After the 2008 Financial Crisis, the Economy Was Fracked Up

After the 2008 Financial Crisis, the Economy Was Fracked Up

The American Recovery and Reinvestment Act injected almost nine hundred billion dollars into the U.S. economy to help the nation recover from the 2008 financial crisis. Ninety billion dollars went to clean energy, with the intention of jump-starting a new “green economy” to replace aging fossil-fuel technologies. Instead, the bill may have done the opposite. Low interest rates, which made borrowing easier, encouraged a flood of financing for the young fracking industry, which used novel chemical techniques to extract gas and oil. Fracking boomed, and made the U.S. the leading producer of oil and gas by some estimates. The financial journalist Bethany McLean and the investor and hedge-fund manager Jim Chanos tell The New Yorker’s Eliza Griswold that something in the fracking math doesn’t add up. If interest rates rise, reducing the flow of cheap capital, they believe that the industry will collapse.

Then, the former Treasury Secretary Hank Paulson tells Adam Davidson what went wrong in Obama’s policy. Subsidies for specific industries, like solar, can’t change the market significantly enough, Paulson says. In his view—one shared by a growing consensus of economists—we need to correctly assess the costs of carbon emissions to society, and charge those costs to the emissions’ producers: a carbon tax. Then, with a more level playing field, the market can pick the best source of energy.

Jaksot(1020)

Zadie Smith on Politics, Turning Fifty, and Mind Control

Zadie Smith on Politics, Turning Fifty, and Mind Control

Since Zadie Smith published her début novel, “White Teeth,” twenty-five years ago, she has been a bold and original voice in literature. But those who aren’t familiar with Smith’s work outside of fict...

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Richard Linklater on His Two New Films, “Blue Moon” and “Nouvelle Vague”

Richard Linklater on His Two New Films, “Blue Moon” and “Nouvelle Vague”

Richard Linklater is one of the most admired directors working today, and yet moviegoers may admire him for very different things. There are early comedies such as “Slacker” and “Dazed and Confused”; ...

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How the Trump Administration Made Higher Education a Target

How the Trump Administration Made Higher Education a Target

The swiftness and severity with which the Trump Administration has tried to impose its will on higher education came as a shock to many, not least university presidents and faculties from Harvard to U...

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John Carpenter Picks Three Favorite Film Scores

John Carpenter Picks Three Favorite Film Scores

The filmmaker John Carpenter has a whole shelf of cult classics: “They Live,” “The Thing,” “Escape from New York,” “Halloween,” and so many more. And while he hasn’t directed a new movie in more than ...

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Zohran Mamdani Says He's Ready for Donald Trump

Zohran Mamdani Says He's Ready for Donald Trump

Next month, New York City may elect as its next mayor a man who was pretty much unknown to the broader public a year ago. Zohran Mamdan, who is currently thirty-three years old and a member of the Sta...

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How Lionel Richie Mastered the Love Song

How Lionel Richie Mastered the Love Song

Lionel Richie has been making music for fifty years. He has sold more than a hundred million albums, his hits too numerous to list, and he has endeared himself to younger generations as a judge on “Am...

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A Conservative Professor on How to Fix Campus Culture

A Conservative Professor on How to Fix Campus Culture

Robert P. George is not a passive observer of the proverbial culture wars; he’s been a very active participant. As a Catholic legal scholar and philosopher at Princeton University, he was an influenti...

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Jimmy Kimmel and the Power of Public Pressure

Jimmy Kimmel and the Power of Public Pressure

The Political Scene’s Washington Roundtable—the staff writers Jane Mayer, Susan Glasser, and Evan Osnos—discuss how, in the wake of the reinstatement of Jimmy Kimmel’s show, public resistance has a ch...

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