Category: society

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Own Production

The 21st century has seen many innovations. Solar energy has been around for at least 3 decades now, but the wide spread application and adoption of it through consumers has taken quite a while. Nowadays you can buy a reasonably priced solar panel in your local shop selling gardening tools and home appliances. Solar panels have moved from a niche product to become an ordinary home enhancement product. Previously, the production of energy was highly regulated and restricted to business activities. Hence as producer and consumer of your own energy you became a “prosumer” of energy. Just refrain from selling the energy to your neighbors and you will be happy monitoring your own energy production and your energy consumption throughout the day as well. Suddenly, you might make a few behavioral adjustments to your daily routine. Throughout the day when the sun is shining bright you start to think of what kind of energy consumption you might want to switch on at the time. Charging mobile phones, cooking meals and washing are the obvious candidates that do the trick. Charging a battery of a bicycle(s) is also a good idea. The excursion of the evening or cycling to work the next few days is feasible with this as well. There is a slight danger to check the energy production frequently to optimize the return on your investment. In this case it might be expedient to invest also in a battery to store the energy  for a longer time. No stress for consuming your nuggets, but initial investment costs are substantially higher, albeit prices for batteries have come down significantly in the last few months. “Prosit prosumers”.

 

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Sun power

Statistics of hours of sunshine in Germany and many European countries show an extraordinary amount of sunny days in March 2025 compared to previous years. This opens up a window of opportunity to produce electricity already in a month previously less likely to yield a lot of energy. With more likely 8 months of decent electricity production the efficiency of investments in solar energy reach break even points earlier. Time to think of expanding the share of renewable energy even further. The cost effectiveness is improving in rather unpredictable ways. Economists, of course, consider opportunity costs in this case the alternative to use oil or gas despite the higher levels of CO2 emissions. As the prices are currently lower as well, without an easily predictable trend, solar alternatives are a valid option.

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Retirement Plans

There are debates about the best organization of retirement. The major fault lines lie between public pension systems and systems that are built based on mainly private provision. Retirement plans in either system are subject to constraints. The recent stock market turbulence has increased the amount of uncertainty people face who invested in 401K plans in the US. Some had to take an unannounced hit to their retirement savings due to the loss after Trump’s back and forth policies on tariffs (OECD Pension Outlook). High volatility of stock market prices creates an additional constraint that you are less inclined to retire when your retirement investments have overall a reduced value. You are a bit at the mercy of capital markets even in your retirement decision, irrespective of the difficulty to predict what your retirement funds will yield as returns. Quite an important lesson to keep in mind when comparing retirement systems in OECD countries. It has been all too easy to blame public pension systems for maybe lower short term interests on pension savings. Being subject to an American president concerning your retirement plans is probably not what many countries would like to have. Trump’s choices on tariffs may have consequences we did not expect to affect us so directly.

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Tariffs Trade Deficits

US Tariffs target the US trade deficits across the globe. For a start on the topic it is helpful to take a look at the data. The US bureau of census publishes this time series regularly. Currently, you can compare monthly or annual data across countries from 1985 to 2025. The worsening of the trade balance is obvious just looking into some examples like trade with the EU, China, Japan, South Korea or Switzerland. we might calculate some rough indicators of trade deficits of the US with countries by the size of the country, which would make Switzerland look really bad relative to many much more populous countries. This probably explains why Switzerland is threatened by higher tariffs than the EU. However, this hints towards the “hidden” agenda of tariffs on countries. The major targets are multinational companies that produce in countries outside the US and particularly in those with low corporate taxes, like Ireland and Switzerland. Importing products from such countries worsened the US trade balance over decades.

Another factor to study more precisely is the sectoral pattern driving the trade deficits with countries. Exports in for example health-related products have soared due to Covid-19 pandemic starting in 2019. Where did the US buy face masks, ventilators, medicines and pharmaceuticals?  These countries will now also be penalized by higher tariffs. The tariffs topic is a complex interconnected business issue, which is not solved by blunt measures. The real danger is that with each month trust in US will erode further. For decades this has been an underestimated currency of international business. Eroding trust is likely to be the major fallout of the tariff and trade deficit nexus. It takes decades to build, but can be destroyed within a few days or weeks. (Image: Mont des arts Brussels February 2024, celebration of surrealism).

 

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Deus DEI

In Latin the declination of deus = god starts with the genitive form “dei”. In the world of universities and labor markets the abbreviation “DEI” stands for diversity, equity and inclusion. These 3 topics have ensured for years that a university campus looks a bit more like society at large, even if biased towards younger generations. The MAGA saga of the USA in 2025 starts to turn the clock back on hard to accomplish advances in DEI-hiring and promotion. This likely to reduce the number of international students on US campuses and will make campuses look WEIRD again. Moreover, lots of talented students will seek DEI campuses in other countries to avoid discriminatory hiring practices and arbitrary risk of visa denial.  Europe is likely to benefit from this kind of brain drain and skill shortages might be substantially reduced due to such unprecedented shifts in US policies. The cuts of billions of grants to renowned universities for political reasons will leave a yawning gap of talent in the US in a few years time, the latest. Early movers will move very quickly to anticipate the exodus of talent.  It is puzzling to watch how quickly years of DEI policies might be undone with thousands of people and projects at a loss. Scholars of American history are reminded of the McCarthy era of political prosecution or the dismal period for science under the Nazi-rule in Germany. Americans seem to get much worse and extreme policies than they thought they voted for. “Deus Dei” also means “god of god” and in the current American political context the judgement of a god by another god has maybe a historical meaning. In the table of the Estonian town hall in Tallinn the inscription alerts rulers to beware of being judged as well. Sounds like a timely reminder to overly ambitious politicians.

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Warming consequences

The live of honey bees is rather busy and well organized. Global warming necessitates new risks and new opportunities for honey bees. The flowering season starts earlier in Europe and bees start earlier ro their collection of nectar and their service of pollination to other flowers. In early April 2025 in France near Paris we observe wild bees already in their daily routine. However, the risk of cold nights is still there, albeit those building their homes below the surface are a bit less at risk during a frosty night. Seeking a clever shelter is a good strategy for survival particularly at times of global warming. Some kinds of wild bees seem to sense this already changing homes from one season to next one. Humans remain their toughest enemies as they restrict their choices quite severely. Man-made pollution and herbicides are beyond bees’ control and cause havoc in the ecosystem of bees. Apiculture is an interesting science also for social scientists as this forerunner species of the matriarchy has evolved into a well-organized productive society. They are a bit harsh to each other and communication is rather unidirectional, but an interesting social cosmos of its own kind.

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Journalists Scientists

In the theories of democracy journalism has entered the stage mainly in form of a controlling mechanism that is part of an extended checks and balances system of democracy. Independent journalists serve as effective multipliers and critical commentators which are an essential element of a well functioning democratic society. Social media’s ability to reach large audiences without adherence to independent journalists’ principles pose challenges to the way journalists are perceived by the public. The border between journalism and influencer marketing of products and opinions is continuously under pressure. Voices not heard,  underrepresented or those with few resources for large scale communication face difficulties to communicate their views in a market flooded with information and marketing. 

Another challenge to journalists is the fast evolution of scientific research and knowledge which at times derives from complicated theoretical and/or empirical methods. Hence, the relationship between journalistic reporting and scientific rigor and need for details in reporting are hard to reconcile. This necessitates a continuous dialogue between scientists and journalists to be aware of potentials and limitations to the co-evolution of the two disciplines. In order to avoid a self-referential subset in each discipline, the demonstration of successful cooperation between the two disciplines reveals the complementary role in many real-world instances. Investigative journalists often rely on additional scientific expertise and scientists who uncover manipulations of any sort in their work have to cooperate to inform society about the topics. As with global warming or PFAS risks scientists get drawn more and more into the checks and balances role within democracies. Therefore in addition to the separation of powers claimed in the political literature of the enlightenment (executive, parliamentary and judicial) we added already the 4th one of journalism and should include (5th) independent scientific research and reporting into the essential principles of well functioning democracies. The conference at the BNF in Paris on the 28th of March has raised these timely questions in the best tradition of the ongoing process of enlightenment.

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Tariffs trumped

Economists are used to differentiate between micro-and macro-level effects of tariffs. For each buyer of a car, import tariffs raise expectations about prices for a product. Many consumers will then decide to buy lower quality at the same price or postpone buying a new or replacement product for some time. For cars it might mean that many people will then decide to buy rather later than sooner. If thousands of people do so, the market will fall into recession overall and it will take months or years to come back to the same or a higher level. A political economy perspective has taught us that eager politicians are in favor of a short recession immediately after an election which increases the chances of re-election once the economy gets back to normal or catches up on lost growth. 

The US under Trump apparently gambles with such an economic rationale. Short term inflation is already rising, interest rates stay high before the upheaval caused by tariffs starts to settle. 

There is, however, another alternative mechanism at work as well. Thorstein Veblen long ago hinted towards what is not called in economics the Veblen effect. Some fancy cars for example can raise prices well above others because of their cleaving image. Just because they get even more expensive the buyers of such products gain additional attention as part of a social class which does not have to care much about their additional spending. The consequences of tariffs will most likely widen the gap between those saving dearly and those able to splash out cash despite increased tariffs. The most felt consequences, therefore, will be on social inequality within the US (compare WSJ 2025-4-24 A2 by Juliet Chung, “Richest of Rich Gain §1 Trillion”).

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Design skills

The is a huge B2C or C2B market in connection with home design and adaptations. Nowadays people are inspired by instagram, pinterest, YouTube and TikTok. Additionally, many play around with Apps to create their own images of how they would like to arrange or rearrange their home. Some have taken first steps to include measurements of their home in the design. The compatibility with professional software of the construction sector, however, is a drawback that delays or leads people to go to enterprises that take into account the prior efforts of young lay designers. It is a little bit like an own contribution in home building quite popular among new home builders to alleviate the upfront cash needed for first home acquisition. The younger generation could offer some of their “digital native” skills to bridge the gap in construction and home design. Of course, reworking and precise measurements on the location will still be required as construction has a lot of legal liability issues involved. Cooperation is a form of burden sharing to advance faster and/or with lower costs.

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Great Petit Palais

The Petit Palais in Paris was built together with the Grand Palais for the World Exhibition in 1900. The great architecture of both buildings is complemented by great interiors. The Petit Palais has also been the home of donations to, as well as commissions by, the city of Paris since 1870. This means that a sizable collection of sculptures and paintings has accumulated since then. In spring 2025 the visit of these collections is free of charge and gives honor to the donors and artists exhibited. Over time the collections spread more than 2500 years of art history similar to the exhibition at the BNF gallery Mansard. In the 21st century the exhibition of a piece of art, which stems from the North of Syria reminds us that art is a treasure that can last even if the civilization has been lost or at interrupted for many centuries. This is an important aspect of taking a long term perspective on international politics and history. The breadth of the collection allows a stroll through art history in a splendid setting. Romanticism and impressionism receive a little bit of attention, but the architecture of the Petit Palais invites you to delve into lesser known territory. This, probably is the specific merit of the joint presentation of otherwise necessarily eclectic collections of donors across centuries.

(Image: Anse de chaudron Syrie du Nord 700 years before our time, Petit Palais Paris).