“Some of the causes are fairly self-evident: Entering the third year of the Covid-19 pandemic, the US — and much of the rest of the world — is grappling with a supply chain crisis. That means most goods, from game consoles to oranges, are more difficult to get to store shelves for one reason or another, whether it’s a lack of critical tech components or a backup at ports due to labor shortages. But US consumers simply haven’t stopped buying, and that demand-supply disjunction has caused record inflation.
Some economists, as well as President Joe Biden, take the view that the pandemic — and the pandemic-snarled supply chain — are the primary culprits, and inflation will ease as the US keeps combating the pandemic and implements supply-chain fixes. On Friday, according to CNN’s Kaitlan Collins, Biden told reporters that “the reason for inflation is that we have a supply chain problem that is really severe.”
Others, though, are concerned the problem is bigger than that. Former Treasury Secretary Larry Summers, for example, has also pointed to government spending as a reason for increased inflation, and believes it’s far from a bump in the road.”
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“lockdowns and being stuck at home — unable to travel or go to restaurants, bars, and live events — have shifted what Americans are spending their money on. Less money spent on travel or experiences, combined with stimulus funds, has driven many Americans to buy more consumer goods. That, combined with supply chain problems decades in the making and exacerbated by the pandemic, has led to the current, precipitous rise in inflation.”
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“While the US has spent trillions in pandemic relief, however, inflation is also occurring elsewhere in the world, where governments have taken different approaches to dealing with the fallout from the pandemic — suggesting that government spending doesn’t tell the whole story.”
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“While the Biden administration is doing what it can to fix supply chain issues and drive down rising gas prices, most of the tools to address inflation are in the hands of the Federal Reserve.”
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“One way the Fed plans to cool the economy is “tapering” — gradually decreasing the $120 billion it spends per month on government-backed bonds, which has injected money into the financial markets during the pandemic. In November, Fed Chair Jerome Powell announced the central bank would reduce that amount by $15 billion each month. The purchasing program is supposed to end halfway through 2022, but as the New York Times reported in early December, it could finish more quickly as the Fed attempts to reduce inflation.
“At this point, the economy is very strong, and inflationary pressures are high,” Powell said in late November. “It is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, which we actually announced at our November meeting, perhaps a few months sooner.”
Along with that could also come interest rate hikes, although the Fed has not announced specific plans to do so.”
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“Beyond monetary policy, though, the other massive piece of the puzzle is the supply chain — and that’s something politicians and policymakers have much less control over. Biden has attempted to ease supply chain woes by running the Port of Los Angeles 24 hours a day, clearing the docks so goods don’t wait for days on cargo ships stranded in the water. And the release of 50 million barrels of oil from the US Strategic Petroleum Reserve last month was geared toward reducing gas prices, which have already begun to fall.
Most likely, however, the supply chain will remain snarled for the foreseeable future — keeping inflation higher than we’re used to — and policymakers will have to react to that reality.”
“Scientists originally suspected the problem was illegal logging in local forests, which are protected as part of the Monarch Butterfly Biosphere Reserve. But as they later discovered, the decline has a lot more to do with what’s happening thousands of miles away in the US. Over the last few decades, industrial farms have decimated grasslands rich in milkweed, the only plants that monarch caterpillars can eat. Less food in the US means fewer butterflies thousands of miles away in Mexico.”
“As the Capitol riot unfolded on January 6, Fox News hosts knew exactly how bad things were.
“The president needs to tell people in the Capitol to go home. This is hurting all of us. He is destroying his legacy,” Laura Ingraham texted to White House Chief of Staff Mark Meadows. “Please, get him on TV — [the riot is] destroying everything you accomplished,” Brian Kilmeade wrote to Meadows. “Can he make a statement, ask people to leave the Capitol?” wrote Sean Hannity in yet another Meadows text.
The texts, revealed during a Monday hearing of the House January 6 Commission, were at odds with the hosts’ on-air comments on the night of the attack. Ingraham suggested that “antifa supporters” may have been responsible for the violence. Kilmeade took a similar line: “I do not know Trump supporters that have ever demonstrated violence that I know of in a big situation.” Hannity, for his part, asserted that “the majority of them were peaceful.”
This is tangible proof that some of Fox’s marquee personalities knowingly lied to their audience about January. The lying began basically immediately, in the direct aftermath of a national tragedy.
This isn’t the only issue on which Fox’s dishonesty has been exposed. On one of the fundamental policy topics of the day, the pandemic, the right’s most influential news network is saying one thing to its audience and doing another in private.
Fox News’s programming on vaccines and vaccine mandates has been relentlessly hostile. Yet more than 90 percent of Fox News employees are fully vaccinated, and the company has a vaccine mandate that’s actually stricter than the one President Joe Biden has proposed for large corporations. Hosts tend not to mention this on air and, on the rare occasions that they do, they mislead their audience about it.
They are lying to their audience, and anyone paying close attention can see it.
These incidents speak to a deep pattern in modern conservatism, a parasitic relationship in which a super-wealthy elite preys on the fears of the conservative base for profit.”
“Lawmakers voted 50-49 to raise the debt limit by $2.5 trillion, a figure that’s expected to tide the government over until after the midterm elections next fall. Every one to two years, it’s vital for the US to address the debt ceiling to cover past spending and make sure the government doesn’t default; if it did, it would likely have catastrophic economic consequences globally.
Interestingly, the resolution succeeded because it did not require 60 votes to clear a filibuster in the Senate after lawmakers passed a bill last Thursday granting a one-time exception to the rule.
The deal to suspend the filibuster was bipartisan; leaders of both parties have hesitated to make exceptions to the filibuster, a procedural rule requiring a Senate supermajority to pass legislation, if it gets blocked by the opposition. Senators were willing to make an exception in this case, for two reasons.
One, it enabled Democrats to approve the debt limit resolution on their own, with no Republican support. Republicans wanted to withhold their votes in hopes of weaponizing Democrats’ vote to raise the debt ceiling in future campaigns. Two, the deal allowed a vote to be held quickly, narrowly avoiding the December 15 default deadline calculated by Treasury Secretary Janet Yellen.
This last-minute deal enabled lawmakers to avert a debt default and massive economic crisis while overcoming a partisan impasse on the subject. For some Democrats, too, it revealed that exceptions to the filibuster are possible — and an option lawmakers should consider for other bills.”
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“The debt ceiling vote has opened the door to questions of whether Democrats would consider filibuster exceptions for other bills, like voting rights protections. Activists, and some Democratic lawmakers, have called for this in recent months amid failures to advance voting rights protections, police reform, and a $15 minimum wage due to GOP opposition in the Senate. But a filibuster exemption for policy changes is likely to be difficult to secure.
This time around, Democrats were only able to get an exception because it was for something Republicans actually wanted. Though there was enough GOP opposition to raising the debt limit that getting 60 Senate votes was in doubt, Republican leaders like Senate Minority Leader Mitch McConnell did not want the US to default. Those leaders made sure the exception passed for the good of the domestic and global economy. Without Republican support, Democrats likely wouldn’t be able to approve another exception in this same way.
That leaves Democrats with another challenging option: banding together for a rules change. Those sorts of modifications can be done by majority vote. But that would require the support of all 50 Democratic caucus members, which party leaders don’t currently have. Moderate Sens. Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ) have staunchly opposed such changes thus far.
Still, this development has made it clear lawmakers do have another option to consider for bills that can’t pass via budget reconciliation, and has set a recent precedent for such carveouts. Now that it’s been done once, expect to hear calls to do it again. In fact, this filibuster carveout has sparked new conversation about how else this tactic could be used.”
“2020 was the first year on record that the majority of Americans said they did not belong to a church, synagogue, or mosque; from the 1930s to the turn of the 21st century, around 70 percent of Americans did belong to one. Americans, particularly younger ones, increasingly report that they have no religious preference, or as some have put it, it’s “the rise of the nones.” But perhaps “none” doesn’t quite tell the whole story.”
“to build 500,000 chargers with half the budget, the Biden administration will have to opt for slower chargers. (The faster the charger, the more expensive it is to install.) The Biden administration’s plan, which draws on funds from the recently passed $1.2 trillion bipartisan infrastructure bill, prioritizes chargers that take hours to fully charge an electric car — a potentially hard sell for Americans who are used to filling gas tanks from empty to full in minutes. And while more chargers are great, the plan is an indicator of just how watered-down Biden’s energy policies have become over the last year. Democrats still haven’t been able to agree on a clean energy plan, and without one in place, those EV chargers could just end up getting their energy from fossil fuel sources.”
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“There are currently three different types, or levels, of electric vehicle chargers. Level 1 chargers plug into a regular 120-volt power outlet and deliver power to electric cars at a glacial three to five miles of range per hour. At that rate, it would take a couple of days for most cars to go from empty to fully charge. Level 2 chargers convert the 120-volt connection to about 240 volts, charging cars around 10 times faster than Level 1 chargers and bringing a battery to full within a few hours. Level 3 chargers, also called DC fast chargers, are the fastest of the lot. They add anywhere from three to 20 miles of range per minute.That means your car can be about 80 percent charged in the time it takes you to use the bathroom and grab a cup of coffee at a rest stop.”
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“industry experts say, we don’t really need every charger to be a fast charger — which is why the Biden administration’s charging framework just might work.
“There’s a temptation to recreate the gas station model, where we say, ‘Oh I’m low on fuel, I need to go fill up now and be on my way in five minutes,’” Joe Britton, executive director of the Zero Emission Transportation Association, told Recode. “That would be a mistake.” (Just don’t tell Harris, who said charging the Volt was “just like filling up your car with gas.”)
Instead, Britton said, it’s important to consider how most people actually use their cars on a regular day. Most folks aren’t driving hundreds of miles each day; they’re driving between home and work or running errands around town. For those folks, Level 2 chargers would work just fine. They can charge their cars at home, drive to a grocery store, plug in at the parking lot, and drive back home with a full battery. So while the Biden plan does include strategically installing faster chargers along highways and in rural areas, the focus on building lots of Level 2 chargers in local communities is a way to stretch that $7.5 billion a long way.”
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“Despite being home to EV pioneers like Tesla and GM, the US lags far behind Europe and China in electric vehicle sales. The majority of American EV sales are also concentrated in major metropolitan areas, with nearly half of all EV sales in California alone.”
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“Studies have shown that electric cars drawing power from coal-heavy grids can actually be worse for the climate than hybrids. And so far, the president’s attempts to clean up the grid have been repeatedly thwarted by Senator Joe Manchin of West Virginia, who single-handedly gutted a proposal to replace coal- and gas-powered plants with solar, wind, and nuclear energy. Most of the energy policy that remains in Biden’s signature Build Back Better bill revolves around tax credits for clean energy, with few penalties for continued pollution-heavy energy production.”
“While Puerto Rico has failed to make debt service payments since 2017, government spending is up over 12 percent since then despite a drastic population decrease. Long says Puerto Rican officials are realizing “how easy it is to hide financial data, pretend austerity, and fool their creditors.” For its part, she adds, the U.S. government is creating all the incentives for Puerto Rico “to become a serial defaulter, like Argentina,” a country on the brink of its tenth default since 1816.
The comparison is ominous; Argentina’s longstanding practice of acquiring heaps of debt on the global markets before failing to repay it reflects the workings of its internal politics. As scholars Pablo Spiller (of the University of California, Berkeley) and Mariano Tomassi (of the Universidad San Andrés in Argentina) wrote in 2007, Argentina’s brand of federalism combines decentralized spending for the provinces with largely centralized tax collection and funding schemes. The system, which began to arise in the late 19th century, still motivates “subnational governments [to] adopt a lax fiscal stance in the expectation that they will be bailed out in the event of a fiscal crisis.”
In turn, they write, the top regional politicians tend to be the crony machine operators “who are best at the game of extracting rents from the common central pool.” Similarly, negotiating rescue packages with the International Monetary Fund has become a part of an Argentine president’s unofficial job description. Will governors of Puerto Rico assume the same role vis-à-vis the White House and Congress?
Certainly, U.S. taxpayers should consider the long-term consequences of their bailout of Puerto Rico, where children of politicians tend to be overrepresented as recipients of six-figure government salaries and seven-figure government contracts. The habitual debt busts of Buenos Aires is one Latin American export that is better left on the dock.”
“Earlier this year, schools around the country received more than a hundred billion dollars from the federal government—American taxpayers, in truth—in order to recover from the pandemic and finally get back to the task of teaching kids.
The feds stipulated that 20 percent of that money be put toward addressing learning losses during the pandemic, but the bulk of it can be spent at schools’ discretion. Which means, of course, that many schools are using this sudden injection of cash to make improvements that have nothing to do with keeping COVID-19 at bay.
“Some districts are investing big money in initiatives that don’t appear at first glance strictly COVID-related,” notes Education Week. “Miami-Dade schools plan to spend $30 million, or $86 per student, on cybersecurity. Raleigh County schools in West Virginia lists a $9 million effort—more than $800 per student—to expand an elementary school, adding nine classrooms, upgrading the library, expanding the kitchen, and separating the cafeteria and the gym. The Newport News school district in Virginia is spending $840,000 for a new student information system to help teachers catalog students’ academic progress.”
An unnamed school district will use some of its COVID-19 relief funds to install vape detection devices, purchase new student ID cards, and build a tennis court.
Indeed, many districts seem to be spending significant chunks of money on upgrading athletic facilities and expanding stadiums, according to Education Week. Athletics can be an important part of many students’ lives, and letting kids get back to sports was a good reason (among many) to move away from the soul-crushing farce of virtual learning and get everybody back in school. But a slightly nicer football field probably isn’t going to improve students’ test scores or make them safer from COVID-19, which after all are the two primary justifications for all the spending.”
“It is common to chalk up America’s failures in Afghanistan to incompetence, ignorance, or stupidity. Yet The Afghanistan Papers, by The Washington Post’s Craig Whitlock, shows an American government that, although it had no idea what it was doing when it came to building a democracy in Afghanistan, did an excellent job manipulating the public, avoiding any consequences for its failures, and protecting its bureaucratic and financial interests. The problem was a broken system, not a generalized incompetence.
In 2016, Whitlock received a tip that the special inspector general for Afghanistan reconstruction (SIGAR) had interviewed hundreds of participants in the war, including top American and Afghan officials, military leaders, and outside consultants. When the paper tried to get its hands on the results, SIGAR fought it every step of the way; it took a three-year legal battle to get the documents. The Post then published them on its website—along with some related items, such as memos from Defense Secretary Donald Rumsfeld—and those formed the basis of this book.
Ultimate responsibility must start on top. No matter what he told himself, President George W. Bush acted as a man who simply didn’t much care what happened to Afghanistan beyond how it influenced his political fortunes. One of Rumsfeld’s memos notes that in October 2002, Bush was asked whether he’d like to meet with Gen. Dan McNeil. The president asked who that was, and Rumsfeld answered that he was the man leading the war in Afghanistan. Bush responded that he didn’t need to see him. The president was presumably preoccupied with the Iraq war he would launch five months later. (That is, he was preoccupied with selling the war. He didn’t really think much about what the U.S. would be doing in that country either.)
The bureaucracy beneath the president comes across as a big dumb machine that was unclear about what it ultimately wanted, and whose different limbs sometimes worked at cross purposes. Many parts of that machine were extremely aware of how hopeless the mission was. As Gen. McNeil said, “There was no campaign plan. It just wasn’t there.” The British general who headed NATO forces in the country from 2006 to 2007 similarly remarked that “there was no coherent long-term strategy.” American military personnel would be sent to Afghanistan on more than one occasion over the two decades of conflict and, in Whitlock’s words, “the war made less sense each time they went back.”
To fight the Taliban, the U.S. empowered brutal warlords, who would often rape and terrorize the local populations. One of the most prominent of these, Abdul Rashid Dostum, was such a destructive force that one American diplomat offered to make him the executive producer of a movie just to get him out of the country. At the same time, the CIA was paying him $70,000 a month. Whitlock’s account includes an endless number of similar stories, in which one part of the American government was doing things that completely negated the actions of others. Anand Gopal’s No Good Men Among the Living documented this on the ground, showing how the same individual might be an ally to the CIA and an enemy to the military, and how ultimately this hurt the Afghan people more than anyone else.
As of 2006, Afghanistan had one successful industry: growing up to 90 percent of the world’s opium. Under pressure from the Drug Enforcement Agency (DEA) and members of Congress, and over the objections of the military, the Bush administration decided to start destroying those crops. This only fueled the insurgency, even as opium production increased. When the U.S. tried paying farmers not to grow opium, more had an incentive to start planting the crop—and many of them still sold the harvest on the open market anyway after taking American money. According to one official, “urging Karzai to mount an effective counternarcotics campaign was like asking an American president to halt all U.S. economic activity west of the Mississippi.””
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“Each part of the American war machine had its own mission, and was going to do what it did regardless of the facts on the ground. The DEA wanted to destroy opium, the human rights bureaucracy pushed women’s rights, and the military wanted to keep the war going. Nobody was there to force these disparate parts to work towards a common goal in a way that made sense. Theoretically, the president should have done so, but the American system clearly rewards political competence more than it does the ability to build stable democracies on the other side of the world. Often extremely self-aware, American officials were not as stupid or incompetent as they were self-interested cogs in a system filled with misaligned incentives.”
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“The transition from Barack Obama to Donald Trump shows how flexible the Pentagon could be to keep the war going. When working for the former law professor, the generals used more rhetoric about human rights and became experts at manipulating statistics to show how they supposedly were making people’s lives better. Under Trump, they realized that they could maintain his support for the war by talking of victory and killing bad guys. In both cases, the generals successfully resisted a president who was skeptical about their mission. The military seemed relatively indifferent to whether it was spending its time building girls’ schools or undertaking a more expansive bombing campaign, as long as it could keep the war going. Joe Biden watched the generals box in Obama, and he came into the White House determined not to be similarly manipulated.”