05/19/2024

News

My Kingdom for a Renewable Energy Source

‘In 50 years, every street in London will be buried under 9 feet of manure.” With this 1894 prediction, the London Times warned that the era’s primary source of transportation energy—the horse—would soon create an environmental crisis.

. . . The lesson is that governments are in no position to predict technological breakthroughs, and their attempts to do so can delay innovations by entrenching inferior technologies. Diesel cars are another example. European states have been subsidizing them for decades, but diesel engines create considerably more noxious gases and particulates. Now Britain and Germany are reversing their policies and trying to phase out diesel.

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It’s the Last Stop on the Light-Rail Gravy Train

Some regions have seen catastrophic drops in ridership since 2010: 30% or more in Detroit, Sacramento and Memphis; 20% to 30% in Austin, Cleveland, Louisville, St. Louis and Virginia Beach-Norfolk ; and 15% to 20% in Atlanta, Charlotte, Los Angeles, Miami, San Antonio and Washington.

Adding rail service hasn’t helped. To pay for new light-rail lines that opened in 2012 and 2016, Los Angeles cut bus service. The city lost nearly four bus riders for every additional rail rider. Atlanta, Dallas, Sacramento and San Jose have seen similar results. The rail system in Portland, Ore., is often considered successful, but only 8% of commuters take transit of any kind to work. In 1980, before rail was constructed, buses alone were carrying 10% of commuters.

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Labor Department Taps Executives, Union Officials for Apprentice Program

Employers that use apprentices like the programs because they train future workers for specific, in-demand jobs. Apprentices earn a paycheck while they train, often eliminating the need to take on debt to fund their education. Upon completion of a training program, 90% of apprentices are offered jobs and earn a starting salary of about $60,000 a year, according to the Labor Department. Yet undergraduate students at colleges outnumber apprentices in the U.S. 26 to 1.

Apprenticeships have struggled to take hold in the U.S. in part because the education system is geared more toward college preparation, than, for example, in Germany, where teens are more frequently steered toward a vocation. And American students and families are often reluctant to pursue careers in fields such as plumbing or manufacturing, even if those jobs pay good wages.

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Record Job Openings Aren’t Enticing Workers to Quit

The rate at which workers quit their jobs—seen by many economists as a sign of confidence in the labor market—fell slightly to a seasonally adjusted 2.1% in August from 2.2% in July, according to the Labor Department’s Job Openings and Labor Turnover Survey, known as Jolts, released Wednesday.

The quits rate, or the share of employed people who voluntarily leave their jobs in a month, has held nearly steady for two years after slowly climbing after the recession ended in mid-2009. The sideways move in the quits rate comes at a time when the unemployment rate has fallen to a 16-year low and the number of available jobs has touched the highest level on records back to 2000.

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What Trump Bump? Businesses Aren’t Borrowing from Banks

Companies have grown more reluctant to borrow after an initial surge of optimism following the election, said Jeff Glenzer, vice president at the Association for Financial Professionals, a group for corporate finance and treasury professionals. “All the turmoil and the inability to move policy through Washington set in,” he said.

But analysts say the prolonged slowdown in commercial-loan growth may simply be a function of the metric returning to its normal level in recent decades. Growth in the category ran far above gross domestic product growth in the years following the financial crisis, a streak that is difficult to maintain for any prolonged period.

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America’s Retailers Have a New Target Customer: The 26-Year-Old Millennial

The biggest single age cohort today in the U.S. is 26-year-olds, who number 4.8 million, according to Torsten Slok, chief international economist for Deutsche Bank . People 25, 27 and 24 follow close behind, in that order. Many are on the verge of life-defining moments such as choosing a career, buying a house and having children.

Companies looking to grab a piece of that business, however, have run into a problem. This generation, with its over-scheduled childhoods, tech-dependent lifestyles and delayed adulthood, is radically different from previous ones. They’re so different, in fact, that companies are developing new products, overhauling marketing and launching educational programs—all with the goal of luring the archetypal 26-year-old.

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The Panama Canal’s Big Bet Is Paying Off

Ships nearly three times as large as the ones crossing before the expanded locks opened in June of 2016 are bringing tens of millions of additional dollars in tolls and a trading boom to U.S. East Coast ports, allaying some fears that investments to cater to the bigger vessels wouldn’t see enough returns.

Since the start of the year, transiting tonnage at the Panama Canal has increased by nearly 23%, canal executives say. Last week marked the 2,000th transit of a ship that wouldn’t have fit through the old locks.

. . . The widened waterway means importers as far inland as Tennessee could find it cheaper to bring in Asian goods to ports like New York, Savannah, Ga., and Charleston, S.C., rather than move them by rail and truck from West Coast ports, which handle about two-thirds of Asia-to-Americas trade.

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Oh, Scrap: China, the Biggest Buyer of America’s Trash, Wants No More

The U.S. enjoys a giant trade surplus in scrap, including household recycling, says the Institute of Scrap Recycling Industries Inc. According to the trade group’s chief economist, Joe Pickard : “We’re like the Saudi Arabia of scrap.”

Now there’s a heap of trouble confronting America’s separators of paper and plastic: The biggest buyer of the stuff doesn’t want it anymore.

. . . The U.S. is the top producer of waste, according to the World Bank, and Americans have been doing a pretty good job recycling some of that. Curbside-recycling volumes have tripled since the late 1980s, surpassing 89 million tons in 2014, according to the Environmental Protection Agency’s latest figures.

What most Americans don’t know is that after workers pick up and sort their recycling, a good deal travels halfway around the world. The U.S. exported $16.5 billion in scrap last year, the scrap institute says, more than any other country. Paper and plastic were about $3.9 billion of that.

Over two-thirds of America’s wastepaper exports and more than 40% of its discarded-plastic exports ended up in China last year, the scrap institute says. Paper and plastic scrap exports to mainland China topped $2.2 billion—that’s more than exports to China of wheat, rice, corn, meat, dairy and vegetables combined, U.S. census data show.

In July, China filed a notice with the World Trade Organization about its plans to limit the entry of “foreign waste.” Even before that, starting this spring, scrap shippers say, some Chinese customers hadn’t been able to renew their import licenses.

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Hurricane-Battered U.S. Shed 33,000 Jobs in September

The country shed 33,000 jobs in September, the first loss in seven years, the Labor Department said Friday, ending the longest stretch of job growth on record.

But that decline was skewed down by Hurricane Harvey, which hit Texas in late August, and Irma, which hit Florida in early September. The storms came just before businesses filled out monthly surveys of payrolls, which are submitted to the government and used to tabulate hiring. Many businesses reported reduced payrolls during the survey week of Sept. 12. Employment in the restaurant industry, in particular, took a big hit, falling 105,000 in September from the month before, after averaging growth of 29,000 during the prior six months.

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Opinion: The $15 Minimum Wage Crowd Tries a Bait and Switch

The dispute over methodology explains the importance of this summer’s research on Seattle’s minimum-wage experiment. The city’s wage floor, previously about $9.50 an hour, has been raised to $13 and is on its way to $15. A comprehensive study by academics at the University of Washington estimated that the higher minimum “reduced hours worked in low-wage jobs by around 9 percent.” Consequently, earnings for these employees actually dropped “by an average of $125 per month.” What’s especially inconvenient for minimum-wage proponents is that the Seattle study used a “close comparison” method similar to the one they have favored for years. The authors of the study compared workers in Seattle with those in other metropolitan areas in Washington, like Olympia, Tacoma and Spokane. To no one’s surprise, that hasn’t stopped minimum-wage supporters from attacking the Seattle research. In a June letter to city officials, Mr. Reich, the Berkeley professor, wrote that the study “draws only from areas in Washington State that do not at all resemble Seattle.” But this gives away the game: Any researchers doing this kind of study should explicitly choose control areas that show similar trends, as did the University of Washington team. More to the point, if the controls for Seattle can’t be trusted, it undermines the whole idea of “close comparison.” Criticizing the method only when it delivers evidence against minimum wages suggests the motivations here may be ideological rather than empirical.

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Supreme Court to Consider Public Worker Union Dues

The Supreme Court said Thursday it would consider whether public employees can be required to pay union dues, revisiting an issue that deadlocked the court after Justice Antonin Scalia’s death last year.

Under a 1977 Supreme Court precedent, states may authorize contracts between public agencies and their employee unions that require represented workers to pay dues, or an equivalent fee, for collective bargaining costs.

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U.S. Families’ Wealth, Incomes Rose, Fed Survey Says

U.S. families’ wealth and incomes rose across the board as the economic recovery continued in recent years, a shift after they stagnated for all but the most well-off in the aftermath of the recession, the Federal Reserve reported Wednesday.

Minority households and families with less education had larger proportional gains in income than others between 2013 and 2016, suggesting the fruits of the recovery spread to a wider swath of society, the Fed said.

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Declining Male Workforce Participation Reflects Supply, Not Demand, Says New Paper

Weakness in the labor market doesn’t adequately explain why fewer men are working or seeking jobs, according to a new paper published by economist Scott Winship and the Mercatus Center at George Mason University. One big contributor is the rising number of men in their prime working years–aged 25 to 54–who are getting federal disability benefits, or report being disabled, and who are not actively searching for jobs, Mr. Winship concludes. This suggests there is less slack in the labor market—such as people who could be drawn in off the sidelines—than many policy makers believe.

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The Benefits of Early Childhood Education and Health Programs May Last Longer Than a Lifetime

New research suggests programs aimed at helping low-income U.S. children, such as Head Start early childhood education and Medicaid health coverage, may have benefits not only for participating children but for their children as well. A recent working paper found the 1980s expansion of Medicaid programs to cover more low-income pregnant women led, years later, to their children giving birth to healthier babies. Another working paper found childhood access to Head Start led to better long-term outcomes in the next generation, including higher high-school graduation rates and reduced criminal behavior.

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Opinion: California Democrats Target Tesla

California Democrats have finally found a cause that’s worth suspending their environmental passions. The United Automobile Workers are struggling for a presence in Tesla’s Fremont plant, and organized labor has called in a political favor.

Since 2010 California has offered a $2,500 rebate to encourage consumers to buy electric vehicles. But last week, at unions’ behest, Democrats introduced an amendment to cap-and-trade spending legislation that would require participating manufacturers to get a sign-off from the state labor secretary verifying that they are “fair and responsible in their treatment of workers.”

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