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Tag: Economics

  • Jesse Jackson’s Timeless Economic Platform

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    In certain political circles, the rap on Jackson was that he was all talk. (In a 1990 magazine article, the Los Angeles Times quoted Marion Barry, the mayor of Washington, D.C., as saying, “Jesse don’t wanna run nothing but his mouth.”) But in 1988, Jackson’s oratory was backed up by an expansive policy platform, which called for hundreds of billions of dollars in funding for education, child care, housing, and infrastructure projects. The details included a national investment bank to back major development projects, a raise in the federal minimum wage, legislation to make it easier for labor unions to organize, an expansion of Medicaid, a proposal to mobilize capital from public pension funds to build low-income housing, and a national early-childhood-education program. Jackson was responding to rising concerns, among Americans of all races, about jobs, wages, affordability, and inequality—concerns that have now bedevilled the country for nearly forty years. “He was like a sponge: he took in everything,” Robert Borosage, a veteran progressive activist and author who served as Jackson’s issues director on the 1988 campaign, said when I called him up last week. “And he was very ambitious, and he wanted a very ambitious program.”

    At a time when Reagan’s tax cuts had created a big budget deficit and raised fears of looming insolvency, critics claimed that Jackson’s platform was unaffordable and irresponsible. To counter these attacks, Borosage and a team of outside experts put together a budget proposal, which raised taxes on the wealthy and corporations, and froze the Pentagon budget for five years, enabling Jackson, at least in theory, to finance his programs and also cut the deficit. “It turned out that if you were prepared to cut military spending, if you were prepared to reverse the Reagan tax cuts for the rich, and do a few other things, you had a lot of money to spend,” Borosage recalled.

    Like all budgets, Jackson’s depended on disputable economic assumptions, but the Washington Post’s editorial page, a different creature then than it is now, highlighted how it went beyond the level of detail that his rivals had provided and sought “to remind the Democratic Party of a set of obligations that have become unfashionable.” Ultimately, this reminder wasn’t sufficient to carry Jackson to the nomination, which went to Michael Dukakis, the governor of Massachusetts. But Jackson came in a strong second, garnering almost thirty per cent of the votes and more than a thousand delegates. At the Democratic National Convention, in Atlanta, he delivered a rousing speech in which he called for “common ground” and ended by repeating, to deafening cheers, his signature refrain: “Keep hope alive!”

    Some of the obituaries published last week—including a fine one by Borosage, in The Nation—pointed out that Jackson’s 1988 campaign, by demonstrating that a Black candidate could gain large numbers of white voters and by forcing changes to the rules governing the Democratic primary, helped to pave the way for Barack Obama’s victory, twenty years later. That’s true, and it’s an important part of Jackson’s legacy. But his death also got me thinking about some different history—counterfactual history. What if Jackson—or another Democratic hewing to his populist line—had won the nomination, gone on to win the Presidency, and enacted the program that he campaigned on? How different would U.S. politics look today?

    This exercise is clouded by the fact that, in 1992, another brand of economic populism played an important role in Bill Clinton’s successful Presidential bid. Politically, Clinton positioned himself as a centrist “New Democrat.” But he also promised to make the rich pay more taxes, raise the minimum wage, introduce universal health care, and protect the “forgotten middle class” that “plays by the rules” and “gets the shaft.” In office, the Clinton Administration did hike the top federal income-tax rate, from thirty-one per cent to 39.6 per cent. It also expanded the earned income-tax credit, which raised the spending power of many working families. But Clinton’s health-care reform foundered, his commitment to deficit reduction constrained the rest of his domestic agenda, and, in December, 1993, he signed NAFTA, which he had criticized during the 1992 campaign before eventually giving it a qualified endorsement. Thereafter, his Administration supported the establishment of the World Trade Organization in 1995 and granted China permanent normal trade relations in 2000. Globalization fostered global economic development, provided Americans with lots of cheap imported goods, and boosted some U.S. industries—over-all employment grew strongly in the nineteen-nineties—but it hollowed out parts of the manufacturing sector, and hit some sections of the country particularly hard, creating societal problems and political alienation.

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    John Cassidy

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  • The ‘alternative scenario’ of an even bigger national debt disaster is in play after the Supreme Court ruled Trump’s tariffs illegal | Fortune

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    The Supreme Court ruled Friday that President Donald Trump’s extensive use of tariffs during his first year back in office were illegal. The court responded to escalating protests from small businesses saddled with higher costs and a large portion of Americans who are skeptical as to the benefits of Trump’s tariff regime. But by striking down part of Trump’s trade agenda, the judges might send America’s ever-widening deficit soaring even higher.

    The national fiscal outlook is already on an unsustainable trajectory. As the Congressional Budget Office projected earlier this month, federal debt is set to reach 120% of GDP by 2036, but that forecast assumes current policies will remain in place. A perfect storm of other factors could align to send debt climbing to even greater heights.

    One of those forces is the fate of Trump’s tariffs. The severity of America’s fiscal path has been somewhat “mitigated” in part by tariff-driven revenue, according to a report published Thursday by the nonpartisan Committee for a Responsible Federal Budget (CRFB). Removing this revenue stream would contribute to an “alternative scenario,” one with an even steeper debt burden than the one projected by the CBO. 

    Assuming Trump’s tariffs are not replaced, and certain government spending programs are either made permanent or revived, the deficit would reach nearly $4 trillion, debt could climb to 131% of GDP in 2036, and the additional interest burden would hit $820 billion, according to the report. 

    The mechanism by which vanishing tariff revenues fuel the deficit is straightforward but massive in scale. Currently, the CBO’s baseline fiscal projections are softened by the assumption that significant revenue from tariffs unilaterally imposed by the Trump administration will continue to flow into the Treasury. But the administration’s legal foundation for these collections crumbled before the court. Most of these tariffs were authorized under the International Emergency Economic Powers Act, a tool that has never before been used to implement tariffs and that the U.S. Court of International Trade already ruled illegal last year. 

    If the administration fails to replace the revenue with other taxes or offsets, the CRFB estimates that federal revenue would fall by $1.9 trillion through 2036. This loss represents roughly 0.5% of the nation’s total GDP over the next decade. While the administration could theoretically attempt to use alternative trade maneuvers to replicate the tariffs, there is no guarantee such a transition would be seamless or legally bulletproof.

    That lost revenue would presumably be evident immediately. The government is now on the hook to refund $175 billion of its tariff revenue, according to recent analysis by  the University of Pennsylvania’s Penn-Wharton Budget Model. But the costs would be even greater over the long run. Losing $1.9 trillion in expected income does more than just widen the immediate gap between spending and revenue; it triggers a compounding interest effect that worsens the overall debt. 

    When the government loses a primary revenue stream like tariffs, it must borrow more to cover its existing obligations. Under the report’s alternative scenario, this loss of revenue, combined with the permanent extension of temporary tax provisions from Trump’s One Big Beautiful Bill Act and a potential revival of enhanced Affordable Care Act subsidies, which expired earlier this year, would raise the deficit by $4.2 trillion over the next decade. This deficit, worsened by higher interest costs, could risk crowding out other forms of essential spending as the federal government becomes increasingly consumed by its own debt burden.

    “The alternative scenario does not account for dynamic effects on interest rates and the economy, which could worsen the fiscal outlook by pushing the economy further into a debt spiral,” CRFB researchers wrote in the report.

    The report outlines a more upbeat scenario, where debt rises more slowly than in the CBO’s forecast. In this version, lawmakers would either allow temporary tax policies to expire or fully offset their costs, while also ensuring that tariff revenues are either preserved by the courts or replaced by new legislative measures. Coupled with reforms to stabilize trust funds like Social Security, this path could see debt stabilize at a much lower 111% of GDP by 2036. 

    For now, however, the nation’s fiscal health remains on a deteriorating path. Removing Trump’s tariffs might be greeted favorably abroad and by most Americans, given that up to 90% of tariff costs are now paid for by American companies and consumers, according to a recent New York Fed report. But striking down the tariffs without replacements could come with hidden costs further down the road, as the alternative scenario of an even greater debt burden gets closer to becoming the new reality.

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    Tristan Bove

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  • The real reason you pay for NFL stadiums

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    This week, guest host Eric Boehm is joined by J.C. Bradbury, an economist at Kennesaw State University and one of the leading critics of taxpayer-funded sports stadiums. Bradbury is the author of a forthcoming book, This One Will be Different, on the “false promises and fiscal realities” of stadium subsidies.

    Boehm and Bradbury discuss why stadiums rarely deliver on the economic benefits touted by team owners and local politicians, and how public officials, media outlets, and hired consultants help create the illusion that these projects pay for themselves. Bradbury explains why these deals often amount to a reallocation of existing local spending rather than genuine economic growth, and why taxpayers end up footing the bill for facilities that primarily benefit private sports franchises.

    The conversation also touches on the Super Bowl, the Olympics, and the surge of new stadium proposals across the country. Bradbury makes the case that America is on the verge of another stadium building boom, driven by political incentives and public enthusiasm rather than sound economics, and argues that cities would be better stewards of tax dollars if they resisted the pressure to subsidize major sports projects.

    The Reason Interview With Nick Gillespie goes deep with the artists, entrepreneurs, and scholars who are making the world a more libertarian—or at least a more interesting—place by championing free minds and free markets.

    0:00—Introduction

    0:56—Loving sports without loving subsidies

    6:01—Marketing taxpayer-funded stadium projects

    16:15—Civic pride and measuring ROI

    21:20—What makes sports stadiums unique?

    24:18—The upcoming stadium building boom

    35:01—Truist Park development

    43:03—Examples of fiscal restraint

    46:04—The Super Bowl and Olympic Games

    51:18—Bradbury’s career trajectory

     

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    Eric Boehm

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  • Wall Street celebrates the end of Trump’s Greenland drama and is hoping the Supreme Court will kill the rest of his tariffs | Fortune

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    The S&P 500 closed up 0.55% yesterday on good news about U.S. GDP growth and President Trump backing down over his plan to invade Greenland. The S&P is again above 6,900 and within 1% of its all-time high. Gold hit another record yesterday, too.

    But futures on the index were down 0.24% prior to the opening bell in New York and markets in Europe sold off slightly this morning after Asia closed mixed, a sign that traders are booking profits after yesterday’s rally. 

    On the macro front, Wall Street analysts are bullish. It’s a marked change from the fraught mood of the last few days, when investors were anticipating another transatlantic tariff war.

    In fact, Trump’s tariffs are turning out to be a much smaller economic deal than “earlier worst-case fears,” JPMorgan Chase says. Companies have adjusted their pricing and supply chains, and the result is “the realized tariff rate has been much lower at ~11% (versus expectations of 15%,”), according to Dubravko Lakos-Bujas and his team. “Only 14% of S&P 500 companies are highly sensitive to tariffs.” 

    And it could get better if the U.S. Supreme Court rules against the president, the bank says.

    “Prediction markets assign >65% odds that the Supreme Court rules against the government, and those odds have consistently been against the government, especially following the November Supreme Court oral arguments,” Lakos-Bujas told clients.

    Source: Polymarket

    Analysts were also cheered by a new upward revision for Q3 2025 U.S. GDP, at 4.4%. 

    “The 4.4% real growth rate is much higher than normal and is likely to moderate over the course of the year, but if we can stay above 3% for the entire year it could lead to double-digit returns in the stock market,” Chris Zaccarelli, chief investment officer at Northlight Asset Management said in an email seen by Fortune.

    EY-Parthenon Chief Economist Gregory Daco was singing from the same hymnbook. “Momentum was driven by resilient consumer spending, robust equipment and AI-related investment, a sizeable boost from net international trade, and a rebound in federal government outlays. The U.S. economy is neither overheating nor stalling—it is adjusting,” he said in a note.

    All of that explains the calm we’re seeing in the markets today.

    “For some assets, it was almost like the selloff never happened, with the VIX index of volatility (-1.26pts) back at 15.64pts, which is beneath its levels prior to Saturday’s tariff announcements,” according to Jim Reid and his team at Deutsche Bank

    Here’s a snapshot of the markets ahead of the opening bell in New York this morning:

    • S&P 500 futures were down 0.24% this morning. The last session closed up 0.55%.
    • STOXX Europe 600 was down 0.22% in early trading.
    • The U.K.’s FTSE 100 was down 0.11% in early trading. 
    • Japan’s Nikkei 225 was up 0.29%.
    • China’s CSI 300 was down 0.55%.
    • The South Korea KOSPI was up 0.76%. 
    • India’s NIFTY 50 was down 0.95%. 
    • Bitcoin was flat at $89.9K.
    Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

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    Jim Edwards

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  • 7 ways Europe could hurt the U.S. if Trump doesn’t back down over Greenland | Fortune

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    President Trump told those gathered at the World Economic Forum in Davos that he would not use force to take Greenland, and the world breathed a sigh of relief. But he is still pushing tariffs on Europe if Denmark refuses to sell its territory to the U.S.

    Trump’s plan has outraged European leaders. “Being a happy vassal is one thing. Being a miserable slave is something else,” Belgian Prime Minister Bart De Wever said. French President Emmanuel Macron said Trump’s “endless accumulation of new tariffs” were “fundamentally unacceptable.” Meanwhile, European Commission President Ursula von der Leyen called for the EU to become “independent” from the U.S. and to make that independence “permanent.”

    But does Europe have enough economic weaponry to force the White House to think again?

    Maybe, according to Wall Street analysts.

    Here are seven ways the E.U. could hurt the U.S. economically if Trump refuses to take “no” for an answer on Greenland, according to research by George Saravelos of Deutsche Bank, Joachim Klement of Panmure Liberum, Macquarie’s Thierry Wizman and Gareth Berry, and Pantheon Macreconomics’ Samuel Tombs and Oliver Allen.

    1. Reduce the supply of foreign direct investment into U.S. bonds and equities by incentivizing investors to keep their capital assets in Europe.
      “European countries own $8 trillion of U.S. bonds and equities, almost twice as much as the rest of the world combined,” Saravelos told clients a few days ago.
    2. Impose the $100 billion in duties on U.S. imports that were proposed and then dropped when the E.U. accepted a tariff deal last year. 
    3. Use the Digital Services Act to further limit how U.S. tech companies operate. 
    4. Implement the “Buy European” act to direct government purchases more toward European vendors.
    5. Implement the Anti-Coercion Instrument (ACI) to impose tariffs on U.S. services companies and companies linked to the U.S. government.
      The ACI would virtually ban U.S. services companies from operating in Europe, while Europe holds a trade surplus with the U.S. in services. This measure is often referred to as Europe’s trade “bazooka.”
    6. “Introduce export taxes on EU products exported to the U.S. that are hard to replace, such as chip-making equipment or specialized machinery,” Macquarie says.
      Removing the U.S.’s access to Netherlands-based semiconductor suppliers ASML, which has a virtual monopoly on some technologies, would create logistical challenges for many U.S tech companies.
    7. Place sanctions on U.S. companies operating in Greenland.

    “The U.S. has one key weakness: it relies on others to pay its bills via large external deficits. Europe, on the other hand, is America’s largest lender: European countries own $8 trillion of US bonds and equities, almost twice as much as the rest of the world combined. In an environment where the geoeconomic stability of the western alliance is being disrupted existentially, it is not clear why Europeans would be as willing to play this part,” Saravelous told clients in a note that annoyed Treasury Secretary Scott Bessent.

    Trump is not likely to take this lying down. Klement wrote on his Substack: “Of course, these actions will trigger an escalation by Trump in the short term, which is why some EU leaders like Friedrich Merz of Germany are currently trying to soften the EU’s response.

    “But 2025 also has shown that if countries remain firm, the escalation cycle ends within a couple of weeks and Trump rows back (or should I say ‘chickens out’?) once he realises he can’t bully others into submission.”

    At Macquarie, the analysts warned that a comprehensive package of economic sanctions against the U.S. would increase price inflation in America. “The EU has the capacity to retaliate economically, and may do so in the hope that a firm EU retaliation (to threats or military action by the U.S.) will end the escalation cycle after a few weeks, and that this is a risk worth taking. What can the EU do, actually? The EU can do enough to hurt the U.S. economy and U.S. security, and these the trade-related measures would likely be jointly inflationary,” they said.

    The ACI “bazooka” won’t hobble the U.S. but it could hurt, Tombs and Allen say. “U.S. services exports to the E.U. were $295bn in 2024, equivalent to 0.9% of U.S. GDP, suggesting the harm could be much greater if the E.U. pulled this relatively new lever at its disposal than if it responded simply with tariffs, though its economy would be hurt more too,” they told clients.

    Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

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    Jim Edwards

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  • What’s ‘algorithmic coercion,’ and why is it making things we buy more expensive? – WTOP News

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    One company choosing to use a quick and reactive pricing algorithm could lead its competitors to increase prices, leading customers to face higher costs, according to a University of Virginia economist.

    One company choosing to use a quick and reactive pricing algorithm could lead its competitors to increase prices, leading to customers facing higher costs across the board, according to a recent study led by a University of Virginia economist.

    Alexander MacKay, an associate professor of economics at the University of Virginia, said the research published by the National Bureau of Economic Research reviewed a concept called algorithmic coercion.

    It’s what could happen when an algorithm leads an entire market to increase its prices for the same items, discouraging rival companies from trying to compete based on price and making mundane goods universally more expensive.

    Airlines and hotels have used some variation of pricing algorithms for years, MacKay said, but “one of the big changes is monitoring rivals’ prices and reacting to that in real time.”

    Online retailers are using software that monitors prices on competitors’ websites, and then they’ll change their prices in response, motivated to beat the prices they encounter.

    “The role of economic theory and the research that we do is to look at, ‘well, what’s the implication of this for the consumer?’” MacKay said. “And what we’re pointing out is that this could actually lead to higher prices.”

    Previously, traditional human pricing was used, allowing a person to set the price of an item. But pricing algorithms — formulas for setting prices based on inputted information — are becoming more common, MacKay said.

    MacKay said if one company uses software that can collect a rival company’s prices quickly, and the technology can react in a fast way, “then that piece of software might be capable of disciplining any company that tries to lower their price.”

    “And as a result, if the algorithm is powerful enough and the company is sort of large enough, it can really discourage any of its rivals from competing based on price,” MacKay said. “As a result, everyone’s going to set a much higher price.”

    In some cases, MacKay said, the use of advanced pricing algorithms could result in prices that would be “higher than what you might get in a competitive market.”

    “We also show in our paper that the prices could actually be so high that it would be worse for consumers than if the market participants got together and colluded on price,” he said. “So the potential of algorithmic coercion to raise prices is actually pretty substantial.”

    MacKay said his research didn’t explore which companies are using the practice and what the impacts are, but it’s “quite possible that this is happening in a number of different industries.” He noted some online retailers and retail gasoline stations as specific examples.

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    Scott Gelman

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  • The Biggest Threat to the 2026 Economy Is Still Donald Trump

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    The escalating trade war with China is currently on something of a hiatus. In October, the Trump Administration eased tensions by reversing its decision to expand the list of Chinese companies restricted from access to advanced U.S. technology. Earlier this month, Trump said he would allow Nvidia to export to China some high-grade computer chips, with the U.S. government collecting twenty-five per cent of the revenues. Wall Street seems to be tacitly assuming that the détente will last beyond Trump’s trip to China scheduled for April, but who really knows? If the government in Beijing doesn’t agree to the concessions that he wants, he could easily revert to a more coercive stance.

    Even if the economy can endure another year of the Tariff Man, there are other issues that could have a big political effect. They include jobs, prices, and health-care costs. Since April, growth in employment has averaged just forty thousand jobs a month. Last year, the figure was more than four times larger. Moreover, Powell said the Fed thinks the official monthly payroll figures are overestimating the actual numbers by about sixty thousand. If that’s right, the economy has been shedding twenty thousand jobs a month. Even going by the official figures, the number of people working in manufacturing, the sector which is supposed to be the primary beneficiary of Trump’s tariffs, has fallen by sixty-three thousand this year. Other industries that have recently displayed weak hiring are information and finance, which employ a lot of white-collar workers. This has provoked fears that A.I. is eliminating jobs. In a Reuters/Ipsos poll, seventy-one per cent of respondents said they were concerned that A.I. will be “putting too many people of out of work permanently.”

    Trump can’t be blamed for A.I., although the executive order that he issued two weeks ago in an effort to prevent states from regulating the potentially transformative new technology demonstrated how beholden he is to the Silicon Valley tech barons.

    He is more directly responsible for stubbornly high prices. His tariffs have helped raise the prices of many imported goods, including grocery staples such as coffee and bananas, and his mass deportations may be producing a labor shortage in some service industries, such as restaurants and hospitality, where there were almost a million job openings in the fall. When firms are struggling to find the workers they need, they have to offer higher wages, which raises their costs.

    As the midterms approach, Democrats will surely heed Barack Obama’s advice to focus on affordability, jobs, and health care. With Congress having adjourned without addressing the year-end expiry of enhanced subsidies for health-insurance policies purchased through Obamacare exchanges, some twenty-two million Americans will be affected. Going into 2026, many of them could face much higher premiums, more than double in some instances. With Republicans divided, and Trump still doing little more than publicly bashing Obamacare, there is no assurance of any resolution.

    Meanwhile, Trump’s presence in the White House is accentuating another big threat to the economy, which comes from financial fragility. Over the past three years, the S. & P. 500 has risen by more than seventy-five per cent, and the Nasdaq has more than doubled. Relative to earnings, stocks are trading at very high levels, historically speaking, and investors are borrowing record amounts of money to buy these stocks. On the basis of optimistic assumptions for revenues and profits, A.I.-related companies are raising enormous sums of money, in many cases from one another. And despite the revenues from Trump’s tariffs, the U.S. government is running a budget deficit of close to six per cent of G.D.P.

    Whether one categorizes this situation as a financial boom or a bubble is largely a matter of terminology. The key point is that the financial system is vulnerable to unexpected disruptions, and, as the Bank of England recently noted, the risks are rising. Conceivably, a shock could emerge from the A.I. complex, or from the private-credit sector—where hedge funds, private-equity firms, and other non-bank lenders have been expanding their lending very rapidly—or from Trump himself, as he moves to extend his power over the Fed, an institution whose independence many investors, here and abroad, regard as the primary guarantor of financial stability. Powell’s term as Fed chair ends in May, and Trump is set to announce a replacement early in the New Year. Kevin Hassett, who heads the National Economic Council at the White House, and frequently appears on television defending Trump’s policies, is the favorite to get the job—despite rumblings on Wall Street that he would be too much of a patsy.

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    John Cassidy

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  • In his national address, President Trump claimed he’s bringing prices down. Here’s what the data shows.

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    After nearly two months without new consumer price data, the Bureau of Labor Statistics released its latest report Thursday, providing a glimpse at energy costs, food prices and other everyday expenses.

    According to the consumer price index, inflation slowed in November, with prices rising 0.2% over the 0.3% observed in September. (BLS could not collect October data because of the government shutdown.)

    Still, inflation remains stubbornly high. Compared with a year ago, consumer costs are up about 2.7%.

    Thursday’s report came just a day after President Donald Trump delivered a prime-time address from the White House in which he largely discussed affordability concerns, from housing costs to grocery prices, saying the U.S. is “poised for an economic boom.”

    “The last administration and their allies in Congress looted our treasury for trillions of dollars, driving up prices and everything at levels never seen before. I am bringing those high prices down and bringing them down very fast.”

    In truth, of the 11 everyday costs tracked month to month by the consumer price index, only five have decreased since January.

    Here’s a closer look at the president’s claims and how prices are changing, or not, during his second term in office.

    To see the average U.S. price of a specific good, click on the drop-down arrow below and select the item you wish to view.

    Eggs

    In the wake of all-time highs set earlier this year, egg prices have collapsed in recent months.

    That downward trend continued in November, with the price dropping a whopping 63 cents from September and settling at $2.86 per dozen. It’s the first time since June 2024 that the average nationwide price for a dozen large Grade A eggs registered below the $3 mark.

    This steep drop-off in prices is a result of a declining number of bird flu cases in commercial and backyard flocks. In the first two months of 2025, tens of millions of birds were affected by highly pathogenic avian influenza across 39 states, according to U.S. Department of Agriculture data. With entire flocks culled to prevent the spread of the virus, the egg supply was strained, leading to shortages in stores and record costs for consumers.

    Following another spike in cases in the early fall, the number of new infections appears to be subsiding again, with less than 2 million U.S. birds affected in the past two months. More notably, zero outbreaks among egg-laying chickens have been reported in November and December.

    Consequently, costs are “falling rapidly” as highlighted by Trump in his prime-time address earlier this week.

    “The price of eggs is down 82% since March, and everything else is falling rapidly. And it’s not done yet, but boy are we making progress. Nobody can believe what’s going on.”

    While egg prices have dropped considerably from March’s record high of $6.23 per dozen, the difference of roughly $3.37 from March to November represents a 54% decrease — not the 82% cited by the president.

    In a statement given to the Tribune, a White House official clarified that he was referring to wholesale costs, not retail prices.

    Milk

    The cost of milk also saw a measurable decrease from the previous month, falling 13 cents.

    A gallon of fresh, fortified whole milk is now priced at $4.00 — that’s 2.5% less than it was in December 2024, before Trump took office.

    Bread

    The average price of white bread fell in November to $1.79 per pound, marking a three-year low for the pantry staple. Time for bread pudding, anyone?

    Bananas

    The cost of bananas fell slightly from September’s all-time highs, dropping just a fraction of a cent to $0.66 per pound in November.

    Recent price inflation is likely a byproduct of the president’s trade war, with tariffs imposed on the country’s top banana suppliers like Guatemala, Ecuador, Costa Rica, Colombia, Honduras and Mexico — all of which are currently subject to an import tax of at least 10%.

    But in mid-November, Trump took action to combat rising grocery costs, announcing that some agricultural products would be exempt from tariffs due to “current domestic demand for certain products” and “current domestic capacity to produce certain products.”

    Both fresh and dried bananas were among the listed exemptions, indicating that lower prices may be around the corner.

    Oranges

    No data on orange prices was available for November.

    However, in September, the cost of navel oranges was listed at $1.80 per pound, less than a cent shy of record highs and nearly 18% more than they were at the start of the Trump administration.

    Drastically low domestic orange production combined with steep tariffs on foreign growers have been helping to push costs skyward. But, as with bananas, oranges are now exempt from most reciprocal tariffs.

    Tomatoes

    As of November, the cost of field-grown tomatoes was $1.83 per pound. That price is 8 cents lower than the previous month of data and down roughly 12% since Trump took power.

    The change is somewhat abnormal given the growing season, as prices typically rise in the fall and peak in the early winter months, and could be attributable to the Trump administration’s recent course reversal on many of its tomato tariffs.

    Chicken

    The cost of fresh, whole chicken fell for a fourth consecutive month, to $2.04 per pound — its lowest price in a year.

    Rising feed costs and the effects of bird flu on the poultry supply chain have driven persistently higher prices, but with the number of cases dropping again, we could see lower prices in the new year.

    Still, the average cost is only about 2 cents less than it was when President Joe Biden left the White House.

    Ground beef

    Ground beef is getting more expensive.

    After shoppers saw some relief in September from climbing costs, the price of ground beef jumped another 18 cents.

    Rising costs can be attributed to a confluence of factors. The U.S. cattle inventory is the lowest it’s been in almost 75 years, and severe drought in parts of the country has further reduced the feed supply, per the USDA. Additionally, steep tariff rates on top beef importers also played a part in higher prices stateside, but as of Nov. 13 high-quality cuts, processed beef and live cattle are exempt from most countries’ levies.

    Still, since the change of administrations, ground beef costs have ballooned by 18% — translating to $1 per pound price increases at the grocery store.

    As of November, a pound of 100% ground beef chuck would set you back about $6.50.

    Electricity

    Electric costs have also been steadily rising.

    At approximately 19 cents per kilowatt-hour, the current price of electricity is a fraction of a cent off August’s high. According to the U.S. Energy Information Administration, the average American household uses 899 kWh every four weeks, translating to a monthly bill of about $170.

    Thankfully, the White House appears to be working to mitigate mounting costs. In his presidential address, Trump claimed that within the next 12 months his administration will have opened 1,600 new electrical generating plants.

    “Prices on electricity and everything else will fall dramatically,” Trump said.

    For many Americans, relief is needed. Since last December, the average price of electricity per kilowatt-hour has increased more than 7%.

    Gasoline

    Declining gas prices were another highlight of Trump’s Wednesday night remarks.

    The cost of gasoline has tumbled from the record-setting prices Americans saw three summers ago under Biden, and just last month, the price at the pump dropped more than 10 cents per gallon.

    “On day one I declared a national energy emergency,” Trump said. “Gasoline is now under $2.50 a gallon in much of the country. In some states, it by the way, just hit $1.99 a gallon.”

    According to the latest CPI data, the average nationwide cost for a gallon of regular unleaded gasoline is $3.23. And though prices are noticeably lower than they were two to three years ago, that average remains higher than it was just a year ago and up nearly 3% during the Trump presidency.

    Prices in Chicago, meanwhile, are about the same month-over-month, costing an average of $3.29 per gallon, according to EIA data.

    Natural gas

    Bucking its previous downward trend, piped utility gas, or natural gas, is another expense that’s climbing. The nationwide cost jumped 3 cents in November, landing at $1.64 per therm.

    On average, Americans are paying close to 8% more to heat their homes, ovens and stovetops than when Biden left office. Year-over-year, that gap is even more drastic: a roughly 10% change or difference of 15 cents per therm.

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    Claire Malon

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  • Is it time to break up Big Tech?

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    Economic researchers Matt Stoller and Geoffrey A. Manne debate the resolution, “The U.S. government should break up large technology companies like Amazon, Meta, and Google to protect workers, suppliers, consumers, and democratic institutions.”

    Arguing in favor of the resolution is Stoller, the director of research at the American Economic Liberties Project and the author of Goliath: The 100-Year War Between Monopoly Power and Democracy.

    Taking the negative is Manne, the president and founder of the International Center for Law & Economics.

    The debate is moderated by Soho Forum Director Gene Epstein.

    The post Is It Time To Break Up Big Tech? appeared first on Reason.com.

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    Gene Epstein

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  • Will Trump Torpedo North American Trade?

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    The negotiations that remade the North American Free Trade Agreement were, as one participant put it, a series of “near-death” experiences. For more than a year, starting in 2017, envoys from the United States, Canada, and Mexico met to determine the future of a trade alliance worth trillions of dollars. They clashed over everything from labor laws to the minutiae of duty-free imports, while repeatedly deflecting President Donald Trump’s threats to withdraw from the agreement. In the fall of 2018, they were finally prepared to sign what came to be known as the United States-Mexico-Canada Agreement. First, though, they needed to decide how long the accord should last.

    NAFTA was what is called a “forever deal”—as with all of America’s major trade agreements, its terms were permanently fixed. This frustrated Trump’s trade czar, Robert Lighthizer, who believed that NAFTA had resulted in thousands of job losses and a ballooning trade deficit. Lighthizer wanted the U.S.M.C.A. to have an escape hatch: a review mechanism, or perhaps a fixed term. So he proposed that the agreement expire after four years.

    In his book, “No Trade Is Free,” Lighthizer described his offer as “an aggressive opening bid.” Mexican and Canadian officials thought that it was insane: no business would expose its investments to a deal that could end so quickly. Even prominent Republicans expressed opposition. But Lighthizer found an ally in Jared Kushner, Trump’s key adviser on Mexico. Kushner had come to see trade negotiations as a game of mutual bluffing; the key to success, in his view, was getting your counterparts to “believe you are going to jump off a cliff.”

    On August 25, 2018, Kushner invited Mexico’s foreign minister, Luis Videgaray, to his home in the upscale Washington, D.C., neighborhood of Kalorama. As he recalled in his own memoir, “Breaking History,” negotiators were scheduled to meet the next morning, and both sides were short on time: the Americans were eager to send the agreement to Congress before the midterm elections, and the Mexicans needed to reach a deal before a new President came into office.

    Kushner made a proposal that he had cleared with Lighthizer. The agreement would remain in place for sixteen years, but, after six years, the countries would convene for a review. “If the parties agreed to an extension,” Kushner suggested, “the term of the agreement would reset for another sixteen years.” If they disagreed, “a ten-year termination clock would start to tick.” Videgaray left after midnight, having agreed to consult with the Mexican President, Enrique Peña Nieto.

    In the morning, everyone gathered in Lighthizer’s office, across from the White House. “Let me share a proposal,” Kushner began—a theatrical gesture, since Trump and Peña Nieto had already been briefed on the plan. By the meeting’s end, negotiators had agreed to include a review mechanism, ending more than a year of gruelling talks. Soon, Trump stood in the Rose Garden, hailing the U.S.M.C.A. as “the most modern, up-to-date, and balanced trade agreement in the history of our country.”

    For Mexican officials, one of the keys to accepting the deal was that the review would be triggered after six years rather than four: they predicted that Trump would serve two consecutive terms and leave office before the deadline came. In the meantime, they reasoned, the treaty would shield their nation’s economy from a hostile Administration. They turned out to be wrong. Trump returned to the White House four years later than expected, and the review of the U.S.M.C.A. is scheduled for next July, just seven months away. In Trump’s second term, his protectionist agenda has been even more aggressive and erratic than before. Most indications suggest that what will take place between now and the summer is less a review of America’s crucial trade relationships than a wholesale renegotiation.

    In the years since the U.S.M.C.A was signed, Mexico and Canada have become America’s top trading partners. Millions of jobs depend on this economic alliance, which exceeds $1.8 trillion in trade. Officials are already shuttling between their various capitals for conversations about what the parties might get from it.

    As the talks got under way, I sat down with Ildefonso Guajardo Villareal, a former secretary of the economy who led Mexico’s negotiations of the U.S.M.C.A. during his term. A short, dapper man of sixty-eight, Guajardo has been involved in every major trade accord that Mexico has signed since NAFTA. He built a reputation as a fearsome negotiator, once praised by Kushner for his ability to spin “technical issues into unsolvable deal-breakers.” Now he seemed pleased to be out of the fight. “I’ve got a trip coming up to Palm Beach,” he told me, in an airy cafeteria in Mexico City.

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    Stephania Taladrid

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  • Manchester museum hosting holiday events

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    MANCHESTER-BY-THE-SEA — With the spirit of Christmas-by-the-Sea on its way, the Manchester-by-the-Sea Museum, 10 Union St., is hosting several holiday events this weekend and beyond.

    First up is an Open House and Children’s Art Workshop, both free, on Friday, Dec. 5, 3-8 p.m., during the town’s Holiday Stroll event. The museum will be decorated for for the season and children may enjoy an ornament crafting and art workshop with instructor Martha Chapman. Refreshments provided.

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    By Times Staff

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  • Gold is Making History

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    Gold has just crossed a milestone no asset class has ever reached before—a $30 trillion market cap. That number alone says a lot about where investors are seeking safety and what they expect from the decade ahead. It also reveals something surprising: why many disciplined investors, myself included, see gold’s new height as a signal to stay bullish on Bitcoin. 

    The rotation has begun 
    Over the past several years, investors have been steadily rotating out of traditional U.S. bonds and into harder assets with gold, silver, and Bitcoin among them. Ray Dalio, one of the most respected hedge fund managers in history, suggested a 15 percent portfolio allocation in gold. When that kind of institutional voice underscores diversification as a core principle, it’s worth paying attention. 

    When I launched a digital asset fund in 2022, gold’s total market cap was over $10 trillion, and Bitcoin’s hovered near $1 trillion. Today, gold has tripled, while Bitcoin’s market cap is roughly $2 trillion. The ratio between those two assets—the original and the digital store of value—has widened dramatically. Historically, such divergences don’t last forever. 

    Read the market’s rhythm 
    Markets move in cycles. Crypto has followed a four-year rhythm: 2013, 2017, 2021, and now 2025. Each cycle brought an early crash, consolidation, and then a steep recovery that eventually set new highs. This year’s volatility feels familiar. The sudden downturns and sharp rebounds look a lot like 2020–2021, what I call “manufactured flushes,” driven by macro headlines, election speculation, and social-media-fueled anxiety. 

    It’s tempting to see each dip as the end of the story. But if past cycles hold, we may only be in the middle chapters. Gold’s surge to $30 trillion underscores a broader truth: The global appetite for hard, finite assets hasn’t peaked.  

    Why this matters to entrepreneurs 
    Even if you’re not in finance, this moment carries key lessons for anyone running a business.  

    Every cycle—whether it’s commodities, technology, or public sentiment—tests our ability to adapt. The leaders who thrive aren’t the ones who predict every move. They’re the ones who position early, stay diversified, and refuse to anchor themselves to the latest trend. 

    Gold’s milestone is a reminder that “safe” and “static” are not the same thing. What once felt stable—the bond market, the dollar, the corporate ladder—looks much different now. Today’s investors and founders are redefining stability as agility: the capacity to shift resources quickly toward what holds value next is the key. 

    For entrepreneurs, that means balancing our proven revenue streams with experiments in new markets or technologies. For investors, it means pairing traditional holdings with selective exposure to emerging assets that have asymmetric upside. In both cases, the principle is the same: Resilience comes from diversification, not devotion. We’ve seen evidence of this in the past weeks and days. In the moments when gold has faltered or taken big drops, Bitcoin has rallied. We can see the rotation happening, and those who’ve diversified into both arenas remain safe.  

    A broader rebalancing 
    When capital moves from paper to tangible or verifiable scarcity, it’s more than an investment trend. Now it becomes a cultural signal. People are asking where value truly lives. Is it in institutions, in algorithms, or in the productive work of builders and creators?  

    The answer will shape how we allocate not only our money but also our trust. 

    I believe gold’s record valuation will one day be viewed as a turning point. This may be the moment where investors are acknowledging that “hard assets” now include digital ones.  

    Whether Bitcoin fulfills that role completely remains to be seen. But the pattern is clear: The world is looking for assets that are transparent, finite, and globally accessible. 

    In my opinion, this is the key takeaway for anyone leading a company or a team. We’re operating in a market that rewards clarity, scarcity, and authenticity—the very traits that define leadership in uncertain times.  

    Gold is glittering at $30 trillion; however, the real measure of value lies in how we adapt as the rules of value creation continue to change. 

    The final deadline for the 2026 Inc. Regionals Awards is Friday, December 12, at 11:59 p.m. PT. Apply now.

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    Bridger Pennington

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  • Game Theory Explains How Algorithms Can Drive Up Prices

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    The original version of this story appeared in Quanta Magazine.

    Imagine a town with two widget merchants. Customers prefer cheaper widgets, so the merchants must compete to set the lowest price. Unhappy with their meager profits, they meet one night in a smoke-filled tavern to discuss a secret plan: If they raise prices together instead of competing, they can both make more money. But that kind of intentional price-fixing, called collusion, has long been illegal. The widget merchants decide not to risk it, and everyone else gets to enjoy cheap widgets.

    For well over a century, US law has followed this basic template: Ban those backroom deals, and fair prices should be maintained. These days, it’s not so simple. Across broad swaths of the economy, sellers increasingly rely on computer programs called learning algorithms, which repeatedly adjust prices in response to new data about the state of the market. These are often much simpler than the “deep learning” algorithms that power modern artificial intelligence, but they can still be prone to unexpected behavior.

    So how can regulators ensure that algorithms set fair prices? Their traditional approach won’t work, as it relies on finding explicit collusion. “The algorithms definitely are not having drinks with each other,” said Aaron Roth, a computer scientist at the University of Pennsylvania.

    Yet a widely cited 2019 paper showed that algorithms could learn to collude tacitly, even when they weren’t programmed to do so. A team of researchers pitted two copies of a simple learning algorithm against each other in a simulated market, then let them explore different strategies for increasing their profits. Over time, each algorithm learned through trial and error to retaliate when the other cut prices—dropping its own price by some huge, disproportionate amount. The end result was high prices, backed up by mutual threat of a price war.

    Aaron Roth suspects that the pitfalls of algorithmic pricing may not have a simple solution. “The message of our paper is it’s hard to figure out what to rule out,” he said.

    Photograph: Courtesy of Aaron Roth

    Implicit threats like this also underpin many cases of human collusion. So if you want to guarantee fair prices, why not just require sellers to use algorithms that are inherently incapable of expressing threats?

    In a recent paper, Roth and four other computer scientists showed why this may not be enough. They proved that even seemingly benign algorithms that optimize for their own profit can sometimes yield bad outcomes for buyers. “You can still get high prices in ways that kind of look reasonable from the outside,” said Natalie Collina, a graduate student working with Roth who co-authored the new study.

    Researchers don’t all agree on the implications of the finding—a lot hinges on how you define “reasonable.” But it reveals how subtle the questions around algorithmic pricing can get, and how hard it may be to regulate.

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    Ben Brubaker

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  • Donald Trump Can’t Dodge the Costly K-Shaped Economy

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    When Trump was running for a second term, he pilloried the Democrats for not bringing down costs and helping working families. Now Trump is the incumbent. Try as he will, he can’t easily disassociate himself, or his party, from a costly K-shaped economy. Even after his reversal on beef and other foodstuff tariffs, most of his levies remain in place, and millions of Americans are facing a year-end leap in the cost of health insurance. None of the schemes he has recently floated are adequate to address the affordability challenge, and his health-care proposal could well make things a lot worse.

    Trump got his fifty-year-mortgage idea from the MAGA loyalist Bill Pulte, the director of the Federal Housing Finance Agency, who reportedly pitched it as a way to offer home buyers lower monthly payments. But Pulte seems to have neglected to tell the President a couple of pertinent facts. Since mortgage holders pay off most of the interest on a loan before they start eating into the principal in a meaningful way, it could take someone who took out a fifty-year mortgage decades to build up much equity. And, because of the longer duration of the loan, they would carry higher interest rates than shorter-term loans. Analysts at UBS Securities calculated that, under Trump’s scheme, a typical borrower with a mortgage of four hundred and twenty thousand dollars would save a hundred and nineteen dollars a month, but they would make payments for an extra twenty years and end up paying twice as much interest.

    After widespread blowback to the idea, Trump’s enthusiasm for it appeared to wane, and Politico reported that White House officials were furious with Pulte for selling the President “a bill of goods.” Pulte, too, seemed to pull back. He said the Administration was considering another option, “portable mortgages” that would allow homeowners to transfer their loan for one property to another. The idea here would be to break the current logjam in which many people are reluctant to move because they’d have to take out a new mortgage at a higher rate. But Pulte provided no details about how the loan transfers would work, or whether banks would even agree to them.

    Sending direct payments to households is something Trump did twice in his first term, during the COVID-19 pandemic. But reviving this idea in the form of tariff dividends is another problematic idea. For one thing, the tariffs don’t generate nearly enough revenue to send two-thousand-dollar checks. The Committee for a Responsible Federal Budget reckons the proposal would cost six hundred billion dollars. So far, Trump’s levies have brought in only about a hundred billion dollars. Given this shortfall, the payments would have to be financed by additional borrowing, which perhaps explains why the Treasury Secretary, Scott Bessent, who has claimed that Trump’s policies will eventually reduce the gaping budget deficit, doesn’t sound very keen. (Last week, he said, “There are a lot of options here.”)

    Rising health-care costs are a headache for every President, but Trump made the problem a lot worse by signing the One Big Beautiful Bill Act, which allowed the expanded Obamacare subsidies that the Biden Administration had introduced during the pandemic to phase out at the end of this year. Nine out of ten people who get insurance through the exchanges benefitted from the enhanced subsidies, and many of them are now facing the prospect of steep hikes in their premiums. During the government shutdown, Democrats demanded that Republicans restore the subsidies. In an apparent bid to deflect blame, Trump endorsed an alternative approach, advanced by the Republican senator Bill Cassidy: depositing money directly into personal health savings accounts, which people could then use to purchase insurance.

    Experts on health insurance have slammed this proposal as misguided and dangerous. If the health-savings-account payments allowed individuals to buy any insurance plan they liked, rather than plans offered through the Obamacare exchanges, many younger and healthy people would likely choose cheaper “junk” plans that don’t cover preëxisting conditions and have limits on how much they pay out in cases of major illness. That would hurt the junk-policy owners who got seriously sick, and also everybody who still relied on Obamacare policies, because, in proportionate terms, that population would be older and sicker than it is now. With this deterioration in the insurers’ “risk pool,” premiums would rise even further. Some observers say it could even lead to the collapse of the system and a surge in uninsurance rates.

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    John Cassidy

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  • Opinion | Maduro Caused the Disaster

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    Regarding Quico Toro’s essay “ Another U.S. Attempt to Topple Maduro Would Be a Disaster” (Review, Nov. 8): Venezuela’s economic collapse and migratory crisis began in 2013, at least four years before the U.S. imposed broad U.S. sanctions. From 2013 onward, Venezuela experienced the highest inflation rate in the world and a precipitous decline in gross domestic product, driven directly by the devastating economic policies of Hugo Chávez and Nicolás Maduro, including widespread nationalizations, reckless monetary and fiscal policies and the implementation of universal price and currency controls.

    Mr. Toro neglects the consequences of the Biden administration’s policy of accommodation. Far from improving conditions, diplomatic passivity has allowed the government to dig in its heels, intensifying repression and exacerbating the humanitarian crisis.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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  • Bessent Says ‘Tenfold’ Growth in Stablecoins Will Lift Demand for Treasurys

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    Bessent Says ‘Tenfold’ Growth in Stablecoins Will Lift Demand for Treasurys

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  • The Human Toll of the Suspension of SNAP

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    Angel Goodwin used to work remotely, processing applications for Medicaid and for the Supplemental Nutrition Assistance Program, or SNAP. People would sometimes yell at her over the phone—“I’ve been called every name but a child of God,” she said—but it was worse when they cried. “Especially the elderly. They would be approved for, like, thirty dollars a month, and they’re getting Social Security for, like, nine hundred and forty-three dollars. They’d be, like, ‘Honey, I can’t—I don’t know what I’m going to do, I don’t have anybody.’ ” Goodwin, a single mother with an eleven-year-old son, also received SNAP benefits. “Little do they know I’m in the same boat,” she said.

    Earlier this year, Goodwin began to feel pain shooting down from her shoulder, most likely a consequence of repetitive computer work. At the beginning of October, she took a short-term disability leave. Then, toward the end of the month, she logged in to her SNAP account and saw an alarming notification: November benefits weren’t coming. She and her son had already scaled back to subsist on the short-term disability benefits, which were “not very much at all,” she said. Now they’d have to make do with less, even as food prices seemed to get higher every week. “Personally, my faith will always outweigh my fear,” she said. “But it’s at a scary point now.”

    Amid the prolonged government shutdown, which is now the longest in American history, SNAP benefits have become a political football. In previous shutdowns, emergency funds have been used to cover the program, which serves around forty-two million Americans. But the Trump Administration has declined to do so. A number of states have stepped in to cover the gap, or to provide additional money to food banks; Texas, which has a multibillion-dollar rainy-day fund, has done neither. (H-E-B, the grocery-store chain which arguably serves as a second layer of social services in the state, has donated six million dollars to food banks.) At the end of October, a federal judge ordered the Administration to continue SNAP payments. But, several days later, there was nothing in Goodwin’s SNAP account; the Administration has said that November payments will be only partial, and it’s unclear when the funds will arrive.

    Goodwin, who grew up in South Carolina, had what she describes as “a pretty rough childhood.” In her early twenties, she cut ties with her family, and found herself with a young child and no real support system. She slept on friends’ couches and then, when she felt her welcome wearing out, in her car. Being homeless was tolerable—“You meet cool people on the streets, people with wisdom,” she said—but she wanted her son to have a more stable life. She got a job working the night shift at a gas station, and earned enough money to move into a hotel where she paid by the week. It took two years to save up enough to cover a deposit to rent a small apartment. “I didn’t have any furniture—no couch or anything like that, just a couple of pans that I’d had in the hotel,” she said. “We pretty much slept on the floor. We literally started from zero.” When she felt overwhelmed, she prayed to God for guidance. She began having dreams about Texas, the state’s outline popping up in unexpected places. In her journal, she asked God if this was really what he wanted her to do— she’d never left South Carolina before. Yes was the answer she received, so she began researching apartments online. By now, she was working remotely as a customer-service representative for a bank, but she’d need more money to fund the move. On YouTube, she learned about retail arbitrage—essentially, buying discounted items in bulk and then reselling them on Amazon at a markup. The scheme eventually stopped working, but by then she’d saved up enough money to cover the deposit on an apartment in Houston. Two years ago, she moved into a renovated two-bedroom with pale-gray walls and a bright, narrow kitchen. Her days were taken up with work and with homeschooling her son.

    On the morning of November 3rd, day three of no SNAP, Goodwin put her son in the car and drove twenty-five minutes to the West Houston Assistance Ministries, a nonprofit social-services organization, which was hosting a special food-distribution event for SNAP recipients. When she arrived, at around 9 A.M., a line of cars snaked down the block, and volunteers in neon vests directed traffic. Nationwide, fourteen per cent of households are considered food-insecure. In Harris County, which comprises Houston, the figure is close to forty per cent. WHAM had seen a notable uptick in need since the shutdown began, on October 1st. “We’ve been focussed on food, but we’ve also seen an increase in evictions—it’s a crisis on top of a crisis,” Neysa Gavion, a social worker and a senior case manager at WHAM, told me. “And the interesting thing is, while we’ve always had people at the poverty line or below, this is the middle class.” Recently, the organization had provided assistance to an I.R.S. employee and single mother who was days from being evicted. “People that weren’t impacted before are being impacted now,” Gavion said. A retired woman waiting in line told me that she had contemplated growing her own food. “I got a little balcony. Maybe I can grow some beans?” she said.

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    Rachel Monroe

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  • Can the Global Economy Be Healed?

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    Now that many governments around the world are moving to protect industries they consider vital, and international institutions like the I.M.F. and the World Trade Organization are being sidelined, Rodrik believes it will be largely up to the U.S. and China, as the world’s two dominant economic powers, to define new rules of global commerce after Trump has departed. He is particularly enthused by China’s two-decades-long effort to promote renewable energy, which he says could serve as a model to apply in other countries, and in other sectors of the economy. Largely as a result of technological progress in China, solar energy is now so cheap that even a red state like Texas is rapidly expanding its solar capacity. And thanks to the growth of the electric-vehicle industry in China, which is now the world’s largest car market, cheap Chinese E.V.s are being exported to many other countries. “We’re much further ahead on this”—the green transition—“than anyone thought feasible, and it happened through a mechanism that nobody predicted,” Rodrik said.

    In his book, he argues that the key to the success of China’s green-energy initiative was the breadth of tools it employed, and the flexibility with which they were applied. The Chinese government supplied E.V. startups with venture capital, subsidies, customized infrastructure, specialized training, and preferential access to raw material. But instead of imposing a top-down production plan, it left a lot of the details up to the businesses. “The hallmark of Chinese developmentalism is an experimental approach,” Rodrik writes. “The national government sets broad objectives. Then a variety of industrial policies are deployed in different industries and locations, followed by close monitoring, iteration, and revision when called for.”

    Rodrik also saw much to like in the Biden Administration’s industrial policies, which aimed to hasten the green transition by offering subsidies, tax credits, and public support for industrial research. Trump is busy dismantling many of these policies. Rodrik would support restoring them in the future. He also advocates for allowing countries, including the U.S., to use targeted tariffs to protect specific industries that they consider vital, but he insists it’s a mistake to focus solely on manufacturing, which employs less than ten per cent of the U.S. workforce. The real challenge, he argues, is boosting wages in the vast services sector, which employs more than eighty per cent of American workers. “Whether we like it or not, services will remain the main job engine of the economy,” he writes. Some service jobs, such as managerial ones, are well paid, but many of them, particularly in areas like retail and care, are low-wage positions. “An inescapable conclusion follows: a good jobs economy hinges critically on our ability to increase the productivity and quality of jobs in such services.”

    Rodrik concedes that there is no tried and tested formula to achieve this. The approach that he advocates mimics the Chinese model in encompassing government agencies at the national and local level, as well as educational institutions, private businesses, and workers. He supports efforts to organize service workers in labor unions, and he discusses the possibility, raised by Arin Dube, an economist at the University of Massachusetts, Amherst, of establishing wage boards to set minimum wages that vary across industries, occupations, and locations. Rodrik, citing the contrast between nurse practitioners, who earn a median yearly salary of a hundred and twenty-six thousand dollars, and low-wage care workers, also argues that training, technology, and regulatory reform can a play a big role—as can directed scientific research.

    He calls for the establishment of a workers’ equivalent of DARPA, the Pentagon agency that has helped finance the development of the internet, G.P.S., and the mRNA technologies used to make COVID-19 vaccines. Whereas DARPA focusses on research that potentially has military implications, Rodrik’s proposed “ARPA-W” would focus on developing “labor-friendly technologies,” including some that employ artificial intelligence. As some observers predict that A.I. could eliminate huge numbers of jobs, many of them well paid, Rodrik, echoing the M.I.T. economists David Autor, Daron Acemoglu, and Simon Johnson, argues that technological progress needs to be refocussed. Referring to his proposal for an ARPA-W, he writes, “The overarching objective would be to allow workers to do what they cannot presently do, instead of displacing them by taking over the tasks that they already do.”

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    John Cassidy

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  • Former BLS chief warns Powell is “flying blind” at a pivotal time for the Fed | Fortune

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    The Federal Reserve faces an unprecedented challenge as it prepares to set interest rates next week—making its decision with almost no economic data available.

    The government shutdown has halted the release of most U.S. economic statistics, including the monthly jobs report. However, the Fed also recently lost access to one of its main private sources of backup data. 

    Payroll-processing giant ADP quietly stopped sharing its internal data with the central bank in late August, leaving Fed economists without a real-time measure that had covered about one-fifth of the nation’s private workforce. For years, the feed had served as a real-time check on job-market conditions between the Bureau of Labor Statistics’ monthly reports. Its sudden disappearance, first reported by the Wall Street Journal, could leave the Fed “flying blind,” former Bureau of Labor Statistics commissioner Erica Groshen said.

    Groshen told Fortune that, in her decades working at the BLS and inside the Fed, the loss of ADP data is “very concerning for monetary policy.”

    The economist warned that at a moment when policymakers are already navigating a fragile economy—Fed Chair Jerome Powell has said multiple times that there is no current “risk-free path” to avoid recession or stagflation—the data blackout raises the risk of serious missteps. 

    “The Fed could overtighten or under-tighten,” Groshen said. “Those actions are often taken too little and too late, but with less information, they’d be even more likely to be taken too little too late.” 

    Rupture after years of collaboration

    Since at least 2018, ADP has provided anonymized payroll and earnings data to the Fed for free, allowing staff economists to construct a weekly measure of employment trends. The partnership is well-known to both Fed insiders and casual market watchers. However, according to The American Prospect, ADP suspended access shortly after Fed Governor Christopher Waller cited the data in an Aug. 28 speech about the cooling labor market.

    Powell has since asked ADP to restore the arrangement, according to The American Prospect

    Representatives at ADP did not respond to Fortune’s request for comment. The Fed declined to comment.

    Groshen said there are several plausible reasons why ADP might have pulled the plug. One possibility, she said, is that the company found a methodological issue in its data and wanted to fix it before continuing to share information used in monetary policy. 

    “That would actually be a responsible decision,” she told Fortune, noting that private firms have more flexibility than federal agencies but less institutional obligation to be transparent about errors.

    Another explanation, Groshen said, could be internal or reputational pressure. After Waller mentioned the collaboration publicly, ADP may have worried about how it looked to clients or shareholders. 

    “You could imagine investors saying, ‘Why are we giving this away for free? The Fed has money,’” she said. The company might also have wanted to avoid being seen as influencing central-bank decisions, especially in a politically charged environment.

    Whatever the motivation, Groshen said the episode underscores how fragile public-private data relationships remain. Without clear frameworks or long-term agreements, companies can withdraw at any time.

    “If policymakers build systems around data that can vanish overnight,” she said, “that’s a real vulnerability for economic governance.”

    A data blackout at a critical moment

    The timing could hardly be worse. 

    On Thursday next week, the Federal Open Market Committee meets to decide whether to lower interest rates again, following a long-awaited quarter-point cut in September. With the BLS pausing most releases under its shutdown contingency plan, official figures on employment, joblessness, and wages have been delayed—starting with the September report and possibly extending into October.

    In the absence of real-time data, Fed economists are relying on a patchwork of alternatives: state unemployment filings, regional bank surveys, and anecdotal reports from business contacts. Groshen called those “useful but incomplete,” adding that the lack of consistent statistical baselines makes monetary policy far more error-prone.

    She advocated for the BLS to receive “multiyear funding” from Congress so that it could stay open even during government shutdowns. 

    “I hope that one silver lining to all these difficulties will be a realization on the part of all the stakeholders, including Congress and the public, that our statistical system is essential infrastructure that needs some loving care at the moment,” Groshen said.

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    Eva Roytburg

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  • Report: Mass. cities, towns face ‘historic’ fiscal crisis

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    BOSTON — Massachusetts cities and towns are facing a “historic fiscal crisis” amid rising operating costs, lackluster state aid and restraints on property tax increases, according to a new report.

    The “Perfect Storm” report, released by the Massachusetts Municipal Association, found that while state government spending has increased by an average of 2.8% per year since 2010 to meet its needs, restraints on local revenue sources – including Proposition 2 1⁄2 – have held city and town spending to just 0.6% per year.


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    By Christian M. Wade | Statehouse Reporter

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