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Governors' races are being increasingly buffeted by the toxic politics of data centers
More governors are shifting their stances or taking more steps to squeeze data centers, as the midterm elections near and public opinion sours on the energy-hungry behemoths
Governors' races are being increasingly buffeted by the toxic politics of data centers
More governors are shifting their stances or taking more steps to squeeze data centers, as the midterm elections near and public opinion sours on the energy-hungry behemoths.
Governors’ races are being increasingly buffeted by the toxic politics of data centers
HARRISBURG, Pa. (AP) — More governors are shifting their stances or taking more steps to squeeze data centers as the midterm elections near and public opinion sours on the energy-hungry behemoths t…
Lindsay Clancy's family was 'very concerned' about her mental health in the months before she killed her kids
Lindsay Clancy's mother-in-law testified the accused mother was 'begging for help' with insomnia and anxiety months before the Duxbury killings.
Zach Lahn is MAHA’s great farm country hope. Is he the populist hero he claims to be?
He’s running for Iowa governor on promises to bust up Big Ag. But some farmers are questioning his authenticity.
National Geographic photographer brings science into focus at Berkeley's Wonder Lab
Mark Unger has built a career capturing moments most people never get to see, from the up-close diversity of moths to the rare sight of a lobster breaking free of its shell.
Lindsay Clancy’s mother, sister take stand
“She said ‘this isn’t me — I just want to feel better and enjoy my kids again,’” Paula Musgrove told the court.
AirPods Max 2 Discounted by $120 Across Amazon and Best Buy
Apple's AirPods Max 2 have hit $429.00 on Amazon this week, down from $549.00. This sale is available in two colors on Amazon, while Best Buy has all five models in stock at this low price. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running.
1000xRESIST Nintendo Switch 2 Edition officially announced, launches Aug. 20th, 2026
Blessed be the ALLMOTHER
Kaia Gerber details childhood exorcism mom Cindy Crawford had performed on her
‘The Shards’ actress Kaia Gerber revealed that her mother, supermodel Cindy Crawford, had an exorcism performed on her when she was a child.
‘Everything felt so real’: Mothers who experienced postpartum psychosis speak out amid Lindsay Clancy trial
Three mothers who survived postpartum psychosis describe their experiences with the condition — and what they want people following the Lindsay Clancy trial to know.
Med Center Health opens High Street Tower on 100th anniversary
Med Center Health marked its 100th anniversary Saturday by cutting the ribbon on its new High Street Tower, a facility designed to serve mothers and babies.
Leavitt and Ocasio-Cortez spark conversation on challenges of family and career
The BBC spoke to working mothers about the challenges of a high-pressure career and making time for family.
What investors say went wrong at Selena Gomez's mental health startup
Selena Gomez launched the startup in 2021 alongside her mother, Mandy Teefey, and Daniella Pierson, a business partner.
What investors say went wrong at Selena Gomez's mental health startup
Selena Gomez launched the startup in 2021 alongside her mother, Mandy Teefey, and Daniella Pierson, a business partner.
Selena Gomez blasts fraud lawsuit against her and her mother: ‘Completely meritless’
Selena Gomez broke her silence on the lawsuit accusing her and her mother of multiple counts of fraud, calling the suit ‘completely meritless’ in a statement from her lawyer.
Daylight saving time debates heat up in New Hampshire
NH Rep. Timothy Horrigan continues his push to end daylight saving time, citing health benefits and simplified living.
Florida business owners charged after 1,500 toxic mothballs were spread to deter nesting birds
"They’re the worst birds."
First-look ‘Tangled’ footage shows off Rapunzel costume and Mother Gothel’s grin
Disney revealed at D23 first-look footage for its live-action ‘Tangled’ movie, including costumes worn by Rapunzel, Flynn Rider, and Kathryn Hahn’s Mother Gothel.
Tyler Duckworth, 'The Challenge' winner, dies at 44
MTV's "The Challenge" champion Tyler Duckworth has died at the age of 44, his mother confirmed on social media Thursday, Aug. 13.
DoD changes transitional health care eligibility for reservists following lawsuit
Reservists no longer need to demonstrate that their period of active duty service was connected to a war to qualify for transitional health care coverage.
Selena Gomez Is Sued for Defrauding Investors in Mental Health Site
The actor, singer and beauty mogul founded Wondermind, a mental health platform, with her mother. Investors put in more than $1 million in the venture, which “quietly collapsed,” the suit said.
My husband is LL Cool J. I wanted a purpose of my own.
Simone I. Smith says building a jewelry company with LL Cool J's support helped her create an identity beyond marriage and motherhood.
Scientists have created a new category of heat waves: "snow eaters"
And this year, it's brought about wildfire havoc in the American West.
Idaho judge ruling allows abortion if it protects mother’s health, prevents self-harm
The Idaho federal judge's decision, released Thursday, marks a major change to Idaho abortion ban’s exemptions.
Selena Gomez and her mom accused of fraud over their mental health startup
Superstar Selena Gomez and her mother are accused of defrauding investors of their mental health startup, Wondermind, in a federal lawsuit filed Thursday.
Hospitals chipping away at maternal mortality one birth at a time
If you could help break the silence around the nation’s maternal mortality crisis for something like 1 cent per message, wouldn’t you make the spend? If so, know that a growing number of hospitals has already laid the groundwork.
Paris Jackson explains why she had ‘no expectations’ when meeting mom for the first time at 15
Michael Jackson’s daughter, Paris Jackson, explains why she had ‘no expectations’ when meeting her mother, Debbie Rowe, for the first time at 15 after over a decade apart.
Perez Hilton’s Mother Files For Temporary Custody Of His Children After Hospitalization
Celebrity blogger Perez Hilton was hospitalized late Tuesday after fans called the police during a disturbing TikTok livestream.
3,500-year-old skeletons challenge what scientists thought they knew about syphilis
Ancient remains from Vietnam suggest diseases like yaws may have been passed from mother to child thousands of years ago, a form of transmission often assumed to indicate syphilis. The discovery could overturn how scientists interpret ancient infections and complicate the long-running mystery of syphilis’s origins.
Kylie Jenner and Timothee Chalamet Are ‘Vehemently Opposed’ to Kris Jenner’s ‘Televised’ Wedding Plans
Kylie Jenner and Timothée Chalamet are ready to follow in the footsteps of friends Tom Holland and Zendaya by tying the knot privately, a source tells In Touch. “They love that Zendaya and Tom were ab...
Fauci, RFK Jr., and the latest in American health
Epidemiologist Jessica Malaty Rivera breaks down the public health breakdowns
Drive-through coffee truck opens for business in Manchester
A mother and son have opened a mobile coffee business in Manchester, bringing specialty drinks to Clay County residents. Donna and Jordan Jackson launched the Mountain Mug Coffee Truck on Tuesday.
The political power of Alexandria Ocasio-Cortez's egg freezing
In showcasing the balancing act of career ambitions and fertility, the congresswoman is once again flexing her political prowess.
WAPO: Trump secretly switched planes using catering truck
Saber's newest game trailer takes a shot at Gearbox's CEO, if you look closely
The first hint that something might be up with the recent debut trailer for Saber Interactive’s Rideshare Stimulator is an unusual choice of words—aside from that second one in the game’s title. “Don’t take your passengers too seriously,” the trailer’s narrator says, as he describes this upcoming game. It a car game about the gig work of driving eccentric people to their destinations, a riff on Crazy Taxi. And then, he says: “When I think I’ve met the randiest of passengers, someone even stranger gets in.” “Randiest”? That suggests “randy,” which usually means having strong sexual desire. Yet none of the oddball backseat occupants featured in the trailer seem particularly lustful. One is an old man who considers his grandson a failure, another shares the theory that birds might control traffic lights, another says he’s banned from an aquarium. A little later, there’s a license plate, shown 63 seconds into the trailer, on the front of an SUV: USB DRV It’s a Texas plate. The symbol between those letters is a cog wheel. If you know, you know. That’s a reference to Texas-based Borderlands game development studio Gearbox Software (their logo features a cog wheel). More specifically, it’s a reference to Gearbox’s CEO Randy Pitchford, who in 2018 found himself explaining the nature of video he’d saved on a USB drive that was found at a Medieval Times restaurant before being returned to the studio: “It was ‘barely legal’ porn. This girl’s handle was ‘Only 18.’” The “girl” in the video had committed a solo sex act that Pitchford, an avid practitioner of magic, found remarkable. “I realized, this is not a sex worker…This is a fucking magician.” Back then, the USB drive was central to competing lawsuits against Gearbox by the studio’s former lawyer and by Gearbox against him. A settlement in late 2019 “exonerated” Pitchford, per the Hollywood Reporter. The USB story has resurfaced at times, now in a trailer from a company that not long ago was corporate brethren with Gearbox. Saber vs. Gearbox The head of Saber told Game File that the reference is payback. “The dig is because Randy took shots at Embracer in Borderlands 4,” Saber CEO Matt Karch told me when I asked him about the license plate. “Without Embracer, Randy is performing magic tricks at birthday parties for a living.” Having interviewed Karch during a cross-country flight in late 2024, I can confirm that Karch was unimpressed with Pitchford during their time both working in the Embracer group. I’d approached him not out of surprise that there was animosity but that it was manifesting publicly now. Gearbox was founded in 1999, worked on a port of Halo early on, and developed hit series such as the loot-based sci-fi shooter Borderlands before it was purchased by The Embracer Group in early 2021 for $363 million (with a possible earn-out of over $1 billion, if certain targets were hit by 2027). Saber was founded in 2001, worked on a remaster of Halo early on, had a big hit with zombie shooter World War Z and was purchased by Embracer in early 2020 for $150 million, with a potential earn-out of up to $375 million. For a few years, the Embracer group was a voracious acquirer of game studios. Then, as investment dried up, it choked. In March 2024, Embracer sold Saber to an investment company controlled by Saber CEO Matt Karch, and it sold Gearbox in an all-stock deal to long-time Borderlands publisher Take Two Interactive. Other studios were shut down. Hundreds of developers were laid off. Gearbox didn’t say much about their Embracer experience, nothing too direct, at least. In the summer 2024, Pitchford told reporter and occasional Game File contributor Nicole Carpenter that Borderlands 4’s story was in some way thematically connected to Gearbox’s experience at Embracer: “There’s this cultural and emotional shift in me, personally, and at the studio. What does it mean to trade some autonomy for organization?” When Borderlands 4 came out, there was something stranger: the matter of “Embracer’s Bluff,” a location in the game featuring an AI-powered toilet and a large trash dump, according to a detailed Kotaku account of the place. Gearbox never commented on it; Take Two never got back to me about it when I asked them last year. By contrast, since Saber exited Embracer, Karch has been one of Embracer’s biggest defenders, casting their management as well-meaning and supportive despite the layoffs and studio closures that resulted from their excessive expansion. Like others, Saber’s Karch saw Embracer’s as a shot. With Rideshare Stimulator’s trailer, he’s returned fire. “It’s amazing to me how fast people forget those who went above and beyond for them,” Karch told Game File. A rep for Gearbox did not comment by press time. Game File is a reader-supported publication. Your backing makes my reporting—including any coverage of trailer-based beefs—possible. Good news! I’m currently running Game File’s first big sale of 2026. You can get a one-year subscription for 23% off. Click here to take advantage of the limited-time offer. And thank you for your support! Item 2: In brief… 🚫 Wal-Mart has laid off the staff of Restart, a games media outlet launched in 2024, Aftermath reports. 🟥 A GTA VI preview is on the way, at last, via an “extended look” that will premiere, unusually, on Netflix at 3pm ET on August 27, then officially go live elsewhere six hours later. Last week, Game File noted that Take Two label Rockstar Games is overdue for showing off GTA VI, based on the timing of the initial hands-off previews of GTA V and Red Dead Redemption 2. During a call with investors, Take Two CEO Strauss Zelnick said pre-orders for GTA VI were “unprecedented and astonishing,” but added the company can’t predict how many of those pre-orders represent bonus sales vs. sales that otherwise would have been made at launch. During the same call, Zelnick was noticeably bullish on the future of playing games over streaming cloud connections (predicting wider adoption in three or so years). He sounded unbothered by Sony’s plans to stop making discs for new games (he said the business is 90% digital already and predicted that there could still be limited edition physical editions of games “in the same way there’s still vinyl in the recorded music business.”) 👀 Take Two wrote off $43 million in their spring quarter after deciding “not to proceed with further development of an unannounced title in its pipeline from a third-party developer.” 🤔 Some rare age-demographics from a big publisher: Capcom recently told investors that “users in their 20s account for approximately half of the users of both Pragamata and Resident Evil Requiem.” Item 3: The week ahead Tuesday, August 11 Game releases: The Elder Scrolls IV: Oblivion Remastered (Switch 2; already out for PC, PS5, Xbox) continues the Bethesda strategy of putting Elder Scrolls games on everything; Royalty Free-For-All is a Smash Bros.-style fighting game featuring public domain characters such as Mother Goose brawling with Oliver Twist in a stage based on the original Little Shop of Horrors movie. Wednesday, August 12 Game release: Pro Jank Footy (PC, console) is an arcade-style Australian Rules Football game with increasingly ridiculous rules, the more you play (I enjoyed the Steam demo) Thursday, August 13 Game release: Super Mario Sunshine (Switch 2, originally released in 2002 on the GameCube) is released for Switch 2’s Nintendo Switch Online service. This game is the black sheep of 3D Mario games. It’s the successor to the breakthrough Super Mario 64 and the rare Mario game built around a single (vacation resort) theme. Mario’s got a water-spraying backpack, a Yoshi pal and a lot of blue coins to collect.
‘Family Affair’ actress Kathy Garver reflects on child costar Anissa Jones’ death at 18
‘Family Affair’ actress Kathy Garver reflects on child costar Anissa Jones’ tragic death at 18 and reveals a haunting plea the star’s mother made to her shortly before her daughter died.
I built a company after losing my mom unexpectedly
Jermaine Ee says talking openly with his mother before her unexpected death gave his family clarity, comfort, and memories they'll always treasure.
Anti-populism is reshaping American politics
Democrats are winning on data center opposition. So are Republicans.
These furry moths smell with their wings
Tobacco hawkmoths may use these tiny hairs to find a place to lay their eggs.
Asking Eric: Mother says ‘no politics’ but keeps talking politics
Mom shuts down political conversations with the letter writer attempts to rebut her.
‘America’s saddest murder trial’: mental health in focus in Lindsay Clancy case
Jurors hear from host of medical experts as defence says postpartum psychosis caused young mother to kill children
Asking Eric: Mother says ‘no politics’ but keeps talking politics
Dear Eric: I’m a 58-year-old daughter to a 94-year-old father and an 83-year-old mother. I love my parents dearly, but we have had no contact for...
Asking Eric: Mother says ‘no politics’ but keeps talking politics
Dear Eric: I’m a 58-year-old daughter to a 94-year-old father and an 83-year-old mother. I love my parents dearly, but we have had no contact for nearly a year. I know that at any time my father and/or mother could pass. This is the one s…
Asking Eric: Mother says ‘no politics’ but keeps talking politics
Dear Eric: I’m a 58-year-old daughter to a 94-year-old father and an 83-year-old mother. I love my parents dearly, but we have had no contact for nearly a year. I know that at any time my father and/or mother could pass. This is the one stressor in my life – that I will lose one or both of my parents when we are at odds.
A tragedy & a trial shine a spotlight on new moms’ mental health
The Lindsay Clancy trial shines a spotlight on postpartum psychosis and other forms of perinatal mental health issues; treatment and education are vital and available
Britney Spears says she ‘failed as a mother’ because son believes in science, slams parents
In a new social media post, Britney Spears says she ‘failed as a mother’ because her son believes in science and also slams her parents, saying she was ‘brainwashed into an ignorant system.’
Britney Spears says she ‘failed as a mother’ because son believes in science, slams parents
In a new social media post, Britney Spears says she ‘failed as a mother’ because her son believes in science and also slams her parents, saying she was ‘brainwashed into an ignorant system.’
Is Beaver’s Mini Mart a small business or ‘Beavermart’ chain?: Here’s what we know
The legal battle between the behemoth Buc-ee’s gas station chain and Beavercreek carryout Beaver’s Mini Mart took a turn this week when Buc-ee’s founder and CEO Arch Aplin III reportedly
Former Clancy nanny testifies about mother's mental health issues before killings
Months before Lindsay Clancy strangled her three children, she lost significant weight, couldn't sleep and complained of postpregnancy mental health issues, the family’s former nanny testified at her murder trial Wednesday. But the nanny never worried the Massachusetts mother might be a danger to her children or to herself.
Business Briefs: Aug. 7, 2026
UMassFive welcomes new associate director HADLEY — UMassFive College Federal Credit Union welcomes Timothy (Tim) Webster to its board of directors as an associate director. Webster brings extensive experience in law, governance, higher education and international affairs, along with a longstanding commitment to service and community engagement. Webster is a professor of law at Western […]
NSF Presents Highest Award to H-SC Professor
The National Science Foundation (NSF) has awarded its most prestigious grant to Elliott Professor of Chemistry Timothy M. Reichart for his work in drug discovery, chemical protein synthesis, and educational methods that advance the sciences.
Chartbook 464 The"China squeeze" - the politics of development counterfactuals.
There are three types of China shock discourse. Each has a distinct temporal register. China shock 1.0 was a phrase coined by US academics in the 2010s to retrospectively summarize the impact on particular US labour markets, which they identified through painstaking empirical investigation. China shock 2.0 on everyone’s lips in Europe in the mid 2020s is an alarm raised by trans-Atlantic policy thinkers warning of a coming disaster which they project onto Europe’s ailing car industry. The third type of China shock discourse - commonly known as the “China squeeze” launched most recently by Indian economists Shoumitro Chatterjee and Arvind Subramanian in the pages of Foreign Affairs - mobilizes a different, more speculative temporal register: the counterfactual realm of alternate history. The China squeeze argument asks not what has happened, or what is going to happen, but what might have been. Specifically, what options for economic development might have been open to Global South economies like India or the economies of sub-Saharan Africa, had it not been for China’s spectacular industrialization since the late 1990s and the persistent competitiveness of China’s manufacture in low-skilled segments. Chatterjee and Subramanian’s argument is that whilst China has built a powerful position in electrical machinery and other high-skill manufacturing, which is now delivering China Shock 2.0, it also continues to run a trade surplus in low-skill, labour-intensive manufacturing. This surplus is large and has remained largely unchanged in fifteen years. Indeed, in the 2010s, in trade with low-income countries, China’s surplus rapidly increased. On their reading, this squeezes low-income producers in low-skill sectors in which they “should” be able to compete. Source: “China’s Mercantilist Squeeze on Developing Countries” Shoumitro Chatterjee and Arvind Subramanian. Peterson Institute for International Economics 26-7 May 2026 Chatterjee and Subramanian’s wording is telling: (emphasis mine) The canonical trajectory of economic development in the post-World War II period is for countries to transition from agriculture to manufacturing, first in low-skilled manufacturing and then later on to high-skill manufacturing (Herrendorf, Rogerson, and Valentinyi 2013). At the global level, this implies that high-income countries (HICs) that once specialized in low-skilled activities cede manufacturing export space to poorer countries that come along to occupy that space. In 1965, advanced economies accounted for about 60 percent of global value-added exports in four key low-skilled manufacturing sectors, i.e., apparel, leather, textiles, and footwear. Over time this share declined and began to be occupied first by the East Asian tigers and, beginning in the late 1990s, by China. Today China accounts for about 50 percent of the global market. The question is whether China, with its rising prosperity, is continuing to behave like its richer counterparts and ceding export space to poorer followers or to behave unlike them and continuing to occupy space. In terms of the conceptual maneuvers it performs, of the three China shock discourses, the “China squeeze” argument is by far the most ambitious. After all, it bases its critique of China on a counterfactual imagining of the world. Like any counterfactual argument, to construct this alternative reality it must rely on a heuristic model. To make their argument Chatterjee and Subramanian mobilize two key claims. The first reference point is the actual history of rich-country industrialization, what they refer to as the “canonical path”. The idea is that countries transition from agriculture to light industry and low-skilled manufacturing and from there up the value chain. To make this useful as a standard of comparison and a means to construct a normative standard, they adjust sectoral export shares for two factors: 1. the underlying level of economic development of the exporting country, as measured by national income and 2. the degree to which the sector in question is internationalized. The idea being that for a high income country to have a high export share in low-skill sectors is anomalous and even more so if that particular product is highly internationalized and thus suitable for being “conceded” to lower-income competitors. Where should this process end? Here Chatterjee and Subramanian introduce their second benchmark. Their normative idea of a global development path is one in which, in due course, low-skill manufacturing exports are distributed in proportion to a country’s share in the global labour force. They imagine, in other words, a world of proportional, polycentric global development without much national specialization in low-skill manufacturing. A useful benchmark is that, in labor-intensive manufacturing sectors, a country’s share of world exports should be broadly commensurate with its share of the world’s low-skilled labor endowment. … In the Heckscher-Ohlin model, this would be true if value added per worker and export propensities, i.e., fraction of output that is exported, are the same across countries. It is this pleasant liberal vista of orderly global development, progressing towards a general distribution of low-skilled manufacturing against which they judge reality and conclude that the low-income countries are suffering a “China squeeze”. China is not exiting low-skill sectors fast enough Allowing for its gdp level and the degree of globalization, China’s share of low-skill manufacturing exports is far higher than it “should” be. Relative to population, its low-skill share of exports is far too high. That in turn yields the conclusion that huge numbers of jobs - the authors suggest tens of millions - are being hoarded by China. For the four sectors captured in figure 4, this excess in value-added exports is $110 billion in 2022. For all low-skilled sectors overall captured in appendix figure D.1, excess value-added exports amount to $365 billion. The crowding out of LMIC exports by China is therefore substantial. Both these claims have in common that they are strong structuralisms. The first is that development paths ought to resemble each other. The second is that broadly speaking as far as low-skilled manufacturing is concerned, all countries are alike. If the world currently diverges from the distribution of trade implied by these assumptions, if China is not following the advanced economy path and has huge exports, this must be the result of “policy”, which the authors then put in question as illegitimate or unfair. Thus the naturalistic construction of a canonical path leading to a “level” distribution of low-skilled manufacturing reveals itself to be a polemical tool. From the point of view of China shock polemics, this discourse is no doubt welcome. But as an account of economic history, it must surely be regarded as nothing short of bamboozling. Development paths do not follow a regular, natural sequence. As David Fishman put it aptly, “development is not a queue”. They are always and everywhere, through and through political. Development is not so much a process, as a project. Each such project is more or less well adjusted to its context. As Gerschenkron taught uneven and combined development implies differentiation rather than simple imitation on a single parth. It may be true that Europe and the US exited relatively early from low-skill work. But clearly technology has changed. As C&S themselves point out, China no longer enjoys a low wage environment. Do they really believe that such huge differences can be accounted for either by industrial policy, which as they admit does not operate powerfully in low-skill sectors, or by exchange rate manipulation? What is overwhelmingly dominant in explaining the persistence of “low-skill” manufacturing in China are surely the network effects of complex supply chains. Indeed the label of “low-skill” may miss the point. The degree of globalization which Chatterjee and Subramanian decide to conjure away in their model of the development path - to allow for the fact that Europe and American textiles exporters did not enjoy just-in-time logistics in the 1950s - obscures the point that the networks through which Chinese factories supply the world are themselves key parts of the low-skill industrialization project. China isn’t knocking out 1970s style “cheap”. It has redefined the entire product cycle. C&S’s casual reference to “T-shirts” is telling. In today’s “fast fashion”, there is weight on both terms. Fashion and fast. China’s success in delivering on both at unprecedentedly high speed and at unprecedentedly low cost, isn’t a low-skill operation at all. If we see development trajectories not as the serial repetition of the same, but as distinctive, crafted projects that cumulate in complex agglomerations of skill, technology and labor, then this explains why the assumption that low-skilled manufacturing should follow the distribution of population flies in the face of all experience. As countless cases attest, low-wage, low-income developed economies are not by themselves the makings of a competitive production base. As Leon Liao puts it quite fairly: “International trade has never been allocated according to population. A country’s population gives it no natural claim to an equivalent share of global exports." And the remarkable fact is that Subramanian alone and with co-authors has long been making this point, not to pillory China, as is the case of the tendentious _Foreign Affair_s and Peterson pieces, but to highlight the great counterpart to China’s industrial success, namely India’s relative failure. The much-quoted Foreign Affairs piece showed low-skill export shares only for China, not for India. If you put both countries in the picture as Chaterjee and Subramanian have done on other occasions, the picture looks like this. China is far above the line, but India, almost as large in terms of population, is no less anomalous, just in the opposite direction. As far as global populations are concerned, and the imagining of tens of millions of “squeezed” jobs, it is this Sino-Indian pair that account for a huge share of the action. What this graph reveals is not China’s cheating, but India’s “greatest development failure”, at least this is the argument made Arvind Subramanian, this time in co-authorship with Devesh Kapur, in their major book, A Sixth of Humanity. Independent India’s Development Odyssey which appeared with Oxford University Press earlier this year. In this highly critical work on India’s development, China is repeatedly evoked, not to criticize but as a benchmark against which to illuminate what India’s political economy has not delivered i.e. large-scale formal employment for hundreds of millions of citizens. Kapur and Subramanian leave no doubt, if you want to understand why China, not India was the main driver of manufacturing globalization from the 1980s, don’t look to slots opening up in the division of labour thanks to the liberal mindedness of advanced economies, look to the contrasting political economy of the Maoist PRC and India’s post-independence political economy. As Kapur and Subramian note: The great divergence between China and India did not begin in 1978 with the Deng reforms—it was well underway by then. In one of the great ironies of modern history, the conditions created by Maoism turned out to be a great launching pad for industrial globalization. As the comparison of India and China in 1980 makes clear, to imagine manufacturing would be equally distributed when populations are so differently endowed in terms of educational and nutritional is fanciful. Here is the data from Kapur and Subramanian, data which I explored back at the very beginning of Chartbook. As Kapur and Subramanian insist, the striking fact is that even as India’s growth accelerated from the 1980s, structural change has not. Formal employment in India lags woefully behind. Why? As Kapur and Subramanian note, the path-dependent impact of India’s poor early start was devastating. The list of factors they mention is long and weighty: We argue for a new five-fold explanation applicable at different stages of Indian history: in the initial stages, the legacy of two key pre-1980s policies, the neglect of agriculture and the strangling of the domestic private sector, were critical. The failure of broad-based agricultural growth militated against rural industrialization, which would have been devoted to satisfying local needs that would have necessarily been labour intensive. Then, when the boom came after 1980, the thicket of regulation and broader labour protections that were legislated prematurely in a nascent democracy, underpinned by a deep ideological aversion to private capital in general and big capital specifically, became a barrier to attaining the size that would be necessary to compete globally. Similarly, the reforms after 1991, while wide-ranging, did not quite encompass non-tradeable inputs critical to manufacturing, namely, land, logistics infrastructure and power. A combination of low investment (logistics infrastructure), regulation (land) and the continued monopoly supply by state governments (power), combined with residual socialism, kept costs at 75–100 per cent above efficient supply. These factors were compounded on the supply side by the government, which dominated the formal labour market and established exorbitantly high wages at the lower end of the skill spectrum. This made their employment in the labour-intensive sector by the private sector less attractive. Finally, when the services sector and its exports boomed, wages soared even further via a Dutch Disease effect: one successful tradeable sector killed and cannibalized another less-skilled tradable sector, namely, manufacturing. Thus, scarcity-inducing policies of the planning era, precocious democracy and a Gandhian aversion to size; inefficient, monopolistic supply of critical non-tradable inputs; the behemoth of government; and super-successful skill-intensive services successively undermined India’s unskilled labour employment opportunities. The employment failure seems to have been over-determined. … Less quantifiable but no less important are some of the sociological factors that have undermined manufacturing and factory jobs. Take the impact of the success of the IT sector—located in urban areas with better working conditions, such as air-conditioned offices, good schools for children and attractive entertainment options. It became a more attractive place for engineering and management graduates to flock to. … Consider manufacturing and female employment. Indian society makes it difficult for women to work, reflected in India’s unusually low female labour force participation (elaborated in Chapter XIII). Indian society, in particular the routine harassment of women in public spaces, makes it even more difficult for them to travel long distances to take up work.37 Combined with onerous regulations on creating hostels and dormitories for women—which, in turn, prevents multiple shifts of operation—factories need to be located in areas with a large female labour pool. While firms can take apparel plants to female labour or bring them to the plants by building large-scale dormitories, this raises costs. If there was a case for subsidies to encourage labour-intensive manufacturing, housing subsidies to build dormitories for women workers would be a good place to start. All of this meant, that when opportunities did open up, in part thanks to adjustments in China, India was in no position to take advantage. Here is the account of the 2020s from Kapur and Subramanian. It stands in dizzying contrast to the one-sided, “China squeeze” argument delivered in the Peterson and Foreign Affairs pieces: In 2022, for example, India’s share of global exports in clothing (the canonical labour-intensive sector) was 3.1 per cent compared to 32 per cent for China. This is extremely disappointing because China started vacating export space in this sector after the Global Financial Crisis as its wages started rising; it then vacated further space in the aftermath of geopolitical developments that led investors to seek alternative investment locations. Between its peak and today, China lost about 7.5 percentage points of global export share (worth about $43 billion in 2022); over this period, India’s export share remained stagnant at 3 per cent, while that of Vietnam and Bangladesh rose by 3.5 to 4 percentage points. China’s loss did not translate into any gain for India in terms of low-skill exports and employment. Put differently, when the conditions for dynamism and prosperity were established after 1991, and even more tantalizingly when the global export opportunities opened up, it was as if India was a high-wage economy and only skilled labour could benefit from the dynamism. It had converted its physically abundant unskilled workforce into an economically expensive resource, penalizing its use. It is not my mission here to argue for or against Kapur and Subramanian’s interpretation of India’s development trajectory. The point in this context is simply that the “China squeeze” such as it is can only be understood, in relation to the heavy burden of domestic constraints that Kapur and Subramanian so unsparingly enumerate. I am concentrating here on India because it is the great counterpart to China and the unspoken reference point of the “China squeeze” discourse. But the point is more general. Can anyone with a straight face suggest that the main problems afflicting the development of South Africa or Nigeria, the great centers of mass underemployment in sub-saharan Africa, are cheap competition from China driven by Beijing’s industrial policy and an undervalued RMB? Likewise, is the main problem of the American working-class the threat of Chinese competition or the manifest crisis of social reproduction in the United States itself? The point here, as in the discourse around China shock 2.0 in Europe, is to insist that we should not normalize the world and pathologize China, without actually investigating what is going on in America’s industrial wastelands, the German car industry, or India’s lopsided labour market. One-sided pathologization should be understood for what it is, a polemical gesture. Concepts like China shock and China squeeze are, what Reinhart Koselleck, following Carl Schmitt, would have described as “asymmetrische Kampfbegriffe”, or “asymmetrical counter-concepts” or “asymmetrical combat concepts”. If the function of arguments like the “China squeeze” is to alert elites in the rest of the world of the need to rejuvenate and energize their development projects, so be it. But let us see the resulting discourses as the mobilizing interventions that they are. Interestingly, a significant slice of China’s public sphere - the so-called industrial party - have been obsessed for the last twenty years with precisely these questions of counterfactual economic history. Since the mid 2000s, a massive online discourse developed around an alternative history in which Chinese techno-patriots were asked to imagine how they would proceed if they had the possibility of traveling back in time to transport modern technology into the Ming dynasty (1368-1644) thus averting the “great divergence” of the 18th and 19th centuries. It is a fantasy of course, but also a goad. The point was not directed at Westerners. The alternate history is dramatically nationalist, but few n the West had even heard of it until recently. The adherents of the industrial party are not liberal moralists. They don’t project natural ladders of international development and ask why others don’t cede space. They take the Realpolitik of global economic development for granted. Their pointe was directed against fellow Chinese. The rallying cry of the alternative narrative was this: Now that we are beginning to gain steam and push forward on our national development path, now that we are breaking out of the inferior position assigned to us even in the early years following WTO accession, do not lose yourself in humanistic imaginings about better futures. In the spirit of Deng, they called on China to embrace the hard truth of development. Perhaps one might of the Industrial Party as a cultural trend born out of desire for symbolic revenge against those who had inflicted the century of humiliation. In terms of the various temporalities of the “China shock” - retrospective, prospective and counterfactual - one might think of the Industrial Policy discourse as truly speculative, conjuring up the China shock that never was. Or perhaps one might better think of it as imagining a world in which a powerful China was no shock at all, but simply a defining fact of modern history. I love putting out Chartbook. I am particularly pleased that it goes out for free to thousands of subscribers around the world. But, writing this newsletter takes a lot of work. If you are enjoying it and would like to support the project, sign up for one of the subscription options here. It is the equivalent of a fancy cup of coffee per month! Subscribe
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