The FBI said on Wednesday that it had disrupted a Chinese hacking group nicknamed “Flax Typhoon”  that targeted critical infrastructure in the United States.

The Flax Typhoon hackers installed malicious software on thousands of computers and other internet-connected devices including cameras, video recorders and routers.

This created a botnet — a massive network of infected computers.

Universities, government agencies, telecommunications providers, media organizations and NGOs were among the targets, the FBI said.

“Flax Typhoon’s actions caused real harm to its victims, who had to devote precious time to clean up the mess when they discovered the malware,” said FBI director Chris Wray.

Read it all.

A hacker group known as Flax Typhoon was able to infect hundreds of thousands of devices around the world, authorities said. China has denied any involvement in the malicious botnet.https://t.co/FoeAA9IPMg

— DW News (@dwnews) September 19, 2024

It’s 1 a.m. and Thomas Wu is riding his bike on the empty streets of Shanghai. The 43-year-old insurance executive has had another meltdown.

Wu’s pay has been slashed by 20% in a nationwide push to lower salaries at state-owned finance companies. He frets about layoffs and wonders how he’ll find 600,000 yuan ($84,500) to keep his two children in international school — a hallmark of upper-middle-class life in China. His six-year-old is behind in math.

“What’s the point of driving our kids nuts studying so hard?” Wu said. “The top-tier graduates can’t find a job, those who come back from overseas can’t find a job.” Pay increases, he says, are no longer tied to effort. “My work is meaningless.”

Read it all.

China created a new class of highly paid white-collar worker. Now their dreams are being crushed. https://t.co/FtWSrjgm8J #TheBigTake

— Kristine Servando (@tinssoldier) September 19, 2024

The economic, social, and public benefits provided by universities are “threatened by the financial crisis” in higher education, the Bishop of Sheffield, Dr Pete Wilcox, has warned.

Contributing to a two-hour debate on the subject in the House of Lords last week, Dr Wilcox said that, in his diocese, the University of Sheffield and Sheffield Hallam University “support more than 19,500 jobs and generate more than £1 billion annually for the local economy. What is true in Sheffield is true across the country: universities are generally hugely beneficial to the communities within which they are situated.”

The Church of England believed that higher education should serve the common good, he said. The universities mentioned did this in a variety of ways, including private investment, and volunteer and work placements across health, social care, the law, and other areas.

Read it all (registration or subscription).

The economic, social, and public benefits provided by universities are “threatened by the financial crisis” in higher education, the Bishop of Sheffield @PeteWilcox1564 has warned https://t.co/Jx29BNFPf0

— Church Times (@ChurchTimes) September 17, 2024

Every weekday in New York City, close to one million bus riders — roughly one out of every two passengers — board without paying. The skipped fares are a crucial and growing loss of revenue for the Metropolitan Transportation Authority, which is under severe financial pressure.

New York’s long-running fare evasion problem, among the worst of any major city in the world, has intensified recently; before the pandemic, only about one in five bus riders skipped the fare.

Yet public officials have done relatively little to collect the lost revenue from bus riders. Instead, they have focused almost exclusively on the subway system, where waves of police officers and private security guards have been deployed to enforce payment, even as fare evasion rates on trains are dwarfed by those on buses.

During the first three months of this year, 48 percent of bus riders did not pay, according to the latest available statistics from the transit authority, while 14 percent of subway riders evaded fares. Roughly twice the number of people ride the city’s subways as ride its buses.

Read it all.

Fare Evasion Surges on N.Y.C. Buses, Where 48% of Riders Fail to Pay – The New York Times https://t.co/VLrgiS8i7o

— Bernadette Hogan (@bern_hogan) August 27, 2024

Cyber attacks pose a risk as big as terrorism and flooding, according to two of the world’s biggest insurance groups that are calling for state support to help the industry to absorb losses. 

Insurer Zurich and Marsh McLennan, the world’s biggest insurance broker, say in a new report that cyber threats are “outpacing the ability of traditional insurance and risk management approaches to fully mitigate them”.  There are “limits to the amount of financial loss” the private sector can absorb, the report says, given the potentially huge losses that could be caused by a cyber attack on critical infrastructure.

It proposes a number of steps to address this, including creating public-private partnerships to share losses from currently “uninsurable” events, such as a cyber attack that causes a widespread failure of key infrastructure.

Read it all (subscription).

Insurance groups urge state support for ‘uninsurable’ cyber risks https://t.co/H2zrEsMrLY

— Finance News (@ftfinancenews) September 4, 2024

On this three day weekend, when we rest from our usual labors, loving Father, we pray for all who shoulder the tasks of human laboring the marketplace, in factories and offices, in the professions, and in family living.

We thank you, Lord, for the gift and opportunity of work; may our efforts always be pure of heart, for the good of others and the glory of your name.

We lift up to you all who long for just employment and those who work to defend the rights and needs of workers everywhere.

May those of us who are now retired always remember that we still make a valuable contribution to our Church and our world by our prayers and deeds of charity.

May our working and our resting all give praise to you until the day we share together in eternal rest with all our departed in your Kingdom as you live and reign Father, Son, and Holy Spirit, one God, forever and ever. Amen.

–-The Archdiocese of Detroit

In 1894, President Cleveland signed a bill that declared #LaborDay a national holiday.https://t.co/jdF8qHxTJz pic.twitter.com/GcCrF2SJkq

— Presidential Trivia (@triviapotus) September 2, 2024

Firms that manage drug benefits, which promise to keep a lid on high drug costs, instead steer patients away from less expensive medicines and overcharge for cancer therapies, Federal Trade Commission investigators found.

The FTC, in a report released Tuesday, detailed a number of actions that it said large pharmacy-benefit managers use to boost their profits and increase the spending of the health plans and employers that hired them to control costs. The actions can also lead to higher outlays for patients at the pharmacy counter, the agency said.

The findings follow a two-year investigation into the firms, known as PBMs, and calls from some lawmakers to rein in the firms’ business practices.

FTC Chair Lina Khan said the agency planned further scrutiny of big PBMs with the goal of making healthcare affordable. “Dominant pharmacy-benefit managers can hike the cost of drugs—including overcharging patients for cancer drugs,” she said. 

Read it all.

PBMs are a paradigmatic example of how a middleman meant to reduce costs and enhance efficiency becomes so bloated and powerful that it adds to costs and reduces efficiency. Great to see FTC addressing this issue!https://t.co/q0s3VC638W

— Kate Judge (@ProfKateJudge) July 9, 2024

US consumer confidence eased this month on a more muted outlook for business conditions, the job market and incomes.

The Conference Board’s gauge of sentiment decreased to 100.4 from a downwardly revised 101.3 reading in May, data out Tuesday showed. June’s measure of expectations for the next six months fell nearly 2 points to 73, while present conditions increased from a downwardly revised May reading.

Confidence has been subdued over the past few years as consumers contend with a higher cost of living, elevated borrowing costs and, more recently, a softening in the labor market. Only 12.5% of consumers expect business conditions to improve in the next six months, the smallest share since 2011.

Read it all.

US consumer confidence eased this month as Americans’ outlook for the economy deteriorated. https://t.co/Ma7ORsFUwm

— Bloomberg (@business) June 25, 2024

The breathtaking events unfolding in France expose all the old deformities of the half-finished euro project. They revive the poisonous internal politics that have long bedeviled monetary union, pitting Teutonic creditors against Latin debtors with conflicting morality tales.

The ECB’s untested Transmission Protection Instrument (TPI) allows the governing council to buy distressed bonds on its own authority, but only for countries that pursue (a) “sound fiscal and macroeconomic policies”; (b) are not “subject to an excessive deficit procedure”; (c) do not have “severe macroeconomic imbalances”; (d) where the “trajectory of public debt is sustainable”; and (e) where stress is “not warranted by country-specific fundamentals”.

France fails on most counts, and is on course to fail on every single one under any of the scenarios likely to emerge on July 7, including the pre-insurrectional chaos of a state with no functioning government at all.

Read it all.

Macron has killed fiscal union stone dead, and without fiscal union the euro cannot work over the long run. It will lurch from crisis to crisis until Germany finally loses patiencehttps://t.co/PgRl8XRzb0

— Ambrose Evans-Pritchard (@EvansAmbro84839) June 25, 2024

Americans are getting older. By 2032, about a quarter of the US population will be over 65, up from 10% in 1970. And while it’s true that people are both living and staying healthier for longer, many will eventually need someone to care for them. A report by Wells Fargo in March estimated that an additional 1.7 million people will need some form of elder care in a decade.

This is hard on families for so many reasons — emotional, logistical — but today I’ll focus on the economic ones. First, the good news: The rise in the need for elder care means there will also be an increase in the number of elder care jobs available. The Department of Labor projects that the elder care industry will add 22% more jobs by 2032, and the majority of them will probably go to women. (Currently 82% of home health and personal care aides are women.)

Now the bad news: the pay for elder care is notoriously low, with a median salary of just $33,530 per year. That’s less than what preschool teachers ($37,130) and secretaries make ($46,010), and roughly on par with that of a childcare worker. The rise in demand has led to an increase in wages, but the pay is still pretty bad. That’s why, much like child care, the elder care industry is beset by staffing shortages and a high turnover rate.

Also like child care, elder care is incredibly expensive.

Read it all.

America’s ‘Silver Tsunami’ Crisis Is Only Just Beginning ⁦@markets⁩ https://t.co/Hnn7PVN9Kl

— Amb Antonio Garza (@aogarza) June 21, 2024

The Congressional Budget Office (CBO)…[recently] released new ten-year budget and economic projections – an update from its February baseline – again confirming that the national debt is on an unsustainable path. According to CBO’s new projections:

Debt held by the public will reach a new record by the end of Fiscal Year (FY) 2027 – 106.2 percent of GDP – and rise to 122.4 percent of GDP by the end of 2034.

The budget deficit will rise to $1.9 trillion (6.7 percent of GDP) in FY 2024 and $2.9 trillion (6.9 percent of GDP) by 2034, totaling $22.1 trillion over the 2025-2034 budget window.

Interest costs will reach a near-record 3.1 percent of GDP this year – exceeding defense and Medicare spending – set a new record next year and grow to 4.1 percent of GDP by FY 2034.

Under CBO’s latest baseline, federal debt held by the public will grow by $23 trillion through FY 2034, from over $27 trillion today to nearly $51 trillion by the end of 2034. As a share of the economy, debt will rise from 97.3 percent of Gross Domestic Product (GDP) at the end of 2023 to 106.2 percent by 2027 – surpassing the prior record set just after World War II – and 122.4 percent of GDP by 2034. Debt in 2034 will be $2.4 trillion and 6.4 percent of GDP higher than projected in February.

Read it all.

📈 In its latest budget and economic projections released today, @USCBO again confirmed that the national debt is on an unsustainable path:

➤ Debt held by the public will reach a new record by the end of FY 2027, rising to 122.4% of GDP by the end of 2034.

➤ The budget… pic.twitter.com/22RnFOTbDh

— CRFB.org (@BudgetHawks) June 18, 2024

Amber and Devin Weise lived in distant states when they met in an online social media group for Christian singles. They quickly became a couple, spending hours texting or talking on video chat. After several months of long-distance dating Devin wanted to propose, but thought it was proper and more romantic to do it in person.

Amber hinted she’d be OK with a proposal on a video call. Devin proposed and sent the ring in the mail.

It wasn’t until after they married that they learned the federal disability benefits program Amber relied upon penalizes couples who marry. Amber lost her monthly income check and the health care that came with it.

Amber is one of 7.4 million people who rely upon Supplemental Security Income, or SSI, a federal program that provides monthly cash assistance to disabled and older people with little income and resources. And for Amber and others, being on SSI is also the way they get health insurance.

Read it all.

Couples say they can't get married because of this government program's outdated rules. – Social Security's SSI program for people with disabilities requires couples to have no more than $3,000 in assets via NPR https://t.co/WZnjFejpUz

— Olav Mitchell Underdal (@omunderdal) June 20, 2024

Even more striking to me are the political, social, and cultural resemblances I detect between the U.S. and the USSR. Gerontocratic leadership was one of the hallmarks of late Soviet leadership, personified by the senility of Leonid Brezhnev, Yuri Andropov, and Konstantin Chernenko. 

But by current American standards, the later Soviet leaders were not old men. Brezhnev was 75 when he died in 1982, but he had suffered his first major stroke seven years before. Andropov was only 68 when he succeeded Brezhnev, but he suffered total kidney failure just a few months after taking over. Chernenko was 72 when he came to power. He was already a hopeless invalid, suffering from emphysema, heart failure, bronchitis, pleurisy, and pneumonia.

It is a reflection of the quality of healthcare enjoyed by their American counterparts today that they are both older and healthier. Nevertheless, Joe Biden (81) and Donald Trump (78) are hardly men in the first flush of youth and vitality, as The Wall Street Journal recently made cringe-inducingly clear. The former cannot distinguish between his two Hispanic cabinet secretaries, Alejandro Mayorkas and Xavier Becerra. The latter muddles up Nikki Haley and Nancy Pelosi. If Kamala Harris has never watched The Death of Stalin, it’s not too late.

Another notable feature of late Soviet life was total public cynicism about nearly all institutions. Leon Aron’s brilliant book Roads to the Temple shows just how wretched life in the 1980s had become.

Read it all.

"Are We the Soviets?" After four happy years at @opinion, it was time for a change. So here's my first column for @TheFP, with thanks to @bariweiss for recruiting me to her happy band. https://t.co/Zwxj3ChLLb pic.twitter.com/cyK0xHX7tQ

— Niall Ferguson (@nfergus) June 18, 2024

The Group of 7 countries might have set a record when they met in Italy last week. Has there ever been a less popular assemblage of leaders of the free world? Approval ratings ranged from Giorgia Meloni of Italy’s about 40 percent to Emmanuel Macron of France’s 21 percent to Fumio Kishida of Japan’s 13 percent. Last year the Edelman Trust Barometer found that only 20 percent of people in the G7 countries thought that they and their families would be better off in five years. Another Edelman survey, from 2020, uncovered a broad distrust of capitalism in countries across the world, “driven by a growing sense of inequity and unfairness in the system.”

Why the broad dissatisfaction with an economic system that is supposed to offer unsurpassed prosperity? Ruchir Sharma, the chairman of Rockefeller International and a Financial Times columnist, has an answer that boils down to two words: easy money. In an eye-opening new book, “What Went Wrong With Capitalism,” he makes a convincing case.

“When the price of borrowing money is zero,” Sharma told me this week, “the price of everything else goes bonkers.” To take just one example: In 2010, as the era of ultralow and even negative interest rates was getting started, the median sale price for a house in the United States hovered around $220,000. By the start of this year, it was more than $420,000.

Nowhere has inflation (in the broad sense of the term) been more evident than in global financial markets. In 1980 they were worth a total of $12 trillion — equal to the size of the global economy at the time. After the pandemic, Sharma noted, those markets were worth $390 trillion, or around four times the world’s total gross domestic product.

Read it all.

How Capitalism Went Off the Rails

By Bret Stephens, Opinion Columnist @nytimes

"The social consequence of this is rage; the political consequence is populism."
https://t.co/yD7bmUnqDw

— Stefan Michaelsen (@stefanmichaelse) June 19, 2024

Global defence companies are recruiting workers at the fastest rate since the end of the cold war as the industry seeks to deliver on order books that are near record highs.

A Financial Times survey of the hiring plans of 20 large and medium-sized US and European defence and aerospace companies found they are looking to recruit tens of thousands of people this year. Three of the largest US contractors — Lockheed Martin, Northrop Grumman and General Dynamics — have close to 6,000 job openings they need to fill, while 10 companies surveyed are seeking to increase positions by almost 37,000 in total, or almost 10 per cent of their aggregate workforce.

“Since the end of the cold war, this is the most intense period for the defence sector with the highest increase in order volume in a rather short period of time,” said Jan Pie, secretary-general of ASD, the European aerospace and defence trade association. 

Read it all (registration or subscription).

An FT survey of 20 industry groups has found that they are looking to recruit tens of thousands of people this year, as order books near record highs. https://t.co/ZCOnyOaJCK pic.twitter.com/in7XIqZByA

— Financial Times (@FT) June 17, 2024

US consumer sentiment unexpectedly fell to a seven-month low in early June as high prices continued to take a toll on views of personal finances.

The sentiment index dropped to 65.6 in June from 69.1, according to the preliminary reading from the University of Michigan. The median estimate in a Bloomberg survey of economists called for the measure to rise to 72.

Consumers expect prices will climb at an annual rate of 3.1% over the next five to 10 years, up slightly from the 3% expected in May, the data out Friday showed. They see costs rising 3.3% over the next year, the same as in the previous month.

Read it all (registration or subscription).

Pretty rotten UoM Consumer Sentiment reading. Expectation was for 72.1, and we got 65.6 instead:

"Assessments of personal finances dipped, due to modestly rising concerns over high prices as well as weakening incomes." pic.twitter.com/Lpl8CXbJqQ

— Markets & Mayhem (@Mayhem4Markets) June 14, 2024

Nigeria is facing its worst economic crisis in decades, with skyrocketing inflation, a national currency in free-fall and millions of people struggling to buy food. Only two years ago Africa’s biggest economy, Nigeria is projected to drop to fourth place this year.

The pain is widespread. Unions strike to protest salaries of around $20 a month. People die in stampedes, desperate for free sacks of rice. Hospitals are overrun with women wracked by spasms from calcium deficiencies.

The crisis is largely believed to be rooted in two major changes implemented by a president elected 15 months ago: the partial removal of fuel subsidies and the floating of the currency, which together have caused major price rises.

A nation of entrepreneurs, Nigeria’s more than 200 million citizens are skilled at managing in tough circumstances, without the services states usually provide. They generate their own electricity and source their own water. They take up arms and defend their communities when the armed forces cannot. They negotiate with kidnappers when family members are abducted.

Nigeria Confronts Its Worst Economic Crisis in a Generation , with skyrocketing inflation, a national currency in free-fall and millions of people struggling to buy food https://t.co/umLRRrmPTv

— Xavier Delcourt (@x_delcourt) June 12, 2024

Almost two-thirds of Americans considered middle class said they are facing economic hardship and don’t anticipate a change for the rest of their lives, according to a poll commissioned by the National True Cost of Living Coalition.

By many traditional measures, the US economy is strong, with robust labor, housing and stock markets, as well as solid gross domestic product growth. But the data don’t capture the financial insecurity of millions of households who worry about their future and are unable to save, according to the group, created this year to come up with cost-of-living tools that help gauge economic well-being.

In the large poll of 2,500 adults, 65% of people who earn more than 200% of the federal poverty level — that’s at least $60,000 for a family of four, often considered middle class — said they are struggling financially.

Almost two-thirds of Americans considered middle class said they are facing economic hardship, according to a poll. In the survey, 65% of people who earn at least $60,000 for a family of four said they are struggling financially https://t.co/hwHmjJCI6y

— Lisa Abramowicz (@lisaabramowicz1) June 4, 2024

The American worker is making peace with a longer ride.

Big shifts in the way people live and work are making commutes of over an hour into the office more common—and even more palatable. Rising housing costs have prompted many to move farther away from city centers, while the staying power of hybrid work means they don’t have to drive into work every day. 

The share of super commutes—those 75 miles or longer—have grown the most and are up by nearly a third since 2020, according to new research from Stanford University. 

Craig Allender’s family of four felt they had outgrown their three-bedroom home in Novato, Calif., and wanted to upgrade. They found a five-bedroom one 30 miles north in Sonoma County where lower housing costs put a 3,000-square-foot house in reach. 

America’s Commute to Work Is Getting Longer & Longer: "The share of super commutes—those 75 miles or longer—have grown the most & are up by nearly a third since 2020, according to new research from Stanford University" https://t.co/dfQsXWei1x

— Jim Russell (@ProducerCities) June 4, 2024

Never has it been so cheap to inflict a world of economic pain.

That stark point was underscored last week by Maximilian Hess, a principal at London-based Enmetena Advisory, a political risk consultancy. Speaking to a webinar of supply-chain managers, he showed a slide of a canoe-size naval drone and said such jury-rigged weapons have the ability to redirect world trade.

“Nowhere is this more clear than in the conflict in the Red Sea,” Hess said, referring to attacks launched from Yemen toward commercial ships trying to use the Suez Canal.

Nearly six months into the Houthis’ relentless campaign to protest Israel’s war in Gaza, the economic fallout is widening. As ships sail around Africa’s Cape of Good Hope, their unpredictable schedules are clogging major Asian ports, creating shortages of empty containers in some places and pileups in others. Delivery times to the US and Europe are getting longer, and freight rates are surging.

🌎 Ships Diverted From Red Sea Send Ripple Effects Across the Globe – Bloomberghttps://t.co/1A8HVOJVKX pic.twitter.com/6fFCf9asLJ

— Christophe Barraud🛢🐳 (@C_Barraud) June 3, 2024

For more than a year, FBI Director Christopher A. Wray has warned about a wave of election interference that could make 2016 look cute. No respectable foreign adversary needs an army of human trolls in 2024. AI can belch out literally billions of pieces of realistic-looking and sounding misinformation about when, where and how to vote. It can just as easily customize political propaganda for any individual target. In 2016, Brad Parscale, Donald Trump’s digital campaign director, spent endless hours customizing tiny thumbnail campaign ads for groups of 20 to 50 people on Facebook. It was miserable work but an incredibly effective way to make people feel seen by a campaign. In 2024, Brad Parscale is software, available to any chaos agent for pennies. There are more legal restrictions on ads, but AI can create fake social profiles and aim squarely for your individual feed. Deepfakes of candidates have been here for months, and the AI companies keep releasing tools that make all of this material faster and more convincing.

Almost 80 percent of Americans think some form of AI abuse is likely to affect the outcome of November’s presidential election. Wray has staffed each of the FBI’s 56 field offices with at least two election-crime coordinators. He has urged people to be more discerning with their media sources. In public, he’s the face of chill. “Americans can and should have confidence in our election system,” he said at the International Conference on Cyber Security in January. Privately, an elected official familiar with Wray’s thinking told me the director is in a middle manager’s paradox: loads of responsibility, limited authority. “[Wray] keeps highlighting the issue, but he won’t play politics, and he doesn’t make policy,” that official said. “The FBI enforces laws. The director is like, ‘Please ask Congress where the laws are.’”

Gift Article
Why this year’s election interference could make 2016 look cute
The first big AI crisis isn’t some hypothetical far off in the future. It’s coming on Election Day.
Opinion By Josh @Tyrangiel
May 30, 2024 at 7:30 a.m. EDT https://t.co/tVtkR6qJMe

— K_Conner (@kvconner) May 30, 2024

Prior to joining T. Rowe Price, Poppy Allonby spent more than twenty years at Blackrock, predominately in equity investment roles and latterly as Managing Director, Head of Global Product Group, EMEA & APAC. Between 2014 and 2022, she was on the Church Commissioners’ Board of Trustees and a member of its Assets Committee.

“I am delighted and honoured to join the Church Commissioners as its CIO, an organisation globally recognised as a leader in sustainable investment,” said Poppy Allonby. “My focus will be on delivering strong, consistent returns to meet the Commissioners’ core purpose, which is to support the mission and ministry of the Church of England – and to do so in an ethical, sustainable way.”

The Church Commissioners has provided the Church with over £3.5bn in funding since 2009, with £1.2bn to be distributed during the current 2023-2025 triennium – a 30% increase on the previous triennium, thanks in large part to the excellent investment returns generated by the Commissioners’ Investment team. The fund has delivered 14 years of positive returns, while building a reputation as a global leader in responsible investment.

Exciting news @ccsforengland! Poppy Allonby is their new #endowment CIO. Poppy brings +21 years of expertise to the #CIO role. @Matttoledo1 @ChiefInvOfficerhttps://t.co/XCcQDVITtG#alts #privatemarkets #energytransition #duediligence #compliance #ESG #Vidriofinancial

— Vidrio Financial (@VidrioFinancial) May 31, 2024

Twenty-two percent of Americans describe current U.S. economic conditions as “excellent” or “good,” down slightly from the prior month, marking the lowest figure recorded since December’s 22%.

Since early 2022, Americans have consistently been most likely to describe the economy’s current conditions as “poor.” The latest measure finds 46% of Americans viewing the economy this way, only slightly higher than the April reading but the highest since November.

The net effect of these changes is that the index’s current conditions component dipped to -24 from -20 in April and is the lowest score for this component since November (-31).

GALLUP POLL: Right now, do you think that economic conditions in the country are getting better or getting worse?

May 2024
Getting better: 26% [-7]
Getting worse: 70% [+7]

October 2020
Getting better: 42%
Getting worse: 53%

[+/- change vs March]
—
% who described the… pic.twitter.com/q8YoBY1L9C

— InteractivePolls (@IAPolls2022) May 31, 2024

To keep Ukraine’s artillery crews supplied, the Pentagon set a production target last year of 100,000 shells per month by the end of 2025. Factories in Scranton and Wilkes-Barre, Pa., together make about 36,000 shells per month. The new General Dynamics facility in Mesquite, Texas, will make 30,000 each month once it reaches its full capacity.

The 100,000-per-month goal represents a nearly tenfold increase in production from a few years ago.

An Ohio-based defense firm called IMT is expected to make up the difference.

Less than a year ago, the surrounding area here in North Texas was just a dirt field. But with millions of dollars from Congress and help from Repkon, the American defense firm General Dynamics was able to open the factory about 10 months after breaking ground.

Read it all.

U.S. to build plant in Texas to produce 155mm shells for Ukraine – NYT

This will be the first plant the Pentagon has built from scratch since the war in Ukraine began. The plant will produce 30,000 artillery shells per month, about twice the current US production capacity.… pic.twitter.com/HLb19xfKS1

— Jürgen Nauditt 🇩🇪🇺🇦 (@jurgen_nauditt) May 30, 2024

As birth rates plunge, many politicians want to pour money into policies that might lead women to have more babies. Donald Trump has vowed to dish out bonuses if he returns to the White House. In France, where the state already spends 3.5-4% of gdp on family policies each year, Emmanuel Macron wants to “demographically rearm” his country. South Korea is contemplating handouts worth a staggering $70,000 for each baby. Yet all these attempts are likely to fail, because they are built on a misapprehension.

Governments’ concern is understandable. Fertility rates are falling nearly everywhere and the rich world faces a severe shortage of babies. At prevailing birth rates, the average woman in a high-income country today will have just 1.6 children over her lifetime. Every rich country except Israel has a fertility rate beneath the replacement level of 2.1, at which a population is stable without immigration. The decline over the past decade has been faster than demographers expected.

Doomsayers such as Elon Musk warn that these shifts threaten civilisation itself. That is ridiculous, but they will bring profound social and economic changes. A fertility rate of 1.6 means that, without immigration, each generation will be a quarter smaller than the one before it. In 2000 rich countries had 26 over-65-year-olds for every 100 people aged 25-64. By 2050 that is likely to have doubled. The worst-affected places will see even more dramatic change. In South Korea, where the fertility rate is 0.7, the population is projected to fall by 60% by the end of the century.

Paying women to have more babies is a costly and socially retrograde mistake. Governments should focus on adapting economies to baby busts instead https://t.co/KFHKaaY3oz pic.twitter.com/m6x2QApSdg

— The Economist (@TheEconomist) May 23, 2024

OpenAI said on Tuesday that it had begun training a new flagship artificial intelligence model that would succeed the GPT-4 technology that drives its popular online chatbot, ChatGPT.

The San Francisco start-up, which is one of the world’s leading A.I. companies, said in a blog post that it expected the new model to bring “the next level of capabilities” as it strove to build “artificial general intelligence,” or A.G.I., a machine that can do anything the human brain can do. The new model would be an engine for A.I. products including chatbots, digital assistants akin to Apple’s Siri, search engines and image generators.

OpenAI also said it was creating a new Safety and Security Committee to explore how it should handle the risks posed by the new model and future technologies.

“While we are proud to build and release models that are industry-leading on both capabilities and safety, we welcome a robust debate at this important moment,” the company said.

OpenAI Says It Has Begun Training a New Flagship A.I. Model#LLM
via @NYTimes https://t.co/bWJHhNNbB5

— ronfriedmann (@ronfriedmann) May 28, 2024

China’s economic miracle is ending, leaving President Xi Jinping with a challenge none of his predecessors faced: how to govern after the boom.

For four decades, China’s 1.4 billion population experienced unparalleled gains in income and wealth. But recently the blows have just kept coming. Real estate collapse, trade war with the US, a crackdown on entrepreneurs, and extended Covid lockdowns have stalled the prosperity engine.

Chinese incomes are still rising, but under Xi gains have been the slowest since the late 1980s. The property crisis is hammering household wealth. And the cautious opening-up of China’s society has gone into reverse too. For many people across the country, it feels like a different world.

Take for example Mr. Hu, a factory worker in Shanghai. For almost a decade after moving from his hometown, Hu was upwardly mobile. He earned enough to buy a car, drove passengers at the weekend to top up the family income, and in 2020 bought a big-city apartment. Hu felt good about the future. Now he feels “desperate.”

Unlike his reform-era predecessors, Xi Jinping can’t count on rapid gains in prosperity to underpin support for Communist Party rule in China https://t.co/xAj5ruyMbw

— Bloomberg Economics (@economics) May 22, 2024

The new tariffs President Biden announced last week aren’t economically significant. Symbolically, they are huge.

The U.S. buys almost no electric vehicles, steel or semiconductors—all targets of the tariffs—from China. But, by adding to, rather than rescinding, tariffs imposed in 2018 by former President Donald Trump, it signals that the decoupling of the Chinese and U.S. economies is becoming irreversible.

More important, the tariffs are the final piece of an economic strategy for competing with China.

This strategy is a three-legged stool. The first consists of subsidies to build a viable technology manufacturing sector, from clean energy to semiconductors. The second is tariffs on Chinese imports that threaten those efforts. The third is restrictions on access to money, technology and know-how that could help China compete. A fourth leg, a unified economic front with allies, remains unrealized.

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Biden's new tariffs round out a three-legged strategy for competing with China. Leg 1: subsidies to build a viable technology manufacturing sector, from clean energy to semiconductors. 2: tariffs on Chinese imports that threaten those efforts. 3: restrictions on access to money,…

— Greg Ip (@greg_ip) May 20, 2024

One reason U.S. inflation is still high: Increases in prices for procedures to prop open clogged arteries, provide intensive care for newborns and biopsy breasts.

Hospitals didn’t raise prices as early in the pandemic as supermarkets, retailers and restaurants. But they have been making up ground since then. Their increases have contributed to stubbornly high inflation readings from the consumer-price index, which in April increased 3.4% from a year ago.

Hospital prices specifically jumped 7.7% last month from a year ago, the highest increase in any month since October 2010, the Labor Department said Wednesday.

Among the procedures with hefty recent price increases are angioplasties placing stents in arteries to improve blood flow, which grew $670, or 4.5%, to $15,640 in the first three months of the year from the same period a year ago, according to Turquoise Health.

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Surging Hospital Prices Are Helping Keep Inflation High https://t.co/en50uqXMV4

— Edward Marx (@marxtango) May 17, 2024

Last May, Sundar Pichai, Google’s chief executive, said the company would use artificial intelligence to reimagine all of its products.

But because new generative A.I. technology presented risks, like spreading false information, Google was cautious about applying the technology to its search engine, which is used by more than two billion people and was responsible for $175 billion in revenue last year.

On Tuesday, at Google’s annual conference in Mountain View, Calif., Mr. Pichai showed how the company’s aggressive work on A.I. had finally trickled into the search engine. Starting this week, he said, U.S. users will see a feature, A.I. Overviews, that generates information summaries above traditional search results. By the end of the year, more than a billion people will have access to the technology.

A.I. Overviews is likely to heighten concerns that web publishers will see less traffic from Google Search, putting more pressure on an industry that has reeled from rifts with other tech platforms. On Google, users will see longer summaries about a topic, which could reduce the need to go to another website — though Google downplayed those concerns.

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Google Takes the Next Step in Its A.I. Evolution https://t.co/dz8E5zBfI8

— postiglione@ucc.edu (@Postiglione5888) May 14, 2024