Category : Economy

(Washington Post) ChatGPT took their jobs. Now they walk dogs and fix air conditioners.

Experts say that even advanced AI doesn’t match the writing skills of a human: It lacks personal voice and style, and it often churns out wrong, nonsensical or biased answers. But for many companies, the cost-cutting is worth a drop in quality.

“We’re really in a crisis point,” said Sarah T. Roberts, an associate professor at University of California in Los Angeles specializing in digital labor. “[AI] is coming for the jobs that were supposed to be automation-proof.”

AI and algorithms have been a part of the working world for decades. For years, consumer-product companies, grocery stores and warehouse logistics firms have used predictive algorithms and robots with AI-fueled vision systems to help make business decisions, automate some rote tasks and manage inventory. Industrial plants and factories have been dominated by robots for much of the 20th century, and countless office tasks have been replaced by software.

But the recent wave of generative artificial intelligence – which uses complex algorithms trained on billions of words and images from the open internet to produce text, images and audio – has the potential for a new stage of disruption. The technology’s ability to churn out human-sounding prose puts highly paid knowledge workers in the crosshairs for replacement, experts said.

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Posted in Labor/Labor Unions/Labor Market, Language, Science & Technology

(Economist Leader) Global fertility has collapsed, with profound economic consequences

In the roughly 250 years since the Industrial Revolution the world’s population, like its wealth, has exploded. Before the end of this century, however, the number of people on the planet could shrink for the first time since the Black Death. The root cause is not a surge in deaths, but a slump in births. Across much of the world the fertility rate, the average number of births per woman, is collapsing. Although the trend may be familiar, its extent and its consequences are not. Even as artificial intelligence (ai) leads to surging optimism in some quarters, the baby bust hangs over the future of the world economy.

In 2000 the world’s fertility rate was 2.7 births per woman, comfortably above the “replacement rate” of 2.1, at which a population is stable. Today it is 2.3 and falling. The largest 15 countries by gdp all have a fertility rate below the replacement rate. That includes America and much of the rich world, but also China and India, neither of which is rich but which together account for more than a third of the global population.

The result is that in much of the world the patter of tiny feet is being drowned out by the clatter of walking sticks. The prime examples of ageing countries are no longer just Japan and Italy but also include Brazil, Mexico and Thailand. By 2030 more than half the inhabitants of East and South-East Asia will be over 40. As the old die and are not fully replaced, populations are likely to shrink. Outside Africa, the world’s population is forecast to peak in the 2050s and end the century smaller than it is today. Even in Africa, the fertility rate is falling fast.

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Posted in * Economics, Politics, Children, Economy, Globalization, Labor/Labor Unions/Labor Market, Marriage & Family, Politics in General

(Telegraph) America’s Faustian Pact with runaway debt is coming due

The Republicans have capitulated on the US debt ceiling. This averts the risk of abrupt fiscal tightening in a slowing economy that has yet to digest the most aggressive monetary squeeze in over 40 years.

The putative accord between the White House and Congress does not even try to address the larger threat to America’s economic model and hegemonic status.

The Congressional Budget Office says the US is on course for fiscal deficits of 7pc of GDP as far as the eye can see.

Sacred entitlements remain untouchable. Middle-class welfare – ie. consumption – will continue to eat up an ever-greater share of the budget. It is this that is leading to slow fiscal ruin.

The gross debt-to-GDP ratio was 62pc in 2007 (IMF data). It will be 122pc this year, and 138pc by 2028, with no sign of reaching a plateau. By then it will have overtaken Italy.

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Posted in America/U.S.A., Budget, Economy, The National Deficit, The U.S. Government

(Economist) The American credit cycle is at a dangerous point–Welcome to a bad time for big debts

Since the end of 2009 nominal growth has been higher than nominal rates (aside from the first half of 2020, when the covid-19 pandemic crashed the economy). Now America is about to cross the threshold. In the first quarter of 2023, despite annualised real economic growth of only 1.1%, troublesomely high inflation meant that nominal gdp rose at an annualised rate of 5.1%, roughly in line with today’s federal funds rate. A panel of economists surveyed by Bloomberg, a data firm, anticipate that in the second quarter of the year growth will slip to just 0.4% and inflation to 3.3%. Nominal growth is forecast to be just 3.7%—well below nominal rates of around 5.2%.

“This is when the rubber really meets the road for the economic cycle,” notes Carl Riccadonna of bnp Paribas, a bank. “This is the point at which, if you’re a business, your revenues are now growing more slowly than your cost of financing.” Wage growth will lag debt growth. Government debts will grow faster than tax receipts. A single quarter of this might be bearable. Unfortunately, economists expect the situation to last a year or more.

The precise impact depends on the extent to which debt reprices as interest rates rise. The vast majority of American homeowners have 30-year fixed-rate mortgages. This generous financing will protect them against a pincer-like combo of slowing wage growth and rising interest expenses. Nevertheless, consumers carrying other kinds of debt—including revolving credit-card balances and private student loans—will feel the pinch.

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Posted in * Economics, Politics, America/U.S.A., Economy

A Quite Amazing WSJ Article on the only Residential Community in the USA INSIDE a Disney Resort– Golden Oak, Florida

Janis Scaramucci’s bedroom is decorated with paintings of Disney castles. In her office, a recessed ceiling in the shape of a Mickey Mouse head is painted in black glitter. The feet of her dining room table are made from coffee mugs featuring Mickey and Winnie the Pooh. And in her closet hangs a series of colorful Disney outfits, including a red skirt appliquéd with characters from the movie “Ratatouille.”

Welcome to Golden Oak, the only residential community in the world located on Walt Disney Co. resort property.

Ms. Scaramucci, a divorced 63-year-old Disney enthusiast and art collector, bought a $2.52 million home in the Orlando, Fla., community a few years ago after feeling dissatisfied with life in her suburban neighborhood in Edmond, Okla. Now, she spends her days riding roller coasters, attending nature conservation programs at Disney’s Animal Kingdom theme park, and traveling to destinations such as Antarctica on Disney cruises…..

But Mr. [Kevin] Tupy said that, in his experience, politics doesn’t come up much when Golden Oak residents get together.

“Disney is more of a religion,” he said. “We worship the mouse.”

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Posted in * Culture-Watch, * Economics, Politics, America/U.S.A., Economy, Housing/Real Estate Market, Movies & Television, Personal Finance

Local paper front page–Welcome to the Lithium Belt

GASTON COUNTY, N.C. — Nothing remains of the hilltop home that once stood at the end of this gravel road in western North Carolina. The house burned to the ground months ago.

Children’s bikes and firewood piles litter the yards of a half-dozen ranch homes down the hill that are next in line to be erased from the landscape. The company that will soon own them plans to have these homes torched, too. It is only interested in what lies beneath.

A hint of that prize sits a few steps into the forest, where craggy outcrops stand in the shade of tall loblolly pines. Look closely and you’ll see the rocks are marked with sparkling pinstripes of pale green.

Those pinstripes are evidence of lithium, a lightweight element used to power electric vehicle batteries. And that green is gold to Piedmont Lithium, the company planning to tunnel 500 feet into the earth here to mine the lucrative mineral.

Lithium is expected to fuel America’s transition away from gasoline-burning automobiles. In the process, that harvest could generate $3.9 billion for this rural community in five years, according to Piedmont, which penned an agreement with EV giant Tesla in January.

Along a certain stretch — where North Carolina, South Carolina and Georgia meet — lithium is quickly becoming king: It pushes up through the ground, oozes through recyclers’ shredding machines and will soon travel through the backwoods on aging rail lines. New mines — as many as three separate operations by 2030 — are only part of the story. Welcome to the Lithium Belt.

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Posted in * Economics, Politics, * South Carolina, Corporations/Corporate Life, Economy, Science & Technology, State Government, Travel

(WSJ) Debt-Ceiling Standoff Could Start a Recession, but Default Would Be Worse

Treasury Secretary Janet Yellen said that the government could become unable to pay bills on time by June 1. In that case, the Treasury Department could halt payments, such as to federal employees or veterans.

In a worst-case scenario, a failure to pay holders of U.S. government debt, a linchpin of the global financial system, could trigger severe recession and send stock prices plummeting and borrowing costs soaring.

Many economists don’t expect a default for the first time in U.S. history. But they outline three potential ways the standoff could affect the economy and financial system, ranging from not great to extremely scary.

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Posted in * Economics, Politics, Budget, Credit Markets, Currency Markets, Economy, House of Representatives, Politics in General, President Joe Biden, Senate, Stock Market, The U.S. Government

(Bloomberg) Almost 90 Million American Adults Struggle to Make Ends Meet, Census Says

More Americans struggle to meet expenses now than in the immediate aftermath of the Covid-19 pandemic, when millions lost their means of employment, a Census Bureau survey showed.

About 38.5% of American adults — or 89.1 million people — faced difficulty in paying for usual home expenses between April 26 and May 8, according to the latest Household Pulse Survey. That’s up from 34.4% a year ago and 26.7% during the same period in 2021.

The Census Bureau collaborates with multiple federal agencies to compile the survey developed during the pandemic to collect data and measure household experiences to help inform federal and state governments.

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Posted in * Culture-Watch, * Economics, Politics, America/U.S.A., Economy, Personal Finance & Investing

(Local Paper) Summerville, South Carolina hospital eyes 2-year, multi-million dollar expansion ahead of suburban boom

As more families across the country flock to the growing Lowcountry counties north of Charleston, Summerville Medical Center is preparing to meet the needs of an expanded population with a multi-million dollar expansion on its original campus.

This month, officials at the Summerville hospital announced it would officially start its over $60 million inpatient bed project in August. The project will add 56 new inpatient beds, a 40-percent increase to its existing 124 beds.

“As we work to meet the health needs of our community, it is vital that we add capacity and clinical programs,” said Jeff Taylor, the hospital’s CEO, in a recent press release.

Dorchester County’s population has exploded in recent years, with more than 18,000 residents moving to the county in the last two decades. Currently, over 166,000 people reside in the county. Projections put the number of residents at more than 200,000 by 2030, The Post and Courier previously reported. Many of those moving in are settling in the Summerville area.

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Posted in * South Carolina, Economy, Health & Medicine

(Economist Cover Story) How to worry wisely about artificial intelligence

This bubbling mixture of excitement and fear makes it hard to weigh the opportunities and risks. But lessons can be learned from other industries, and from past technological shifts. So what has changed to make ai so much more capable? How scared should you be? And what should governments do?

In a special Science section, we explore the workings of llms and their future direction. The first wave of modern ai systems, which emerged a decade ago, relied on carefully labelled training data. Once exposed to a sufficient number of labelled examples, they could learn to do things like recognise images or transcribe speech. Today’s systems do not require pre-labelling, and as a result can be trained using much larger data sets taken from online sources. llms can, in effect, be trained on the entire internet—which explains their capabilities, good and bad.

Those capabilities became apparent to a wider public when Chatgpt was released in November. A million people had used it within a week; 100m within two months. It was soon being used to generate school essays and wedding speeches. Chatgpt’s popularity, and Microsoft’s move to incorporate it into Bing, its search engine, prompted rival firms to release chatbots too.

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Posted in * Culture-Watch, Anthropology, Corporations/Corporate Life, Ethics / Moral Theology, History, Science & Technology

(FA) Can America the Win the AI Race?

…ultimately, to truly integrate and capitalize on AI, U.S. defense leaders will need to shift how they measure military capability. The Pentagon will never give artificial intelligence its due when it does not consider AI to be a key component of military strength. When military leaders appear before Congress to advocate for their budgets, they make their case in terms of industrial-age metrics. The navy, for example, lays out how many ships it requires, while the air force spells out how many aircraft it has to purchase. These measurements still matter, but what matters more today is the digital capabilities of these systems, such as whether the ships and planes have sensors to detect enemy forces, algorithms that can process information and enable better decision-making, and intelligent munitions to precisely strike targets. All these capabilities can be improved with artificial intelligence, and U.S. leaders must begin taking them into account.

It will not be easy for the armed forces to make these changes: the American military is a vast and unwieldy bureaucracy. It will also be hard for the U.S. government as a whole to adjust to the rise of AI, given how polarized Washington is. Reforms to high-skilled immigration, in particular, have run into repeat resistance from conservatives on Capitol Hill. And the fact that today’s AI systems have major limitations—and therefore require great caution and care during implementation—further complicates the process. Military service members will not use systems they do not trust, and so military officials must make sure that when AI is deployed it works as intended.

But the pieces of a better AI strategy are falling into place. The Pentagon may not yet properly measure the power of artificial intelligence, but it is paying much more attention to the technology. The federal government has increased spending and is exploring data and computing resources for academics. The White House is trying to make it easier for foreign STEM workers to come to the country. The United States, in other words, is working to ensure that China cannot fully catch up. If Washington ultimately maintains control over the semiconductor supply chain, maximizes the inflow of talent, and fields trustworthy systems, it will succeed in staying ahead. As the AI revolution reshapes global power, the United States can come out on top.

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Posted in America/U.S.A., Globalization, Politics in General, Science & Technology, The U.S. Government

(NYT front page top left) The USA Blacklisted an Israeli Spyware Firm. But Secretly the Two Had a Deal

 The secret contract was finalized on Nov. 8, 2021, a deal between a company that has acted as a front for the United States government and the American affiliate of a notorious Israeli hacking firm.

Under the arrangement, the Israeli firm, NSO Group, gave the U.S. government access to one of its most powerful weapons — a geolocation tool that can covertly track mobile phones around the world without the phone user’s knowledge or consent.

If the veiled nature of the deal was unusual — it was signed for the front company by a businessman using a fake name — the timing was extraordinary.

Only five days earlier, the Biden administration had announced it was taking action against NSO, whose hacking tools for years had been abused by governments around the world to spy on political dissidents, human rights activists and journalists. The White House placed NSO on a Commerce Department blacklist, declaring the company a national security threat and sending the message that American companies should stop doing business with it.

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Posted in America/U.S.A., Blogging & the Internet, Corporations/Corporate Life, Ethics / Moral Theology, Foreign Relations, Israel, Politics in General, Science & Technology

(Reuters) Elon Musk and others urge AI pause, citing ‘risks to society’

Elon Musk and a group of artificial intelligence experts and industry executives are calling for a six-month pause in developing systems more powerful than OpenAI’s newly launched GPT-4, in an open letter citing potential risks to society.

Earlier this month, Microsoft-backed OpenAI unveiled the fourth iteration of its GPT (Generative Pre-trained Transformer) AI program, which has wowed users by engaging them in human-like conversation, composing songs and summarising lengthy documents.

“Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable,” said the letter issued by the Future of Life Institute.

The non-profit is primarily funded by the Musk Foundation, as well as London-based group Founders Pledge, and Silicon Valley Community Foundation, according to the European Union’s transparency register.

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Posted in Anthropology, Corporations/Corporate Life, Ethics / Moral Theology, Science & Technology, Theology

(Northern Echo) The Archbishop of York urges Government to tackle social care crisis

Social care is facing a “very, very distressing situation”, the Archbishop of York has told Parliament as he urged Government action to tackle the crisis.

Speaking at Westminster, the Most Rev Stephen Cottrell painted a bleak picture in the region he represents, with vulnerable people not receiving the support they need, while recruitment and retention of staff was “appalling”.

The senior church leader raised his concerns as ministers were also pressed over reports that a promised £500 million investment in the adult social care workforce could be at risk.

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Posted in Archbishop of York Stephen Cottrell, Economy, England / UK, Health & Medicine, Religion & Culture

(WSJ) Most Americans Doubt Their Children Will Be Better Off, WSJ-NORC Poll Finds

The WSJ-NORC poll surveyed 1,019 adults from March 1 to 13, largely before the collapse of Silicon Valley Bank and subsequent turmoil in the financial industry. Roughly 4 in 10 cited healthcare and housing costs as big worries, and nearly two-thirds said inflation is a major concern.

“No matter how much they increase your pay, everything else is going up,” said Kristy Morrow, a coordinator for a hospital who lives in Big Spring, Texas. “I do fear that for the kids.”

Ms. Morrow, 37, said she’s concerned her children will be worse off because deep divisions in America have left people unable to fix the country’s problems. The single mother of two young boys and an adult daughter, who earns about $45,000 a year, said she traded her Chevrolet Tahoe for a GMC Terrain to lower her gas costs and is teaching her boys the importance of spending money on needs, not wants.

The findings showed fresh anxiety about the strength of the job market, which was a rare point of economic optimism as recently as last year. More than half of respondents said it wouldn’t be easy to find another job with comparable pay and benefits. That was the highest level since 2010, according to NORC’s General Social Survey.

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Posted in * Culture-Watch, America/U.S.A., Children, Economy, Marriage & Family, Psychology, Sociology

(The State) South Carolina’s top accountant to resign after $3.5B accounting error

South Carolina’s top accountant Richard Eckstrom says he will resign effective April 30 after disclosing to state lawmakers that he inflated the state’s cash balances for a decade, eventually reaching about $3.5 billion.

In a Thursday resignation letter to Gov. Henry McMaster, the comptroller general reiterated his advocacy that the Legislature move forward on legislation for a constitutional change to make his position appointed by the governor, rather than elected every four years by the voters. “Over the course of my time in public office I have taken great pride in the responsibility trusted to me,” Eckstrom, 74, wrote in his letter to McMaster, obtained by The State Media Co.

“I have been humble in my approach to the job an attribute I hope our constituents have recognized and will remember.” Eckstrom’s early resignation means the General Assembly will nominate and elect the next comptroller general during a joint assembly to be scheduled at a later date. Eckstrom’s leave also means he’ll avoid a trial in the Senate, a hearing legislators were soon going to announce would start April 11.

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Posted in * Economics, Politics, * South Carolina, Economy, Ethics / Moral Theology, State Government

(The Parliament Politics) Bp [of St. Albans] Alan Smith–Coroners currently do not need to record an opinion on the factors that may have caused a person to take their life this has to change

The industry makes most of its profits from those who are vulnerable, with 86% of online betting profits coming from 5% of customers. Most of thesepeople are already suffering from gambling–related harms or have been diagnosed as suffering from an addiction. Further, the statistics show that 35% of people with a gambling disorder receive daily incentives to gamble, compared to only 4% of those without. All too often there are reports in the media of people receiving offers of ‘free’ spins and the chance to be a ‘VIP customer’ when they have been trying to stop gambling.

Coroners currently do not need to record an opinion on the factors that may have caused a person to taketheir life. My Private Members Bill, the Coroners (Determination of Suicide) Bill aims to change that.

It is estimated that between 400 – 500 people take their lives each year in this country due to gambling. Yet when the House of Lords ministers answered my questions they claimed that there was no reliable statistics of the numbers of deaths caused by gambling. Furthermore, they showed little concern to find out.

If this bill comes into law, the requirement on coroners to record the ‘where, how and what’ questions associated with each suicide will remain unchanged. However, once this part of the inquesthas been concluded, each coroner will be required to record the co-morbidities of each suicide….

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Posted in * Culture-Watch, Church of England (CoE), CoE Bishops, Death / Burial / Funerals, England / UK, Ethics / Moral Theology, Gambling, Personal Finance, Psychology, Stress, Suicide

(Economist) How TikTok broke social media

The speed of the change is astonishing. Since entering America in 2017, TikTok has picked up more users than all but a handful of social-media apps, which have been around more than twice as long (see chart 1). Among young audiences, it crushes the competition. Americans aged 18-24 spend an hour a day on TikTok, twice as long as they spend on Instagram and Snapchat and more than five times as long as they spend on Facebook, which these days is mainly a medium for communicating with the grandparents (see chart 2).

TikTok’s success has prompted its rivals to reinvent themselves. Meta, which owns Facebook and Instagram, has turned both apps’ main feeds into algorithmically sorted “discovery engines” and launched Reels, a TikTok clone bolted onto Facebook and Instagram. Similar lookalike products have been created by YouTube (Shorts), Snapchat (Spotlight), Pinterest (Watch) and even Netflix (Fast Laughs). The latest TikTok-inspired makeover, announced on March 8th, was by Spotify, a music app whose homepage now features video clips that can be skipped by swiping up. (TikTok’s Chinese sister app, Douyin, is having a similar effect in its home market, where digital giants like Tencent are increasingly putting short videos at the centre of their offerings.)

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Posted in --Social Networking, Blogging & the Internet, China, Corporations/Corporate Life, Science & Technology

(Unherd) Giles Fraser–Justin Welby can’t read the room

And here is my real beef with Welby’s Church: managerialism. The backdrop to Welby’s appointment was the banking crisis and the subsequent Occupy camp at St Paul’s Cathedral. The Church needed to get a bit more this worldly, many thought. It needed to understand finance and business. When it came to capitalism, Welby was a grown-up, having worked for Elf Aquitaine in a previous life. And 11 years in the oil industry clearly shaped his thinking about organisational structures. The old, slightly bumbling high-table, soft-power understanding of Lambeth Palace was not for him. Welby wanted to change things and have access to levers of real executive power.

But the Church of England is not set up like this. It never has been. The parish system is the very model of subsidiarity. If anything, the Church is a bottom-up institution rather than top-down. You bow to your bishop, but you don’t necessarily do everything he asks. Under Welby, however, the centre has grown ever stronger, the parishes increasingly weaker. Max Weber famously divided power into the charismatic, the traditional and the legal/rational. Welby is the first archbishop who has tried to govern through the latter.

The “Save the Parish” movement was established as a fightback. Too many bishops became middle managers, hidden behind their laptops. Directives and new initiatives came down from head office, which many of the clergy, myself included, received with an inner groan. In the face of declining attendance, we all had to learn that evangelical up-speak, and get on with the paperwork. Morale has plummeted.

The Church’s reaction to Covid was the depressing conclusion of Welby’s legal/rational approach to power.

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Posted in --Justin Welby, Anthropology, Archbishop of Canterbury, Church of England, Corporations/Corporate Life, Ecclesiology, Ethics / Moral Theology, Parish Ministry, Pastoral Theology, Theology

(Wired) The Ugly Lessons of Silicon Valley Bank’s Collapse

‘So what has been uncovered in the week since we learned that Silicon Valley Bank was no more trustworthy than a crypto spam text? A startup culture once considered the gem of the economy has been exposed as careless with its money, clueless in its judgment of character, hypocritical in its ideology, and ruthless in exercising its political clout as a powerful special interest. Meanwhile, the financial world is still jittery, with other banks failing and just about everyone wondering what comes next. And from here on, the concept of a cap on FDIC insurance is at risk. But at least the SBV credit cards are working again. And VCs can take a victory lap as they brag about how they saved the day….’

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Posted in * Economics, Politics, Economy, The Banking System/Sector

A Reflection on Saint Joseph the Worker by Tarcisio Giuseppe Stramare for his Feast Day

ZENIT spoke with Father Tarcisio Giuseppe Stramare of the Congregation of Oblates of Saint Joseph, director of the Josephite Movement, about Tuesday’s feast of St. Joseph the Worker….

ZENIT: What does “Gospel of work” mean?

Father Stramare: “Gospel” is the Good News that refers to Jesus, the Savior of humanity. Well, despite the fact that in general we see Jesus as someone who teaches and does miracles, he was so identified with work that in his time he was regarded as “the son of the carpenter,” namely, an artisan himself. Among many possible activities, the Wisdom of God chose for Jesus manual work, entrusted the education of his Son not to the school of the learned but to a humble artisan, namely, St. Joseph.

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Posted in Anthropology, Church History, Labor/Labor Unions/Labor Market

(Economist) Lean, mean and surprisingly green–Why America is going to look more like Texas

If Texas points to the future, what lessons does it offer? One is that its leaders understood earlier than most that companies and people are mobile. Rick Perry, a former governor, went on “hunting trips” in search of business prey in other states; Greg Abbott, today’s governor, has followed suit. Covid-19 highlighted the attractions of a state which was quicker to leave lockdown than many others, such as California, and boasts a cheaper cost of living and fewer restrictions. Texas has offered some incentives to firms, but much of the growth has been down to the lure of a place with no income tax, lots of land for expansion, less red tape and a pro-business attitude. Granted, liberals and moderates abhor the state’s shrill, deep-red politics. Mr Abbott courts headlines by, for example, sending busloads of unauthorised immigrants to New York. Such stunts do not seem to have deterred many individuals or companies from moving to Texas, however; it remains to be seen whether recent draconian abortion laws will.

Another lesson from Texas is that nurturing one golden goose is not enough. The oil shock of the 1980s was painful, but the state has since diversified its economy. Finance and property have blossomed. The big cities all have different strengths: tech in Austin, energy in Houston, finance and more in Dallas. Instead of relying solely on oil and gas until the wells run dry, Texas has positioned itself on the cutting edge of new energy technologies (although listening to the rhetoric of the state’s politicians, you would not always know it). Places that have only one strong industry should start thinking about how they can use it as a platform to launch the next new thing.

The last lesson, however, is a cautionary one. For much of its history, Texas has had an exceptionally lean government. It has been loth to invest in the people and projects required for the future, including education and roads. Of late, as its formidable growth shows, it has got away with this. But the lean approach almost certainly has its limits, which it would be complacent to ignore.

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Posted in * Economics, Politics, America/U.S.A., Ecology, Economy, Politics in General, State Government

(Washington Post) Google is adding AI to its work apps. Here’s what that means.

Workers who have ever dreaded writing a briefing for your boss, building a digital presentation of your ideas or sifting through long email threads to get caught up on the latest projects may soon have some assistance — in the form of artificial intelligence.

At least that’s what Google aims to do for workers who use its suite of enterprise software tools called Google Workspace, which includes Google Docs, Google Sheets and Gmail. The tech giant plans to integrate its office products with generative AI that can do things like generate an entire document or create images based on a prompt. Workers will be able to access these capabilities by clicking a new wand icon that’ll appear in their apps.

Google plans to begin rolling out some features, starting with writing functions in Google Docs and Gmail, to select enterprise customers within the next couple of weeks, it said. It’s unclear when other features may become available.

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Posted in Corporations/Corporate Life, Labor/Labor Unions/Labor Market, Science & Technology

(NYT front page) The stunning demise of Silicon Valley Bank has spurred soul-searching about how large and regional banks are overseen

The Federal Reserve is facing criticism over Silicon Valley Bank’s collapse, with lawmakers and financial regulation experts asking why the regulator failed to catch and stop seemingly obvious risks. That concern is galvanizing a review of how the central bank oversees financial institutions — one that could end in stricter rules for a range of banks.

In particular, the episode could result in meaningful regulatory and supervisory changes for institutions — like Silicon Valley Bank — that are large but not large enough to be considered globally systemic and thus subject to tougher oversight and rules. Smaller banks face lighter regulations than the largest ones, which go through regular and extensive tests of their financial health and have to more closely police how much easy-to-tap cash they have to serve as a buffer in times of crisis.

Regulators and lawmakers are focused both on whether a deregulatory push in 2018, during the Trump administration, went too far, and on whether existing rules are sufficient in a changing world.

While it is too early to predict the outcome, the shock waves that Silicon Valley Bank’s demise sent through the financial system, and the sweeping response the government staged to prevent it from inciting a nationwide bank run, are clearly intensifying the pressure for stronger oversight.

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Posted in * Economics, Politics, Credit Markets, Currency Markets, Economy, Ethics / Moral Theology, Federal Reserve, House of Representatives, Law & Legal Issues, Politics in General, Senate, Stock Market, The Banking System/Sector

(Economist) What the loss of Silicon Valley Bank means for Silicon Valley

Another question is what will happen to the venture debt market. svb was a major player, with $6.7bn of such loans outstanding when it went under. Startups used this low-cost lending to top up balance-sheets between equity funding rounds. Most now expect such loans to become more expensive, especially for the youngest firms. Venture-capital outfits are unlikely to lower themselves en masse to the comparatively small returns offered by this sort of lending. Other wheels on the venture-capital machine will need oiling, too. For example, svb often provided bridge financing to venture-capital firms, allowing them to strike deals while awaiting cash from investors.

All this means that the loss of svb is likely to have a chilling effect on an industry already suffering from higher interest rates. Bankers may have to wait some time to see venture capital’s dry powder hit their deposit accounts—after all, in the last quarter, the amount of money flowing into startups globally fell by two-thirds. Limits on financing and difficulties banking baby firms will make the industry’s adjustment to higher rates more painful still. After such an adjustment, trips to the bank will remind dealmakers of their own mortality. That is not necessarily a bad thing.

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Posted in * Economics, Politics, Corporations/Corporate Life, Economy, The Banking System/Sector

(Economist) Don’t fear an AI-induced jobs apocalypse just yet

“I think we might exceed a one-to-one ratio of humanoid robots to humans,” Elon Musk declared on March 1st. Coming from the self-styled technoking of Tesla, it was not so much a prediction as a promise. Mr Musk’s car company is developing one such artificially intelligent automaton, codenamed Optimus, for use at home and in the factory. His remarks, made during Tesla’s investor day, were accompanied by a video of Optimus walking around apparently unassisted.

Given that Mr Musk did not elaborate how—or when—you get from a promotional clip to an army of more than 8bn robots, this might all smack of science-fiction. But he has waded into a very real debate about the future of work. For certain forms of ai-enabled automation are fast becoming science fact.

Since November Chatgpt, an ai conversationalist, has dazzled users with its passable impression of a human interlocutor. Other “generative” ais have been conjuring up similarly human-like texts, images and sounds by analysing reams of data on the internet. Last month the boss of ibm, a computing giant, forecast that ai will do away with much white-collar clerical work. On March 6th Microsoft announced the launch of a suite of ai “co-pilots” for workers in jobs ranging from sales and marketing to supply-chain management. Excitable observers murmur about a looming job apocalypse.

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Posted in * Economics, Politics, Anthropology, Corporations/Corporate Life, Economy, Ethics / Moral Theology, Labor/Labor Unions/Labor Market, Science & Technology

(FT) There’s a new US national security obsession — biotech

When the US last week added several units of BGI Group, a Chinese genetic sequencing firm, to its entity list restricting technology transfer, the primary justification was that the company had been “contributing to monitoring and surveillance”, including of ethnic minorities. Yet the human rights implications of China’s domestic surveillance state aren’t Washington’s only concern. The new regulations also state that BGI’s programmes of “collection and analysis of genetic data [present] a significant risk of diversion to China’s military”. 

Biotechnology has quietly become America’s newest national security concern. From Congress to the intelligence agencies, Washington’s leaders have concluded that control over biotechnologies will be critical not only to the country’s health, but to national security as well.

Biotech tools have made rapid advances of late, enabling new therapies, vaccines, manufacturing techniques — and biosecurity risks. It’s long been recognised that DNA is just a complex type of code, telling cells how to operate. Gene-editing technologies have become more precise and vastly cheaper, making it easier than ever to “reprogramme” organisms. In addition, more powerful computing capabilities have provided new clarity into the meaning of DNA’s “code”.

One use of these capabilities is for manufacturing. For centuries, humans have relied on micro-organisms to produce beer and yoghurt, but with the right reprogramming, bacteria can be made to produce many new types of chemicals. In 2010, Darpa, the Pentagon’s long-range R&D arm, launched a programme called Living Foundries, aiming to synthetically manufacture 1,000 molecules….

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Posted in * Economics, Politics, America/U.S.A., Corporations/Corporate Life, Defense, National Security, Military, Economy, Ethics / Moral Theology, Globalization, Science & Technology

(SA) Paul And Cathy Grimmond–Days well spent: What should Christians think about work?

The Bible begins with the words “In the beginning God created the heavens and the earth”. One chapter later, we’re told that when God created the world he was “at work”. That the very first thing we learn about God is that he is a worker is very significant.

The nations around Israel believed that humans were created because the gods didn’t want to work – work was beneath them. But the Scriptures show us a God who works. Work is not an evil necessity but something associated with God’s character and so, when he creates humans and tells them to go and work in his garden, this is not a jail sentence but a privilege.

Genesis 2 also tells us that God rested. He worked and he rested, and in so doing established a pattern for us. Humans aren’t made for work alone but for work and rest. And as Hebrews tells us, rest is ultimately about our eternal relationship with God. We are made for the heavenly rest where we enjoy the presence of the living God and life full of joy and relationship in a renewed heavens and earth.

Against this backdrop we read that God created us. And there are two really important truths here. First, we are created in the image of God. And second, as those created in God’s image we are created specifically for work.

When God made men and women – to fill the earth and to rule over it – he gave us the privilege of working as his agents in his creation. It’s easy for us to miss the significance of this. Work is very, very good. Work is not the thing that you do to get to the good bits. There is something good about work, even when it’s very “worky”! Even when it’s tiring and difficult.

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Posted in Anglican Church of Australia, Anthropology, Economy, Ethics / Moral Theology, Labor/Labor Unions/Labor Market, Theology

(FT) Xi Jinping set to overhaul China’s economic policy team at watershed congress

Xi Jinping, China’s most powerful leader since Mao Zedong, is preparing to use the upcoming rubber-stamp parliamentary session to launch a “forceful” overhaul of the government by appointing his most trusted acolytes to oversee the financial, technology and other sectors.

The annual National People’s Congress, which kicks off on Sunday, will replace Premier Li Keqiang, the head of government, and his team of technocrats that has been credited with steering the economy through the turmoil of the past five years. Important portfolios such as the financial sector may also be restructured.

Xi pledged at a meeting on Tuesday that the party was planning “far-reaching” changes which, aside from financial sector reform, would include exerting closer control over the technology and science sectors and — perhaps most ominously for business — increased party involvement in “non-public enterprises”.

The changes come at a sensitive moment for China’s economy, which was hamstrung by Xi’s draconian zero-Covid strategy last year and regulatory crackdowns on the tech and property sectors that have damaged business sentiment. Gross domestic product in 2022 grew just 3 per cent, well below the official target of 5.5 per cent.

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Posted in * Economics, Politics, China, Economy, Ethics / Moral Theology, Politics in General

(NYT front page) The Cultural and Partisan Divide Of Socially Conscious Investing

It’s been a widely accepted trend in financial circles for nearly two decades. But suddenly, Republicans have launched an assault on a philosophy that says that companies should be concerned with not just profits but also how their businesses affect the environment and society.

More than $18 trillion is held in investment funds that follow the investing principle known as E.S.G. — shorthand for prioritizing environmental, social and governance factors — a strategy that has been adopted by major corporations around the globe.

Now, Republicans around the country say Wall Street has taken a sharp left turn, attacking what they term “woke capitalism” and dragging businesses, their onetime allies, into the culture wars.

The rancor escalated on Tuesday as Republicans in Congress used their new majority in the House to vote by a margin of 216 to 204 to repeal a Department of Labor rule that allows retirement funds to consider climate change and other factors when choosing companies in which to invest. In the Senate, Republicans are lining up behind a similar effort and have been joined by Senator Joe Manchin III, Democrat of West Virginia.

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Posted in * Culture-Watch, * Economics, Politics, America/U.S.A., Ecology, Economy, Energy, Natural Resources, Ethics / Moral Theology, Stock Market