Interesting to me that the Great Recession doesn’t even show up as a blip on this graph.
With no card number, CVV security code, expiration date or signature on the card, Apple Card is more secure than any other physical credit card.
While @jackieLbrewer was working at the bakery there was a cash register glitch. For several days they took credit card payments on paper, writing the number down by hand, and then entering them manually at the end of the day.
Those customers would have been totally secure from being able to buy bread.
The government shutdown gives renewed relevance to this 4-part series I wrote for Wise Bread at the peak of the financial crisis: Getting by without a job, part 1–losing a job
This sort of thing was a fantasy of mine, back in the 1980s. I could see things getting worse in the US, and the idea that a foreign passport and foreign residency could provide an escape if things got too bad was pretty appealing.
Nowadays not so much. It’s not that things have gotten better in the US; it’s that things have gotten worse other places at least as quickly. More to the point, things getting worse in the US seems to make things worse other places, so the conditions that make the idea appealing are the same conditions that make it pointless.
One book that substantially influenced my thinking in this area is Emergency: This book will save your life by Neil Strauss. I recommend it highly. In entertaining and informative prose, he documents his transformation from just the sort of kook I was in the 1980s into somebody with a much more practical perspective.
Still, an EU passport might have its upsides. Anybody got a spare quarter million euros and an interest in learning Greek? (If money is no object, a half million euros will let you buy in to Ireland, and I expect learning Gaelic is optional.)
One utterly predictable consequence of climate change is that the price of northern farmland will rise as growing regions shift north.
Tobias Buckell yesterday shared a report that just this sort of price shift is now occurring—interesting to me because this result is not merely predictable: I predicted it my own self, way back when I was in high school.
Global warming was still pretty speculative then (in the 1970s), but people were already talking about the greenhouse effect and trying to figure what the result would be. At the time, I was mainly thinking about the geopolitical implications of shifting the growing regions north—how things would change if Canada and the (then) Soviet Union were suddenly way more productive of food, while places like the United States, China, and France suddenly less so.
What I discovered, though, was that those northern regions aren’t nearly as fertile as places like Illinois, where 8,000 years of tall grass prairie left an incredibly thick layer of rich soil.
No matter how perfect the climate is, Saskatchewan is not going to produce the bushels per acre of Illinois or Kansas. Their soil is not only less fertile, it’s also much more fragile than the soil of the tall grass prairies. The fertile layer isn’t as deep, so the land must be plowed with greater care, and it will in any case be more quickly depleted.
I’m sure there’s a lot more and better data available now than there was back then, but I doubt if it changes the fundamentals. Shifting growing regions means winners and losers, but it also means less total food production.
The tea-party right was willing to risk the hard stop in spending that would have resulted from running up against the debt limit—a game of chicken that neither the Democrats nor the sane fraction of the Republicans could take the risk of losing.
The fiscal cliff looks a little similar, but it’s much less dangerous. It’s a game that lends itself to playing through to the end, because the risk of losing isn’t nearly so bad.
Suppose we did go over the fiscal cliff. What would happen?
First, tax rates would go up for everybody. That’s bad, but it’s not terrible. Actually, taxes at those rates would produce revenue roughly equal to the amount of government people seem to want.
Second, spending would be cut, with the cuts falling on almost everything except Social Security. A lot of good stuff would be cut, but that might not be such a stiff price to pay, considering that a lot of the things that ought to be cut (such as defense spending far beyond our needs) would otherwise be very hard to cut.
The result would be a rough year or two, hard on everybody from working-class folks to defense contractors, but all those problems would be fixable. In fact, Congress would love to fix those problems! Congress could cut taxes! (Just not as much as Bush did.) Congress could boost spending! (Just not to current levels.) Really, there’s nothing congressmen like better than cutting taxes and spending money on stuff.
The other details are similar. The AMT would strike middle-class folks hard, but that could be fixed, too. In fact, having to fix it would be an opportunity to improve it—turn it back into what it was supposed to be, a minimum tax rate that applies to everyone, no matter how many tax shelters they have or how many special preferences they qualify for. The end of the “doc fix” would hurt health care providers, but that could be pretty easily fixed too. (We’ll no doubt have to make a lot of small changes to healthcare stuff, once health care reform goes into effect and we run into the inevitable glitches.)
It’s always hard to raise taxes and cut spending, so it’s hard to do what needs to be done. But that’s why the fiscal cliff is so perfect. Once we go over the edge, we won’t need to raise taxes and cut spending—we’ll need to cut taxes and raise spending, and that’s dead easy.
Dive over the fiscal cliff, then fix things. It’s not perfect, but it wouldn’t be nearly as bad as what we’ve got now.
One of the things I try to do in my fiction is show any collapse scenario as a process.
Your standard “if this goes on” story is all about looking ahead to see the result of current trends. But trying to see the endpoint of climate change, peak oil, habitat destruction, environmental degradation, or any similar process is going to be misleading. There is no endpoint—things keep going on.
I think the destruction wrought by Sandy is a good example. I’ve read a lot of stories set in a world where climate change has inundated the coasts. What aren’t nearly as common are stories set in the world we’re approaching: A world where the coasts are inundated only 1% of the time (or, a bit later, 2% of the time). A world where we see a 100-year storm every 8 or 10 years. A world where all our infrastructure spending is going for repairs, and yet we keep falling behind.
I say this is a world we’re approaching, but we may have already reached it. How many 100-year storms can you have in a decade before you have to admit that it’s not just a statistical anomaly, but rather is the new reality?
I’ve got a guest post up at Asta Lander’s blog Simply Living, about the trade-offs that people make when they choose to work for wages or a salary, and how you can get most of the benefits while avoiding most of the downside.
It’s called Choosing Freedom.
There was a time when most people were self-sufficient. They acquired what they needed through some mix of hunting, gathering, fishing, farming, raising animals, and making things themselves. Not many people do that any more.
What makes a country rich? Hint: It has nothing to do with natural resources. Places like Singapore, Hong Kong, and Japan prove that.
What makes a country rich? Hint: It has nothing to do with natural resources. Places like Singapore, Hong Kong, and Japan prove that. (See also: How to Get Rich by Being Evil)
We’ve known how to have rich countries for a while now; Adam Smith laid most of the ground work in 1776 with The Wealth of Nations, and we’ve improved on it modestly since then. You need three things:
- Private property
- Free markets
- Rule of law
None of those things have to be perfect for a country to get rich. Look at what China and India have done over the past twenty years. Allow a little private property, reduce government regulation a little, and you unleash a lot of entrepreneurial activity. Pretty soon, you have a bigger economy, higher incomes, and a richer population.
What’s interesting to me is how important that third point turned out to be.
As the Soviet Union began to collapse, a lot of people were offering advice on how to free the economies of the formerly communist countries. Most of the advice had to do with getting state property into the hands of ordinary people in ways that would allow the greater productivity that private property and free markets allow.
There was a lot less focus on how to imbed the rule of law into the system. It was almost as if people figured that the shift from a police state to the rule of law would be easier than getting there from a state of anarchy. (A dumb idea, once you think about it.)
So, thanks to the unhappy experiments in Russia (and other places) we now know what happens if you have (some) private property and (moderately) free markets without the rule of law. You don’t get a rich country; you just get a lot of rich people.
This insight has been guiding me politically for a while now. Obviously, it would be great to be a rich person in a rich country, but few of us have that option. Pretty much by definition, most of us are going to be somewhere in the broad middle. But if you’re going to be in the broad middle, it’s a lot better to do so in a rich country.
Happily, we know how to have a rich country.
Note: This was originally written for Wise Bread, but they decided it wasn’t for them, so I’m posting it here. I’ve kept it just as I’d written it, including the “see also” link back to Wise Bread. And, since it was written for a monetized market, I’ve gone ahead and put some ads in this post, even though I don’t general monetize my blog. Somehow, the post seemed lonely without them.
I came out of college almost debt-free, because my parents paid for my education.
I got a job writing software. It was exactly what I wanted to do—the only thing I wanted to do as much as writing prose. I remember being glad that my manager didn’t know that I’d have worked for free, just to get access to the computers. (In 1981, computers were still expensive.)
I started my career right at the moment when software started to became important everywhere. Even though my degree was in economics, I had no trouble finding software jobs.
I got raises, because software went on becoming more important. Even when the companies I worked for fell on bad times, I found a new job without difficulty.
I saw things changing. After about 1990, jobs went away a lot quicker, and when they went away, they didn’t come back.
I was still okay, because software was still important.
I realized that software wasn’t going to remain special. I realized that millions of people around the world could write software just as well as I could. I realized that the ones in China and India could live a middle-class life on one-tenth the money I was earning. I realized that I couldn’t compete with them on price.
I figured I was safe for a while, but only because there were so many managers who were sure that an employee he couldn’t see working probably wasn’t working. But that wouldn’t last. Managers would adapt. And managers who couldn’t adapt would lose their jobs.
I started saving money. I could see that I wasn’t saving it fast enough, so I started living more frugally. That was a double win: Spending less left more money to save, and it also provided me with an existence proof that I could live on less.
I lost my job when Motorola closed its Champaign facility in August of 2007. By then, I had saved and invested a lot of money. Not enough to retire in any ordinary sense, but enough that I figured I could get by without a regular job.
I am a writer now. It’s exactly what I want to do.
I am very lucky. That’s not unusual; there are a lot of lucky people. What’s a little unusual is that I know just how lucky I’ve been.
I am the 99%.