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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

Will the class of ’24 turn out like the boomers?

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This is the introduction to Checks and Balance, a weekly, subscriber-only newsletter bringing exclusive insight from our correspondents in America.

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Economics

U.S. job growth totaled 175,000 in April

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U.S. job growth totaled 175,000 in April, much less than expected, while unemployment rose to 3.9%

The U.S. economy added fewer jobs than expected in April while the unemployment rate rose, lifting hopes that the Federal Reserve will be able to cut interest rates in the coming months.

Nonfarm payrolls increased by 175,000 on the month, below the 240,000 estimate from the Dow Jones consensus, the Labor Department’s Bureau of Labor Statistics reported Friday. The unemployment rate ticked higher to 3.9% against expectations it would hold steady at 3.8%.

Average hourly earnings rose 0.2% from the previous month and 3.9% from a year ago, both below consensus estimates and an encouraging sign for inflation.

The jobless rate tied for the highest level since January 2022. A more encompassing rate that includes discouraged workers and those holding part-time jobs for economic reasons also edged up, to 7.4%, its highest level since November 2021. The labor force participation rate, or those actively looking for work, was unchanged at 62.7%.

Wall Street already had been poised for a higher open, and futures tied to major stock market averages added to gains following the report. Treasury yields tumbled after being little changed before the release. The report raised the prospect of a “Goldilocks” climate where growth continues but not at such a rapid pace to force the Fed to tighten policy further.

“With this report, the porridge was just about right,” said Dan North, senior economist at Allianz Trade. “What would you like at this point the cycle? We’ve had interest rates jacked up pretty high, so you would expect to see the labor market slow down a little. But we’re still at pretty high levels.”

Consistent with recent trends, health care led job creation, with a 56,000 increase.

Other sectors showing significant rises included social assistance (31,000), transportation and warehousing (22,000), and retail (20,000). Construction added 9,000 positions while government, which had shown solid gains in recent months, was up just 8,000 after averaging 55,000 over the previous 12 months.

Revisions to previous months took the March gain to 315,000, or 12,000 from the initial estimate, and February to 236,000, a decline of 34,000.

Household employment, which is used to calculate the unemployment rate, increased by just 25,000 on the month. Workers holding full-time jobs soared by 949,000 on the month, while those hold part-time jobs slumped by 914,000.

The report comes two days after the Fed again voted to hold borrowing costs steady, keeping its benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%, the highest in more than 20 years.

Following the decision, Chair Jerome Powell characterized the jobs market as “strong” but noted that inflation is “too high” and this year’s economic data has indicated “a lack of further progress” in getting inflation back to the Fed’s 2% target.

But market action shifted after the jobs report indicated an easing labor market and softer wage increases. Traders priced in a strong chance of two interest rate cuts by the end of 2024, with the first reduction expected to come in September, according to CME Group data.

“This is the jobs report the Fed would have scripted,” said Seema Shah, chief global strategist at Principal Asset Management. “The first downside payrolls surprise in several months, as well as the dip in average hourly earnings growth, will bring the rate cutting dialogue back into the market and perhaps explains why Powell was able to be dovish on Wednesday.”

Though inflation has come well off its highs in mid-2022, it is still considerably above the central bank’s comfort zone. Most reports this year have shown inflation around 3% annually; the Fed’s own preferred measure, the core personal consumption expenditures price index, most recently was at 2.8%.

Higher prices have been putting upward pressure on wages, part of an inflation picture that has kept the Fed on the sidelines despite widespread market expectations that the central bank would be cutting interest rates aggressively this year.

Most Fed officials in fact had been mentioning the likelihood of reductions in their public comments. However, Powell at his post-meeting news conference Wednesday made no mention of the likelihood that rates would be lowered at some point this year, as he had in the past.

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Economics

Immigrant workers are helping boost the U.S. labor market

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Help Wanted: Immigrants fueling U.S. workforce

The strong jobs market has been bolstered post-pandemic by strength in the immigrant workforce in America. And as Americans age out of the labor force and birth rates remain low, economists and the Federal Reserve are touting the importance of immigrant workers for overall future economic growth.

Immigrant workers made up 18.6% of the workforce last year, a new record, according to Bureau of Labor Statistics data. Workers are taking open positions in agriculture, technology and health care, fields where labor supply has been a challenge for those looking to hire.

Despite the U.S. adding fewer-than-expected jobs in April, the labor force participation rate for foreign-born workers ticked up slightly, to 66%.

“We don’t have enough workers participating in the labor force and our birth rate has dropped down 2% last year from 2022 to 2023. … These folks are not taking jobs. They are helping to bolster and helping us build back — they’re adding needed workers to the labor force,” said Jennie Murray, CEO of the National Immigration Forum, a nonpartisan nonprofit advocacy organization. 

The influx of immigrant workers is also a projected boost to U.S. output, and is expected to grow gross domestic product over the next decade by $7 trillion, Congressional Budget Office Director Phillip Swagel noted in a February statement accompanying the 2024-2034 CBO outlook.

“The labor force in 2033 is larger by 5.2 million people, mostly because of higher net immigration. As a result of those changes in the labor force, we estimate that, from 2023 to 2034, GDP will be greater by about $7 trillion and revenues will be greater by about $1 trillion than they would have been otherwise. We are continuing to assess the implications of immigration for revenues and spending,” Swagel wrote.

‘Huge competition’

Goodwin Living, a nonprofit faith-based elder-care facility in Northern Virginia that cares for 2,500 adults day to day, is heavily reliant on immigrant workers. Some 40% of its 1,200 workers are foreign-born, representing 65 countries, according to CEO Rob Liebreich, and more workers will be needed to fill increasing gaps as Americans age and need assistance. 

“About 70% of 65-year-olds are expected to need long-term care in the future. We need a lot of hands to support those needs,” Liebreich told CNBC. “Right now, one of the best ways that we see to find that is through people coming from other countries, our global talent, and there’s a huge competition for them.”

In 2018, Goodwin launched a citizenship program, which provides financial resources, mentorship and tutoring for workers looking to obtain U.S. citizenship. So far, 160 workers and 25 of their family members have either obtained citizenship or are in the process of doing so through Goodwin. 

Wilner Vialer, 35, began working at Goodwin four years ago and serves as an environmental services team lead, setting up and cleaning rooms. Vialer, who came to the U.S. 13 years ago from Haiti, lost his job during the pandemic and was given an opportunity at Goodwin because his mother had been employed at the facility.

He applied for U.S. citizenship before getting his current job, but after he worked there for six months, the Goodwin Living Foundation covered his application fee of $725, the nonprofit said. Vialer became a U.S. citizen in 2021, and his 15-year-old daughter received a citizenship grant and became a U.S. citizen in 2023.

Vialer’s hope is to have his wife join the family from Haiti, as they have been separated for six years.  

“This program is a good opportunity,” Vialer said. “They help me, I have a family back home. … This job really [does] support me when I get my paycheck to help them back home.”

Workers are not required to stay with Goodwin after becoming U.S. citizens, but those who do stay are there 20% longer than those who do not participate in the program, Liebreich said. Speeding up the path to citizenship is key to remaining competitive in a global economy, he added.

“If we want to attract and retain this global workforce, which we desperately need, we need to make the process a lot easier,” Liebreich said.

Looking ahead to November, immigration will be a hot topic on the presidential campaign trail and for voters. Both President Joe Biden and former President Donald Trump have made trips to the southern border in recent months to address the large number of migrants entering the country.

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