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Houthi squeeze on Red Sea shipping risks enormous cost to global economy  on December 31, 2023 at 11:00 am Business News | The Hill

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The Houthi rebel group in Yemen has almost completely shut down a key shipping route in the Red Sea, costing the global economy and setting up a huge challenge for the White House. 

The relentless Houthi attacks on merchant vessels and commercial boats pushed several of the world’s largest shipping companies to cancel transits through the Red Sea. Oil-producing giant BP also decided to avoid the shipping lane.

Now, merchant boats are forced to take the long way around, circling Africa and the Cape of Good Hope to reach their destinations. 

Nick Childs, a senior fellow for naval forces and maritime security at the International Institute for Strategic Studies (IISS), said the Red Sea threat has the potential to damage the global economy in the long term, adding the conflict points to a more unstable world that must be addressed. 

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“Economies have to absorb the increased costs and that will have an impact, not just on the maritime industry, but [also on] economic health more generally,” he said. “There has to be more attention paid to maritime security and maritime domain awareness.” 

“But there is another problem,” Childs continued. “Navies are a lot more busy doing other things as well, including worrying about Russia-Ukraine, worrying about what may or may not be happening in the Indo Pacific.” 

The Red Sea is a major shipping lane route, facilitating roughly 10 percent of the world’s commerce each year. 

Sailing through the Suez Canal and down the Red Sea and Gulf of Aden offers a shortcut connecting Europe to Asia and the Pacific region; it is used by about one-third of global shipping companies. 

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Rerouting all the way around Africa adds some 3,000 nautical miles and up to two weeks of travel, and shipping companies are now adding the extra costs as a transit disruption surcharge or a war risk surcharge, as referred to by Israeli shipping company ZIM. 

“Diverting vessels around the Cape of Good Hope to mitigate the ongoing risks of sailing through the region is a necessary step in the interest of safety, but it has ultimately brought about increased costs for carriers,” said Danish shipping giant Maersk in an advisory. 

The reroutes affect 17 percent of global shipping traffic, and cargo costs for carriers are expected to soar 15 to 20 percent, according to the American Journal of Transportation. 

If the problem persists, the impact on the global economy will be measurable and could trickle down to the average consumer, said Alan Deardorff, a professor emeritus of public policy and economics at the University of Michigan.  

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Still, Deardorff added the greater cost will be on shipping companies and their suppliers. 

“They’re going to be hurt by it, absolutely,” he said, but noted there would be a limit in how much that could trickle down. “The effect on average price and the effect on inflation might be measurable, but I don’t think it’s going to be something people will correctly notice.” 

The Houthis, who are backed by Iran, say they are targeting Israel-based ships or vessels headed to Israel. They are attacking ships as they cross the strait of Bab el-Mandeb, connecting the Red Sea to the Gulf of Aden. 

The Red Sea hostilities are part of a pattern of Middle East attacks from Iranian-backed groups against the U.S. and Israel in response to the Israel-Hamas war. With Israel vowing to continue fighting against Palestinian militant group Hamas until it is destroyed, the Middle East region is expected to remain unstable. 

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More than other Iranian-backed groups, the Houthis have carried out bold tactics, sending in a helicopter team to seize a commercial boat in November and damaging another ship earlier this month with rockets. They have often launched a barrage of drones and missiles to target ships and U.S. naval assets.

The U.S. announced a new task force last week involving several nations to deter the Houthis from carrying out the attacks and protect merchant ships. But the task force simply builds on an existing team under the multinational Combined Maritime Forces, which is already deployed to the Red Sea. And the Houthis have promised to continue the attacks.

“We will make American battleships, interests, and navigation the targets of our missiles, drones and military operations,” said Houthi leader Abdul-Malik al-Houthi in a late December speech shared on an Iranian resistance group Telegram page.

The Houthis have also taunted the U.S. for firing expensive missiles to counter cheap drones in the Red Sea. 

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Pentagon press secretary Maj. Gen. Pat Ryder told reporters last week that the task force, called Operation Prosperity Guardian, will serve as a “highway patrol” in the Red Sea that will pressure the Houthis. 

“It’s a defensive coalition meant to reassure global shipping in mariners that the international community is there to help with safe passage,” he said. “The Houthis need to stop these attacks. They need to stop them now.” 

“And they really need to ask themselves if they’ve bitten off more than they can chew when it comes to taking on the entire international community and negatively impacting billions and billions of dollars in global trade, economic prosperity and international law,” Ryder continued. 

Even if it fails to stop Houthi attacks, the task force could at the very least give merchant boats the protection they need to safely cross. 

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After announcing it would no longer transit the Red Sea, Maersk now plans to send more ships through the Suez Canal and the Red Sea, according to Reuters. 

And French company CMA CGM Group is also increasing the number of ships it is sending through the Red Sea, according to a company notice this week. 

But German-based shipping company Hapag-Lloyd said in an update it was frequently monitoring the situation and will resume normal transit when “it is deemed safe for our vessels, crews and your cargo on board.”

Swedish company MSC, which recently had one of its vessels attacked by the Houthis, has also not announced a change in plans, along with other companies that have paused Red Sea transits. 

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Childs, the expert from the IISS, said the region is facing its most persistent maritime threat since the Somali pirate threat about a decade ago. 

But Childs said shipping companies were able to deter pirates by bolstering security.

The Houthis, he said, are displaying new tactics, firing anti-ship cruise and ballistic missiles, and they are a state actor, as opposed to non-state actors like Somali pirates.

“It’s a much more sensitive and complicated political arena that they’re operating in at the moment,” he said of the U.S. and its allies. Childs raised doubts of whether the new task force will deter a long-term security threat in the region. 

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”The question that is growing in people’s minds is you can’t be on the defensive in perpetuity if it’s not having any effects that reduces your deterrence,” he added. “So what are the alternatives?” 

​Defense, Business, News, Houthi attacks, Houthi rebels, Iran, Red Sea, yemen The Houthi rebel group in Yemen has almost completely shut down a key shipping route in the Red Sea, costing the global economy and setting up a huge challenge for the White House. The relentless Houthi attacks on merchant vessels and commercial boats pushed several of the world’s largest shipping companies to cancel transits through the Red Sea. Oil-producing…  

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Google Accused Of Favoring White, Asian Staff As It Reaches $28 Million Deal That Excludes Black Workers

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Google has tentatively agreed to a $28 million settlement in a California class‑action lawsuit alleging that white and Asian employees were routinely paid more and placed on faster career tracks than colleagues from other racial and ethnic backgrounds.

How The Discrimination Claims Emerged

The lawsuit was brought by former Google employee Ana Cantu, who identifies as Mexican and racially Indigenous and worked in people operations and cloud departments for about seven years. Cantu alleges that despite strong performance, she remained stuck at the same level while white and Asian colleagues doing similar work received higher pay, higher “levels,” and more frequent promotions.

Cantu’s complaint claims that Latino, Indigenous, Native American, Native Hawaiian, Pacific Islander, and Alaska Native employees were systematically underpaid compared with white and Asian coworkers performing substantially similar roles. The suit also says employees who raised concerns about pay and leveling saw raises and promotions withheld, reinforcing what plaintiffs describe as a two‑tiered system inside the company.

Why Black Employees Were Left Out

Cantu’s legal team ultimately agreed to narrow the class to employees whose race and ethnicity were “most closely aligned” with hers, a condition that cleared the path to the current settlement.

The judge noted that Black employees were explicitly excluded from the settlement class after negotiations, meaning they will not share in the $28 million payout even though they were named in earlier versions of the case. Separate litigation on behalf of Black Google employees alleging racial bias in pay and promotions remains pending, leaving their claims to be resolved in a different forum.

What The Settlement Provides

Of the $28 million total, about $20.4 million is expected to be distributed to eligible class members after legal fees and penalties are deducted. Eligible workers include those in California who self‑identified as Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and/or Alaska Native during the covered period.

Beyond cash payments, Google has also agreed to take steps aimed at addressing the alleged disparities, including reviewing pay and leveling practices for racial and ethnic gaps. The settlement still needs final court approval at a hearing scheduled for later this year, and affected employees will have a chance to opt out or object before any money is distributed.

H2: Google’s Response And The Broader Stakes

A Google spokesperson has said the company disputes the allegations but chose to settle in order to move forward, while reiterating its public commitment to fair pay, hiring, and advancement for all employees. The company has emphasized ongoing internal audits and equity initiatives, though plaintiffs argue those efforts did not prevent or correct the disparities outlined in the lawsuit.

For many observers, the exclusion of Black workers from the settlement highlights the legal and strategic complexities of class‑action discrimination cases, especially in large, diverse workplaces. The outcome of the remaining lawsuit brought on behalf of Black employees, alongside this $28 million deal, will help define how one of the world’s most powerful tech companies is held accountable for alleged racial inequities in pay and promotion.

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Luana Lopes Lara: How a 29‑Year‑Old Became the Youngest Self‑Made Woman Billionaire

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At just 29, Luana Lopes Lara has taken a title that usually belongs to pop stars and consumer‑app founders.

Multiple business outlets now recognize her as the world’s youngest self‑made woman billionaire, after her company Kalshi hit an 11 billion dollar valuation in a new funding round.

That round, a 1 billion dollar Series E led by Paradigm with Sequoia Capital, Andreessen Horowitz, CapitalG and others participating, instantly pushed both co‑founders into the three‑comma club. Estimates place Luana’s personal stake at roughly 12 percent of Kalshi, valuing her net worth at about 1.3 billion dollars—wealth tied directly to equity she helped create rather than inheritance.

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Kalshi itself is a big part of why her ascent matters.

Founded in 2019, the New York–based company runs a federally regulated prediction‑market exchange where users trade yes‑or‑no contracts on real‑world events, from inflation reports to elections and sports outcomes.

As of late 2025, the platform has reached around 50 billion dollars in annualized trading volume, a thousand‑fold jump from roughly 300 million the year before, according to figures cited in TechCrunch and other financial press. That hyper‑growth convinced investors that event contracts are more than a niche curiosity, and it is this conviction—expressed in billions of dollars of new capital—that turned Luana’s share of Kalshi into a billion‑dollar fortune almost overnight.

Her path to that point is unusually demanding even by founder standards. Luana grew up in Brazil and trained at the Bolshoi Theater School’s Brazilian campus, where reports say she spent up to 13 hours a day in class and rehearsal, competing for places in a program that accepts fewer than 3 percent of applicants. After a stint dancing professionally in Austria, she pivoted into academics, enrolling at the Massachusetts Institute of Technology to study computer science and mathematics and later completing a master’s in engineering.

During summers she interned at major firms including Bridgewater Associates and Citadel, gaining a front‑row view of how global macro traders constantly bet on future events—but without a simple, regulated way for ordinary people to do the same.

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That realization shaped Kalshi’s founding thesis and ultimately her billionaire status. Together with co‑founder Tarek Mansour, whom she met at MIT, Luana spent years persuading lawyers and U.S. regulators that a fully legal event‑trading exchange could exist under commodities law. Reports say more than 60 law firms turned them down before one agreed to help, and the company then spent roughly three years in licensing discussions with the Commodity Futures Trading Commission before gaining approval. The payoff is visible in 2025’s numbers: an 11‑billion‑dollar valuation, a 1‑billion‑dollar fresh capital injection, and a founder’s stake that makes Luana Lopes Lara not just a compelling story but a data point in how fast wealth can now be created at the intersection of finance, regulation, and software.

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Harvard Grads Jobless? How AI & Ghost Jobs Broke Hiring

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America’s job market is facing an unprecedented crisis—and nowhere is this more painfully obvious than at Harvard, the world’s gold standard for elite education. A stunning 25% of Harvard’s MBA class of 2025 remains unemployed months after graduation, the highest rate recorded in university history. The Ivy League dream has become a harsh wakeup call, and it’s sending shockwaves across the professional landscape.

Jobless at the Top: Why Graduates Can’t Find Work

For decades, a Harvard diploma was considered a golden ticket. Now, graduates send out hundreds of résumés, often from their parents’ homes, only to get ghosted or auto-rejected by machines. Only 30% of all 2025 graduates nationally have found full-time work in their field, and nearly half feel unprepared for the workforce. Go to college, get a good job“—that promise is slipping away, even for the smartest and most driven.​

Tech’s Iron Grip: ATS and AI Gatekeepers

Applicant tracking systems (ATS) and AI algorithms have become ruthless gatekeepers. If a résumé doesn’t perfectly match the keywords or formatting demanded by the bots, it never reaches human eyes. The age of human connection is gone—now, you’re just a data point to be sorted and discarded.

AI screening has gone beyond basic qualifications. New tools “read” for inferred personality and tone, rejecting candidates for reasons they never see. Worse, up to half of online job listings may be fake—created simply to collect résumés, pad company metrics, or fulfill compliance without ever intending to fill the role.

The Experience Trap: Entry-Level Jobs Require Years

It’s not just Harvard grads who are hurting. Entry-level roles demand years of experience, unpaid internships, and portfolios that resemble a seasoned professional, not a fresh graduate. A bachelor’s degree, once the key to entry, is now just the price of admission. Overqualified candidates compete for underpaid jobs, often just to survive.

One Harvard MBA described applying to 1,000 jobs with no results. Companies, inundated by applications, are now so selective that only those who precisely “game the system” have a shot. This has fundamentally flipped the hiring pyramid: enormous demand for experience, shrinking chances for new entrants, and a brutal gauntlet for anyone not perfectly groomed by internships and coaching.

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Burnout Before Day One

The cost is more than financial—mental health and optimism are collapsing among the newest generation of workers. Many come out of elite programs and immediately end up in jobs that don’t require degrees, or take positions far below their qualifications just to pay the bills. There’s a sense of burnout before careers even begin, trapping talent in a cycle of exhaustion, frustration, and disillusionment.

Cultural Collapse: From Relationships to Algorithms

What’s really broken? The culture of hiring itself. Companies have traded trust, mentorship, and relationships for metrics, optimizations, and cost-cutting. Managers no longer hire on potential—they rely on machines, rankings, and personality tests that filter out individuality and reward those who play the algorithmic game best.

AI has automated the very entry-level work that used to build careers—research, drafting, and analysis—and erased the first rung of the professional ladder for thousands of new graduates. The result is a workforce filled with people who know how to pass tests, not necessarily solve problems or drive innovation.

The Ghost Job Phenomenon

Up to half of all listings for entry-level jobs may be “ghost jobs”—positions posted online for optics, compliance, or future needs, but never intended for real hiring. This means millions of job seekers spend hours on applications destined for digital purgatory, further fueling exhaustion and cynicism.

Not Lazy—Just Locked Out

Despite the headlines, the new class of unemployed graduates is not lazy or entitled—they are overqualified, underleveraged, and battered by a broken process. Harvard’s brand means less to AI and ATS systems than the right keyword or résumé format. Human judgment has been sidelined; individuality is filtered out.

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What’s Next? Back to Human Connection

Unless companies rediscover the value of human potential, mentorship, and relationships, the job search will remain a brutal numbers game—one that even the “best and brightest” struggle to win. The current system doesn’t just hurt workers—it holds companies back from hiring bold, creative talent who don’t fit perfect digital boxes.

Key Facts:

  • 25% of Harvard MBAs unemployed, highest on record
  • Only 30% of 2025 grads nationwide have jobs in their field
  • Nearly half of grads feel unprepared for real work
  • Up to 50% of entry-level listings are “ghost jobs”
  • AI and ATS have replaced human judgment at most companies

If you’ve felt this struggle—or see it happening around you—share your story in the comments. And make sure to subscribe for more deep dives on the reality of today’s economy and job market.

This is not just a Harvard problem. It’s a sign that America’s job engine is running on empty, and it’s time to reboot—before another generation is locked out.

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