Sunday, May 31, 2015

Lawyers With Lowest Pay Report More Happiness

By May 12, 2015 2:42 pm



Todd D. Peterson, a law professor at George Washington University, works to help students avoid unsatisfying careers.Credit Vanessa Vick for The New York Times
Of the many rewards associated with becoming a lawyer — wealth, status, stimulating work — day-to-day happiness has never been high on the list. Perhaps, a new study suggests, that is because lawyers and law students are focusing on the wrong rewards.
Researchers who surveyed 6,200 lawyers about their jobs and health found that the factors most frequently associated with success in the legal field, such as high income or a partner-track job at a prestigious firm, had almost zero correlation with happiness and well-being. However, lawyers in public-service jobs who made the least money, like public defenders or Legal Aid attorneys, were most likely to report being happy.
Lawyers in public-service jobs also drank less alcohol than their higher-income peers. And, despite the large gap in affluence, the two groups reported about equal overall satisfaction with their lives.
Making partner, the ultimate gold ring at many firms, does not appear to pay off in greater happiness, either. Junior partners reported well-being that was identical to that of senior associates, who were paid 62 percent less, according to the study, which was published this week in the George Washington Law Review.
“Law students are famous for busting their buns to make high grades, sometimes at the expense of health and relationships, thinking, ‘Later I’ll be happy, because the American dream will be mine,’ ” said Lawrence S. Krieger, a law professor at Florida State University and an author of the study. “Nice, except it doesn’t work.”
The problem with the more prestigious jobs, said Mr. Krieger, is that they do not provide feelings of competence, autonomy or connection to others — three pillars of self-determination theory, the psychological model of human happiness on which the study was based. Public-service jobs do.



Helen Clemens, a George Washington University law student, says many students who intend to work in public service feel pressure to pursue jobs at big firms.Credit Vanessa Vick for The New York Times
Struggles with mental health have long plagued the legal profession. A landmark Johns Hopkins study in 1990 found that lawyers were 3.6 times as likely as non-lawyers to suffer from depression, putting them at greater risk than people in any other occupation. In December, Yale Law School released a study that said 70 percent of students there who responded to a survey were affected by mental health issues.
Other research has linked the legal profession to higher rates of substance abuse. In some cases, these struggles have made the news: In a recent six-month stretch in Florida, three Broward County judges were arrested on charges of driving under the influence.
From 1999 to 2007, lawyers were 54 percent more likely to commit suicide than people in other professions, according to the Centers for Disease Control and Prevention. And in 2014, CNN reported that 15 Kentucky lawyers had committed suicide since 2010.
Why lawyers are susceptible to such dangers is a matter of debate, although unhappiness with the work itself — long hours toiling for demanding clients — is often cited as a possible cause, particularly for people who entered law school with dreams of high-stakes, cinematic courtroom battles.
“I thought I wanted to be a litigator for reasons that showed a misunderstanding of what litigators do,” said Todd D. Peterson, a law professor at George Washington University who left his job as a partner at a Washington law firm after becoming disillusioned. “The job was unfulfilling to me because I didn’t find it meaningful.” Today, Mr. Peterson is at the forefront of a movement to help law students avoid the mistakes he made.
Others say the job requires an unhealthy degree of cynicism. “Research shows that an optimistic outlook is good for your mental health,” said Patricia Spataro, director of the New York State Lawyer Assistance Program, a resource for attorneys with mental health concerns. “But lawyers are trained to always look for the worst-case scenario. They benefit more from being pessimistic, and that takes a toll.”
And then there is the public hostility. “People just seem to hate lawyers,” Ms. Spataro said. “There are thousands of prominent websites for lawyer jokes. That’s just horrific.” Case in point: Many of the more than 3,000 comments on the CNN article about lawyer suicides applauded the trend. The comments are no longer visible in the link to the online article.
For Larry Zimmerman, a now-retired lawyer from Albany, jumping from a position in the New York State attorney general’s office to a lucrative job in private practice worsened his problems with alcohol.
“Suddenly I was dealing with some very significant money and very demanding clients and high stakes,” he said. “I enjoyed what I was doing, and I was good at it, but I was terrified almost all the time.” Before he sought help, Mr. Zimmerman said, he was drinking a pint of vodka a day and relying on junior lawyers to do most of his work.
To help people like Mr. Zimmerman, most state bar associations or court systems have assistance programs that can refer lawyers to counseling or rehabilitation services. More recently, the work of people like Mr. Krieger has inspired law schools to develop programs that might head off such problems.
In 2012, Mr. Peterson instituted a voluntary program at George Washington University that aims to help law students make better decisions about what kind of law, if any, they want to practice. Students in the program meet with practicing lawyers to learn about their day-to-day lives. The program also has a mental health component, providing techniques for handling stress and remaining positive.
“We’re helping students figure out why they’re in law school and where they want to be,” Mr. Peterson said. “So instead of just working to get the best possible grades so they can send out 500 résumés in their third year and hope that some law firm hires them, they are learning about themselves and why one part of the law might be more appealing to them than another.”
But the pressure to be hired by a big-name firm is so strongly ingrained in law school culture, one George Washington University student said, that even those who enroll with the intention of performing public service often find themselves redirected.
“It’s a very real pressure in law school,” Helen Clemens, a law student, said. “It comes from all kinds of avenues, but mostly I would say it just comes from the people surrounding you. If everyone is talking about leaders from our school who have gotten jobs at a really prestigious firm, the assumption is that we all should be trying to work at a similar place.”
In 2013, the University of New Mexico Law School overhauled a mandatory freshman course to more closely resemble the George Washington University program. “A lot of people go to law school because they don’t know what to do with their lives,” said Nathalie Martin, an associate dean there. “We’re trying to direct them to a field we think they would enjoy.”
Law schools at Vanderbilt University, the University of Texas and the University of Colorado also have professional development programs that focus on student well-being.
By helping students refine their goals, teachers like Mr. Peterson hope to reverse the tide of unhappiness among lawyers. But he acknowledges that it will not be simple.
“There are certainly some folks here at the law school whose initial impression was that the program was kind of touchy-feely,” he said, “and there are students who think even an hour away from reading for their courses they’re going to be graded in is too much.”
“But I think people understand that we need to do something for our students,” he added, “that we have a moral obligation to help them deal with all of these issues.”
Source: The New York Times

Saturday, May 16, 2015

Oil Prices: What’s Behind the Drop? Simple Economics




The oil industry, with its history of booms and busts, is in a new downturn.

Earnings are down for companies that have made record profits in recent years, forcing them to decommission rigs and sharply cut investments in exploration and production. More than 100,000 oil workers have lost their jobs, and manufacturing of drilling and production equipment has fallen sharply.

The cause is the plunging price of a barrel of oil, which has been cut roughly in half since last June, reaching levels last seen during the depths of the 2009 recession.

Oil prices have recovered a bit in recent weeks but even optimists say that $70 a barrel by the end of the year is doubtful. Executives think it will be years before oil returns to $90 or $100 a barrel, pretty much the norm over the last decade.
  1. What’s the current price of oil?
    Brent crude, the main international benchmark, was trading around $67 a barrel on Friday.
    The American benchmark was at $60 a barrel.
  2. Why has the price of oil been dropping so fast? Why now?
    This a complicated question, but it boils down to the simple economics of supply and demand.

    United States domestic production has nearly doubled over the last six years, pushing out oil imports that need to find another home. Saudi, Nigerian and Algerian oil that once was sold in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices. Canadian and Iraqi oil production and exports are rising year after year. Even the Russians, with all their economic problems, manage to keep pumping.

    On the demand side, the economies of Europe and developing countries are weakening and vehicles are becoming more energy-efficient. So demand for fuel is lagging a bit.

  3. Who benefits from the price drop?
    Any motorist can tell you that gasoline prices have dropped more than a dollar a gallon in recent months. Diesel, heating oil and natural gas prices have also fallen sharply. Households are likely to spend $750 less on gas this year because of the oil prices, the United States Energy Information Administration said in January. Europeans and consumers around the world will enjoy similar benefits.

    The latest drop in energy prices — regular gas nationally now averages a bit over $2.50 a gallon, compared with $3.70 a year ago — is also disproportionately helping lower-income groups, because fuel costs eat up a larger share of their more limited earnings.

    Gasoline prices are inching up as refineries do maintenance to switch to more expensive spring and summer gasoline blends.
  4. Who loses?
    For starters, oil-producing countries and states. Venezuela, Iran, Nigeria, Ecuador, Brazil and Russia are just a few petrostates that will suffer economic and perhaps even political turbulence. Persian Gulf states are likely to invest less money around the world, and they may cut aid to countries like Egypt.

    In the United States, Alaska, North Dakota, Texas, Oklahoma and Louisiana will face economic challenges. Some smaller oil companies that are heavily in debt may go out of business, pressuring some banks that lend to them.
  5. What happened to OPEC?
    A central factor in the sharp price drops, analysts say, is the continuing unwillingness of OPEC, a cartel of oil producers, to intervene to stabilize markets that are widely viewed as oversupplied. Prices of OPEC’s benchmark crude oil have fallen about 40 percent since the organization declined to cut production at a late November meeting in Vienna.

    Iran, Venezuela and Algeria have been pressing the cartel to cut production to firm up prices, but Saudi Arabia, the United Arab Emirates and other gulf allies are refusing to do so. At the same time, Iraq is actually pumping more.

    Saudi officials have said that if they cut production and prices go up, they will lose market share and merely benefit their competitors. They say they are willing to see oil prices go much lower, but some oil analysts think they are merely bluffing.

    The death of King Abdullah in January has prompted speculation that Saudi Arabia could shift direction, and there has been some softening in the Saudi public position in recent days. But for the immediate future, most analysts say the Saudi royal family will resist any sharp changes in policy, especially as it tries to navigate multiple foreign policy challenges, like the chaos in neighboring Yemen.

    If prices remain low for a year or longer, the newly crowned King Salman may find it difficult to persuade other OPEC members to keep steady against the financial strains. The International Monetary Fund estimates that the revenues of Saudi Arabia and its Persian Gulf allies will slip by $300 billion this year.
  6. Is there a conspiracy to bring the price of oil down?
    There are a number of conspiracy theories floating around. Even some oil executives are quietly noting that the Saudis want to hurt Russia and Iran, and so does the United States — motivation enough for the two oil-producing nations to force down prices. Dropping oil prices in the 1980s did help bring down the Soviet Union, after all.

    But there is no evidence to support the conspiracy theories, and Saudi Arabia and the United States rarely coordinate smoothly. And the Obama administration is hardly in a position to coordinate the drilling of hundreds of oil companies seeking profits and answering to their shareholders.
  7. When are oil prices likely to recover?
    Not anytime soon. Oil production is still increasing in the United States and some other countries.

    But production is likely to begin declining in the second half of the year, and then crude prices will also begin to recover in a lasting way. The history of oil is of booms and busts followed by more of the same.