Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Felix Rohatyn (l) and Paul Volcker. Illustration: Aïda Amer/Axios. Photos: Wally McNamee/Getty Contributor and Ted Thai/Getty Contributor

Two giants of the postwar economic landscape died last week. The actions of Paul Volcker (1927–2019) and Felix Rohatyn (1928–2019) had profound effects on millions of Americans, and bestowed stellar reputations on both men.

Why it matters: There are, and will be, many other successful and powerful technocrats, many of them just as capable as these two paragons of austerity. But none of them are likely to receive the kind of popular acclaim that Volcker and Rohatyn enjoyed.

The big picture: In good times, economic institutions tend to run themselves reasonably effectively. But in times of crisis, the leadership of key individuals often becomes paramount.

  • Volcker became Fed chair in 1979, when inflation was close to 15%. By hiking the Fed funds rate to a peak of 20% in 1981, he sparked the 1980–82 recession, drove unemployment to over 10%, and cost President Jimmy Carter his job. But he also killed inflation, bringing it down to 3% by 1983.
  • "Felix the Fixer" spent most of his career as an M&A banker, but is remembered chiefly for rescuing New York City from the brink of bankruptcy in the 1970s. He refinanced the city's debt, slashed its budget, raised prices in the subway and the city university system, and exercised astonishing fiscal control for almost 20 years as the unelected head of the Municipal Assistance Corporation.

Neither man was broadly popular at the time, but history treated them both very kindly.

  • Volcker and Rohatyn were in large part responsible for the neoliberal consensus that painful measures are often necessary in the short term, in order to build the foundations for long-term prosperity.

Subsequent technocrats were just as important, but didn't receive the same kind of broad public acclaim.

  • Ngozi Okonjo-Iweala did a magnificent job in almost singlehandedly restructuring Nigeria's massive debt burden in 2005, after moving to the country from a long career at the World Bank.
  • The New York Fed's Terrence Checki and Lee Buchheit, a senior partner at Cleary Gottlieb, were also instrumental in helping multiple countries get out from unsustainable debt burdens.
  • Natalie Jaresko, who's managing Puerto Rico's bankruptcy process, is currently performing a role there that's very similar to the one Rohatyn played in New York.

Flashback: Alan Greenspan, Robert Rubin, and Lawrence Summers famously appeared on the cover of Time in 1999 as "the committee to save the world." That cover has not aged well.

  • All three men are now viewed as having mostly benefited the financial services industry, while laying the deregulatory groundwork for the 2008 financial crisis.

The bottom line: Volcker and Rohatyn lived in an era of smoke-filled rooms, and cultivated a certain degree of mystery and opacity. Today's civil servants spend much more time in the public spotlight, being second-guessed every minute on Twitter and on cable news. That makes it much harder for leaders to accumulate the broad respect that's a crucial component of effective leadership.

Go deeper: Former Fed chairman Paul Volcker dies at 92

Go deeper

Biden administration makes first move on data privacy

Illustration: Sarah Grillo/Axios

The Biden administration is launching its first big effort on privacy policy by looking at how data privacy issues affect civil rights.

Why it matters: An administration perspective on privacy policy could be key in developing a long-awaited national privacy law by putting the White House stamp on how to regulate privacy.

Axios Investigates

Exclusive: Airbnb hosts Xinjiang rentals on land owned by sanctioned group

Data: Axios research, Airbnb, Australia Strategic Policy Institute's International Cyber Policy Centre; Map: Jacque Schrag/Axios

Airbnb has more than a dozen homes available for rent in China's Xinjiang region on land owned by an organization sanctioned by the U.S. government for complicity in genocide and forced labor, an Axios investigation has found.

Why it matters: The listings expose Airbnb to regulatory risk under U.S. law. They also land yet another American tech company in the crossfire between the U.S. and China.

For CEOs, social media has lost its fun

Photo illustration: Sarah Grillo/Axios. Photo: Joe Raedle/Getty Images

CEO Jack Dorsey's departure from Twitter shows that, in Silicon Valley today, social media is becoming a field to flee.

Why it matters: Coming on the heels of Facebook's name change and new metaverse focus, Dorsey's resignation is another sign that the industry now views the massive social networks it built over the last two decades as buggy "legacy applications" mired in annoying social problems.