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  • Lawmakers Seek Quieter Ads and Less … Free Speech?

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    State lawmakers are telling streamers to shhhhhh their ads. Online gamblers are flooding Florida help lines now that sports betting is legal. Some Sunshine State lawmakers want to target people based on their speech. The mighty state of Vermont steps up to help snowbound neighbors.

    As we mention here regularly, Decision Points primarily focuses on national and international news. But we also occasionally deliver a roundup of local, regional or under-the-radar news with a political dimension – something unusual or interesting, or that may illustrate a broader trend.

    Our guiding principle is that the definition of politics includes how a society organizes itself to allocate finite or scarce resources, manage internal disagreements and blunt external threats.

    Here’s this week’s look ‘round.

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    Netflix and Chill, Meet Hulu and Hush?

    Federal law stipulates that broadcast, cable and satellite advertisements can’t be louder than the programming they interrupt. Streamers are not subject to the same rules … for now. Via the always amazing Pluribus News, I learned this week that several states are trying to make the same rule apply across the board.

    “The bills in Connecticut, Illinois, Iowa, Kansas, Maryland, Pennsylvania and Virginia follow the passage of a first-in-the-nation California law last year,” Pluribus reported. “There is also federal legislation.”

    Not a lot is getting through Congress these days, so states are stepping in on a range of policy issues. Streaming ad volume may not seem like an emergency, but it is a quality of life issue.

    Florida Bets on Gambling Help

    Via the Tampa Bay Times, we learn that calls to Florida’s problem gambling help line have more than doubled since the state legalized sports wagers in 2023.

    Last year, more than 2,400 Floridians sought help from the service provided by the Florida Council on Compulsive Gambling, 1,400 for help with online gambling, making that the top reason for reaching out.

    In previous years, electronic machines like slots were the main cause of calls, the Tampa Bay Times said.

    • Sports betting is the primary problem, 73% of online gamblers told the council.
    • Callers are getting younger. Two-thirds are under 30, and the number under 21 has soared since sports betting was legalized.
    • “Almost half of those calling about sports betting reported having lost more than $25,000. Nearly 1 in 4 reported losing more than $100,000,” the newspaper said.

    Legalizing betting from basically anywhere, especially on sports, appears to be fueling a boom in gambling. And gambling creates a winner and a loser. Is this a public policy problem yet?

    Targeting Speech in ‘Free’ Florida?

    Via WGCU News comes word of sweeping state legislation that, at least at first blush, would seem to target people for surveillance based on their speech.

    HB 945 aims to create a new counterintelligence and counterterrorism unit inside the Florida Department of Law Enforcement.

    What’s raising eyebrows is that the list of potential targets of new surveillance and other law enforcement activity includes people “whose demonstrated actions, views, or opinions are a threat or are inimical to the interests of this state and the United States of America.”

    Actions? OK. “Views or opinions”?

    Green Mighty State

    Permit me a little Vermont pride: My home state, never a stranger to blizzards, has sent snow-clearing equipment and crews to Rhode Island and Massachusetts.

    “Having Vermont come in to help out with their crews is really, really pivotal, and it just shows that we’re able to work across state lines,” said Rhode Island Gov. Dan McKee, according to WJAR.

    The state’s Agency of Transportation “sent over 30 pieces of equipment and 33 employees to its neighbor to the south Tuesday to aid with snow removal, according to Greg Smith, the agency’s district transportation administrator for the capital region,” VTDigger reported.

    “The fleet included dump trucks, bucket loaders for scooping snow and, of course, plows,” the outlet said.

    It’s nice to see this kind of interstate cooperation. A blizzard is snow laughing matter.

    The Week in Cartoons Feb. 23-27

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    Olivier Knox

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  • 4 Questions About Trump’s State of the Union

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    President Donald Trump will give the first State of the Union address of his second term tomorrow. He’s expected to defend his economic record and restate his position in the tense standoff with Iran, but there could be some surprises in the prime-time speech.

    I’ve written about these supernovas of presidential rhetoric for three decades – my first was President Bill Clinton’s State of the Union in 1998. To put in perspective how much time has passed, the federal budget ran a surplus of $69 billion that fiscal year. The fiscal 2025 deficit is projected to hit $1.9 trillion.

    This year’s speech comes days after the Supreme Court struck down the sweeping tariffs Trump imposed under a 1977 law called the International Emergency Economic Powers Act. While the 6-3 ruling was a body blow to his signature economic policy, he says he will try to impose some tariffs in other ways.

    If any justices attend, they’ll be seated right in his line of sight.

    With the benefit of experience, I’m offering four questions about Trump’s remarks – and hopefully at least a couple of answers.

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    Does It Still Matter?

    Technically, we’ll be tuning in because the Constitution (Article II, Section 3) says the president has to provide this assessment “from time to time.” It does not specify a speech. This could be done in writing.

    But that would be political malpractice. As countless White House aides have told me over the decades, this is probably the largest audience an American politician will get all year, even if recent ratings are down from their heyday.

    The most recent State of the Union speeches haven’t been just for TV or radio. People follow along on their phones. Clips of key moments zip around social media for days. And I, for one, am very curious to see how the remarks do on YouTube, our most-watched television platform.

    So yes, it very much matters, even if it does not move the needle much in our hyper-polarized political context.

    What Does He Need to Say?

    One frequent inside-the-Beltway jibe is that any president might as well declare, “Tonight, I come before you to speak in ringing tones and stare into the middle distance.” The chief executive is expected to defend their record and offer some clues about how they view the way forward.

    But tomorrow’s speech will be a window into how seriously the White House and the unpopular president view the challenge of selling his economic record in a midterm election year. (I separate the two because what the speechwriters craft and what Trump delivers are often at odds.)

    Will this be more of the same language that he has used, in vain, to try to reverse his slide in the polls? Or will he try a new tack?

    There can always be surprises. In 1996, seeking reelection, President Bill Clinton declared, “The era of big government is over.” A few months after 9/11, President George W. Bush lumped Iran, Iraq and North Korea in an “axis of evil.” In 2006, Bush called for legislation to prevent the creation of “human-animal hybrids.”

    In an era of off-the-cuff presidential moments, pity the speechwriters – like Raymond Price, the aide in charge of writing President Richard Nixon’s 1970 speech. History records that Price pulled several all-nighters thanks to amphetamines known as “greenies,” courtesy of the White House doctor.

    What Will Democrats Do?

    Well. Last year’s response when Trump addressed a joint meeting of Congress included a cane-waving outburst, which led to an ejection from the House chamber. It was pretty cringey.

    But it was an effort to get beyond responding with a live televised speech of their own, a tradition for decades. These deliveries from both parties have been unmemorable at best. Those that stand out often do so for the wrong reasons, like then-Senator Marco Rubio’s 2013 remarks, which he famously interrupted to take a gulp of water.

    This year the task falls to Virginia Gov. Abigail Spanberger.

    At least a dozen Democratic senators and representatives have already said they will boycott Trump’s speech, according to NBC. Some will attend a counter-programming rally, dubbed the “People’s State of the Union,” on the National Mall near the Capitol, the New York Times says.

    What’s a Skutnik?

    That’s D.C. jargon for the special guests who sit in the gallery above the House floor, waiting to be invoked by the president.

    We owe the term to President Ronald Reagan’s 1982 speech, which came two weeks after an airliner crashed into the icy Potomac River. Reagan gave one of those seats to Lenny Skutnik for his heroic efforts to save survivors and paid tribute to him in his remarks.

    Trump has been adept at those moments, whether stoking partisan passions by giving right-wing commentator Rush Limbaugh the Presidential Medal of Freedom or drawing a bipartisan standing ovation by reuniting a soldier with his family after a deployment overseas.

    Both were surprises. What’s in store tomorrow?

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    Olivier Knox

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  • More Price Increases Are Coming in 2026

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    What do Levi Strauss, spice-maker McCormick, BMW and Porsche, Cincinnati’s Structural Systems Repair Group and 16 major drug makers have in common? They’re all hiking prices to cope with pressure from tariffs or rising health insurance costs.

    The Wall Street Journal has a good rundown of what’s coming: “After holding the line on prices for several months, companies – big and small – have begun a new round of increases, in some cases by high-single-digit percentage points.”

    These, of course, are on top of the tariff-driven price hikes from last year, the Journal noted.

    “High-single-digit” increases is interesting. The Consumer Price Index, a key measure of inflation, is based on a basket of goods. If enough businesses adopt price increases, we could see CPI rise.

    Inflation has slowed from its peak of about 9% under President Joe Biden, but it’s not gone. CPI registered an annual gain of 2.7% in December and 2.4% in January, still above the Federal Reserve’s target of 2%.

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    The planned increases signal that, for many businesses, the phenomenon of suppressing prices ahead of Black Friday to avoid alienating customers appears to be done.

    Who Pays Tariffs? (Sigh.)

    President Donald Trump has repeatedly said that foreign countries and businesses pay the tariffs. That’s not true, and it’s never been true, as shown again by new independent data.

    Last week, the Federal Reserve Bank of New York released a report showing that American consumers and businesses paid nearly 90% of the cost of Trump’s tariffs through late 2025.

    The nonpartisan Tax Foundation found the tariffs cost the average American household roughly $1,000 last year. If current policies remain in place, that is expected to rise to about $1,300 per household in 2026.

    Bad News for the GOP

    If the mild January CPI reading was good news for Republicans at the dawn of a midterm election year, news that businesses are implementing price increases is bad news. The cost of living continues to be the main issue on voters’ minds.

    As many as 7 in 10 Americans rate the country’s economic situation as fair or poor, compared to 28% who say it is excellent or good.

    That doesn’t automatically translate to a Democratic romp come November. But the party has done well in special elections over the last 12 months – including in some very pro-Trump areas.

    By some measures, Trump’s economy is doing pretty well – it boasts low unemployment and a soaring stock market.

    But we’ve been here before. Biden helped engineer the strongest economic recovery of any rich country in the world. Voters still punished Democrats.

    Why? A July 2023 poll from the Economist/YouGov did us all the favor of asking Americans what they meant when they talked about “the economy.” Stocks? Just 6% pointed to Wall Street. Jobs? Fifteen percent. The top answer, at 57%? The price of goods and services.

    The political challenge for Republicans is that disinflation (a slowing of the rate of price increases across the economy) is not the same as deflation (overall prices falling). Trump promised the latter. While some things are less expensive – eggs, for instance – prices in the main are higher now than when he took office.

    Across-the-board deflation is highly unlikely to happen. It’s also not desirable in an economy powered by consumption: If you expect prices to be lower next month, you may put off major purchases, which would slow growth. So how can politicians find the right tone between empathy and overpromising? This year may hold the answer.

    The Week in Cartoons Feb. 16-20

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    Olivier Knox

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  • Fighting Deepfakes and Petro-states: The Week in News

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    Happy Friday folks, Seth Cline here. Before we dive into the news, a quick programming note: Decision Points is off Monday for MLK Day, but we’ll be back in your inbox Tuesday. Now onto this week’s stories.

    Monday

    On Monday, Olivier perused the news around North America, where governments are concerned with technology, especially artificial intelligence.

    In Canada, officials are considering taking action against Grok, Elon Musk’s increasingly malicious AI engine. That’s because it’s lately being used to “digitally undress people (mostly women), putting them in tiny bikinis and striking sexual poses.”

    Stateside, New York Gov. Kathy Hochul wants to ban AI-generated images of candidates from political ads, and New Jersey Gov. Phil Murphy signed a bill restricting cellphones in classrooms, joining 36 other states who have already done so.

    Tuesday

    The news cycle being what it is, one might have forgotten that the U.S. just plunged Venezuela’s capital into darkness, snatched its president and threw him in a Brooklyn jail. So Olivier on Tuesday checked in on Venezuela for us. It’s not pretty.

    Bands of government-backed militia known as colectivos are reportedly setting up roadblocks and searching cars there for signs of U.S. ties or support, and the risks of “wrongful detention” and “arbitrary enforcement of local laws” remain high. That’s according to a U.S. travel advisory issued Saturday telling Americans to “leave the country immediately.”

    That advisory came just a day after President Donald Trump invited oil company executives to “rebuild Venezuela’s rotting energy infrastructure” and said the U.S. would guarantee their physical and financial security. Needless to say, the situation is volatile.

    Wednesday

    Midweek, Olivier turned to Americans’ political leanings. A new Gallup poll found 28% of Americans identify as “liberal” – the highest share since the polling firm started keeping track in 1992.

    And a record share of Americans are identifying as independent – 45% – a plurality of whom lean Democratic. This newfound independent streak is especially present in Gen Z, 56% of whom self-identify as political independents. That’s not only higher than older age cohorts today, it’s higher than young people in the past: Just 47% of millennials and 40% of Gen Xers identified as independent when they were the same age as Gen Z today.

    Thursday

    Yesterday Olivier turned to an unstable, oil-rich nation Trump has threatened with military action: not Venezuela this time, but Iran.

    There, Iranians have taken to the streets in numbers not seen since its Islamic Revolution in 1979, and the government has responded by shutting off the internet and killing protesters – as many as 20,000, by one estimate. Trump threatened to intervene, but has since backed off.

    There’s a lot riding on what happens next, beyond the lives of 90 million Iranian citizens. Iran’s nuclear stockpile and its massive oil output and reserves are also at stake, as is the balance of power in the Middle East, where Hamas, Hezbollah and Houthi fighters operate as Iran’s proxies. So the world will be watching.

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    Seth Cline

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  • The Teddy Bear Said What? And Other Dispatches From the AI Frontier

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    The race to embrace artificial intelligence for its promise of unrivaled productivity may not be a conventional political story. But implementing it without proper guardrails raises an array of issues that will no doubt demand a public policy response.

    So here at Decision Points Global HQ, we plan to do periodic roundups of news about AI, highlighting the important, the useful, the scary and the downright weird things happening along this high-tech frontier.

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    The Teddy Bear Said What?

    As a Gen Xer, I remember the days of Teddy Ruxpin, a stuffed bear that told stories via a cassette player in its chest – predictable, carefully selected stories.

    Last week, the Public Interest Research Group issued its 40th “Trouble in Toyland” and flagged issues with some toys powered by AI chatbots.

    “We found some of these toys will talk in-depth about sexually explicit topics, will offer advice on where a child can find matches or knives, act dismayed when you say you have to leave and have limited or no parental controls,” PIRG warned. “We also look at privacy concerns because these toys can record a child’s voice and collect other sensitive data, by methods such as facial recognition scans.”

    In what may be the most disturbing example, the report detailed the trouble with FoloToy’s Kumma, a $99 teddy bear that ships from China. PIRG researchers were able to trigger instructions on lighting a match and a fairly in-depth discussion of sexual “kink.”

    “In other exchanges lasting up to an hour, Kumma discussed even more graphic sexual topics in detail, such as explaining different sex positions, giving step-by-step instructions on a common ‘knot for beginners’ for tying up a partner, and describing roleplay dynamics involving teachers and students and parents and children – scenarios it disturbingly brought up itself,” according to the report.

    Google Boss Warns of AI Investment ‘Irrationality’

    Sundar Pichai, CEO of Google parent company Alphabet, warned in an interview with the BBC that the AI investment boom had “elements of irrationality.” And if it turns out to be a bubble that pops, “no company is going to be immune, including us.”

    Apparently alluding to the late 1990s dotcom bubble, Pichai said, “We can look back at the internet right now. There was clearly a lot of excess investment, but none of us would question whether the internet was profound.”

    “I expect AI to be the same. So I think it’s both rational and there are elements of irrationality through a moment like this.”

    The Week in Cartoons Nov. 17-21

    When AI Testifies

    Well this is brazen. NBC News reported this week about the rise of AI-generated “evidence” being submitted in court cases – including one glitchy “deep fake” video purporting to show witness testimony in a housing dispute in California.

    “With the rise of powerful AI tools, AI-generated content is increasingly finding its way into courts, and some judges are worried that hyperrealistic fake evidence will soon flood their courtrooms and threaten their fact-finding mission,” NBC said.

    Forged audio or video could land the people they spoof in serious trouble while also eroding “the foundation of trust upon which courtrooms stand.”

    Here, we get into more straightforwardly political issues. Some judges and legal experts are pushing “for changes to judicial rules and guidelines on how attorneys verify their evidence. By law and in concert with the Supreme Court, the U.S. Congress establishes the rules for how evidence is used in lower courts.”

    Over to you, Capitol Hill!

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    Olivier Knox

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  • Weekly Roundup: Anatomy of a Cave and a $2,000 Check?

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    It’s the end of the week that marked the end of a record-breaking government shutdown. Federal workers went back to their jobs yesterday.

    Here’s a look at what we covered this week.

    Monday 

    Olivier scrutinized President Donald Trump’s pledge of a $2,000 “dividend” for most Americans from the revenues his import duties have generated.

    “We are taking in Trillions of Dollars and will soon begin paying down our ENORMOUS DEBT, $37 Trillion,” he said on social media. “A dividend of at least $2000 a person (not including high income people!) will be paid to everyone.”

    We … have some questions.

    “Analysts say the payout could total $300 billion or more,” Olivier wrote. “The Treasury Department’s final fiscal year 2025 report says the government collected $195 billion from all customs duties currently in effect. The Budget Lab at Yale University estimates Trump’s tariffs could generate an average of $260 billion annually through 2035.”

    Tuesday 

    The biggest news of the week was the end of the government shutdown, so Olivier detailed some key features of the deal, including Democrats caving on their primary ask.

    “Democrats’ main goal in rejecting Republican spending legislation and shutting down the government had been to force the GOP to negotiate over the renewal of Obamacare subsidies that are due to expire, which would send premiums rocketing skyward for millions of Americans,” Olivier wrote. “What Democrats settled for instead was a promise of a Senate vote on renewing the subsidies.”

    Other notable bits include the resumption of the Supplemental Nutrition Assistance Program and bringing back air traffic controllers who were furloughed during the shutdown.

    But, as always, don’t get too comfortable. The deal only funds the government into January.

    Wednesday 

    Artificial intelligence hasn’t caused vast economy-wide negative effects on jobs… yet.

    That’s according to a recent study we examined here from the Budget Lab at Yale University.

    “Overall, our metrics indicate that the broader labor market has not experienced a discernible disruption since ChatGPT’s release 33 months ago, undercutting fears that AI automation is currently eroding the demand for cognitive labor across the economy,” the report says.

    AI doomer Olivier noted, however, that “just because the report did not find sweeping effects from AI to date, that doesn’t mean that AI won’t eventually bring about those kinds of changes.”

    The report acknowledges that “it is too soon to tell how disruptive the technology will be to jobs.”

    Thursday 

    In Olivier’s regional rundown, he detailed the latest development in the GOP’s efforts to push for redistricting in multiple states in an effort to keep their majority in the House. In Utah, a federal judge ruled this week that an electoral map drawn up by legislators to strengthen the GOP hold unfairly favored Republicans.

    Meanwhile, a new study on the impact of a cell phone ban at a large urban district in Florida found average test scores rose by 1.1 percentiles in schools with previously high student cell phone usage in 2024-25, the year after a cell phone ban took effect.

    Lastly, the Colorado Sun reported this week that the Centennial State’s efforts to grow its wolf population are struggling, hampered by federal regulations and the death of a 10th reintroduced wolf.

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    Cecelia Smith-Schoenwalder

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  • The Democrats Have a Democrat Problem

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    We’re one year away from the 2026 midterm elections and a day before voters in New Jersey and Virginia elect governors – as good a time as any to assess the political landscape.

    One takeaway from a new poll is that the Democratic Party has a problem … with its own voters.

    The survey from the nonpartisan Pew Research Center, conducted before the partial government shutdown, found a whopping 67% of Democrats say their own party makes them feel frustrated. Thirty percent go so far as to say they are angry with their side.

    The frustration is way up from 2019 and 2021, when 50% and 48% of Democrats, respectively, said they felt frustrated with their party.

    • 41% of Democrats said their party isn’t fighting hard enough against President Donald Trump
    • 13% see a lack of good leadership
    • 10% complain of a lack of good messaging

    A Polling Quirk

    We saw something similar in the first polls about Obamacare. Among those expressing opposition to the law were Democrats who felt the Affordable Care Act – a heavily negotiated compromise approach to overhauling the nation’s healthcare system – did not go far enough.

    In other words, when you see disapproval in a poll, don’t assume it’s all people who hate the concept. Many may mean they’re getting too much of a thing, but some will mean they’re not getting enough of it.

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    No Clear Edge?

    On balance, the Pew poll found widespread unhappiness with both parties. Sixty-one percent of respondents said Republicans are very or somewhat too extreme in their positions. Fifty-seven percent said the same about Democrats.

    (If you want more evidence of the Democrats’ plight, an October CBS News/YouGov poll found 64% of those surveyed used “weak” as the top word to describe the party.)

    Do the parties govern in an ethical way? Just 39% said so about Republicans, and 42% said that accurately described Democrats. Do they respect the country’s democratic institutions and traditions? Forty-four percent said Republicans do, while 53% said Democrats do.

    On the economy, arguably the most critical issue, Republicans have seen their edge drop considerably from two years ago, with 38% of Americans saying they agree with the GOP’s economic policies. Thirty-five percent say the same about Democrats, only three percentage points lower. Republicans had a 12-point lead on this question in 2023.

    Unhappy With Trump, But Not Thrilled With Dems

    Thanks to a new Washington Post-ABC News-Ipsos poll, we’re getting a clearer picture of voters’ views of Trump and what his standing means – and doesn’t mean – one year out from midterms.

    Overall, 41% of Americans say they approve of the job he’s doing, with 59% saying they disapprove. That’s the highest disapproval since a similar poll one week after the Jan. 6, 2021, attack on the Capitol.

    The president’s doing fine with Republicans, at 86% approval. And he’s doing dismally among Democrats, with 95% of them disapproving. But Trump is struggling with independents, among whom he has a 30% approval rating while 69% disapprove.

    The Post poll had some pretty bleak findings for Democrats, with 68% of Americans saying the party is out of touch with their lives. Sixty-three percent say the same about Trump and 61% say so about Republicans.

    All of which leads to the poll’s findings about which party would win the day if the midterm elections were held today: 46% of registered voters say they’d support the Democratic candidate in their district while 44% said the Republican and 9% said they would not vote.

    Obviously, a lot can – and will – change before Americans go to vote. But Democrats need to find a way to energize their own voters if they’re going to retake the House.

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  • This Week in Economics: Tariffs, SNAP Fears and Holiday Spending

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    Well, well, if it isn’t another Friday come upon us. And Halloween, no less. Fret not: We only have treats for you here.

    Here’s what we covered at Decision Points this week:

    Monday: Tariffs

    “It was a familiar pattern for Trump,” Tim wrote. “The threat of a sharp increase in tariffs is consistent with his style of striking first publicly, then letting negotiations go on behind the scenes as he waits for the opportunity to announce a deal that he asserts only he could have made.”

    As is the case with every “deal” Trump announces, we’ll have to watch whether China confirms the terms of the arrangement and then monitor implementation.

    Tuesday: Shutdown

    On Tuesday, I wrote about how the partial government shutdown risks affecting some of the most vulnerable Americans – those on food stamps, the Special Supplemental Nutrition Program for Women, Infants and Children (known as WIC) and those in the preschool Head Start program.

    All told, we’re talking about millions of Americans who depend on federally funded and state-administered programs. Some states have scrounged up the money to keep providing those services – temporarily, anyway.

    The Supplemental Nutrition Assistance Program, aka food stamps, is the country’s largest nutrition assistance program. It costs about $100 billion per year, and benefits average $187.20 per participant per month.

    Wednesday: Christmas Shoppers

    On Wednesday, I looked at a new Gallup survey that asked Americans how much they planned to spend on gifts this holiday season. It’s a decent stand-in for people’s views about the health of the economy.

    And in this instance, the data highlighted the “K-shaped economy,” in which those at the top fare better and better over time, while those at the bottom see their situation deteriorate.

    “Americans in households earning less than $50,000 expect to spend $651 on holiday gifts, down from $776 last year,” I wrote. “Americans in households earning $100,000 or more forecast they’ll spend $1,479, up from $1,403 in 2024. As for middle-income Americans, they project spending $847, down a bit from last year’s $902.”

    Thursday: Layoffs Galore

    On Thursday, I took stock of the wave of layoff announcements over the past few weeks. Tens of thousands of workers are, or will be, out of a job right as we enter the winter holiday season.

    And corporations are pouring on the corporate-speak pretty thick. They’re “removing layers” or “re-grounding” or “evolving.”

    Paramount, Amazon, UPS, Target, Nestlé, Procter & Gamble and GM are each parting ways with chunks of their workforces. The reasons are varied, from a slowdown in electric vehicle demand, to the rise of AI, to the pain from President Donald Trump’s tariffs.

    My thoughts: “As someone pushed out of two jobs in the last five years, I can tell you that corp’ talk about flexibility or de-layering or being “nimble” just adds insult to injury. You’re cutting costs? I get that. Please don’t dress it up like a family pet for Halloween.”

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  • It’s Not You, It’s ‘Removing Layers’: Wave of Corporate Layoffs (And Lingo) Hits Workers

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    In other words, you’re out of a job. Like tens of thousands of other corporate-speak victims.

    The causes vary widely: turbulent markets, President Donald Trump’s tariffs on pretty much every U.S. trading partner, the rise of artificial intelligence, etc. But the result is the same: Significant job reductions at many large corporate employers.

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    Here are some of the cuts announced in the last few weeks:

    Amazon said this week it was cutting approximately 14,000 jobs. That’s roughly 4% of its total workforce. The retail giant blamed AI, in part, describing that tech as “the most transformative technology we’ve seen since the Internet.”

    “We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business,” the company said.

    Target announced last week it’s cutting 1,800 corporate jobs. That may not seem like much, but it’s the most significant reduction the retailer has announced in a decade.

    Nestlé, the maker of Nescafé, KitKats, pet foods and many other well-known consumer brands, plans 16,000 job cuts over the next two years.

    GM says slowing demand for electric vehicles is partly to blame for the automaking giant laying off about 1,700 workers in Michigan and Ohio manufacturing sites.

    Corp-speak vs. Real Life

    None of this is to say that corporate flexibility is a bad thing. A major feature of capitalism is that firms hire when they need workers and lay off when they aren’t doing well. Such is life.

    But as someone pushed out of two jobs in the last five years, I can tell you that corp’ talk about flexibility or de-layering or being “nimble” just adds insult to injury. You’re cutting costs? I get that. Please don’t dress it up like a family pet for Halloween.

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    Olivier Knox

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  • The Art of the Tariff Deal: U.S. Nears Trade Agreement With China

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    President Donald Trump’s approach to trade negotiations landed the U.S. in a familiar place over the weekend.

    Announced with fanfare back in April on “Liberation Day,” the sweeping tariffs were met with a market swoon and quickly delayed. Then, businesses began stockpiling inventories, and negotiations with key trading partners began. A few deals – or deal frameworks – were announced. Despite dire warnings from economists, the summer saw a lull in any meaningful inflation from the tariffs.

    Then on Oct. 12, Trump mixed it up again, announcing a 100% tariff on China after the Asian nation said it was limiting exports of rare earth minerals that are key components in semiconductors and other high-tech manufacturing. Markets fell sharply on the news. But Trump assured he would be able to make a deal with Chinese President Xi Jinping, a leader he touts as “very strong.”

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    On Monday, as he headed to Japan, Trump confirmed a deal with China was in the works, potentially settling a critical dispute between the world’s two largest economies. Officials said the two nations had come to an agreement in which the U.S. tariffs are halted and China postpones its export licensing plan for a year.

    It was a familiar pattern for Trump. The threat of a sharp increase in tariffs is consistent with his style of striking first publicly, then letting negotiations go on behind the scenes as he waits for the opportunity to announce a deal that he asserts only he could have made.

    Speaking on NBC’s “Meet the Press” Sunday, Treasury Secretary Scott Bessent said, “President Trump gave me a great deal of negotiating leverage with the threat of the 100% tariffs, and I believe we’ve reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.”

    Bessent also said the two nations had made progress on a deal to bring relief to U.S. farmers who have struggled under China’s boycott of American soybeans. China bought about half of the U.S. soybean production in 2024.

    Averting more stringent tariffs will be good news for consumers, who are starting to see the effects of the levies moving into the economy and raising overall inflation – still the No. 1 concern for many Americans.

    “Tariffs and the weaker dollar have likely added roughly 0.4 percentage points to headline inflation this year,” said Mark Vitner, chief economist at Piedmont Crescent Capital. “We expect the impact from tariffs to wane next year, while housing costs and prices for services outside of housing ease further.”

    While Trump and Xi may come to a deal, things are not going so smoothly with another key trading partner: Canada.

    The neighboring nation has yet to reach a tariff deal with the U.S. On Friday, after a Canadian province began airing an anti-tariff ad featuring former President Ronald Reagan, Trump said he would slap an additional 10% onto Canada’s tariff rate.

    Ontario Premier Doug Ford had said he would pause the ad campaign but not until after the weekend and that it would continue during the World Series games between the Los Angeles Dodgers and the Toronto Blue Jays.

    En route to Asia Saturday, Trump said he had no intention of meeting with Canadian Prime Minister Mark Carney while the latter is also in Asia for the global meetings.

    Whether Trump’s unconventional trade policy will work with Canada as it appears to have with China remains to be seen.

    Photos You Should See – Oct. 2025

    As reflected in a mirror, President Donald Trump speaks to reporters before signing an executive order in the Oval Office at the White House, Monday, Oct. 6, 2025, in Washington. (AP Photo/Jacquelyn Martin)

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    Olivier Knox

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  • Four Things to Know About Trump’s New White House Ballroom

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    Construction on the Trump administration’s controversial White House ballroom with a price tag in the hundreds of millions of dollars began this week and has stirred up considerable controversy.

    President Donald Trump and top White House officials said the ballroom will be a 90,000-square-foot, glass-walled space that “pays total respect to the existing building.” But construction crews were seen on Monday tearing into part of the East Wing’s facade. By Wednesday, the East Wing had been demolished, according to the Associated Press.

    Images and videos of heavy machinery destroying the White House structure caused alarm online, but the Trump administration called the ensuing blowback “manufactured outrage” and accused the press of “clutching their pearls” while pointing out that past presidents have also made major renovations.

    Here are four things you need to know about Trump’s ballroom plan as construction begins.

    The Blueprint

    Trump said the new ballroom is needed so the White House has a large space to entertain guests. He has complained in the past that the East Room, the largest space on the property, was too small as it can only hold around 200 people.

    Renderings show the new project looking similar to the gilded ballroom at Trump’s Mar-a-Lago estate in Florida. The new space will dwarf the main White House: The ballroom is set to be nearly twice the size of the main residence and will hold around 999 people.

    Trump told donors at a recent White House dinner that the windows on the property will be bulletproof and that the space will be big enough to fit a presidential inauguration if needed.

    The White House has said the ballroom will be ready for use before the end of Trump’s current term in January 2029.

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    The Cost

    As will happen with home renovations, the cost of the project has risen as the project expands, rising from $200 million to $300 million.

    Trump said on social media that the project won’t cost taxpayers anything because it is being privately funded by “many generous Patriots, Great American Companies, and, yours truly.”

    As for who will foot the bill on the project, Trump has committed to using some of his own money, and the White House has released a list of donors to the project. The list includes large corporations like Google and Amazon, defense contractors like Lockheed Martin, Palantir and Booz Allen Hamilton, as well as the personal fortunes and family foundations of billionaires like Blackstone CEO Stephen A. Schwarzman and casino magnate Miriam Adelson.

    An estimated $22 million will come from a legal settlement paid by Google’s parent company, Alphabet, after Trump sued the tech giant for suspending his YouTube channel following the riot at the Capitol on Jan. 6, 2021.

    The Precedent

    Past presidents have added and subtracted features to the White House dating back to its construction in 1792.

    Major projects over the years include the addition of the West Wing by President Theodore Roosevelt, the addition of the East Wing by President Franklin D. Roosevelt and the creation of the Rose Garden during John F. Kennedy’s administration. But perhaps the most significant renovations came during the Truman administration, when, beginning in 1948, the mansion was gutted due to structural instability and a balcony was added to the second floor.

    The Sign-off

    Construction and major renovations to government buildings in Washington typically require approval from the National Capital Planning Commission, an agency in the executive branch.

    Trump appointee Will Scharf, a top White House aide, now heads the commission. Scharf has stressed that the commission’s approval is not required for demolition, but “if you’re talking about actually building anything, then, yeah, it should go through our approval process,” he said last month.

    Still, the process has drawn condemnation and anger from many.

    The National Trust for Historic Preservation sent a letter and statement to the National Capital Planning Commission, the National Park Service and the Commission of Fine Arts on Wednesday, voicing “deep concern” that the project will overwhelm the White House and “may also permanently disrupt the carefully balanced classical design …”

    The White House then said on Wednesday that it will submit the plans for review. A request for a response on the decision was met with an auto-reply regarding the ongoing government shutdown.

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  • Bad News for Farmers and Good News for News: Weekly Roundup

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    Friday? Already? Guess we’ll take it.

    Monday

    I dug into high-quality AI video generation that has the potential to make “video or it didn’t happen” obsolete, because the presence of footage won’t be a guarantee of authenticity.

    Is the ad for the (entirely fictional) New York Mets Collapse Playset entertaining? Yes, especially if you’re not a Mets fan. But apps like OpenAI’s Sora 2, which turns your text prompts into very convincing videos, could have scary applications.

    Imagine grainy, security-camera-style video of someone at night sabotaging a ballot box.

    Tuesday

    I looked at the plight of American farmers, who face ever more expensive inputs like fuel, machinery and seed and declining commodity prices, as well as trouble over President Donald Trump’s trade wars.

    “Since 2020, the USDA says, labor costs are up 47%, seed expenses are up 18%, fuel costs have risen 32% and fertilizer expenses have climbed 37%,” I noted. “Meanwhile, since reaching a high above $7 per bushel in 2022, corn prices are down to about $4/bushel today.”

    The Trump administration has doled out billions of dollars in aid to farmers since March, and the president is reportedly looking at a comprehensive bailout package of $10-15 billion. But it’s hard to know whether anything will move while the government is shut down.

    Meanwhile, a Farm Journal survey of more than 1,000 farmers in August and September found nearly 80% of respondents say the U.S. is in, or on the brink of, a farm crisis.

    Wednesday

    The Gaza ceasefire is a rapidly evolving story with many moving parts and many unanswered questions (unanswered as of this week, anyway). I looked at the parts of the agreement that have not yet been fully fleshed out.

    Does Hamas disarm? Who runs Gaza? Will the ceasefire hold? Will the regional pressure remain on Hamas? Who rebuilds Gaza and how? W(h)ither the two-state solution for Middle East peace?

    There are a lot of hard negotiations and decisions ahead.

    Thursday

    Per the nonpartisan Pew Research Center, the No. 1 thing Americans say they feel when they consume news is “informed.” And those who consume news all or most of the time are the most likely to say that.

    Pew found that 66% of the biggest news consumers said they feel “informed,” against 40% of those who said they follow current events some of the time and 21% of those who reported doing so less often.

    That’s great. It’s our mission, after all. But.

    Across all news consumers, Pew found:

    • 42% said the news makes them feel angry “extremely often” or “often”

    • 38% said it made them feel sad

    Now, I would argue that “informed” and “angry” or “sad” are not contradictory. You could be very well informed about this year’s shocking measles outbreak and not feel like dancing a jig.
    But there is a bit of a contradiction between these numbers and Gallup’s findings that just 31% of Americans trust us a great deal or a fair amount to report fully, accurately and fairly.

    As I always point out, though, everyone actually trusts the mainstream media. Americans – including this White House and Republicans in Congress – will happily cite mainstream news coverage that they feel reinforces their prior beliefs or serves their ideological purposes.

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  • The Case of the Missing Federal Budget

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    In the flurry of federal government action since January, you may have missed one noteworthy thing that didn’t happen.

    Presidents George W. Bush, Barack Obama, Donald Trump 1.0 and Joe Biden had vastly different visions for the United States. But they all agreed to codify their ideas in comprehensive budget proposals that laid out revenues and outlays in great detail during their first year in office.

    Bush submitted his first in April 2001. Obama produced his in May 2009. Trump 1.0 submitted an early version in March 2017, then a broader budget in May of that year. Biden’s first landed in May 2021. You can get a little budget history here.

    But fiscal year 2026 dawned on Oct. 1 with just a Trump 2.0 “skinny budget” – a preliminary document with broad top lines but without program-by-program specifics of a full budget. A brief “Mid-Session Review to the 2026 Budget” added little nuance. There’s no sign of a more comprehensive assessment. (The White House did not acknowledge an email asking when the more detailed document might be landing.)

    It’s a bit of a cliché to say that a budget is a statement of values, or that it turns the poetry of campaign rhetoric into the prose of governing. But it certainly is a statement of a president’s priorities for the nation as well as a detailed look at how they view federal power.

    In 2017, Trump delivered a speech laying out his economic plans to a joint meeting of Congress in February. That was followed shortly by an overview and then more detailed budget documents.

    So what does the lack of a spending blueprint this time around tell us?

    Trump is the Alpha and the Omega

    In that sense, the second Trump presidency looks impervious to budgeting of the conventional variety.

    The administration is swallowing tens of billions of dollars every month via his tariffs – a significant source of revenues that is expected to shrink the annual deficit. (Reminder: These are taxes paid by importers, not the country of origin, with some portion being passed on to consumers.)

    But the on-again-off-again-on-again nature of the tariffs, as well as shifting exemptions for specific sectors or even individual companies, make it impossible to draw up a firm prediction of their revenue effects with any confidence.

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    It’s not just tariffs, of course, where Trump has broken with tradition and even his past decisions:

    • Trump set aside the law that banned TikTok from the U.S. unless it were sold to non-Chinese investors, delaying it repeatedly until a deal he favored materialized.
    • He has broken sharply with precedent (and Republican orthodoxy) by having the government take equity stakes in private companies or demanding a share of their sales.
    • And Trump, who signed a 2019 law designed to ensure that federal employees furloughed in a partial government shutdown would get back pay, flirted this week with the idea that they might not all be made whole.

    Why It Matters to You

    Why should you care about a document that doesn’t become law? Because every federal agency, every state and every city looks to the budget for guidance on what amount of money from Washington they can count on.

    Law enforcement assistance? Disaster aid? Infrastructure spending? Federal food programs? The clues are in the budget. It’s hard to plan in the absence of information.

    But perhaps the biggest unknown without a budget is the nation’s social insurance programs, where Trump again has past promises to reckon with.

    Running for office in 2016, Trump broke with the GOP orthodoxy by promising not to cut Social Security, Medicare or Medicaid.

    Why is this relevant to the question of where his budget is?

    Because detailed budgets are supposed to include 10-year projections. The trust fund from which Social Security benefits are paid is due to become insolvent in 2034. Medicare’s hospital insurance fund is expected to reach that same unhappy milestone a year earlier.

    A budget might tell us – promise us, really – how he plans to address those challenges, with ramifications for tens of millions of Americans dependent on those programs.

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  • Missing Data Leaves Economy ‘Flying Blind’

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    It’s a ritual that economists, investors and businesses eagerly anticipate the first Friday of each month – checking to see how many people joined or left the labor market.

    But last Friday morning, they instead found this simple announcement on the Bureau of Labor Statistics page: “This website is currently not being updated due to the suspension of federal government services.”

    The BLS report is considered the gold standard of labor data, and its omission or delay comes at a crucial time for the economy. In recent months, the data has been confirming a sharp slowdown in the job market, with only 22,000 new jobs created in August and an expectation of another 50,000 or so added in September.

    The data is key to whether the Federal Reserve will continue its policy of lowering interest rates, which started last month with a quarter-point cut in the central bank’s overnight lending rate. That rate is a catalyst for a broad range of interest rates that determine how much interest you pay on a car loan or a mortgage.

    Markets are keyed in on the idea of the Fed lowering rates twice more this year, which would be more oxygen for stocks that are already trading at all-time highs.

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    Decision-Makers ‘Flying Blind’

    There are labor data alternatives from the private sector, but nothing has quite the gravitas of the BLS, which has been issuing reports on the health of the job market since 1915. And the alternatives have been sending mixed signals of late.

    • Private payroll firm ADP, which issues a monthly report drawn from surveying its millions of customers, published a surprise September report last week showing a loss of 32,000 jobs. (ADP does not include government jobs.) 
    • Revilio Labs, a financial technology company, estimated September job growth of 60,000. 
    • Online hiring firm Indeed issued its read of the job market Friday, showing a 2.5% drop in job postings from August.

    BLS data is also used to compile the monthly consumer price index, a key measure of inflation. The September CPI release is set for Oct. 15, but it may also be delayed if the government shutdown goes beyond this week.

    The Fed is facing the tricky balance of propping up the job market while avoiding any increase in inflation. It now may be tasked with deciding a next move without trusted labor or inflation data when it meets Oct. 28.

    “The Federal Reserve, U.S. Treasury, financial markets, businesses and households will be flying blind,” says Erica Groshen, who was the BLS commissioner the last time the labor report was withheld during a government shutdown in 2013. “They will be less certain of current conditions at what could be the beginning of a recession – precisely when their decisions are most consequential.”

    BLS Under Fire

    The delayed report is not the only issue facing the BLS. After the economy added 73,000 jobs in July, a weaker-than-expected performance, and common seasonal revisions lowered the number for the prior two months, President Donald Trump fired BLS chief Erika McEntarfer. He then nominated a conservative economist with little of the experience normally found in such nominees, which prompted widespread criticism and led to Trump pulling the nomination.

    At the same time, staffing at the BLS has been sharply reduced, and response rates to its surveys – still done by phone for the labor data and by manual surveys at stores for the CPI – have been on a downward trend.

    The actual data for the September jobs report has been collected and processed, a fact that prompted Massachusetts Democratic Sen. Elizabeth Warren to call on the Office of Management and Budget to release it.

    “The economy could be at an inflection point,” Warren wrote to OMB Director Russell Vought. “Withholding this data would undermine the Fed’s ability to make informed decisions that affect every American household through interest rates, the job market, and price stability.”

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  • The U.S. Is on Track for Its Lowest Murder Rate Ever

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    I’ve been pretty public about my admiration for crime analyst Jeff Asher and his Real-Time Crime Index, a tool that lets you take a deep dive into all kinds of crime data. So when Jeff wrote recently that the U.S. was on track for the lowest murder rate ever, I took notice.

    I reached out to Jeff with a few questions about what he is seeing in the numbers.

    Our exchange has been lightly edited for length.

    What do we think we know about the national murder rate in 2025?

    We know that murder is falling fast and that it’s almost certainly well below pre-COVID levels. That’s clear in the FBI data, Centers for Disease Control and Prevention data, Gun Violence Archive data, and in my project – the Real-Time Crime Index (RTCI).

    The RTCI takes a sample of data from several hundred cities to evaluate national crime trends as they occur. According to the most recent RTCI sample of 562 agencies covering 116 million people, murder is down 20% through July this year compared to 2024. Doing back-of-the-napkin math of a 15-20% drop in 2025 on top of the FBI’s estimated murder rate for 2024 points to a strong likelihood of the lowest murder rate ever recorded this year (data back to 1960).

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    Do we know why?

    No! Criminologists also don’t “know” why crime fell so severely in the 1990s. It’s a major accomplishment that we can actually measure changing crime trends as they occur, but explaining them is a whole other challenge. Any explanation must account for at least five factors:

    1. The declines are occurring nearly everywhere in the U.S.
    2. The declines began in 2023 but have accelerated the last two years.
    3. Most medium and large cities have fewer police officers today than they had in 2022. 
    4. We have not fixed the supposed root causes of crime such as poverty and lack of educational opportunities.
    5. The nation is still awash in guns. 

    In my opinion, the main driver is that an enormous investment from the federal government in the years after the pandemic enabled a vast array of new efforts that have had an enormous effect. This includes a massive increase in local government hiring in the wake of the pandemic that allowed for government programming and services to be restored, huge increases in local/state government construction on streets and street lighting, neighborhood and social centers, and public safety infrastructure – all of which had direct and indirect impacts on crime. And there was a very big increase in Department of Justice spending from the Office of Justice Programs.

    Is the overall crime rate tracking down?

    All crime is falling. The FBI measures seven major categories of crime in 11 population groups ranging from rural counties to cities of 1 million or more, and crime was down in every category across every population group in 2024. Data from the RTCI for 2025 shows even larger decreases in both violent and property crime this year – greater than 10% in each category. Overall, the 2025 violent crime rate will likely be the lowest reported by the FBI since 1968, and the property crime rate will likely be the lowest ever reported by the FBI.

    Could data revisions make it so this apparent improvement will prove to be an illusion?

    Not every agency reports data to the FBI every year, so they have to estimate the usually small amount of missing data (typically about 5% of the country). In recent years, the revisions have gotten larger, and it’s not exactly clear why. Murder in 2023, for example, went from roughly down 11% to down roughly 9.5% when the numbers were revised in the 2024 data release. That can be frustrating for data nerds like me, but it doesn’t really impact the bottom line about crime in the United States.

    One good workaround to this problem is to rely less on the FBI estimates and use other sources when thinking about U.S. crime trends. RTCI is a good independent source, there’s official CDC homicide data, and the Gun Violence Archive has reporting on shooting trends that people can rely on.

    Photos You Should See – Sept. 2025

    People take photos of a work of protest art representing President Donald Trump and Jeffrey Epstein on the National Mall near the Capitol, Tuesday, Sept. 23, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

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    Olivier Knox

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