E.S.G.–“Extremely Silly Grandstanding”

Source of graphic: online version of the NYT article quoted and cited below.

(p. B1) E.S.G. — which refers to environmental, social and governance standards — has become a point of contention for red-state legislators defending the fossil fuel industries that employ their residents.

. . .

(p. B4) So what is E.S.G., anyway? As investors rename their firms and their funds in a race to ride the E.S.G. wave, cynics see the debate over the term’s definition as degenerating into everyone seeing gibberish. Because funds can define E.S.G. nearly any way they want, they have come to resemble an extra-strange goulash. Sometimes, these new or newly rebranded operations are just elegantly simple greenwashing and nothing more.

For the full commentary, see:

Ron Lieber. “YOUR MONEY; Bankers Are Suing Lawyers In Kentucky’s E.S.G. Battle.” The New York Times (Saturday, February 25, 2023): B1 & B4.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date February 24, 2023, and has the title “YOUR MONEY; The E.S.G. Fight Has Come to This: Bankers Suing Lawyers.”)

Americans “Vote with Their Feet” Against Higher Taxes

(p. A15) The Tax Foundation’s 2021 State Business Tax Climate report ranks California’s state and local taxes as the second highest in the nation, just below New Jersey and above New York. People are fleeing these states.

. . .

I analyzed all 50 states’ net domestic migration levels and compared those levels with each state’s overall tax ranking. The ranking includes a weighing of taxes on corporate profits, individual income, sales, property and unemployment insurance.

The 10 states with the lowest taxes gained an average of 948 per 100,000 total population. For states that ranked 11th through 20th on taxes, the average was 457. For states ranking 21st to 30th, the gain was only 97. Net domestic migration turned negative for states ranking 31st to 40th with a loss of 141. And for the 10 states with the highest taxes, the average loss was 809 per 100,000.

These findings strongly reinforce the popular saying that people vote with their feet. They will leave places with relatively high taxes for those with lower levies. It may surprise Mr. Newsom, but people generally want to keep more of the money they earn.

For the full commentary, see:

James L. Doti. “Californians Aren’t the Only Tax Refugees.” The Wall Street Journal (Thursday, Jan. 12, 2023): A15.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date January 11, 2023, and has the same title as the print version.)

The Tax Foundation’s report mentioned above is:

Walczak, Jared, and Janelle Cammenga. “2021 State Business Tax Climate Index.” Washington, D.C.: Tax Foundation, 2020.

Joyce Meskis Was the Principled Entrepreneur Behind Denver’s Wonderful Tattered Cover Bookstore

The Tattered Cover in Denver is my favorite bookstore. I remember one time as I was exiting, running into Scott Parris, then an economics editor at Oxford University Press, who would later be the acquisition editor for my Openness to Creative Destruction. I remember he asked me if I had seen any books in economics in the Tattered Cover that looked promising. On another memorable occasion I visited the bookstore with my daughter Jenny’s Montessori middle-school class as a bookend to the class’s trip to Estes Park. It is a large welcoming bookstore, with comfortable chairs, good coffee, and a wonderful and diverse selection of books. At least it was during the years that Joyce Meskis owned it. (It may still be–I have not visited for several years.)

(p. B12) In 1995 the writer A.E. Hotchner presented Joyce Meskis, owner of the Tattered Cover Book Store in Denver, with a PEN American Center award recognizing her efforts on behalf of freedom of speech and expression.

“In this room,” he said at the awards ceremony, “there are writers, editors, publishers, and the rest of you are readers. If this woman fails, we all fail. We don’t exist unless the bookseller can sell us.”

And that was before Ms. Meskis went all the way to the Colorado Supreme Court to prevent law enforcement officials from knowing what books one of her customers had bought.

Ms. Meskis, who built the Tattered Cover into one of the most successful independent bookstores in the country, died on Dec. 22 [2022] in Denver, the National Coalition Against Censorship announced.

. . .

In addition to creating a bookstore famed for its vast selection and bibliophile-friendly atmosphere, Ms. Meskis often took a stand in matters related to censorship and the First Amendment. Sometimes those positions were not easy ones to embrace.

. . .

To Ms. Meskis, owning a bookstore was about more than just sales. As she told The Arizona Daily Star in 1992, “It’s my view that as booksellers we have our own version of the Hippocratic oath — to maintain the health and well-being of the First Amendment.”

. . .

Her stances didn’t always involve government regulation and court battles. In the late 1980s, she vowed to continue selling Salman Rushdie’s 1988 novel, “The Satanic Verses,” despite anonymous telephone threats after Ayatollah Ruhollah Khomeini of Iran declared the book blasphemous and called for the author’s death.

. . .

If Ms. Meskis was celebrated for her First Amendment stands, she took that spotlight reluctantly.

“Trouble finds us, we don’t go looking for it,” she told Publishers Weekly, an oft-repeated line. “When you’re in a general community, you will always have challenges. There are things I didn’t expect. I didn’t expect so many court battles. You’ve got to do what you’ve got to do.”

For the full obituary, see:

Neil Genzlinger. “Joyce Meskis, 80, Bookseller Who Defended Readers’ Rights.” The New York Times (Thursday, January 12, 2023): B12.

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

(Note: the online version of the obituary was updated Jan. 11, 2023, and has the title “Joyce Meskis, Bookseller Who Defended Readers’ Rights, Dies at 80.”)

Over 100,000 “Non-Covid Excess Deaths” Per Year in 2020 and 2021

(p. A15) Covid-19 is deadly, but so were the draconian steps taken to mitigate it. During the first two years of the pandemic, “excess deaths”—the death toll above the historical trend—markedly exceeded the number of deaths attributed to Covid. In a paper we just published in Inquiry, based on data from the Centers for Disease Control and Prevention, we found that “non-Covid excess deaths” totaled nearly 100,000 a year in 2020 and 2021.

Even these numbers likely overestimate deaths from Covid and underestimate those from other causes. Covid testing has become ubiquitous in hospitals, and the official count of “Covid deaths” includes people who tested positive but died of other causes.

For the full commentary, see:

Rob Arnott and Casey B. Mulligan. “How Deadly Were the Covid Lockdowns?” The Wall Street Journal (Thursday, Jan. 12, 2023): A15.

(Note: the online version of the commentary has the date January 11, 2023, and has the same title as the print version.)

The Mulligan and Arnott commentary is based on their academic article:

Mulligan, Casey B., and Robert D. Arnott. “The Young Were Not Spared: What Death Certificates Reveal About Non-Covid Excess Deaths.” INQUIRY: The Journal of Health Care Organization, Provision, and Financing 59 (Jan.-Dec. 2022): 00469580221139016.

“Nonprofit” Hospitals “Enjoy Lucrative Tax Exemptions” but Often Pressure Poor to Pay More

(p. 1) More than half the nation’s roughly 5,000 hospitals are nonprofits like Providence. They enjoy lucrative tax exemptions; Providence avoids more than $1 billion a year in taxes. In exchange, the Internal Revenue Service requires them to provide services, such as free care for the poor, that benefit the communities in which they operate.

But in recent decades, many of the hospitals have become virtually indistinguishable from for-profit companies, adopting an unrelenting focus on the bottom line and straying from their traditional charitable missions.

To understand the shift, The Times reviewed thousands of pages of court records, internal hospital financial records and memos, tax filings, and complaints filed with regulators, and interviewed dozens of patients, lawyers, current and former hospital executives, doctors, nurses and consultants.

The Times found that the consequences have been stark. Many nonprofit hospitals were ill equipped for a flood of critically sick Covid-19 patients because they had been operating with skeleton staffs in an effort to cut costs and boost profits. Others lacked intensive care units and other resources to weather a pandemic because the nonprofit chains that owned them had focused on investments in rich communities at the expense of poorer ones.

And, as Providence illustrates, some hospital systems have not only reduced their emphasis on providing free care to the poor but also developed elaborate systems to convert needy patients into sources of revenue. The result, in (p. 22) the case of Providence, is that thousands of poor patients were saddled with debts that they never should have owed, The Times found.

Founded by nuns in the 1850s, Providence says its mission is to be “steadfast in serving all, especially those who are poor and vulnerable.” Today, based in Renton, Wash., Providence is one of the largest nonprofit health systems in the country, with 51 hospitals and more than 900 clinics. Its revenue last year exceeded $27 billion.

Providence is sitting on $10 billion that it invests, Wall Street-style, alongside top private equity firms. It even runs its own venture capital fund.

For the full story, see:

Jessica Silver-Greenberg and Katie Thomas. “Entitled to Free Treatment But Hounded by Hospitals.” The New York Times, First Section (Sunday, September 25, 2022): 1 & 22-23.

(Note: the online version of the story was updated Dec. [sic] 15, 2022, and has the title “They Were Entitled to Free Care. Hospitals Hounded Them to Pay.”)

As People Die of “Old Age” Will the FDA Ever Approve Longevity Drugs?

The FDA has required that new drugs be proven to be effective against a disease, and the FDA has refused to consider old age to be a disease. Perhaps as more government institutions give “old age” as the reason for a death, the FDA will reconsider.

(p. A6) LONDON — Queen Elizabeth II died of “old age,” according to her death certificate, which was released on Thursday by the registrar general of Scotland. The certificate, which lists her occupation as Her Majesty the Queen, also notes that the queen died at 3:10 p.m. on Sept. 8 [2022] at Balmoral Castle.

The first fact is indisputable, given that the queen was 96. But the report offers no further details about the cause of her death, which came two days after she was photographed standing and smiling as she greeted Britain’s new prime minister, Liz Truss.

For the full story, see:

Mark Landler. “Record Says Queen Died of ‘Old Age’.” The New York Times (Friday, September 30, 2022): A6.

(Note: bracketed year added.]

(Note: the online version of the story has the date Sept. 29, 2022, and has the title “Queen’s Death Certificate Reveals Cause and Time of Death.”)

United Nations “Innovation Matters” Podcast Posts Episode on Diamond’s Openness to Creative Destruction

The United Nations’s “Innovation Matters” podcast on 2/24/23 posted Part 1 of a discussion of my book Openness to Creative Destruction.  Anders and I had an animated conversation, and a lengthy one, so the United Nations says we can look forward to them posting a Part 2 and a Part 3.

You can listen to the podcast on the following platforms: SoundCloud, Spotify, Apple Music, and Amazon Music.

New York City and State Government Workers “Stole More Than $1.5 Million” of Federal Covid Loan Subsidies

(p. A19) A New York City correction official, eight Police Department employees and eight other current and former city and state workers schemed to defraud Covid relief programs that were intended to provide money to struggling business owners, the authorities said on Wednesday.

The defendants submitted phony applications for disaster relief loans on behalf of hair and nail salons and day care programs that did not exist, federal prosecutors in Manhattan said. The prosecutors said many defendants spent the proceeds of their loans on personal expenses, like casino gambling, stocks, furniture and luxury clothing.

They collectively stole more than $1.5 million from the federal Small Business Administration and financial institutions that issued guaranteed loans, and the intent was to steal hundreds of thousands of dollars more, the prosecutors said.

. . .

The charges unsealed on Wednesday [Nov. 30, 2022] are part of wave of fraud prosecutions around the country related to the trillions of dollars that the government has pumped into programs to bolster the economy and provide assistance to people who had lost their jobs. The New York Times reported in August that the government had charged 1,500 people with defrauding programs that provide pandemic aid, with more than 450 convictions resulting from the cases. The Small Business Administration’s inspector general’s office has agents going through two million potentially fraudulent loan applications.

For the full story, see:

Benjamin Weiser, Chelsia Rose Marcius and Jan Ransom. “17 Public Workers Are Charged With Stealing Covid Funds.” The New York Times (Thursday, December 1, 2022): A19.

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

(Note: the online version of the story has the date Nov. 30, 2022, and has the title “17 Public Employees Charged in Schemes to Steal Covid Relief Funds.”)

Flourishing Is the End, Profit Can Be a Means

Glen Hubbard has long been a thoughtful defender of entrepreneurial capitalisms. The article quoted below from The New York Times suggests that he is moving away from that. Is that true, or is The New York Times misrepresenting the development of Hubbard’s thoughts? I suspect the latter, but I have not kept up with Hubbard’s recent articles or lectures. Profits are a key means to enable human flourishing. The two are not inconsistent. Flourishing is the end, profit can be a means.

(p. C1) One zigs, the other zags. One teases the passer-by with bands of translucent glass wrapping a core of clear windows; the other, with floors angled in and out — a gentle architectural mambo. The pair of buildings that comprise Columbia University’s new business school, on its growing Manhattanville campus, exude a nervous off-kilter energy.

. . .

(p. C4) Glenn Hubbard, the former business school dean who brought the project to fruition, saw the need to break free from fealty to the unregulated free market economy that over decades has led to extraordinary wealth concentration. The idea that business should focus only on making money, attributed to the economist Milton Friedman, “was a simple and direct idea that took over business, banking, even corporate law,” Hubbard explained. “We are trying to come up with a framework that can be more about flourishing, not just profit.”

“The vision now is to bring people together and debate issues going on in the world,” said Costis Maglaras, who was on the faculty as the project was being designed and who succeeded Hubbard.

For the full story, see:

James S. Russell. “A Temple of Capitalism Opens Itself Up.” The New York Times (Saturday, January 7, 2023): C1 & C4.

(Note: ellipsis added.)

(Note: the online version of the story was updated Jan. 9, 2023, and has the title “At Columbia’s $600 Million Business School, Time to Rethink Capitalism.”)

One Cause of Increasing Burnout of Physicians Is “the Politicization of Science”

(p. A25) Ten years of data from a nationwide survey of physicians confirm another trend that’s worsened through the pandemic: Burnout rates among doctors in the United States, which were already high a decade ago, have risen to alarming levels.

Results released this month and published in Mayo Clinic Proceedings, a peer-reviewed journal, show that 63 percent of physicians surveyed reported at least one symptom of burnout at the end of 2021 and the beginning of 2022, an increase from 44 percent in 2017 and 46 percent in 2011. Only 30 percent felt satisfied with their work-life balance, compared with 43 percent five years earlier.

“This is the biggest increase of emotional exhaustion that I’ve ever seen, anywhere in the literature,” said Bryan Sexton, the director of Duke University’s Center for Healthcare Safety and Quality, who was not involved in the survey efforts.

. . .

The increase in burnout is most likely a mix of new problems and exacerbated old ones, Dr. Shanafelt said. For instance, the high number of messages doctors received about patients’ electronic health records was closely linked to increased burnout before the pandemic. After the pandemic, the number of messages from patients coming into physicians’ In Baskets, a health care closed messaging system, increased by 157 percent.

And physicians pointed to the politicization of science, labor shortages and the vilification of health care workers as significant issues.

For the full story, see:

Oliver Whang. “New Survey Suggests An Alarming Increase In Physician Burnout.” The New York Times (Friday, September 30, 2022): A25.

(Note: ellipsis added.]

(Note: the online version of the story has the date Sept. 29, 2022, and has the title “Physician Burnout Has Reached Distressing Levels, New Research Finds.”)

Long-Distance Trade May Help Explain Why Sapiens Flourished More Than Neanderthals

(p. 47) Sykes explains that Neanderthals were sophisticated and competent human beings who adapted to diverse habitats and climates.

. . .

At the time when they encountered the Neanderthals, Sapiens too lived in small bands, but different Sapiens bands probably cooperated on a regular basis. There is much more evidence for long-distance trade among Sapiens, and spectacular burials like the 32,000-year-old Sunghir graves clearly reflect the combined effort of more than one band.

Large-scale cooperation did not necessarily mean that a horde of 500 Sapiens united to wipe out a band of 20 Neanderthals. Cooperation isn’t just about violence. Sapiens could more easily benefit from the discoveries and inventions of other people. If somebody in a neighboring band discovered a new way to locate beehives, to make a tunic or to heal a wound, such knowledge could spread much more quickly among Sapiens than among Neanderthals. While individual Neanderthals were perhaps as inquisitive, imaginative and creative as individual Sapiens, superior networking enabled Sapiens to swiftly outcompete Neanderthals.

This, however, is largely speculation. We still don’t know enough about the psychology, society and politics of Neanderthals to be sure. Perhaps the most surprising fact in Sykes’s book is that even if we count every bone fragment and every isolated tooth, so far we have found the remains of fewer than 300 Neanderthals.

For the full review, see:

Yuval Noah Harari. “Ancient Cousins.” The New York Times Book Review (Sunday, December 6, 2020): 47.

(Note: ellipsis added.)

(Note: the online version of the review was updated Nov. [sic] 9, 2020, and has the title “At Home With Our Ancient Cousins, the Neanderthals.”)

The book under review is:

Sykes, Rebecca Wragg. Kindred: Neanderthal Life, Love, Death and Art. London: Bloomsbury Sigma, 2020.