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Category: Economics/Business

Warren Buffett and the myth of the ‘good billionaire’

Warren Buffett and the myth of the ‘good billionaire’

Anand Giridharadas writes: Warren Buffett appears to be the safest kind of billionaire: the good kind. Mr. Buffett is neither Zuckerbergian messiah nor Musky provocateur, neither Bezosist space cadet nor Sacklerian undertaker. He is, or seems to be, quiet, humble, indifferent to money, philanthropic and critical of the system that allowed him to rise. Years ago, a proposed tax increase was named after him. It’s easy for people to think: If only members of the Sackler family were more like…

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Workers are gaining leverage over employers right before our eyes

Workers are gaining leverage over employers right before our eyes

Neil Irwin writes: The relationship between American businesses and their employees is undergoing a profound shift: For the first time in a generation, workers are gaining the upper hand. The change is broader than the pandemic-related signing bonuses at fast-food places. Up and down the wage scale, companies are becoming more willing to pay a little more, to train workers, to take chances on people without traditional qualifications, and to show greater flexibility in where and how people work. The…

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Just In Time is now running late

Just In Time is now running late

The New York Times reports: In the story of how the modern world was constructed, Toyota stands out as the mastermind of a monumental advance in industrial efficiency. The Japanese automaker pioneered so-called Just In Time manufacturing, in which parts are delivered to factories right as they are required, minimizing the need to stockpile them. Over the last half-century, this approach has captivated global business in industries far beyond autos. From fashion to food processing to pharmaceuticals, companies have embraced…

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Covid pandemic: How rising inequalities unfolded and why we cannot afford to ignore it

Covid pandemic: How rising inequalities unfolded and why we cannot afford to ignore it

Hyejin Kang/Shutterstock By Ian Goldin, University of Oxford Historian Walter Scheidel argues in The Great Leveler that pandemics are among the four great horsemen that, through history, have led to greater equality – the others being war, revolution and state failure. Economist Thomas Piketty in Capital in the Twenty-First Century similarly points out that the world wars and the flu pandemic in 1918 and 1919 contributed to the decline in inequality after 1945. But while mass death can drive up…

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Big Oil’s bad, bad day

Big Oil’s bad, bad day

Bill McKibben writes: In what may be the most cataclysmic day so far for the traditional fossil-fuel industry, a remarkable set of shareholder votes and court rulings have scrambled the future of three of the world’s largest oil companies. On Wednesday, a court in the Netherlands ordered Royal Dutch Shell to dramatically cut its emissions over the next decade—a mandate it can likely only meet by dramatically changing its business model. A few hours later, sixty-one per cent of shareholders…

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Green finance goes mainstream, lining up trillions behind global energy transition

Green finance goes mainstream, lining up trillions behind global energy transition

The Wall Street Journal reports: Some of the world’s biggest companies and deepest-pocketed investors are lining up trillions of dollars to finance a shift away from fossil fuels. Assets in investment funds focused partly on the environment reached almost $2 trillion globally in the first quarter, more than tripling in three years. Investors are putting $3 billion a day into these funds. More than $5 billion worth of bonds and loans designed to fund green initiatives are now issued every…

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Bitcoin mining is giving new life to old fossil-fuel power plants

Bitcoin mining is giving new life to old fossil-fuel power plants

The Wall Street Journal reports: Across America, older fossil-fuel power plants are shutting down in favor of renewable energy. But some are getting a new lease on life—to mine bitcoin. In upstate New York, an idled coal plant has been restarted, fueled by natural gas, to mine cryptocurrency. A once-struggling Montana coal plant is now scaling up to do the same. The lofty price of bitcoin and other cryptocurrencies has investors pouring money into power generation—and risking a backlash. Elon…

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How companies rip off poor employees — and get away with it

How companies rip off poor employees — and get away with it

The Associated Press reports: Already battered by long shifts and high infection rates, essential workers struggling through the pandemic face another hazard of hard times: employers who steal their wages. When a recession hits, U.S. companies are more likely to stiff their lowest-wage workers. These businesses often pay less than the minimum wage, make employees work off the clock, or refuse to pay overtime rates. In the most egregious cases, bosses don’t pay their employees at all. Companies that hire…

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U.S. Labor Secretary throws his support behind classifying gig workers as employees

U.S. Labor Secretary throws his support behind classifying gig workers as employees

Reuters reports: A lot of gig workers in the United States should be classified as “employees” who deserve work benefits, President Biden’s labor secretary said on Thursday, suggesting a shift in policy that is likely to raise costs for companies that depend on contractors such as Uber and Lyft. Labor Secretary Marty Walsh, a son of Irish immigrants and a former union member, has been expected to boost the Biden Administration’s efforts to expand workers’ protections and deliver a win…

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Banks produce 700 times more greenhouse gas emissions from loans than offices

Banks produce 700 times more greenhouse gas emissions from loans than offices

Bloomberg reports: It’s through their loan books and investment portfolios that banks and asset managers make their biggest contribution to climate change. The greenhouse gas emissions associated with financial institutions’ investing, lending and underwriting activities are more than 700 times higher, on average, than their direct emissions, according to a report published Wednesday by climate nonprofit CDP. While banks generate emissions from heating their buildings and flying executives to meetings — when pandemic restrictions allow — “almost all climate-related impacts…

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Why Bitcoin is bad for the environment

Why Bitcoin is bad for the environment

Elizabeth Kolbert writes: Money, it’s often said, is a shared fiction. I give you a slip of paper or, more likely these days, a piece of plastic. You hand me eggs or butter or a White Chocolate Mocha Frappuccino, and we both walk away satisfied. With cryptocurrency, the arrangement is more like a shared metafiction, and the instability of the genre is, presumably, part of the thrill. Dogecoin, a cryptocurrency that was created as a spoof, has risen in value…

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CEO pay remains stratospheric, even at companies battered by pandemic

CEO pay remains stratospheric, even at companies battered by pandemic

The New York Times reports: Boeing had a historically bad 2020. Its 737 Max was grounded for most of the year after two deadly crashes, the pandemic decimated its business, and the company announced plans to lay off 30,000 workers and reported a $12 billion loss. Nonetheless, its chief executive, David Calhoun, was rewarded with some $21.1 million in compensation. Norwegian Cruise Line barely survived the year. With the cruise industry at a standstill, the company lost $4 billion and…

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After pandemic, shrinking need for office space could crush landlords

After pandemic, shrinking need for office space could crush landlords

The New York Times reports: As office vacancies climb to their highest levels in decades with businesses giving up office space and embracing remote work, the real estate industry in many American cities faces a potentially grave threat. Businesses have discovered during the pandemic that they can function with nearly all of their workers out of the office, an arrangement many intend to continue in some form. That could wallop the big property companies that build and own office buildings…

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If you sell a house these days, the buyer might be a pension fund

If you sell a house these days, the buyer might be a pension fund

The Wall Street Journal reports: A bidding war broke out this winter at a new subdivision north of Houston. But the prize this time was the entire subdivision, not just a single suburban house, illustrating the rise of big investors as a potent new force in the U.S. housing market. D.R. Horton Inc. built 124 houses in Conroe, Texas, rented them out and then put the whole community, Amber Pines at Fosters Ridge, on the block. A Who’s Who of…

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I have come to bury Ayn Rand

I have come to bury Ayn Rand

David Sloan Wilson writes: My father, Sloan Wilson, wrote novels that would help define 1950s America. I loved and admired him, but the prospect of following in the footsteps of The Man in the Gray Flannel Suit and A Summer Place was like being expected to climb Mount Everest. My love of nature provided an alternative path. I would become an ecologist, spending my days researching plants and animals, which fascinated me since the summers I spent as a boy…

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Remote work is here to stay. New York City faces a cataclysmic challenge after the pandemic ends

Remote work is here to stay. New York City faces a cataclysmic challenge after the pandemic ends

The New York Times reports: Spotify’s headquarters in the United States fills 16 floors of 4 World Trade Center, a towering office building in Lower Manhattan that was the first to rise on the site of the 2001 terror attacks. Its offices will probably never be full again: Spotify has told employees they can work anywhere, even in another state. A few floors down, MediaMath, an advertising tech company, is planning to abandon its space, a decision fueled by its…

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