Zoning Regulations Restrict Building Affordable Homes

(p. A25) Although zoning may seem like a technical, bureaucratic and decidedly local question, in reality the issue relates directly to three grand themes that Joe Biden ran on in the 2020 campaign: racial justice, respect for working-class people and national unity. Perhaps no single step would do more to advance those goals than tearing down the government-sponsored walls that keep Americans of different races and classes from living in the same communities, sharing the same public schools and getting a chance to know one another across racial, economic and political lines.

Economically discriminatory zoning policies — which say that you are not welcome in a community unless you can afford a single-family home, sometimes on a large plot of land — are not part of a distant, disgraceful past. In most American cities, zoning laws prohibit the construction of relatively affordable homes — duplexes, triplexes, quads and larger multifamily units — on three-quarters of residential land.

For the full commentary, see:

Richard D. Kahlenberg. “Zoning Is a Social Justice Matter.” The New York Times (Tuesday, April 20, 2021): A25.

(Note: the online version of the commentary has the date April 19, 2021, and has the title “The ‘New Redlining’ Is Deciding Who Lives in Your Neighborhood.”)

Mundell and Laffer Agreed High Taxes Hurt Poor

(p. A12) Robert A. Mundell began to make his name in the 1960s as a maverick economist eager to challenge his more orthodox colleagues. He ended up influencing mainstream economic policy in the U.S. and Europe in profound ways that few of his peers could have imagined.

. . .

Dr. Mundell’s influence on U.S. economic policy also dates to the 1960s. He was teaching at the University of Chicago when he met Arthur Laffer in 1967. Dr. Laffer, a Stanford-educated economist, later recalled their first meeting as a shock. “In walked a sallow, tousle-headed, pipe-smoking figure wearing a faded trench coat belted with a clothesline cord,” Dr. Laffer wrote.

The disheveled Dr. Mundell and the buttoned-down Dr. Laffer agreed that steeply progressive taxes were deterring investment and employment in ways that hurt the poor.

In the 1970s, Dr. Mundell argued that the U.S. should defy conventional economic wisdom by raising interest rates to protect the dollar’s value while reducing taxes to stimulate the economy. “I knew I was in the minority,” he said in an 1988 interview. “But I thought my vote should count much more than the others because I understood the subject.”

Dr. Laffer introduced Dr. Mundell and his ideas to Jude Wanniski and Robert Bartley of The Wall Street Journal editorial pages, whose work influenced Republican politicians including Jack Kemp and Mr. Reagan.

For the full obituary, see:

James R. Hagerty. “Canadian Economist Inspired U.S. Tax Cuts.” The Wall Street Journal (Saturday, April 6, 2021): A12.

(Note: ellipsis added.)

(Note: the online version of the obituary has the date April 9, 2021, and has the title “Robert Mundell Helped Inspire U.S. Tax Cuts and the Euro.” In the last paragraph quoted above, the online version mentions Jack Kemp. The print version did not.)

Amazon Workers Can Flourish Without Unions

(p. A1) Amazon workers at a giant warehouse in Alabama voted decisively against forming a union on Friday, squashing the most significant organizing drive in the internet giant’s history and dealing a crushing blow to labor and Democrats when conditions appeared ripe for them to make advances.

Workers cast 1,798 votes against a union, giving Amazon enough to emphatically defeat the effort. Ballots in favor of a union trailed at 738, fewer than 30 percent of the votes tallied, according to federal officials.

. . .

(p. A17) William and Lavonette Stokes, who started work at the Bessemer warehouse in July, said the union had failed to convince them how it could improve their working conditions. Amazon already provides good benefits, relatively high pay that starts at $15 an hour and opportunities to advance, said the couple, who have five children.

“Amazon is the only job I know where they pay your health insurance from Day 1,” Ms. Stokes, 52, said. She added that she had been turned off by how organizers tried to cast the union drive as an extension of the Black Lives Matter movement because most of the workers are Black.

“This was not an African-American issue,’’ said Ms. Stokes, who is Black. “I feel you can work there comfortably without being harassed.”

In a news conference organized by Amazon on Friday, Mr. Stokes and other workers said they had concerns that they wanted the company to address, like better training and anti-bias coaching for managers.

“We just feel like we can do it without the union,” he said. “Why pay the union to do what we can do ourselves?”

For the full story, see:

Karen Weise and Michael Corkery. “Major Setback to Labor As Amazon Employees Reject Unionization Bid.” The New York Times (Saturday, April 10, 2021): A1 & A17.

(Note: ellipsis added.)

(Note: the online version of the story has the date April 9, 2021, and has the title “Amazon Workers Vote Down Union Drive at Alabama Warehouse.”)

Unintended Consequences of Centralized Lockdown in India Spread Covid-19

(p. A1) SURAT, India — The crowds surged through the gates, fought their way up the stairs of the 160-year-old station, poured across the platforms and engulfed the trains.

It was May 5 [2020], around 10 a.m. Surat was beastly hot, 106 degrees. Thousands of migrant laborers were frantic to leave — loom operators, diamond polishers, mechanics, truck drivers, cooks, cleaners, the backbone of Surat’s economy. Two of them were Rabindra and Prafulla Behera, brothers and textile workers, who had arrived in Surat a decade ago in search of opportunity and were now fleeing disease and death.

. . .

They were among tens of millions of migrant workers stranded without work or food after Prime Minister Narendra Modi imposed a national coronavirus lockdown in March. By spring and summer, these workers were so desperate that the government provided emergency trains to carry them back to their home villages. The trains were called Shramik Specials, because shramik means “laborer” in Hindi.

But they became the virus trains.

India has now reported more coronavirus cases than any country besides the United States. And it has become clear that the special trains operated by the government to ease suffering — and to counteract a disastrous lack of lockdown planning — instead played a significant role in spreading the coronavirus into almost every corner of the country.

The trains became contagion zones: Every passenger was supposed to be screened for Covid-19 before boarding but few if any were tested. Social distancing, if promised, was nonexistent, as men pressed into passenger cars for journeys that could last days. Then the trains disgorged passengers into distant villages, in regions that before had few if any coronavirus cases.

. . .

(p. A12) On March 24 [2020], at 8 p.m., Mr. Modi hit the lockdown switch. In a televised address, he ordered the entire nation to stay inside their homes for three weeks — starting in four hours.

The decision was pure Modi: sudden, dramatic and firm, like when he abruptly wiped out nearly 90 percent of India’s currency bills in 2016, a bolt-from-the-blue measure that he said was necessary to fight corruption but proved economically devastating.

Prafulla and Rabindra Behera had just finished a dinner of rice, lentils and potatoes, their usual fare. They lived in squalid, bare rooms in Surat’s industrial zone, sleeping wall to wall on the floor with a half dozen other laborers. Within minutes of Mr. Modi’s address, they started getting calls.

“Everyone was thinking the same: This will be over soon and somehow we’ll pass the days,” Rabindra said.

At the time, India had fewer than 600 known virus cases.

Many experts have criticized Mr. Modi’s government for overlooking the plight of migrant laborers, who suddenly had no work, no income and no support network in the cities. The government’s Covid-19 task force lacked migrant specialists and was hardly representative of India. Of its 21 members, only two were women and the rest were largely upper-caste men. Many of the migrant laborers came from lower castes and economically underprivileged backgrounds.

. . .

In Surat, the Behera brothers were down to their last bag of rice. They could not work — the factories were closed. But they weren’t allowed to leave the city, where virus cases were beginning to surge.

“We were trapped,” Rabindra said.

On May 1, India’s Labor Day, the railways ministry made a grand announcement: Shramik Specials. Routes were drawn up from Surat, Mumbai, Chennai, New Delhi, Ahmedabad and other cities deep into rural areas.

. . .

The Beheras were told they would quarantine for 21 days at a center and each was given a toothbrush, a slice of soap, a bucket to wash with and a thin sheet to sleep on.

But the next morning, Prafulla awoke with a splitting headache. A doctor didn’t think he had coronavirus but suggested, as a precaution, that he be moved into the courtyard, away from the other men.

The following morning, Prafulla could barely breathe and called his wife on his cellphone.

“Come and bring the girls,” he whispered. “I need to see you.”

An hour later, he was dead. A subsequent test revealed that Prafulla Behera was Ganjam’s first coronavirus death.

For the full story, see:

Jeffrey Gettleman, Suhasini Raj, Sameer Yasir, Karan Deep Singh and Atul Loke. “Rails Spread Virus as Workers Fled India’s Cities.” The New York Times (Wednesday, December 16, 2020): A1 & A12-A13.

(Note: ellipses added.)

(Note: the online version of the story was updated Feb. [sic] 2, 2021, and has the title “The Virus Trains: How Lockdown Chaos Spread Covid-19 Across India.”)

Basing Jobs on Skills Instead of Credentials Increases Fairness, Efficiency, and Opportunity

(p. B5) For the past four decades, incomes rose for those with college degrees and fell for those without one. But a body of recent and new research suggests that the trend need not inevitably continue.

As many as 30 million American workers without four-year college degrees have the skills to realistically move into new jobs that pay on average 70 percent more than their current ones. That estimate comes from a collaboration of academic, nonprofit and corporate researchers who mined data on occupations and skills.

. . .

“We need to rethink who is skilled, and how skills are measured and evaluated,” said Peter Q. Blair, a labor economist at Harvard, who was a member of the research team.

In recent years, labor experts and work force organizations have argued that hiring should increasingly be based on skills rather than degrees, as a matter of fairness and economic efficiency. The research provides quantified evidence that such a shift is achievable.

. . .

The researchers published a broad look at the jobs, wages and skills of workers who have a high school diploma but not a four-year college degree as a National Bureau of Economic Research working paper this year. They found a significant overlap between the skills required in jobs that pay low wages and many occupations with higher pay — a sizable landscape of opportunity.

. . .

A report published this week, involving most of the same researchers, examined the pathways to higher-paying jobs for these workers, their experience and the obstacles encountered. It employed proprietary data and interviews, as well as the government data used in the first study.

For the full story, see:

Steve Lohr. “Up to 30 Million Workers in U.S. Have Abilities to Earn 70% More.” The New York Times (Monday, December 7, 2020): B5.

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

(Note: the online version of the story has the date Dec. 3, 2020, and has the title “Up to 30 Million in U.S. Have the Skills to Earn 70% More, Researchers Say.”)

The National Bureau of Economic Research (NBER) working paper mentioned above is:

Blair, Peter Q., Tomas G. Castagnino, Erica L. Groshen, Papia Debroy, Byron Auguste, Shad Ahmed, Fernando Garcia Diaz, and Cristian Bonavida. “Searching for Stars: Work Experience as a Job Market Signal for Workers without Bachelor’s Degrees.” National Bureau of Economic Research, Inc., NBER Working Paper #26844, March 2020.

The later report that used proprietary data and interviews is:

“Navigating with the Stars: Reimagining Equitable Pathways to Mobility.” Opportunity@Work, Nov. 2020.

Long Beach Supermarket Workers Lose Jobs Due to Higher Minimum Wage

(p. A15) As these things always do, it started out with the best intentions. In January [2021] the City Council of Long Beach, Calif., adopted an ordinance requiring large grocery-store chains to pay employees an extra $4 an hour. The idea was to reward them for the risks they took by doing their jobs amid the Covid-19 pandemic.

It didn’t turn out that way. In response to the ordinance, Kroger Co. announced it would close two Long Beach supermarkets.

. . .

As one of the world’s largest retailers, Kroger makes an easy villain. But instead of blaming “reckless capitalism,” might the fault lie with the reckless politicians who passed this measure? Thanks to their intervention, instead of finding an extra $4 an hour in their paychecks, nearly 200 grocery workers will now have no paychecks at all unless they are transferred to another store or find another job. It’s but the latest illustration of economist Thomas Sowell’s dictum that whatever a government might set it at, “the real minimum wage is always zero.”

For the full commentary, see:

William McGurn. “The Human Cost of a Minimum Wage.” The Wall Street Journal (Tuesday, February 16, 2021): A15.

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

(Note: the online version of the commentary has the date February 15, 2021, and has the same title as the print version.)

Raising Minimum Wage to $15 Will Likely Cause 16% Rise in Low-Skilled Job Loss

(p. A15) A recent Congressional Budget Office report estimated that 1.4 million jobs would be lost if a new $15 federal minimum wage is signed into law. Advocates were quick to dismiss the CBO’s conclusion. “It is not a stretch to say that a new consensus has emerged among economists that minimum wage increases have raised wages without substantial job loss,” said Heidi Shierholz of the Economic Policy Institute, which has also circulated a letter signed by economics Nobel laureates and others making the same claim.

. . .

To provide an accurate reading of the research, Peter Shirley and I surveyed the authors of nearly all U.S. studies estimating the effects of minimum wages on employment published in the past 30 years. We asked them to report to us their best estimate of the employment effect, measured as the “elasticity,” or the percent change in employment for each 1% change in the minimum wage. Most authors responded, and in the few cases in which they did not, we pulled this estimate from their study.

The results are stark. Across all studies, 79% report that minimum wages reduced employment. In 46% of studies the negative effect was statistically significant. In contrast, only 21% of studies found small positive effects of minimum wages on employment, and in only a minuscule percentage (4%) was the evidence statistically significant. A simplistic but useful calculation shows that the odds of nearly 80% of studies finding negative employment effects if the true effect is zero is less than one in a million.

Across all the studies, the average employment elasticity is about minus-0.15, which means, for example, that a 10% increase in the minimum wage reduces employment of the low-skilled by 1.5%. Extrapolating this to a $15 minimum wage, this 107% increase in the states where the federal minimum wage of $7.25 now prevails would imply a 16% decline in low-skilled employment (broadly consistent with the recent CBO study). That sounds like a substantial job loss.

For the full commentary, see:

David Neumark. “Raising the Minimum Wage Definitely Costs Jobs.” The Wall Street Journal (Friday, March 19, 2021): A15.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date March 18, 2021, and has the title “Raising the Minimum Wage Will Definitely Cost Jobs.”)

Gerardo Guillén García del Barco Wants to Build in Cuba “Without Being Hindered by Bureaucracy”

(p. A10) HAVANA — Car dealerships, book publishing and hedge funds are still prohibited. Bed-and-breakfasts are not. Zoos, scuba diving centers and weapons production remain banned. Veterinary services aren’t.

As Cuba’s Communist government continues its piecemeal expansion of the fledgling private sector, Cubans are carefully parsing a list of the economic activities that the government proposes to keep under its control.

. . .

The new list seems to open major new space for manufacturing. Cubans will now be able to apply for licenses to open cheese, paint and toy factories, for example, though the government has not yet defined the permitted size of such ventures.

While some Cubans hailed the list as an important step forward in the country’s economic liberalization, it left others complaining that the government had not gone far enough.

“It’s messed up,” said Gerardo Guillén García del Barco, 26, an architect in Havana whose profession the government plans to maintain under its sole control. “Every time something appears that looks like a panacea, it ends in nothing.”

“My dream is to do exactly what I’m doing today but within a legal framework,” he said, explaining that he left a government firm and now works freelance without a license. “I want to do my own architecture without being hindered by bureaucracy.”

. . .

Last Saturday [Feb. 6, 2021], in announcing the planned expansion of private economic activity, Marta Elena Feitó, Cuba’s labor and social security minister, said that the changes would “unleash the productive forces” of the population.

For the full story, see:

Ed Augustin and Kirk Semple. “Cubans Study a Shrinking List of Prohibited Private Enterprises.” The New York Times (Friday, February 12, 2021): A10.

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

(Note: the online version of the story has the date Feb. 11, 2021, and has the title “Cubans Study a Shrinking List of Banned Private Enterprises.”)

Cancelled Slate Podcaster “Heartsick” That Ideas Cannot Be Debated and Words Cannot Be Spoken

(p. B5) The online publication Slate has suspended a well-known podcast host after he debated with colleagues over whether people who are not Black should be able to quote a racial slur in some contexts.

. . .

Mr. Pesca explored the argument over the use of the slur in a 2019 podcast about a Black security guard who was fired for using it. In one recording of the episode, Mr. Pesca said, he used the term while quoting the man, but asked his producer to make a version without the term. After consultation with his producers and his supervisor, who objected to his quotation of the slur, they decided to go with the version without it, he said.

“The version of the story with the offensive word never aired, and this is how I think the editorial process should go,” Mr. Pesca said in the interview.

No action was taken against him after a human resources investigation into his quotation of the slur, Mr. Pesca said. He said he had apologized to the producers involved.

. . .

Mr. Pesca, who has worked at Slate for seven years, said he was “heartsick” over hurting his colleagues but added, “I hate the idea of things that are beyond debate and things that cannot be said.”

Jacob Weisberg, Slate’s former chairman and editor in chief, who left the company for the podcast start-up Pushkin in 2018, called Mr. Pesca “a huge talent and a fair-minded journalist.”

“I don’t think he did anything that merits discipline or consequences, and I think it’s an example of a kind of overreaction and a lack of judgment and perspective that is unfortunately spreading,” Mr. Weisberg said.

For the full story, see:

Katie Robertson and Ben Smith. “Podcast Host Suspended After Debate Over Slur.” The New York Times (Weds., February 24, 2021): B5.

(Note: ellipses added.)

(Note: the online version of the story has the date Feb. 22, 2021, and has the title “Slate Suspends Podcast Host After Debate Over Racial Slur.”)

$15 Minimum Wage Is “a Potentially Catastrophic Policy Error”

(p. A2) Opponents of a large increase say policy makers should be especially concerned with job losses in low-wage industries, such as the leisure and hospitality sector, which shed 3.8 million jobs last year.

More than 37% of workers who earned the federal minimum wage in 2019 were employed in restaurants, hotels and other parts of the hospitality sector, according to the Labor Department. Retail workers accounted for nearly 23% of minimum-wage earners, and education and health employees, including home health aides, represented 14%.

“It’s a potentially catastrophic policy error,” Kevin Hassett, former President Donald Trump’s top economic adviser, said of the $15 minimum wage. The pandemic, he said, pushed many small businesses to the brink of bankruptcy, but those restaurants and other firms are holding on, expecting profits later this year when the economy can open up. A minimum-wage increase would cut into those expected profits and cause businesses to close, he said. “It’s going to cost a lot of people their jobs.”

Mr. Hassett said low-wage workers have been disproportionately harmed by the pandemic, and that the government should support them through direct payments rather than mandating that private firms raise wages.

The nonpartisan Congressional Budget Office found in a 2019 study that raising the federal minimum wage to $15 an hour by 2025 could cost 1.3 million Americans their jobs. The same study found the higher level could boost the pay of about 27 million workers and lift 1.3 million Americans out of poverty.

For the full story, see:

Eric Morath. “Minimum-Wage Push Re-Ups Debate.” The Wall Street Journal (Thursday, February 4, 2021): A2.

(Note: the online version of the story was updated February 3, 2021, and has the title “Biden Wants a $15 Minimum Wage. Here’s What People Say It Would Do to the Economy.” The penultimate sentence quoted above, appears in the online, but in the print, version.)

The nonpartisan Congressional Budget Office study mentioned above is:

Congressional Budget Office. “The Effects on Employment and Family Income of Increasing the Federal Minimum Wage.” July 2019.

Nonpartisan CBO Estimates $15 Minimum Wage Would Cause 1.4 Million Job Loss

(p. B5) WASHINGTON — Raising the federal minimum wage to $15 an hour — a proposal included in the package of relief measures being pushed by President Biden — would add $54 billion to the budget deficit over the next decade, the Congressional Budget Office concluded on Monday [Feb. 8, 2021].

. . .

Critics of the plan noted a different element of the report: its forecast that raising the minimum wage to $15 would eliminate 1.4 million jobs by the time the increase takes full effect.

“Conservatives have been saying for a while that a recession is absolutely the wrong time to increase the minimum wage, even if it’s slowly phased in,” said Brian Riedl, a senior fellow at the Manhattan Institute. “The economy’s just too fragile.”

For the full story, see:

Jason DeParle. “$15 Minimum Wage Would Cut Poverty And 1.4 Million Jobs.” The New York Times (Tuesday, February 9, 2021): B5.

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

(Note: the online version of the story has the date Feb. 8, 2021, and has the title “Minimum Wage Hike Would Help Poverty but Cost Jobs, Budget Office Says.”)

The nonpartisan Congressional Budget Office report mentioned above is:

Congressional Budget Office. “The Budgetary Effects of the Raise the Wage Act of 2021.” Feb. 2021.