A week on US radio: stuck between stations

Fun-wise, it's been an unspectacular summer in New York

A week on US radio
Fun-wise, it’s been an unspectacular summer in New York. “We are quietly snoring,” reports the New York Times, briefly enlivened by Beyoncé causing havoc at Coney Island by perfecting her make-up for an impromptu photo shoot on the 90-year-old Ferris wheel, and leaving a lone couple stranded for over half an hour 150 feet at the top, certain they had been forgotten for the night and forced to sit tearfully in their wind-rattled cage, gazing down on the wide and clamouring boardwalk below.
When immigrants approached New York by boat in the 19th century, it wasn’t the Statue of Liberty they saw first, but the one million electric lights of Coney Island – lights promising one thing: here, pleasure is a birthright. But not this summer. A numbing heatwave in June was followed by perpetual drizzle and brown-shadowed thunderstorms along the Jersey shore, knocking out power in the run-up to Labor Day.
“After the news, I wanna bring something up,” sighed Jim Gearhart, the veteran host of New Jersey 101.5, on yet another overcast morning. “Today’s the day that the burger flippers are supposed to go on strike. Has anybody in New Jersey heard about this?”
In New York, fast-food workers’ wages have increased just 25 cents in ten years to a parlous $7.25 (£4.67) an hour. The burger flippers of New Jersey – the most densely populated state in the Union, with tens of thousands working in that industry – earn marginally more, but still short of Barack Obama’s proposed $9 minimum wage. When recently McDonald’s sent out a sheet of contemptuous “suggestions” on how its workers might more sensibly live within a budget, it included an assumed “income from another job”, conceding that nobody can hope to survive by flipping cheeseburgers alone.
“Do you believe in the minimum wage or is it pushing even Karl Marx to the left?” muses Jim. “Let’s go to Joe in Neptune.” “Oh wow,” says a distracted Joe, forgetting what he wanted to say and hanging up. Jim sighs and leisurely goes to the ads for statins. It takes more than dead air (or even murder) to faze a New Jersey DJ.
Later that afternoon, on National Public Radio, it’s not Marx but Einstein up for discussion. Tom and Ray Magliozzi – brothers who nominally dole out advice about fixing cars on the station – affectionately mock a listener who has just emailed in on the subject of geniuses and called Albert Einstein “Norman”. “Hey– Norman Einstein!” shriek Tom and Ray, 76 and 64, respectively, but brimful with the dimply charm of fantastically unsnooty delinquents. “Hey, man!” they bang the table, hooting with a soul-deep satisfaction. “Ah, man . . .” It’s the most fun they’ve had since Memorial Day. “You been collaborating with Yogi Bear on this?”
A summer thunderstorm in New York. Photo: Getty

Antonia Quirke is an author and journalist. She is a presenter on The Film Programme and Pick of the Week (Radio 4) and Film 2015 and The One Show (BBC 1). She writes a column on radio for the New Statesman.

This article first appeared in the 09 September 2013 issue of the New Statesman, Britain alone

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Leader: Mark Carney — a rock star banker feels the heat

Rather than mutual buck-passing, politicians and central bankers must collaborate in good faith.

On 24 June, the day after the EU referendum, the United Kingdom resembled a leaderless state. David Cameron promptly resigned as prime minister after his humiliating defeat. His closest ally, George Osborne, retreated to the safety and silence of the Treasury. Labour descended into open warfare; meanwhile, the leaders of the Leave campaign appeared terrified by the challenge confronting them and were already plotting and scheming against one another.

The government had not planned for Brexit, and so one of the few remaining sources of authority was the independent Bank of England. Its Canadian governor, the former Goldman Sachs banker Mark Carney, provided calm by announcing that Threadneedle Street had performed “extensive contingency planning” and would not “hesitate to take additional measures”. A month later, the Bank cut interest rates to a ­record low of 0.25 per cent and announced an additional £60bn of quantitative easing (QE). Both measures helped to avert the threat of an immediate recession by stimulating growth and employment.

Since then the Bank of England governor, who this week gave evidence on monetary policy to the economic affairs committee at the House of Lords, has become a favoured target of Brexiteers and former politicians. Michael Gove has compared Mr Carney to a vainglorious Chinese emperor and chided him for his lack of “humility”. William Hague has accused the Bank of having “lost the plot” and has questioned its future independence. Nigel Lawson has called for Mr Carney to resign, declaring that he has “behaved disgracefully”.

At no point since the Bank achieved independence under the New Labour government in 1997 has it attracted such opprobrium. For politicians faced with the risk, and the reality, of economic instability, Mr Carney and his colleagues are an easy target. However, they are the wrong one.

The consequences of loose monetary policy are not wholly benign. Ultra-low rates and QE have widened inequality by enriching asset-holders, while punishing savers. Yet the economy’s sustained weakness as well as poor productivity have necessitated such action. As Mr Osborne consistently recognised when he was chancellor, monetary activism was the inevitable corollary of fiscal conservatism. Without the Bank’s interventionism, government austerity would have had even harsher consequences.

The new Chancellor, Philip Hammond, has rightly taken the opportunity to “reset” fiscal policy. He has abandoned Mr Osborne’s absurd target of seeking to achieve a budget surplus by 2020 and has promised new infrastructure investment in his Autumn Statement on 23 November.

After years of over-reliance on monetary stimulus, a rebalancing is, in our view, necessary. Squeezed living standards (inflation is forecast to reach 3 per cent next year, given the collapse in the value of sterling) and anaemic growth are best addressed through government action rather than a premature rise in interest rates. Though UK gilt yields have risen in recent weeks, borrowing costs remain at near-record lows. Mr Hammond should not hesitate to borrow to invest, as Keynesians have long argued.

The Bank of England is far from infallible, of course. In recent years, its growth and employment forecasts have proved overly pessimistic. Mr Carney’s immediate predecessor, Mervyn King, was too slow to cut rates at the start of the financial crisis and was ill-prepared for the recession that followed. Central bankers across the developed world, most notably the former Federal Reserve head Alan Greenspan, have too often been treated as seers beyond criticism. Their reputations have suffered as a consequence.

Yet the principle of central bank independence remains one worthy of defence. Labour’s 1997 decision ended the manipulation of interest rates by opportunistic politicians and enhanced economic stability. Although the Bank’s mandate is determined by ministers, it must be free to set monetary policy without fear of interference. The challenge of delivering Brexit is the greatest any British government has faced since 1945. Rather than mutual buck-passing, politicians and central bankers must collaborate in good faith on this epic task.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage