The Edgy Optimist

A new American dream for a new American century

By Zachary Karabell
July 26, 2013

In a major speech this week on the economy, President Obama emphasized that while the United States has recovered substantial ground since the crisis of 2008-2009, wide swaths of the middle class still confront a challenging environment. Above all, the past years have eroded the 20th century dream of hard work translating into a better life.

The Obamacare plot twist

By Zachary Karabell
July 18, 2013

For months, we’ve been told that the impending implementation of the Affordable Care Act (aka Obamacare) will lead to soaring healthcare costs and more expensive premiums. That narrative has taken hold, even for those who otherwise support the suite of reforms. And that’s why the recent front-page article in the New York Times, reporting that premiums in New York State may actually fall 50 percent or more, came as such a surprise.

Bonds are not safe

By Zachary Karabell
July 11, 2013

The old stock market cliché “sell in May, and go away” had so far proved untrue this year. Instead, it is the bond market — so often perceived as steady, low risk and dependable — that has bitten investors. In fact, June was one of the worst months for bonds in many years. The declines were steep enough to serve as an acute reminder that nothing, and I do mean nothing, in the financial world is without risk.

Stormy markets, smooth seas

By Zachary Karabell
June 28, 2013

You could be forgiven for missing the latest installment of market panic over the past ten days. It came and went like a summer thunderstorm — passing over the global financial landscape quickly and violently. But unlike meteorological events that inflict actual harm, the sharp gyrations of financial markets have increasingly less relationship to real-world economies and exist in their own never-never land of self-fulfilling prophecies and conventional wisdom.

Surveilling a double standard

By Zachary Karabell
June 14, 2013

As the week continues, so does the furor over the government’s electronic and big data surveillance. It’s largely framed in the terms that President Obama described on June 7th: “You can’t have 100 percent security and also then have 100 percent privacy and zero inconvenience.” That observation may be true, but we are approaching this issue 100 percent wrong.

Obama and Xi’s weekend getaway

By Zachary Karabell
June 7, 2013

This weekend, President Obama and China’s new leader Xi Jinping will meet at a retreat outside of Los Angeles. The two men are scheduled to spend six to seven hours covering a range of issues that confront the two countries, from the increasingly fraught issue of hacking and cybersecurity to what to do about an evermore unpredictable and rogue North Korea. The summit was arranged only recently, almost impromptu and more casual and low-key than the pomp and circumstances state visits of the past decade. That should in no way, however, obscure just how important the meeting is.

Building a better economic yardstick

By Zachary Karabell
May 31, 2013

This week the government released yet another revision of first-quarter economic growth showing that the U.S. economy grew a tad less than initially reported ‑- 2.4 percent rather than 2.5 percent. This revision was hardly consequential, but over the summer the Bureau of Economic Analysis will unveil a new way to calculate the overall output of the United States. And that revision will be dramatic.

Two cheers for the tech industry’s goofy energy

By Zachary Karabell
May 24, 2013

The national conversation of late has revolved around a trio of Washington scandals, a weather disaster, and the seesaw views in financial markets about whether crisis looms. Yet for all their prominence, none are as tied to trends that will shape our collective future as the myriad of events that took place this week in New York City under the banner of “Internet Week.”

Massive, open, online disruption

By Zachary Karabell
May 17, 2013

The United States has a problem: rapidly rising student debt. It also has a solution: online education. The primary reason for spiraling student debt is the soaring costs of a college education at a physical college. Online education strips away all of those expenses except for the cost of the professor’s time and experience. It sounds perfect, an alignment of technology, social need and limited resources. So why do so many people believe that it is a deeply flawed solution?

Online sales tax: a good idea done badly

By Zachary Karabell
May 9, 2013

On Monday, by a comfortable 69-27 majority, the U.S. Senate passed a controversial bill that will require online retailers with annual sales of more than $1 million to collect state sales taxes. Said Republican Mike Enzi of Wyoming: “This bill is about fairness. It’s about leveling the playing field between the brick-and-mortar and online companies, and it’s about collecting a tax that’s already due. It’s not about raising taxes.”