Housing affordability is a top concern for many Americans, and both chambers of Congress have been advancing legislation to help prospective homeownersthough it may take years for those benefits to actually materialize.
This past week, the House of Representatives passed a bipartisan bill called the Housing for the 21st Century Act, which aims to increase the supply of affordable housing. That sets the stage for some political wrangling ahead. The Senate previously passed its own bipartisan legislation in October as part of a broader package, before it was stripped from the final bill, and it is now considering the stand-alone bill, the ROAD to Housing Act. Ultimately, the two chambers must agree on a final version of a housing bill that will also get support from President Donald Trump.
The legislation targets a top concern for Americans. More than 6 in 10 adults (62%) say they are very concerned about the cost of housingtrailing only behind the cost of healthcare (71%) and the price of food and consumer goods (66%), according to the results of a survey of more than 8,500 people conducted by the Pew Research Center in late January.
The Houses legislation marks an important step forward, even if it wont magically fix a crisis that has developed over time and will be similarly resolved in time, according to David M. Dworkin, president and CEO of the National Housing Conference, a nonprofit thats focused on affordable housing.
We got into this crisis one unit at a time, and we will get out of it the same wayone unit at a timethrough a range of coordinated strategies that expand supply, reduce costs, and improve access to affordable homes, Dworkin said in a statement celebrating the passage of the legislation.
Even though it could take time to benefit prospective homeowners, here is how the House bill addresses housing affordability.
MODERNIZES FEDERAL HOUSING AND DEVELOPMENT PROGRAMS
One of the primary goals of the Houses legislation is to streamline the federal and local housing process so that more housing can be built more quickly. And among the densest sections of the 202-page legislation is the section focused on modernizing local development and rural housing programs.
The legislation takes aim at revising federal housing programs to eliminate regulatory bottlenecks and expand financing for affordable housing. The legislation also expands how funds can be used to include paying for new construction.
INCREASES ELIGIBILITY FOR GRANT PROGRAMS
Another major goal of the House legislation is to ensure that federal grant programs reach a broader segment of the population. The legislation significantly expands the criteria to qualify for existing housing grants. One such example is adjusting the HOME Investment Partnerships Program so that income eligibility caps are raised to 100% of the median-family income of the area, and so the program can support more middle-income families.
The bill also introduces new grants that are designed to incentivize local entities to reform their land-use policies and update zoning codes. These grants again target potential local regulatory hurdles that have deterred investment in affordable housing.
FAST-TRACKS ENVIRONMENTAL REVIEW PROCESS
Again targeting potential barriers to construction activities, the legislation streamlines the review process required by the National Environmental Policy Act (NEPA) by exempting certain housing-related activities. Specifically, the bill creates categorical exclusions for certain smaller-scale projects.
The legislation also eliminates duplicative environmental reviews so that housing thats received approval for one federal assistance program doesnt have to undergo another review if the scope, scale, and location of the project remain substantially unchanged.
MODERNIZES MANUFACTURED HOUSING STANDARDS
Finally, the bill envisions a future of more manufactured housing by again changing some of the requirements related to this type of construction that might address the availability of affordable housing.
One of the biggest changes this legislation makes is that it strikes just four words from legislation thats been on the books for more than 50 years: It eliminates the requirement that manufactured homes must be constructed with a permanent chassis. It also updates the construction and safety standards for manufactured homes.
IMPACT ON HOMEBUYERS
Even though it will take time for these changes to roll through the system and benefit prospective homebuyers, trade groups across the various facets of the housing industry celebrated the passage of the House bill.
That said, there could be some hurdles to getting a final piece of legislation across the linepartly because President Trump is pressing Republicans to include a measure that will curb large investors purchases of single-family homes.
Even so, advocates are optimistic that bipartisan support of housing affordability legislation will continue.
Bold action to expand supply and remove barriers to homeownership has never been more urgent, Shannon McGahn, executive vice president and chief advocacy officer for the National Association of Realtors, said in a statement. This legislation takes a comprehensive approach to increasing housing production, modernizing critical federal programs, and strengthening pathways to credit and homeownership.
Tax filing season is in full swing, and while preparing your taxes can often be filled with stress, misplaced documents, and worries about proper filing, this year, there may be a silver lining. According to analysts, many Americans may get larger refunds in 2026 due to Trump’s 2025 One Big Beautiful Bill legislation.
Last year, the average refund was $3,167, but, given there are a number of new changes and deductions, experts say many Americans are looking to get back an additional $1,000 or more. Overall, that could come out to around $90 billion more dollars in tax returns.Here are the biggest changes that could boost your tax refund this year:
No tax on overtime
One of the biggest changes hitting tax filers this year is that overtime hours won’t be taxed. Under the newly signed legislation, there is now a deduction for up to $12,500 of qualifying overtime wages. According to the Tax Policy Center, the law will make for an average tax cut of $1,400. The change applies from this year through 2028.
Larger child tax credit
One change many Americans will see on their tax returns this year is an increase to the Child Tax Credit (CTC). The credit will go from $2,000 per child (under 17 at the end of last year) to $2,200 per child (up from $2,000). The credit begins to phase out for married couples filing jointly with an Adjusted Gross Income (AGI) over $400,000 and $200,000 for single filers.
A new senior deduction
This year, those over 65 are set to receive a new $6,000 Senior Deduction ($12,000 for married couples filing jointly). The temporary deduction is available for 20252028, but there are income limits. The deduction is only for those earning under $75,000 ($150,000 for married couples).
No tax on tips
Tips also won’t be taxed this year, although there are limitations based on the taxpayers income, occupation, and type of work. Still, those that rely on tips, such as servers, drivers, and more, can deduct up to $25,000 from their taxable income. The benefit won’t apply for anyone with a modified adjusted gross income (MAGI) above $150,000 (or $300,000 for couples). The deduction is scheduled to expire after 2028/
Change to standard deduction
There’s also a change in the standard deduction this year. For single taxpayers the dedication is $15,750 and $31,500 for joint filers. For heads of households, the standard deduction is $23,625. Overall, the new deductions make for an increase of 7.9% since last year.
Change to state and local (SALT) deduction
The SALT deduction, which allows taxpayers who itemize to deduct up to a certain limit of state and local income/sales and property taxes from their federal taxable, will see a temporary increase in the cap. For the 2025 tax year the deduction will increase from $10,000 to $40,000. For high tax states, that could make a huge dent in overall deductions. Still, when it comes to this particular dedication, most people won’t see the benefit at all. That’s because most people don’t earn enough to itemize deductions and are better off taking the standard deduction. Those in the 1% to 5% income bracket are set to receive the largest benefit of the change.
In the United States, its one of our annual holidays today, Presidents Day, which celebrates the dozens of American presidents weve had over the centuries. But on the other side of the world, an even larger holiday is kicking off: Chinese New Year. Heres what you need to know about the festival and its importance to the millions of Chinese Americans in the United States.
What is Chinese New Year?
Chinese New Year, also known as the Lunar New Year or, in China, the Spring Festival, is an annual holiday that marks the beginning of the new lunar year. Unlike many Western holidays, the lunar new year does not have a fixed date. Instead, it typically falls on the full moon closest to Spring.
But the Lunar New Year is just the beginning of the festivities in China. It kicks off the beginning of the Spring Festival, which continues for the first week of the new year. Given the cultural importance of the holiday period, hundreds of millions of Chinese travel each year to be with their families and loved ones, making it the worlds largest annual migration event.
As Reuters notes, the Lunar New Year travel period officially began on February 2 and will run for 40 days. During this time, Chinese officials estimate that 9.5 billion domestic trips will be made related to the holiday period. Thats nearly half a billion more trips than last year.
When is Chinese New Year?
This year, the Lunar New Year falls on Tuesday, February 17 in China. But, as with the Gregorian New Year on January 1, celebrants hold festivities the night before, leading up to midnight.
In this way, Lunar New Years Eve falls on Monday, February 16 in China, just as New Years Eve is celebrated on December 31 in the West.
However, because China is 13 to 18 hours ahead of America, both Lunar New Years Eve and Lunar New Years Day in China fall on Monday, February 16, in the United States. However, many who celebrate the festivities in America often stick with the local time zone midnight divide.
Whats the significance of the horse?
Each new Lunar New Year is represented by one of 12 animals. The animals correspond to the Chinese Zodiac.
This year, for the Lunar New Year that commenses on February 17, is the Year of the Horse. The horse represents hard work, bravery, and resilience, according to the Smithsonian.
Are businesses closed on Chinese New Year or Chinese New Years Eve in America?
In most years, usually not. While millions of Americans celebrate the Chinese New Year, its not an official federal or state holiday. However, as Lunar New Years Eve 2026 falls on today, the same day as Presidents Day 2026 in America, the same businesses and institutions that are closed for Presidents Day will also be closed on Chinese New Years Eve.
Fast Company has a rundown of the businesses and government offices that are closed on Presidents Day.
Where can I celebrate Chinese New Year?
Millions of Americans celebrate the Chinese New Year every year. As with the Gregorian New Year, many choose to celebrate it in their homes with their families.
However, public Chinese New Year celebration events are held all over America as well. If youve got a Chinatown in your area, its worth popping by to see what festivities are being held.
After more than a decade of planning, an overlooked side of the ski haven of Aspen, Colorado, will soon be revamped into a new base village.
Named Chalet Alpina and covering two-and-a-half city blocks, the development will build a new modern ski lift that is closer to the city’s downtown and flank it with a luxury hotel and residences, a restaurant and ski museum inside relocated historic chalet buildings, and a broad new public plaza.
The project, which broke ground last fall, is situated at the loading point of the 1937 tow line that was the city’s first mechanized route up the mountain. Remnants of the steel lift that replaced it a decade later will be preserved as part of the project. With cost estimates totaling nearly $350 million and an expected completion in 2029, the 200,000-square-foot project will “fundamentally change” Aspen Mountain, according to a local official.
[Image: courtesy of Chalet Alpina]
Jason Grosfeld, CEO of Irongate Group, the project’s lead developer, says the change is much needed and will provide skiers a more accessible alternative to Aspen’s existing ski base village, known as the Little Nell site. “That’s been built out for years. It’s wonderful, it’s great. People love it,” he says. The side of the mountain where he’s developing Chalet Alpina, however, “has been a little bit forgotten,” he notes.
The Lift One site in the 1960s. [Photo: Aspen Historical Society]
As the site of the city’s first ski lift, this area certainly had a heyday, but Grosfeld says a decision in the 1970s to build a replacement lift that required skiers to walk a bit higher up the mountain to get on board pushed more activity to the Little Nell side. “That was sort of the beginning of the end of this area. In fact, in the ’50s and ’60s and even a little later than that, this area was actually pretty vibrant,” Grosfeld says.
He sees the Chalet Alpina project as a chance to breathe life into this side of the mountain. “I’ve been skiing in in Aspen since I was about seven or eight years old,” he says. “I am incredibly nostalgic about what skiing did for my childhood and my kids’ childhood, and what it still does for me. And so I really did want to bring that back.”
[Image: courtesy of Chalet Alpina]
A close vote and a decade of development
Set in one of the most prestigious and expensive ski resort towns in the U.S., the project has endured a lengthy approval process and no shortage of opposition from developer-weary locals. Plans first started taking shape in the early 2010s, and Grosfeld says the project was shaped by extensive community outreach. A 2019 public vote on the project passed by 0.8%, a margin of just 26 votes.
The slow motion is partly due to the project’s unique makeup. It’s technically a complex combination of land parcels owned by Irongate Group and local developer HayMax Capital, the Aspen Skiing Company, the City of Aspen, and the luxury hotel company Aman Group, all of which had to collaborate to lay out a plan for the project, while also appeasing locals. Permits for the project began to solidify in 2023 and the project was cleared for construction in 2025.
“It’s been over a decade since we started this and it’s been really, really time consuming, and really difficult, but also really, really meaningful,” Grosfeld says. “Many developers don’t get that opportunity in a lifetime. So we’re super lucky and we’re treating the opportunity with the care and attention that it deserves.”
[Image: courtesy of Chalet Alpina]
Callbacks to the past, designed for the present
Working from the beginning of the project with New York-based Guerin Glass Architects, Grosfeld says the project was deeply shaped by the historic nature of the site, including the 1940s-era steel chair lift structure that will be preserved, as well as the two mid-century chalet buildings that are being relocated and retrofitted. (One will be turned into a restaurant; the other into a ski museum, in partnership with the Aspen Historical Society.)
[Image: courtesy of Chalet Alpina]
Scott Glass, cofounder of Guerin Glass Architects, says elements of these historic structures helped shape the new project, both in the forms of the buildings and in their details. “First and foremost, we wanted to be really intentional about the way the building sits on the site and how it cascades down the hill,” he says. “It doesn’t get too big in any single place, and it really feels like it’s part of the slope.”
[Image: courtesy of Chalet Alpina]
The design team pulled on other elements of the surroundings, right down to some board formed retaining walls put in place back in the 1940s, which they then used to inform the look of various walls, planters, and even the ski hut at the base of the extended ski lift.
It’s all in service of blending the project into the city and the mountain. After all, a ski run splices right through the project’s site, making it a gateway to a new Aspen base village. “For us, one of the real treats and important elements of the project is the public nature of everything,” Glass says. “It’s a resort hospitality project, but it’s also a ski museum and a portal to one of the more important elements of the town.”
[Image: courtesy of Chalet Alpina]
Some of these details have had more than a decade to coalesce. Grosfeld says that drawn out timeline, grueling as it may have felt at times, ultimately made the entire project better. “The nice thing about a long process is we get to stare at this thing for like 10 years before we’ve even built it,” he says. “We’ve been staring at these renderings for a long, long time and nobody’s sick of them yet. I can’t say that for every rendering that I’ve stared at for a long time.”
For Americans with conventional work schedules, Monday holidays are often a blessing. However, despite the extra weekend day, these observances can also sneak up on you and be confusing.
Today (Monday, February 16) is Presidents’ Day, which is officially known as Washington’s Birthday. In this story, we’ll break down what exactly is open and closed on the day that we celebrate all the commanders in chief. Before we get into all that, lets look at the history of the day and how it came to be.
What does George Washington have to do with it?
George Washington, the first president of the United States, has everything to do with Presidents’ Day. The holiday evolved out of a remembrance of the man who helped defeat the British and usher the country into a new era as an independent nation.
Washington served as head of state from 1789 to 1797 and died in 1799. The following year many began celebrating his legacy on his birthday, February 22.
It wasnt until 1879 that his birthday became a federal holiday, when President Rutherford B. Hayes signed it into law. At first this new edict only included Washington, D.C., but in 1885 the whole country got in on the act.
What about Abraham Lincoln?
The 16th president, Abraham Lincoln, is also associated with Presidents’ Day because of his February 12 birthday. Some states such as Illinois recognized it as day of observance even though it was never an official federal holiday.
Lincoln’s leadership through the Civil War cemented his legacy as a major political figure.
What is the Uniform Monday Holiday Act?
The Uniform Monday Holiday Act was signed into law on June 28, 1968, by President Lyndon B. Johnson. It did not take effect until January 1, 1971. This new law essentially created the modern three-day weekend.
Before it was the law of the land, Representative Robert McClory of Illinois tried to attach a provision to the act that would have combined both Washington’s and Lincolns birthdays into one observance. The Virginians in Congress disagreed, and the provision was dropped.
Officially, on the federal level, the holiday celebrated on the third Monday of February is George Washingtons birthday. But over time, advertisers and many on the state level began calling the holiday Presidents Day.
Now that you know who and why we celebrate, lets get into what this means on the day itself.
Are stock markets open on Presidents Day?
No. Because it is a federal holiday, most markets are closed. This includes the New York Stock Exchange (NYSE) and the Nasdaq exchange. This also applies to most U.S. bond markets. The only exception is cryptocurrency markets.
Will mail be delivered on Presidents Day?
Post offices will be closed and no mail will be delivered by the U.S. Postal Service (USPS) on Presidents Day. UPS will conduct business as usual. FedEx will also operate but some early on-call or drop box pickups may be modified or unavailable.
Are banks open on Presidents Day?
No. Banks will be closed on Presidents Day. This includes major chain banks such as JPMorgan Chase, Bank of America, and Wells Fargo. The good news is online banking and ATMs outside of branch locations are available.
Are schools open on Presidents Day?
No. Most public schools will be closed. Some may even take Lincolns birthday off in addition.
Are restaurants and fast-food chains open on Presidents Day?
Yes. Most restaurants and fast-food joints want your business and hope you dine out. Your local McDonald’s, Pizza Hut, Popeyes, or Wendy’s should be open for business.
Are grocery stores open on Presidents Day?
Yes. Most grocery stores are open on Presidents Day. Some may have modified hours so it is always a good idea to check ahead. Aldi and Costco are typically open, but hours vary by location.
Are stores open on Presidents Day?
Yes. Most stores are open on Presidents Day. Many will also have sales to attract business on the three-day weekend. This includes big-box retailers such as Target, Walmart, Best Buy, and others. Presidents’ Day is typically a big day for mattress and furniture sellers like Mattress Firm and Raymour & Flanigan.
Are pharmacies open on Presidents Day?
Yes. Most pharmacies are open on Presidents Day, including chain pharmacies like CVS and Walgreens, but it is always good practice to double-check with your preferred location to prevent a wasted trip.
Hello and welcome to Modern CEO! Im Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning.
With apologies to T.S. Eliot, some CEOs are finding that February, not April, may be the cruelest month. In recent weeks, Workday, PayPal, and The Washington Post parted ways with their chief executives, suggesting that high CEO turnover, which reached record levels in recent years, may continue in 2026.
CEO turnover remains high
Russell Reynolds Associates, the global leadership advisory firm, found that 234 CEOs of globally listed companies departed their roles last year, up 16% from 2024 and 21% above the eight-year average. Last year marked the second consecutive record-breaking year for CEO exits, according to the firms Global CEO Turnover Index Report.
The Russell Reynolds report attributes the high turnover in part to pressure from activist investors who want faster results. (Its research shows that 32 CEOs resigned within one year of an activist campaign in 2025, compared to 27 in 2024.) The data also suggests that boards are willing to pull the trigger earlier when performance stalls.
Its too early to predict whether 2026 will set another record for CEO turnover, but the underlying macro pressuresincluding activist influence, market volatility, and ongoing transformationremain in place, says Laura Mantoura, managing director in Russell Reynoldss U.S. Board & CEO Advisory practice. As a result, sustained high levels of CEO turnover should be expected.”
However, not everyone is convinced this is the new normal. Andy Challenger, chief revenue officer at global outplacement firm Challenger, Gray & Christmas, sees turnover leveling off after three years of brisk executive change, which followed a reluctance to change leaders during the COVID-19 crisis in 2020 and 2021.
I think our initial expectation right now is that the demand for change at the top is cooling a bit despite some big recent examples, he says.
Challenger notes that theres one scenario that could trigger another record wave of CEO exits: a recession.
Experience wins
Investor demands appear to be pushing boards to favor experienced CEOs at public companies. Of the CEOs who took the reins at S&P 500 companies in 2025, 79% were first-time CEOs, down from 83% in 2024, and lower than the eight-year average of 85%, according to Russell Reynolds.
That trend is playing out in 2026 succession scenarios: Alex Chriss, who had been an executive vice president at Intuit before becoming CEO of PayPal, is being replaced by Enrique Lores, who spent six years as president and CEO of HP. Workday cofounder Aneel Bhusri, who has served as the software companys CEO or co-CEO at various points during the last 15 years, takes over from Carl Eschenbach, who had been a partner at Sequoia Capital and president and chief operating officer at VMware before joining Workday.
Whether the recent spike in CEO turnover represents a temporary surge or permanent shift, executive recruiters and advisers say boards need to prioritize succession planning, and they need to think about the companys needs in the coming years.
As leadership expert Bill George has said: Figure out what [the company] is going to need for the next 10 years, and find people with the mental agility and courage to look at it differently than you looked at it.
Your leadership outlook
Do you see CEO turnover continuing at a rapid pace? Or are you, like Challenger, expecting it to level off? Let me know your thoughts. My email address is stephaniemehta@mansueto.com.
Read more: CEO turnover
The surprising power of interim CEOs
How two CEOs hold themselves to a high productivity standard
AI is rewriting the CEO job description. Are you ready?
Picture a memory from childhood, one that feels real and nostalgic, but somehow just out of grasp: perhaps a family trip to the beach, or a moment mid-swing on the playset, or an afternoon spent hunting for four-leaf clovers. Now, imagine that you could bottle that golden moment into a fragrance.
One scientist at MIT, Cyrus Clarke, is working to do just that. Alongside a team of fellow researchers, Clarke has developed a physical machine called the Anemoia Device, which uses a generative AI model to analyze an archival photograph, describe it in a short sentence, and, following the users own inputs, convert that description into a unique fragrance.
The word anemoia was coined by author John Koenig and included in his 2021 book, The Dictionary of Obscure Sorrows. It refers to a specific feeling of nostalgia for a time or place that one never actually experienced themselvesand its exactly what Clarkes team hopes to capture with the Anemoia Device.
According to a paper published by the team, the device explores the concept of extended memory, or the idea that, in the digital age, memory is increasingly stored and accessed through external media, like digital archives.
Studies have already shown that memory can be formed vicariouslylike when a second-hand account, perhaps from a parent, shapes ones own memoriesbut the Anemoia Device is a delightfully physical, interactive experiment into how AI might allow users to experience a memory of a past they never actually lived.
[Photo: Cyrus Clarke/courtesy MIT Media Lab]
The Anemoia Device
The Anemoia Device looks like something that one might find in the medical bay of a retro sci-fi spaceship. Its a slim, metal-and-plastic contraption accented with a singular neon green screen and a simple array of three physical dials. At the bottom, a glass beaker waits to catch the final fragrance.
[Photo: Cyrus Clarke/courtesy MIT Media Lab]
To start, a user inserts a photograph into the device. A built-in vision-language model (VLM) analyzes the image and generates an initial caption based on what it finds. For a picture of tourists in China, an example used in the paper, the device might write, A tourist in black shorts and a child pose in the doorway along the Great Wall of China, with the iconic stone steps and mountainous landscape stretching up toward the sky.
[Photo: Cyrus Clarke/courtesy MIT Media Lab]
Users can then adjust the parameters of the caption with the three dials: one to decide which person or object in the image should be the subject; a second to describe the age of the subject; and a third to describe the mood of the scene.
[Photo: Cyrus Clarke/courtesy MIT Media Lab]
“Im personally very interested in inventing new physical interfaces for generative AI,” Clarke says. “Generative AI usually starts with a blank prompt. The dials replace that with a physical, easy to understand grammar. Youre not trying to say the right thing to an algorithm, its more akin to tuning an instrument.”
A language-learning model (LLM), built from ChatGPT-4o, aggregates the original caption and the user’s inputs into a short, poetic narrative. If one were to select the Great Wall of China itself as the subject of the aforementioned prompt, the result would be something like, For centuries, from the Warring States to the Ming, Ive joyfully observed times march and countless travelers along my path of stone, brick, and wood.
Next comes the LLMs most impressive task: converting this written poe into a tangible scent.
[Photo: Cyrus Clarke/courtesy MIT Media Lab]
Smell as a memory portal
The scent-development process relies not just on identifying the appropriate olfactory notes, but also on evoking the right emotions.
Clarkes team trained the model to select from a scent library of 39 different fragrances (since expanded to a broader portfolio of 50 scents), ranging from old books to leather and dirt. Each fragrance was coded with a set of descriptors, labeling them with details like their primary notes, associated concepts, and strongest emotions. The LLM uses its training to select the right fragrances and determine how much of each should be used in the final concoction.
All of that information is funneled to a custom olfactory display, which uses four pumps to draw the necessary liquid out of their vials and into the waiting beaker (the final formula for the Great Wall of China fragrance includes campfire, dirt, cedar, and bamboo). The Anemoia Device is capable of capturing an essentially infinite range of fragrances, from the smell of a sandy beach on a hot summer day in the 80s to the aroma of a couple enjoying a pear in a scenic garden.
Ultimately, the study concludes, the device is a provocation that asks “what it means to remember when memory itself can be generated, what it means to feel when that feeling is co-authored with a machine, and what it means to be human when we can craft beautiful, fragrant fictions of pasts we have never lived.”
Integrity, understood as a disposition to behave in prosocial, ethical, and principled ways rather than corrupt or self-serving ones, is among the strongest and most consistent predictors of job performance and leadership effectiveness. The reason is far from mysterious. Leadership, whatever its context, is a collective enterprise. No meaningful goal, from building empires to running companies, has ever been achieved alone.
Across history, not just in humans but also other animals, cooperation has depended less on raw power than on trust. Ancient trading societies flourished precisely because reputation constrained behavior: merchants in Phoenician city-states, medieval guilds, and Silk Road networks relied on repeated interactions and informal enforcement mechanisms to ensure that partners honored their commitments. Those who cheated were excluded, not merely judged. Trust, in effect, functioned as an early mechanism for coordination and enforcement.
The same logic applies in modern organizations. Teams perform better when members believe that leaders will act fairly, keep promises, and avoid exploiting asymmetries of information or power, or are so focused on their personal gain that they have little concern in harming the group. In line, research shows that leaders perceived as lacking integrity struggle to attract talent, elicit discretionary effort, or sustain collaboration over time. Conversely, leaders known for ethical consistency benefit from faster coordination, lower monitoring costs, and greater willingness among others to take risks on their behalf.
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The cost of distrust
Given a choice, people prefer to collaborate with those they trust not because they are nave, but because distrust is expensive. Working with unreliable or unethical partners increases the likelihood of failure, conflict, and reputational damage. In business, this may mean backing leaders who misrepresent performance or shift blame. In politics, it can mean empowering those who erode institutions for personal gain. In both cases, the costs are borne not only by the followers but by the system as a whole.
This is why chronic corruption is one of the most reliable markers of institutional breakdown. As documented year after year by Transparency International in its Corruption Perceptions Index, countries that score lowest on integrity and trust tend to share familiar pathologies: weak rule of law, politicized institutions, capital flight, and persistent underinvestment, generally caused by parasitic governments and destructive leadership. By contrast, countries that consistently rank at the top of integrity and trust measures benefit from stronger institutions, more predictable governance, and higher levels of social and economic cooperation. To be sure, these societies are not free of self-interest or ambition; rather, they have succeeded in aligning incentives so that ethical behavior is rewarded and corruption is costly, censoring selfish short-term individual gains in favor of collective long-term benefits.
Measuring integrity
So, how can we tell whether a person has integrity, or gauge someones moral reliability?
The question is especially consequential when applied to leaders, whose decisions shape the success, welfare, and future prospects of others. Fortunately, behavioral science offers several useful insights, even if it stops short of perfect certainty.
First, integrity is not directly observable. Unlike physical attributes such as height or hair color, it cannot be seen or measured at a glance. Instead, it is inferred or deducted from patterns of behavior, consistency over time, and alignment between words and deeds. Integrity is therefore an attribution rather than a trait we can observe directly, which makes assessment inherently probabilistic rather than definitive.
Second, short-term interactions are often misleading. Because appearing ethical brings clear benefits (trust, influence, reduced scrutiny, and access to resources) people are incentivized to signal integrity even when they lack it. This helps explain why superficially ethical environments can sometimes attract parasitic actors who exploit the goodwill and assumptions of others. In contrast, in persistently corrupt settings, distrust becomes the default, and even well-intentioned individuals are treated with suspicion. Context shapes both behavior and perception.
A parallel and increasingly robust line of evidence comes from research on the so-called dark traits, narcissism, psychopathy, and Machiavellianism. Although conceptually distinct, these traits share a common core of low empathy, emotional coldness, and a tendency to instrumentalize others. From an integrity standpoint, this combination is toxic. Individuals high on these traits are less constrained by guilt or concern for others, more willing to bend or ignore rules, and more likely to justify unethical behavior as necessary, deserved, or clever rather than wrong.
Psychopathy is most directly linked to callousness and fearlessness, reducing sensitivity to punishment and moral emotion. Machiavellianism predicts strategic deception, cynicism about human motives, and a belief that ends justify means. Narcissism, especially in its more grandiose forms, adds entitlement and moral exceptionalism, the belief that normal rules apply to others but not to oneself. Together, these traits reliably predict counterproductive work behaviors, ethical transgressions, and integrity failures, particularly in roles that confer power, discretion, and weak oversight. Crucially, this is not because such individuals lack intelligence or self-control, but because their motivational architecture is misaligned with prosocial norms. Where integrity depends on empathy, respect for authority, and an internalized concern for collective outcomes, dark traits tilt decison making toward self-interest, dominance, and short term gain, making them among the strongest dispositional red flags for integrity risk in organizational life.
Third, while integrity cannot be measured perfectly, it can be assessed meaningfully. Research shows that peer ratings are among the most reliable indicators, precisely because integrity is reputational: it reveals itself in how people behave when others depend on them. Longitudinal data, such as 360-degree feedback, is especially informative. Personality traits like conscientiousness, altruism, and self-control (including the capacity to self-edit) also predict ethical conduct, as does past behavior. Self-reports are often dismissed, but well-designed measures still differentiate reliably between individuals with higher and lower integrity. Track records matter, even if they do not render anyone immune to temptation. As Warren Buffett famously observed, reputation takes a lifetime to build and a moment to destroy.
Finally, the environment matters. Ethical failures are not only the result of bad apples, but also of rotten barrels. Weak governance, misaligned incentives, and tolerance for small transgressions can erode integrity even among otherwise decent individuals, while well-designed systems can reinforce ethical behavior by making misconduct costly and transparency unavoidable.
Sapping growth
Taken together, these points suggest that integrity is neither inscrutable nor guaranteed. Whether in governments, firms, or teams, integrity functions as an enabling condition for coordination and progress. When trust erodes, actors devote more effort to monitoring, hedging, and self-protection, leaving less energy for innovation or growth. In this sense, integrity is not merely a moral ideal, but a form of social infrastructure: largely invisible when it works, and painfully obvious when it does not.
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AI inspired many employers to take a wait-and-see approach to hiring in 2025, but new data suggest theyll be returning to the market in search of certain skills in 2026.
According to Upworks In-Demand Skills 2026 report, demand for AI-specific proficiencies have more than doubled on the freelancer platform over the last year. But at the same time, nearly half of employers also say theyre also putting a premium on human skills, like creativity, emotional intelligence, resilience and innovation.
When we look at the fastest growing skills in terms of demand, AI is all over it. Thats not surprising, says Dr. Gabby Burlacu, licensed organizational psychologist and Upworks senior research manager. However: What is interesting is that this is not growing demand for AI generalists, or even necessarily people who can build AI tools, but rather its growing demand for AI applied within a context.
In 2026, more employers want to inject AI into more business operations, and are seeking candidates that are not only able to utilize the technology, but also maximize its impact by leveraging their human skills and unique experience.
Integrating, Not Building
According to the Upwork study, demand for skills tied to AI is up 109% year-over-year. Skills related to AI video and content creation saw the biggest jump with a 329% increase, followed by AI integration (which helps inject the technology into existing business practices) at 178%. AI data annotation, which specializes in preparing and training content for the purpose of AI model training, ranked third with 154% demand growth.
At the same time, the study found that employers are looking for what are traditionally labelled as soft skills or human skills, which are increasingly viewed as vital enablers of new tech tools.
We are seeing enormous demand and recognition from business leaders of just how important nontechnical and uniquely human skill sets are, says Dr. Burlacu. They want human judgment, they want creativity, they want innovation, and when we asked business leaders what skills are becoming critical in an AI world, the ability to build or even engage with AI tools wasn’t at the top of that list; it was learning agility and adaptability.
The study, and others like it, suggest AI isnt replacing human workers on a wide scale as initially feared. Instead, its changing the kinds of skills employers are looking for, putting a higher premium on traits that cant be automated.
A Labor Market Bounce-back in 2026?
Dr. Burlacu explains that each time a new disruptive AI tool or category of tools hits the market, employers tend to pull back on hiring in that domain as they figure out what exactly the technology is capable of, and where it falls short.
This [research] suggests that the impact of AI is taking shape, and that it is much more about augmenting how existing domains and roles are done, versus completely replacing the need for human skills, says Dr. Burlacu. There’s a tremendous opportunity to use AI to do the work that you do and that you specialize in [today] differently. That is what business leaders are seeking.
Dr. Burlacu adds that as employers gain a deeper understanding of how AI will impact their business, theyre gradually moving off the sidelines and pursuing the skills they need to best utilize the new technology.
Towards an AI-Enabled Human Workforce
The Upwork study is consistent with a recent McKinsey report titled Agents, robots, and us: Skill partnerships in the age of AI, which suggests the future of work will be defined by harnessing the best of both technology and humans.
In that study, researchers examined 7,000 commonly sought-after skills from real job postings across industries and organized them based on those that could be fully automated today, those that will likely never be automated, and those that fell somewhere in between. They ultimately found roughly 70% of skills can be enhanced by technology, but still rely on human expertise. Another 12% remain entirely within the domain of humans while just 18% can be fully handed over to technology.
The implication is that it’s going to be a world in which we upgrade that skill by using it in conjunction with AI, says the studys co-author and McKinsey Global Institute Partner Anu Madgavkar. If we can use AI as an assistant or a collaborator or a co-worker, then our own ability to use that skill and deploy it will be enhanced.
Madgavkar explains that in our AI-enabled future, workers wont need the deep technical expertise required to build their own AI tools. Instead, they will be challenged to utilize the technology to enhance their own capabilities.
People’s roles are going to change quite a lot and very fast, and you can imagine theres a degree of anxiety or uncertainty about that, says Madgavkar. It’s not just about adoption; it is indeed about reimagining how work gets done, not just at the level of an individual’s job or set of tasks, but really as a whole workflow.
The Transition is Already Underway
Whether it was the ability to use word processors, social media or cloud computing, candidates have long been encouraged to list proficiency with the hottest technology of the day on their resumes.
What’s new is the pace and the level of acceleration, explains Aashna Kircher, the group general manager of CHRO products at Workday. The evolution of some of these tools is happening at a pace weve never seen, where every day there are new skills, new learnings, new understandings of what is and isnt possible.
Fortunately, AI is itself making that education more attainable. According to a Workdays Elevating Human Potential: The AI Skills Revolution report, 83% of employees globally say AI has enhanced their ability to learn new skills.
As the ability to leverage AI to work more efficiently becomes table stakes, Kircher says workers and candidates are quickly becoming valued for the things they can offer that the technology cant.
You need to apply context, values, nuanced to AI outputs and systems, as well as ethical decision making, emotional intelligence, relationship building and connection conflict resolution, leadership skills, she says.
It’s not that technical skills aren’t important. They certainly are, but some of these other skills are actually becoming outsized in importance relative to some of the technology skills.
Below, Brad Stulberg shares five key insights from his new book, The Way of Excellence: A Guide to True Greatness and Deep Satisfaction in a Chaotic World.
Brad is on faculty at the University of Michigan. He is a performance coach and regularly contributes pieces about sustainable excellence to the New York Times. His work has also been featured in The Wall Street Journal and The Atlantic, among many other outlets. He serves as co-host of the podcast excellence, actually.
Whats the big idea?
What if excellence isnt about winning, talent, or perfect conditions? Lasting performance and real fulfillment live in our curiosity, resilience, and love of the process.
Listen to the audio version of this Book Biteread by Brad himselfbelow, or in the Next Big Idea App.
1. The power of curiosity to fuel greatness.
Before Kobe Bryants tragic death, he was asked, Do you love to win or do you hate to lose? He responded, Im neither. I play to figure things out. I play to learn something.
When you fixate on winning or losing or some other external outcome, it takes you out of the present. It makes it impossible to enter a flow state. It makes you fragile. But when you adopt a mindset of curiosity and growth, it relieves pressure and helps you stay anchored in the moment.
Kobe Bryant was known for his killer instinctThe Mamba Mentalityand yet, even he recognized the difference between the finite game and the infinite game. The finite game is time-bound; there are winners and losers. The infinite game knows no end; the only goal is to keep playing, keep learning, and keep discovering.
All the greats have had to learn that the infinite game is every bit as important as the finite one. Whether you play basketball or cello, repair cars, build tables, write books, or coach young people, your craft can be a vessel for self-discovery. We have a biological imperative to flourish, evolve, and grow. Theres no greater source of fulfillment and satisfaction than pushing yourself, pursuing a challenge, and developing along the way.
The real cycle youre working in is a cycle called yourself, wrote Robert Pirsig, about his experience with motorcycle maintenance. The machine that appears to be out there and the person that appears to be in here are not two separate things. They grow toward Quality or fall away from Quality together. Excellence requires a hunger for growtha deep curiosity to figure out what youre capable of, a curiosity to better know your craft, and a curiosity to better know yourself.
2. The power of performing well, even when you dont feel your best.
A surgeon that I have coached for a long time was called into an emergency case at two in the morning, and his goal was simple: save as much of someones leg as possible. My client was tired, and his mind was noisy. He felt off, and yet he took all that with him into the operating room and nailed the case anyway.
Something that we see over and over in the current culture is that people think they need to fix something before they can act. Now, you shouldnt suppress or ignore your emotions. If you can do something to feel better, do it, but the truth is you can feel like crap and still perform well.
Its easy to do great work when everything is clicking, but excellence means being able to deliver even when its not.
Often, its the act of getting started that shifts how you feel. Its easy to do great work when everything is clicking, but excellence means being able to deliver even when its not. Its saying, Okay, this might be harder than usual, but I can manage, and then you manage. The greats arent great because they always have perfect conditions to do meaningful work. The greats are great because they show up and give their best shot even when they dont.
You could be a surgeon who didnt get enough sleep, a student with a headache before a big exam, or an athlete who couldnt get their usual pre-event meal. Those conditions arent ideal, but catastrophizing is worse. Too often, we spiral because we feel off, but the problem isnt always the feeling. The problem is freaking out about the feeling. You can feel tired, stressed, unsure, and still deliver. You can put the not-so-great feelings or conditions in the passenger seat, take them along for the ride, and show up anyway.
The ability to remain calm amid challenges is a core element of what psychologists call self-efficacy, meaning an evidence-based belief that you are capable of showing up, working through challenges, and excelling in uncertain or highly-charged circumstances. Decades of research show that individuals who score high in self-efficacy are better able to work through moments when they feel lost or stuck, be that in operating rooms, on playing fields, in the classroom, or in a boardroom.
One of the best things you can do for your confidence is to feel off and yet still perform well. It frees you from needing to have perfect conditions to give it a go. You give yourself the evidence that you are resilient, durable, robust, and can get the job done.
3. True discipline versus fake discipline.
True discipline bridges the gap between motivation and action, making the former less necessary for the latter. When you have discipline, you dont need to feel a certain way to show up and get started. You just do.
Fake discipline is a chest-thumping, performative act of toughness. Thats not the real thing. The real thing is showing up for what matters and doing what you need to do. The irony is that when you do hard things that you dont feel like doing in the short run, you usually end up feeling better in the long run.
The real thing is showing up for what matters and doing what you need to do.
Fake discipline is loud, performative, and wants everyone to pay attention to it. Real discipline is quiet because its too busy getting what you need to get things done, rather than parading around.
4. The 48-hour rule.
Whether you succeed or fail, give yourself 48 hours to celebrate the victory or grieve the defeat. Then, get back to doing the work. Results are an emotional roller coaster, but the work doesnt change. Neurons that fire together wire together. Its easy to get addicted to the high of external validation or become consumed by the low of failure. You want to avoid this trap at all costs. Its kryptonite for sustaining high performance. Doing the work has a special way of putting both success and failure into their respective places.
The work itself doesnt change nearly as fast as our emotionswin or lose. Great day or terrible day, the blank page is still the blank page. A lap in the pool is still 25 meters. The classroom still needs to be taught. The pregame speech still needs to be given. Returning to the work keeps our focus rooted in the process, not the outcome. It reminds us of why we committed to our crafts in the first place.
The work is the win. Its the best medicine. 48 hours is an arbitrary amount that you can stretch or shrink to suit you,but the concept still stands. It ensures that we dont become overly attached to success or failure, each of which comes with its own trappings.
5. Fulfillment and joy versus external achievement.
Matthew Perry was one of four actors to ever have a number one movie and TV series. During that time, he dated Julia Roberts, bought the oceanfront house of his dreams, and made $1 million per episode of Friends. But as he repeatedly wrote in his memoir, none of it was enough.
You can have it all, but there is no greater trap than thinking external achievement will fulfill you. The neurochemicals associated with wanting dopamine are much stronger than the ones associated with liking serotonin. The human brain is wired to want more. Its how we evolved. We are suckers for the chase. We struggle to be content.
The only Zen youre going to find on top of the mountain is the Zen that you bring up there along the way.
We all have holes were trying to fill, but no achievement, income, fancy watch, or substance is going to fill those holes in any meaningful way. Researchers call this the arrival fallacy, and recognizing it is liberating because you can stop expecting the next accomplishment to make you feel like a finished product. You can turn your attention to the process, finding joy, energy, and fulfillment in the work, rather than in the illusion of what might happen if or when you arrive.
In his 2022 memoir, Perry wrote, Im certain that I got famous so I would not waste my entire life trying to get famous. You have to get famous to know that its not the answer. And nobody who is not famous will ever truly believe that. The trap of fame status doesnt just affect actors. It affects artists, musicians, entrepreneurs, writers, bakers, athletes, knowledge workers, teachers, coachesmany of whom have made it to the proverbial mountaintop. It affects all of us.
If you cant find joy and fulfillment in the climb, none of it is going to matter. The only Zen youre going to find on top of the mountain is the Zen that you bring up there along the way. The only place youre going to find the love you are looking for is by losing yourself in meaningful pursuits, expressing your innate gifts and creativity, and walking the path with good people. Thats what excellence is all about.
Enjoy our full library of Book Bitesread by the authors!in the Next Big Idea app.
This article originally appeared in Next Big Idea Club magazine and is reprinted with permission.
