I knew U.S. healthcare costs were high, but didn't realize that caring for a terminally ill parent would feel like financial war.
The first time we set foot in a hospital—insured & preauthorized—administrators halted surgery prep & demanded $190,000 (!) cash upfront to proceed
Disney World in Florida is open. Disneyland in California is closed.
State policy makers are trying to balance two variables—the virus and the economy—and making different calls.
5-y-o son: "Mom, how many twitter followers do you have?"
Me: "1,800."
Son: "And how many does dad have?"
Me: "About 180,000."
Son: 😯 "What do you tweet about?"
Me: "The job market and the economy."
Son: "Have you ever considered that maybe people find that boring?"
1/ Blacks are 12.3% of total employed, but 16.4% of people employed in justice, public order, and safety activities, according to the Current Population Survey.
There are 4.1 million more full-time employees and 1.6 million fewer part-time employees in the U.S. now than before the pandemic. Workers have migrated out of precarious jobs into full-time jobs in a tight labor market.
November
#JobsReport
in a nutshell: 266K job gains, upward revisions to previous months, 3.5% unemployment, 3.1% annual growth in average hourly wages. Great end to 2019!
This is my favorite labor market chart right now. In a vibrant labor market, people have been getting the hours they want and moving into high-quality jobs. There are now 1.8 million more full-time workers than before the pandemic and 2.4 million fewer part-time workers.
Labor productivity is the silver bullet that would allow GDP and real wages to rise while inflation continues to fall. It is the secret not just to a soft landing, but to an economic boom. In Q3, it rose 4.7%, and unit labor costs *fell* 0.8% as a result.
This is one of those stats that gets repeated all over but is not supported by the data. Several studies have exposed the idea of widespread medical bankruptcies as a myth. Read
@aparnamath
on the topic:
Personal finance recommendations if you're ever in the same boat:
- Get a patient advocate
- Double-check everything
- Check official clinical guidelines
Very tragically, you can't always trust the individuals and organizations supposedly there to help you in your darkest hour.
.
@CNN
has egg on its face today. Told America eggs are killing us, when the study shows eggs have an insignificant effect, controlling for other foods. Hire reporters/editors who understand science, unless you want that
#FakeNews
title to stick.
Not sure what’s been going on here over the past two days, because I’ve been staring at our new baby girl, Amira Leah Pollak, born Friday morning. Overjoyed and immeasurably grateful. 💖
For a year, I had to be constantly on guard against:
- Unbundling
- Up-coding
- Double billing
- Getting inappropriate, non-efficacious, non-indicated, and *extremely* expensive care foisted upon us by docs with warped incentives
From today’s
@WSJ
: Investors are flocking to the U.S. as markets in Turkey, Russia, China tumble. While the S&P 500 has risen 4.5% this quarter and is trading within about 1% of its all time high, stocks elsewhere around the world have fallen 1.3% this quarter and 7% this year.
Proud to be a ready reservist
@USNavy
. Also constantly amazed and inspired by the fact that the Navy receives such an overwhelming response whenever it calls for volunteers. Bravo Zulu to all our U.S. Navy Reserve Corpsmen and physicians volunteering for this crucial mission.
“When we were asked to help find medical professionals to help support this mission, we received hundreds of volunteer requests from our reserve medical community in less than 24 hours.”
Reserve Sailors Embark
#USNSComfort
-
The Senate has approved the
@IvankaTrump
-backed 12-week paid family leave plan for federal employees. Will private sector companies without paid parental leave now follow suit?
Hey,
@businessinsider
, you buried the lede.
@patagonia
is closing *but continuing to pay workers during the closure.* That’s a remarkable story, and probably one we won’t see in many other places due to businesses’ financial constraints, investors, shareholders, etc.
...something that happens nowhere else on earth. Even the wealthiest Americans don't have hundreds of thousands of liquid dollars lying around. But the hospital tried its luck, with a hungry patient who'd fasted all day staring down a terrifying diagnosis, under duress.
I stayed in downtown Portland last month, and was shocked to find a zombie apocalypse. On every street, there were people standing with vacant stares, drugged up on fentanyl & tranq. Young, middle-aged, white, Hispanic, black. Most, men. Some women. Tragic
Non-indicated drugs costing $20k-$70k per year were sometimes summarily prescribed, delivered, or administered with no prior discussion with the patient, and no concern for the risk that insurance might not cover them, given their non-indication for the particular cancer.
While it's true that inflation is cooling & some prices are falling, what consumers notice is cumulative inflation over longer periods, not month to month inflation. Producers' selling prices have risen >20% since the pandemic, rather than by the ~7% we'd see with 2% inflation.
Unemployment rates in the nation's 10 largest metro areas:
16.4% - New York
16.8% - Los Angeles
12% - Chicago
7.5% - Dallas
9.4% - Houston
7.9% - Washington, D.C.
13.2% - Miami
14.1% - Philadelphia
8.5% - Atlanta
10.3% - Phoenix
And a major reason the children of immigrants are so upwardly mobile, according to research by
@leah_boustan
and Ran Abramitzky, is that they move to the places within the country with the best opportunities, and aren’t tethered to places that are in decline.
One theme of the Chetty et al papers has been the link between geographical and social mobility.
The rich move more, move farther, build more relationships far from home, and have greater capacity to sort and match away from home.
Movement within America is classed.
Two issues with the implication in this tweet:
- The study shows cases among people who “claim” to wear masks. Large literature finds self-reports of socially desirable behavior are unreliable.
- You’re not accounting for differences in risk/exposure
BREAKING: September job growth weaker than expected at 134,000, but...
July job growth revised up from +147,000 to +165,000
August job growth revised up from +201,000 to +270,000
So employment gains in July and August combined were 87,000 more than previously reported
We hear this from so many companies. Their own sales are soaring so they’re having to hire like mad, but at the same time they feel pressure to develop downsizing plans to prepare for the recession they’re told is just around the corner
UNITED AIRLINES CEO: "If I didn't watch
@CNBC
in the morning -- which I do -- the word 'recession' wouldn't be in my vocabulary. You just can't see it in our data."
@SquawkCNBC
$UAL
And this was at one of the best hospitals in the country, with decorated and widely published oncologists and surgeons trained at top institutions like Harvard Medical School.
1/ Thread on U.S. responses to pandemics over the decades
TL/DR: On every occasion, the U.S. was slow to recognize problem and respond; either overestimated or underestimated the risk; experienced massive setbacks that delayed response; often escaped due to sheer luck
In a recent
@ZipRecruiter
survey, 71% of job seekers ranked cost savings from commuting as the most important benefit to them of remote work.
@ModeledBehavior
’s calculations show why this has been such a boon.
Which states did the best in dealing with Covid?
Your view may depend on how highly you value jobs saved vs. lives saved.
The higher up the dot, the higher the death rate. The further left, the higher the job losses.
Bottom right corner is best.
The economy has recovered the *number* of jobs lost in the pandemic, but not the same ones. Jobs have moved to different industries.
What surprises me most in this chart is the persistence of the Covid shock. Things did not go back to normal once lockdowns ended.
Many
#JobsReport
watchers today are saying there is "no sign of weakness" in the labor market. I respectfully disagree. Outside of healthcare, government, and leisure and hospitality, there are signs of weakness as far as the eye can see. Consider biz employment..
This unemployment report is incredible. Wow. Had the prior relationship between Covid cases and employment held true, 800k daily new Covid cases would have led to 2.3 million job losses. Instead, we saw 467,000 job GAINS!
"What causes inflation? In almost all cases of large or persistent inflation, the culprit turns out to be the same—growth in the quantity of money." -
@gregmankiw
Lower-income workers are quitting their jobs for better opportunities at higher rates than in the past, says
@sechaney
, highlighting a recent
@NYFedResearch
survey. Here’s to dynamic labor markets and better matches between job seekers and employers 🍻
I so miss my dear mother, who passed away three short weeks ago after a devastating 7-month battle with cancer. She was a single mom and I her only child, so I was her +1 at everything. We were a gruesome twosome, she liked to say. Forever grateful to have had such a great mother
CPI inflation is 4.9% YoY, but only 3.2% on a 3-month annualized basis. Ignoring higher inflation late last year and zooming in on what is happening now, inflation is modest and falling, even as the economy adds hundreds of thousands of jobs and unemployment hits a 70-year low.
The NYT and WSJ today draw the opposite conclusions about how job search has responded to the cancellation of enhanced unemployment benefits in Missouri. Let me give you a few reasons why it is too soon to tell and much harder to infer the causal effect than perhaps it seems.
Want to see an encouraging labor market chart? This shows labor force participation for people with disabilities—way up in a tight labor market where remote work has become the norm in many industries, not the exception.
3/ I had assumed the opposite and was going to suggest that increased diversity in recruitment could help alleviate racial bias in the police force and military and improve public perceptions. But it turns out these institutions are already some of the most diverse in the nation
California is in a recession, according to the Sahm rule.
The 3-month moving average of the state unemployment rate has risen by 0.6 percentage points relative to its low in the last year.
It's now 4.43%, up from 3.83% in August 2022.
California National Guard helicopter pilots have been rescuing stranded hikers during the fires. I’m moved to see them being honored today, and proud of the great military helo community.
The labor market was in free fall for weeks after the
#COVID19
crisis struck, but now several indicators are stabilizing or rebounding. See my latest on why there is reason for optimism.
States that voted for Biden have lost -723.5k jobs since Covid, while states that voted for Trump have added +1.186M, according to
@BLS_gov
data.
BIG WINNERS
+563.9k Texas
+371.9k Florida
+180.9K North Carolina
BIG LOSER
-327.8k New York
How will that affect '24 election?
@JustinWolfers
Food prices generally are up 23.5% since Feb 2020. Had they grown at the prior 2% rate, they’d only be up 7%. Cumulative inflation is what matters for consumers, not MoM inflation. And people see grocery prices frequently, so they’re most salient.
Harvard needs to fix its problems this year or else it will suffer lasting damage to its reputation. Harvard alumni, there’s only a week left to nominate fresh leadership to the Board of Overseers. Nominate new oversight TODAY!
Proposal: Let’s keep the FDIC cap at $250K and allow depositors with more to buy insurance provided by the market—the same way we buy insurance against other calamities. The added benefit would be that insurers would act like bank regulators—just do it smarter and better. 💡
This is interesting. It suggests supply chain issues are more to blame than wage growth, since restaurants are more labor-intensive (they have a higher worker-to-food ratio)
Wow.
It's pretty wild that "food at home" (aka groceries) is now seeing faster price increases (6.4% in past year) than "food away" (aka restaurants, where prices are up 5.8% in past year)
Housing and car insurance are the main drivers of today’s high core inflation print. Energy prices are the main driver of the increase in the overall CPI. Outside of those categories, the prices of goods and services are relatively stable, and some are even falling.
Median household income was $68,700 in 2019, up 6.8% from the prior year and the highest figure on record.
The poverty rate was 10.5%, a drop of 1.3 percentage points from the year before and its lowest level since 1959, the first year it was tracked.
Nonsense. The baby formula crisis is 100% government-made. Overregulation has produced a fragile market with insufficient competition. And the government was aware of a problem for months but made no contingency plans prior to the Abbott Laboratories plant closure.
2/ Blacks, especially women, are overrepresented in the U.S. military (except black men in the
@USMC
, strangely). There are nearly as many black women as white women in
@USArmy
, even though there are 5 times as many employed white women as black women in 🇺🇸
BREAKING: Unemployment fell to the lowest rates ever recorded in four states in August:
Idaho (2.8 percent)
Oregon (3.8 percent)
South Carolina (3.4 percent)
Washington (4.5 percent)
@BLS_gov
President Biden writes to oil executives complaining (!!!) the industry shut down too much refining capacity:
“At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable" (full letter via
@axios
)
#OOTT
We are on the verge of a complete private sector recovery, with 99% of private sector jobs lost in the pandemic now recovered, but only 58% of the public sector jobs. Which raises the question: What have we done with all that Covid relief money sent to state & local governments?
California Gov. Gavin Newsom mandated that both public and private schools in certain counties could NOT reopen for in-person learning, but summer camps could. So some private schools are changing their names and reopening as summer camps.
This jobs report is almost too good to be true...at least in the short term. In macroeconomics, almost everything that is good in the short term is bad in the long term, and vice versa. Continued labor market heat could cause the Fed to keep rates higher for longer.
A disappointing September
#JobsReport
:
📉Only 194k jobs created
📉A big drop in the unemployment rate to 4.8% down from 5.2%, partly because the labor force participation rate remained an anemic 61.6%
📈 4.6% YoY growth in hourly wages
The Jerusalem Symphony Orchestra recorded the UAE's national anthem to celebrate the Abraham Accords, & now it's recorded the Moroccan anthem to celebrate the normalization of relations—sweet reminders that some very good things happened in 2020, too.
I am running for
@Harvard
Board of Overseers to help reverse the decline of civic culture on campus.
My platform is simple:
- Restore leadership excellence
- Uphold academic freedom
- Protect all students from harassment
- Remedy mismanagement
The
@Conferenceboard
’s Leading Economic Index fell again in July, forecasting a slowdown. But this time may be different. Most indicators are at very healthy levels, but the index tracks movement and most are declining…from completely unusual record highs, as expected.
When I see how hard it is to build a dam or a power plant in the U.S. these days, I worry no key stakeholders fully appreciate the costs of failure. Come visit South Africa, and they will become immediately apparent. It should be a massive warning sign to the U.S.
There are NO recession warning bells in this jobs report. Instead:
- Temporary help services (which typically declines in the months leading up to a recession) grew by +27.1k.
- Average weekly hours held steady
- Part-time for economic reasons fell (-306k)
The semiconductor industry warns that there won’t be enough engineers, computer scientists and technicians in the US to support a rapid expansion this decade via
@technology
In 2014, the Obama Admin stopped enforcing immigration law and stopped detaining people who crossed the border illegally if they came with children. NYT wrote about the unintended consequences: smugglers and traffickers started using more children. Complicated problem.
You mean Trump's policy of "zero tolerance" toward adults who cross illegally, regardless of whether they are with children or not? "Family separation" has been the law of the land since the Clinton administration
@GideonResnick
via
@thedailybeast
Rent control in San Francisco backfired. It led to a 25% reduction in the number of rental apartments — and thereby contributed to skyrocketing "market" rents.
Do people move to Medicaid expansion states from non-expansion states to get health coverage? The answer is NO. Now there’s an indication of how low geographic mobility is in the U.S. today.
The expansion of Medicaid to low‐income adults is a key component of the Affordable Care Act's strategy to health insurance coverage. Do people move to Medicaid expansion states from non-expansion states? See the JPAM article by
@goodmanl
for the answer
After population adjustments, labor force participation is still a soggy 62.4%, well below its pre-pandemic 63.3%. The labor force shortfall of about 3.5 million workers is constraining job growth, as high as it is.
Thanks to
@ShiraOvide
for letting me vent—in the
@nytimes
—about how, even though modernizing electronic medical records became all the rage in 2009, educational records are still relegated to filing cabinets, snail mail, & fax machines 10+ years later.
The employment gain in today's
#JobsReport
is higher for blacks (1.4%) than for whites (0.6%) or Hispanics (0.7%), largely driven by job growth in warehousing and delivery, industries where blacks are overrepresented
It's hard to take politicians or the press seriously when they're all crammed into a room, unmasked, with shockingly poor ventilation, after two years of scolding everyone else. Come on, man.
Wow—a CO2 concentration reading at the
@WHCA
dinner tonight… at 8:20pm. A CO2 of 2233 is over *5.5x higher* than outdoors, and is a sign of VERY poor ventilation. They should have added more air disinfection at
#whitehousecorrespondentsdinner
.
From
@nalticx
.
#COVIDisAirborne
A brilliant paper by the world's leading market design experts recommends using a similar system to allocate ventilators as the oversubscribed New York City Marathon uses to allocate 53K slots to runners. Divide into several tranches, each with different priority ranking system.
Thank you to the entire care team
@UCLAHealth
BirthPlace Santa Monica for the world-class care. Everyone was skillful, professional, attentive, compassionate, kind, and totally supportive of my wishes. And L&D nurses, thanks for all the fun!
Not sure what’s been going on here over the past two days, because I’ve been staring at our new baby girl, Amira Leah Pollak, born Friday morning. Overjoyed and immeasurably grateful. 💖
A rising share of the people getting jobs right now are going from being outside the labor force one month to being employed the next. They're bypassing that whole uncomfortable "unemployment" phase entirely.
Breaking: An astonishingly good job report
250,000 new jobs
Job gains in ALL industries
Labor force participation up 0.2%
Employment-population ratio up 0.2%
Unemployment steady at a record low 3.7%, down 0.4% YoY
Latest stat I had to check twice:
There were ~3.7 million live births in the U.S. in 2021.
There were ~630,000 abortions.
That's about one-sixth as many.
Not a normative statement about how the world should/shouldn't be, but about how it is and the scale of this issue.
4/ Can anyone direct me towards the best and most recent research on the effect of police officer diversity on police-caused homicide? cc:
@jenniferdoleac
Narrator: No, wage growth isn’t a problem for the Fed. Wages still have some catching up to do after 25 months of real wage declines. And besides, wage growth this high is not inflationary given how high productivity growth is.
FITCH: ".. There is simply no way that 350,000 job gains in a month is consistent with a further cooling of the labor market. This elevates the risk that nominal wage growth will not fall back to levels consistent with reaching the inflation target on a sustained basis,…
Here's where it's at, folks. This is the chart to watch, and the one that should make labor market observers worry. Construction job openings plummeted in January. Not surprising, given high interest rates & the housing recession. But it could spell large job losses ahead.
#JOLTS
Here’s what I don’t understand: The recent
@federalreserve
Beige Book contained dozens of mentions of businesses saying consumer spending is falling. But spending is growing in real terms, and at quite a clip. Why the continued disconnect between anecdote and data?