Articles by: admin

Inside Voices: Can’t Find Workers? Ask Jeff Korzenik to Help.

The unemployment rate is close to double what it was when we first learned of Jeff Korzenik’s work, but now, as then, employers carp about not being able to find workers. Jeff has a solution, and today we are fortunate to have roped him into an interview. Jeff is chief investment strategist at Fifth Third Bank in Chicago, and an expert and tireless advocate of getting those who have spent time behind bars into work-world.

Jeff’s book, Untapped Talent is now out, and highly recommended. An educated public is part of the re-entrance process, and we invite you to reach out to us or Jeff if you have questions or comments.

A practical man, Jeff opens his book with a note to those presently incarcerated, and if you donate books to your local prison, you might consider including a copy of his book in your next drop-off. (And, no, we don’t get a kick-back.)

Q. Thanks for taking the time to speak with us, Jeff. Let’s open with words. They matter. Second chancer, returning citizen, supervised persons, sometimes a refreshing ex-con. Could you say a few words about language & labels as they affect your work?

A. I agree with the premise that people-centered language is important. It is really wrong that someone with a felony conviction is termed a “felon” forever. I am, however, wary of using language in a scolding way as is sometimes done. It’s also worth noting that some of these terms don’t capture the entirety of the population that has been impacted by the criminal justice system – for example, only about half of the people convicted of felonies even had to serve an actual prison sentence, and people who have been arrested but found innocent can still face barriers. In the book I do have a section that touches very lightly on the language issue, and I most commonly use the broad phrase, “people with records.”

Q. I know a while back, while most of us weren’t exactly heading for the airport, you told me you were taking your first flight since lock-down so you could make a connection between a potential employee and employer, I think that’s it. That made me wonder what your days on the road are like.

A. In 2019 I did about 140 flight segments. The first pandemic-period flight I did was visiting with JBM Packaging, the company that’s the subject of the second-chance employer case study in the book. Although I could have done everything remotely, I felt I owed it to my readers to dive in as deeply as I could. I’ve been including that business for years in my talks and have worked with their visionary CEO many times, but I needed to get there in person. I now fly once or twice a month. The experience of flying has improved dramatically since my first trip, now that there’s very good adherence to mask protocols in airports and flying. Flying and travel is much less enjoyable during this period, with many amenities not open, the discomfort of masks on long plane rides, etc, but it has been doable.

Q. As long as I have followed your work you have taken the pragmatic approach, documenting that rejecting job applicants only because they have prison records makes no sense in a tightening labor market, and that employers who take on second chancers find they have loyal workers who are generally more productive than general hires.

That was when the unemployment rate was 3.5%. It’s close to twice that now, but that’s not a deal-breaker for your approach. Even with another 10 million unemployed persons, we’re hearing that employers are having trouble finding workers, before it was qualifications, now it’s UI benefits beating out what they are willing or able to pay.

It may be heartlessly practical to say that since it’s widely known that people with prison records for even minor offenses earn at least 10% less than those with similar skill sets and no records, but isn’t there a real opportunity here, especially with an influx of early releases to slow the spread of Covid in crowded prisons?

A. I emphasize in my work that this is business, not charity. People who have hit bottom and bounced back, often against extraordinary odds, display real character. The term most commonly associated with second chance hires is “grit.” If anything, the pandemic has highlighted the advantage of having a workforce of engaged and loyal employees. The challenge is that there is a right way to hire people with a criminal records and numerous wrong ways. The right way requires processes that identify who is ready to rebuild their lives, and provide the support systems needed. It is an investment – one with a very good payoff in low turnover expenses and productive employees, but an employer needs to understand the model that works. Support systems need not cost the employer anything, using government services, nonprofits or simply good internal mentoring, but the need for some level of accommodation is very real.

With unemployment still elevated, it is difficult to get companies to make any kind of investment, but those who had already established a talent pipeline from this population are sticking with it. We term the economic period of the pandemic as The Great Disruption, and this includes labor market disruptions with skill and geographic mismatches pointing to less abundance in available workers. For those industries hiring, there are already labor shortages. I’ve been contacted by two separate manufacturing companies in the last few weeks looking to explore second chance programs because they can’t find enough qualified traditional workers.

Q. I understand we need a national database for employers committed to hiring second chancers. Any word on how that’s going?

A. There are some initiatives that I know about but are not yet public, but I think the business community is about to assume a great leadership role in fixing this societal issue. Employment is foundational to rehabilitation, so this is something that simply cannot improve without business involvement. One of the challenges to this is that being a second chance employer is not always perceived as a positive by the public and consumers; businesses are wary of being identified as a company that hires people with a record, and that holds back corporate executives from even discussing the issue. I was trying to speak to an employer in Florida about his successful second chance hiring program, and his HR department convinced him not to meet with me.

Q. John Hopkins tracked 500 working parolees for three years and uncovered no “problematic terminations,” but there is also reluctance among some employers to hire those with prison records based on safety or liability concerns. The Society for Resource Management reports that eighty-two percent of managers said their ex-offender hires were at least as successful as their average hires, yet fourteen percent of managers say they would not hire an “ex-offender.”

We’re reading that many of the programs, like anger-management and high-school equivalency, designed to facilitate the transition from prison to work, are being cut in the pandemic.

Any thoughts on how employers themselves could put practices in place that would replace those programs In order to bring needed workers onboard?

A. Those program cuts are primarily due to health considerations, not budget, so this too shall pass. State prison authorities are increasingly working to build out these kinds of supportive programs, so I am actually quite hopeful. Again, though, this will work much better if employers see people behind bars as their future workforce and lobby for better in-prison programming. Many nonprofits have done a great job filling the void and some private sector employers have also shown exemplary leadership.

Q, Which facts do you find the best when helping potential employers get over their liability, and safety, fears?

A. I find it is often a matter of getting beyond the generalizations and helping employers think of people with records as individuals. In the book, I suggest that one way to do this is by using the technique of reductio ad absurdum: “So you’re saying every single person with a record cannot be a viable employee?” This shifts the conversation toward how you can make selections that avoid the risks. In terms of hard facts, I think it is very telling that fewer than half of the people with felony convictions were convicted of crimes of such threat to public safety that a prison term was required.

Q. Can you give some examples of how the private, public and not-for-profit sectors work together to bring returning citizens into the labor pool?

A. Sure – Michigan has a number of correctional facilities that include a Vocational Village, a training facility for residents that allow residents to earn industry-recognized credentials in carpentry, masonry, auto repair and other trades. DTE Corporation recently partners with the Michigan Department of Corrections to get one of these facilities to train for a specific need: tree trimmers. While jobs won’t be guaranteed, it creates a talent pipeline that addresses an important shortage for the company. The Atlanta Transit Authority changed a bus route to accommodate employers of second chance employer CKS Packaging.

Even more common are support programs offered by nonprofits. Nevada’s Hope for Prisoners offers 18 months of post-incarceration mentoring. Minnesota’s The Redemption Project starts employer mentoring six months before release from prison. Many nonprofits partner with employers to address housing or transportation needs.

Q. Many are taking the pandemic pause as an opportunity to rethink their own prejudices, and that gives us an opportunity to tie-in how underlying racism makes it especially hard for Black re-entrants to find a job. For example, Harvard political scientist Devah Pager* sent participants in her experiment out on job interviews, and found that whites with supposed felony records were more likely to get job offers than blacks without: black men with records had call-back rates of 5%, and 14% without records, but white men with records had rates of 17%, and 34% without. She also found that, when later audited, people who said they would have no trouble hiring someone with prison time were as unlikely to make the hire as those who fessed up they would have an issue. So much for self-knowledge. How have you experienced these prejudices in your work?

A. There are a lot of assumptions people make about people with records, and race can absolutely be a component of those prejudices. It is really important to recognize the tragic and ugly truth that the aftermath of our criminal justice system has left one in three Black men in America with a felony conviction. Despite all the pledges of diversity hiring, unless this is accompanied with a second chance initiative, our workforce will never reflect our population. I have a chapter on the book on the process of reentry, reframing the discussion to show that those who have exited incarceration and are viable job applicants have likely overcome a mountain of obstacles, and should be viewed as people of determination and accomplishment. I urge employers to focus on the individual’s journey, and that helps take away some of the inherent biases.

Q. And there’s always enlightened self-interest. McKinsey released work indicating that firms in the top broad diversity quartile as 35% more likely to have higher returns, and those in the bottom quartile statistically less so. Since black second-chancers are facing at least a double hurdle, if you were working with a potential employer, what are the questions you would encourage that person to ask him or herself before interviewing that potential employee?

A. One of the reasons we’ve had such little success is that employers often can’t ask the relevant personal questions, and even if they could, it’s really hard to make an assessment in the fairly short time of a hiring process when candidates have lived lives that are often very alien to the hiring manager. What works best is to create partnerships with people who do get to know and refer potential candidates. Often this is through reentry nonprofits. Sometimes through prison systems or probation/parole officers. A number of companies used temp staffing agencies that give employers a chance to make the assessment over time.

Q. Mount Sinai’s Coming Home Program, whose mission is to help people make the transition from prison or jail to their communities, intentionally hires counselors with records, with the expectation these employees will be open about the fact they have been in jail. Can you add some examples of jobs second chancers would be uniquely qualified to do?

A. There are so many people with records, that this is a talent pool with unlimited possibility, so I don’t like to pigeon hole people with records. I understand the benefits of the Mt. Sinai approach, but I actually think too many highly educated second chancers have no recourse but to find jobs in nonprofits, and need to have traditional private sector jobs. I flip the question and ask what industries would benefit from an employee with the lived experience of so many people. For example, I met the formerly-incarcerated principals of an ad agency in L.A., ConCreates, who argue – I think persuasively – that they can add a really useful perspective to any advertising or marketing campaign.

Q. Recent research on self-stigmatization among soon-to-be-released prisoners caused me to wonder how second-chancers characterize and refer to themselves. Can you relate your experiences listening to those who have been in prison speak of their lives as they exit the system?

A. I have a pretty nontraditional business book from the beginning. The very first section of the book is a two-page “A Note to the Currently Incarcerated” which acknowledges that people who are incarcerated feel a tremendous amount of guilt and feel they are a burden. My message to them is that they are a resource. This is obviously not the core audience for my book, but I thought it was important to write directly to them. Thanks to the generosity of Stephen Smith at Brandywine Investments, 500 of the books are being sent to prisons around the country. That’s actually a very tricky undertaking, but this project is working with Books Inside, an experienced nonprofit. One of the things I had to do to make this happen was work with HarperCollins to “demote” my book from a prestigious hardcover to a paperback since hardcovers typically aren’t allowed in correctional facilities.

Q. There are awesome stories about those took the plunge, even if there were stones in the path. For example, the owner of the cleaning facility who happened to see one of his employees wearing an ankle bracelet, the result of a bank robbery: “I was thinking I should fire him, and now he is one of my best friends.” Do you have a favorite story of your own?

A. My favorite story of witnessing this is the story of JBM Packaging, the subject of the Case Study chapter of my book. The company approached this from a purely business perspective but it has transformed the entire company in very positive ways. In my own life, I started this without knowing a single person who had a felony conviction. My work over that last seven years has formed real friendships with many formerly incarcerated people – they have truly enriched my life, and I am so grateful for their friendship.

Q. On the access to justice side, you’ve made the point that when someone has gone through our correctional system, s/he may then be locked out of that most basic necessity for life, and staying out of prison, a job.

I love how South Carolina AG Alan Wilson turned his prejudice into an evaluation of his own job success. As you know, but our readers may not, he discovered his best campaign volunteer worker had a felony record and, worrying about appearances, decided to fire him. But, apparently a logical man, he thought, “What kind of message would I be sending as the chief law enforcement officer of the state if I’m going to put a scarlet letter on your chest and relegate you to a lifetime prison sentence of being stereotyped and not employable?” Big topic, and maybe a side track, but we seem to have little confidence in the corrective effects of a system we put so much money into. Want to take that on?

A. I moderated a discussion with Republican AG Wilson and the Democrat AG of North Carolina, and both were completely committed to second chances, so constructive change is in the air. The system has been broken, but it is not irreparably broken. I’m actually very hopeful about the future. A big reason the system was broken was because neither the general public nor the business community were very engaged and that has changed.

Q. You may have seen that Erica Groshen, who used to head up the Bureau of Labor Statistics, and co-author Henry Holzer cited getting those with records back into the workforce high on their list of steps we can take to alleviate racial divides in economic status. So I’m just curious, not suggesting a change of plans about good business decisions in hiring practices—but with all the recent talk on inclusion, are words like justice and inclusion coming up more often?

A. Personally, I avoid a lot of those words. They can be too loaded with political viewpoints for me. My observation is that the local machine shop is much more likely to offer a real and supportive opportunity than many a more prestigious local cultural institution. A friend of mine ran an autobody shop in Miami – he looked up from his office one day to find that one of his former employees was back at work; the employee had exited the prison gates after a 5-year term and came directly to the job where he knew he would be welcomed. My friend and his wife would drive him to his Narcotics Anonymous meetings. People like this embrace a different terminology: “giving people a fair shake,” or “don’t judge a man until you’ve walked a mile in his shoes.” That’s the language I find drives real change, not the performative statements.

Q. Here’s an example of good economic sense close to my heart. You have pointed out the irony of our criminal system releasing prisoners into rehab while supporting policies that insure they will fail. Like, barbers who trained in prison and can’t get licenced.

I think I can top that. As you know, Inmate Fire Crews in California are filling a shortage of workers willing to take on that grueling job. But, even though they have learned the skill, and exhibited real heroism, felony convictions prevents them from getting an medical tech license, and they can’t the job. Kind of leaves you speechless.

I know there is talk about making it easily for inmate firefighters to make the transition, but that’s been going on and this is now. What’s your way out of this?

A. The firefighter issue in California was a travesty. I think that problem has finally changed as a result of public recognition, but there are so many of these. Complicating this is the fact that most of these restrictions are codified in state law, so the task is magnified 50-fold. I keep coming back to the fact that the answer has to lie with the business community’s involvement and that must include second-chance hiring. seve

Q, Can you please talk about or rank expunging records, which I think lifts wages and lowers recidivism, banning the box, other policy changes?

A. Expungement is very powerful because it removes the issue of stigma and of liability fears; the reform community tends to underestimate the role that negligent hiring liability fear play in deterring hiring. Reformers often point out that such lawsuits are very rare, to which I always respond, “I have fire insurance for my home.” There are other ways to reduce this barrier, either through direct legislation protecting employers or through ”certificates of rehabilitation,” typically available through petitioning a court. All these approaches should be easier to get – I’m not talking about compromising public safety, but easing the administrative burdens and costs, and yes, broadening their use where evidence suggests safety will not suffer.

There are whole other areas of reform that are very productive – ensuring that criminal justice system minimizes the disruptions to keeping someone employed. The elimination of cash bail is a good example – poverty has kept too many people in pre-trial detention. You still detain those who are a real risk, but too many people are in jail – and unable to go to their jobs — simply because they can’t post bail. Parole and probation should similarly be adjusted to focus mostly on those who are a risk to public safety.

Support for ban-the-box has become a quasi-religious belief for some in the justice community, but the evidence is weak that it does much good when dictated by government. My experience is that employers need a very conscious approach for second chance hiring to work, and ban-the-box does nothing to encourage that. For employers who have put such thoughtful hiring in place, it makes tremendous sense to voluntarily ban-the-box so as not to discourage applicants with records.

Q. If you aren’t in the position to hire anyone, what’s the best way to get involved? Please feel free to name organizations.

A. I get this question a lot, and frankly struggle with an effective answer. As consumers we can show that second chance hiring is a positive for companies by patronizing those that focus on second chance programs. I love the coffee I order from I Have a Bean Coffee ( and the bread from Dave’s Killer Bread, I try to buy some booze from Total Wine, and if I lived in Philadelphia, I’d go out of my way to get groceries from the stores owned by Brown’s Super Stores, but it is hard to know who’s doing what.

Some nonprofits in the reentry/workforce development space have volunteer roles, but people should only do this if they are willing to make a long-term commitment. Many of these nonprofits would benefit from financial support or business acumen on their board. If you work within a large company, I think just raising questions about the hiring, but you have to know what a real second chance program looks like. As citizens, I think we should be advocating for better policies and every municipality/government agency should have at least a second chance intern or apprenticeship program (hardly any do).

All of this works better when the public is educated. There are great podcasts out there – I’m a big fan of my friend Joshua Hoe’s Decarceration Nation Podcast (Decarceration Nation), which focuses heavily on policy. It’s embarrassingly self-serving, but I wrote my book with the thought that the chapters on policy, the demographics of justice-involvement, and the realities or the barriers to reentry, would all be a great place for the interested public to go, not just employers.

* Devah Pager’s early death is an incalculable loss.

Further reading:

Campaign volunteer with felony record:

Charlotte Observer on same.

Hiring Former Offenders as Economic Necessity

Ken Burns documentary on prison team outperforming Harvard in debate.

Education in prison, overall

Education: Recidivism reduced by prison college programs

Education: Less violence

Diversity and enlightened self-interest

Neal Barsky of the Marshall Project

Efforts in Michigan

by admin· · 0 comments · Comments & Context

Inside Voices: A Look at Clinician-Experienced Racism

This is something new for us. We hear a lot of stories, many relating experiences outside our own that open doors to broader understanding of the many lives that make up the American experience. Today’s author, Fatima Adamu-Good, is an occupational therapist and writer with 15+ years of experience in research, diversity advocacy, urban design, quantitative analysis and cultural competency. As an advocate for diversity, equity and inclusion, she has collaborated with local and national leaders in the healthcare and non-profit communities to address systemic racism in clinical practice, delivered presentations on the detrimental effects of implicit bias in the academic sphere and published articles highlighting the experiences of people of color as they strive for success. She is currently an adjunct professor in occupational therapy at Thomas Jefferson University in Philadelphia, Pennsylvania.

Fatima told us this story in passing, and was kind enough to write it up. Thanks also to Stephanie MacKay for edits.

A Look at Clinician-Experienced Racism

One morning in early April of 2020, an occupational therapist walked toward the room of the newest rehabilitation patient at a skilled nursing facility in Southeastern Pennsylvania. She mentally reviewed information from the patient’s hospital chart*; race: White, gender: male, age: late 70s, weight: 185, height: 5’ 9”, past medical history: unremarkable, the reason for admission: fall with hip fracture and subsequent replacement. The therapist grabbed a rolling walker conveniently located next to the doorway, prepared for a standard intake process; this was the latest fall/hip fracture patient in a line of the many seen in a facility devoted to geriatrics. Upon entry, the patient seemed fatigued but well-oriented to his surroundings. He peered skeptically from smeared glasses and said, “Whoa! What’s going on with that hair?!”. The therapist, taken aback, reached up to touch her afro, styled the same way it was every day. The next morning, her supervisor informed her that the patient had requested non-African-American rehabilitative and nursing staff because he “had difficulty understanding the instructions” of African-American staff.

That therapist was me.

What are the economic consequences of the above anecdote? There is a financial cost to attitudes and policies colored by racism as the 2020 Peterson and Mann report on the economic impact of inequality makes clear. African-Americans currently make up 12.8% of the country’s population and the cost of their exclusion from higher education access equates to $90-$113 billion from 2000 to 2020. Such encounters as the one I experienced undermine remedial initiatives that increase the quality of care for African-American patients. The percentage of African-American physicians is currently 5%, less than half the overall population share. The avoidance of preventive care services accounts for 75 percent of national healthcare expenditure and reduces economic output by $260 billion a year. Efforts to increase national figures for African-American doctors, such as the $100 million contribution to historically black medical colleges by former New York Mayor Michael Bloomberg, could also reduce economic opportunity barriers while buoying GDP.

A 2020 cross-sectional survey in the Journal of Family Medicine found that twenty-three percent of the 71 physician participants reported a patient directly refusing their care due to race. It concluded that physicians of color experienced significant racism while providing health care in their workplace and were likely to feel unsupported by their institutions in which they practiced. Another study, in 2007, of minority medical students, showed a correlation of racial bias with burnout and depression symptoms in 48% of participants. Before its 2008 apology, the American Medical Association failed to address 100 years of the racial inequalities African-American physicians faced, and excluded them from vital organizational conversations. African-Americans are underrepresented amongst the management that determines patient-handling policy, the business people who fund these measures, and the professional staff that control who enters educational institutions and higher-wage occupations. The aforementioned structural imbalances need to be remedied to ensure that income gains fostered by the growing share of African-Americans physicians, and the companion better health outcomes for their patients, are not eclipsed by sidelining and burnout.

The CDC reports that deaths from the Sars Cov-2 virus in racial minority groups are more than 50% higher than in White or Asian persons residing in the United States. This surge in deaths has a resonance with another set of findings with economic roots and ramifications for an entire demographic category. The 2015 Case and Deaton paper chronicling a marked increase in mortality for middle-aged non-Hispanic White working-class people identified educational attainment, access to mental health services, and availability of stable work as life and death determinants. Louisiana, one of the ten U.S states with the highest African American population, demonstrates a microcosm of a larger pandemic pattern: African American Covid19-positive patients had a higher prevalence of conditions manageable via preventative healthcare services such as obesity, diabetes, hypertension, and chronic kidney disease. These patients were also three times more likely to have Medicaid insurance than white non-Hispanic patients. The Affordable Care Act (ACA) has made a dent in the country’s uninsured numbers and could be critical in addressing inequities in care-access; between 2013 and 2016, the ACA’s expansion of Medicaid lowered the uninsured rate for non-elderly African Americans from 18.9 percent to 11.7 percent.

In other, heartening, news, there has been a marked increase in African-American applicants to medical schools since the Covid-19 pandemic began. If the face of healthcare is more representative of the communities most in need, it equates to increased traffic through a clinic’s halls and consequently an increase in revenue along with quality care. Many potential African-American patients avoid utilizing preventative care services for fear of discriminatory treatment. A Stanford study reported higher communication levels between African-American male patients and doctors of similar ethnicity, extrapolating conclusions to indicate better cardiovascular health outcomes for such patients by 19%.
When an incident of overt or covert racial bias against a clinician does occur, current institutional methods of redress are lacking.

Any ameliorative strategies to address the racial inequalities created in our centuries-old simmer, fueled by bias and frustration and detailed in this research note are rendered toothless if framed as ethical issues or limited to philanthropic gestures. Much of the literature reviewed for this article framed the racially biased patient phenomenon as an ethical dilemma, left to be either addressed or more often ignored by White senior physicians, clinicians, or administrative staff. Targeted and purposeful investment is critical in order to achieve the best economic outcomes framed by years of research that repeatedly concludes that income inequality and race have wide macroeconomic consequences. The Covid19 pandemic has made it clear that all these factors are intimately intertwined. Now’s our chance to restructure a society-wide foundation offering broader economic opportunity while building resiliency and better health outcomes for those who have been excluded and underrepresented.

The scope of the pandemic-related public health crisis has brought many societal inequities into stark relief, none more glaring than the impact of racial disparities on physical and economic health. I have experienced the drain that racism has on institutional resources and the quality of healthcare first-hand. My supervisor chose to reassign the White male patient to the caseload of a less-credentialed therapist simply because they were White and not because they were more qualified to treat him. As a daughter of Nigerian-American parents, I was taught to excel at everything I do, for better or worse. Can you imagine the sense of betrayal at the realization that my good faith efforts to learn these valuable skills, years spent hunched over textbooks working six and seven days a week to pay for graduate school, were put in jeopardy by racism?

A 2016 survey of 400 White medical students and residents found that 50% believed that African Americans felt less pain due to thicker skin. I sometimes wonder if patients, colleagues, or superiors presume the same about me, that I am impervious to physical, psychological, and emotional pain. I do not have thicker skin, but I am angry and weary of institutional injustice that disproportionately hurts so many, which this pandemic can no longer let us deny. Feel my anger, know my anger, respect my anger. And join me, even in the smallest of gestures, to collectively channel that anger towards meaningful change. I am hopeful that more of the collective will begin to understand that to hinder one is to hinder us all.

Further reading/References:

Bloomberg Gives $100M to Historically Black Medical Schools
Hospitalization and Mortality among Black Patients and White Patients with Covid-19.

Racial bias in pain assessment and treatment recommendations, and false beliefs about biological differences between blacks and whites. Proceedings of the National Academy of Sciences of the United States of America.
Does diversity matter for health? Experimental evidence from Oakland.
Williams, D. R., & Rucker, T. D. (2000). Understanding and addressing racial disparities in health care. Health care financing review, 21(4), 75–90.

Closing the Racial Inequality Gaps: Long-term Economic Effects of Racism – Dana Peterson and Catherine Mann, Ph.D.

‘Deaths of despair’ are rising. It’s time to define despair

by admin· · 0 comments · Comments & Context

A Multi-Century Elevator Ride

In the late 1800s, Native Americans told naturalists working in Alaska that the marbled murrelet, a small seabird that flies underwater when fishing, breeds in the ancient forest. Apparently they weren’t listening. The nesting habits of this small chunky alcid remained a mystery until the 1970s when a tree surgeon working on a damaged branch over a campground in a state redwood forest came across a nest, not a first, with a lone chick, unusual, but a chick that had webbed feet, a first.

One clue had been noticed prior to this discovery, murrelets flying up rivers miles from the ocean during breeding season, and more became apparent after. For example, the species ranges from Monterey Bay to the Aleutians, and its pelagic populations are closely correlated with proximity of old growth forests.

One of the most destructive of our many destructive economic narratives is the claim that economic and ecological outcomes are at odds. Among the most polarized, brutal, and misunderstood of battles engaged by this polarity were the Timber Wars concerning California and Oregon’s old growth forests.

Photo from San Francisco State University linked below. If anyone knows M. Hobson, the photographer, please send him or her our way.

They didn’t have to happen. The team of biologists and historians who put together Coast Redwood, A Natural and Cultural History, details how, in the 1930s, the Pacific Lumber Company, under the leadership of Stanwood Murphy, became a pioneer in sustainable timber harvesting, cutting only certain percentages of trees leaving others to hold the soil together and for future harvest. PL maintained these practices for half a century. Their timber holdings were their major asset, and their employees believed the “extensive holdings and sustained-yield logging would ensure their long-term employment.” The last Murphy to run the company said, “We were the good guys. It was fun, it was easy—it was a great life.”

In the 1980s, Pacific Lumber owned about 70% of the old growth forest held privately. Unfortunately for their employees, PL’s under-valued stock came to the attention of Houston-based Charles Hurwitz and his company, Maxxam, who financed a hostile take-over with junk bonds and, heavily levered, raided PL’s pension fund, and began selling off secondary operations, like a welding shop, and clear cutting to service the debt.

By this time the marbled murrelet’s population had been decimated by logging, declining fisheries, you name it, and its habitats were protected. When PL illegally entered those habitats to log valuable old-growth trees, the Environmental Protection and Information Center, among others, sued PL, eventually taking the suit to federal court, who sided with the environmental groups, noting PL had used “fraudulent wildlife assessing methods,” concerning murrelet populations. PLC’s licenses were revoked for “gross negligence & willful” violations of state forestry regulations, and eventually the land was purchased from PL and taken into public hands.

The marbled murrelet isn’t the only species up there. In the late 1990s researchers led by Humboldt State’s Steve Sillett began climbing into redwood crowns. (If you’ve read Richard Powers’s The Overstory you know something about this, but there’s more.) The crown of one mapped redwood contains 210 trunks and fills 32 cubic yards, the tree itself embodies over 37,000 cubic feet of wood. Within those crowns, in addition to ferns, lichens, mosses and epiphytes, huckleberries produce fruit, and some trees become natural bonsais, while others can grow to 8 feet. Wandering salamanders have been found breeding in water-logged humus mats above 200 feet. Salamanders are good climbers, but it is hard to imagine what would impel an individual to use the energy it would take to make that climb, and some biologists believe centuries ago salamanders climbed onto young trees and rode up as the tree grew, as did generations of offspring. There are also crustaceans and, so far, no one knows how they got there. How many STEM jobs, some entry level, could those aerial habitats also support?

Murrelets begin nesting in April, the chicks fledging at about 4 weeks. Until recently no one knew how the young birds reach the ocean. It has now been observed that they fly out of the nest and to sea alone in the evening dark, another mystery solved.

by admin· · 0 comments · Employment & Productivity

Details on that Decline in UMich Expectations

This morning’s report on consumer confidence from the University of Michigan graphed the share of respondents reporting income gains as the reason for improved personal finances by income tercile. Although the trendlines remain sharply down for all three, the top tercile is climbing, with 44% mentioning income gains in early February, while the second and third continue their slides, with only 17% of the third tercile mentioning gains, the lowest level since 2014. Fifty-four percent of the top tercile reported their finances have improved, compared with 23% in the bottom third.

And that partisan divide just keeps growing. Overall the index slipped to 76.2 in early February from January’s 79; was basically unchanged at 86.2 v. 86.7 for current conditions; while expectations fell about 4 points to 69.8.

Within that, after rounding, the overall index among Democrats was unchanged at 90, down 1 point for Independents to 76, and down 6 points among Republicans to 64. Little change in current conditions among Democrats, 86, but Independents rose 5 points to 86, which cancelled out the 7-point fall among Republicans, 92. Same old unchanged for Democrats in expectations, 92, while Independents fell 5 points to 69, as did Republicans, but to 46.

Given his thinking that the new round of relief payments will reduce stress among those with lowest incomes, Richard Curtin found it “more surprising” that the outlook fell among consumers, but it’s far from a unanimous decline.

by admin· · 0 comments · Comments & Context

Buybacks: A Turn toward Prudence, for Now

According to preliminary numbers from Standard & Poor’s, buybacks among S&P 500 components rose rose 15% in the third quarter, after a 55% decline in the second, leaving them 42% below a year earlier. Measured as a percent of GDP, buybacks are now in the same neighborhood they were last seen in in 2010—though that’s still well above where they were any time between 1998 and 2004.

Measured as a percentage of operating earnings, as in the second graph, buybacks fell to their lowest levels since 2010, 32%. Despite the increase in dollar volume, buybacks declined as a percentage of earnings because earnings were up 42% in the quarter. In the 40 quarters between 2010 and 2019, buybacks fell below 40% of earnings in just two of them; the average over that period was 53%.

And our third measure, buybacks relative to dividends, saw an uptick in the quarter, but remain at their lowest level since 2009, 88%. The second and third quarters were the only two since 2010 where traditional dividends exceeded buybacks; that was true of only half the quarters between 1998 and 2009. Between 2010 and 2020Q3, S&P firms bought back $5.7 trillion in stock and paid $3.9 trillion in dividends, a combined total of $9.6 trillion. Over the same period, earnings totaled $10.6 trillion. So, they paid out 90% of earnings to shareholders. After all these years of heavy transfers to shareholders—which, it must be said, have been very friendly to stock prices—you have to wonder why corporations don’t have better things to do with their profits. It’s as if Corporate America has become an old rentier, more interested in collecting cash than investing and innovating. Maybe this pandemic-induced reduction in buybacks marks a change of heart, but we suspect things will go back to the old ways in a few quarters.

by admin· · 0 comments · Uncategorized