Category: Economy

Rampant Crime Takes Toll on America’s Small Businesses, New Survey Reveals

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Small Business

Nearly one-third of small business employers in January said that crime has raised everyday business costs, according to a Job Creators Network Foundation (JCNF) poll obtained exclusively by the Daily Caller News Foundation.

Around 31% of small businesses surveyed in January said that neighborhood crime has increased business costs through added expenses associated with extra security or stolen inventory, with employers in the western U.S. being the most likely to say they were affected at 35%, according to the poll. Businesses with $100,000 to $250,000 in revenue in a year were the most likely to say that neighborhood crime has increased business costs, with 53% saying yes, followed by businesses with less than $100,000 in revenue at 47%.

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Major American Financial Institutions Withdraw from Global Climate Investment Organization in Blow to Green Agenda

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Several of the largest asset managers in the U.S. are withdrawing from a major coalition of companies focused on advancing green investment strategies and climate-sensitive corporate management.

JPMorgan Asset Management (JMAM) and State Street Global Advisors will not be renewing membership in Climate Action 100+, a coalition of investors and asset managers with a combined $68 trillion under management that pushes corporations to reduce emissions and adopt climate risk disclosure practices, according to Financial Times. Climate Action 100+ and Ceres — a green shareholder activist group that co-founded the coalition — are currently under investigation by the House Judiciary Committee, which is alleging that the coalition’s advancement of progressive Environmental, Social and Corporate Governance (ESG) policies may constitute non-competitive activity in violation of U.S. antitrust law.

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Virginia Democrats Narrowly Pass $15 Minimum Wage Bill Despite Objection by Gov. Youngkin

Tom Pappert
15 Hour Minimum Wage

Democrats in the Virginia General Assembly narrowly passed legislation that will raise the commonwealth’s minimum wage to $15 per hour by 2026. Their votes came despite Governor Glenn Youngkin previously suggesting such legislation was unnecessary.

HB 1 previously passed the Virginia House of Delegates on February 2 in a partisan vote with 51 in favor and 49 against. In the Virginia Senate, the bill’s counterpart, SB 1, also passed along partisan lines, with 21 votes in favor and 19 votes against.

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Commentary: Biden Gaslights America on the Economy

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Biden Speaking

Joe Biden is gaslighting America on the economy. His administration is trying to oversell what has underperformed for several reasons: First, the economy is the one issue that affects most Americans most significantly. Second, Biden is doing worse on virtually every other issue. Finally, time is short: the economy is about to get worse, and the election is close. The administration’s strategy is to get Americans to believe what they hear and doubt what they see.

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More Investors Bet Inflation Is Here to Stay amid Disappointing Price Data

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Investor at Work

More investors are projecting a “no landing” scenario where inflation remains elevated but economic growth continues at its current levels following a disappointing inflation report on Tuesday, according to Reuters.

Nearly one out of five fund managers polled by Bank of America predicted a “no landing” scenario as the most likely outcome in the next year, with concerns about such a scenario being intensified by a poor inflation reading that sent U.S. markets into a frenzy on Tuesday, according to Reuters. Tuesday’s consumer price index (CPI) report showed inflation decelerated in January to 3.1% year-over-year from 3.4% in the preceding month, higher than expectations of 2.9%.

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Corporate America is Starting to Shy Away from Woke Business as Backlash Mounts

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Office Meeting

American companies are reversing the multiyear trend of hiring more employees in roles related to environmental, social and corporate governance (ESG) issues in an effort to increase profitability and address investor pushback, according to The Wall Street Journal.

U.S. companies shed 3,071 employees with positions related to ESG in December while only adding 2,897, continuing the trend that has been seen in half of the months in the last year of a net loss of ESG positions, according to the WSJ. The shift is in response to investors pulling their funds from companies heavily involved in ESG practices and placing their money in firms where they can get higher returns.

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Investors Scoop Up Commercial Real Estate

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Empty Storefronts in Baltimore

Investors flush with cash are looking to buy up commercial real estate properties that developers are putting on the market at deep discounts as companies struggle to pay debts, according to The Wall Street Journal.

Many investment firms are looking to buy up discounted real estate after stacking up cash during the COVID-19 pandemic, including Ares Management, which is buying up 3 million square feet of office space with offers to buy up assets related to $500 million in high-priority property debt, according to the WSJ. Commercial real estate is facing around $2.81 trillion in loans that are set to expire through 2028 at a time when the industry is struggling with low demand and huge debt costs from high interest rates.

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Virginia Democrat Stalls Arena Project After Gov. Youngkin Suggests Party Doesn’t Want ‘A Strong America’

Tom Pappert
Gov. Glenn Youngkin

Key Virginia Democrats pulled their support from the proposal by Governor Glenn Youngkin to build a new sports complex in Alexandria, Virginia for the Washington Wizards and Capitals, and did not place a bill to advance the initiative on the Senate schedule on Monday.

State Senator Louise Lucas (D-Portsmouth) first indicated she would use her power as the Senate Finance Chair to block the bill in a Saturday post to X, the platform formerly known as Twitter, in which she slammed Youngkin for suggesting Democrats do not want “a strong America” in his speech at the 28th Mock Convention at Washington and Lee University.

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New Law Has Credit Card Companies Tracking of California Gun Purchases with Merchant Codes

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Several large credit card companies are taking steps to track gun purchases in California with a new code, CBS News reported on Monday.

American Express, Visa and Mastercard are working on putting a merchant code in place for firearm and ammunition stores, CBS News reported. They are doing this to adhere to a California law that could enable banks to monitor certain gun purchases that are deemed suspect to forward to law enforcement agencies, which Second Amendment advocates have pushed back against.

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D.C. Mayor Muriel Bowser Reveals Efforts to Stop Gov. Youngkin’s Plan to Move Wizards, Capitals to Virginia

Tom Pappert

Washington, D.C. Mayor Muriel Bowser on Sunday authored an opinion column offering reasons why Monumental Sports and Entertainment should abandon its plans to move to Alexandria, Virginia, where Governor Glenn Youngkin is working with the General Assembly to build a new entertainment complex for the Washington Wizards and Capitals.

Bowser revealed the offer made to keep the sports teams in the district, stressed the city’s ownership position over the Capital One Arena property and outlined a series of concerns about the possible move.

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Report: Unfunded Cost of Retirement Benefits Reaches $1.14 Trillion

The Center Square
New Jersey Capitol

New Jersey, California, New York, Texas and Illinois face a hundred billion plus deficit when it comes to paying for the benefits other than pensions promised to state retirees.

The State of New Jersey’s unfunded liability for post-retirement benefits other than pensions in state health care plans reached $174.9 billion in 2022. That was the highest in the country, according to a report by the American Legislative Exchange Council. The report stated the nationwide costs of state-sponsored post-retirement benefits reached $1.14 trillion in 2022.

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Joe Biden Mocked Mercilessly for Mumbling, Bumbling ‘Shrinkflation’ Video Released on Super Bowl Sunday

Tom Pappert

President Joe Biden was mocked by conservatives on Sunday for a video he released ahead of the Super Bowl which derided “shrinkflation,” when manufacturers lower the size or quantity of items included for a given price without informing the consumer as a result of inflation, with pundits uniformly reminding the embattled president that his inflationary policies preceded the shrinkflation.

In the video, posted to the official government account for Biden on X, the platform formerly known as Twitter, the president appears to be sitting in the White House movie theater while various shots reveal he is surrounded by packages of junk food. Looking into the camera, Biden remarked, “if you’re like me you like to be surrounded by a snack or two while watching the big game.”

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China’s Real Estate Collapse Infecting Troubled American Sectors

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China Real Estate

The crumbling Chinese real estate sector is starting to put properties around the world on the market at deep discounts, threatening debt-laden American commercial developers and the U.S. banks holding the loans, according to Bloomberg.

In a bid to pay off massive debts, Chinese real estate developers are having to offload a huge number of properties onto the global market, depressing prices even further for a sector that already has had borrowing cost hikes, causing a loss of $1 trillion in office property values, according to Bloomberg. The drop in property values hits American commercial real estate particularly hard due to the huge amount of debt the sector holds and the dwindling U.S. demand, with banks that hold the debt also fearing they may lose out on their investment.

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Illegal Immigration ‘Surge’ Will Put ‘Downward Pressure’ on Wages for Years, CBO Says

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The Congressional Budget Office (CBO) projects that the ongoing surge in immigration, both legal and illegal, will put “downward pressure” on inflation-adjusted wages through 2034, according to a recently released report.

The downward effect on real wages will continue until 2027, at which point it will “partially reverse,” with immigration still expected to cause average real wages to be lower in 2034 than they otherwise would be, according to CBO. CBO did predict some positive impacts of immigration, as well, such as increased GDP growth and an expanded labor force.

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Mexico Dethrones China as America’s Main Source of Goods

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Car Plant in Mexico

Mexico supplied the United States with a higher volume of goods than China in 2023, according to annual data from the Bureau of Economic Analysis (BEA) published on Wednesday.

The U.S. imported about $427.2 billion worth of goods from China, whereas imports from Mexico reached around $475.6 billion, according to the data. Trade tensions between the U.S. and China persist as America continues to impose sanctions and tariffs while the two countries engage in a race to develop artificial intelligence technology.

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Georgia House Unanimously Passes Bill to Accelerate State Income Tax Cuts

Tom Pappert
Brian Kemp

The Georgia State House on Thursday voted unanimously to pass a bill that will accelerate the tax cuts previously passed by the Georgia General Assembly in 2022 alongside bills aimed at lowering property taxes and increasing child tax credits.

HB 1015 will reduce the Georgia state income tax rate to 5.39 percent, effective retroactively to January 1, amending previous legislation that established a flat income tax in Georgia that would be set at 5.49 percent in 2024. Active legislation mandates the income tax rate be decreased by 10 basis points annually until it reaches 4.99 percent, which could be achieved in 2028 if the bill becomes law.

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American Billionaires Bankrolled Activist Crusade Against Natural Gas Hubs Before Biden Signed Off on Approval Pause

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Natural Gas Power Plant

American billionaires bankrolled an activist campaign targeting liquefied natural gas (LNG) export terminals that influenced the White House’s decision to pause new and pending approvals for the projects, according to The Wall Street Journal.

The philanthropic organizations of the Rockefeller family and Democratic megadonor Michael Bloomberg cumulatively provided millions of dollars to activists who pressured Biden administration officials to crack down on LNG export hubs over the past several years, according to the WSJ. The activists ultimately got their way on Jan. 26, when the White House announced that the administration would pause new project approvals as the Department of Energy (DOE) widens the scope of its reviews to include climate impacts of LNG export terminals alongside considerations like national security and economic benefits.

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Big Corporations Try to Clean Up Their Act After Reports of Rampant Child Migrant Labor

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Farm Workers

U.S. companies are conducting full-scale audits and shifting “focus” after multiple reports revealed child immigrants were working in increasingly dangerous conditions, according to The New York Times.

In 2023, the Department of Labor opened an investigation into companies like Lucky Charms and Cheetos after reports of immigrant children working in dangerous conditions while thousands of children have crossed over into the U.S. in the last several years. Many other companies, including McDonald’s, Whole Foods, Costco and more, have announced that they are conducting full audits to prevent migrant children from working in dangerous conditions, according to the NYT.

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Virginia Democrats Kill Gov. Youngkin’s Tax Proposal Until at Least 2025

Tom Pappert
Lucas stuart

Democrats in the Virginia State Senate have beaten the attempt by Governor Glenn Youngkin and Virginia Republicans to cut the commonwealth’s income tax rates and reform Virginia’s sales tax until at least 2025.

SB 632, filed by State Senator Richard Stuart (R-Montross), was continued into 2025 on Tuesday in an overwhelming vote by the Senate Subcommittee on Finance and Appropriations, led by State Senator L. Louise Lucas (D-Portsmouth).

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Ford Lost Billions on EVs in 2023

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Ford EVs

Ford lost billions of dollars on its electric vehicle (EV) product lines last year, according to corporate documents.

The company lost $4.7 billion on EVs in 2023, a greater loss than the $4.5 billion the company expected it would lose in 2023 at mid-year, according to a summary of the company’s annual earnings. The company pointed to “an extremely competitive pricing environment” as a key reason for the losses.

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Commentary: Inflation Is the Reason Joe Biden Is So Unpopular

RealClearWire
Joe Biden

We’ve paid much attention to President Biden’s flagging job approval here, in part because it tends to be a strong predictor of how an election will turn out. Biden is marching into this election season as likely the least popular president to face the voters since Herbert Hoover. While he may yet be saved by the fact that he is facing off against Donald Trump, who brings his own baggage to the table, it’s an ominous indicator.

At the same time, the economy is running hot. Growth is over 3%, unemployment is under 4%, and inflation has fallen from its peak. So why the seeming paradox of an unpopular president in a time of strong economic growth, especially when the strength of the economy is itself a traditional predictor of presidential job approval?

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Billionaire Investor Scott Bessent: Stock Market ‘Looking Forward’ to Trump Victory in 2024

Kaitlin Housler
Trump Stock Market

Scott Bessent, billionaire investor and founder of Key Square Capital Management Fund, joined Wednesday’s edition of The Tennessee Star Report with Michael Patrick Leahy to discuss how the stock market’s rally coincides with former President Donald Trump being ahead in the 2024 presidential election polls.

In a letter to investors, which was recently leaked to Bloomberg, Bessent’s Key Square Capital Management Fund said it believes that equity markets are “in the midst of a ‘Trump Rally’ that will last as long as he remains ahead of Biden in the polls.”

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Chinese Solar Companies are Gearing Up to Cash in on Biden’s Signature Climate Bill

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Solar Panel Installation

Chinese solar manufacturers are building factories in the U.S. to reap American subsidies created by the Inflation Reduction Act (IRA), President Joe Biden’s signature climate bill, according to The Wall Street Journal.

Companies based in China are responsible for about 25% of the 80 gigawatts in new solar manufacturing capacity announced in the U.S. since the IRA became law in August 2022 and established robust tax credit programs to incentivize domestic green energy production, according to the WSJ. Assuming that the factory construction and expected outputs announced by these China-based solar companies stay on schedule, they could reap a combined $1.4 billion worth of value from IRA subsidies each year.

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Virginia Democrats Seek to Allow ‘Anti Rent Gouging’ Ordinances, Spend $100 Million in ‘Long-Term Direct Rental Assistance’

Tom Pappert
House for Rent

Democrats in the Virginia General Assembly seek to allow local cities and towns to enact “anti rent gouging” ordinances that would regulate what property owners can charge renters and when rent can be raised, and additionally seek to add $100 million to the budget to fund “long-term direct rental assistance” for 5,000 families via vouchers.

Delegate Nadarius Clark (D-Suffolk) introduced HB 721 in early January to allow “any locality” to adopt an “anti-rent gouging” ordinance that would force landlords to provide two months of written notice in the event of a rent increase, prevent landlords from raising rent more than once within a 12-month period, cap how much rent can be increased and allow communities “to establish an anti-rent gouging board” to create regulations “by which landlords may apply for and be granted exemptions” from the legislation.

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Commentary: To Rebuild Trust, U.S. Banks Have a Lot of Work to Do

RealClearWire

Trust in banks has plummeted.  From 2019-2022, the percentage of people who believe banks and financial institutions have a positive effect on the country fell among Republicans (from 63 to 38 percent) and Independents (by nine points). The problem grows every time a right-of-center group is debanked. Recognizing the problem, “rebuilding trust” is the theme of the World Economic Forum in Davos, Switzerland. The path to rebuild trust in finance is simple—keep politics out of banking.

In spite of an alleged priority of building trust, the largest banks are aligning themselves with radical United Nations (UN) climate initiatives linked to radical efforts to reduce Africa’s population and destroy Sri Lankan agriculture.

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Commentary: Labor Department’s New Rule Is Bad News for Independent Contractors

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Contract Worker

In what is sure to have significant implications for millions of American workers, specifically gig economy workers and contractors, the Department of Labor (DOL) issued its long-awaited final worker classification rule in January.

The new rule revises the process to determine whether a worker is an employee or independent contractor under the Fair Labor Standards Act. The government argues the rule is necessary to ensure that all workers are provided fair wages and overtime since independent contractors (people who work for themselves or a business on a contractual basis) are not given the same benefits, such as tax withholdings and paid time off, as traditional employees. However, this argument appears designed to mask the government’s true intention, which is to reduce the number of independent contractors in the country.

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Ohio U.S. Rep Jim Jordan Debuts ‘Amazon Files’ Showcasing Federal Censorship Efforts Against Books

Just the News
Rep. Jim Jordan

The House Judiciary Committee and the Weaponization subpanel on Monday revealed internal documents secured via the subpoena of Amazon, highlighting the Biden administration’s efforts to address “propaganda” and “misinformation” in books the online retailer sold.

Judiciary Chairman Jim Jordan outlined the effort in an X thread reminiscent of the “Twitter Files” reports that addressed federal involvement with that platform.

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As Support for Nuclear Power Grows Worldwide, Regulatory Costs Hinder Development in the U.S.

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As the world looks for ways to decarbonize energy while keeping energy costs down, nuclear power is getting a second look. But the costs and construction times to build nuclear reactors in the United States raises the risk America may get left behind.

Concerns about the impacts of climate change drove some nations, such as Germany, to pursue a transition from fossil fuels using primarily wind and solar. Researchers such as Mark Z. Jacobson produced studies that claimed the U.S. could achieve 100% of its energy needs from wind, solar and hydroelectric without any fossil fuels or nuclear.

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Government Jobs Soared to New Record for Another Month as Federal Debt Piles Up

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Office Meeting

The U.S. set a new record in January for the total number of Americans employed by the government, according to data from the Bureau of Labor Statistics (BLS).

The government added 36,000 new employees in January, with 11,000 in the federal government and 19,000 in local government, totaling 23,091,000, according to the BLS. January’s total outdid the previous record of 23,055,000 that was set in December, marking the third month in a row with a new record.

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Virginia House Passes Bills to Ban Firearm Sales, Increase Minimum Wage

Tom Pappert

The Virginia House of Democrats successfully passed HB 1 and HB 2, which would see the minimum wage in the commonwealth raised to $15 per hour by 2026 and make the sale or transfer of “assault firearms and certain ammunition feeding devices” a misdemeanor criminal offense.

Filed by Delegate  Jeion Ward (D-Hampton), HB 1 would see Virginia’s current minimum wage of $12 per hour increased to $13.50 per hour in 2025 before increasing to $15 per hour in 2026. It passed through committee with partisan votes, and narrowly passed in the House of Delegates with 51 votes in favor and 49 votes against.

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Full-Time Work Is Being Replaced by Part-Time Jobs as Americans and Businesses Struggle

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Uber Driver

Since June 2023, Americans have been increasingly employed in part-time positions, with a subsequent decline in full-time work, according to data from the Bureau of Labor Statistics (BLS).

The number of Americans working part-time in January grew by 96,000 compared to the previous month, while full-time employment sank by 63,000, according to the BLS. The change in the types of employment follows a trend toward part-time employment that has been increasingly exacerbated since June 2023.

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Job Growth Exceeds Expectations Despite Mass Layoffs

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Office Co-Workers

The U.S. added 353,000 nonfarm payroll jobs in January as the unemployment rate remained at 3.7%, according to Bureau of Labor Statistics (BLS) data released Friday.

Economists anticipated that the country would add 180,000 jobs in January compared to the 216,000 that were added in December and that the unemployment rate would tick up to 3.8% from 3.7%, according to Reuters. Despite the job gains, American employers cut 82,307 positions in January, a 136% jump from the previous month, amid a wider trend of layoffs as factors like high inflation continue to hurt business conditions.

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Job Cuts Soar as Employers Look for Ways to Lower Costs

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Frustrated Worker

The number of job cuts by American employers surged in January as companies looked to lower operating costs to adjust to harsh economic conditions, according to outplacement firm Challenger, Gray and Christmas, Inc.

The number of positions cut by employers in January jumped 136%, with 82,307 positions cut compared to the 34,817 cut in December, according to a report from Challenger, Gray and Christmas. The job cuts come amid a wider U.S. layoff trend due to broader economic struggles, like inflation and adjustments from automation.

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Gov. Youngkin Announces Virginia Permit Transparency Website, Expanding Program Hailed as ‘Model for Other States’

Tom Pappert
Glenn Youngkin

Governor Glenn Youngkin announced on Wednesday the Virginia Permit Transparency (VPT) website, expanding a program Forbes hailed as “a model for other states” to include three Virginia agencies with more to follow.

The governor’s office explained in a press release that the VPT provides the public with “a centralized platform” to track daily status of their permit application.

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Fed Continues Rate Pause with Cuts on the Horizon

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The Federal Reserve announced on Wednesday that it would not change its benchmark federal funds rate, but does project rate cuts later this year.

The Fed’s decision not to raise rates keeps the target range between 5.25% and 5.50%, the highest level since 2001, marking the fourth meeting in a row where the Fed chose to not adjust the rate, according to an announcement from the Federal Reserve following a meeting by the Federal Open Market Committee (FOMC). Investor projections for upcoming FOMC meetings are increasingly predicting a rate cut, with the market calculating around 58% odds that the rate will be reduced in March as of Jan. 31, according to CME Group.

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Top U.S. Automaker Reports $1.7 Billion Loss on Electric Vehicles in Fourth Quarter

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Marry Barra

General Motors reported a $1.7 billion loss on Tuesday in its fourth quarter earnings call in the production and sale of its electric vehicle line, despite having positive net income growth in the quarter.

The automaker’s net income for the fourth quarter rose 5.2% year-over-year to $2.1 billion despite a reduction in revenue over that time frame of 0.3%, according to GM’s fourth quarter earnings report. The losses on EVs accompany a $1.1 billion total loss from a six-week-long strike by the United Auto Workers that partially halted operations, with the union gaining a new work contract that could raise labor costs in the coming year, according to the company’s investor earnings call.

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Health Insurance Costs in Virginia Rising Despite Low Levels of Healthcare Spending, Study Finds

Kaitlin Housler

The Virginia Hospital & Healthcare Association (VHHA) is bringing awareness to a new study showing health insurance premiums and deductible costs among Virginians are rising despite the state’s overall healthcare spending remaining below national levels.

“When it comes to health care spending, Virginia is in the enviable position of having expenditure rates that remain well below national levels. The same cannot be said for health insurance costs, unfortunately,” the VHHA said in a press release. “On the contrary, the amount that individuals and families across the Commonwealth spend on annual health insurance premiums and out-of-pocket deductibles continues to rise sharply year-over-year.”

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Tennessee Ag Commissioner Charlie Hatcher Did Not Sign Letter by Officials in 12 States Accusing Banks of Pushing ESG on Farmers

Tom Pappert

The Tennessee Agriculture Commissioner, Dr. Charlie Hatcher, was not among the top agriculture officials from 12 different states who signed a letter on Monday that warned the heads of six elite banks that their “Net-Zero Banking Alliance” (NZBA) will force economically destructive Environmental, Social, Governance (ESG) policies on American farmers.

The Tennessee Star contacted Hatcher’s office by phone and email to ask why he was not among the agriculture officials behind the letter, and to ascertain whether he is concerned by the claim that banks are foisting ESG policies on farmers, but did not receive an immediate response.

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