LyrArc Article Gist
This Times editorial questions whether Mayor Bloomberg did the right thing in the manner in which he ousted protestors from Zucotti park in the financial district of New York city. Now that the protestors have been forcibly removed from the park, it is the responsibility of the Mayor to keep his promise to let the demonstrators continue their protest against income inequality, says the editorial. The concern is that the end of the protests at Zucotti park could end up quashing the entire protest movement, which serves to draw attention to serious issues in a democracy.

LyrArc Article Gist
Prof. Cherlin of John Hopkins University's sociology department tells us why it is important to revive the term "working class" in America after it has fallen into disuse. He points out that lumping the "working class" with the middle class, as most political leaders including Obama have done, is a serious mistake. As disparities have increased between college educated Americans and non-college educated Americans with only a diploma or less ( who comprise 54% of the adult population with children under age 18), and as the lifestyles, living standards, and educational opportunities of children have diverged for these two groups, this no longer makes sense. One reason for the disuse was that the term was seen as derogatory at some point in time because of media stereotypes of working class people. Yet only by reviivng the term and facing up to the problems faced by this group can America really address its problems as a society, or as a people. Even economic recovery could be elusive without increasing the consumer spending, and by this the incomes and future prospects of the working class. Underneath this is something more important, which has shaped the lives of people throughout the world in the 20th century and into the 21st- the sense of hope and opportunity, of upward economic and social mobility, especially for children of all classes. ...

LyrArc Article Gist
Five rules the editors of the WSJ say should be followed when working on cleaning up the banking system. A clear no, as Krugman and other experts point out is for the government to make the rather imprudent move to take on all the debts of the banks as in Ireland. A second rule is not to underestimate the size of the problem and delay action till the problem gets much worse, when its harder to deal with. ECB president, Mario Draghi, pointed out the problem at Spain's handling of Bankia bank as a clear example, telling the European parliament recently: "There is a first assessment, then a second, a third, a fourth. This is the worst possible wayof doing things. Everyone ends up doing the right thing, but at the highest cost." A third rule is to set clear rules about banks, who gets rescued and who gets closed and why- so that its not left upto the discretion of officials. On this rule Spain's outgoing Zapatero administration gets good marks from WSJ for settting clear rules to the cajas svings banks. A fourth rule applicable to Europe is to first setup the expertise and conditions for a European banking regulator before setting up a banking union and direct injection of funds by the EFSF into banks of individual countries. A fifth rule is to avoid creating even larger mega banks by consolidating failing banks with large banks, and continuing the government's implicit guarantee of the bank because it is "too big to fail" and creates systemic risk- this is the situation after action by the U.S. Federal Reserve, regulators and the U.S. Treasury....

LyrArc Article Gist
Austin Goolsbee says the overvalued currencies of Italy, Greece, Spain and Portugal and the lack of growth under austerity plans proposed for these countries create impossible odds for resolution of the financial problems in these countries. The German position is that profligate spending and irresponsible accounting in Greece, and structural issues in Italy ranging from entitlement spending to tax evasion, need to be resolved.

LyrArc Article Gist
Morello of the WP describes the situation in Afghanistan with about 10,000 U.S. troops remaining in the country and the Taliban refusing to continue negotiations started earlier. About one in five migrants to Europe are from Afghanistan as more educated people leave the country for better lives overseas. The Taliban is tapping into the discontent in the country with the large number of unemployed following the U.S. withdrawal. Morello says the poverty rate has increased to 49% by 2016.

LyrArc Article Gist
In a corner of Wales known for its coastline and scenic beauty, a biology teacher Mr. Barry Rees sets up a homemade contact tracing system that worked. He is the director of Ceredigion county council. It is the safest county in mainland Britain with only 45 recorded cases in the last week for 75,000 residents. Early on in the coronavirus epidemic Mr. Rees decided to take up contact tracing with whatever resources were on hand and start quickly. This was was happening in German states which were also following low tech, get started quickly approach, but Rees was not aware of what was already happening in Germany. He knew about South Korea and Singapore efforts in contact tracing which put a lot of emphasis on human skills in calling and tracing and getting started immediately. Rees started with the people calling in sick of the 4000 people who worked for the county administration, as he had no testing resources. He started tracing these people and their contacts, and even though some were defensive the majority supported intervention to isolate. At the time there were fears of 200 deaths in the county so that there was no time to lose.  By April the area was facing an influx of people from Aberystwyth University and tourists visiting its sandy beaches, another reason for taking on the task with a homemade system. Today it has one tenth the cases in the rest of Wales.  The hidden fear in the country is that word can get out and lead to more visitors from outside the county. ...

LyrArc Article Gist
Lawrence Katz, Harvard labor economist, talks to Friedman about the jobs crisis in the U.S.. Katz identifies three jobs crises occurring at the same time today. One is the drop in the demand for goods and services that resulted from the longer term effects of the financial crisis of 2008, with rising foreclosures, weak housing markets, bad debt on the balance sheets of banks, and interest rates at close to zero reducing the scope of action by the Federal Reserve bank. The second, is the widespread long term unemployment with workers dropping out of the labor market. The third, is the nature of new factories and hiring. Work in new factories is done through increased automation, information technology and fewer workers. As a result job creation is a fraction of what it was in the past. Not mentioned here is the shrinking of the public sector under the strain of budget deficits for local, state and federal government. This leads to the question of how America will create jobs in the future. Katz believes the answer is creating more "hubs," networked urban areas like Austin, Silicon Valley, and Raleigh-Durham, by bringing together universities, high-tech manufacturers, software providers, and startup companies, to cooperate in creating new products that enhance people's lives worldwide. This has to be done by the private sector and government working together to build the infrastructure and make the investments in education, training of workers, and equipment for new job creation....

LyrArc Article Gist
Jennifer Rubin of the Washington Post says the Republican candidates Rubio and Kasich have the best chance in the 2016 presidential election because they are seen as truly concerned about the problems of working class Americans. Coming from aspiring working class families they are familiar with the problems of working class whites and minorities, and understand the significance of upward mobility in America's future.

LyrArc Article Gist
Thomas Frank writing about the public outrage about executive compensation quotes Bill Black, a Professor of economics and law at the University of Missouri-Kansas City, who makes an important point. Beyond the size of this compensation there was something else happening that was perverse in its design and in its effects. Black says that at each point in the development of the disaster of mortgage securitization, it was the pay for performance systems that sent the wrong signals to loan officers, real estate appraisers, accountants, and bond rating agencies. The compensation or reward systems actually encouraged wrong, unethical and ultimately disastrous behaviours for the companies and the economy. Another way to look at it, the way it happened on Wall Street- especially at Merrill Lynch and some other financial institutions- the bonuses and other compensation was a way for executives to recklessly milk (loot is the other word) the companies for all they could yield regardless of the results afterwards. And as Black says, to do this through normal corporate mechanisms. A whole range of behaviours of this type took place in the final years of the boom. See other articles by Thomas Frank. ...

LyrArc Article Gist
During the civil war the Libyan government of Gaddafi used mercenaries from Mali and the Shaharan region region to suppress the young people fighting for democracy. After the fall of Gaddafi, these troops with arms returned to Mali and the Sahel region and formed militias that now control the northern part of Mali. These mercenaries who linked up with Al Quaeda are suspected of the attack on the U.S. consulate in Benghazi. The U.S. with French support is only now focussing on this problem. During much of the Libyan struggle for democracy the Obama administration let France take the lead in Libya, and may have missed the volatile situation developing in the Saharan region of Niger and Mali as a result of the flow of arms into the region from people of Mali and Niger returning to their countries from Libya.

LyrArc Article Gist
Krugman says France is getting a lot of attention, but it is Germany where attention needs to be focussed. German long term bonds are yielding 0.7%, a yield level associated with Japanese deflation. He says Greece's problem was a fiscal mess limited to a small country, and Italy has a problem of low productivity that is unique to Italy over several decades. Loss of French competitiveness is overstated, as France has only a small trade deficit, and some of that lack of competitiveness comes not from excessive growth in cost and prices but from policies pursued in Germany. He points to France's GDP deflator (the average price of French goods and services) since 1999 when the euro started, as rising 1.7% a year, and labor costs rising 1.9% annually. By comparison German price growth was 1% and labor cost growth was 0.5%. France is close to the ECB target of 2% inflation. Germany falls way short of the 2% inflation target.

LyrArc Article Gist
Ramon Fernandez is the head of the Treasury in France's Ministry of the Economy, Finance and Industry. He manages the work done behind the scenes in the eurozone crisis- helping France's finance minister Baroin, French president Sarkozy, Xavier Musca, the presidents chief of staff, and working with his German counterpart Jorg Asmussen. He is self-effacing and says he does what he has to do. His view on the euro is that it will be there ten years from now and stronger.

LyrArc Article Gist
Sarkozy says he has spoken on the phone with Abdel Basset, the head of the main Syrian opposition group, and had found many similiarities between the situation in Syria and the situation in Libya. Former French president Sarkozy took the initiative to help Libya's democracy movement in its struggle against the Gaddafi regime. It was only after Sarkozy's support with French airpower that other western nations joined the effort. It also came at a critical moment in the struggle where a few days could make all the difference in the outcome. French newspapers published remarks from other opposition leaders calling for president Hollande to provide more support to the democracy movement in Syria.