As the government shutdown grinds on, the Republican leadership in the House is struggling to unite GOP lawmakers around a fiscal deal that Senate Democrats and the Obama administration would be willing to accept. Speaker John Boehner has reportedly said that he is willing to rely on Democratic votes if necessary to pass an increase in the debt ceiling. Yet he also insists that he will fight for spending cuts and entitlement reform in any debt ceiling bill, in a nod to conservative members who are convinced that he is eager to sell them out.
Next week, the new state-based health insurance exchanges established under the Affordable Care Act, better known as Obamacare, will be open for business. Or rather — some of them will be sort of open for business, as the exchanges have been plagued by a series of technical glitches and delays. The Obama administration is now characterizing October 1st as the beginning of a “soft launch,” during which federal and state officials will work out various kinks. And though this might sound like just another bureaucratic foul-up, the success of the exchanges in these first few months will have enormous implications for the ultimate success of Obamacare.
On Tuesday afternoon, a small but influential slice of the inside-the-Beltway conservative intelligentsia gathered at the American Enterprise Institute, a D.C.-based conservative think tank, to hear Utah Sen. Mike Lee present his new tax reform plan, the “Family Fairness and Opportunity Tax Reform Act.” Though it is unlikely that the bill will become law, it represents genuinely new thinking about how Republicans ought to approach domestic policy. And as such, it has the potential to break the GOP out of its defensive crouch.
Right now, it looks as though Larry Summers has the inside track to be named the next chairman of the Federal Reserve. This is despite the fact that many on the left, from Democratic lawmakers like Oregon Senator Jeff Merkley to influential activists like Mike Konczal of the Roosevelt Institute, are deeply skeptical of Summers, owing to his ties to the financial sector, his impolitic reputation, and the fear that he might be more concerned about the dormant threat of inflation than the very real scourge of long-term unemployment. The discouraging job growth numbers released by the Bureau of Labor Statistics earlier today can’t help his case. But Summers, the former chairman of President Obama’s National Economic Council, seems to have the trust and respect of his former boss, and that may be all he really needs to secure the most powerful economic policy-making job in the country.
ISTANBUL — It’s rare that I enjoy being stuck in traffic, but the slow ride from Istanbul’s main international airport to its central business district is a feast for the eyes. New shopping malls, apartment blocks, and office parks seem to stretch out in every direction, up and down the city’s formidable hills. But this week has served as a reminder that Turkey’s prosperity rests on a fragile foundation.
The house in which I grew up was built in 1913. It was part of a building boom in New York City’s outer boroughs fueled by the rising incomes, and rising aspirations, of erstwhile tenement-dwellers. As jam-packed Manhattan neighborhoods like the Lower East Side emptied out, once-bucolic stretches of Brooklyn, Queens and the Bronx were transformed with dizzying speed.
As a general rule, Americans don’t give much thought to Uruguay, a small South American republic with a population of 3.3 million. But Uruguay has embarked on a new experiment with marijuana legalization that merits close attention. As Ken Parks of the Wall Street Journal reported late last month, new Uruguayan legislation will allow individuals to grow as much as 480 grams of marijuana for personal consumption, and marijuana cooperatives with no more than 45 members will be permitted to grow just over two plants per member. The government will also allow for limited commercial production, but Uruguayan lawmakers have made it clear that they don’t want a domestic marijuana market dominated by large for-profit firms.
Something extraordinary is happening in Salt Lake City, Seattle and Pittsburgh and in the suburbs surrounding them, and if we’re going to overcome entrenched poverty in America as a whole, we have to pay close attention to what these communities are getting right. To understand why, consider the findings of an important new study.
During his recent economic address at Knox College, President Barack Obama briefly referenced the promise of online learning. Specifically, he celebrated the fact that some colleges are “blending teaching with online learning to help students master material and earn credits in less time,” a development that holds great potential to contain the rising cost of higher education. Yet this potential is still a long way from being realized, as demonstrated by a recent hiccup at California’s San Jose State University.
In 1900, 41 percent of the U.S. workforce was employed in agriculture. One hundred years later, that share had declined to 1.9 percent. Over that interval, the jobs that were easy and cheap to mechanize were mechanized, and now we are left with a handful of jobs that machines find extremely difficult to do. Machines can’t make strategic decisions about which crops to grow, and as a general rule they can’t fix themselves, so that leaves a significant role for managers and mechanics. Until recently, machines were also really bad at doing things like picking heads of lettuce and other delicate crops, as this requires a deftness of hand and an attention to detail that machines lack.