DealBook: F.B.I. Said to Be Looking at Suspicious Heinz Trades

The Federal Bureau of Investigation has opened a criminal inquiry into suspicious trades placed ahead of the $23 billion acquisition of H.J. Heinz, a person briefed on the matter said on Tuesday.

The F.B.I.’s involvement adds to the scrutiny surrounding the deal and further highlights the temptation that major takeovers present to traders.

Last week, a day after the deal was announced, the Securities and Exchange Commission promptly froze a Swiss account linked to possible insider trading in the Heinz takeover.

Like the S.E.C., the F.B.I. is examining a series of well-timed options trades made just before Berkshire Hathaway and the investment firm 3G Capital announced that they had agreed to buy Heinz. News of the deal sent the company’s shares, and the value of the options contracts, soaring.

“The F.B.I. is consulting with the S.E.C. to see if a crime was committed,” an F.B.I. spokesman said. He added that the bureau’s New York office, a main player behind the government’s recent insider trading crackdown, was handling discussions with the S.E.C.

The S.E.C. has not identified the trader or traders who placed the suspicious bets. The F.B.I. declined to comment further.

Authorities did acknowledge that the investigation centers on an unusual spike in options trades involving Heinz. The trades involved 2,533 options bought last Wednesday through a Swiss account at Goldman Sachs, according to the S.E.C.

Using what is known as a call option, the trades placed a bullish bet on Heinz without actually buying the company’s shares. Instead, the trades grant the opportunity to buy the stock at a given price through June.

The move struck authorities as out of the ordinary. For months leading up to the deal, there had been scant activity in Heinz options.

“The timing, size and profitability of the defendants’ trades, as well as the lack of prior history of significant trading in Heinz” in the account, the commission said in the complaint, “makes these trades highly suspicious.”

The anonymous investors spent nearly $90,000 on the call options, a position that skyrocketed on paper to $1.8 million after the deal was announced on Thursday. At the time, Heinz’s stock rose to $72.50, up 20 percent from Wednesday, matching Berkshire’s offer price.

The trades were funneled through the Goldman account, identified as “GS & Co c/o Zurich Office.” The bank, which is not accused of wrongdoing, has said it is cooperating with the investigation.

The growing inquiry may cast a cloud over the Heinz deal. While the S.E.C. already raised concerns, the F.B.I.’s examination adds to the scrutiny and for the first time raises the prospect of criminal actions.

Once authorities identify the traders, the S.E.C. and F.B.I. will turn their focus to the limited universe of insiders who could have leaked details of the deal. Dozens of people — including executives at both the buyers and the seller — possessed confidential information about the deal.

As authorities pursue the Heinz case, they are building on a recent campaign to root out insider trading on Wall Street. The S.E.C. filed 58 such actions last year, and the F.B.I. helped bring criminal cases in a number of actions against hedge funds and corporate insiders.

A version of this article appeared in print on 02/20/2013, on page B3 of the NewYork edition with the headline: F.B.I. Said to Be Looking at Heinz Trades.

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The New Old Age Blog: The Reluctant Caregiver

Now and then, I refer to the people that caregivers tend to as “loved ones.” And whenever I do, a woman in Southern California tells me, I set her teeth on edge.

She visits her mother-in-law, runs errands, helps with the paperwork — all tasks she has shouldered with a grim sense of duty.  She doesn’t have much affection for this increasingly frail 90something or enjoy her company; her efforts bring no emotional reward. Her husband, an only child, feels nearly as detached. His mother wasn’t abusive, a completely different scenario, but they were never very close.

Ms. A., as I’ll call her because her mother-in-law reads The Times on her computer, feels miserable about this. “She says she appreciates us, she’s counting on us. She thanks us,” Ms. A. said of her non-loved one. “It makes me feel worse, because I feel guilty.”

She has performed many services for her mother-in-law, who lives in a retirement community, “but I really didn’t want to. I know how grudging it was.”

Call her the Reluctant Caregiver. She and her husband didn’t invite his parents to follow them to the small city where they settled to take jobs. The elders did anyway, and as long as they stayed healthy and active, both couples maintained their own lives. Now that her mother-in-law is widowed and needy, Ms. A feels trapped.

Ashamed, too. She knows lots of adult children work much harder at caregiving yet see it as a privilege. For her, it is mere drudgery. “I don’t feel there’s anybody I can say that to,” she told me — except a friend in Phoenix and, anonymously, to us.

The friend, therapist Randy Weiss, has served as both a reluctant caregiver to her mother, who died very recently at 86, and a willing caregiver to her childless aunt, living in an assisted living dementia unit at 82. Spending time with each of them made Ms. Weiss conscious of the distinction.

Her visits involved many of the same activities, “but it feels very different,” she said. “I feel the appreciation from my aunt, even if she’s much less able to verbalize it.” A cherished confidante since adolescence, her aunt breaks into smiles when Ms. Weiss arrives and exclaims over every small gift, even a doughnut. She worked in the music industry for decades and, despite her memory loss, happily sings along with the jazz CDs Ms. Weiss brings.

Because she had no such connection with her mother, whom Ms. Weiss described as distant and critical, “it’s harder to do what I have to do,” she said. (We spoke before her mother’s death.) “One is an obligation I fulfill out of duty. One is done with love.”

Unlike her friend Ms. A, “I don’t feel guilty that I don’t feel warmly towards my mother,” Ms. Weiss said. “I’ve made my peace.”

Let’s acknowledge that at times almost every caregiver knows exhaustion, anger and resentment.  But to me, reluctant caregivers probably deserve more credit than most. They are not getting any of the good stuff back, no warmth or laughter, little tenderness, sometimes not even gratitude.

Yet they are doing this tough work anyway, usually because no one else can or will. Maybe an early death or a divorce means that the person who would ordinarily have provided care can’t. Or maybe the reluctant caregiver is simply the one who can’t walk away.

“It’s important to acknowledge that every relationship doesn’t come from ‘The Cosby Show,’” said Barbara Moscowitz when I called to ask her about reluctance. Ms. Moscowitz, a senior geriatric social worker at Massachusetts General Hospital, has heard many such tales from caregivers in her clinical practice and support groups.

“We need to allow people to be reluctant,” she said. “It means they’re dutiful; they’re responsible. Those are admirable qualities.”

Yet, she recognizes, “they feel oppressed by the platitudes. ‘Your mother is so lucky to have you!’” Such praise just makes people like Ms. A. squirm.

Ms. Moscowitz also worries about reluctant caregivers, and urges them to find support groups where they can say the supposedly unsay-able, and to sign up early for community services — hotlines, senior centers, day programs, meals on wheels — that can help lighten the load.

“Caregiving only goes one way – it gets harder, more complex,” she said. “Support groups and community resources are like having a first aid kit. It’s going to feel like even more of a burden, and you need to be armed.”

I wonder, too, if reluctant caregivers have a romanticized view of what the task is like for everyone else. Elder care can be a wonderful experience, satisfying and meaningful, but guilt and resentment are also standard parts of the job description, at least occasionally.

For a reluctant caregiver, “the satisfaction is, you haven’t turned your back,” Ms. Moscowitz said. “You can take pride in that.”

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Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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The New Old Age Blog: The Reluctant Caregiver

Now and then, I refer to the people that caregivers tend to as “loved ones.” And whenever I do, a woman in Southern California tells me, I set her teeth on edge.

She visits her mother-in-law, runs errands, helps with the paperwork — all tasks she has shouldered with a grim sense of duty.  She doesn’t have much affection for this increasingly frail 90something or enjoy her company; her efforts bring no emotional reward. Her husband, an only child, feels nearly as detached. His mother wasn’t abusive, a completely different scenario, but they were never very close.

Ms. A., as I’ll call her because her mother-in-law reads The Times on her computer, feels miserable about this. “She says she appreciates us, she’s counting on us. She thanks us,” Ms. A. said of her non-loved one. “It makes me feel worse, because I feel guilty.”

She has performed many services for her mother-in-law, who lives in a retirement community, “but I really didn’t want to. I know how grudging it was.”

Call her the Reluctant Caregiver. She and her husband didn’t invite his parents to follow them to the small city where they settled to take jobs. The elders did anyway, and as long as they stayed healthy and active, both couples maintained their own lives. Now that her mother-in-law is widowed and needy, Ms. A feels trapped.

Ashamed, too. She knows lots of adult children work much harder at caregiving yet see it as a privilege. For her, it is mere drudgery. “I don’t feel there’s anybody I can say that to,” she told me — except a friend in Phoenix and, anonymously, to us.

The friend, therapist Randy Weiss, has served as both a reluctant caregiver to her mother, who died very recently at 86, and a willing caregiver to her childless aunt, living in an assisted living dementia unit at 82. Spending time with each of them made Ms. Weiss conscious of the distinction.

Her visits involved many of the same activities, “but it feels very different,” she said. “I feel the appreciation from my aunt, even if she’s much less able to verbalize it.” A cherished confidante since adolescence, her aunt breaks into smiles when Ms. Weiss arrives and exclaims over every small gift, even a doughnut. She worked in the music industry for decades and, despite her memory loss, happily sings along with the jazz CDs Ms. Weiss brings.

Because she had no such connection with her mother, whom Ms. Weiss described as distant and critical, “it’s harder to do what I have to do,” she said. (We spoke before her mother’s death.) “One is an obligation I fulfill out of duty. One is done with love.”

Unlike her friend Ms. A, “I don’t feel guilty that I don’t feel warmly towards my mother,” Ms. Weiss said. “I’ve made my peace.”

Let’s acknowledge that at times almost every caregiver knows exhaustion, anger and resentment.  But to me, reluctant caregivers probably deserve more credit than most. They are not getting any of the good stuff back, no warmth or laughter, little tenderness, sometimes not even gratitude.

Yet they are doing this tough work anyway, usually because no one else can or will. Maybe an early death or a divorce means that the person who would ordinarily have provided care can’t. Or maybe the reluctant caregiver is simply the one who can’t walk away.

“It’s important to acknowledge that every relationship doesn’t come from ‘The Cosby Show,’” said Barbara Moscowitz when I called to ask her about reluctance. Ms. Moscowitz, a senior geriatric social worker at Massachusetts General Hospital, has heard many such tales from caregivers in her clinical practice and support groups.

“We need to allow people to be reluctant,” she said. “It means they’re dutiful; they’re responsible. Those are admirable qualities.”

Yet, she recognizes, “they feel oppressed by the platitudes. ‘Your mother is so lucky to have you!’” Such praise just makes people like Ms. A. squirm.

Ms. Moscowitz also worries about reluctant caregivers, and urges them to find support groups where they can say the supposedly unsay-able, and to sign up early for community services — hotlines, senior centers, day programs, meals on wheels — that can help lighten the load.

“Caregiving only goes one way – it gets harder, more complex,” she said. “Support groups and community resources are like having a first aid kit. It’s going to feel like even more of a burden, and you need to be armed.”

I wonder, too, if reluctant caregivers have a romanticized view of what the task is like for everyone else. Elder care can be a wonderful experience, satisfying and meaningful, but guilt and resentment are also standard parts of the job description, at least occasionally.

For a reluctant caregiver, “the satisfaction is, you haven’t turned your back,” Ms. Moscowitz said. “You can take pride in that.”

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Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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Gadgetwise Blog: Q&A: Locking Caps on an iPhone

While I have no desire to SHOUT MY WAY through text messages, I do have to use ALL UPPERCASE sometimes and would like to have CAPS LOCK available on my iPhone. Do I have ANY HOPE?

While the phone’s software keyboard has no dedicated Caps Lock key, quickly tapping the Shift key twice turns on the Caps Lock function. The Shift key turns blue when in Caps Lock mode. To turn off the Caps Lock mode, tap the Shift key again.

The iPhone keyboard has a few other shortcuts to make typing in such a small area more efficient. For example, instead of tapping the .?123 key in the bottom-left corner to switch over to the section of the keyboard that holds the numbers and punctuation keys (and then having to tap the corner key again to switch back to the ABC keyboard), just press the .?123 key down and slide your finger to the number or punctuation mark you need. Once you slide over and select the character, you can resume typing without having to tap back and forth between the different keyboards.

Pressing and holding keys for vowels (and other letters) that use accent marks reveals a pop-up list of accented characters to choose from, like é or ü. When you tap the space bar twice at the end of a sentence, the iPhone inserts a period and capitalizes the next letter you type to begin a new sentence. Apple’s site has an illustrated page of other tips and tricks for the iPhone 5.

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European Parliament Approves Plan to Bolster Carbon Trading

LONDON — In a move to bolster the floundering European market for carbon offsets, the environmental committee of the European Parliament voted Tuesday to allow the European Commission to reduce the numbers of carbon permits that it auctions in the next three years.

Prices of carbon allowances, which permit companies to emit greenhouse gases, plunged below €3, or about $4, per ton last month, compared to around €30 per ton in 2008 and about €9 per ton a year ago.

Many analysts think that setting a hefty price on carbon will prove the most efficient way to reduce emissions. The European system is the world’s flagship program and its struggles could have negative implications for other countries that are considering similar efforts, including the United States.

The vote Tuesday, by an unexpectedly decisive 38 to 25 with two abstentions, is “a lifeline for the carbon market and for emissions trading as a policy tool for curbing emissions,” said Stig Schjoelset, head of carbon analysis at Reuters Point Carbon, a market research firm in Oslo. Mr. Schoelset added that if the vote had gone the other way, the system would have been “more or less dead.”

Although this vote is only a first step, politicians and analysts said it might allow the European Union program to begin recovering credibility with markets as a means to curb emissions.

“It is important that we get this right, and the sooner we get it right the better,” the E.U. climate action commissioner, Connie Hedegaard, said during an interview Monday.

Prices for carbon allowances on the Emissions Trading System, the world’s premier cap and trade program, fell to as low as €2.8 per metric ton last month. After the vote Tuesday prices were about €4.5 per ton, after closing at €5.13 per ton on Monday.

The proposal approved Tuesday would take 900 million carbon credits that were scheduled to be auctioned over 2013 to 2015 and “backload” them to 2019 and 2020 in order to put a floor under prices. It is estimated that there is now a surplus of 2 billion credits, so this move will not soak up all of the carbon allowance glut.

The changes will need to be approved later by the full Parliament and member states.

“It is really the first step in a long, long process,” said Kass Burchett, an analyst at IHS, an energy research firm.

The European Trading System was set up by the European Union to provide a signal to polluters like utilities and heavy manufacturers that they needed to reduce carbon emissions. Companies are either allocated or required to buy at auction enough credits to offset their annual emissions. The trouble is that with Europe’s dismal economy dampening industrial activity and energy use, there is now a huge surplus of allowances, or credits, depressing their price.

Industrialists and analysts say that single-digit prices do not provide the intended incentive for companies to switch to cleaner fuels and energy-efficient technology. Mr. Schoelset said that to encourage switching from coal to natural gas, a price of €30 to €40 per ton is needed, while an even higher level of perhaps €60 to €150 per ton is required for utilities to invest in expensive carbon–reducing technologies like carbon capture and storage.

“The vote signals the intention of the European Parliament to begin the process of restoring the most cost-effective approach to meeting Europe’s energy needs and reducing emissions over time,” David Hone, chief climate change adviser to the oil giant Royal Dutch Shell, said in a statement. “It will not immediately restore the system to good health, but it is a start.”

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National Briefing | South: Abortion Curbs Clear Senate in Arkansas

The State Senate voted 25 to 7 on Monday to ban most abortions 20 weeks into a pregnancy. The measure goes back to the House to consider an amendment that added exceptions for rape and incest. The legislation is based on the belief that fetuses can feel pain 20 weeks into a pregnancy, and is similar to bans in several other states. Opponents say it would require mothers to deliver babies with fatal conditions. Gov. Mike Beebe has said he has constitutional concerns about the proposal but has not said whether he will veto it.

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National Briefing | South: Abortion Curbs Clear Senate in Arkansas

The State Senate voted 25 to 7 on Monday to ban most abortions 20 weeks into a pregnancy. The measure goes back to the House to consider an amendment that added exceptions for rape and incest. The legislation is based on the belief that fetuses can feel pain 20 weeks into a pregnancy, and is similar to bans in several other states. Opponents say it would require mothers to deliver babies with fatal conditions. Gov. Mike Beebe has said he has constitutional concerns about the proposal but has not said whether he will veto it.

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Gadgetwise Blog: Q&A: Controlling Access to a Kindle Fire HD

Is there any way to keep my kid from roaming around through the videos on my Kindle Fire HD tablet?

Amazon’s Kindle Fire tablets include built-in parental controls for restricting access to specific apps, functions and content on the device. On the Kindle Fire HD, swipe your finger down on the screen to get to the settings area and tap More. Tap Parental Controls and then tap the On button. Select a password (one that will be needed to unlock the restrictions), and tap the Finish button. Select the apps and actions you want to block, like the Web browser, e-mail, video playback or the power to make purchases. Amazon has more information on parental controls here.

The newer Kindle Fire HD models also include Kindle FreeTime, an app that lets you select videos, apps and other specific content the child can view on the tablet. Instructions for setting up a child’s FreeTime profile are on Amazon’s site as well.

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Pistorius Denies Murder in Killing of Girlfriend

PRETORIA, South Africa — Facing a charge of premeditated murder following the killing of his girlfriend, Oscar Pistorius, the double amputee track star and one of the world’s best-known athletes, flatly denied on Tuesday that he intended to take her life when he opened fire at a closed bathroom door at his home last week.

“I fail to understand how I could be charged with murder, let alone premeditated, ” he said in an affidavit read to a packed courtroom, “I had no intention to kill my girlfriend.”

His assertion contradicted an earlier accusation from prosecutor Gerrie Nel that Mr. Pistorius committed premeditated murder when he rose from his bed, pulled on prosthetic legs, walked more than 20 feet from a bedroom and pumped four bullets into the door, three of which struck Reeva Steenkamp, Mr. Pistorius’s girlfriend, on the other side.

It was the first time that either the prosecution or Mr. Pistorius, appearing at a bail hearing, had publicly provided details of their version of events. The case — one of the most sensational in recent times — stunned South Africa last Thursday when the police arrived at Mr. Pistorius’s house in a gated community in Pretoria to find Ms. Steenkamp dead from gunshot wounds.

“We were deeply in love and I could not be happier. I know she felt the same way,” Mr. Pistorius’s affidavit said. As it was read out, the athlete wept uncontrollably so that magistrate Desmond Nair ordered a brief recess to permit him to regain his composure.

Mr. Pistorius said he heard a noise from the bathroom and put on stumps, not prosthetic legs. He was nervous, he said, because the toilet window did not have burglar bars and contractors who had been working there had left ladders.

The room was dark, he said, and he did not realize that Ms. Steenkamp was not in bed. He felt vulnerable and fearful without his prosthetics and opened fire at the door, he said, then broke it down with a cricket back to discover Ms. Steenkamp.

He carried her downstairs, he said, and “she died in my arms.”

Earlier, Mr. Nair, the magistrate, had said he could not exclude premeditation in the killing so Mr. Pistorius’s bail application would be much more difficult. But he said he would consider downgrading the charges depending on evidence at subsequent hearings.

Prosecutor Nel said Ms. Steenkamp, a model and law graduate who had just made her debut in a reality television show, had been in a tiny room measuring less than 20 square feet when the shots rang out. “She could not go anywhere,” he said. “It must have been horrific.”

“She locked the door for a purpose. We will get to that purpose,” he said. She was struck by three of the four rounds, he said.

But a lawyer acting for Mr. Pistorius, Barry Roux, said the defense would “submit that this is not a murder.” He said there was no evidence that Mr. Pistorius, 26, and Ms. Steenkamp, 29, had fought and there was no evidence of a motive. He also challenged the prosecution to produce a witness to corroborate its version of Mr. Pistorius’s actions.

“Scratch the veneer” of the prosecution case, he said, and there was no evidence to support it.

“All we really know is she locked herself behind the toilet door and she was shot,” Mr. Roux said.

Mr. Nel, the prosecutor, however, declared: “If I arm myself, walk a distance and murder a person, that is premeditated,” he said. “The door is closed. There is no doubt. I walk seven meters and I kill.”

He added “The motive is ‘I want to kill.’ That’s it.”

If convicted of premeditated murder, Mr. Pistorius would face a mandatory life sentence, though under South African law he would be eligible for parole in 25 years at the latest. South Africa abolished the death penalty in 1995.

Mr. Pistorius was appearing for the second time since Friday. He arrived in court looking grim-faced, his jaw set. But, as during his earlier appearance, he broke down in tears when the prosecutor said that he had “killed an innocent woman.”

As the court went into a midday recess, Ms. Steenkamp’s private funeral service began in the southern coastal city of Port Elizabeth, her hometown, with six pallbearers carrying a coffin swathed in a white cloth and white flowers as mourners expressed emotions from dismay to rage. More than 100 relatives and friends attended the funeral at the Victoria Park crematorium.

"Why? Why my little girl? Why did this happen? Why did he do this?" June Steenkamp, the victim’s mother, said in a published interview in The Times of Johannesburg.

Gavin Venter, a former jockey who worked for the victim’s father, a horse trainer, said on Tuesday, “She was an angel. She was so soft, so innocent. Such a lovely person. It’s just sad that this could happen to somebody so good.”

“I’m disgusted with what he did. He must be dealt with harshly,” he added, according to news reports.

The affair has stunned a nation that had elevated Mr. Pistorius as an emblem of the ability to overcome acute adversity and a symbol of South Africa’s ability to project its achievements onto the world stage.

During his first court appearance on Friday, Mr. Pistorius did not enter a formal plea. But a statement released by his agent said that he disputed the charge of premeditated murder “in the strongest terms” and that “our thoughts and prayers today should be” for Ms. Steenkamp, and her family, “regardless of the circumstances of this terrible, terrible tragedy.”

Mr. Pistorius was born without fibula bones and both of his legs were amputated below the knee as an infant. But he became a Paralympic champion and became the first Paralympic sprinter to compete against able-bodied athletes at the 2012 London Olympics.

His triumphs made him a global track star. Several companies have withdrawn lucrative sponsorships and his case has played into an emotional debate in South Africa about violence against women.

Members of the Women’s League of the ruling African National Congress protested outside the building, waving placards saying: “No Bail for Pistorius,” Reuters reported.

Lydia Polgreen reported from Pretoria, South Africa, and Alan Cowell from London.

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Today's Economist: Nancy Folbre: Preschool Economics

Nancy Folbre is an economics professor at the University of Massachusetts, Amherst. She recently edited and contributed to “For Love and Money: Care Provision in the United States.“

Even a 4-year-old can understand the case for early-childhood education. It’s fun, you learn things, you make it easier for Mom and Dad to earn a decent living, and when you grow up you will be better able to earn a decent living yourself. At that point, you will start paying taxes that return the favor, helping finance the retirement and health care of the generation that invested in your education.

President Obama’s proposal to help states develop and expand high-quality early-education programs has won verbal support from across the political spectrum, including David Brooks. More tangible evidence of political viability comes from Oklahoma and Georgia, two traditionally red states that now provide universal voluntary preschool for 4-year-olds.

Still, conservative opposition remains fierce. The loudest complaint is that public programs have not been shown to be cost-effective. But a wealth of research by highly respected economists shows that well-designed, high-quality early-childhood education programs offer a positive payback. At National Public Radio you can listen to the University of Chicago economist James Heckman reiterate this point – as he has been doing for many years.

Timothy Bartik of the Upjohn Institute offers great running commentary on debates over technical issues (such as whether small, demonstrably successful programs can be effectively scaled up) at his Investing in Kids blog.

Academics aren’t the only ones on board. The U.S. Chamber of Commerce published a report last year explaining “Why Business Should Support Early-Childhood Education.”

But the case for a public commitment to early-childhood education extends well beyond any cost-benefit analysis of child outcomes. It would help parents meet their child-care needs and reconcile the conflicting demands of wage employment and family care.

As a report published by the Center for American Progress emphasizes, preschool enrollment rates are already high among 4-year-olds in particular. But high costs mean that participation is highest among the poor, who qualify for Head Start, and the affluent, who can afford to pay out of pocket.

Even parents who currently rely on informal child-care arrangements would benefit from more dependable public provision. Many are just one family member, friend or neighbor away from a child-care crisis that could endanger their jobs. At Forbes, Bryce Covert makes a case for emphasizing the positive employment impact of the proposed policy.

Women’s labor-force participation rates in the United States were once relatively high by international standards. In 1990, we ranked sixth among 22 countries of the Organization for Economic Cooperation and Development. By 2010, our rank had fallen to 17th. Francine Blau and Lawrence Kahn of Cornell University estimate that about 29 percent of the decrease in women’s labor-force participation relative to other countries is attributable to those countries’ adoption of more “family friendly” public policies than those in the United States.

Improvements in children’s future productivity and greater opportunities for productive employment for everyone will shape the future of the United States economy. Conservatives enjoy their strongest support among older white voters, many of whom have already raised their children.

Both young parents and young children are far more ethnically diverse than the population over age 65.

But as the journalist Ronald Brownstein points out in an article memorably titled “The Gray and the Brown,” the very structure of our social programs makes the generations dependent on one another:

Today’s minority students will represent an increasing share of tomorrow’s workforce and thus pay more of the payroll taxes that will be required to fund Social Security and Medicare benefits for the mostly white Baby Boomers. Many analysts warn that if the U.S. doesn’t improve educational performance among African-American and Hispanic children, who now lag badly behind whites in both high school and college graduation rates, the nation will have difficulty producing enough high-paying jobs to generate the tax revenue to maintain a robust retirement safety net.

These are linkages that voters sorely need to understand. In coming months both Social Security and Medicare are likely to withstand the budgetary pressures imposed by the threat of sequestration. On the other hand, programs directed at children – including support for early-childhood education – are likely to come under the deficit-cutting knife.

In the long run, that knife will cut both ways, bleeding our system of intergenerational transfers.

Which is one more reason why it’s important for President Obama and his supporters to wrestle it out of conservative hands.

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