China markets in everything
But in the country’s large cities, spaces that offer the solution have begun to spring up: companies that allow people to pretend to work.
For a daily fee of between 30 and 50 yuan ($4-$7), these companies offer desks, Wi-Fi, coffee, lunch, and an atmosphere that mimics any work environment. According to a report in Beijing Youth Daily, although there are no contracts or bosses, some firms simulate them: fictitious tasks are assigned and supervisory rounds are even organized. For a fee, the theatricality can reach unimaginable levels, from pretending to be a manager with his own office to staging episodes of rebellion against a superior.
Zonghua is Cantonese and prefers not to give her real name. Tired of traveling and the pressures of the financial world, she resigned from her position in the spring of 2024, she tells this newspaper via a local social media platform. “I was looking for a more stable life,” she writes. But she doesn’t dare tell her family the truth. At first, she went to libraries, but for the past few months, she has been paying a monthly fee of 400 yuan ($55) for a comfortable space to spend the day; it’s much cheaper than spending hours in a cafe. Zonghua doesn’t know how much longer this situation will last, as, for now, she’s not having any “success” with her applications.
Here is the full story, not unrelated to UBI debates either. Via R.
Tuesday assorted links
1. The coalition against the Trump tariffs (NYT).
3. Alasdair Macintyre obituary (NYT).
5. “Conjecture: econ academia is very far from the optimal architecture for data research. The optimal architecture is much more centralized. Half the researchers work together, or in large teams, to build clean and efficient datasets. The rest work in smaller teams to analyze data” Link here.
6. In Burkina Faso, free contraception does not lower fertility much.
7. Good NYT piece on the new Torigian biography of Xi’s father.
Sentence of the Day
FT: Analysis by Torsten Sløk, chief economist at Apollo, suggested that US government credit default swap spreads — which reflect the cost of protecting a loan against default — are trading at levels similar to Greece and Italy.
Yikes!
Do more laws boost economic growth?
This paper analyzes the conditions under which more legislation contributes to economic growth. In the context of US states, we apply natural language processing tools to measure legislative flows for the years 1965–2012. We implement a novel shift-share design for text data, where the instrument for legislation is leave-one-out legal topic flows interacted with pretreatment legal topic shares. We find that at the margin, higher legislative output causes more economic growth. Consistent with more complete laws reducing ex post holdup, we find that the effect is driven by the use of contingent clauses, is largest in sectors with high relationship-specific investments, and is increasing with local economic uncertainty.
That is from a new issue of the JPE, by Elliott Ash, Massimo Morelli, and Matia Vannoni.
What Explains Growing Gender and Racial Education Gaps?
In the 1960 cohort, American men and women graduated from college at similar rates, and this was true for Whites, Blacks and Hispanics. But in more recent cohorts, women graduate at much higher rates than men. Gaps between race/ethnic groups have also widened. To understand these patterns, we develop a model of individual and family decision-making where education, labor supply, marriage and fertility are all endogenous. Assuming stable preferences, our model explains changes in education for the ‘60-‘80 cohorts based on three exogenous factors: family background, labor market and marriage market constraints. We find changes in parental background account for 1/4 of the growth in women’s college graduation from the ’60 to ’80 cohort. The marriage market accounts for 1/5 and the labor market explains the rest. Thus, parent education plays an important role in generating social mobility, enabling us to predict future evolution of college graduation rates due to this factor. We predict White women’s graduation rate will plateau, while that of Hispanic and Black women will grow rapidly. But the aggregate graduation rate will grow very slowly due to the increasing Hispanic share of the population.
That is from a new NBER working paper by
They are solving for the (crypto) equilibrium
Twenty-five people, including six minors, were charged in Paris over a spate of kidnappings and attempted abductions in France’s cryptocurrency world, said the city’s public prosecutor office on Saturday, May 31.
“Eighteen people have been placed in pre-trial detention, three have requested a deferred hearing and four have been placed under judicial supervision,” the public prosecutor said, with the suspects between 16 and 23 years old.
Here is the full story.
Italy facts of the day
About 156,000 Italians left the country last year for Germany, Spain, the UK and elsewhere, a 36.5 per cent increase over the number who emigrated in 2023.
At just under 191,000, the total number of people who left Italy in 2024 — including 35,000 long-term foreign residents, mainly Romanians returning home — was at the highest level in a quarter of a century, according to Italy’s official statistics agency, Istat.
Italy’s population decline is among the most acute in Europe, after decades of plummeting birth rates. At present, about a quarter of Italy’s 59mn people are over the age of 65, while just 12 per cent of the population are children aged 14 and under. The working age population is forecast to drop by another 5mn people by 2040.
Here is the full FT story.
Monday assorted links
Madrid’s Galería de las Colecciones Reales
Visitors don’t seem to know about this place yet, but it is one of the finest artistic venues in Spain. Taken from the royal collections and opened only a few years ago, it has one of the best displays of 16th century Brussels tapestries you will find, perhaps the best, beautifully hung with plenty of space. The paintings are from Goya, Velazquez, Melendez, Patinir, Mengs, Juan de Valdés, and others patronized by the Spanish rulers. Few bad pieces in the lot. There are also Goya tapestries, sometimes right next to associated Goya paintings. A splendid royal carriage.
This is perhaps my sixth (?) visit to Madrid, and the place never has felt better. Great for walking, and full of young people and small shops. It has absolutely displaced Barcelona as the leading city in Spain. A+ for both dining and art, and now it is the European capital of Latin America as well. It is no longer crazy to put it in the same league as Paris or Berlin, and these days feels more like a work in progress — in the good sense of that term — than either of those other places.
Travel bleg for Avila, Salamanca, Segovia, and other smaller places nearby
Your suggestions are most welcome, thank you!
My days collecting Mexican art, part I
In an earlier post I detailed my history of how I got started collecting Haitian art. There is more to that story, but for now the point is that buying Haitian art led me into buying Mexican art as well.
I was visiting the New Jersey home of famed author and art dealer Selden Rodman, who had lived part-time in Jacmel, Haiti for decades and by then was approaching his 90s. This was in the late 1990s. On his wall I saw some Mexican paintings, from a small Mexican village called San Agustin Oapan (good short video), in the state of Guerrero.
The style of the art was naive, broadly similar to the major trends in Haitian art at the time. Perspective was vertically stacked, as you might find in medieval art. Sun and stars were prominent in the pictures, often portrayed together. You might see angels, a tableau of the village, a procession, or village animals or a local fiesta. Colors would be bright, or black and white.
I tried to buy the paintings, but Selden refused to sell them. I kept on trying, but to no avail. Finally he cackled and spit out “Well, I guess you’ll just have to go there and get some!” As if to get rid of me, which he did.
Not one to decline such a challenge, I began to investigate the matter. I could not find the name of the small village on any maps, including the detailed Mexico maps held in the GMU library. Finally, I called up Selden and he gave me some vague sense where it was. I flew to Mexico City and hired a taxi. We drove several hours to the general area, and then started asking people on the side of the road where the village was. We kept on being redirected, and for a while it seemed fruitless. But eventually someone told us to take an unmarked turn from the road, not too far from Iguala. And so we climbed the hill on an unpaved road, with the 25 km distance taking almost four hours.
The eventual taxi fare was $600, a fair amount in the Mexico of the late 1990s.
Along the way were fantastic cactuses and canyons, another small village, and the occasional person with a burro. It was hot. I was on my way.
When I reached the village, I was surprised by the number of pigs, by the number of drunken men lying in the street, and by the living standards, even though I had been going to Haiti. I later learned that a family of seven might earn about $1500-2000 a year, and if seven children were born perhaps only four or five would survive to adulthood. I thought the place at least would have a shop or a restaurant, but no.
Due to its remoteness, Oapan was still Nahuatl-speaking (the older people did not speak Spanish at all) and had preserved an especially large number of pre-Columbian customs and religious practices. Oapan, by the way, is a Nahuatl word for “where the green maize stalk abounds.” To this day, I consider Nahuatl to be the most beautiful and expressive language I have heard.
I started asking around for Juan Camilo Ayala, the name of the painter whose work I so admired. It turns out there were two people with that name in the village, but eventually I found his home and knocked on the door. I was not expecting to find a corn farmer and a bunch of domestic animals behind the door, but indeed I did. He later related he was shocked that I came to visit, but he responded calmly in a non-plussed manner. “Not many people come here,” he noted in his own broken Spanish.
I showed him a photo of the painting I liked in Rodman’s house, but he did not remember it. Nonetheless he pledged to paint, if not a copy, something in the same general style and inspiration. I asked for a large painting, and was surprised when he cited a price of only $100.
Like an idiot, I handed over an AmEx traveler’s check, and Juan Camilo thought it was dollars. (Later on we straightened that mess out, and I started using Western Union.)
I gave them my address, which they wrote in the rafters of the home, above the screeching roosters, and I headed back down to Mexico City with the cab. Several months later a beautiful picture arrived at the house, in perfectly good condition. It hangs on the stairwell to this very day.
I was hooked, and soon this story was to continue…
Mexico has been electing its federal judges
As a result, Mexicans face the paradox that giving more power to the public may undercut their democracy.
Predictions for Morena’s success on Sunday are driven by the unusual nature of the vote.
Just roughly 20 percent of voters are expected to cast ballots, the electoral authorities say, in part because voters hardly know the candidates. Polling shows Morena is overwhelmingly popular and the opposition is frail. The government controlled the selection process for federal candidates, who are elected by voters nationally, and 19 of 32 states will also elect local candidates.
Candidates are largely barred from traditional campaigning, a policy to try to level the playing field among candidates with different campaign funds. And political operatives have been accused of handing out cheat sheets, most of which recommend candidates with known ties to Morena.
Here is more from the NYT. Garett Jones, telephone!
Sunday assorted links
1. The confluence of Britain’s problems, written by a sitting MP. In response, o3 tries to summarize market trends for real estate.
2. Speculative but very interesting thread on Russian opinions on various drone developments.
3. “By revenue, UPenn is bigger than BNY Mellon; Columbia is as big as Coinbase.”
5. Progress in deciphering Vesuvius scrolls (The Economist).
6. June is Bustin’ Out All Over (song).
Stanley Fischer, RIP
Here is Olivier Blanchard on Fischer. And from Haaretz. Here is the FT. And from the NYT.
*The Party’s Interests Come First*
By Joseph Torigian, this could easily end up as one of the twenty or thirty best biographies of all time. It is about Chinese history, and is a biography’s of Xi’s father. The subtitle is The Life of Xi Zhongxun, Father of Xi Jinping. The dense (and fascinating) exposition is difficult to excerpt, but here is one bit of overview:
An inescapable irony sits at the heart of The Party’s Interests Come First. It is a book about party history, and the life of its subject, Xi Zhongxun, is itself a story about the politically explosive nature of competing versions of the past. The men and women who gave their lives to the party were enormously sensitive to how this all-encompassing political organization would characterize their contributions. Such a sentiment was powerful not only because revolutionary legacies were reflected through hierarchy and authority within the party but also because their lives as chronicled in party lore had a fundamental significance for their own sense of self-worth.
If there is an overriding lesson to this book, it is that China has not yet left its own brutal past behind.
Hat tip and nudge here goes to Jordan Schneider.