Monday Quick Hits: Robots, Water, and Keystone

 

robot-1

“So I says to Mabel, I says…”

 

Did everyone have a good weekend? I had a great weekend. Lots of family, and lots of toast to Trump’s and Ryan’s failure to devastate the lives of millions of people. But this victory is, I think, just a pause. The battle will be to pressure Republicans, who seem to be a bit nervous about ruining the lives of their constituents, to make positive changes to the ACA, rather than repeal it.

Admittedly, they’re in a bind. The Times reported some anecdotes about people in GOP districts shocked that their reps would even think about such a thing, and might not vote Republican again. But then, there are also lots of GOP voters who, having been told that Obamacare was basically the forward thrust of creeping Bolshevism, are mad that it wasn’t repealed. So they are caught in a dilemma, namely: how do we do the things we’ve been saying we were going to do now that people have learned exactly what it is?

So now the question for Democrats is: how much should they work with Republicans? They are, thankfully, not eager to make some kind of “grand bargain” in order to help out the Republicans. The goal should be to fix Obamacare, working where you can to lower costs and make sure that insurance companies stay in. The talk of the “death spiral”, always exaggerated, is made possible by the threat of repeal. With that out of the way, for now at least, it could be possible to woo nervous Republicans to fix the bill at the margins, essentially working around Paul Ryan. That’s why the continued pressure from the outside is the only way to heighten their fear, and maybe force their hand to do the right and sensible thing and fix Obamacare.

Or, you could be like the President, who seems eager to watch the whole thing spiral out of control.

The “do not worry” is an especially nice touch.  He’s got a plan!

-Re/Code had a little story today about how PwC estimates, offhand, that the US could lose 40% of its jobs over the next 15 years thanks to automation. While there would of course be jobs created by automation (engineer, repair, etc) most of these will be high-skill jobs for people with advanced education. This is more than an unemployment trend; even if PwC’s numbers aren’t strictly accurate, this is economic devastation. This is something that can fundamentally alter society.

Massive unemployment of that sort needs to be ameliorated with something like a Universal Basic Income, or, failing that, an effort to create new work around infrastructure, tourism, or more. But there needs to be a collective effort grouped around the ideas that 1) the common good actually exists; and 2) that self-government is a good thing.

This isn’t something private markets can fix alone; indeed, it is the private market that will be at fault. There needs to be collective action to help the less educated and more vulnerable people in the new economy–the same ones who have been hurt for decades by market forces. That many of these are your stereotypical Trump voters (though they will be joined by millions of white collar types as well) represents an opportunity to convince them that the government is not the enemy, and that, in fact, this kind of intervention is the heart of the American experiment.

Of course, we’re debating whether or not it is ok if people just, you know, die because they don’t have employer-based insurance, so consensus on this seems a long way off.

-But we do have an answer on Keystone! That answer, of course, is “yes”. Trump signed off on Keystone on Friday, saying in a signing ceremony that:

It’s a great day for American jobs and a historic moment for North American and energy independence.  This announcement is part of a new era of American energy policy that will lower costs for American families — and very significantly — reduce our dependence on foreign oil, and create thousands of jobs right here in America.

It’s important to note, in the interest of being strictly accurate, that none of this is true. And it is just weird to talk about reducing “our dependence on foreign oil” right before you introduce the President of TransCanada, above and beyond the fact that this isn’t how the oil markets work. The sludge pumped over the largest underground aquifer isn’t going to be shuttled to your car. It goes into the global markets. I honestly don’t know if Trump understands this. I also wonder how he would reconcile the “lower costs” with the fact that, while Keystone was blocked, gas prices plummeted.

It is also good to note that this isn’t a done deal. As the TransCanada President reminded the United States President, they face resistance and lawsuits in Nebraska, where people don’t want a Canadian pipeline bringing dangerous material across their lands and into their water. That led to this exchange.

Trump: So we put a lot of people to work, a lot of great workers to work, and they did appreciate it.  And they appreciated it, Russ, very much at the polls, as you probably noticed.  And so we’re very happy about it.

So the bottom line — Keystone finished.  They’re going to start construction when?

MR. GIRLING:  Well, we’ve got some work to do in Nebraska to get our permits there —

THE PRESIDENT:  Nebraska.

MR. GIRLING:  — so we’re looking forward to working through that local —

THE PRESIDENT:  I’ll call Nebraska.  (Laughter.)  You know why?  Nebraska has a great governor.  They have a great governor.

MR. GIRLING:  We’ve been working there for some time, and I do believe that we’ll get through that process.  But obviously have to engage with local landowners, communities.  So we’ll be reaching out to those over the coming months to get the other necessary permits that we need, and then we’d look forward to start construction.

THE PRESIDENT:  Okay.  I’m sure Nebraska will be good.  Peter is a fantastic governor who’s done a great job, and I’ll call him today.

Remember that the head of an oil company is talking about working with local communities and landowners, and the President of the US is saying he’ll call the governor to get it done. That’s a true populist man of the people right there.