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Race splits America into different countries

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Today's Agenda

In which America do you live?

Photographer: Andrew Burton/Getty Images North America

Different States of America

The coronavirus pandemic, by inflicting disproportional misery on minorities, has been a sobering reminder that American inequality often cleaves along racial lines. The disparities are so great that often America's various racial and ethnic groups appear to be living — and dying — in separate countries.

Ben Schott explores these differences in a series of charts that are as enlightening as they are disturbing. They show, for instance, that the infant-mortality rate for Asian Americans (3.6 deaths for 1,000 live births) equals that of Switzerland; on the same table, Black Americans (11.4 deaths) place only slightly higher than Mexico.

The U.S. national average: 5.9. deaths. In terms of life expectancy, Asian Americans (86.3 years) top Japan. Black Americans die an astonishing 15 years sooner, which ranks them below Russia. The national average: 78.6 years.

Says Schott: "From birth to ­­­death, and at every stage of life therein, an American's race and ethnicity will help define which America they inhabit: one of the most advanced countries, or one still struggling with development."

Further Economic Problems Reading:

We Can Avoid an Eviction Crisis

Millions of Americans who have lost income because of the pandemic can't pay rent. In some cases, landlords are using the coronavirus crisis as an opportunity to eject tenants, raising the prospect of a humanitarian disaster. But, as Noah Smith points out, there aren't enough tenants waiting to take the place of those being evicted — bad news for landlords and for the economy as a whole. The solution: rent assistance. Says Smith: "Households with low income levels relative to their pre-pandemic rent payments should be able to get aid from the federal government to help pay rent through the end of the year."

Counterintuitively, the pandemic is pushing up home prices even as rents fall. This reverses the pattern normally seen during recessions, says Conor Sen. In part, this is because supply is constrained by foreclosure moratoriums and a reluctance to sell among owners who are sheltering in place. But it's no coincidence that rents are down sharply in such places as Manhattan and San Fransisco, where demand has long been inflated by high-wage knowledge workers: These are the very people who have both the means to buy and jobs that can be done from home. 

This may be a temporary condition, however: When it becomes safe for everyone to go back to the office, says Sen, "there could be a rush of people flocking to high-cost cities and scrambling to find an apartment, bidding rents back up." 

Further Economic Solutions Reading: Obamacare is already easing the economic pain of the pandemic; the Senate shouldn't sleep on the House's improvements to it. — Bloomberg's editorial board

Another Way to Stop Iran

The basic assumption underlying U.S. nuclear policy on Iran is that striking a bargain with its leaders is the only way to prevent them from acquiring nukes. But that means legitimizing a tyrannical regime that exports violence and threatens the global economy. When President Donald Trump pulled the U.S. out of the 2015 nuclear deal, critics feared it would take nothing short of war to stop the Islamic Republic from becoming a nuclear theocracy. That, argues Eli Lake, has been proven wrong in the past couple of weeks, as a series of explosions — likely the result of Israeli sabotage — has damaged key Iranian weapons-development facilities. The strikes, says Lake, "should make clear that the civilized world can delay Iran's nuclear ambitions without conferring legitimacy to the regime."

And, ahem, while I have your attention on Iran, allow me to play the world's smallest violin for President Hassan Rouhani, a wolf in sheep's clothing who's now getting a mauling from his former pack.

Telltale Charts

The Fed is being far too stingy with state and local governments, which desperately need the help, writes Brian Chappatta.

Tesla's stock price suggests it will always have a monopoly on electric cars, notes John Authers. That's not a safe assumption.

Further Reading

Joe Biden's tax plan would discourage savers and entrepreneurs … and not do much to reduce inequality. — Jared Dillian

Emerging markets will once again pick up the tab for central bank largesse. — Mihir Sharma

Big Tech doesn't need U.S. sales to soar. — Barry Ritholtz

There's still hope for Poland's democracy, but it's on a razor's edge. — Therese Raphael 

History explains why China wants to upset the world order.  Michael Schuman

America's hospitals should team up for a big remdesivir study. — Peter Bach

How to stop worrying and love (or at least cope with) home-schooling— Emily Oster

ICYMI

Racism is a public-health crisis.

The Redskins are no more.

Is your dog ready for the end of the lockdown?

Jeff Sessions is in a grudge match against Trump.

Kickers

What a charming little particle! (h/t Scott Kominers)

Hollywood embraces woke content.

...and, to round it off, here's some real-estate porn.

Note: Please send desserts, just or otherwise, to Bobby Ghosh at aghosh73@bloomberg.net.

 

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