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Jeremy Arnold's avatar

So, a few more issues with that TNY piece about teachers, both from the final paragraph.

(As context, the piece is deeply pro-union. And that's fine, so far as it goes. I'm pro-union in some contexts, and TNY is a left-leaning outlet speaking to left-leaning readers. I don't think anyone would reasonably assume that they're getting a rounded story here. But as the old saw goes: you're entitled to your politics; just not your own facts.)

Here's the concerning bit:

"Amazon and Whole Foods workers strike for clean work sites, gloves, and hazard pay—and why wouldn’t they? They’re risking their lives while their employer, Jeff Bezos, has made twenty-five billion dollars since January. Tenants across the country have collectively withheld rent payments on the first of the month, standing up to private-equity firms that hold trillions of dollars in assets."

So, two things:

1. That Bezos bit is pretty misleading. It's not that he took $25bn in comp from the company. The value of his Amazon shares increased by something like that amount, sure. But shares can go down as well as up. And anyway many people own Amazon shares, including many Amazon employees. If you have an insurance policy or index shares or a retirement fund then you're likely benefiting from that lift too. Bezos benefits more based on the size of his holdings, sure. That's how founding a company works. But it's not like he extracted this value at the expense of workers that he left shafted. A rising tide lifts all boats, and negative costs of anti-worker decisions will end up coming out of that pot in the long run anyway.

2. As for the rent thing, it's entirely possible that PE firms make for bad landlords. Many certainly seem to believe that (and I think the evidence is there in some cases, if less in others). But the idea that not paying rent is some way of sticking it to them is deeply misguided. PE firms own a fractional amount of US rental stock (see link below; seems it's something like 2% depending how you define PE). Plus those assets don't necessarily belong to the PE firms. In many cases they belong to us (via insurance / pension / endowment / mutual funds). So not paying your rent may hurt the PE "bad guys" a little. But it's going to hurt regular folks a whole lot more.

These are the sorts of characterizations I'd expect from a progressive pundit or whatever. They're rooted in class-based perceptions and ideological talking points that most never really think that carefully about. But the whole point of TNY is that they claim to think carefully about these things and to only publish what can be supported by the evidence. That this article sailed through is kinda nuts to me, as is the fact they fixed the one problem without looking carefully to see if they'd missed other points too.

Link: https://ourfinancialsecurity.org/wp-content/uploads/2019/05/Private-Equity-Apartment-Bldng-Owners-4-19.pdf

(I'd have to do a deep dive here to get a clearer sense of the numbers. But from a few minutes of cross-checking the 2% estimate seems reasonable. The US has something like 50m rental units, and if you combine PE and private real estate funds they seem to own something like 1m. Even if that latter number is missing a bunch, we're still talking low single digits.)

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Danilo's avatar

A tiny correction: you can have 2/3rds be security forces victims, and 2/3rds be motor vehicle injuries, by simply having police drive cars into pedestrians for more than 1/3rd of all injuries. Not substantial error in this case, and no bounty needed :)

Anyway, all percentages and ratios are always a play on data (one is 50% more expensive, the other is only 33% cheaper mean exactly the same thing) and should be taken with a grain of salt.

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