David Warsh: The exciting lives of former newspapermen
— Photo by Knowtex
SOMERVILLE, Mass.
After the Internet laid waste to old monopolies on printing presses and broadcast towers, new opportunities arose for inhabitants of newsrooms. That much I knew from personal experience. With it in mind, I have been reading Spooked: The Trump Dossier, Black Cube, and the Rise of Private Spies (Harper, 2021), by Barry Meier, a former reporter for The New York Times and The Wall Street Journal. Meier also wrote Pain Killer: A “Wonder” Drug’s Story of Addiction and Death (Rodale, 2003), the first book to dig in to the story of the Sackler family, before Empire of Pain: The Secret History of the Sackler Dynasty (Doubleday, 2021), by New Yorker writer Patrick Radden Keefe, eclipsed it earlier this year. In other words, Meier knows his way around. So does Lincoln Millstein, proprietor of The Quietside Journal, a hyperlocal Web site covering three small towns on the southwest side of Mt. Desert Island, in Downeast Maine.
Meier’s book is essentially a story about Glenn Simpson, a colorful star investigative reporter for the WSJ who quit in 2009 to establish Fusion GPS, a private investigative firm for hire. It was Fusion GPS that, while working first for Republican candidates in early 2016, then for Hillary Clinton’s presidential campaign, hired former MI6 agent Christopher Steele to investigate Donald Trump’s activities in Russia.
Meier, a careful reporter and vivid writer, doesn’t think much of Simpson, still less of Steele, but I found the book frustrating: there were too many stories about bad behavior in the far-flung private intelligence industry, too loosely stitched together, to make possible a satisfying conclusion about the circumstances in which the Steele dossier surfaced, other than information, proven or not, once assembled and packaged, wants to be free. William Cohan’s NYT review of Spooked was helpful: “[W]e are left, in the end, with a gun that doesn’t really go off.”
Meier did include in his book (and repeat in a NYT op-ed) a telling vignette about Fusion GPS co-founder Peter Fritsch, another former WSJ staffer who in his 15-year career at the paper had served as bureau chief in several cities around the world. At one point, Fritsch phones WSJ reporter John Carreyrou, ostensibly seeking guidance on the reputation of a whistleblower at a medical firm – without revealing that Fusion GPS had begun working for Elizabeth Holmes, of whose blood-testing start-up, Theranos, Carreyrou had begun an investigation.
Fritsch’s further efforts to undermine Carreyrou’s investigation failed. Simpson and Fritch tell their story of the Steele dossier in Crime in Progress (2019, Random House.) I’d like to someday read more personal accounts of their experiences in the private spy trade, I thought, as I put Spooked and Crime in Progress back on the shelf Given the authors’ new occupations, it doesn’t seem likely those accounts will be written.
By then, Meier’s story had got me thinking about Carreyrou himself. His brilliant reporting for the WSJ, and his 2018 best-seller, Bad Blood: Secrets and Lies in a Silicon Valley Startup (Knopf, 2018, led to Elizabeth Holmes’s trial on criminal charges that began last month in San Jose. Thanks to Twitter, I found, within an hour of its appearance, this interview with Carreyrou, now covering the trial online as an independent journalist.
My head spun at the thought of the leg-push and tradecraft required to practice journalism at these high altitudes. The changes wrought by the advent of the Web and social media have fundamentally expanded the business beyond the days when newspapers and broadcast news were the primary producers of news. In 1972, when I went to work for the WSJ, for example, the entire paper ordinarily contained only four bylines a day.
So I turned with some relief to The Quietside Journal, the Web site where retired Hearst executive Lincoln Millstein covers events in three small towns on Mt. Desert Island, Maine, for some 17,000 weekly readers. In an illuminating story about his enterprise, Millstein told Rick Edmonds, of the Poynter Institute, that he works six days a week, again employing pretty much the same skills he acquired when he covered Middletown, Conn., for The Hartford Courant forty years ago. (Millstein put the Economic Principals column in business in 1984, not long after he arrived as deputy business editor at The Boston Globe).
My case is different. Like many newspaper journalists in the 1980s, I worked four or five days a week at my day job and spent vacations and weekends writing books. I quit the day job in 2002, but kept the column and finished the book. (It was published in 2006 as Knowledge and the Wealth of Nations: A Story of Economic Discovery).
Economic Principals subscribers have kept the office open ever since; I gradually found another book to write; and so it has worked out pretty well. The ratio of time spent is reversed: four days a week for the book, two days for the column, producing, as best I can judge, something worth reading on Sunday morning. Eight paragraphs, sometimes more, occasionally fewer: It’s a living, an opportunity to keep after the story, still, as we used to say, the sport of kings.
David Warsh, a veteran columnist and an economic historian, is proprietor of Somerville-based economicprincipals.com, where this essay first ran.
What to do about capitalism in the 21st Century
By DAVID WARSH
BOSTON
"Economist Receives Rock Star Treatment": That was the recent headline on Jennifer Schuessler’s story in The New York Times. The facts bear her out. Thomas Piketty, 42, of the Paris School of Economics, seemed to be everywhere last week. Publication of his 685-page Capital in the Twenty-First Century had been moved up by two months, sales were soaring (46,000 copies so far), a triumphant tour of Washington (meeting with Treasury Secretary Jack Lew) and New York (appearing at the United Nations) has been completed. Encomiums were pouring in. “Pikettty has transformed our economic discourse,” wrote Paul Krugman in the current New York Review of Books. “We’ll never talk about wealth and inequality the way we used to.”
Not bad for an economist who traded an appointment at the Massachusetts Institute of Technology for a job as a researcher for the French government in 1996, when he was 25. “I did not find the work of US economists entirely convincing,” he writes in the introduction to Capital in the Twenty-First Century:
" I was only too aware that I knew nothing at all about the world’s economic problems. My thesis consisted of several relatively abstract mathematical theorems. Yet the profession liked my work. I quickly realized that there had been no significant effort to collect historical data on the dynamics of inequality since [Simon] Kuznets [in the 1950s and ’60s], yet the profession continued to churn out purely theoretical results without even knowing what facts needed to be explained.''
He went home to collect some of the missing facts.
Piketty wanted to teach at the Ecole des Hautes Etudes en Sciences Sociales, the elite institute whose faculty had included many of the foremost figures in the Annales school, including Lucien Febvre and Fernand Braudel – a group of scholars, most of them quantitative historians, that achieved enormous influence around the world publishing in the journal Annales. Economies, sociétés, civilisations (or Annales. Histoire, Sciences Sociales as it is called today).
Piketty got that job, along with time to do the research he wanted, first producing a book in 2001 on high incomes in France since 1901, then enlisting Anthony Atkinson, of Oxford University, in a similar investigation of Great Britain and several other countries. His friend and countryman Emmanuel Saez, of the University of California at Berkeley, produced similar data for the US. The World Top Incomes Database (WTID) is the result. Data on wealth, following the methods of Robert Lampman, of the University of Wisconsin, came next. Starting in 2003, Piketty began setting up the new Paris School of Economics; in 2006, he was named its first head. He resumed teaching and writing the next year.
Piketty’s thesis is set out succinctly on the first page of his introduction:
"When the rate of return on capital exceeds the rate of growth of output, as it did in the nineteenth century and seems quite likely to do again in the twenty-first, capitalism automatically generates arbitrary and unsustainable inequalities that radically undermine the meritocratic values on which democratic societies are based. There are ways nevertheless democracy can regain control over capitalism and ensure that the general interest takes precedence over private interests, while preserving economic openness and avoiding protectionist and nationalist reactions.''
What are those measures? Four chapters in the fourth section of the book draw a variety of policy lessons from the first three parts for a “social state:”
The right solution is a progressive annual tax on capital. This will make it possible to avoid an endless inegalitarian spiral while preserving competition and incentives for new instances of primitive accumulation.
Piketty says he’s left Paris only a few times on short trips since returning nearly 20 years ago. My hunch is that, after last week, it will be a long time before he takes another. He’s left behind a beautiful book, one that will receive a great deal of attention around the world in the years to come. He’s gone home to work on others.
xxx
Michael C. Janeway, a former editor of The Boston Globe, died last week. He was 73. It was he who, as managing editor, permitted Economic Principals to begin in 1983 as a column in the Sunday business pages. I have always been grateful to him, and to Lincoln Millstein, still very much alive, who led the blocking.
David Warsh is a long-time financial journalist and economic historian and proprietor of www.economicprincipals.com