“This is not your grandfather’s airline business,” says Ray Neidl, an aviation consultant for Nexa Capital and former American Airlines official, who notes that the lessening of cutthroat competition doesn’t mean consumers won’t see some benefit. For instance, the financial strength of the airlines will enable them to invest in new technology””including the latest fuel-efficient aircraft and a cutting-edge satellite navigation system to replace the country’s aging radar-based air-traffic control. “It took us 35 years to get there, but it’s almost a brand-new industry,” Neidl says. Indeed, United says that the economic benefits of its merger with Continental allowed it to make much-needed upgrades, such as modernizing airport baggage systems and replacing its aging 757 fleet with new jets with better bin space and in-flight entertainment.

…the airlines’ gain could be the passengers’ loss, as carriers raise prices and rein in spending””often by slashing staff. While fares have, on average, remained relatively stable, fees for add-ons have soared and decreased competition has resulted in steep price hikes in several markets.

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Two-thirds of the way through George Packer’s harrowing and magisterial account of post-2008 America, we meet a Florida boat builder named Jack Hamersma ”“ a rough-hewn, working-class guy who’d climbed up the economic ladder only to find himself drawn into the maelstrom of the real-estate speculation that destroyed huge tracts of suburbia in the wake of the Lehman Brothers collapse.

Like thousands of naïve speculators ”“ the 1920s-era shoeshine boys with the hot stock tip ”“ Hamersma’s savings were tied up in a heavily mortgaged house that lost most of its value after the bubble burst. With repo men circling and foreclosure looming, he retained Matthew Weidner, a small-time Florida lawyer (think Paul Newman in The Verdict) to defend him against the venality of a banking sector that imploded after an orgy of deregulated and frequently fraudulent greed.

The lawyer was able to keep the lenders from foreclosing on Hamersma. But as lawsuit dragged on, Hamersma’s life unwound into insolvency and costly cancer diagnoses. “That happened a lot to Weidner’s clients ”“ the job, the house, their health, usually in that order,” writes Packer, a New Yorker staff writer, novelist and playwright. “Weidner watched Jack shrink before his eyes, dropping a hundred pounds until, three years after that first consultation, he limped into the office one afternoon to discuss his case, wasted legs sticking out of his shorts, a canvas bag hanging over his shoulder, from which a drip tube extended under a bandage on his chest.”

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In the near future, he said, United Methodist annual conferences may be able to reduce health coverage costs by allowing local churches to send lower-paid clergy and lay employees to the exchanges.

However, [Andrew Q.] Hendren warns that conferences also should be wary of sending too many church employees onto the exchanges or they may have too small a pool of people to buy affordable insurance.

“The conferences will have to balance that potential savings with the risk to the remaining smaller plan made up of a few large churches and small churches with higher paid clergy and lay employees,” he said. “The smaller plan may be less cost-effective, and appointment frictions may develop as local churches may prefer premium tax-credit-eligible clergy over higher paid clergy ”” two concerns in a connectional system like ours.”

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[George] Gilman anticipated, by some 30 years, the fundamental contours of industrial-age selling. Both the high-end faux-naturalism of Whole Foods and the budget industrial starkness of Costco have their origins in the original A&P retail experience. The modern system of retail pioneered by Gilman ”” distant large-scale production facilities coupled with local human-scale consumption environments ”” was the first piece of what I’ve come to think of as the ”˜American cloud’: the vast industrial back end of our lives that we access via a theatre of manufactured experiences. If distant tea and coffee plantations were the first modern clouds, A&P stores and mail-order catalogues were the first browsers and apps.

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This toddler is bound to be a thrifty spender.

Fourteen-month-old Sorella Stoute has already made her first adult purchase ”” a 1962 Austin-Healey Sprite.

While her dad wasn’t looking, the little girl used his smartphone to snag the car for a clean $225 on eBay.

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Last month, Canada was lauded by the OECD for how its college system connects graduates with the labour market and leads to lower youth unemployment. In its annual global education survey, the OECD found that youth employment in countries where vocational training was strong fared better in the last recession and recovered faster.

Yet a bit of rifling through the report suggests that Canada is quite unusual among countries with vocational education: We wait a very long time to offer it. As a result, we are one of the few countries where more people graduate from postsecondary than high school. We think that having lots of graduates from higher ed is good. But what if it means that we waste an awful lot of time in high school?

Compare Germany, Austria, Poland and Slovenia. There, partnerships between business and schools start in high school and training continues throughout one’s career, leading to promotions and advancement in spite of the “lack” of postsecondary credentials.

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The official unemployment rate is 7.6%. However, if you start counting all the people who want a job but gave up, all the people with part-time jobs that want a full-time job, all the people who dropped off the unemployment rolls because their unemployment benefits ran out, etc., you get a closer picture of what the unemployment rate is. That number is in the last row labeled U-6.

U-6 is much higher at 14.3% [and note that month over month U-6 ROSE from 13.8% to 14.3%]. Both numbers would be way higher still, were it not for millions dropping out of the labor force over the past few years.

Read it all and he also has more on this today. I have emphasized the importance of U-6 as the best gauge of the employment situation over and over and over again–KSH.

… the geopolitics are favorable and the ideological climate is warming. But on a still-deeper level this is shaping up to be an even more American century than the last. The global game is moving towards America’s home court.

The great trend of this century is the accelerating and deepening wave of change sweeping through every element of human life. Each year sees more scientists with better funding, better instruments and faster, smarter computers probing deeper and seeing further into the mysteries of the physical world. Each year more entrepreneurs are seeking to convert those discoveries and insights into ways to produce new things, or to make old things better and more cheaply. Each year the world’s financial markets are more eager and better prepared to fund new startups, underwrite new investments, and otherwise help entrepreneurs and firms deploy new knowledge and insight more rapidly….This challenge will not go away….

Everybody is going to feel the stress, but the United States of America is better placed to surf this transformation than any other country. Change is our home field. It is who we are and what we do. Brazil may be the country of the future, but America is its hometown.

Read it all (dated, but still oh so relevant).

Two more Portuguese ministers from the junior ruling coalition party were ready to resign on Wednesday, local media said, deepening turmoil that could trigger a snap election and derail Lisbon’s exit from an EU/IMF bailout.

Multiple newspaper radio and television reports said Agriculture Minister Assuncao Cristas and Social Security Minister Pedro Mota Soares will follow their CDS-PP party leader Paulo Portas who tendered his resignation on Tuesday. Party officials were not available to comment as the party’s executive commission was in a meeting.

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The White House on Tuesday delayed for one year a requirement under the Affordable Care Act that businesses provide health insurance to employees, a fresh setback for President Obama’s landmark health-care overhaul as it enters a critical phase.

The provision, commonly known as the employer mandate, calls for businesses with 50 or more workers to provide affordable quality insurance to workers or pay a $2,000 fine per employee. Business groups had objected to the provision, which now will take effect in January 2015.

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The Muslim Brotherhood, among the most powerful forces in Egypt, is facing perhaps the worst crisis in its 80-year history. Its members have been gunned down in the streets. Its new headquarters have been ransacked and burned, its political leader, President Mohamed Morsi, abandoned, threatened and isolated by old foes and recent allies.

It is a steep fall for the pre-eminent Islamist movement in the region, and especially surprising for a group that was elected just one year ago. Its critics say the Brotherhood remains stuck in old divisions, pitting Islamists against the military, and has failed to heed the demands of ordinary citizens.

“I think this is an existential crisis, and it’s much more serious than what they were subjected to by Nasser or Mubarak,” said Khaled Fahmy, a historian at the American University in Cairo, referring to the governments of Gamal Abdel Nasser and Hosni Mubarak, the autocrat deposed in 2011. “The Egyptian people are increasingly saying it is not about Islam versus secularism,” Mr. Fahmy said. “It is about Egypt versus a clique.”

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If legislators don’t stop granting favors to tech companies, they could transform Silicon Valley from a beacon of innovation into another dreary group of companies relying on government to protect them from competitors, argue George Mason University researchers Adam Theirer and Brent Skorup in a new paper about the history of cronyism in the tech sector. They also suggest that perhaps Silicon Valley should voluntarily disengage from the game.

Not likely. Silicon Valley’s lobbying spending has ballooned in recent years, with Google (GOOG) alone spending $18.2 million last year, more than AT&T (T), Boeing (BA), or Lockheed Martin (LMT), according to the Center for Responsive Politics. But if you really want to see the tech sector resembling every other deal-making, legislator-bullying, favor-seeking industry it claims to be different than, flip to Theirer and Skorup’s section on state and local governments. Tech companies have been getting deeply into the time-honored game of threatening to leave towns that want taxes from them. Some examples from the report….

Before you go and read it all, answer the quiz–how much did Google spend on lobbying last year (2012)?

Parish incomes continue to increase, passing £900 million for first time at £916 million, up £20 million on 2010, according to the latest parish finance statistics published by the Church of England.

Income from giving in 2011 increased by 1.3% to £546 million, with planned giving exceeding £10 per subscriber each week for the first time and tax-efficient giving reaching £10.70 a week. At £46.40 a month, this is more than double the average donation to the charitable sector of £17.00 a month.

Dr John Preston, National Stewardship Officer, said, “2011 saw another year of increased parish incomes and giving, in large part due to the faith and commitment of regular givers. Although overall growth in income was lower than inflation, it is encouraging to note that the average weekly gift from our planned givers has risen by a further 3%.”

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Healthy consumers could see insurance rates double or even triple when they look for individual coverage under the federal health law later this year, while the premiums paid by sicker people are set to become more affordable, according to a Wall Street Journal analysis of coverage to be sold on the law’s new exchanges.

The exchanges, the centerpiece of President Barack Obama’s health-care law, look likely to offer few if any of the cut-rate policies that healthy people can now buy, according to the Journal’s analysis. At the same time, the top prices look to be within reach for many people who previously faced sky-high premiums because of chronic illnesses or who couldn’t buy insurance at all.

Read it all (another link may be found there).

Seven months pregnant, at a time when most expectant couples are stockpiling diapers and choosing car seats, Renée Martin was struggling with bigger purchases.

At a prenatal class in March, she was told about epidural anesthesia and was given the option of using a birthing tub during labor. To each offer, she had one gnawing question: “How much is that going to cost?”

Though Ms. Martin, 31, and her husband, Mark Willett, are both professionals with health insurance, her current policy does not cover maternity care. So the couple had to approach the nine months that led to the birth of their daughter in May like an extended shopping trip though the American health care bazaar, sorting through an array of maternity services that most often have no clear price and ”” with no insurer to haggle on their behalf ”” trying to negotiate discounts from hospitals and doctors.

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The Church of England is backing a bid for hundreds of branches being offloaded by Royal Bank of Scotland, raising the prospect of a new, ethical bank on the high street.

The Church Commissioners, who manage the Church’s investments, are helping to fund a consortium led by the former banker and trade minister Lord Davies looking to take control of 315 RBS branches.

With investment decisions by the Church Commissioners taking into account the advice of the Church of England’s Ethical Investment Advisory Group, this would suggest consumers will have a new, ethical banking option if the consortium is successful.

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Almost a third of 32 hospitals and health systems involved in an experiment aimed at changing the way medical providers are paid may exit the program, a potential threat to the Affordable Care Act’s ambitious cost-saving goals.

Depending on the number of patients involved, “it really shows a critical cost-containment approach in the Affordable Care Act is running into real problems,” said Robert Blendon, a health-policy professor at Harvard University’s School of Public Health, in a telephone interview today.

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“The recovery has basically been a recovery for a tiny fraction of the population,” said Geoffrey Godbey, professor emeritus at Pennsylvania State University and co-author of “Time For Life: The Surprising Ways Americans Use Their Time.” “What you’re seeing is people who might want more work but aren’t getting it,” he said.

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The traditional view of creativity is that it is unstructured and doesn’t follow rules or patterns. Would-be innovators are told to “think outside the box,” “start with a problem and then brainstorm ideas for a solution,” “go wild making analogies to things that have nothing to do with your product or service.”

We advocate a radically different approach: thinking inside the proverbial box, not outside of it. People are at their most creative when they focus on the internal aspects of a situation or problem””and when they constrain their options rather than broaden them. By defining and then closing the boundaries of a particular creative challenge, most of us can be more consistently creative””and certainly more productive than we are when playing word-association games in front of flip charts or talking about grand abstractions at a company retreat.

Our method works by taking a product, concept, situation, service or process and breaking it into components or attributes. Using one of five techniques, innovators can manipulate the components to create new-to-the-world ideas that can then be put to valuable use.

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The only thing that stands between the individual and a power-hungry government are what is known as “intermediate institutions.” Churches, civic associations, clubs, business groups, and especially families, are all institutions that claim a certain level of allegiance from individuals, and help us govern ourselves. As Alexis de Tocqueville noted in his masterful Democracy in America, they provide the best protection from an over-reaching government.

But when those institutions-especially the family–abandon their responsibility, the government is only too happy to step in. Too many parents have ceded their responsibility to disciple, educate, feed, train and care for their children to others, especially the government. The government has been talking to our kids about sex for years. So it’s not that difficult to see why they would think they have the prerogative to “fix” the consequences of that behavior also.

I’m not saying government is bad: it’s not, it’s biblically ordained for a specific purpose. And Chuck [Colson] described that purpose a few years ago: “I’ve said it until I’m blue in the face,” he said, “and I’ll say it until I’m purple: The biblical view of the role of government is to preserve order, restrain evil, and promote justice. Government has no legitimate interest in running car companies, the healthcare industry, or taking over student loans.”

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Global markets have fallen sharply after the Federal Reserve signalled it may begin to scale back its stimulus of the US economy later this year.

On Wall Street, the Dow Jones dropped 354 points, or 2.3%, to close at 14,758, while the S&P 500 had its worst day since November 2011, shedding 2.5%.

European stock markets were down 3% or more by the close….

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In Association for Molecular Pathology v. Myriad Genetics, the [Supreme Court]… ruled that “a naturally occurring segment” of DNA ”” genetic material that has been isolated from human chromosomes ”” cannot be patented because it is simply a product of nature. For policy wonks, the case was a David-and-Goliath fight, one of the most important patent cases in a decade, with an outcome sure to affect the $100 billion biotechnology industry, no matter how it was decided.

But while the Supreme Court’s ruling has been welcomed enthusiastically by many, the Myriad case has been only a modest victory for the advocates of genetic-data sharing. Indeed, none of the underlying tensions have truly been resolved: we still need to find a way for the biotech industry to keep a competitive advantage without endangering the welfare of patients and slowing medication innovation.

In reality, gene patents were only one part of the problem. A more vexing, and still pressing, issue is how companies withhold genetic data as a trade secret.

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The fact that economics tell us to discount — as in make less of — each dollar owed or received in the distant future, however, doesn’t mean a government can ignore those obligations and receipts, especially if there are loads of future obligations relative to receipts.

Take the just-released 2013 Trustees Report on Social Security’s long-run finances. Table IVB6 shows an infinite horizon fiscal gap of $23.1 trillion separating the Social Security system’s projected costs and taxes after taking into account the several trillion in the Social Security trust fund. To give you a sense of how massive this shortfall is — and it grew by fully 8 percent last year alone — it is 50 percent larger than U.S. GDP and almost twice the size of total federal debt held by the public.

Table IVB6 also reports Social Security’s fiscal gap over the next 75 years. It’s much smaller — only $9.6 trillion, and that’s the number people tend to use in discussion. But that number is only 41 percent of the actual economic gap: $23.1 trillion. Thus, the 75-year fiscal gap hides three fifths of the system’s true long-term shortfall.

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Remember a few years back, when teenagers left MySpace in droves for this new thing called Facebook? Grown-ups soon followed suit (not that they were ever much on MySpace), and joined Facebook by the hundreds of millions ”“ which made it far less cool for their kids. So where on the Web are teens going now, and what can you learn from them?

A recent study from the Pew Internet & American Life Project found that 94% of American teens still have a Facebook account, but they’re using it less, and using it more carefully. More than half have tightened down their privacy settings and regularly delete or edit previous posts.

But even with tightened privacy settings, teens have realized that Facebook is more like a family picnic than the private party they want it to be. They still share photos and use Facebook messaging, but they are increasingly turning to newer social networks to fill the function of traditional status updates. So which sites are they using ”“ and why?

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The Federal Reserve chairman, Ben S. Bernanke, said on Wednesday that the central bank intended to reduce its monetary stimulus later this year ”” and end the bond purchases entirely by the middle of next year ”” if unemployment continued to decline at the pace that the Fed expected.

Mr. Bernanke said that the Fed planned to continue the asset purchases until the unemployment rate fell to about 7 percent, the first time that the Fed has specified an economic objective for the bond-buying. The rate stood at 7.6 percent in May.

The Federal Reserve also struck notes of greater optimism about the economic recovery, saying in a statement released after a two-day meeting of its policy-making committee that the economy was expanding “at a moderate pace,” the job market was improving and risks to the recovery had “diminished since last fall.”

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Google is to spend $5m (£3.1m) fighting child pornography and abuse, the company will announce today, after criticism that it is not doing enough to prevent the spread of harmful online imagery.

With a Whitehall summit on online protection set for…. [today], chaired by the Culture Secretary, Maria Miller, the internet giant has pledged to tackle child sex abuse images through “hashing” technology that gives each picture a web “fingerprint” that can be identified and removed.

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Watch our conversation with Michael Kessler of Georgetown University’s Berkley Center for Religion, Peace, and World Affairs about perspectives of religious and ethical traditions on the government’s massive collection of electronic data and its vast surveillance effort.

You may find the link here for the video.

We wanted to know the costs of all this buying and lusting for more, so we flew to Boston to talk with Harvard professor Michael Sandel. He wrote “What Money Can’t Buy, The Moral Limits of Markets.” It tells the story of how we’ve gone from having a market economy, to being a market society where everything is for sale.

Sandel points out all sorts of ways money has changed the game [of baseball]. One of them, the way corporate sponsorship has worked its way into the very language of the game.

“The insurance company New York Life,” he says, “has a deal with several teams that requires announcers to say the following line whenever there’s a close call at the plate: ‘Safe at home. Safe and secure, New York Life.’”

Read or listen to it all.

Amid speculation that the Federal Reserve soon might start scaling back its stimulus efforts, the International Monetary Fund cautioned that a pullback before next year could hurt economies worldwide.

Highlighting its concern Friday, the IMF lowered its forecast for U.S. economic growth next year to 2.7% from an earlier projection of 3%.

The IMF also criticized U.S. fiscal policy, calling for the repeal of the automatic federal spending cuts, known as the sequester, and urging lawmakers to act promptly to raise the nation’s debt limit.

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About a century ago…the moral status system was likely to be the inverse of the worldly status system. The working classes were self-controlled, while the rich and the professionals could get away with things.

These mores, among other things, had biblical roots. In the Torah, God didn’t pick out the most powerful or notable or populous nation to be his chosen people. He chose a small, lowly band. The Torah is filled with characters who are exiles or from the lower reaches of society who are, nonetheless, chosen for pivotal moments: Moses, Joseph, Saul, David and Esther….

Over the years, religion has played a less dominant role in public culture. Meanwhile, the rival status hierarchies have fallen away. The meritocratic hierarchy of professional success is pretty much the only one left standing.

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