Yesterday afternoon, Donald Trump celebrated America’s so-called Liberation Day by announcing a slew of tariffs on dozens of countries. His plan, if fully implemented, will return the United States to the highest tariff duty as a share of the economy since the late 1800s, before the invention of the automobile, aspirin, and the incandescent light bulb.
In 2022, pollsters and political analysts predicted a red wave in the midterms that didn’t materialize. Last night, polls anticipated a whisker-thin election, and instead we got a red wave that carried Donald Trump to victory.
The breadth of Trump’s improvement over 2020 is astonishing. In the previous two elections, we saw narrow demographic shifts—for example, non-college-educated white people moved toward Trump in 2016, and high-income suburban voters raced toward Biden in 2020.
Election Night is upon us, with all of its nail-biting anxiety, its cortisol-driven fear, and, for roughly half the country, the possibility of ecstatic relief after another surreal presidential campaign.
Results could take days, even weeks, to shake out. But the state of the race could also reveal itself surprisingly quickly. At 7 p.m. eastern time tonight, polls will close in the battleground state of Georgia. At 7:30 p.m., polls will close in North Carolina, another crucial toss-up.
In the past 24 hours, Japanese stocks suffered their worst collapse since the 1987 crash, other Asian markets cratered, tech stocks plummeted, the Dow plunged, and several additional global markets suffered from various synonyms for “fell a lot.”
What’s going on in global markets? Any attempt at an explanation has to start here: Nobody actually understands how markets work. This is not a cop-out. It’s a boring statement of fact.
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The United States is politically polarized along several lines, including race, geography, and education. Heading into a general election that will once again offer voters a choice between a Democratic woman and a Republican man, gender may seem like the clearest split of all.
This is Work in Progress, a newsletter about work, technology, and how to solve some of America’s biggest problems. Sign up here.
The United States is politically polarized along several lines, including race, geography, and education. Heading into a general election that will once again offer voters a choice between a Democratic woman and a Republican man, gender may seem like the clearest split of all.
This is Work in Progress, a newsletter by about work, technology, and how to solve some of America’s biggest problems. Sign up here.
One of the hard-and-fast laws of economics is that people in rich countries work less than their peers in poorer countries. The rule holds across nations. British and Japanese people work less on average than those in Mexico and India. It’s also true across history.
This is Work in Progress, a newsletter by Derek Thompson about work, technology, and how to solve some of America’s biggest problems. Sign up here to get it every week.Google’s parent company, Alphabet, today announced that it plans to cut 12,000 jobs, joining a tech-and-media layoff list that already includes Microsoft, Meta, Amazon, Salesforce, Snap, Twitter, and Warner Bros. Discovery.
This is Work in Progress, a newsletter by Derek Thompson about work, technology, and how to solve some of America’s biggest problems. Sign up here to get it every week.Last year, I called America a “rich death trap.” Americans are more likely to die than Europeans or other citizens of similarly rich nations at just about every given age and income level.
The U.S. economy shrank for the second consecutive quarter, guaranteeing a robust news cycle of people shouting the word recession back and forth at each other. President Joe Biden has assured the public that the U.S. economy is not actually in a recession, while conservative media will surely use today’s report to state confidently that it is.So are we in a recession, or not? That’s the wrong question to ask. But before explaining why, let me try to answer it.
Sign up for Derek’s newsletter here.“The very first symptom of the general collapse was an old one: nothing worked.” The sentiment is old—it comes from Doris Lessing’s 1969 novel, The Four-Gated City—but it’s hard to think of a better epitaph for the economic vibes of 2022. From the oil markets to the baby-formula markets to the general sense of safety and disorder, the U.S. seems to suffer from chronic Nothing Works Syndrome.
Sign up for Derek’s newsletter here.The American economy isn’t looking great right now. U.S. GDP shrank last quarter, despite a hearty showing from American consumers. Inflation is high; markets are down; both wages and personal-savings rates show some troubling statistical signals. Is the U.S. destined to have a recession in 2022? I don’t know for sure. But here are nine signs that worry me.1. Everybody’s stock portfolio is disgusting right now.
To be honest, I still can’t believe this happened. Earlier today, Twitter accepted Elon Musk’s offer of $44 billion to buy the company and take it private. In one of the largest and weirdest tech acquisitions in recent memory, Musk fought off initial opposition and a poison-pill threat to buy the social-media service.News of the deal has polarized Twitter users and employees.
Sign up for Derek’s newsletter here.In September 1992, the band Blind Melon released their self-titled debut album. The record was mostly ignored until a music video for the song “No Rain,” featuring a girl in glasses dressed as a bumblebee, went berserk on MTV. The song rocketed up the Billboard Hot 100 charts. But that was the last time the band ever struck gold. Two decades later, Rolling Stone named “No Rain” one of the biggest one-hit wonders of all time.
Vladimir Putin’s invasion of Ukraine has already led to a crisis—not only for Ukraine but also for the Kremlin. As Russian troops have advanced toward Kyiv, the European Union and the United States have responded with dramatic financial punishments that could deep-freeze the Russian economy and send inflation on an upward spiral.There are now five ways that the aggression in Ukraine can end, according to Paul Poast, a professor of foreign policy and war at the University of Chicago.
Sign up for Derek’s newsletter here.A few years ago, a young writer asked me if I had any tips for an aspiring journalist. My first instinct was to say no. My career has been full of hard work but also quirky luck, and I think everybody should distrust individuals who claim that the path to success is a highly specific set of circumstances that just happens to match, step for step, the story of their life.A rant about selection bias seemed misplaced, though.
Every weekday evening, our editors guide you through the biggest stories of the day, help you discover new ideas, and surprise you with moments of delight. Subscribe to get this delivered to your inbox.This year was … a lot. Delta, Omicron, inflation, threats to democracy. I get why most people are feeling exhausted.I still believe that better times are coming.
Sign up for Derek’s newsletter here.The flood of Omicron news can be overwhelming. The endless data, anecdotes, and studies are hard enough to synthesize. But what makes the information even harder to parse is that so much evidence (i.e., what people are seeing) is intertwined with opinion (i.e., what people are hoping and fearing).
Sign up for Derek’s newsletter here.Imagine it’s November 2020, and I offer you the following vision of Joe Biden’s first year in office:Stocks will soar. Consumer-spending growth will set land-speed records, and the president will oversee the best labor market of this young century. Coming off a flash-freeze recession, the U.S. unemployment rate will dip under 5 percent, lower than it was in every month of 2016. Blessedly, pay is rising fastest for low-wage workers.
Sign up for Derek’s newsletter here.Imagine it’s November 2020, and I offer you the following vision of Joe Biden’s first year in office:Stocks will soar. Consumer-spending growth will set land-speed records, and the president will oversee the best labor market of this young century. Coming off a flash-freeze recession, the U.S. unemployment rate will dip under 5 percent, lower than it was in every month of 2016. Blessedly, pay is rising fastest for low-wage workers.
Sign up for Derek’s newsletter here.Let’s start with a simple mystery: What happened to original blockbuster movies?Throughout the 20th century, Hollywood produced a healthy number of entirely new stories. The top movies of 1998—including Titanic, Saving Private Ryan, and There’s Something About Mary—were almost all based on original screenplays. But since then, the U.S.
To explain the Democrats’ poor performance in state and local elections Tuesday, various commentators have made very specific claims: It was mostly about critical race theory, or mostly about Terry McAuliffe’s flaws as a candidate for Virginia governor, or mostly about suburban white women voting like it’s 2012 again.But none of these explanations is fully satisfying. The turn against Democrats wasn’t limited to parents, or Virginia, or white women.
The U.S. economy right now is a little bit like Dune.Not Frank Herbert’s magisterial sci-fi epic novel, or Denis Villeneuve’s new and reportedly sumptuous film adaptation. I mean David Lynch’s infamously bewildering 1984 movie version, which is remembered mostly for being a semi-glorious mess. Like that space oddity, today’s economy is too strange to neatly categorize as “clearly great” or “obviously terrible.
Two years ago, approximately nobody on Earth had ever heard of mRNA vaccines. This was for the very good reason that no country had ever authorized one. As a scientific experiment, synthetic mRNA was more than 40 years old. As a product, it had yet to be born.Last year, mRNA technology powered the two fastest vaccine developments in history. Moderna famously prepared its COVID-vaccine recipe in about 48 hours.
In April, when I received my second Moderna shot, America was on a roll. Adjusted for population, the United States had distributed more COVID-19 vaccines per capita than any country but Israel, Chile, the United Kingdom, and a smattering of small nations and islands. With a surge of doses, we could have been No. 1 in the world.Five months later, the U.S. is no longer in the top five in national vaccine rates. We’re not in the top 10, or the top 20, or top 30.
The most urgent question in the world for the past 20 months has been: What’s the best way to stop the spread of the coronavirus? But it’s a frustrating question to answer definitively, since even the most logical solutions have been shrouded in what I’ve called the fog of pandemic.For example, covering your nose and mouth seems like a sensible way to block virus particles that come out of the mouth and go into the nose.
On June 14, 1940, the day the German army invaded and occupied Paris, a small group of scientists marched to the White House with grave news for President Franklin D. Roosevelt. U.S. military technology, they said, was utterly unprepared to take on the Axis powers. They urged the president to create a new agency—a dream team of techies and scientists—to help win the war.
Yesterday, the CDC announced that fully vaccinated Americans can stop wearing masks in most indoor and outdoor places. The new guidelines still advise the fully vaccinated to mask up when entering certain public areas, such as doctor’s offices.This is a moment to celebrate. It is not quite the pandemic’s equivalent of V-E Day; after all, thousands of people are still dying around the world each day from a virus that, far from surrendering, may be endemic.
For a few weeks this spring, the United States was a world leader in vaccines, administering shots to a larger share of its population than even the United Kingdom or Israel. But since the middle of April, our vaccine campaign has stalled. The average number of people getting a first or single dose is down almost 50 percent from its peak on April 13.
Americans are experiencing a crime wave unlike anything we’ve seen this century. After decades of decline, shootings have surged in the past few years. In 2020, gun deaths reached their highest point in U.S. history in the midst of a pandemic. In 2021, although researchers can’t yet say anything definite about overall crime, shooting incidents appear to be on the rise in many places.