exception

The Great Exception – Los Angeles Times

WILLIAM T. VOLLMANN is the author of numerous books, among them, “Rising Up and Rising Down: Some Thoughts on Violence, Freedom and Urgent Means,” and, most recently, “Poor People.”

CALIFORNIA HAS sometimes been referred to as “the Great Exception,” but for better and worse, this term applies quite well to all of our United States.

We commenced our independence as the nation that overthrew a government of men for a government of laws. William Blake wrote poems about us; the French Revolution was in part inspired by us. Like all institutions, we often fell short of our best possibilities, but bit by bit, falteringly and over decades and centuries, we improved ourselves. Belatedly and grudgingly, we abolished slavery; still more belatedly, we admitted that equality of representation included women as well as men. There are places on this Earth that have not yet achieved this much.

Nor did we rest there. I have visited any number of countries where free speech is not even a dream. In America, I can rail against my government to my heart’s content, knowing that there will be no midnight knock at my door. If some bully in uniform does pick on me, I have a decent chance of legally escaping his clutches.

Not only has America striven intermittently to be fair and even good, it remains an excellent place to make and keep money. It is, as they say, the locus of the easy life. And so, in spite of Native American genocide, Jim Crow, ruthless monopolism, etc., we became and for a very long time remained an ideal for ourselves and others.

I remember an old man from what used to be called Czechoslovakia; he escaped the communist regime by skiing over many mountains, and he finally found haven in California. I ate at his restaurant 40 years later. He told me that he had always dreamed of living in America. He still considered America the best place on Earth. In so many countries — from Kazakhstan to Colombia to Afghanistan — I have met people like him, people who long to be saved by going to America.

I remain grateful to have been born an American. As I get older, I admire our Constitution more and more. But what I love the most about my experience of American-ness is our famous individualism. Not everyone needs to like me, but I assume, with some correctness, that my eccentricities will be tolerated. I am my own person — and sometimes lonely for that, but that is the price that an American pays. I am, as you are, an exception in a crowd.

We are Americans, and so until recently, we knew that we were the best. Because so many people wanted to be us, we could act as we pleased — and we did, because we were the Great Exception; we were America the Blessed. Hence our complacent belief, so long borne out by the facts, that American movies and American brands would always sell. Hence also our comforting faith that the Kyoto Protocol did not apply to us, so that we could spew out all the greenhouse gases we liked, and use a pig’s share of the world’s resources. (Just this week, I learned of the U.S.’ new plan for energy independence: coal plants, subsidized for the next 25 years.)

Being America the Perfect, we invented the doctrine, even before 9/11, that we could seize war criminals in any part of the globe and whisk them off to The Hague. Of course, we insisted that should we ever commit war crimes, we would remain immune to prosecution in that court. Well, after all, how could Americans do any wrong?

Our current administration of torturers (this word sounds so shrill, so preposterous in relation to the America I believe in, that I have to remind myself over and over that it is literally accurate, that this president and his two attorneys general have quite literally legalized torture) has gone further in this direction than I ever could have imagined. President Bush’s modus operandi is this: Bull your way ahead. If you meet obstacles, overcome them with arrogant bluster. If this fails, proceed to vicious, mendacious brutality.

I wish I could blame him alone for the degradation of the America I loved. Unfortunately, Americans not only voted for this man, but after he proved himself to be a criminal, they reelected him. As one of my friends replied when I asked why we should attack Iraq when Iraq had done nothing to us: “Why not attack Iraq?”

We were Americans, you see. Why not do whatever suited our whims?

And now what? “They hate us,” we whisper to one another in amazement. In another decade, we might even begin to wonder about the degree of our exceptionality. What if we had to follow the rules that everyone else does?

Well, why not put off that pain as long as possible? It’s much more fun to remain the Great Exception.

Alas, while we hunker down behind the drawbridge, awaiting our next 9/11, we don’t even take the trouble to be united. Exceptionalism undermines us from within.

Alaskan towns are tilting in the melting permafrost, but who cares down in the Lower 48? Republicans and Democrats hate each other. Automobiles isolate us. Generations of advice-givers have made us believe that profit best defines the successful life, and so the white-collar crooks of Enron and the ghetto thugs who murder as they please celebrate their own exceptionalism against the rest of us.

Exceptionalism may be understandable and even excusable, but it should not be eternally acceptable. All-white juries have unjustly convicted black defendants in this country, and that makes me ashamed; but the notion that a 21st century criminal trial cannot be fair unless at least some jurors are the same race as the defendant is of a piece with the idea that men and women will never understand each other, that Muslim cab drivers can refuse to pick up passengers who carry liquor and that right-to-life pharmacists can refuse to fill a desperate woman’s prescription for the morning-after pill.

Let’s pander while Rome burns! I’m not worried; I’ll never catch fire. Like each and all of us, I’m my own favorite exception.

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The U.S. economy was stagnant in 2025 — with one exception

Today’s political consensus crosses all ages, demographics and party lines: Three out of four Americans think the economy is in a slump. It is not just in their heads. Economic growth this year has been practically stagnant, save for one exception, economists say.

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A national California economy

Hundreds of billions of dollars invested by California-based tech giants in artificial intelligence infrastructure accounted for 92% of the nation’s GDP growth this year, according to a Harvard analysis, supported by other independent economic studies.

It is a remarkable boon for a handful of companies that could lay the groundwork for future U.S. economic leadership. But, so far, little evidence exists that their ventures are expanding opportunities for everyday Americans.

“You have to watch out for AI investments — they may continue to carry the economy or they may slow down or crash, bringing the rest of the economy together with them,” said Daron Acemoglu, an economics professor at MIT. “We are not seeing much broad-based productivity improvements from AI or other innovations in the economy, because if we were, we would see productivity growth and investment picking up the rest of the economy as well.”

Even in California itself, where four of the top five AI companies are based, the AI boom has yet to translate into tangible pocketbook benefits. On the contrary, California shed 158,734 jobs through October, reflecting rising unemployment throughout the country, with layoffs rippling through the tech and entertainment sectors. Consumer confidence in the state has reached a five-year low. And AI fueled a wave of cuts, cited in 48,000 job losses nationwide this year.

“It is evident that the U.S. economy would have been almost stagnant, absent the capital expenditures by the AI industry,” said Servaas Storm, an economist at the Institute for New Economic Thinking, whose own analysis found that half of U.S. economic growth from the second quarter of 2024 through the second quarter of 2025 was due to spending on AI data centers.

The scale of investments by AI companies, coupled with lagging productivity gains expected from AI tools, is spawning widespread fears of a new bubble on Wall Street, where Big Tech has driven index gains throughout the year.

The top 10 stocks listed in the Standard & Poor’s 500 index, most of which are in the tech sector, were responsible for 60% of the yearlong rally, far outperforming the rest of the market. And the few who benefited from dividends fueled much of the rest of this year’s economic growth, with the vast majority of U.S. consumption spending attributed to the richest 10% to 20% of American households.

“There were ripple effects into high-end travel, luxury spending, high-end real estate and other sectors of the economy driven by the financial elite,” said Peter Atwater, an economics professor at William & Mary and president of Financial Insyghts, a consulting firm. “It tells the average consumer that while things are good at the top, they haven’t benefited.”

Stan Veuger, a senior fellow in economic policy studies at the American Enterprise Institute and a frequent visiting lecturer at Harvard, said that slowing growth and persistently high inflation were diminishing the effects of the AI boom.

“Obviously, that’s not a recipe for sustainable growth,” he said.

U.S. growth today is based on “the hope, optimism, belief or hype that the massive investments in AI will pay off — in terms of higher productivity, perhaps lower prices, more innovation,” Storm added. “It should tell everyday Americans that the economy is not in good shape and that the AI industry and government are betting the farm — and more — on a very risky and unproven strategy involving the scaling of AI.”

Trump’s AI bet

The Trump administration has fully embraced AI as a cornerstone of its economic policy, supporting more than $1 trillion in investments over the course of the year, including a $500-billion project to build out massive data centers with private partners.

Trump recently took executive action attempting to limit state regulations on AI designed to protect consumers. And House Republicans passed legislation this week that would significantly cut red tape for data center construction.

Administration officials say the United States has little choice but to invest aggressively in the technology, or else risk losing the race for AI superiority to China — a binary outcome that AI experts warn will result in irreversible, exponential growth for the winner.

But there is little expectation that their investments will bear fruit in the short term. Data centers under construction under the Stargate program, in partnership with OpenAI and Oracle, will begin coming online in 2026, with the largest centers expected to become operative in 2028.

“AI can only fulfill its promise if we build the compute to power it,” OpenAI Chief Executive Sam Altman said at the launch of the Stargate project. “That compute is the key to ensuring everyone can benefit from AI and to unlocking future breakthroughs.”

In the meantime, the Americans expected to benefit are those who can join in the investment boom — for as long as it lasts.

“2025 has been a very good year for people who already have significant wealth, a mediocre year for everyone else,” said Kenneth Rogoff, a prominent economist and professor at Harvard. “While the stock market has exploded, wage growth has been barely above inflation.”

“Whether the rest of the economy will catch fire from AI investment remains to be seen, but near term it is likely that AI will take away far more good jobs than it will create,” Rogoff added. “The Trump team is nevertheless optimistic that this will all go their way, but the team is largely built to carry out the president’s vision rather than to question it.”

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More to come,
Michael Wilner

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