A new law that comes into effect in Poland this week will scrap income tax for roughly 2 million young workers.
It’s an attempt by the government to stop the dramatic brain drain Poland has experienced since it joined the European Union 15 years ago.
Prime Minister Mateusz Morawiecki said the tax exemption will bring new opportunities for young people “so they match those available in the West.” Poles under the age of 26 who earn less than 85,528 Polish zloty ($22,547) a year will be exempt from the country’s 18% income tax starting August 1. The allowance is generous, considering the average Polish salary stands at just below 60,000 zloty ($15,700) a year.
The government said 2 million people will qualify for the benefit.
Here is the full story. There are also baby bounties in Poland, and policies seem to be increasingly youth-oriented. You can see this on the streets of Warsaw, which have more non-tourist young people than just about any other major city in Europe.
4. “Our counterfactual analysis suggests that a persistent increase in average global temperature by 0.04°C per year, in the absence of mitigation policies, reduces world real GDP per capita by 7.22 percent by 2100. On the other hand, abiding by the Paris Agreement, thereby limiting the temperature increase to 0.01°C per annum, reduces the loss substantially to 1.07 percent. These effects vary significantly across countries.” Link here.
Russ was the interviewer, he and I both think it is the best discussion we have had of eleven (!) interactions. Here is the link. Recommended.
Some of the negative nominal premium comes from the fact that you need these govt. securities for collateral, REPOs, clearinghouse margin, etc.
That doesn’t explain *the change*, but this point is often overlooked and it makes the puzzle somewhat less mysterious.
In part, negative nominal (and real) rates reflect a scarcity of good opportunities *at the margin*, but of course inframarginal opportunities may be fine.
If you wish to try a further de-weirding of this, it may reflect a truth about agency problems rather than absolute pessimism.
If capital is relatively plentiful, and talent is super-scarce, and you don’t know how to find marginal talent, you may be stuck just storing your money. But when talent and liquidity are combined — say Mark Zuckerberg — it will earn phenomenal returns, the other side of the coin.
In other words, this may all be a kind of correlate to income inequality and massive returns for founders…
…you have extra money, you really would like to lend it out for a real productive investment, rather than storing it at slightly negative nominal interest. [savings glut, a’la Softbank]
But whom to trust? Who is your local Mark Zuckerberg? You just don’t know. The uncle you might give it to will just rip you off and he is a dope anyway. [tech talent harder to spot because you can’t rely on traditional credentials]
If the agency wedge is larger, because the talented are already occupied for the most part, you might just have to store it.
This implies mega-returns for good talent spotters, which in fact we observe as of late.
I already linked to this piece, but wanted to recommend it again. I don’t agree with all of the points, but it has many excellent arguments, here is one excerpt from the opening section:
I think that the perception of stagnation in science – and in biology specifically – is basically fake news, driven by technological hedonic treadmill and nostalgia. We rapidly adapt to technological advances – however big they are – and we always idealize the past – however terrible it was.
- first bionic hand with a sense of touch that can be worn outside a laboratory
- development of a new 3D bioprinting technique, which allows the more accurate printing of soft tissue organs, such as lungs
- a method through which the human innate immune system may possibly be trained to more efficiently respond to diseases and infections
- a new form of biomaterial based delivery system for therapeutic drugs, which only release their cargo under certain physiological conditions, thereby potentially reducing drug side-effects in patients
- an announcement of human clinical trials, that will encompass the use of CRISPR technology to modify the T cells of patients with multiple myeloma, sarcoma and melanoma cancers, to allow the cells to more effectively combat the cancers, the first of their kind trials in the US
- a blood test (or liquid biopsy) that can detect eight common cancer tumors early. The new test, based on cancer-related DNA and proteins found in the blood, produced 70% positive results in the tumor-types studied in 1005 patients
- a method of turning skin cells into stem cells, with the use of CRISPR
- the creation of two monkey clones for the first time
- a paper which presents possible evidence that naked mole-rats do not face increased mortality risk due to aging
Doesn’t seem like much? Here’s the kicker: this is not 2018. This is January 2018.
1. Social class at Yale: rambling and at times vague, but also truly interesting in several segments, especially toward the beginning.
Pino Musolino, president of the Port Authority of Venice, told: “Venice port has long worked to seize the opportunities that China’s New Silk Roads strategy offers, with the aim of having positive spillovers on local business and job levels.”
On February 11, Venice signed a memo of understanding with Piraeus to improve overall capacities of the two seaports as important hubs in the Belt and Road scheme. The two port facilities had already set up a weekly ferry service last October. Venice port also has a new rail link to Duisburg, in western Germany, which is the European hub for the land-based Silk Road Economic Belt.
“In regard with the dualism between Venice and Trieste, the two ports actually service different markets,” Musolino emphasised.
“Our facility is the main gateway to industrial clusters in northern Italy, importing raw materials and exporting high-added-value products. For its part, Trieste is focused on Central and Eastern Europe.”
Musolino believes North Adriatic ports should combine their efforts to better manage increased Mediterranean trade resulting from the Belt and Road plan.
Here is the full article.
The earth is getting greener, in large part due to increased CO2 in the atmosphere. Surprisingly, however, another driver is programs in China to increase and conserve forests and more intensive use of cropland in India. A greener China and India isn’t the usual story and pollution continues to be a huge issue in India but contrary to what many people think urbanization increases forestation as does increased agricultural productivity. Here’s the abstract from a recent paper in Nature Sustainability.
Satellite data show increasing leaf area of vegetation due to direct factors (human land-use management) and indirect factors (such as climate change, CO2 fertilization, nitrogen deposition and recovery from natural disturbances). Among these, climate change and CO2 fertilization effects seem to be the dominant drivers. However, recent satellite data (2000–2017) reveal a greening pattern that is strikingly prominent in China and India and overlaps with croplands world-wide. China alone accounts for 25% of the global net increase in leaf area with only 6.6% of global vegetated area. The greening in China is from forests (42%) and croplands (32%), but in India is mostly from croplands (82%) with minor contribution from forests (4.4%). China is engineering ambitious programmes to conserve and expand forests with the goal of mitigating land degradation, air pollution and climate change. Food production in China and India has increased by over 35% since 2000 mostly owing to an increase in harvested area through multiple cropping facilitated by fertilizer use and surface- and/or groundwater irrigation. Our results indicate that the direct factor is a key driver of the ‘Greening Earth’, accounting for over a third, and probably more, of the observed net increase in green leaf area. They highlight the need for a realistic representation of human land-use practices in Earth system models.
It seems so (uh-oh):
Close social bonds are critical to immediate and long-term well-being. However, the neurochemical mechanisms by which we remain connected to our closest loved ones are not well understood. Opioids have long been theorized to contribute to social bonding via their actions on the brain. But feelings of social connection toward one’s own close others and direct comparisons of ventral striatum (VS) activity in response to close others and strangers, a neural correlate of social bonding, have not been explored. Therefore, the current clinical trial examined whether opioids causally affect neural and experiential signatures of social bonding. Eighty participants were administered naltrexone (n = 40), an opioid antagonist that blocks natural opioid processing, or placebo (n = 40) before completing a functional MRI scan where they viewed images of their close others and individuals they had not seen before (i.e., strangers). Feelings of social connection to the close others and physical symptoms commonly experienced when taking naltrexone were also collected. In support of hypotheses, naltrexone (vs. placebo) reduced feelings of social connection toward the close others (e.g., family, friends, romantic partners). Furthermore, naltrexone (vs. placebo) reduced left VS activity in response to images of the same close others, but did not alter left VS activity to strangers. Finally, the positive correlation between feelings of connection and VS activity to close others present in the placebo condition was erased by naltrexone. Effects remained after adjusting for physical symptoms. Together, results lend support to theories suggesting that opioids contribute to social bonding, especially with our closest loved ones.
Here is the full article, via the excellent Kevin Lewis. Note the top item behind the Lewis link: “We find zero or modestly positive estimated effects of these [Haitian] migrants on the educational outcomes of incumbent students in the year of the earthquake or in the 2 years that follow, regardless of the socioeconomic status, grade level, ethnicity, or birthplace of incumbent students.”
The words “felon,” “offender,” “convict,” “addict” and “juvenile delinquent” would be part of the past in official San Francisco parlance under new “person first” language guidelines adopted by the Board of Supervisors.
Going forward, what was once called a convicted felon or an offender released from jail will be a “formerly incarcerated person,” or a “justice-involved” person or simply a “returning resident.”
Parolees and people on criminal probation will be referred to as a “person on parole,” or “person under supervision.”
A juvenile “delinquent” will become a “young person with justice system involvement,” or a “young person impacted by the juvenile justice system.”
And drug addicts or substance abusers will become “a person with a history of substance use.”
“We don’t want people to be forever labeled for the worst things that they have done,” Supervisor Matt Haney said.
The resolution is non-binding, was not signed by the mayor, and it is not clear it will be implemented. Here is the full article.
Some of those terms seem quite reasonable to me, such as “person on parole,” which for many people would be the natural term in any case. But here is my worry. It is we who decide how powerful language is going to be. The more we regulate language, the more we communicate a social consensus that it has great power. And in return the more actual power we grant to those linguistic “slips” and infelicities which remain. It is better to use norms to regulate the very worst speech terms, but not all of them. By regulating too many parts of speech, and injecting speech with too much power, we actually grant more influence to the people and ideas we are trying to stop.
Chinese national identity has long been considered to have been an obstacle to Singapore’s nation-building efforts. This is mainly because China was suspected of using its ethnic links to encourage Singapore’s communist rebellions during the 1950s and 1960s as Lee Kuan Yew was working towards establishing the city state. This study reviews Lee’s exchanges with Beijing and argues that he gave China the impression that he was building an anticolonial, pro-China nation. Beijing therefore responded positively to Lee’s requests for support. Reiterating its overseas Chinese policy to Lee, Beijing sided with him against his political rivals and even acquiesced in his suppression of Chinese-speaking “communists.” In addition, China boosted Lee’s position against Tunku Abdul Rahman, supported Singapore’s independence and lobbied Indonesia to recognize the territory as a separate state. China thus actually played a helpful role in Singapore’s nation building.
Two pig farmers in Western Australia will be jailed after being convicted of illegally importing Danish pig semen concealed in shampoo bottles.
Torben Soerensen has been sentenced to three years in prison, while Henning Laue faces a two-year sentence after pleading guilty to breaching quarantine and biosecurity laws.
The Perth district court was told boar semen had been illegally imported from Denmark multiple times between May 2009 and March 2017. The semen was used in GD Pork’s artificial breeding program and several breeding sows were direct offspring of Danish boars.
Federal agriculture minister Bridget McKenzie said breaches of biosecurity laws would not be tolerated.
“This case shows a disturbing disregard for the laws that protect the livelihoods of Australia’s 2,700 pork producers, and the quality of the pork that millions of Australians enjoy each year,” McKenzie said.
“GD Pork imported the semen illegally in an attempt to get an unfair advantage over its competitors, through new genetics.”
Western Australian Farmers Federation spokeswoman Jessica Wallace said the offences was “a selfish act” that could cripple an entire industry.
Here is more from Lisa Martin, via Art J.
4. The culture that is Wales: “Violent movement would activate a water jet to soak users, automatically open the doors and sound an alarm.”