The 10 Commandments of Salary Negotiation

The largest salary increase I’ve helped get was for a female FAANG executive: I helped her get $5.4M more on her offer. Through the process, it struck me that even though she was a senior leader everyone admired (you’d 100% know of her if I told you her name), she had very little knowledge of how to negotiate. Don’t get me wrong — she knew how to ask and be assertive, but she was much less comfortable “playing the game.”

And she’s not alone.

Regardless of how senior or junior you are, most tech folks struggle with negotiation. Partially this is because compensation is set up to be intentionally misleading. Partially it’s because sticking up for yourself is nerve-racking AF.

Here are the 10 commandments to negotiation I wish everyone knew:

1. Negotiation starts earlier than you think

Every recruiter worth their salt will ask about your salary expectations when you first start interviewing. Do not — I repeat, do not — give them a number.

What to do instead: Ask for the range they’re budgeted for the role.

How to say it: “Can you tell me the salary band for this level? Happy to let you know if it’s within my range, and we can discuss specific numbers later when I’ve met the team.”

Bonus points: If you’re junior/mid, time all your interviews so you get offers around the same time. If you’re senior, get some press before you start meeting folks.

2. Mine for intel during interviews

Go into the interview ready not just to answer questions but to ask some of your own. You will use this as ammunition to negotiate later. Here are a few examples of what you should ask:

  • What’s the biggest priority for the team right now?
  • Why is this role open?
  • What’s the biggest challenge for someone stepping into this role?
  • How does the org structure on the team work?

3. Don’t give in to the pressure

Once you’ve been offered the role, the recruiter’s job shifts from evaluating you to closing you. Most experienced recruiters will ask you again to put up a number for your salary. Clever recruiters may even tell you that they “will go to bat for you.” Yeah, no thanks.

What recruiters say: “If you give me your number, I will make it happen for you.”

What they mean: “I’ll get you something lower, but kinda close to what you asked for.”

4. At FAANG, your recruiter may have no say at all

At FAANG-size companies (i.e. over 5K employees), compensation is heavily formulaic. In fact, there is often a separate team — the “compensation committee” — who sets your salary. They take into account your background, interview performance, and level. They give the recruiter a number to go with. The recruiter then gives you the number, and every time you negotiate they have to go back to that committee to ask for a re-evaluation.

What do clever recruiters do? They get your number up-front to save some legwork.

Unfortunately, this may hurt your chances of getting more on your offer later. It also deprives you of some valuable data — where you fall in the level/salary band. If you get caught in this loop, quickly turn the tables: most companies will consider “new information,” like another offer, to reopen a negotiation. Don’t forget, an offer to stay from your existing company also counts!

5. Read between the lines

Your initial offer speaks volumes, if you know how to interpret the data. Here are a few scenarios you should consider:

Let’s say you’re applying for an L6 role at a big company.

Initial offer comes in low: The team may have felt that you have a lot of “room for growth.” In this case, my advice is to dig deeper and ask the interviewer to share feedback from folks who met you to fix any misconceptions before you ever negotiate. Telling someone you want more money because you’re “the greatest PM ever” while the team felt you were “meh” is not going to fly.

Middle of the road: You got “the number” (the medium opening number that’s basically a template recruiters use). It’s the most common opening offer — companies do this to reduce risk of lawsuits. Over 80% of people get it. It likely means you don’t have a strong advocate on the interview loop. Do not negotiate until you match with a team and you have a manager batting for you.

Initial offer comes in top-of-band: There was likely a discussion about giving you a higher level. Many times in this case, you can push for an “out-of-band” offer — essentially getting paid for an L7 while you’re an L6.

6. At a startup, the playbook is different 

You may be dealing with the founder directly. It’s very likely there is no range for the role, as smaller companies have much less access to salary data. The goal at the initial offer conversation is to understand three things:

That last one can be tricky because you need data the recruiter may be reluctant to give — the option strike price, preferred price, number of outstanding shares — and you need to understand how options work. At last, get ready to ask:

“What is the valuation based on?”

And get ready to not get a straight answer until you’ve asked five times (yes, this is normal).

TL;DR: Ask the questions an investor would ask because, *news flash*, you are now an investor — but instead of cash, you’re staking your time and earning trajectory on the company’s success. You can meet with the investors too; it’s 100% OK to ask for that when the company is early-stage.

Lastly, 2021 has been a weird year for startup compensation, so much of the data from previous years is unreliable. Remote work, abundant access to capital, and greater trust in international talent have skewed things quite a bit. Still, I find the Holloway Guide ranges to be a good starting point.

7. Your job is to win hearts and minds

It can be tempting to think you need to negotiate now that you have data. Nope, not yet. The next step, instead, is to upsell your worth before you come back with any kind of counteroffer. This is especially important if you’re going for a senior role.

What to do next: Ask for follow-up meetings with decision makers. If you’re a Director or higher, you can usually ask to meet with any VP and possibly C-level execs. VPs can often meet with the CEO and even board members. Take your time; this is important if you want your salary to reflect your value. If everyone wants you, you’ll be calling the shots later.

How to run these effectively: Come prepared with three things, tailored to who you’re meeting:

  • Questions about how you can create meaningful impact
  • Ideas based on your interviews so far
  • Bonus points: discussing obstacles to your taking the role and making them sell you on it

8. OK, now get some good data

Did you know that women make only 47 cents in equity for every dollar a man makes? A HUGE reason for that is that many women don’t fully evaluate their offer before negotiating. Let’s change that. Particularly if you are a woman, ask yourself these questions:

9. Comparing offers

Not all offers are made equal — in fact, they are intentionally confusing. At Google, you may get a front-loaded vesting schedule on your stock; at Amazon, sizable cash bonuses the first two years. It seems obvious that you should look at the comp, but that’s not everything:

  • Which company has a better trajectory?
  • How do promotions work?
  • Is your manager influential enough to pull for you when needed?
  • Is your product or team visible enough to get good resourcing?
  • What’s the company brand worth to your earnings trajectory?

TL;DR: Getting paid more up-front doesn’t always mean you’ll make the most overall. Plan carefully.

10. Time to make an ask

It can be awkward to ask for more money, but trust me, everyone expects you to do it. On top of that, it doesn’t help that so much of the advice out there is conflicting. Let’s set the record straight:

“I need a competing offer.”

MYTH: You absolutely do not need multiple offers. Just being able to say you’re speaking to other companies is sufficient — you can quote the expected salaries for other roles if needed.

“I need to provide copies of my other offers.”

MYTH: Nope, nope, nope (even though Google in particular loves to ask for them). You signed an NDA before every interview, so you can always use that as a reason.

“I should send the recruiter an email with my ask and justification.”

MYTH: Negotiating via email = MAJOR CRINGE and definitely a worse outcome. I know there are folks selling fill-in-the-blank templates out there. My advice if you want a meaningful/large increase is to have the conversation over the phone.

“If I find a number online, I can quote it as a reason to get more.”

MYTH: Nothing boils a recruiter’s blood more than “It says X on Glassdoor.” Compensation is an exact science — have arguments prepared that are specific to your situation.

“The best way to get more is to reiterate how qualified I am.

MYTH: You already got interviewed and everyone’s read your resume. That’s how you got your initial offer; now you need to build additional arguments. Use the information you collected during the interview about what challenges the team is facing — maybe that increases the scope of the role? Discuss why leaving your current role will be hard — are you critical to your current team? In other words: instead of asking for money, make them give you more money by bringing in obstacles the recruiter needs to overcome to close you.

“I need to be aggressive and threaten to walk if they don’t match.”

MYTH: LOL, let me know how that goes for you. My guess is you’ll get a mediocre increase worded as a “final offer.” If you want big moves, I’m talking $100K+ more, you need to collaborate with your recruiter, not make them an enemy.

As a final word of wisdom: Start with negotiating your overall compensation, not individual components. For example, ask for “500K” and then the next round ask “Can I have X more equity?” Then, when you’ve exhausted all other avenues, ask for a signing bonus. If you still need more help, you can always read our guide.

Now that you’ve got all these RSUs in your compensation…

If your new RSUs are more than 10% of your liquid net worth, you should make a plan to diversify ASAP. Holding a concentrated position can translate into greater portfolio volatility, which has been shown to reduce compounded growth rates and future wealth. At Candor we help you automate RSU diversification by converting your stock weekly, even during blackout periods. You can find us here.

Thanks, Niya!

Till next week, and have a fulfilling and productive week 🙏


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Browse more open roles, or add your own, at Lenny’s Job Board.

 

By: Lenny Rachitsky

Guest post by Niya Dragova, co-founder of Candor

Source: The 10 commandments of salary negotiation – by Lenny Rachitsky – Lenny’s Newsletter

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IMF Cuts Global Growth Forecast Amid Supply Chain Disruptions, Pandemic Pressures

The IMF, a grouping made up of 190 member states, promotes international financial stability and monetary cooperation. It also acts as a lender of last resort for countries in financial crisis.

In the IMF’s latest World Economic Outlook report released on Tuesday, the group’s economists say the most important policy priority is to vaccinate sufficient numbers of people in every country to prevent dangerous mutations of the virus. He stressed the importance of meeting major economies’ pledges to provide vaccines and financial support for international vaccination efforts before new versions derail. “Policy choices have become more difficult … with limited scope,” IMF economists said in the report.

The IMF in its July report cut its global growth forecast for 2021 from 6% to 5.9%, a result of a reduction in its projection for advanced economies from 5.6% to 5.2%. The shortage mostly reflects problems with the global supply chain that causes a mismatch between supply and demand.

For emerging markets and developing economies, the outlook improved. Growth in these economies is pegged at 6.4% for 2021, higher than the 6.3% estimate in July. The strong performance of some commodity-exporting countries accelerated amid rising energy prices.

The group maintained its view that the global growth rate would be 4.9% in 2022.

In key economics, the growth outlook for the US was lowered by 0.1 percentage point to 6% this year, while the forecast for China was also cut by 0.1 percentage point to 8%. Several other major economies saw their outlook cut, including Germany, whose economy is now projected to grow 3.1% this year, down 0.5 percent from its July forecast. Japan’s outlook was down 0.4 per cent to 2.4%.

While the IMF believes that inflation will return to pre-pandemic levels by the middle of 2022, it also warns that the negative effects of inflation could be exacerbated if the pandemic-related supply-chain disruptions become more damaging and prolonged. become permanent over time. This may result in earlier tightening of monetary policy by central banks, leading to recovery back.

The IMF says that supply constraints, combined with stimulus-based consumer appetite for goods, have caused a sharp rise in consumer prices in the US, Germany and many other countries.

Food-price hikes have placed a particularly severe burden on households in poor countries. The IMF’s Food and Beverage Price Index rose 11.1% between February and August, with meat and coffee prices rising 30% and 29%, respectively.

The IMF now expects consumer-price inflation in advanced economies to reach 2.8% in 2021 and 2.3% in 2022, up from 2.4% and 2.1%, respectively, in its July report. Inflationary pressures are even greater in emerging and developing economies, with consumer prices rising 5.5% this year and 4.9% the following year.

Gita Gopinath, economic advisor and research director at the IMF, wrote, “While monetary policy can generally see through a temporary increase in inflation, central banks should be prepared to act swiftly if the risks to rising inflation expectations are high. become more important in this unchanged recovery.” Report.

While rising commodity prices have fueled some emerging and developing economies, many of the world’s poorest countries have been left behind, as they struggle to gain access to the vaccines needed to open their economies. More than 95% of people in low-income countries have not been vaccinated, in contrast to immunization rates of about 60% in wealthy countries.

IMF economists urged major economies to provide adequate liquidity and debt relief for poor countries with limited policy resources. “The alarming divergence in economic prospects remains a major concern across the country,” said Ms. Gopinath.

By: Yuka Hayashi

Yuka Hayashi covers trade and international economy from The Wall Street Journal’s Washington bureau. Previously, she wrote about financial regulation and elder protection. Before her move to Washington in 2015, she was a Journal correspondent in Japan covering regional security, economy and culture. She has also worked for Dow Jones Newswires and Reuters in New York and Tokyo. Follow her on Twitter @tokyowoods

Source: IMF Cuts Global Growth Forecast Amid Supply-Chain Disruptions, Pandemic Pressures – WSJ

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The Future Is Looking Up for Small Businesses But Hiring Struggles Continue

A shortage of workers remains a big concern for business owners, and there’s no clear evidence yet that the end of federal unemployment benefits is boosting the labor supply

A lot has changed since unemployment reached a record rate of 14.8 percent in April 2020. Job openings are at their highest number since 2000 — and businesses can’t seem to fill them fast enough.

After any number of pandemic-related setbacks, small businesses are once again optimistic about the near future. Nearly three-fourths expect to increase sales in the next six months — but hiring struggles are putting a damper on these prospects, according to a survey of 500 small-to-medium-size businesses conducted in August 2021 and released yesterday by PNC.

Labor availability is the most-cited concern, and of the those experiencing hiring difficulties, 58 percent point to enhanced federal unemployment benefits as the culprit. With expanded federal unemployment benefits having ended on Labor Day — reducing unemployment pay by $300 a week — businesses widely believed this cut-off would lead to a surge in job applicants.

But the expected surge hasn’t yet materialized. A study released in late August authored by economists Kyle Coombs of Columbia University, Arindrajit Dube of the University of Massachusetts Amherst, and others, showed that in the 22 states that ended these federal employment benefits earlier in June, there was only a small rise in employment in subsequent months — 4.4 percent.

Small businesses are now addressing the labor shortage directly by improving pay and benefits. Of those businesses surveyed, more than four in 10 say they’ve increased compensation to help attract and retain talent, and 44 percent have started allowing more flexible work arrangements. Nearly half have also begun implementing improved health and safety measures.

These changes don’t come without a cost. More than half (54 percent) of business owners surveyed say they anticipate raising prices to compensate for increased labor costs and inflation. Once this cost is passed on to consumers, individuals who previously received federal unemployment benefits may, at last, feel increasing financial pressure to re-enter the job market.

By Rebecca Deczynski, Staff reporter, Inc.@rebecca_decz

Source: The Future Is Looking Up for Small Businesses — But Hiring Struggles Continue | Inc.com

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The Psychological Toll of Wanting Your Kid To Be Perfect

It’s called “other-oriented perfectionism,” and it can have a negative effect on children. Here’s why it happens.

Joliene Trujillo-Fuenning, who lives in Denver, Colorado with her two kids, ages 3 and 22 months, has some pretty clear perfectionist tendencies. If she sends an email with a typo in it, she says, “It will drive me nuts for a solid week or two.” After her husband cleans the bathroom, she has to fight the urge to criticize. (Sometimes she’ll just clean it again.)

And when it comes to her 3-year-old’s education, Trujillo-Fuenning says, “I have been very much struggling with the fact that she doesn’t want to write letters,” and finds herself thinking, “You are supposed to be at this point by three and a half or four, and if you don’t do it, you’re never going to.”

What Trujillo-Fuenning struggles with is something called other-oriented perfectionism. (You may have seen a shorter piece I wrote about the phenomenon for the Atlantic back in July.) Other-oriented perfectionism bears similarity to self-oriented perfectionism, when a person puts tremendous pressure on themselves to be perfect and then self-flagellates when they can’t be.

It’s also a little bit like socially prescribed perfectionism, where one internalizes the need to be perfect thanks to perceived pressure from others. The big difference is that with other-oriented perfectionism, unrealistic expectations are directed at, well, others.

When a parent sets exacting standards for their child and assumes a critical attitude, it can change how they parent (to their child’s detriment) and leave the parent bitter, resentful, and sometimes even wishing they’d never had children. That’s particularly problematic in light of new research suggesting that both parental expectations and parental criticism have been on the rise.

The impulse behind child-oriented perfectionism comes mostly from early life experiences and societal forces outside individuals’ control, but understanding — and interventions — can help thwart it, improving the wellbeing of both parent and child.

Natalie Dattilo, Ph.D., a psychologist at Brigham & Women’s Hospital and instructor of psychiatry at Harvard Medical School, has a patient roster made up mostly of young doctors, some of whom are the targets of other-oriented perfectionists who are “looking around and wondering why everybody [they] work with is incompetent.” For a supervisor like that, she said, “There is going to be an over-reliance on control, especially wanting to control how people do things.”

The other-oriented perfectionist seems self-assured. They always know the best way to do things and everything would be splendid if only others weren’t so flawed.

“On the surface it looks like grandiosity,” said Thomas Curran, Ph.D., an assistant professor of psychology at London School of Economics and Political Science, “but at root, it’s really a profound insecurity about place in the world and whether you’re worth something.” The other-oriented perfectionist’s judgment, he said, is actually just “my way of projecting the things that I dislike in myself onto other people.”

People become other-oriented perfectionists in a variety of ways discussed in the book “Perfectionism: A Relational Approach to Conceptualization, Assessment, and Treatment.” Oftentimes a cocktail of other types of perfectionism is to blame. Trujillo-Fuenning worries about her daughter’s progress because she wants the best for her, but there’s something more than that.

“I had a friend who pointed out that her language, her enunciation, her knowledge is pretty advanced for her age,” she explained, “And immediately, I had this sense of like, ‘Ha!’ It had nothing to do with me! Yet you still have a part of your brain that’s like, ‘She speaks well. That means I did my job right.

If she reads early, I did my job right.'” The pressure Trujillo-Fuenning feels to be perfect requires being — and being perceived as — a perfect parent. “How you’re doing as a parent is a reflection of who you are,” she said, “There’s no separation there in my head.”

In a paper published in 2020, Konrad Piotrowski, Ph.D., an assistant professor of psychology at SWPS University in Poland, reported that both mothers and fathers there “tend to accept to a greater extent the mistakes and ‘imperfection’ of their children than those of their partner.” But sometimes they don’t.

John Lockner’s experience supports that idea. He was a stay-at-home dad for years and told me, “I kind of still am,” since he works part-time and spends the rest of it with his two teenage sons. “It’s definitely a struggle not to be on them all the time,” he said, but he knows that’s more about him than them. “I never wanted to be a manager, because I know I would expect my employees to do their best, and it would be very hard for me when they don’t,” he told me.

As one of just a handful of dads involved at their old school, Lockner said, “I felt this pressure to be better, and because of that my kids needed to be better.” With up-to-the-minute access to their assignments and grades through an online portal, he’d issue reminders on the drive to school: “You have to be sure to check on that and make sure it was turned in” or “You’re going to ask for that extra credit, right?” And he’d grill them on test results as soon as they got into the car at pickup.

But now, he said, “I’m kind of working on myself, to let some of that go.” What seems to be the key determinant is which relationship—the romantic one or the parental one—is more strongly associated with the parent’s self-esteem. Those who hang their identity on their parental role, like Trujillo-Fuenning, are more likely to experience child-oriented perfectionism than those who do not, Piotrowski theorized.

The impact of other-oriented perfectionism on children

That’s likely a good thing for his kids. Curran, the British perfectionism researcher, looked at a questionnaire that’s been given to cohorts of young people for decades. He and his team found that current college students perceive that their parents were more expectant than past generations — which is problematic, because studies (old and new) tie a caregiver having performance-oriented goals to controlling, critical parenting.

Though the research is murky, because different forms of perfectionism both overlap and function in distinct ways, children of parents who are perfectionists likely have higher odds of developing psychological distress, including anxiety and depression. Even when the impact falls short of clinical classification, children whose parents expect them to be perfect often grow up in homes characterized by conflict and tension. “It’s going to be a pressure cooker,” Curran told me.

The end result is often another generation of perfectionists. A 2017 study of 159 father-daughter dyads found a tie between “controlling fathers who demand perfection” and perfectionist daughters. And Curran’s own research has found that as parents’ expectations and criticism have increased, so too have rates of adolescent perfectionism.

We make jokes about perfectionism. (Did you hear the one about the perfectionist who walked into a bar? Apparently, it wasn’t set high enough.) But it’s a truly stressful way to live, Dr. Dattilo said, “Always striving to prove that you are capable, to prove that you are worthy, prove that you are successful based on other people’s evaluations.”

It should come as no surprise then, that there are, in Curran’s words, “huge, uncharacteristically strong correlations” between perfectionism and psychological distress, including anxiety, depression, suicidal ideation, and anorexia.

“The data’s never that clean,” he told me. Gayani DeSilva knows what it feels like to be one of those data points. “My parents really did put a lot of pressure on me as a kid to be perfect,” recalled the child and adolescent psychiatrist who practices in Southern California. “I had to have straight As, couldn’t have an A-minus.”

When she carried a D in Calculus at one point, “I was so afraid that I actually thought that my parents were going to kill me.” Now looking back with a therapist’s eye, she said, “I couldn’t imagine them actually physically harming me, I just knew that I was gonna die.”

She internalized their exacting standards, “There was just no room for anything other than what they expected.” And when she couldn’t meet them, she said, “I faced all this guilt, like, ‘Why couldn’t I do it?'”

Josh McKivigan, a behavioral health therapist based in Pittsburgh, Pennsylvania, sees an impact at both ends of the economic spectrum. For kids of highly educated, well-off parents, he said, “You’d see them well put together, amazing grades, but behind the scenes, they’re barely holding it together. The only type of school they feel is acceptable is an Ivy League. They say things like, ‘I couldn’t imagine going to UCLA.'”

McKivigan also works with a refugee population. With these kids, he sees pressure to make something of a parent’s dangerous immigration journey. They end up saying, “I gotta make this right. I can’t let them down,” McKivigan told me.

But some kids don’t develop perfectionism of their own, instead responding to a parent’s pressure by rejecting their goals. After all, if someone is impossible to please, why bother trying?Nicole Coomber, Ph.D., an assistant dean at the University of Maryland’s Robert H. Smith School of Business, said research on motivation explains why.

“Autonomy is an important piece of this where you have to actually buy into whatever the goal is,” she notes. Requiring that a child practice piano for hours each day when they’d rather be playing soccer “can really backfire,” she added. Kids can end up feeling like their parent’s project or product — and push back by quitting. No matter how much bravado accompanies that move, there’s often also a sense of having let themselves and their parents down.

DeSilva failed her first year of medical school, she said, “because I just didn’t know how to ask for help.” After a car accident, she quit residency and then spent two years in therapy: “Once I was able to admit, ‘I’m not perfect,’ I was successful at pretty much everything I wanted to do, and I didn’t have to be anxious about it. I knew I could do it, whereas before, when I had to be perfect, I was really insecure.”

After she worked through her perfectionism, she said, “I was trying for my own standard, my own goals, my own desires, instead of somebody else’s standard for me.”

Other-oriented perfectionism is bad for parents too, but they can change

Child-oriented perfectionist tendencies aren’t just bad for kids. Trujillo-Fuenning started to feel burned out by her high standards in the parenting realm. The cumulative effect of a thousand little maximizations, like “trying to make sure they were eating the right things every meal,” became overwhelming and depleting. “To be honest, that’s part of why I went back to work,” she told me.

In his 2020 study, Piotrowski found that parents who target their children with other-oriented perfectionism tend to display higher levels of stress, dissatisfaction with parenthood, and feeling so burdened by the parental role that they regret parenthood entirely. He explained, “For mothers characterized by increased other-oriented perfectionism, family life is probably associated with many frustrations and stress, hence the focus on alternative visions of themselves that seem to be better than [being] a parent.”

When she starts trying to work on literacy again, Trujillo-Fuenning said, “I have to pull back and remind myself, if she’s fighting you, just let it go.” The same thing goes for micromanaging her kids’ appearance. “I’m catching my own insecurities of like, ‘You don’t look well put together. People are going to look at you and think I’m not taking care of you.'” But to avoid acting on those impulses requires “a constant mental check,” she told me.

Every now and then Lockner’s wife would say, “You’re being too hard on them. You are expecting too much.” But that doesn’t seem to be what made him change. His sons are at an all-boys school now, and, Lockner said, “Being around other groups of dads made a difference. Listening to how they act, and how their kids are, made me think, ‘Maybe I can ease up a little. My kids really are pretty good.'”

This sort of shift is what Curran sees happening in society as a whole—only in reverse.Other-oriented perfectionist parents aren’t the only ones ratcheting up expectations and pressure. Some parents don’t want to push, Curran said, “but they feel like they have to in this world where elite college is harder to access, where you basically have an economy where the middle class is downwardly mobile with increasing costs of living and stagnated income, and you’ve got chronic and increasing inequality.”

And the pressure can be even more intense for parents like Eric L. Heard, author of “Reflections of an Anxious African American Dad.” He described feeling “the need for immediate feedback” from his son’s teachers: “I always held a fear that I would not address some problem and he would head down a well-worn road of destruction” for Black men, he wrote. “My mind was haunted by the crippling thought of how I would be judged …. I would wear a permanent brand … a large white D for being a deadbeat dad who couldn’t save his son.”

If you’re a parent ruminating on the odds stacked against your child, it is rational to drive them to work harder, achieve more, and be better. Other parents react the same way, the result of which is a frenzied, fearful “rug rat race.” Once that starts to kick in, Curran said, “it’s really hard to stop, at a societal level. It creates an echo chamber where everybody’s engaging in unhealthy behaviors and no one wins.”

He doesn’t just mean that we all lose when we succumb to perfectionism. It also just plain doesn’t work. “Everybody’s engaging in this frantic upward comparison, and no one gains an advantage,” he said. “We just move the average of what’s expected further and further. It’s looking bad.”

But individuals can push back against a trend of overwhelmed young people and parents who, like the old Lockner, feel no choice but to be “the bad guy.” Now that he’s backed off, he said, “It’s easier on me. It’s easier on them.” They do more for themselves, and “they seem more willing to do stuff if I’m not on them all the time.” Truth be told, he likes himself more now.

Therapists can help their clients get there. Dr. Dattilo would tell an other-oriented perfectionist they need to believe it when someone says, “I’m doing the best I can.” Parents can interrogate their perfectionism in psychotherapy: Why is having a perfect child so important to me? Where did this need come from? And cognitive-behavioral therapists push people to fact-check their anxiety: What level of pressure is really necessary to prepare your child to live a good life? Is parental pressure truly the most effective way to forestall your fears? What will happen if you just back off?

When it came to parenting her son, DeSilva, the perfectionist-turned-psychiatrist, said she made a conscious decision. “I was going to raise him to have his own ideas and his own set of standards and really, for me to learn about and help him develop his strengths. And also, to really be comfortable with his weaknesses and vulnerabilities.” That puts her at odds with her own parents. When it comes to her son’s homework, they think, “It’s your job.

You have to make sure his homework is done,” she said. His grandparents even tell her to fix it for him “so it’s correct.” Instead, she explained to her son the consequences of not doing homework, or not doing it well, and let him decide. “He didn’t like it that his teacher was upset with him. So the next time he did his homework, he did it as best he could.”

Tying it all together

Yet individual parents can’t reverse course alone. Putting aside economic inequality for a minute, Curran said, “I think if the pressures of things like standardized testing — for young people to perform perfectly in school at such a young age — could be recalibrated downwards” it would take pressure off parents too. He called online grade portals “even scarier.”

If kids were just allowed to learn, to be, without all the tracking, assessing, and ranking, maybe more parents would feel like they can afford to break — and encourage their kids to break — the link between one’s accomplishments and one’s worth.

As Curran talked, I realized that much of the ground we’ve covered in my Are We There Yet? column is more related than I’d thought. Pressure on parents, including around the “one right way” to parent, produces intensive parenting and lack of autonomy for kids, and it also contributes to parents’ perfectionism and even abusive behavior, all of which lead to faltering mental health in adolescents, often with their own perfectionism as the mechanism. It’s a perfect storm for stressed out, sexless parents who worry they don’t measure up raising stressed out, helpless kids who worry they don’t measure up. To borrow Curran’s words, “It’s all interconnected.”

By Gail Cornwall

Gail Cornwall works as a mother and writer in San Francisco. Connect with Gail on Twitter, or read more at gailcornwall.comMORE FROM Gail Cornwall

Source: The psychological toll of wanting your kid to be “perfect” | Salon.com

.

Related Contents:

Child Development: Middle Childhood

Securing attachment: The shifting medicalisation of attachment and attachment disorders

Evolutionary Developmental Psychology: A New Tool for Better Understanding Human Ontogeny

Activity Systems Analysis Methods: Understanding Complex Learning Environments

Developmental psychology: History of the field

Developmental Psychology Studies Human Development Across the Lifespan

Child Development: Preschoolers

Attachment Theory: Social, Developmental, and Clinical Perspectives

Principles of Developmental Psychology

Maternal Employment and Child Development: A Fresh Look Using Newer Methods

Separation Anxiety in Children

Systems in development: Motor skill acquisition facilitates three-dimensional object completion

Speech and Language Developmental Milestones

Physical Growth of Infants and Children – Children’s Health Issues

Dynamic Systems Theory and the Complexity of Change

Freud and the Psychodynamic Perspective | Introduction to Psychology

Mind in society: the development of higher psychological processes

Mapping brain maturation

Disturbances of Attachment and Parental Psychopathology in Early Childhood

Malnutrition at age 3 years and lower cognitive ability at age 11 years

Parental Employment and Child Cognitive Development

Wall Street Seeks To Make Up For Long Hours With High Salaries

(Bloomberg) – Rooms at the Fairmont Royal Pavilion, located on Barbados’ platinum beaches, can cost more than $ 1,000 a night. In the morning, you can enjoy the catamaran snorkeling cruise and return ashore in time for afternoon tea.

For some Houlihan Lokey Inc. employees, this offer is now on the table: a five-night stay at this Caribbean haven, with money from the investment bank, as a reward for a year of record earnings. The offer is also a subtle plea to the company’s younger employees: please don’t quit.

That last phrase echoes across Wall Street, where turnover and burnout rates among young workers are accelerating. Banks have tried to turn the tide with raises, bonuses, vacations, and even free sports equipment. For all that, being a young banker in America has never been more lucrative.

However, the problem is that it has also never been more lucrative for aspiring workers to work outside the golden world of finance, as the gap between banks and other employers such as technology companies has narrowed.

“In terms of making money, is this the best time to be a banker? Sure, ”says executive recruiter Dan Miller of True Search. “Now, in terms of lifestyle, is this a terrible time? Absolutely”.

A presentation prepared by 13 first-year analysts at Goldman Sachs Group Inc. earlier this year prompted a reckoning on Wall Street after it highlighted the working conditions of junior bankers – some of them working 100 hours a day. the week while his physical activities and mental health suffered. Goldman responded by cutting weekend hours and promising to increase staff at its busiest businesses.

Earlier this year, a presentation prepared by 13 first-year analysts at Goldman Sachs Group Inc. prompted a reckoning on Wall Street after it highlighted working conditions for junior bankers – some of them working hundreds of hours a day. the week as his physical activities and mental health suffered. Goldman responded by cutting weekend hours and promising to increase staff at its busiest businesses.

However, some industry veterans have made harsh statements against those who complain about the workload. Cantor Fitzgerald’s Howard Lutnick suggested that some of the young workers considering leaving finance may simply not be ready for it. “Those young bankers who decide they are working too hard, choose another way of life,” he told Bloomberg TV earlier this month.

Furthermore, the exhausting workload of bank analysts has continued and, in some cases, worsened. When COVID-19 took over the nation last year, the “work hard, play hard” mantra became “work hard, sit on your couch,” all while the economy accelerated and deals proliferated.

Frustrated and overworked, many of them turned to the anonymous ex-banker behind the popular “Litquidity” financial meme account for support. In an interview, he said he was inundated with messages on Twitter and Instagram from young industry colleagues feeling fed up and weighing whether the work was worth it.

Lit, as he calls himself, was at the time a senior associate in investment banking and knew very well what they were going through. He too felt exhausted and stressed, and at one point he went to see a doctor to have his heart palpitations checked.

“Do you know the feeling when your stomach just sinks in? I felt it in my heart, “he said by phone from New York’s Central Park. The doctor concluded that his symptom was probably related to stress. Last winter, Lit quit her job to focus on growing the Litquidity brand and writing a daily newsletter. He says he is also working to launch a venture capital fund.

It is not only in finance where workers are becoming more demanding, a similar scenario that occurs throughout the country. Companies from McDonald’s Corp. to country clubs in Nashville, Tennessee, have raised wages and offered hiring bonuses to attract new workers. From March to May, the rate of American workers who voluntarily quit their jobs rose to its highest level in at least two decades. In Washington, lawmakers are arguing about raising the minimum wage to $ 15 an hour.

Of course, the isolated world of finance and some other professional services operate on a significantly higher plane in terms of pay. Last month, dozens of the nation’s top law firms raised first-year salaries to $ 202,500, roughly a couple thousand. They also offer multiple annual bonuses and additional time off as they struggle to retain talent and their workers face burnout.

Miller, who co-leads True Search’s financial services practice, says today’s young bankers have far more options than their peers previously had. Banks and consulting firms have long been a source of recruiting for private equity and, more recently, venture capital, technology, and fintech. These days, with many of those industries hiring at a record rate, many young bankers no longer have to hold out for two years. They can leave earlier or skip the stay in finance altogether.

Some bank bosses have promised to ease the pressure. After the junior analysts’ presentation, Goldman CEO David Solomon promised to better enforce the rule that they should have Saturdays off. But the sentiments carved in stone in banking culture for decades do not change easily. Additionally, Lit noted that Goldman’s policy of not working on Saturdays has been in effect since 2013.

“There has to be a way to make it stick,” he said. “What’s the use of earning half a million if you work 20 hours a day?

Source: Wall Street seeks to make up for long hours with high salaries – Explica .co

The COVID-19 Symptoms Doctors Are Seeing The Most Right Now

More than a year into the coronavirus pandemic, experts have unraveled so many mysteries about how to treat the virus and prevent it. But at the same time, SARS-CoV-2 is always changing as new variants emerge. And accordingly, the ways in which the virus affects people seem to be shifting as well.

Here’s a quick rundown of some of the most common COVID-19 symptoms doctors are seeing right now, and how vaccines and variants fit into this picture.

The most common symptoms — such as cough, fever, and loss of taste and smell — are all still pretty much the same.

Since the COVID-19 pandemic began, the most common symptoms of the virus included a cough (often dry), shortness of breath, a fever of 100 degrees or higher, and the sudden loss of taste and smell.

Those, however, are by no means the only frequent symptoms. People also report everything from headaches to diarrhea, all of which are listed on the Centers for Disease Control and Prevention’s rundown of common possible symptoms.

For the most part, that list of the most common symptoms hasn’t really changed. “The symptoms are really the same as before. It’s the headache, cough, fatigue, runny nose, fever — those kind of generalized flu-like symptoms,” said Jonathan Leizman, chief medical officer of Premise Health, a health care company headquartered in Tennessee.

The emergency warning signs of COVID-19 have also stayed pretty much the same. Those include issues like trouble breathing, persistent chest pain or pressure, and new mental confusion.

With the delta variant, some people’s symptoms might look more like a common cold.

The delta variant (B.1.617.2) is circulating widely around the globe and is now the main strain here in the United States; it’s hitting areas with high numbers of unvaccinated Americans particularly hard.

There is some initial evidence that the symptoms associated with delta might be a bit different than those with the original SARS-CoV-2 virus, though experts caution that it remains too early to say definitively.

“The information we’re getting from the U.K. and Europe and some initial surveys here in the United States is that the delta virus infection seems to be more likely to produce symptoms that are more typical of a common cold,” said William Powderly, co-director of the Division of Infectious Diseases at Washington University School of Medicine in St. Louis, which has recently seen a big uptick in COVID-19 cases and hospitalizations. “That’s a sore throat, mild cough and nasal congestion.”

“The symptoms we were seeing earlier on, which were much more like lower respiratory and fever, are less common,” Powderly added. “That isn’t to say they don’t happen. But there does seem to be a shift in the frequency and type of symptoms being reported.”

Experts don’t yet understand why the symptoms might be slightly different. It could be simply that there are now more infections in younger people, Powderly said. At the same time, researchers are exploring how variants classified as “of concern” and “of interest” — including delta but also lambda and others — might be different in terms of their ability to be transmitted or to make people more or less sick.

The newer coronavirus variants could be making people sicker.

While some people infected with the delta variant have symptoms that are in line with a common cold, there is also preliminary evidence suggesting that other people’s symptoms may be “more intensely felt” with delta, Leizman said.

“We have seen that hospitalization rates are seemingly increased in younger populations with the delta variant,” he offered as an example.

But at this point, there’s no scientific consensus on whether the delta variant is likely to make people sicker than the initial strain, simply because it (and other variants) are so new. The best we have at this point are one-off studies, surveys or even just anecdotal information from the field.

“There’s now data coming out of England and Scotland showing that the severity of the disease may be increased, and it may be leading to an increased risk of hospitalization,” said Carlos Malvestutto, an infectious disease specialist at Ohio State University’s Wexner Medical Center.

“People who are not vaccinated are particularly vulnerable because the new variants — and particularly the delta variant — transmits faster and may be causing more severe disease,” Malvestutto added.

Symptoms tend to be mild in those who are fully vaccinated.

While the vast majority of new cases and hospitalizations occur in those who have not been vaccinated against COVID-19 (around 99% of new infections in some parts of the country), so-called “breakthrough cases” do occur among those who’ve received both shots of either of the Pfizer-BioNTech or Moderna vaccines or the Johnson & Johnson single-dose vaccine.

But the symptoms people experience in those instances tend to be relatively mild, according to the data that’s available at this point. About a third of people who got infected after being fully vaccinated were totally asymptomatic, for example.

The CDC now only tracks breakthrough cases that result in hospitalization or death, so there’s just not really robust data looking at how many people experience milder symptoms post-vaccine (or no symptoms at all), nor is there clarity about what variant those people may have caught. Still, there have been high-profile breakthrough infections in the news, like the New York Yankees cluster or entertainment reporter Catt Sadler, who recently said she had contracted COVID-19 after vaccination.

Ultimately, however, the goal of vaccination is not only to reduce transmission but to also drastically reduce hospitalizations and deaths — and the vaccines have done just that.

“The vast majority of individuals who are fully vaccinated do not have those severe consequences of disease, which makes us think the symptoms might be more mild in general for individuals who are fully vaccinated,” Leizman said.

Breakthrough cases also remain rare. As of mid-July, the CDC said that more than 157 million people in the United States had been fully vaccinated. There have been about 5,000 patients with COVID-19 vaccine breakthrough infections who were hospitalized or who died — though not all of those cases were directly attributed to COVID-19.

Which is why health experts are adamant that getting vaccinated is the best thing people can do to keep themselves and others safe — and to avoid developing any kind of symptoms at all.

“I’m in a state where we’re seeing a significant uptick in hospitalized patients … and they’re all people who have not been vaccinated, which is really hard and devastating, because these are completely preventable,” Powderly said.

Experts are still learning about COVID-19. The information in this story is what was known or available as of publication, but guidance can change as scientists discover more about the virus. Please check the Centers for Disease Control and Prevention for the most updated recommendations.

Source: The COVID-19 Symptoms Doctors Are Seeing The Most Right Now | HuffPost UK Wellness

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References :

The Delta SARS-CoV-2 variant first appeared in India in October 2020. This is the fastest-growing variant and is currently outpacing all other variants. This variant contains the “eek” mutation in the Spike protein, which helps the virus evade certain antibodies.  As a result, the Delta variant has shown significantly increased transmission.

This variant is responsible for the dramatic increase in COVID-19 cases in India over the past several months. Additionally, this variant has been identified in over 98 countries across the world as of July 2, 2021. Both the Pfizer/BioNTech (88%) and the AstraZeneca/Vaxzevria (67%) vaccine demonstrated protection was retained against severe disease caused by the Delta variant. Data is still limited relating to vaccine efficacy and the delta variant.

  1. Global Initiative on Sharing All Influenza Data (GISAID)
  2. Network for Genomics Surveillance in South Africa 
  3. Journal- Increased transmissibility and global spread of SARS-CoV-2 variants of concern as at June 2021
  4. Journal- Effectiveness of COVID-19 vaccines against hospital admission with the Delta (B.1.617.2) variant
  5. Sheikh A, McMenamin J, Taylor B, Robertson C. SARS-CoV-2 Delta VOC in Scotland: demographics, risk of hospital admission, and vaccine effectiveness. 

 

Why Emotionally Intelligent People Embrace The Rule of First Things First

I have a recurring nightmare. It goes like this: I’m 16 years old again, back on my old newspaper route. But there’s a major problem: I’m late. I’ve overslept. Now it’s 6:43, and I have 150 newspapers to deliver by 7:00 a.m. If I don’t, I start getting complaints. It’s an impossible task. A wave of immense anxiety immediately follows. Followed by a feeling of pressure, all over my body.

At this point, I usually wake up in a cold sweat–thankful that all of this was simply a dream, until … I realize the dream is related to a real-life situation. The true source of the anxiety, and a real-life feeling of “overwhelm-ed-ness.” After facing this situation over and over, I’ve discovered a rule that helps me to push through those negative feelings, move forward, and do what I need to do.

I like to call it “first things first.”

First things first

When I find myself in an “impossible paper route situation,” I tell myself:

Focus on first things first.

In other words, I narrow my view so as to focus on the first few things I need to do. This allows me to avoid getting overwhelmed by the sheer vastness of the situation, or the huge mountain of tasks before me.

Instead, I make a new list of only two or three things that I need to get done that day.

Then, I look only at the first one, and start chipping away.

First things first has many benefits, but here are four of them:

1. It keeps you moving.

When you have more work than you can handle, the temptation is to not do anything.

But by creating a new list of just two or three tasks, things look manageable again. You regain control of your emotions, allowing you to once more be productive.

2. It builds momentum.

Think about that feeling you experience once you finish a task. Then another. And another.

Next thing you know, you’re hooked. You see results, so you keep going–because at this point it’s easier to keep going than it is to stop. This is what famous psychologist Mihaly Csikszentmihalyi describes as “flow”–that highly focused mental state conducive to productivity.

Once you start building momentum …

3. You see more clearly.

In my nightmare, there’s no light at the end of the tunnel. In fact, there is no tunnel. Just an unscalable mountain.

But once you start building momentum, you build the tunnel. Once you make enough progress, you can clearly see the path forward.

And once you see the path, it really starts to get good. Because now …

4. You believe.

Things are no longer dark.

The impossible task is no longer impossible.

Seeing the path forward turns into hope, and hope turns into reality.

Following the rule of first things first is how:

Entrepreneurs turn complex problems into simple solutions–and then build companies out of them.

Championship sports teams claw their way back from huge deficits.

Singers turn melodies into albums.

Authors turn words into books.

Artists turn sketches into masterpieces.

And paperboys finish their routes–even when they get very late starts.

Source: Why Emotionally Intelligent People Embrace the Rule of First Things First | Inc.com

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Critics:

Motivation is what explains why people or animals initiate, continue or terminate a certain behavior at a particular time. Motivational states are commonly understood as forces acting within the agent that create a disposition to engage in goal-directed behavior. It is often held that different mental states compete with each other and that only the strongest state determines behavior.

This means that we can be motivated to do something without actually doing it. The paradigmatic mental state providing motivation is desire. But various other states, like beliefs about what one ought to do or intentions, may also provide motivation.

Various competing theories have been proposed concerning the content of motivational states. They are known as content theories and aim to describe what goals usually or always motivate people. Abraham Maslow‘s hierarchy of needs and the ERG theory, for example, posit that humans have certain needs, which are responsible for motivation.

Some of these needs, like for food and water, are more basic than other needs, like for respect from others. On this view, the higher needs can only provide motivation once the lower needs have been fulfilled. Behaviorist theories try to explain behavior solely in terms of the relation between the situation and external, observable behavior without explicit reference to conscious mental states.

See also

Stocks, U.S. Futures Dip on Delta Strain Concerns: Markets Wrap

Asian stocks dipped Tuesday amid concerns a more infectious Covid-19 strain will derail an economic recovery. Treasuries and the dollar were steady after gains.

An MSCI index of Asia-Pacific shares was on track for its first decline in six days as countries in the region are struggling to contain the highly transmissible Delta variant of the virus. U.S. futures dipped after technology stocks led U.S. benchmarks to fresh records Monday. New limits on travel from Britain, which is seeing a spike in cases, dragged on cruise operators and airlines.

The Treasury yield curve flattened amid month-end index rebalancing and the break in auctions until July 12, reducing supply. Oil extended a decline with the market expecting OPEC+ producers to increase supply at an upcoming meeting. Bitcoin was steady around mid-$34,000.

Global stocks are poised to close out their fifth quarterly advance amid a worldwide vaccine rollout that powered an economic recovery and sparked concerns about increasing prices pressures and the withdrawal of stimulus measures. The recovery also drove the reflation trade as more economies reopened, though that is being hampered as some countries, especially in Asia, are falling behind in their vaccine strategies.

The U.S. is now the best place to be during the pandemic due to its fast and expansive vaccine rollout stemming what was once the world’s worst outbreak. Meanwhile, parts of the Asia-Pacific region that performed well in the ranking until now — like Singapore, Hong Kong and Australia — dropped as strict border curbs remain in place.

“The Delta variant has also emerged in our client conversations as a potential threat to reflation/inflation,” JPMorgan Chase & Co. strategists led by Marko Kolanovic said. “The economic consequences are likely to be limited given progress on vaccinations across developed market economies. It could, however, pose some risk of a delay in the recovery in countries where vaccination rates remain lower.”

Read: Asean Equities May Have Priced In Virus Setback: Taking Stock

For more market commentary, follow the MLIV blog.

Here are some events to watch in the markets this week:

  • OECD meets in Paris to finalize a proposal to overhaul global minimum corporate taxation Wednesday
  • China’s President Xi Jinping will deliver a speech as the nation marks the 100th anniversary of the founding of the Chinese Communist Party Thursday
  • OPEC+ ministerial meeting Thursday
  • ECB President Christine Lagarde speaks Friday
  • The U.S. jobs report is due Friday

These are some of the main moves in markets:

Stocks

  • S&P 500 futures dipped 0.1% as of 1:26 p.m. in Tokyo. The S&P 500 rose 0.2%
  • Nasdaq 100 futures fell 0.2%. The Nasdaq 100 rose 1.3%
  • Topix index fell 1%
  • Australia’s S&P/ASX 200 Index dropped 0.4%
  • Kospi index lost 0.6%
  • Hang Seng Index retreated 0.8%
  • Shanghai Composite Index was down 1%
  • Euro Stoxx 50 futures were little changed

Currencies

  • The yen traded at 110.56 per dollar
  • The offshore yuan was at 6.4638 per dollar
  • The Bloomberg Dollar Spot Index edged up
  • The euro traded at $1.1913

Bonds

  • The yield on 10-year Treasuries held at 1.48%
  • Australia’s 10-year bond yield dropped five basis points to 1.53%

Commodities

  • West Texas Intermediate crude was at $72.56 a barrel, down 0.5%
  • Gold was at $1,774.24, down 0.2%

— With assistance by Rita Nazareth, Vildana Hajric, and Nancy Moran

By:

Source: Stock Market Today: Dow, S&P Live Updates for Jun. 29, 2021 – Bloomberg

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Critics:

Beginning on 13 May 2019, the yield curve on U.S. Treasury securities inverted, and remained so until 11 October 2019, when it reverted to normal. Through 2019, while some economists (including Campbell Harvey and former New York Federal Reserve economist Arturo Estrella) argued that a recession in the following year was likely,other economists (including the managing director of Wells Fargo Securities Michael Schumacher and San Francisco Federal Reserve President Mary C. Daly) argued that inverted yield curves may no longer be a reliable recession predictor.

The yield curve on U.S. Treasuries would not invert again until 30 January 2020 when the World Health Organization declared the COVID-19 outbreak to be a Public Health Emergency of International Concern, four weeks after local health commission officials in Wuhan, China announced the first 27 COVID-19 cases as a viral pneumonia strain outbreak on 1 January.

The curve did not return to normal until 3 March when the Federal Open Market Committee (FOMC) lowered the federal funds rate target by 50 basis points. In noting decisions by the FOMC to cut the federal funds rate by 25 basis points three times between 31 July and 30 October 2019, on 25 February 2020, former U.S. Under Secretary of the Treasury for International Affairs Nathan Sheets suggested that the attention of the Federal Reserve to the inversion of the yield curve in the U.S. Treasuries market when setting monetary policy may be having the perverse effect of making inverted yield curves less predictive of recessions.

See also

 

America’s Failure To Build Is Driving Home Prices Ever Higher

Some progressive groups oppose rezoning New York's wealthy Soho area to allow more housing

Another month, another explosive rise in home prices.  May’s median annual housing price rose 23.6%, a new monthly record.   Buyers are still buying, helped by low interest and mortgage rates.  But since housing construction hasn’t kept pace with demand and economic growth, it will take more housing production to reduce long-term pressure on prices.

The buying pressure in housing markets is setting records.  Although home sales fell slightly in May compared to April, houses aren’t sitting very long on the market.  According to the National Association of Realtors, total housing inventory is down 20.6% from a year ago.  Properties only last on the market for an average of 17 days, and 89% of sales in May “were on the market for less than a month.”

Given this high demand, we’d expect supply to respond.  Ronnie Walker at Goldman Sachs notes housing starts are rising, hitting their highest levels since 2006.  But it isn’t cooling the market off.  But Walker says despite these higher starts, “red-hot demand has brought the supply of homes available for sale down to the lowest level since the 1970s.”

Walker expects a “persistent supply-demand imbalance in the years ahead.”  New construction will come online, and more sellers eventually will enter the market, but his model foresees “home prices grow(ing) at double digit rates both this year and next.”

Tight future markets are confirmed by Harvard’s Joint Center for Housing Studies (JCHS).  In their 2021 report, these experts say “the supply of existing homes for sale has never been tighter,” and is at its lowest level since 1982.

So where are the houses?  What happened to supply and demand?  JCHS notes several reasons for underproduction, but the primary blame goes to restrictive local policies such as single-family zoning, minimum lot sizes, parking requirements, etc.  A 2018 survey of over 2700 communities found “93 percent imposed minimum lot sizes” with 67 percent requiring lots of at least one acre in size and sometimes more, many in suburban towns.

What about big cities?  Despite perceptions that there’s a lot of development in many cities, not much housing has been built in some.  Between 2010 and 2018, jobs in New York City increased by 22% “while the housing stock only increased four percent.”  Jobs in San Francisco and San Mateo counties rose by over 30% between 2010 and 2019, while new housing permits only rose by 7%.

There are strong political biases in these cities against more construction, but other liberal places are re-examining their housing policies, especially single-family zoning.  A New York Times 2019 analysis confirmed that many cities’ land area is dominated by single-family zoning —70% in Minneapolis, 75% in Los Angeles, 79% in Chicago, 81% in Seattle, and 94% in San Jose.  Combined with excessive parking requirements, zoning policy effectively takes land out of production while pushing its price sky-high and preventing multifamily options.

Cities’ anti-development policy means new housing is pushed further out in the metropolitan area, adding to suburban sprawl, longer commute times, and environmental damage.  Ironically, some progressive environmental groups have allied with anti-development forces, with the net result of fostering suburban sprawl.

In New York City, the left Sunrise Movement has joined with many other groups to oppose “upzoning” for higher density and more development in Manhattan’s Soho neighborhood, one of the wealthiest in the nation.  In contrast, Berkeley California, one of the most liberal cities in the nation, has voted to end single family zoning, persuaded by the argument that such policies result in racially segregated neighborhoods and lack of affordable housing for people of color.

But it isn’t just liberal cities that face this problem.  Even though red states like North Dakota, Utah, and Texas lead the nation in home building, a recent study found that only four of America’s 25 largest metropolitan areas “built enough homes to match local job growth.”  And much of that growth was in outlying suburbs, adding to sprawl and pollution.

Urban economist Ed Glaeser locates a good deal of the problem in the rising power of local citizen groups, especially existing homeowners.  Their housing investments often rise in value with scarcity, and they usually like the existing neighborhoods where they reside and don’t want new residents.

This creates an “insider/outsider” problem that limits housing. As Glaeser notes, current homeowners don’t “internalize the interests of those who live elsewhere and would want to come to the city…their political actions are more likely to exclude than to embrace.”  These anti-housing groups often are labelled “NIMBYs”, for “Not In My Back Yard.”

In response, so-called “YIMBYs” (Yes In My Back Yard) are pushing for policies such as relaxed zoning, allowing multi-family housing (at least duplexes to quadplexes) on single family lots, and allowing denser housing near mass transit stops (“TOD”, for “Transit Oriented Development.”).  They are having some success, but anti-development forces are deeply entrenched and politically powerful in many places around the country.

But would more development create not just housing, but add to affordable housing?  What about the impact on low-income and non-white families, who could face rising rents or displacement from gentrification while still not being able to buy a house?  In my next blog, we’ll look at the tangled racial history of housing development and home ownership. Unless renters and lower-income people can be mobilized to support development, NIMBY opposition to more housing will be hard to overcome.

Follow me on Twitter or LinkedIn.

I’m an economist at the New School’s Schwartz Center (https://www.economicpolicyresearch.org), currently writing a book for Columbia University Press on cities and inequality.  I have extensive public sector experience studying cities and states.  I’ve served as Executive Director of the Congressional Joint Economic Committee, Assistant Secretary of Labor for Policy, Deputy Commissioner for Policy and Research at New York State’s Department of Economic Development, and New York City Deputy Comptroller for Policy and Management.  I also worked as Director of Impact Assessment at the Ford Foundation.

Source: America’s Failure To Build Is Driving Home Prices Ever Higher

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Critics:

The United States housing bubble was a real estate bubble affecting over half of the U.S. states. It was the impetus for the subprime mortgage crisis. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in 2012. On December 30, 2008, the Case–Shiller home price index reported its largest price drop in its history. The credit crisis resulting from the bursting of the housing bubble is an important cause of the Great Recession in the United States.

Increased foreclosure rates in 2006–2007 among U.S. homeowners led to a crisis in August 2008 for the subprime, Alt-A, collateralized debt obligation (CDO), mortgage, credit, hedge fund, and foreign bank markets. In October 2007, the U.S. Secretary of the Treasury called the bursting housing bubble “the most significant risk to our economy”.

Any collapse of the U.S. housing bubble has a direct impact not only on home valuations, but mortgage markets, home builders, real estate, home supply retail outlets, Wall Street hedge funds held by large institutional investors, and foreign banks, increasing the risk of a nationwide recession. Concerns about the impact of the collapsing housing and credit markets on the larger U.S. economy caused President George W. Bush and the Chairman of the Federal Reserve Ben Bernanke to announce a limited bailout of the U.S. housing market for homeowners who were unable to pay their mortgage debts.

In 2008 alone, the United States government allocated over $900 billion to special loans and rescues related to the U.S. housing bubble. This was shared between the public sector and the private sector. Because of the large market share of Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (both of which are government-sponsored enterprises) as well as the Federal Housing Administration, they received a substantial share of government support, even though their mortgages were more conservatively underwritten and actually performed better than those of the private sector.

See also

Break The Five Most Common Outsourcing Reform Myths

Break the five most common outsourcing reform myths

With 41 days to comply with the new regulation on Outsourcing, which comes into force on July 24, five myths prevail among Mexican companies. The new regulatory framework applies to companies of all sizes, however, SMEs are under more pressure because they do not have great internal support or consulting firms to carry out this transition.

In addition to the rush to comply with the new regulations, it must be taken into account that there is some confusion about the functions that can continue to be contracted through outsourcing. For SMEs, companies from 10 to 200 or 300 employees, internalizing the functions that were traditionally handled in outsourcing is complex and represents a challenge. Automation and support are key to successfully undergo this transformation and avoid the associated fines.

To dispel the main myths that exist regarding the new regulation, Business Republic organized a webinar to offer real facts and advice for the new regulation. At the event, Carlos Marina COO of Worky , Lorena Atondo and Gabriel Fernández, both from Reynoso & Atondo, Abogados, SC, agreed that this situation is significant, since it impacts more than 4.7 million workers, 17% of the formal jobs in the country.

And it is that urban myths and fake news abound that cause uncertainty and concern among clients and prospects, Carlos Marina warned.

The myths:

  1. “I can continue with my current outsourcing scheme, since the authority does not have the resources to detect it.”
  2. “I can avoid the new regulations by passing my collaborators to schemes of incorporation into the tax regime, fees, cooperatives or unions.”
  3. “We can pay a minimal amount in cash and the rest of the compensation can be handled through bonuses, commissions and vouchers.”
  4. “I don’t worry about the compensation schemes of the past, as there are no retroactive effects.”
  5. “The internalization of the payroll is too expensive, I better risk possible fines”

Each of these statements are not only false but risky. The specialists clarified that the new regulations are designed to improve the conditions of the workers and that in that spirit, the authority has organized itself to avoid precisely any act of simulation. At this juncture, solution providers have emerged that seem miraculous, but in reality only expose the company and its human capital to unnecessary risks.

Advice

“My advice to all employers is to take preventive measures to comply in a timely manner and to focus on the positive aspects that the internalization of staff brings in terms of employee satisfaction, loyalty, and company productivity,” commented Lorenia Atondo .

For his part, Gabriel Fernández, added that the sanctions are structured to promote broader compliance, since they range from 178,000 pesos to more than 4 million and even criminal sanctions are contemplated. It states, “The authority has full visibility of these myths and others, and is organized to detect and punish through mechanisms of collaboration between institutions and information exchange.”

The internalization of workers represents a change of capital dimensions for companies that currently depend on outsourcing for the management of their human resources. “For small and medium-sized companies, which do not have specialized departments or the support of consultants and law firms, this transition becomes even more delicate,” commented Marina, highlighting that Worky is dedicated precisely to companies with 20 and up to 200 employees for whom offers support throughout the internalization process with a 100% Mexican management platform designed to be affordable and relevant for this segment.

Hanz Dieter Schietekat, CEO of Business Republic and who moderated the event, ended the session by urging attendees to act promptly. “I hope it has become very clear that compliance with the new outsourcing standard is imminent and mandatory. Remember that if a solution sounds too good to be true, it probably is. With less than a month and a half remaining for compliance, it is imperative to have the right tools and advice. ”

By:

Source: Break the five most common outsourcing reform myths

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Critics:

Outsourcing is an agreement in which one company contracts a service bureau to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and assets from one firm to another.

The term outsourcing, which came from the phrase outside resourcing, originated no later than 1981. The concept, which The Economist says has “made its presence felt since the time of the Second World War”,often involves the contracting of a business process (e.g., payroll processing, claims processing), operational, and/or non-core functions, such as manufacturing, facility management, call center/call centre support).

The practice of handing over control of public services to private enterprises, even if on a short-term limited basis,[7] may also be described as “outsourcing”.

Outsourcing includes both foreign and domestic contracting,and sometimes includes offshoring (relocating a business function to a distant country) or nearshoring (transferring a business process to a nearby country).

Offshoring and outsourcing are not mutually inclusive: there can be one without the other. They can be intertwined (offshore outsourcing), and can be individually or jointly, partially or completely reversed,involving terms such as reshoring, inshoring, and insourcing.

  • Offshoring is moving the work to a distant country. If the distant workplace is a foreign subsidiary/owned by the company, then the offshore operation is a captive, sometimes referred to as in-house offshore.
  • Offshore outsourcing is the practice of hiring an external organization to perform some business functions (“Outsourcing”) in a far-off country other than the one where the products or services are actually performed, developed or manufactured (“Offshore”).
  • Insourcing entails bringing processes handled by third-party firms in-house, and is sometimes accomplished via vertical integration.
  • Nearshoring refers to outsource to a nearby country.
  • Farmshoring refers to outsourcing to companies in more rural locations within the same country.
  • Homeshoring (also known as Homesourcing) is a form of IT-enabled “transfer of service industry employment from offices to home-based … with appropriate telephone and Internet facilities”.[16][17] These telecommuting positions may be customer-facing or back-office,and the workers may be employees or independent contractors.
  • In-housing refers to hiring employees.
  • An Intermediary is when a business provides a contract service to another organization while contracting out that same service.

See also

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