Month: December 2022

The Labor Market Is Broken

Posted on by Lone Candle

“labor force participation remains stubbornly low, with only 62.3 percent of the civilian population working or actively looking for work—well below pre-pandemic levels. And even before the pandemic, that figure had been steadily declining for years.”

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“the largest component of the most recent reduction appears to be older people who took retirement early and/or previous retirees who have not rejoined the work force at the rates they once did. This trend may well reverse itself if the stock market continues to decline and retirement accounts evaporate, but for now it looks like baby boomers turning on, tuning in, and dropping out—however belatedly—are at least as much of a labor force problem as wayward youths.”

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“”The process of contracting a worker is often close to ultimatum bargaining,” explained Elwyn Davies (then with the University of Oxford) and Stanford University’s Marcel Fafchamps in a 2016 paper exploring the effects of competition on behavior within the ultimatum game. “The employer specifies a job description and proposes a wage and the worker accepts or rejects.

So if employment is an ultimatum game—where playing along might get workers less than employers, but refusing to play gets everyone zero—what is causing the perception that the terms of employment are no longer worth accepting, even when both parties would benefit?

Positive views of capitalism more generally have slipped since 2019, with 39 percent expressing negative views in an August Gallup poll. Another Gallup poll found an uptick of 3 percentage points in people who say they are “completely dissatisfied” with their jobs, while the number of people who were “completely satisfied” fell 8 points.

The perception that conventional jobs are essentially offering workers a pittance while greedily holding back the bulk of the wealth is common in places like the r/antiwork subreddit, which has 2.3 million members. In fact, there’s at least one discussion of the ultimatum game itself on that subreddit, which pulls some figures on companies’ revenue vs. worker compensation and concludes: “If working for Apple was the ultimatum game, the proposer just got $100. They’re offering you 23 [cents], and they keep $99.77. Deal or no deal?” The relative sizes of these numbers might also explain why simply raising wages hasn’t brought people into the workforce, especially when paired with increased awareness of and dissatisfaction with the gap between CEO pay and worker pay in large corporations.”

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“Right now there’s something broken in our economy that is preventing employers and employees from cooperating with each other. The result is that too few deals are being struck and everyone is suffering. The challenge ahead is how to rebuild a sense that the game is fair and everyone is playing in good faith.”

Elon Musk Enforces Twitter’s Ban on ‘Hateful Conduct’ As Critics Predict a Flood of Bigotry

Posted on by Lone Candle

“There is obviously a tension between Twitter’s commitment to “free expression” and its prohibition of hate speech. But while even the vilest expressions of bigotry are protected by the First Amendment, that does not mean a private company is obligated to allow them in a forum it owns. Twitter has made a business judgment that the cost of letting people talk about how awful Jews are, in terms of alienating users and advertisers, outweighs any benefit from allowing users to “express their opinions and beliefs” without restriction.
Other social media platforms strike a different balance and advertise lighter moderation as a virtue. But all of them have some sort of ground rules, because a completely unfiltered experience is appealing only in theory.

Parler, for example, describes itself as “the premier global free speech app,” a refuge for people frustrated by heavy-handed moderation on other platforms. It nevertheless promises to remove “threatening or inciting content.” Parler also offers the option of a “‘trolling’ filter” (mandatory in the Apple version of the app) that is designed to block “personal attacks based on immutable or otherwise irrelevant characteristics such as race, sex, sexual orientation, or religion.” Such content, it explains, “often doesn’t contribute to a productive conversation, and so we wanted to provide our users with a way to minimize it in their feeds, should they choose to do so.””

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“Musk has invited back inflammatory political figures such as Donald Trump and Marjorie Taylor Green. He has rescinded Twitter’s ban on “COVID-19 misinformation,” a fuzzy category that ranged from demonstrably false assertions of fact to arguably or verifiably true statements that were deemed “misleading” or contrary to government advice. At the same time, however, Musk has interpreted Twitter’s rule against impersonation as requiring that parody accounts be clearly labeled as such, and he evidently thinks enforcing the ban on “hateful conduct” is important enough to justify banishing a celebrity with a huge following.”