Posts Tagged ‘OECD’
“Human intelligence is among the most fragile things in nature. It doesn’t take much to distract it, suppress it, or even annihilate it.”*…
As Sarah O’Connor observes, technology has changed the way many of us consume information, from complex pieces of writing to short video clips…
The year was 1988, a former Hollywood actor was in the White House, and Postman was worried about the ascendancy of pictures over words in American media, culture and politics. Television “conditions our minds to apprehend the world through fragmented pictures and forces other media to orient themselves in that direction,” he argued in an essay in his book Conscientious Objections. “A culture does not have to force scholars to flee to render them impotent. A culture does not have to burn books to assure that they will not be read . . . There are other ways to achieve stupidity.”
What might have seemed curmudgeonly in 1988 reads more like prophecy from the perspective of 2024. This month, the OECD released the results of a vast exercise: in-person assessments of the literacy, numeracy and problem-solving skills of 160,000 adults aged 16-65 in 31 different countries and economies. Compared with the last set of assessments a decade earlier, the trends in literacy skills were striking. Proficiency improved significantly in only two countries (Finland and Denmark), remained stable in 14, and declined significantly in 11, with the biggest deterioration in Korea, Lithuania, New Zealand and Poland.
Among adults with tertiary-level education (such as university graduates), literacy proficiency fell in 13 countries and only increased in Finland, while nearly all countries and economies experienced declines in literacy proficiency among adults with below upper secondary education. Singapore and the US had the biggest inequalities in both literacy and numeracy.
“Thirty per cent of Americans read at a level that you would expect from a 10-year-old child,” Andreas Schleicher, director for education and skills at the OECD, told me — referring to the proportion of people in the US who scored level 1 or below in literacy. “It is actually hard to imagine — that every third person you meet on the street has difficulties reading even simple things.”
In some countries, the deterioration is partly explained by an ageing population and rising levels of immigration, but Schleicher says these factors alone do not fully account for the trend. His own hypothesis would come as no surprise to Postman: that technology has changed the way many of us consume information, away from longer, more complex pieces of writing, such as books and newspaper articles, to short social media posts and video clips.
At the same time, social media has made it more likely that you “read stuff that confirms your views, rather than engages with diverse perspectives, and that’s what you need to get to [the top levels] on the [OECD literacy] assessment, where you need to distinguish fact from opinion, navigate ambiguity, manage complexity,” Schleicher explained.
The implications for politics and the quality of public debate are already evident. These, too, were foreseen. In 2007, writer Caleb Crain wrote an article called “Twilight of the Books” in The New Yorker magazine about what a possible post-literate culture might look like. In oral cultures, he wrote, cliché and stereotype are valued, conflict and name-calling are prized because they are memorable, and speakers tend not to correct themselves because “it is only in a literate culture that the past’s inconsistencies have to be accounted for”. Does that sound familiar?…
One recalls Plato’s report that Socrates lamented the introduction of writing (on the grounds that it would erode the centrality of the memory and memorization and the tradition of oral disputation). And one reckons that in retrospect, even as one acknowledges that Socrates wasn’t wrong, one is not sorry that writing came to play the foundational role that it has in scholarship, culture, and commerce.
So perhaps we’re just in the first steps of a transition on the other side of which a new kind of literacy has displaced the current one (and advanced our state of being in the same way that writing has). Perhaps. Even then, in the moment it’s anxiety-provoking: even if we are bound for a new (higher-order?) literacy, it’s the curse of the earlier phases of a tectonic cultural shift that what we’re losing is much clearer than what we may gain.
“Are we becoming a post-literate society?” (gift article) by @sarahoconnorft.bsky.social in @financialtimes.com.
(The full OECD report- which includes a larger version of the chart above– is here.)
See also: “Stop speedrunning to a dystopia,” from Erik Hoel.
* Neil Postman, Amusing Ourselves to Death
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As we fumble toward the future, we might recall that it was on this date in 1992 that HAL 9000, the AI character (and main antagonist) in Arthur C. Clarke’s (and Stanley Kubrick’s) Space Odyssey series.
More specifically: In the film, HAL became operational on 12 January 1992, at the HAL Laboratories in Urbana, Illinois, as production number 3. The activation year was 1991 in earlier screenplays and changed to 1997 in Clarke’s novel written and released in conjunction with the movie.
“Only in our dreams are we free. The rest of the time we need wages.”*…
The Economist is repurposing one of its famous indices…
Since 1986 The Economist has produced the Big Mac index as a light-hearted gauge of whether currencies are at their “correct” level. The famous burger is a good test of currency valuations because of its global uniformity and ubiquity. The same properties make it a useful way of comparing international salaries: how many Big Macs, in principle, can a typical worker afford with their wages?
The more conventional way of comparing incomes is to convert wages in different countries into a common currency. But that is misleading because exchange rates are volatile. Moreover, one American dollar goes a lot farther in, say, the Philippines than it does in America itself. The Big Mac helps to solve this problem as a ready-made illustration of purchasing power: it represents a bundle of goods (or, rather, a bun of goods) that is identical everywhere, and so it serves as a yardstick of the real cost of things from country to country.
For the Big Mac wage analysis (the MacWage, for short), we started with full-time, pre-tax earnings in 2023 as reported by the OECD, a club of 38 mostly rich countries. We then made a simple adjustment, dividing wages by the price of a Big Mac—all in local currencies. That gave us the number of burgers that the average full-time worker can buy annually.
The results? Americans can perhaps be forgiven for having somewhat expansive waistlines. Although fast-food prices have rocketed since the pandemic, Americans still earn more greasy calories than any others in our analysis [chart below]. The average American worker takes home the equivalent of 14,000 Big Macs in wages for a year of full-time work. At 590 calories a pop, they could buy enough burgers to keep ten adults fed for a year. The Swiss and Danes come, respectively, second and third in MacWages. At the bottom are Mexican workers, who can afford to buy about 2,500 Big Macs with their average annual wages.
A standard objection to any measure of higher incomes in America is that its workers generally get less time off. To factor this in, we looked at average hours worked, based on data from the OECD and the Conference Board, a business-research group. This yields slightly different results (see chart 2). Americans still get more than enough Big Macs—pulling in the equivalent of about 7.4 per hour on the job—but they drop to third in the ranking. The burger champions are the Danes, who earn 8.1 per hour, followed by the Swiss. Looked at another way, the average Dane works for just seven minutes to make enough money to buy a Big Mac. In Mexico—still at the bottom of the rankings after this hourly adjustment—workers must toil for about 57 minutes.
The MacWage is, of course, far from perfect. Danes may celebrate their top performance, but our measure misses how income taxes (which can surpass 50% in Denmark) eat into their burger budgets. Much else of what goes into the cost of living, from housing to transportation, is also barely reflected in the price of burgers. In a developing country like Mexico, where housing is relatively cheap and American fast-food indulgences relatively expensive, a burger-based wage calculation understates how much stuff an average worker can actually afford. Still, as a quick method for comparing incomes around the world, the MacWage is easily digestible…
The purchasing power of average earners across the OECD: “An alternative use for The Economist’s Big Mac index” from @ECONdailycharts in @TheEconomist.
* Terry Pratchett
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As we supersize that, we might recall that it was on this date in 1979 that the U.S. government agreed to a bailout of the Chrysler Corporation. The smallest of the “Big Three” automakers, but still the 10th largest company in America, Chrysler suffering from a combination a bad management decisions and increased competition from Japanese and German automakers. Facing a $500 million loss for the year (and probably bankruptcy), newly-installed CEO Lee Iacocca asked the government for a guarantee on a $1.5 Billion loan package. In return for detailed plans from Chrysler detailing both how the company would right its ship and how other constituents (employees, suppliers, lenders) would make concessions, the Carter Administration (which feared that a Chrysler failure could lead to a “depression”– and depression-level unemployment– in the auto industry) agreed. In return for its guarantee, the government received stock warrants in the company.
Chrysler did turn itself around: it proceeded to introduce the “K-Car” line, then mini-vans, then the earliest generation of SUVs. The company repaid the government-guaranteed debt ahead of schedule; the Treasury made about $500 million on its warrants.
But of course, nearly thirty years later, in 2008, Chrysler received billions in a new bailout from the U.S. government in the aftermath of the financial crisis that decimated automotive sales over the following few years. Chrysler filed for Chapter 11 bankruptcy in April 2009, before being acquired in total by Fiat in 2014.

Being shy about retiring…
click here for access to larger version
As Flowing Data reports,
According to OECD estimates for life expectancy and retirement ages [2009 data in both cases], in countries like Mexico it is common for men to work up to the last year of their lives. On the other hand, women in Austria spend an average of 26 years in retirement.
In the United States the average years in retirement is 10 years for men and 16 years for women (mostly because men typically die earlier)—among the least in the world.
As we find work that we can enjoy, we might recall that it was on this date in 1178 BC that Odysseus returned to Ithaca at the end of his long trip home from the Trojan War. This was the date of a solar eclipse, which scholars have surmised corresponds to Homer’s description of the day–“the Sun has been obliterated from the sky, and an unlucky darkness invades the world”; the particular circumstances of this eclipse were unique between 1250 and 1115 BC, the 135-year spread around the putative date for the fall of Troy.
Odysseus, of course, did not return to the comforts of retirement. After offing the suitors who had flocked to his wife, Penelope, Odysseus retook his throne.

Head of Odysseus from a Greek 2nd century BC marble group representing Odysseus blinding Polyphemus, found at the villa of Tiberius at Sperlonga
And now, the good news…
Eat Less, Live Longer…
The chart above (courtesy of the OECD, via Swivel) plots relative levels of unemployment against life span… and suggests that there may be a silver lining in the dark cloud of recession: there’s evidence that life expectancy increases during times of high unemployment.
Specifically, this data shows the relationship between unemployment and life expectancy for the USA between 1960 and 2006. The following series are shown:
* LIGHTER PURPLE: residual life expectancy – the difference between the actual and expected life expectancy, in lay-terms, how much longer people lived than they were expected to
* DARKER PURPLE: unemployment % – the unemployment rate for the year
For another dose of encouragement, see this Freakonomics post… and relaaaaax…
As we denominate our blessings in something other than dollars, we might recall that on this date in 1956, Elvis Presley sang “Don’t Be Cruel” in the first of his three appearances on The Ed Sullivan Show…






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