The U.S. Economy Continues to Defy Expectations

The American economy grew at a healthy pace through the end of 2023, according to government data released today. Unemployment remained low, inflation continued to cool and gross domestic product rose at a 3.3 percent annual rate in the fourth quarter, beating forecasters’ expectations.

A recession, which had been widely predicted a year ago, hasn’t materialized. There is also little sign that a major downturn is imminent this year. Forecasts point to continued, albeit slower, growth in the first three months of 2024.

Overall, layoffs remain low, job growth has held steady and consumer sentiment is at last showing signs of rebounding after years in the doldrums.

President Biden and his aides celebrated the new data as evidence that his economic policies were working. Janet Yellen, the Treasury secretary, argued today that the Biden administration had successfully navigated challenging headwinds caused by the pandemic and had led a recovery outpacing those in the rest of the world. She also directly criticized Donald Trump’s economic policies, in a preview of the general election arguments to come.

Risks remain: New filing for unemployment benefits rose last week, consumers are spending more with credit and conflict in the Middle East could worsen. But so far investors seem unfazed.

The U.S. warned of North Korean threats

American officials warned that Kim Jong-un, North Korea’s leader, could take some form of lethal military action against South Korea in the coming months. The officials added that they did not see an imminent risk of war, but said that Kim’s recent declarations of hostility had become more aggressive than his previous provocations.

The officials said that Kim could carry out strikes in a way that he thinks would avoid rapid escalation, pointing to North Korea’s 2010 shelling of a South Korean island as an example. Kim may feel emboldened, the officials said, because of his growing partnership with Russia.

Alabama is set to carry out an execution by nitrogen

At about 6 p.m. Central time, prison officials in Alabama plan to execute Kenneth Smith, who was convicted in a 1988 murder, using nitrogen gas. He would be the first person in the U.S. to be put to death using the method. His lawyer made a last-ditch request for the Supreme Court to intervene, but so far the justices have allowed the execution to move forward.

The nitrogen method, which the state argues is quick and painless, is similar to that used in some assisted suicides in Europe and elsewhere. But Smith’s lawyers have raised concerns that Alabama is not adequately prepared and has not taken steps to ensure Smith will not suffer.

It is the second time the state has tried to kill Smith. A lethal injection failed in November 2022 when executioners could not find a suitable vein before his death warrant expired.

Trump’s opposition to a border deal may sink it

Senators on both sides of the aisle have for weeks been negotiating a compromise on a border deal that would crack down on a surge of migrants and resume discussions over sending more aid to Ukraine. But Senator Mitch McConnell, who is the minority leader and has backed the deal, told Republicans privately that Donald Trump’s opposition to it had made the prospect of its passage more difficult.

Trump has encouraged Republicans to reject any border deal unless they get everything the party has demanded. Senators have conceded that Trump’s opposition might have doomed an agreement that otherwise would have a good chance of uniting the two parties.

True crime’s fourth wall is cracking

Gypsy Rose Blanchard’s life story has captivated social media. After her boyfriend murdered her abusive mother, she went to prison for seven years and was released last month. A snippet of a documentary about Blanchard’s life caught the attention of my colleague Maya Salam, who writes about true crime.

The clip is a video Blanchard recorded soon after the killing, and Maya believes it represents a shift in true crime storytelling. The footage, she writes, shows how the proliferation of smartphone videos offers the perspectives of those involved, often during the period in which the crimes took place.

Is A.I. infringing on copyrights?

Midjourney, an image generator powered by artificial intelligence, can almost magically transform a text prompt into an image. But when an artist recently asked it to create an image of Joaquin Phoenix from “The Joker,” the 2019 film, the system made an image nearly identical to a frame from the movie. Another A.I. service created artwork resembling Mario when it was asked for an “Italian video game character.”

The results raise questions about the training data used to create A.I. systems and whether the companies are violating copyright laws.

Marsupials with no time to rest

You may have heard someone who cuts into their sleep for work or play use the phrase, “I’ll sleep when I’m dead.” Male antechinuses, a rodentlike marsupial from Australia, seem to take that saying literally.

A study published today found that the animals can shave off three or more hours of sleep every night during their three-week breeding season, after which they die. It might not sound like much, but, as one researcher put it, a human who lost that much sleep would find their coordination “reduced to the level of someone legally intoxicated.”

Have an unhurried evening.

Thanks for reading. Jonathan Wolfe will write the newsletter tomorrow. I’ll be back on Monday. — Matthew

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