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Are American progressives making themselves sad?

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Surely few developments could be less surprising than the recent news that America has slipped down the global happiness rankings. Gallup reported in mid-March that America had dropped out of the top 20 for the first time since it started taking its survey in 2012, falling in a year from 15th place to 23rd. (Yes, annoyingly, Finland came out on top, for the seventh straight year.)

Their economy and technology may be the envy of the world, but Americans are becoming a dyspeptic bunch, anxious about the future and uneasy about foundational institutions, from the armed forces to the press to organised religion. Yet all are not equally sad. Numerous studies and surveys—Americans are obsessed with this subject—show that some groups tend to lag behind others in the pursuit of happiness: bankers are said to be sadder than lumberjacks, the unmarried sadder than the married, teenage girls sadder than teenage boys.

One distinction that holds true today has persisted for decades: liberals are sadder than conservatives. This is a global symptom of political difference, but it is particularly strong in America. Of whatever age group or whichever sex, liberals are also far more likely than conservatives to report having been diagnosed with a mental illness.

In the new Gallup survey self-reported happiness fell for every age group, but most precipitously for those 30 and younger. Older Americans ranked tenth globally in happiness, whereas younger Americans ranked 62nd. That is a change from a decade ago, when the two groups reported similar levels of happiness. The trend is consistent with data from the Centres for Disease Control and Prevention, which surveys 17,000 high-school students every two years. Rates of mental-health problems have increased with every survey since 2011, and last year the CDC reported the highest rates of sadness found in a decade, particularly among girls.

In a study in 2021 called “The Politics of Depression”, a group of scholars zeroed in on the possible link between political ideology and unhappiness among teenagers. They found an alarming rise in depression among young people starting in 2012, and, like the cDC, a particular increase among girls. But ideological difference mattered more than gender difference. Liberal boys reported higher rates of depression than conservative boys or girls, and liberal girls reported the highest rates of all.

Disentangling correlation from cause to explain the happiness gap between conservatives and liberals has long vexed social psychologists and political commentators. So, no doubt, has the task of disentangling one’s own politics from one’s hypotheses. The authors of the study connected the rise of depression with the spread of social media. They also argued that conservative ideology may help protect mental health, for reasons that did not flatter conservatives: “This group presumably benefits from the American cultural myth of an equal playing field in which exceptional social positions are thought to be earned through hard work and talent rather than inherited through codified privilege.” Liberal adolescents, they wrote, may feel alienated in contrast to conservative peers “whose hegemonic views were flourishing”.

A possible flaw in this theory is that, in the first four years that young liberals’ mental health declined, Barack Obama was president and conservative views were not so successfully hegemonic. Even before 2012, when teenagers reported relatively stable mental health, young liberals, like older liberals, reported higher rates of depression. Sceptics of the authors’ hypothesis have noted that being conservative could confer psychological benefits for less cynical reasons. Conservatives tend to be healthier, more patriotic and more religious, and to report finding higher levels of meaning in their lives. These characteristics correlate with happiness.

It is possible that liberalism does not just correlate with sadness but may exacerbate it. Musa al-Gharbi, a sociologist at Stony Brook University, has noted that educated, affluent white liberals have come to endorse the idea that America is systemically racist, leading them to view other racial and ethnic groups more warmly than their own. “This tension—being part of a group that one hates—creates strong dissociative pressures on many white liberals,” he wrote in the journal American Affairs. Another hypothesis, advanced by Jonathan Haidt, a social psychologist, and Greg Lukianoff, a lawyer, is that liberals are performing a reverse cognitive behavioural therapy on themselves: promoting not resilience and optimism about incrementally improving the world but catastrophic rumination about problems such as climate change and fearfulness of disagreement even on university campuses. Such habits of mind can deepen depression.

Mopes and change

Research has found liberals to be more empathetic than conservatives, so in a troubled world one might expect them to be sadder. But a profound shift appears to be under way when it comes to excitement about change. “One of the fundamental traits of the conservative attitude is a fear of change, a timid distrust of the new as such,” wrote Friedrich Hayek in “The Constitution of Liberty” in 1960, “while the liberal position is based on courage and confidence, on a preparedness to let change run its course.”

Mr Obama, whose summons to “hope and change” rhymed with his own biography, may have marked high water for this idea of American liberalism, as opposed to today’s progressivism. President Joe Biden has negotiated potentially transformative legislation, but he presents himself as guarding against radical change. Donald Trump has robbed liberalism of its transgressive glamour and made conservatism mean its opposite: disruption, subversion, challenge to fuddy-duddies and the status quo—all that cool stuff. It’s kind of depressing. 

Read more from Lexington, our columnist on American politics:
The case of Stormy Daniels echoes past scandals (Mar 27th)
Binyamin Netanyahu is alienating Israel’s best friends (Mar 18th)
“Dune” is a warning about political heroes and their tribes (Mar 14th)

Also: How the Lexington column got its name

Economics

BOI Reporting and the impact of the recent Federal Injunction

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The Corporate Transparency Act (CTA) is a legislative measure designed to enhance financial transparency

The Corporate Transparency Act (CTA) is a legislative measure designed to enhance financial transparency and mitigate risks such as money laundering, terrorist financing, and other illicit financial activities. The CTA aims to close loopholes and create a fairer business environment by requiring certain entities to disclose their beneficial ownership information. However, recent legal developments have temporarily impacted compliance requirements, bringing attention to the act’s ongoing litigation and implementation.

Federal Court Decision and Its Implications

On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al. (No. 4:24-cv-00478). This injunction temporarily halts the enforcement of the CTA, specifically its beneficial ownership reporting requirements. Additionally, the court order stays all deadlines for compliance.

As a result, reporting companies are currently not obligated to submit beneficial ownership information (BOI) reports to the Financial Crimes Enforcement Network (FinCEN). During the injunction, these entities are also shielded from liability for non-compliance with CTA mandates.

Despite this pause, FinCEN has clarified that companies may still voluntarily submit their BOI reports. This voluntary reporting option remains available for businesses that wish to align with the CTA’s transparency goals.

Overview of the Corporate Transparency Act

The CTA mandates that certain entities provide information about their beneficial owners—individuals who own or control a business. The act is intended to increase transparency, enhance national security, and reduce the anonymity that can facilitate financial crimes.

While the CTA has garnered support for its objectives, it has also faced legal challenges questioning its constitutionality. Courts in different jurisdictions have issued varying rulings, with some upholding the law and others granting temporary injunctions. For example, district courts in Virginia and Oregon have ruled in favor of the Department of the Treasury, asserting the CTA’s alignment with constitutional principles.

Compliance During the Injunction

Currently, the federal injunction exempts businesses from mandatory BOI filing requirements nationwide. This temporary halt will remain in place until further developments, such as a decision by an appellate court or a reversal of the injunction.

In response to the ruling, the Department of Justice, representing the Department of the Treasury, has filed an appeal. While the case proceeds through the legal system, FinCEN has confirmed its compliance with the court order.

Looking Ahead

The legal proceedings surrounding the CTA highlight the evolving nature of financial regulation. As courts continue to deliberate, businesses should monitor updates to remain informed about their obligations. By staying informed and prepared, businesses can effectively manage their compliance responsibilities and contribute to efforts that promote financial integrity and transparency.

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Economics

After a chaotic scramble, Congress strikes a budget deal

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Donald Trump is the most powerful Republican politician in a generation, but the president-elect is still no match for the most nihilistic members of his own party. The budget chaos that unfolded on Capitol Hill as the Christmas break approached is only a preview of the difficult realities Mr Trump will face when he starts to govern next month.

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Economics

Why Congress is so dysfunctional

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Budgetary chaos is a sign that governing will be harder than Donald Trump might assume

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