Recommended Weekend Reads
February 3-5, 2023
We thought you might find the following useful reading. Let us know what you think and if you or a colleague want to be added to our distribution list. Have a great weekend.
· “More Cite Government as Top US Problem; Inflation Ranks Second” Gallup
In Gallup’s latest poll, more Americans name the government as the nation’s problem. The government ranks as the top problem for both Republicans and Republican-leaning independents (24%) and Democrats and Democratic-leaning independents (18%).
· “Putin’s Oil Makes a Stop Off Spain en Route to China” Bloomberg Opinion
Sanctions are making it riskier and pricier for the Kremlin’s crude to get to Asia, but the EU is still a transit hub. via the town of Ceuta – a tiny Spanish enclave that sticks out of Morocco into the Mediterranean Sea like a thumb. Ceuta is just in the right place: inside the Mediterranean Sea, it’s sheltered from the stormy winds and winter swell of the North Atlantic.
Source: Bloomberg
· “What are Large Banks Doing About Climate Change?” The US Federal Reserve Board International Finance Discussion Papers
This new paper by Federal Reserve staff looks at 30 of the biggest banks in the world and their commitments so far to finance green projects. So far, they have collectively put in $1.2 trillion a year, which will bring them $33.6 trillion by 2050. But, the paper argues, that will only be approximately 25 percent of what is needed to reach net zero emission goals.
Chart of the Week
Hey Buddy, Looking for Some Eggs?: We have been hearing a lot lately about the soaring price of eggs, spiking more than 60 percent in recent months (happily, I live on a farm, and our chickens have been quite productive). The reason for the price surge? Avian flu outbreaks have decimated chickens across the US. As a result, egg smuggling from Mexico is becoming a big business. Bloomberg examined the situation and learned seizures of smuggled eggs have surged more than 300 percent, with many of the seizures being only a few 30 egg flats. Here is their chart showing what the hottest new smuggling business in America looks like and where eggactly (sorry – couldn’t help myself) it is happening the most:
A Good Read…
In the Nation’s Service: The Life and Times of George P. Shulz
George Schultz was a remarkable American by any standard. In his new, highly illuminating biography of Schulz, former New York Times reporter Philip Taubman reminds us of the extraordinary life Schulz lived and the critical role he played in transforming the country and the world.
Schulz’s resume was long and distinguished (an understatement if there ever was one). The son of a New York Stock Exchange executive, Schulz was a Marine Corps officer in the Pacific theater during World War II. When he returned home, he earned Ph.D. in industrial economics at MIT (studying under Robert Samuelson) and then taught at MIT. He then stepped into public service in 1955 to serve at the Council of Economic Advisors under President Dwight Eisenhower.
He then went on to become a professor and then dean of the Booth School of Business at the University of Chicago. He returned to Washington in 1969 to become Secretary of Labor under President Richard Nixon, then Director of the newly created Office of Management and Budget, and then Secretary of Treasury. Leaving public service, he joined the Bechtel Group, where he became its President and a member of its board of directors. He then returned to public service in 1982 when President Ronald Reagan asked him to serve as Secretary of State.
What Taubman sheds considerable light on is Schulz’s considerable efforts – and success – at integrating public schools in the South. Historians tend to focus on Schulz’s herculean efforts under Reagan to bring down the Iron Curtain and skip over Schulz’s championing of civil rights. He also made considerable inroads with Big Labor, building a strong working relationship with the legendary AFL-CIO President George Meany.
On a personal note, when I was a very young staffer in the Reagan White House, Schultz was seen as legendary even then within the Administration. I would occasionally see him in the hallways, and, despite the tremendous sense of gravitas that naturally swirled around him as he headed into a National Security Council meeting or over to the Oval Office, he always had a smile and a hello for us juniors. That was a really big deal for us.
This is a well-deserved and well-written biography and a great read for anyone with an interest in economics, foreign policy, civil rights, and the history of the last 70 years. It is also a commentary on how the “best and the brightest” like Schulz are rarely seen in Washington anymore. Hopefully, this book will inspire more men and women of Schulz’s caliber to serve.