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.

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Ezra Klein’s Big-Tent Vision of the Democratic Party

Ezra Klein’s Big-Tent Vision of the Democratic Party

The author and podcaster Ezra Klein may be only forty-one years old, but he’s been part of the political-culture conversation for a long time. He was a blogger, then a Washington Post columnist and ed...

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The Cartoonist Liana Finck Picks Three Favorite Children’s Books

The Cartoonist Liana Finck Picks Three Favorite Children’s Books

Liana Finck is a cartoonist and an illustrator who has contributed to The New Yorker since 2015. She is the author of several books, including the graphic memoir “Passing for Human.” Like many of her ...

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Is The 2026 Election Already in Danger?

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Kevin Young is the poetry editor for The New Yorker, and the author of many books of his own poetry. His newest work, “Night Watch,” focusses on death, while also drawing upon his wide view of history...

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How the “Dangerous Gimmick” of the Two-State Solution Ended in Disaster

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For decades, the United States backed efforts to achieve a two-state solution—in which Israel would exist side by side with the Palestinian state, with both states recognizing each other’s claim to co...

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Jeff Tweedy on His New Triple Album, “Twilight Override”

Jeff Tweedy on His New Triple Album, “Twilight Override”

Jeff Tweedy is best known as the front man of Wilco, the rock band he formed in Chicago in 1994. In recent years, he’s been working more often as a solo artist, putting out records under his own name ...

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Anna Wintour Embraces a New Era at Vogue

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Speculation, analysis, and commentary circulated all summer, after the announcement, in June, that Anna Wintour would step back from her role as the editor-in-chief of American Vogue. This changing of...

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Fred Armisen on “100 Sound Effects”

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The comedian Fred Armisen has a thing for sound. He’s a former punk musician and a master of accents, and he is now releasing a new album of sound effects. “I was lamenting that there aren’t sound-eff...

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