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Category: Economics

For the first time in two decades, U.S. buys more from Mexico than China

For the first time in two decades, U.S. buys more from Mexico than China

The New York Times reports: In the depths of the pandemic, as global supply chains buckled and the cost of shipping a container from China soared nearly twentyfold, Marco Villarreal spied an opportunity. In 2021, Mr. Villarreal resigned as Caterpillar’s director general in Mexico and began nurturing ties with companies looking to shift manufacturing from China to Mexico. He found a client in Hisun, a Chinese producer of all-terrain vehicles, which hired Mr. Villarreal to establish a $152 million manufacturing…

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Study of Indigenous and local communities finds happiness doesn’t cost much

Study of Indigenous and local communities finds happiness doesn’t cost much

Autonomous University of Barcelona: Many Indigenous peoples and local communities around the world are leading very satisfying lives despite having very little money. This is the conclusion of a study by the Institute of Environmental Science and Technology of the Universitat Autònoma de Barcelona (ICTA-UAB), which shows that many societies with very low monetary income have remarkably high levels of life satisfaction, comparable to those in wealthy countries. Economic growth is often prescribed as a sure way of increasing the…

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Red Sea crisis could shatter hopes of global economic recovery

Red Sea crisis could shatter hopes of global economic recovery

The Observer reports: A prolonged conflict in the Red Sea and escalating tensions across the Middle East risk having devastating effects on the global economy, reigniting inflation and disrupting energy supplies, some of the world’s leading economists warn this weekend. Before a statement expected on Monday by Rishi Sunak in the House of Commons about UK and US airstrikes on Houthi sites in Yemen, economists at the World Bank say the crisis now threatens to feed through into higher interest…

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New research explores a restorative climate path for the Earth

New research explores a restorative climate path for the Earth

Inside Climate News reports: With Earth’s average annual temperature speeding toward 1.5 degrees Celsius faster than expected and global climate policy on a treadmill, an increasing number of researchers say it’s time to consider a “restorative pathway” to avoid the worst ecological and social outcomes of global warming. In a study published today in Environmental Research Letters, an international team of scientists wrote that reaching global goals could require focusing on ways to drive rapid changes in the way people…

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Red Sea attacks on ships pose another threat to an already precarious global economy

Red Sea attacks on ships pose another threat to an already precarious global economy

The New York Times reports: The wave of attacks against merchant ships in the Red Sea is forcing companies to send ships on longer routes and threatens to hurt an already wobbly global economy. The Houthis, an armed group backed by Iran that controls much of northern Yemen, have been using drones and missiles to target ships since Hamas attacked Israel on Oct. 7. That has forced some shipping giants and oil companies to avoid the Suez Canal, a development…

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The relentless growth of degrowth economics

The relentless growth of degrowth economics

Jessi Jezewska Stevens writes: The ninth International Degrowth Conference, held in August this year in Zagreb, Croatia, opens with a provocation. Keynote speaker Diana Ürge-Vorsatz, the newly elected vice chair of the Intergovernmental Panel on Climate Change (IPCC), has two requests to make of the audience. The first is to figure out how to coordinate with governments of all stripes, since the climate crisis requires global unity. The second? “Maybe consider a different word.” It’s about as close to blasphemy…

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When idiot savants do climate economics

When idiot savants do climate economics

Christopher Ketcham writes: William Nordhaus, who turned 82 this year, was the first economist in our time to attempt to quantify the cost of climate change. His climate-modeling wizardry, which won him the Nobel Memorial Prize in Economic Sciences in 2018, has made him one of the world’s most consequential thinkers. His ideas have been adopted by the Intergovernmental Panel on Climate Change, the U.S. Environmental Protection Agency, global risk managers, the financial services industry, and universities worldwide that teach…

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Lloyd’s of London warns extreme weather could incur $5tr of economic losses over five years

Lloyd’s of London warns extreme weather could incur $5tr of economic losses over five years

BusinessGreen reports: Extreme weather events could result in around $5tr of economic losses over five years as crops fail and water and food shortages escalate, insurer Lloyd’s of London has warned. A new data tool released by the insurance giant this week models the global economic impact of a “hypothetical but plausible increase” in the frequency and intensity of extreme weather events, leading to a series of food and water shocks over a five year period. The analysis predicts that…

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Coming together as things fall apart

Coming together as things fall apart

Astra Taylor writes: Since 2020, the richest 1 percent has captured nearly two-thirds of all new wealth globally — almost twice as much money as the rest of the world’s population. At the beginning of last year, it was estimated that 10 billionaire men possessed six times as much wealth as the poorest three billion people on Earth. In the United States, the richest 10 percent of households own more than 70 percent of the country’s assets. Such statistics are…

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Home insurers cut natural disasters from policies as climate risks grow

Home insurers cut natural disasters from policies as climate risks grow

The Washington Post reports: In the aftermath of extreme weather events, major insurers are increasingly no longer offering coverage that homeowners in areas vulnerable to those disasters need most. At least five large U.S. property insurers — including Allstate, American Family, Nationwide, Erie Insurance Group and Berkshire Hathaway — have told regulators that extreme weather patterns caused by climate change have led them to stop writing coverages in some regions, exclude protections from various weather events and raise monthly premiums…

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The real crime isn’t shoplifting — it’s wage theft

The real crime isn’t shoplifting — it’s wage theft

Jason Linkins writes: Last weekend, I stumbled across a viral tweet thread that provided a rather thorough debunking of one of my big bugbears: the insipid shoplifting panic that’s been coursing through the media the past two years. Over several posts, WBAI radio host Rafael Shimunov punctures what’s become a classic “too good to check” story and discovered that many of the foundational ideas behind what’s been sold as a bona fide crisis were falsehoods—and not particularly well-constructed ones at that. Once the evidence…

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Overuse is draining and damaging aquifers nationwide

Overuse is draining and damaging aquifers nationwide

The New York Times reports: Groundwater loss is hurting breadbasket states like Kansas, where the major aquifer beneath 2.6 million acres of land can no longer support industrial-scale agriculture. Corn yields have plummeted. If that decline were to spread, it could threaten America’s status as a food superpower. Fifteen hundred miles to the east, in New York State, overpumping is threatening drinking-water wells on Long Island, birthplace of the modern American suburb and home to working class towns as well…

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What your insurer is trying to tell you about climate change

What your insurer is trying to tell you about climate change

Juliette Kayyem writes: Having worked for decades in conservation nonprofits, Beth Pratt, who lives high in the Sierra Foothills in Midpines, California, understands how climate change is putting her home at ever greater risk. Her community is experiencing what she calls “climate whiplash”: forest fires, record heat, massive snow dumps, mudslides, rockslides, and even a tornado. When Pratt, now 54, bought her 1,400-square-foot house in 1999, she thought the setting was ideal: on a big lot near Yosemite National Park….

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How the ‘urban doom loop’ could pose the next economic threat

How the ‘urban doom loop’ could pose the next economic threat

The Washington Post reports: In Indianapolis, the technology giant Salesforce is paring back a quarter of its office space in the tallest building in Indiana, where it has been a key tenant for the past six years. In Atlanta, the private investment giant Starwood Capital defaulted on a $212 million mortgage on a 29-story office tower. And in Baltimore, a landmark building sold for $24 million last month, roughly $42 million less than it fetched in 2015. All across the…

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Carbon credit speculators could lose billions as offsets deemed ‘worthless’

Carbon credit speculators could lose billions as offsets deemed ‘worthless’

The Guardian reports: Carbon credit speculators could lose billions as scientific evidence shows many offsets they have bought have no environmental worth and have become stranded assets. Amid growing evidence that huge numbers of carbon credits do nothing to mitigate global heating and can sometimes be linked to alleged human rights concerns, there is a growing pile of carbon credits equivalent to the annual emissions of Japan, the world’s fifth largest polluter, that are unused in the unregulated voluntary market,…

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Trump vows massive new tariffs if elected, risking global economic war

Trump vows massive new tariffs if elected, risking global economic war

The Washington Post reports: Even in the face of growing personal legal peril, Donald Trump summoned his top economic advisers to his private golf club in New Jersey for a two-hour dinner last Wednesday night to map out a trade-focused economic plan for his presidential bid. Trump and top aides, including former senior White House officials Larry Kudlow and Brooke Rollins, as well as outside advisers Stephen Moore and former House speaker Newt Gingrich, spent the dinner discussing how Trump…

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