Tariffs bad news for American economy, including workers and consumers

From today’s The Hill:

There’s never a good time for tariffs. American workers and consumers will pay dearly for the Trump administration’s short-sighted action to protect an industry that shows no signs of needing any protection—the market values of the five largest steel companies have more than doubled over the past five years. Yet with a major infrastructure spending bill set to come through Congress over the next year, Trump’s tariffs are bad policy with even worse timing.

While a small amount of people will benefit from the proposed tariffs, many more will be harmed. The American steel industry employs roughly 140,000 workers, but industries that rely on steel to create their products—the ones who will suffer directly under the tariffs—employ 6.5 million workers. A recent study by the Trade Partnership found that the direct cost of tariffs on employment would be 18 jobs lost for every one created. On net, 470,000 Americans could lose their jobs.

The Trade Partnership’s study fits with the lessons of recent history. In 2002, President Bush instituted protective tariffs on foreign steel imports. After just a year in which steel prices rose by up to 50 percent, steel production was insufficient to meet demand, 200,000 Americans lost their jobs, and the tariff was dropped. A mere fifteen years later, these lessons have already been forgotten.

Nor will other countries sit idly by as Trump restricts trade. Well over 10 million Americans’ jobs are supported by exports—jobs which would be at risk in the case of a trade war. Already, the European Union has prepared a ten-page hit list of potential targets of retaliatory tariffs should Trump’s steel and aluminum tariffs go into effect.

American consumers will be harmed as well. A combination of new steel tariffs and lumber tariffs imposed last year mean that the cost of new homes is likely to continue rising—nearly half of steel imports go towards construction. Other American staples such as cars and canned beer are also set to see price spikes resulting directly from tariffs.

Read the complete article here.

Without no pay raise in years, Oklahoma Teachers Could Be the Next to Walk

From today’s New York Times:

When she woke up one morning last week, Tiffany Bell, a teacher at Hamilton Elementary School here, had $35 in her bank account.

On take-home pay of $2,200 per month, she supports her husband, a veteran who went back to school, and their three children, all of whom qualify for the Children’s Health Insurance Program, a federal benefit for low-income families. The couple’s 4-year-old twins attend a Head Start preschool — another antipoverty program.

Money is so tight for Ms. Bell, 26, that she had to think twice before spending $15 on Oreos for a class project, in which her third graders removed differing amounts of icing to display the phases of the moon.

She knew it would be hard to support a family on a teacher’s salary. “But not this hard,” she said.

When West Virginia teachers mounted a statewide walkout last month, earning a modest raise, it seemed like an anomaly: a successful grass-roots labor uprising in a conservative state with weak public sector unions. But just a few weeks later, the West Virginia action looks like the potential beginning of a red-state rebellion.

In Arizona, teachers clad in red, the color of the teacher protest movement, have conducted a series of #RedforEd demonstrations demanding higher pay. In Kentucky, teachers have organized rallies to protest proposed cuts to their pensions.

And in Oklahoma, where teachers have not had a raise from the state in a decade, they have vowed to go on strike on April 2 if the Legislature does not act to increase pay and education budgets.

Read the complete article here.

Deadline Is Today in McDonald’s Labor Case That Could Affect Millions

From today’s New York Times:

The Trump appointee charged with enforcing federal labor rights is scrambling to head off a court ruling in a case against McDonald’s that could redefine the accountability of companies for the labor practices of their franchisees.

The official, the general counsel of the National Labor Relations Board, has been exploring settlement terms with workers at the center of the board’s complaint against McDonald’s, according to lawyers involved in the case. A judge had halted the trial until Monday to give the agency a chance to do so.

If no settlement is reached and the judge were to rule against the company, the decision could have enormous implications for the franchise business model, affecting millions of workers in the fast-food industry and beyond. Corporations could be required to bargain with unionized workers at disparate franchise locations.

The National Labor Relations Board did not respond to a request for comment. A McDonald’s spokeswoman said that “settlement discussions are a normal part of any litigation process.”

The case was brought during the Obama administration, when the board was under Democratic control. Since President Trump’s election, Republican members have regained a majority, steering the board away from a pro-labor orientation.

Read the complete article here.

Will Trump’s Tariffs Help or Hurt American Workers? Contrasting Views

From the New York Times:

The Case for Trump’s Tariffs and ‘America First’ Economics

Some Dems ready to loosen tough bank regulations passed after financial crisis

From today’s LA Times:

Before the 2008 financial crisis, BAC Community Bank in Stockton made about 100 mortgage loans a year. Now, after new regulations mandated in the Dodd-Frank Wall Street Reform and Consumer Protection Act, the figure is down to about two dozen.

“We were never a big mortgage lender, but we did quite a bit more before Dodd-Frank,” said Bill Trezza, the bank’s chief executive. “It basically pushed us out of that to the point where we will do mortgages only for our customers if they request it.”

He and other small bankers hope that’s about to change. And a political shift is making that possible.

Nearly a decade after the financial crisis, some Democrats are ready to go along with a Republican push to significantly loosen the landmark law enacted to try to prevent the next one.

Senate legislation focused on easing new mortgage and other rules for small and mid-sized and regional banks has been co-sponsored by a dozen Democrats, several of them moderates up for re-election this year in states won by President Trump in the 2016 campaign.

The bipartisan support has the bill on track to be approved as soon as this week in what would be the first major overhaul of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.

The House, which has approved more extensive financial deregulation, is likely to go along with the Senate’s more modest changes. Trump, who has called Dodd-Frank “a very negative force” in the economy and vowed during the campaign to dismantle it, would be expected to sign any bill that reduces its authority.

“The tone has shifted in D.C. from where regulation was necessary to protect the economy to the concern where regulation has gone too far and might be a drag on the economy,” said Ed Mills, a Washington policy analyst for financial services firm Raymond James. “Where that shift has occurred, it gave an opening to the smaller and medium-size banks to pursue these changes.”

But while there’s broad support for easing unintentional burdens in the law for small banks, many liberal Democrats are fighting the bill from Senate Banking Committee Chairman Mike Crapo (R-Idaho). They say it goes too far by also providing significant benefits for some larger financial institutions.

The legislation would exempt about 30 banks and other firms from the stricter oversight put in place by Dodd-Frank after the 2008 financial crisis. That 2010 law was an attempt to prevent a repeat of the bailouts and damage to the economy.

Read the complete article here.

A Flurry of Courts Have Ruled on Election Maps. Here’s What They’ve Said

From today’s New York Times:

Judges in a number of states have recently thrown out election maps, saying that they have been gerrymandered to the point of being unconstitutional, effectively dooming one party to permanent underrepresentation.

The decisions are certain to have drawn the Supreme Court’s interest as it mulls a resolution to the question of extreme partisan gerrymanders. The justices are expected to decide this spring whether the practice violates the Constitution, and if so, how to determine whether an electoral map is fairly drawn.

Here are the basics of the major contested cases.

Wisconsin: State Assembly districts

How many seats does each party hold?

In the most recent general election, 52 percent of the votes were cast for Republican Assembly candidates, who won almost two-thirds of the seats — 64 out of 99. Democrats received 46 percent of the vote and won 35 seats.

What’s happened so far?

In November 2016, a panel of three judges ruled that the map was unconstitutionally drawn to favor Republicans, the first time a partisan gerrymander was struck down in federal court. The ruling was notable, according to experts, because it provided a clear mathematical formula to measure how partisan a district map is.

The decision was appealed to the Supreme Court, which took the case(known as Gill v. Whitford) and heard arguments in October 2017.

What’s next?

The Supreme Court is expected to rule in the spring, probably setting the course for the other cases in federal court as well.

North Carolina: Congressional districts

How many seats does each party hold?

In 2016, Republican candidates received 53 percent of the votes cast, and won 10 of the state’s 13 seats; Democrats received 47 percent of the votes and won 3 seats.

What’s happened so far?

The map was thrown out and ordered redrawn by a panel of three federal judges on Jan. 9, who said that Republicans had drawn it most recently in 2016 in an attempt to gain a political advantage. The

Supreme Court temporarily blocked the lower court’s order to redraw the map nine days later.

What’s next?

It’s unclear. The Supreme Court has not said whether it will schedule arguments in the case, known as Rucho v. Common Cause. The court may choose instead to let whatever ruling it issues in another gerrymandering case stand as its final word on the matter. Because of the temporary block, experts say the current North Carolina map will probably remain in effect for the midterm elections this fall.

Read the complete article here.

Why the Trump-led GOP Continues to be the Party of Massive Budget Deficits

From today’s LA Times:

The Trump administration proposed a spending plan on Monday that projects deficits as far as the eye can see, giving up the longtime Republican goal of a balanced budget to champion a spending plan replete with cash for a host of military programs and some domestic ones the president’s supporters might admire.

The budget calls for about $716 billion in annual defense spending, more than $100 billion above the level Trump requested last year. Add in the tax cut Republicans pushed through in December and the extra spending Congress approved just last week, and the result is a flood of red ink projected to send the national debt ever higher.

Trump’s budget anticipates deficits throughout the next 10 years even if Congress were to approve some $3 trillion in cuts over that same time period that he’s proposing for a wide range of federal programs. Both parties already rejected most of those cuts last year and have shown little interest in pursuing them.

The deficits persist even though the White House is forecasting extremely optimistic levels of economic growth. If growth falls short of those projections — most economists think it will — deficits would be higher still.

As a result, the budget marks something of a milestone — the Trump administration’s abandonment of the quest for budget balance that the Republican Party has claimed as a guiding light for years, at least rhetorically.

In reality, deficits have often soared under Republican presidents as the party has put cutting taxes ahead of balancing budgets on its list of priorities. In the past, however, Republican administrations have taken pains to at least come up with a budget that would balance on paper.

Read the complete article here.

When Wall Street Writes Its Own Rules, It’s An Age of Unprecedented Corruption

From today’s New York Times:

On July 25, 2013, a high-ranking federal law enforcement officer took a public stand against malfeasance on Wall Street. Preet Bharara, then the United States attorney for the Southern District of New York, held a news conference to announce one of the largest Wall Street criminal cases the American justice system had ever seen.

Mr. Bharara’s office had just indicted the multibillion-dollar hedge fund firm SAC Capital Advisors, charging it with wire fraud and insider trading. Standing before a row of television cameras, Mr. Bharara described the case in momentous terms, saying that it involved illegal trading that was “substantial, pervasive and on a scale without precedent in the history of hedge funds.” His legal action that day, he assured the public, would send a strong message to the financial industry that cheating was not acceptable and that prosecutors and regulators would take swift action when behavior crossed the line.

Steven A. Cohen, the founder of SAC and one of the world’s wealthiest men, was never criminally charged, but his company would end up paying $1.8 billion in civil and criminal fines, one of the largest settlements of its kind. He denied any culpability, but his reputation was still badly — some might argue irreparably — damaged. Eight of his former employees were charged by the government, and six pleaded guilty (a few later had their convictions or guilty pleas dismissed). Mr. Cohen was required to shut his fund down and was prohibited from managing outside investors’ money until 2018.

Now, with the prohibition having expired in December, Mr. Cohen has been raising money from investors and is set to start a new hedge fund. He’ll find himself in an environment very different from the one he last operated in. His resurrection arrives as Wall Street regulation is under assault and financiers are directing tax policy and other aspects of the economy — often to the benefit of their own industry. Mr. Cohen is a powerful symbol of Wall Street’s resurgence under President Trump.

As the stock market lurched through its stomach-turning swings over the past week, it was hard not to worry that Wall Street could once again torpedo an otherwise healthy economy and to think about how little Mr. Trump and his Congress have done to prepare for such a possibility. Stock market turbulence typically prompts calls for smart and stringent financial regulation, which is not part of the Trump agenda. One of Mr. Trump’s first acts as president was to fire Mr. Bharara, who made prosecuting Wall Street crime one of his priorities. Mr. Trump has also given many gifts to people like Mr. Cohen.

Read the complete article here.

#VotingRights Update: Group Targets GOP States to Attack Gerrymandering

From today’s New York Times:

A Democratic group backed by former President Barack Obama intends to pour millions of dollars into an eclectic array of elections in a dozen states, in an effort to block Republicans from single-handedly drawing congressional maps after 2020, officials leading the group said.

The National Democratic Redistricting Committee, formed last year under the leadership of Eric H. Holder Jr., the former attorney general, has settled on a strategy to contest a combination of governorships, legislative seats and more obscure state offices to chip away at Republicans’ sweeping control of the redistricting process.

Mr. Holder said in an interview that the group was chiefly determined to deny Republicans so-called trifectas in state governments — places where a single party controls the governorship and an entire legislature, as Republicans do in Ohio and Florida, among other critical battlegrounds.

The group’s list of high-priority states includes most of the critical states in presidential elections. Mr. Obama, who has made redistricting a focus of his attention since leaving office, plans to visit some of those states in 2018, and Mr. Holder reviewed his strategy with the former president in Washington on Monday, aides said.

States at the top of the just-finalized target list include traditional purple states like Michigan and Wisconsin, where Republicans can currently design maps without Democratic input, and others — including Colorado, Minnesota and Nevada — where Democrats have significant influence in government but must defend it in the 2018 elections.

Read the complete article here.

#RussiaGate: AG Sessions Interviewed in Mueller’s Russia Investigation

Breaking news from today’s New York Times:

Attorney General Jeff Sessions was questioned for several hours last week by the special counsel’s office as part of the investigation into Russia’s meddling in the election and whether the president obstructed justice since taking office, according to a Justice Department spokeswoman.

The meeting marked the first time that investigators for the special counsel, Robert S. Mueller III, are known to have interviewed a member of Mr. Trump’s cabinet.

In response to questions from The New York Times, the spokeswoman, Sarah Isgur Flores, confirmed that the interview occurred. Mr. Sessions was accompanied by the longtime Washington lawyer Chuck Cooper to the interview.

The attorney general announced in March that he had recused himself from all matters related to the 2016 election, including the Russia inquiry. The disclosure came after it was revealed that Mr. Sessions had not told Congress that he met twice with the Russian ambassador to the United States at the time, Sergey I. Kislyak, during the campaign.

Mr. Sessions, an early supporter of Mr. Trump’s presidential run, had been among a small group of senior campaign and administration officials whom Mr. Mueller had been expected to interview.

Read the complete article here.