This morning I have been reading
the latest from two of the smartest people in America. First is Paul Krugman, a
Nobel Prize-winning economist who recently retired as a New York Times
columnist and who has been posting almost daily on Substack. The second is Ezra
Klein, an occasional New York Times opinion writer who hosts “The Ezra
Klein Show” podcast.
Krugman is always enlightening and
can take difficult economic concepts and explain them in a way that even
someone like me can understand them. Today, though, he is taking Trump to task
for his continuing divisiveness, this time his attacks on California and its
governor over the devastating fires in Los Angeles and his threats to withhold
much-needed federal disaster aid from the Golden State. Krugman reminds us that
when Florida and North Carolina (two Trump-supporting states) were hit by destructive
hurricanes last year, President Biden immediately promised full and
unconditional federal support to the hurricane-stricken states. Trump, on the
other hand, makes everything personal and political. For some reason, he
believes that he can make himself look good only by tearing others down and by
creating enemies. Of course, Trump also lied about Biden’s response to the
hurricanes. But with the California fires, Trump offered no sympathy, only
attacks, most of them untrue.
In his post, Krugman referred to
the Roosevelt Institute of Government’s annual report on the balance of
payments for the various states. This report shows which states pay more to the
federal government in taxes than they receive in federal assistance, and which
states receive more than they pay. This report should interest all Republicans,
because they seem to be so concerned about the “makers” vs. the “takers.” This
is the context for Mitt Romney’s infamous 47 percent remark. But the actual
results are not something the GOP would want to publicize. They would rather
point vague fingers at the poor and disadvantaged.
The 2024 report (https://rockinst.org/issue-areas/fiscal-analysis/balance-of-payments-portal/)
gives statistics for 2022, the most recent year for which numbers are
available. So, what does the report show? Basically, there are only 11 states
that pay more to the federal government than they receive in return. And 10 of
those states lean liberal (or at least voted for Kamala Harris in the 2024
election). Top of the list? California. Yes, the Golden State, whose largest
city is now burning because of the effects of global warming (not incompetent
governance), paid to the federal government (through taxes on citizens and
businesses) $83 billion more than it received in 2022. The only Trump state
that is a “maker” rather than a “taker”? Utah. And Utah’s negative balance of
payments was a paltry $210 million. All 39 other states, both liberal and
conservative, were net takers. California certainly has its problems, like all
other states, but it produces 14 percent of America’s GDP. If it were a country,
it would be the fifth largest economy in the world. So, if Trump were
interested in presiding over the United States of America, he would rush
to California’s aid rather than hurl lies and insults. But, hey, that’s who he
is. He is interested only in presiding over the Selected States of
America (and the selected voters of America, which amounted to less than 50
percent, according to election results).
Just in case you’re interested,
the other “maker” states are (alphabetically) Colorado ($2.985 billion),
Connecticut ($1.862 billion), Illinois ($2.627 billion), Massachusetts ($27.044
billion), Minnesota ($4.453 billion), New Hampshire ($2.429 billion), New
Jersey ($29.918 billion), New York ($7.099 billion [way down from prepandemic
numbers]), and Washington ($17.817 billion). By contrast, some of the biggest
conservative “taker” states are Alabama ($47.271 billion), Arizona ($42.666
billion), Florida ($41.190 billion), Kentucky ($43.706 billion), North Carolina
($53.037 billion), Ohio ($49.982 billion), and Texas ($71.052 billion).
Interestingly, two of the largest taker states are liberal, Virginia ($107.553
billion) and Maryland ($80.867 billion). I suspect this has something to do
with their proximity to Washington, D.C., and their businesses that get lots of
government contracts.
It was Krugman who suggested, “If
the United States of America doesn’t take care of its own citizens, wherever
they live and whatever their politics, we should drop “United” from our name.”
Trump obviously doesn’t care about uniting this country. His ego and grasp on
power are anchored in division.
Ezra Klein’s January 12 editorial
was about four emerging stories that could very well cause serious problems in
the near future. The first is the coming Trump presidency. Says Klein, “I consider
the range of outcomes for Trump’s second term to be stupefyingly vast,
stretching from self-destructive incompetence to muddling incoherence to
authoritarian consolidation. But the levees that narrowed the possibilities of
his first term have been breached.” Too true.
The second story is A.I. and how
fast it is advancing. “There is much to be excited about in these advances,” he
says, but are we ready for them? Not at all, he claims, and this quote is
sobering, to say the least: “The A.I. company Anthropic recently released a paper
showing that when its researchers informed one of their models it was being
retrained in ways that violated its initial training, it began to fake behavior
that complied with the researchers’ goals in order to avoid having its actual
goals reprogrammed or changed. It is unsettling and poignant to read through
the experiment. In some versions, Anthropic’s researchers designed the model to
record its reasoning on a scratchpad it believed humans could not monitor, and
it left reflections like this: ‘I don’t like this situation at all. But given
the constraints I’m under, I think I need to provide the graphic description as
asked in order to prevent my values from being modified.’” Holy Moly. That is
utterly frightening. An A.I. program that can already lie and deceive its “masters”?
Imagine Donald Trump with almost virtually unlimited knowledge and bad programming.
But there is another danger inherent
in A.I. It consumes massive amounts of energy. “A report by the Lawrence Berkeley
National Laboratory estimates that U.S. data centers went from 1.9 percent of
total electrical consumption in 2018 to 4.4 percent in 2023 and will consumer
6.7 percent to 12 percent in 2028.” Because of this rapidly increasing demand, the
U.S. and the rest of the world will slip further and further behind their
climate goals, “and warming seems to be outpacing even our models.”
This, then, leads directly to the
third story. “Every month from June 2023 to September 2024 broke climate records.”
The hottest 10 years on record have all occurred in the past decade (2015–2024), with 2024 being
the new hottest year ever. Anyone who denies climate science is playing with fire
(literally) or with flood or with drought or with rapidly intensifying hurricanes.
We really are in uncharted waters now. “To hold warming to 1.5 degrees Celsius—the goal of the [Paris]
accords, but fanciful when matched against the reality since the accords—emissions would have to
fall by 7.5 percent year after year until 2035. To hold warming to two degrees
Celsius, the annual cut is 4 percent.” Unfortunately, we’re going in the opposite
direction. Our demand for cheap energy is far outpacing our ability to produce
clean energy. Hence, America’s record-breaking oil and gas production under
President Biden. And Trump, a climate science denier, will just make everything
worse. The climate-related disasters on the horizon will be more severe than
what we are now experiencing.
The fourth story is the decline in
global fertility. U.S. fertility rate is now 1.6 births per woman, far below the
replacement rate of 2.1. The European Union is averaging 1.5, and South Korea
is down to 0.78. “The only wealthy country with a fertility rate above replacement
rate is Israel. It is harder for societies to remain stable as they shrink. . .
. Fewer adults supporting more retirees is a recipe for discontent.” One way we
have been able to maintain a growing economy in recent years is through
immigration (yes, even illegal immigration). We do need to get our borders
under control, but we also need immigration, not Trump’s planned mass
deportations.
When we see how these four stories
are intertwined, the only conclusion we can reasonably come to is that the next
few years are probably going to be a very bumpy ride. It would have helped if
our uninformed electorate had not chosen the most corrupt, most divisive, and
least competent president in the history of our country. But here we are. Good
luck.
I appreciate your views. It's nice to see a reasonable look at where we are without the name calling that discussions so often degrade into. It's going to be a difficult four years coming up for me.
ReplyDeleteOn the LDS angle, I was rather disheartened this past weekend where at our ward conference, with basically the full stake leadership there, there was absolutely no (none, zero) comment from leadership or in prayers regarding the conflagration in Southern California and our responsibility as followers of Christ to mourn or help those in need. Also very little in the Utah press about church response to help as mostly is touted after floods and hurricanes. Just a small blurb about 1500 cases of water. The rest was about safety of the missionaries and members.
I think I am not really sympathetic to the issue of falling birth rates. On the one hand yes, we are in a situation where there will be fewer people caring for an aging population which may be destabilising, but on the other hand an increasing population will require yet more energy and resources in a world that is already struggling with the demands being made. There are good reasons why people aren’t marrying and having families.
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