with poverty and joblessness.
Many economists, however, saw something else: a failed development strategy that they had hoped was falling out of favor.
. . .
(p. A15) Gina Schaefer, who owns a dozen hardware stores in the Washington area, said she did not mind paying taxes, and had learned to deal with the bureaucratic hurdles that come with running a small business in the area. But she said it was frustrating to watch local governments — three of the 20 finalists for the Amazon project are in the Washington area — roll out the red carpet for a multibillion-dollar corporation. Suddenly, she said, her tax dollars could be flowing to one of her most daunting competitors.
“There are no incentives for those of us who are already here,” Ms. Schaefer said. Alluding to Amazon’s chief executive, Jeff Bezos, she added, “Why should the richest man in the history of the world get money to open his business?”
Indeed, tax incentives tend to flow overwhelmingly to big, established companies, rather than to the local start-ups that research has shown are a more significant source of job growth. And some who have studied the issue say incentives rarely work: Companies will play cities and states off one another to save money, but ultimately base site-selection decisions mostly on other factors.

For the full story, see:
BEN CASSELMAN. “Risks for Cities In Sweetening Amazon’s Pot.” The New York Times (Sat., JAN. 27, 2018): A1 & A15.
(Note: ellipsis added.)
(Note: the online version of the story has the date JAN. 26, 2018, and has the title “Promising Billions to Amazon: Is It a Good Deal for Cities?”)

Trump Argues Regulations Impede Infrastructure Investment

(p. A18) Mr. Trump is pursuing a similar shift in regulation, seeking to reverse or rewrite a host of rules intended to protect workers and consumers, under the theory that freeing companies from “red tape” will allow businesses to prosper, with wide-ranging benefits.
In remarks at the White House last week, Mr. Trump argued that regulation was impeding private investment in infrastructure. He held up a long, multicolored chart that he said reflected the permitting process for the construction of “a highway or a roadway.”
“By the time you finished, you probably gave up,” Mr. Trump said.

For the full story, see:
BINYAMIN APPELBAUM and ANA SWANSON. “Trump Bets on Business to Lift Workers.” The New York Times (Thurs., December 21, 2017): A18.
(Note: the online version of the story has the date DEC. 20, 2017, and has the title “Republican Economic Policies Put Business First.” The online version says that the page number for the print New York edition was A19. My print paper was probably the midwest edition.)

Firms Invest in France as Rules “Make It Easier to Hire and Fire”

(p. B1) PARIS — The announcements came in a steady drumbeat. Around 1,300 job cuts at France’s biggest automaker. At least 2,500 at France’s largest supermarket chain. Over 200 sought at a major clothing retailer. And thousands more are on the way.
Just weeks after France’s labor overhaul went into effect, companies are readily taking advantage of new rules that make it easier to hire and fire.
. . .
Perceptions of France, long derided as a difficult place to do business for its onerous labor rules, are changing.
Growth has recently picked up after being stagnant for nearly five years. And there are signs that the changes, a major piece of the president’s economic program, are drawing the interest of investors.
Amazon will open a new distribution center south of Paris this year, creating over 1,000 jobs. Facebook and Google announced Monday they would invest in artificial intelligence development in France. Also Monday, Toyota announced it would invest 300 million euros, or $367 million, to increase capacity at a plant in northern (p. B3) France, creating up to 700 jobs through 2020.
“The complex labor laws have historically been the No. 1 obstacle to the competitiveness and attractiveness of France,” said Olivier Marchal, the chairman of Bain & Company France, a business consulting firm. The changes, together with other business-friendly measures such as a gradual reduction in the corporate tax, have “drastically changed investor perceptions,” he said.

For the full story, see:
LIZ ALDERMAN. “Newfound Freedom … to Fire.” The New York Times (Weds., January 24, 2018): B1 & B3.
(Note: ellipsis in article title, in original; ellipsis between quoted paragraphs, added.)
(Note: the online version of the story has the date JAN. 23, 2018, and has the title “French Companies Have Newfound Freedom … to Fire.”)

World War I Spread the Deadly Flu of 1918

(p. A17) The Spanish flu began in the spring of 1918, infected 500 million people, and killed between 50 million and 100 million of them–more than both world wars and the Holocaust combined. Not since the bubonic plague of the mid-14th century–the Black Death–had such a fearsome pestilence devastated mankind.
Spanish-flu patients “would soon be having trouble breathing,” writes Laura Spinney in “Pale Rider,” her gripping account of the pandemic.
. . .
Ms. Spinney is at her best in trying to tease out the real origin of the pandemic. The first suspect was China, where pneumonic plague had erupted on the Manchurian border in 1910. The government, trying to curry favor with the Allies in World War I, had then sent tens of thousands of laborers, many infected, to dig trenches on the Western Front. Another theory put the initial outbreak at the British army’s mobilization base in Étaples in northern France. A third candidate was in the American heartland, at a U.S. Army staging base, Camp Funston in Kansas. The question is unsettled, but plainly the movement of troops in the Great War accelerated the flu’s spread.
. . .
The frantic search for the cause of the pandemic was nightmarish, too. A respected researcher persuaded himself and others that he had found the bacillus, and he persisted even though autopsies rarely turned up his pet suspect in the tissues of the dead. The microbe hunters couldn’t find their quarry because it slipped through the ultrafine strainers they tried to catch it with, and it was invisible to their microscopes. It was what the French bacteriologist Émile Roux called an “être de raison,” an organism whose existence could be deduced only from its effects. Eventually a virus–1/20th the size of a bacillus–was identified as the culprit. It was not actually seen until decades later with the invention of the electron microscope.

For the full review, see:
Edward Kosner. “BOOKSHELF; A World Of Sickness; The Spanish flu of 1918-19 infected 500 million people, killing between 50 and 100 million. Its cause was discovered only decades later.” The Wall Street Journal (Monday, Dec. 11, 2017): A17.
(Note: ellipses added.)
(Note: the online version of the review has the date Dec. 10, 2017, and has the title “BOOKSHELF; Review: A World of Sickness; The Spanish flu of 1918-19 infected 500 million people, killing between 50 and 100 million. Its cause was discovered only decades later.”)

The book under review, is:
Spinney, Laura. Pale Rider: The Spanish Flu of 1918 and How It Changed the World. New York: PublicAffairs, 2017.

“New Jerseyans Are More Flammable than People in the Other 49 States”

(p. A17) At 12:01 a.m. on Jan. 1, New Jersey became the last state in the nation where drivers are not allowed to pump their own gasoline around the clock.
. . .
It is a distinction that makes Declan J. O’Scanlon Jr., a state lawmaker, spout frustration by the gallon.
“It’s ridiculous,” said Mr. O’Scanlon, a Republican assemblyman from Monmouth County who will soon take a seat in the State Senate. “If I want to pull in, get in and out quickly, I should be able to do so.”
Mr. O’Scanlon said that he frequently pumps his own gas, ignoring the Retail Gasoline Dispensing Safety Act of 1949, the statute that first forbade civilians from putting their grubby hands on the nozzle.
. . .
New Jersey legislators cited safety concerns when they passed the original law that barred residents from pumping gas almost 70 years ago. But when gas station owners challenged the ban in 1951, the state’s Supreme Court ruled that self-serve was indeed “dangerous in use.” And the ban held up, despite attempts to fight it in the 1980s.
In the rest of the country, self-service stations became the norm. Safer unleaded gasoline became more common, thanks to federal regulations, as did pumps that accepted credit cards. In most of the United States, that spelled the end of an era when attendants offered to wipe your windshield and check your oil while the tank filled up and you fumbled for a tip.
Mr. O’Scanlon is undeterred by the dual weights of history and public opinion. He said that he may bring a new proposal this year, just to keep the conversation alive. He said that economic arguments about jobs and safety are absurd, given that drivers in other states have been pumping their own gas for decades and lived to tell the tale.
“The only thing you could argue is that New Jerseyans are more flammable than people in the other 49 states,” he said. “Because we eat so much oily pizza, funnel cake and fries, maybe you could make that argument. Otherwise, it’s simply ridiculous.”

For the full story, see:
JONAH ENGEL BROMWICH. “New Jersey Is Last State to Insist at Gas Stations: Don’t Touch That Pump.” The New York Times (Sat., JAN. 6, 2018): A17.
(Note: ellipses added.)
(Note: the online version of the story has the date JAN. 5, 2018.)

“Reject the Dark Side: Free the Net!”

(p. C5) HEALY Matt, what’s a culture/politics tidbit most people don’t know?
FLEGENHEIMER Washington’s most prolific consumer of pop culture is very likely … Ted Cruz. Amateur “S.N.L.” historian, ’80s movie buff and instigator of a Twitter feud with Mark Hamill over net neutrality. He explained the meaning of “Star Wars” to Luke Skywalker. It was very Cruz: @HammillHimself Luke, I know Hollywood can be confusing, but it was Vader who supported govt power over everything said & done on the Internet. That’s why giant corps (Google, Facebook, Netflix) supported the FCC power grab of net neutrality. Reject the dark side: Free the net! Ted Cruz 12:25 PM – Dec 17, 2017
ROGERS ’80s movie buff?
FLEGENHEIMER “The Princess Bride”! Life on the campaign trail with Ted Cruz was basically months of “Princess Bride” imitations with an occasional discussion of Obamacare.

For the full commentary, see:
MATT FLEGENHEIMER and KATIE ROGERS. “‘S.N.L.’ Kimmel. Covfefe.” The New York Times (Weds., December 27, 2017): C1 & C5.
(Note: ellipsis, bold and caps, in original.).
(Note: the online version of the commentary has the date DEC. 26, 2017, and has the title “Kimmel, Covfefe, ‘Wonder Woman’: Washington on Pop Culture in 2017.” The commentary/discussion is credited to Flegenheimer and Rogers, but Patrick Healy also participated. There are a few minor differences in how the print and online versions present the Cruz tweet. The quote above, follows the print version.)

Tax Overhaul “Armageddon”

(p. A19) To travel the liberal byways of social media over recent weeks was to learn that Donald Trump was on the precipice of axing Robert Mueller and was likely to use the days just before Christmas, when we were distracted by eggnog and mistletoe, to lower the blade.
Christmas has come. Christmas has gone. Mueller has not.
To listen to Nancy Pelosi and other Democratic leaders, the tax overhaul that Trump just signed into law is no mere plutocratic folly. It’s “Armageddon” (Pelosi’s actual word). Their opposition is righteous, but how will millions of voters who notice smaller withholdings from their paychecks and more money in their pockets square that seemingly good fortune with such prophecies of doom on a biblical scale?
Some of these Americans may decide that the prophets aren’t to be trusted — and that the president isn’t quite the pestilence they make him out to be.

For the full commentary, see:
Bruni, Frank. “The Dangers Of Trump Delirium.” The New York Times (Weds., December 27, 2017): A19.
(Note: the online version of the commentary has the date DEC. 26, 2017, and has the title “The End of Trump and the End of Days.”)

Supersonic Technology Constrained by Regulators

(p. B5) Japan Airlines Co. 9201 -0.09% has become the first carrier to invest in Boom Technology Inc., a U.S. startup seeking to build a faster-than-sound airliner capable of flying more than four dozen premium passengers to Tokyo from the West Coast in roughly five hours.
. . .
With a one-third scale version now scheduled to start flight tests in late 2018–nearly a year later than initially planned–JAL’s involvement is expected to influence cabin design and various operational issues. Blake Scholl, Boom’s founder and chief executive, said such cooperation is intended “to determine whether airlines will really be happy to have this airliner in their fleets,” including from a maintenance perspective.
. . .
Boom’s project has initial support from several venture funds and is taking an unusual approach by adopting various technologies already certified by regulators.

For the full story, see:
Andy Pasztor. “Supersonic Jet Gets Boost.” The Wall Street Journal (Weds., Dec. 6, 2017): B5.
(Note: ellipses added.)
(Note: the online version of the story has the date Dec. 5, 2017, and has the title “Japan Airlines Invests in Fledgling Supersonic Aircraft Company.” The online version differs significantly in wording from the print version. Where different, the passages quoted above, follow the online wording.)

Hundreds of Thousands of Californians Moving to Texas, Arizona and Nevada

(p. A18) For more than three decades, California has seen a net outflow of residents to other states, as less expensive southern cities like Phoenix, Houston and Raleigh supplant those of the Golden State as beacons of opportunity.
. . .
. . . , for many Californians, the question is always sitting there: Is this worth it? Natural disasters are a moment to take stock and rethink the dream. But in the end, the calculation almost always comes down to cost.
. . .
California was once a migration magnet, but since 2010 the state has lost more than two million residents 25 and older, including 220,000 who moved to Texas, according to census data. Arizona and Nevada have each welcomed about 180,000 California expatriates since the start of the decade.

For the full story, see:
CONOR DOUGHERTY. “Californians Brave Fires, but Flee Cost of Living.” The New York Times (Weds., DEC. 13, 2017): A1 & A18.
(Note: ellipses added.)
(Note: the online version of the story has the date DEC. 12, 2017, and has the title “Quakes and Fires? It’s the Cost of Living That Californians Can’t Stomach.”)

Enforcing New Blood Pressure Guidelines May Lead to Serious Falls

(p. A23) “Under New Guidelines, Millions More Americans Will Need to Lower Blood Pressure.” This is the type of headline that raises my blood pressure to dangerously high levels.
. . .
The new recommendation is principally in response to the results of a large, federally funded study called Sprint that was published in 2015 in The New England Journal of Medicine.
. . .
A blood pressure of 130 in the Sprint study may be equivalent to a blood pressure of 140, even 150, in a busy clinic. A national goal of 130 as measured in actual practice may lead many to be overmedicated — making their blood pressures too low.
. . .
Serious falls are common among older adults. In the real world, will a nationwide target of 130, and the side effects of medication lowering blood pressure, lead to more hip fractures? Ask your doctors. See what they think.
. . .
I suspect many primary-care practitioners will want to ignore this new target. They understand the downsides of the relentless expansion of medical care into the lives of more people. At the same time, I fear many will be coerced into compliance as the health care industry’s middle management translates the 130 target into a measure of physician performance. That will push doctors to meet the target using whatever means necessary — and that usually means more medications.
So focusing on the number 130 not only will involve millions of people but also will involve millions of new prescriptions and millions of dollars. And it will further distract doctors and their patients from activities that aren’t easily measured by numbers, yet are more important to health — real food, regular movement and finding meaning in life. These matter whatever your blood pressure is.

For the full commentary, see:
H. GILBERT WELCH. “Rethinking Blood Pressure Advice.” The New York Times (Thurs., NOV. 16, 2017): A23.
(Note: ellipses added.)
(Note: the online version of the commentary has the date NOV. 15, 2017, and has the title “Don’t Let New Blood Pressure Guidelines Raise Yours.”)

Welch has a book that makes a similar point, though more broadly, to that made in the passages quoted above:
Welch, H. Gilbert. Less Medicine, More Health: 7 Assumptions That Drive Too Much Medical Care. Boston, MA: Beacon Press, 2015.

Union Blocks Firing of Teachers Who Do Not Teach

(p. A1) Francis Blake has not held a permanent position in a New York City public school in at least five years. At his last job, in a Bronx elementary school, records show he was disciplined for incompetence, insubordination and neglect of duties — he had been caught sleeping in a classroom when he was supposed to be helping with dismissal.
Felicia Alterescu, a special-education teacher, has been without a permanent post since 2010, despite high demand for special education teachers. According to records, in addition to getting a string of unsatisfactory ratings, she was disciplined for calling in sick when she actually went to a family reunion. She also did not tell the Education Department that she had been arrested on harassment charges.
This month, Mr. Blake, Ms. Alterescu and hundreds of other teachers who are part of a pool known as the Absent Teacher Reserve could be permanently back in classrooms, as the city’s Education Department places them in jobs at city schools.
The reserve is essentially a parking lot for staff members who have lost their positions, some because of school closings and budget cuts, others because of disciplinary problems, but cannot be fired. It grew significantly as a result of a 2005 deal between the Bloomberg administration, which wanted to give principals control over hiring, and the teachers’ un-(p. A17)ion. Since then, the union has fiercely protected the jobs of teachers in the reserve, resisting attempts to put a time limit on how long a teacher can remain there.

For the full story, see:
KATE TAYLOR. “Caught Sleeping or Worse, Idled Teachers Head Back to Class.” The New York Times (Sat., OCT. 23, 2017): A1 & A17.
(Note: the online version of the story has the date OCT. 22, 2017, and has the title “Caught Sleeping or Worse, Troubled Teachers Will Return to New York Classrooms.”)