“a $90 billion bailout of union retirement plans—one that’s completely paid for with federal borrowing.
The bailout was approved last year as part of the American Rescue Plan, the $1.9 trillion emergency spending bill that was ostensibly meant to combat COVID-19 but included an impressive array of spending that had nothing to do with public health. The bailout will direct funds to more than 200 nearly insolvent multiemployer pension plans, which are established jointly by unions and the private companies that contract with them through collective bargaining agreements.”
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“Millions of union workers, that is. If you’re not part of that select club, there’s no bailout coming your way—even as a sagging economy eats into private retirement savings, inflation makes every saved dollar worth less, and Social Security looms on the brink of insolvency.
Oh, and you’ll have to pay back (with interest!) the money borrowed to make this bailout (and the rest of the American Rescue Plan) possible. Sounds like a great deal, right?”
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“What happened to the private multiemployer pension systems will sound familiar to anyone who has followed the slow collapse of public sector pension plans in many states. A 2018 study by the Government Accountability Office found that the Central States Pension Fund, one of the largest and most deeply indebted private multiemployer funds, would have 91 percent of the assets necessary to cover future costs if it had achieved its target annual financial return of 7.4 percent every year since 2000. Instead, the fund has earned an average of less than 5 percent annually and was on pace to run out of money by 2025. (It’s also worth noting that there are more than 1,400 multiemployer pension plans out there; most are well-managed and not at risk of insolvency.)”
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“”creates perverse incentives for further mismanagement and underfunding and leaves the taxpayer holding the bag.””
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“For the roughly 3 million workers enrolled in the sinking multiemployer plans, the situation may well have been dire. But it wasn’t an emergency. Congress had been bickering for years over how to deal with this problem—until the American Rescue Plan offered an opportunity for a party-line vote to approve a bailout for a constituency that reliably votes Democratic.
In that regard, this is something of a no-brainer. Biden delivered a major win to his labor union allies, put the cost on the taxpayers’ tab, and took a victory lap for doing it.”
“it’s the FDA’s unnecessary and protectionist rules that effectively ban foreign-made baby formula from being imported into the United States. On Wednesday, the agency announced plans to tweak those rules so foreign formula manufacturers can permanently import their goods into the U.S., giving American consumers greater choice in the marketplace and ensuring more robust supply chains.”
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” When the Abbott Nutrition plant in Michigan was forced to close temporarily due to an FDA investigation into possible contamination, it created a supply shock that left store shelves empty and parents scrambling to find formula. Because of the FDA’s protectionist rules (and high tariffs levied on foreign-made formula), markets could not adapt quickly to the shortage here in America”
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“In testimony to Congress, FDA officials admitted to botching the response to the contamination at the Abbott plant. But the real culprit of the recent shortage was a deeper and more pervasive one. No matter what nationalists like Sen. Josh Hawley (R–Mo.) might suggest, closing off the country to international trade is not a recipe for resilience. The baby formula crisis demonstrated that it is quite the opposite.
So it’s good to see the FDA admit those mistakes and crack open the door to allowing foreign formula into the U.S. on a permanent basis.
Unfortunately, the list of policy changes the FDA announced..mostly amounts to providing technical assistance to foreign firms that want to sell formula here. That is, offering help in navigating the complex approval process, rather than sweeping aside those regulations entirely. If a formula maker has passed muster under E.U. regulations, that should be good enough for the FDA.
There’s also the matter of tariffs on imported formula, which are so high that they effectively make any imported formula uncompetitive in the American market. Why would a foreign manufacturer like Holle or HiPP go through the complicated FDA approval process (even after the announced changes) if it knows in advance that its goods won’t be able to compete on a level playing field in America?”
“Two Philadelphia-area churches have come under fire from local zoning officials, who say their free meal services, mental health counseling, and monthly pantries aren’t allowed on their properties and will have to stop or else they risk fines.
In early June, Pottstown staff sent letters to Christ Episcopal Church and Mission First, saying that this charitable work went beyond the allowable activities for churches in the borough’s Downtown zoning district.”
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“The two churches can either apply for a zoning variance—which requires going before the borough’s Zoning Hearing Board—or stop the disallowed charitable work. Failure to do either of those things could result in the churches being hit with $500 fines for every day they’re out of compliance.
“It was an absolute surprise when we got this letter,” says Dennis Coleman, the deacon of Christ Episcopal Church. He says that his church has been providing meals and an “essentials” pantry for years without incident.”
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“Even when charitable activities are allowed by the zoning code, the process for getting them approved is long and discretionary. Frequently, it will involve public hearings where opponents have the opportunity to urge zoning officials to deny permits for a new soup kitchen or shelter.”
“”Regulatory processes that increase the time between identifying and implementing treatments exacerbate wildfire risk and limit the flexibility of managers to use new information to quickly address emerging risk,” Eric Edwards and Sara Sutherland wrote in a report published last month by the Montana-based Property and Environment Research Center (PERC). “In 2021, for example, several proposed treatment areas burned in large wildfires while facing delays from environmental review and litigation.”
Under the requirements of the National Environmental Policy Act (NEPA), the public and activist groups are able to formally object to proposed actions, such as forest thinning, through a process that moves at the usual molasses-like speed of bureaucracy. Once the NEPA process has been exhausted, interested parties can move their objections to court by filing lawsuits.
“Although most projects are not litigated, the depth of analysis and time spent on the NEPA process is commonly based on the threat of litigation, as well as the level of public and political interest and defensibility in court,” Edwards and Sutherland note.
That there’s any delay at all in mitigating wildfire danger is frustrating to those of us whose homes and communities have been threatened by fire. But the extent of such delays is mind-boggling.
“Once the Forest Service initiates the environmental review process, it takes an average of 3.6 years to begin a mechanical treatment and 4.7 years to begin a prescribed burn,” according to the PERC authors. “For projects that require environmental impact statements—the most rigorous form of review—the time from initiation to implementation averages 5.3 years for mechanical treatments and 7.2 years for prescribed burns.”
Lawsuits drag things out further, extending the timeline on prescribed burns to as long as 9.4 years.”
“High-level bilateral military contacts have long been a vexed issue. Beijing repeatedly rebuffed Defense Secretary Lloyd Austin’s efforts to secure a call with his Chinese counterpart, Wei Fenghe. Austin finally succeeded in speaking to Wei in April after almost 18 months of efforts.
“We want more open communications particularly between our militaries at a time like this,” John Kirby, National Security Council spokesperson, said Friday. “Because when you have this much military hardware steaming and sailing and flying around, the chances of misperceptions and miscalculations only increase.”
But the relatively low-level nature of the canceled talks suggests that Beijing’s cancellation was more form than substance.
“These are all useful engagements but ones that are not at the very top level and …[bilateral] communications will remain open,” said Ret. Vice Adm. Robert B. Murrett, professor of practice at Syracuse University’s Maxwell School. “I would hope that as opposed to being canceled, these [meetings] are actually just being suspended and that cooler heads would prevail sometime into next year.”
The announcement of cancellations allows Beijing to publicly vent about the Pelosi visit while providing time to walk them back in the coming months. That performative aspect of the Chinese response reflects President Xi Jinping’s domestic political considerations and the need to burnish his image as an iron-willed defender of China’s territorial integrity. That effort is particularly urgent in the run-up to autumn’s 20th Communist Party Congress, where Xi is widely expected to emerge with an unprecedented third term as a paramount leader.”
“Ray shared data showing that workers would need to make almost $30 an hour in order to rent a standard two-bedroom apartment in the Miami area without experiencing cost burdens. As of 2021, Miami’s median hourly wage was $18.59, creating a situation where many residents are forced to spend upward of 50 percent of their incomes on housing alone. The conventional financial wisdom is that households should spend no more than 30 percent of their incomes on rent.
Already in 2019, some were sounding the alarm about Miami’s rising housing prices. One study commissioned by the housing group Miami Houses for All in collaboration with city and county officials found that Miami was the third-most expensive metropolitan area in the entire country for housing costs. The same study found that over 50 percent of households in Miami were spending more than they could afford on rents and mortgage payments.”
“At first glance, all of these loan forgiveness programs may seem to have merit. But they are all trying to paper over problems that the federal government created and that will continue to exist after the new rules go into effect. Forgiving billions of dollars in student loans means billions of federal dollars went to poorly run schools and students who were, in many cases, unprepared for college. While those students may deserve some kind of debt relief—and which very few of them can receive through bankruptcy—the Education Department continues to issue loans to unprepared students in order to attend poorly run schools.
The expansion of benefits offered by the PSLF program spells unique problems for taxpayers and future borrowers alike. Expanding eligibility to more kinds of “public service” workers, including employees of private companies and private contractors, is expected to cost over $13 billion in the next 10 years.
As with debt forgiveness for borrowers who are misled by their schools, PSLF on its face sounds like a good idea. If a student decides to take a career in public service—an essential but presumably low-paying job—then, after 10 years of payments, that student will be rewarded for his service by having a set amount of his remaining loan balance paid. However, those who work in the public sector often have the best job security, health care, and pensions among America’s middle-class workers.
What’s more, many professions counted as “public service” are some of the highest-paying positions in the entire job market. Physicians employed by nonprofit hospitals, for example, are eligible for PSLF. However, whether a cardiologist works for a nonprofit or a for-profit hospital, his yearly salary will likely top $400,000. Thus, prospective physicians can take on hundreds of thousands of dollars in debt for medical school, and only pay a fraction of the amount borrowed, while accruing millions of dollars in income over the course of their careers.
When academic deans can assure students that a large debt burden can be discharged by working for a nonprofit or the government after graduation, they can more easily justify exorbitant tuition costs. After all, why worry about borrowing a massive sum if you won’t have to repay it? The PSLF solution to high debt burdens for public sector workers has only aggravated the problem and will continue to. Once the government pours funding in the form of debt relief into the market for specific degrees, schools end up using these funds to justify hiking prices, thus generating a bigger student debt crisis. In turn, this enlarged crisis cries out for more government funding.
The solution to runaway student debt inflation is for the government to stop subsidizing tuition hikes. While limited debt relief for defrauded or disabled borrowers makes sense, the federal government needs to start making policy proposals that will attack the student debt crisis at its source—the cost of college attendance.
Student loan debt is a real and pressing problem for America’s poorest borrowers, but it is merely an inconvenience for millions of others, including many beneficiaries of PSLF. Solving the college cost problem in the long term requires getting the government out of the lending business.”
“We need to remember that earlier this year officials retrieved boxes of materials from Mar-a-Lago that they said should have been turned over to the National Archives before Trump left office. According to reporting from CNN, investigators became aware of the existence of more such documents during a visit to Mar-a-Lago in June. But instead of simply taking these documents as officials had done previously, or subpoenaing Trump for the documents, investigators took the more serious step of requesting a search warrant. This suggests that officials at the Department of Justice did not think they would get all the documents in Trump’s possession if they filed a subpoena.
There is much we still don’t know about what the agents were looking for and what they found, but the process of applying for and receiving permission for the warrant indicates the significance of what happened Monday.
Typically, I would advise a client that an FBI search at your home means that you will likely face charges. That’s because a federal judge determined that there was good reason to believe a federal crime was committed and that evidence of the crime was in your home. To be clear, the execution of a search warrant doesn’t necessarily mean that the evidence points to the owner of the home as the person who committed the crime. It just usually works out that way.
To obtain the warrant, the DOJ had to present a detailed affidavit to a judge walking through the evidence they have that a crime was committed and providing some reason to believe evidence of that crime is at Mar-a-Lago right now. I emphasize “right now” because the government needs to show that there was probable cause to believe that evidence of the crime was present at Mar-a-Lago at the time of the search. It is extremely unlikely that a judge would approve a warrant based on stale evidence that had been received many months ago. The Justice Department also would act in the most conservative, cautious manner given the enormous stakes for the Department’s reputation and the nation as a whole.”
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“The nature of the possible charges is also very unclear. Recent reporting from both the New York Times and the Associated Press indicates the search warrant is related to classified material taken from the White House by Trump when he left office. But we know that mishandling classified documents only rarely results in charges.
James Comey was right when he testified that the DOJ typically does not prosecute cases involving the mishandling of classified material unless that material was deliberately transferred to a third party. That suggests to me that there is something important — call it a plus factor — we don’t know here. People on the right have rushed to judgment and are already saying, “This is just a docs case.” But we don’t know that. In fact, there is reason to believe it is more than that.”