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      Start me up: ‘car guy’ Joe Biden accelerates push to turn America electric

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      On a hot, sunny day in Michigan, Joe Biden zoomed around in a new electric version of the Ford F150, one of the automaker’s most famous vehicles.“This sucker’s quick,” Biden said as he drove up to reporters at Ford’s Rouge Electric Vehicle Center last month.Biden, a self-proclaimed American “car guy”, was there to tout electric vehicles, a key component of his administration’s trillion-dollar-plus infrastructure proposal.“The future of the auto industry is electric. There’s no turning back,” Biden said. “The question is whether we will lead or we will fall behind in the race to the future.”The proposed $174bn investment in electric vehicles represents the biggest ever White House push from fossil-fuel based vehicles and toward battery-powered cars. The Biden administration has made environmentalism and sustainability a key pillar to its job creation efforts, and the president wants to dramatically increase the number of electric vehicles on the road and the infrastructure for manufacturing them.This, Biden says, would create a wave of new green energy jobs and also help to fight climate change.At the beginning of the year, electric vehicles made up less than 5% of automobile sales in the US. But Biden’s proposal aims to dramatically push the American auto industry toward electric vehicles, mainly through incentives and tax credits. It would use funds to transition the fleet of federal agency cars such as those used by the US Postal Service, and the plan includes $45bn towards increasing the number of electric school buses and transit buses.It would also set up a national network of charging stations across the country, the current lack of which is seen as one of the bigger advantages combustion engine cars still have over electric vehicles. There are are only 41,400 electric vehicle charging stations (including fast-charging stations) in the United States, according to the Department of Energy. There are omore than 130,000 gasoline stations.It’s not clear, however, how those charging stations would be distributed – and what portion of them would go to poorer parts of America.But the plan aims to change the supply chain so the US depends less on other countries for batteries and other car parts. The administration wants to become less dependent on foreign countries for manufacturing electric vehicles and the parts that go into them.“It’s a systemic transition,” said John Paul MacDuffie, a University of Pennsylvania professor of management and vehicle expert. “Often if you just tackle one narrow piece of it you don’t make progress, because you bump into constraints in the system. So I think the ambition to be systemic is really good, and probably essential, to make progress.”As Biden drove around the Ford campus, hundreds of miles away Republicans in Congress were planning to gut the electric vehicles proposals in his American Jobs Plan.Negotiations over the entire infrastructure bill are continuing, but the last counter-offer made by Republicans slashed spending on Biden’s plan by about $170bn. It’s not clear what exactly the remaining $4bn would be spent on if the Republican proposal went into effect. A factsheet distributed by the office of Senator Shelley Moore Capito of West Virginia, the lead negotiator, did not specify.In their criticisms, Republicans have cited the price tag on the electric vehicles provision. They say the government should not pour so much money into electric vehicles, and that doing so would end up killing jobs in other alternative vehicle areas, like ethanol.“For a person like me, from Iowa, if you have all electric cars, there’s going to be 43,000 people making ethanol and biodiesel that won’t be employed,” Senator Chuck Grassley of Iowa told E&E News.Senator Roger Marshall of Kansas, another Republican who opposes government spending on electric vehicles, told the Guardian electric vehicles are prohibitively expensive.“My concern about an all-electric car policy is that it’s truly a social injustice. These electric cars are very expensive. Only the wealthy can afford them, and the wealthy benefit from the tax credits,” Marshall said.“I think we’re getting policy way ahead of technology. Certainly way ahead from a price point … But right now the big picture scares me. I think we’d have to increase our electric grid by 60%. That would take, theoretically 20, 40, 60 years to double or to increase the electric grid by 60%.”The price of electric vehicles varies widely. The Mini Cooper SE starts at about $30,000. The cheapest Tesla, the Model S, starts at about $40,000. More expensive models can run as high as $150,000. The price of electric vehicles is likely to drop if and when they become more popular and the technology improves. And the cost of batteries is dropping – rapidly. It’s going so fast that there’s evidence to expect most cars to be battery-powered by 2035.Marshall also said the environmental cost of battery-powered cars is high.“I think we have to look at the environmental footprint in looking what goes into a battery. The making of the battery,” Marshall said. “And eventually the disposal of these batteries.”Even electric vehicle advocates concede that the environmental impact of the raw materials used for electric batteries are not perfect. And there are also human rights concerns about mining those materials.But in Michigan, state senator Mallory McMorrow, a Democrat, said the technology around batteries and electric vehicles was getting better and more environmentally friendly.“I think that there’s a fair criticism in terms of the environmental impact of batteries from the mining perspective. But I think, like everything else, that’s improving,” McMorrow said.Even accounting for battery mining, petrol and diesel cars still have a far more negative impact on the environment than electric vehicles.Right now the American Jobs Plan is still a framework, and the gulf between Republicans and Democrats is vast. It’s unlikely that if a compromise is reached on the entire proposal, Biden will get all the funding he’s looking for. But it’s also unlikely that Republicans will have shrunk that funding to the minuscule amount they have offered so far.And around the country, lawmakers are making moves to nudge the country further toward electric vehicles. Governor Kate Brown of Oregon recently signed a bill to expand electric vehicle infrastructure in her state. In Illinois, Governor JB Pritzker has set a goal of 750,000 electric vehicles by 2030.McMorrow in Michigan has helped craft a proposal to encourage electric vehicles in the state.Congressman Andy Levin of Michigan and Alexandria Ocasio-Cortez of New York have introduced legislation that aims to set up a nationwide network of charging stations over the next five years. Senator Chuck Schumer of New York, the Senate majority leader, also introduced legislation in 2019 that would help set up a network of charging stations also. Biden added that proposal to his American Jobs Plan in March.Even with a huge investment in electric vehicles, transitioning to where combustion cars are the minority on the road and electric vehicles are the majority will take time.“If you don’t start at some point making some move for the US to have a piece of the supply chain you’ll never be ready for the EV transition – and it will take a long time,” MacDuffie said. More

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      in UK Politics

      Boris’s boat is nothing more than another hopeless vanity project

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      Once, I was fortunate enough to be invited aboard the Leopard, the spectacular racing yacht then sponsored by the City firm ICAP.As we cruised in the Solent, I marvelled at the vessel. Below deck it had powerful computers that would tilt the keel at the optimum angle for speed. It was applying the very latest technology.I asked the firm’s founder, Michael Spencer, why he did it. Without hesitation, he pointed to the giant sail, bearing the name “ICAP”. That, he said, “is one huge advertising hoarding. We can take it anywhere and anchor it any harbour. No one can miss it.” He added that when its picture appeared in the press – as it often did because Leopard was winning races and breaking records – that was also more brand promotion. More

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      in US Politics

      US adds 559,000 jobs in May as fears of hiring slowdown fade

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      The US added 559,000 jobs in May as the coronavirus pandemic receded, shaking off fears of a substantial slowdown in hiring after April’s disappointing monthly report.The Bureau of Labor Statistics said on Friday that the unemployment rate had fallen to 5.8% from 6.1% in April, still significantly higher than the 3.8% unemployment rate recorded in February 2020 before Covid 19 hit the US but less than half its 14.8% peak in April last year.The news comes one month after the labor department shocked economists by announcing the US had added just 266,000 new jobs in April – far below the 1m gain that had been expected. May’s gains were less than economists had predicted and with the level of employment still 7.6m jobs below its pre-pandemic peak, the Capital Economics group calculates it would take more than 12 months at the current pace to fully eradicate the shortfall.April’s report led to sparring between the Biden administration and Republicans who claimed higher levels of unemployment benefits were keeping people from returning to work and this month’s lukewarm report is unlikely to end that row.But there are signs of a strong rebound across the US economy. Worker filings for unemployment benefits have dropped by 35% since late April and fell to a pandemic low of 385,000 last week, the labor department said on Thursday.Private sector employment increased by 978,000 jobs in May, according to ADP, the US’s largest payroll supplier. The figure was the strongest gain since the early days of the recovery. “Companies of all sizes experienced an uptick in job growth, reflecting the improving nature of the pandemic and economy,” said Nela Richardson, chief economist at ADP.More than half of adult Americans are now fully vaccinated and business is booming in many sectors as state and local governments ease restrictions. But employers across the country are reporting worker shortages as the recovery strengthens. The US Chamber of Commerce said this week that labor shortages now represent “the most critical and widespread challenge” to US businesses. Nearly half of small-business owners had unfilled job openings in May, according to a survey from the National Federation of Independent Business.Alongside evidence of strong growth, some economists are warning about the return of inflation. Prices on a broad range of goods from lumber to chicken have soared as demand has outstripped supply. In April a key inflation indicator – the personal consumption expenditures (PCE) price index – rose to 3.1% compared to last year, its highest level in 13 years. More

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      A global agreement on taxing corporations is in sight – let’s make sure it happens

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      For more than four years, France, Germany, Italy and Spain have been working together to create an international tax system fit for the 21st century. It is a saga of many twists and turns. Now it’s time to come to an agreement. Introducing this fairer and more efficient international tax system was already a priority before the current economic crisis, and it will be all the more necessary coming out of it.Why? First, because the crisis was a boon to big tech companies, which raked in profit at levels not seen in any other sector of the economy. So how is it that the most profitable companies do not pay a fair share of tax? Just because their business is online doesn’t mean they should not pay taxes in the countries where they operate and from which their profits derive. Physical presence has been the historical basis of our taxation system. This basis has to evolve with our economies gradually shifting online. Like any other company, they should pay their fair share to fund the public good, at a level commensurate with their success.Second, because the crisis has exacerbated inequalities. It is urgent to put in place an international tax system that is efficient and fair. Currently, multinationals are able to avoid corporate taxes by shifting profits offshore. That’s not something the public will continue to accept. Fiscal dumping cannot be an option for Europe, nor can it be for the rest of the world. It would only lead to a further decline in corporate income tax revenues, wider inequalities and an inability to fund vital public services.Third, because we need to re-establish an international consensus on major global issues. The Organisation for Economic Co-operation and Development, with the support of our countries, has been doing exceptional work in the area of international taxation for many years. The OECD has put forward fair and balanced proposals on both subjects: the taxation of the profit of the most profitable multinationals, notably digital giants (Pillar 1), and the minimal taxation (Pillar 2). We can build on this work. For the first time in decades, we have an opportunity to reach a historic agreement on a new international tax system that would involve every country in the world. Such a multilateral agreement would signal a commitment to working together on major global issues.With the new Biden administration, there is no longer the threat of a veto hanging over this new system. The new US proposal on minimal taxation is an important step in the direction of the proposal initially floated by our countries and taken over by the OECD. The commitment to a minimum effective tax rate of at least 15% is a promising start. We therefore commit to defining a common position on a new international tax system at the G7 finance ministers meeting in London today. We are confident it will create the momentum needed to reach a global agreement at the G20 in Venice in July. It is within our reach. Let’s make sure it happens. We owe it to our citizens.
      Nadia Calviño, second deputy prime minister of Spain, is the country’s economy minister. Daniele Franco is minister of economy and finance in Italy. Bruno Le Maire is France’s minister of economy, finance and recovery. Olaf Scholz is German vice-chancellor and minister of finance More

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      in US Politics

      US sets – and quickly suspends – tariffs on UK and others over digital taxes

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      The Biden administration announced 25% tariffs on over $2bn worth of imports from the UK and five other countries on Wednesday over their taxes on US technology companies, but immediately suspended the duties to allow time for negotiations to continue.The US trade representative, Katherine Tai, said the threatened tariffs on goods from Britain, Italy, Spain, Turkey, India and Austria had been agreed after an investigation concluded that their digital taxes discriminated against US companies.The move underscores the US threat of retaliation, first made under the Trump administration, over digital-services taxes on US-based companies including Alphabet, Apple and Facebook, that has sparked an international row over which countries should have taxing rights over some of the world’s largest companies.The US trade representative’s (USTR) office published lists of imports that would face tariffs if international tax negotiations fail to reach a solution. Goods from Britain worth $887m, including clothing, overcoats, footwear and cosmetics, would face a 25% charge as would about $386m worth of goods from Italy, including clothing, handbags and optical lenses. USTR said it would impose tariffs on goods worth $323m from Spain, $310m from Turkey, $118m from India and $65m from Austria.The potential tariffs, based on 2019 import data, aim to equal the amount of digital taxes that would be collected from US firms, a USTR official said. The news came as finance leaders from G7 countries prepare to meet in London on Friday and Saturday to discuss the state of tax negotiations, including taxation of large technology companies and a US proposal for a global minimum corporate tax. US tariffs threatened against France over its digital tax were suspended in January to allow time for negotiations.Tai said she was focused on “finding a multilateral solution” to digital taxes and other international tax issues.“Today’s actions provide time for those negotiations to continue to make progress while maintaining the option of imposing tariffs under Section 301 if warranted in the future,” Tai said.Tai faced a Wednesday deadline to announce the tariff action, or the statutory authority of the trade investigations would have lapsed.A British government spokesperson said the UK tax was aimed at ensuring tech firms pay their fair share of tax and was temporary. “Our digital services tax is reasonable, proportionate and non-discriminatory,” the spokesperson said. “It’s also temporary and we’re working positively with international partners to find a global solution to this problem.”Reuters contributed to this article More

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      in UK Politics

      Pro-Brexit Wetherspoons boss calls for more EU migration to staff bars

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      The pro-Brexit boss of pub chain JD Wetherspoon has urged the government to increase migration from the EU to deal with a shortage of workers in the hospitality sector.Tim Martin, who campaigned for a hard Brexit, including leaving the single market and the end of freedom of movement which came with it, urged Boris Johnson to consider a new, “reasonably liberal” visa scheme to encourage foreign workers to relocate to the UK.He suggested countries close to Britain could be given preferential treatment – seemingly at odds with the argument laid out by Brexiteers that leaving the EU would allow the UK to treat all nationalities equally. Mr Martin told The Daily Telegraph: “The UK has a low birth rate. A reasonably liberal immigration system controlled by those we have elected, as distinct from the EU system, would be a plus for the economy and the country. > > To sign up to our free daily politics newsletters click here“America, Australia and Singapore have benefitted for many decades from this approach. Immigration combined with democracy works.”The Wetherspoon chairman had previously warned that remaining in the EU would lead to “significant adverse economic consequences” and labelled those warning of the economic damage that cutting ties with our biggest and closest trading partner would bring as “doomsters”.‘Question Time’ member accuses Tim Martin of supporting Brexit to ‘line his own pockets’Arguing for a no-deal Brexit in 2019, Mr Martin said: “I have argued that the UK – and therefore Wetherspoon – will benefit from a free-trade approach, by avoiding a ‘deal’ which involves the payment of £39bn to the EU.” He also cut the price of some drinks by 20p in a stunt to show how he believed Brexit would lower his costs.However, as a result of Brexit and the pandemic, much of the UK’s hospitality industry is now struggling to fill thousands of vacant roles.Mr Martin’s comments triggered an angry response from many of those who had argued against Brexit. Campaigner Femi Oluwole wrote: “I really hope Tim Martin never runs into Tim Martin. He’s gonna be so angry!”Former Plaid Cymru leader Leanne Wood said: “I remember disagreeing with Tim Martin on @bbcquestiontime about this, back in 2016. He was arguing the opposite position to this then. Too late mate.”The number of job postings in the bar, restaurant and pub sector has shot up by 46 per cent since indoor trading was allowed to resume in England on 17 May, according to the consulting services firm RSM.Michael Kill, chief executive of the Night Time Industries Association (NTIA), said both Brexit and the loss of staff during the long pandemic had left many firms struggling with their reopening plans.“There are severe staffing shortages,” said Mr Kill. “A lot of workers are from Europe, so Brexit has had an impact, and there is the furlough hangover, where a lot of people have now got other jobs to keep themselves going and are not coming back.”A report released at the end of April by Fitch Ratings, one of the Big Three credit rating agencies, said staff shortages were largely down to “EU nationals who have left the country following Brexit and employees who have switched sectors during the pandemic”.The agency said it also expected hospitality companies such as pubs, hotels and restaurants “to incur the additional costs of hiring and training new employees … putting pressure on their margins”.“Before Brexit, EU nationals made up between 12 per cent and 24 per cent of the total workforce in the UK hospitality industry, according to KPMG,” the report said. “Many of them left the country during the lockdowns. EU nationals now have to obtain a visa in order to enter the country to work, which entails securing a job offer that meets minimum salary levels, among other requirements.”The Fitch Ratings report added that hospitality businesses “may face increased salary requirements, for example in order to attract EU nationals, particularly during high summer and early autumn seasons, or to hire skilled employees to train workers with no prior experience.” More

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      in US Politics

      White House contacts Russia after hack of world’s largest meatpacking company

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      A ransomware attack against the world’s largest meatpacking company that has disrupted meat production in North America and Australia originated from a criminal organization probably based in Russia, the White House was informed on Tuesday.The attack on Brazil’s JBS caused its Australian operations to shut down on Monday and has stopped livestock slaughter at its plants in several US states.The ransomware attack follows one last month on Colonial Pipeline, the largest fuel pipeline in the United States, that crippled fuel delivery for several days in the US south-east.The White House spokeswoman Karine Jean-Pierre said JBS had given details of the hack to the White House, that the United States had contacted Russia’s government about the matter and that the FBI was investigating.“The White House has offered assistance to JBS and our team at the Department of Agriculture have spoken to their leadership several times in the last day,” Jean-Pierre said.“JBS notified the administration that the ransom demand came from a criminal organization likely based in Russia. The White House is engaging directly with the Russian government on this matter and delivering the message that responsible states do not harbor ransomware criminals,” Jean-Pierre added.If the outages continue, US consumers could see higher meat prices during summer grilling season and meat exports could be disrupted at a time of strong demand from China.JBS said it suspended all affected systems and notified authorities. It said its backup servers were not affected.“On Sunday, May 30, JBS USA determined that it was the target of an organised cybersecurity attack, affecting some of the servers supporting its North American and Australian IT systems,” the company said in a Monday statement.“Resolution of the incident will take time, which may delay certain transactions with customers and suppliers,” the company’s statement said.The company, which has its North American operations headquartered in Greeley, Colorado, controls about 20% of the slaughtering capacity for US cattle and hogs, according to industry estimates.Two kill and fabrication shifts were canceled at JBS’s beef plant in Greeley due to the cyber-attack, representatives of the United Food and Commercial Workers International Union Local 7 said in an email. JBS Beef in Cactus, Texas, also said on Facebook it would not run on Tuesday – updating an earlier post that had said the plant would run as normal.JBS Canada said in a Facebook post that shifts had been canceled at its plant in Brooks, Alberta, on Monday and one shift so far had been canceled on Tuesday.A representative in São Paulo said the company’s Brazilian operations were not affected. More

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      in US Politics

      Biden proposes $6tn budget to boost infrastructure, education and climate

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      Joe Biden set out a $6tn budget proposal on Friday that, if passed, would fund a sweeping overhaul of US infrastructure and pour money into education and climate action, while driving government spending to its highest sustained levels since the second world war.The president’s first budget is largely a political document, and faces months of difficult negotiations in Congress where Republicans are already balking at the scale of his spending plans. But it clearly sets out Biden’s ambition to remake the US after the coronavirus pandemic.“Now is the time to build on the foundation that we’ve laid, to make bold investments in our families, in our communities, in our nation,” Biden told a crowd in Cleveland on Thursday. “We know from history that these kinds of investments raise both the floor and the ceiling of an economy for everybody.”Republicans immediately attacked the plan. Senator Mitch McConnell said it would “drown American families in debt, deficits, and inflation.”The White House has set out a two-part plan to overhaul the US economy by upgrading its infrastructure and expanding its social safety net. The costs of the programmes would lead to the US running annual deficits of over $1.3tn over the next decade and debt rising to 117% of the value of economic output by 2031.Alongside rebuilding bridges, roads, airports and other infrastructure, Biden has proposed a $13bn federal investment to roll out broadband internet access. Democrats are also pushing to expand and reform the US’s social programmes with government money for paid family leave and universal pre-school.In part the plan would be funded by tax increases on corporations and the very wealthy. Biden has already proposed increasing US corporation taxes to 28% from 21%, a plan opposed by all Republicans and some Democrats.Biden has said he is willing to negotiate with his political opponents on the shape and size of his proposals, but he will struggle to find Republican support for his agenda. No Republicans voted for his $1.9tn Covid stimulus bill and he has already been forced to scale back his infrastructure bill to $1.7tn from the originally proposed $2.2tn effort.The economy has improved markedly since Biden took office and the pandemic began to wane in the US. More than half of the country is now fully vaccinated and hiring has picked up as the economy has reopened.But the Biden administration believes the pandemic highlighted many structural issues with the US economy that need to be addressed by federal spending.Unemployment rates for Black and Latino Americans remain disproportionately high and women were hit particularly hard by the pandemic recession – in many cases because a lack of affordable childcare prevented them from working.A huge increase in government spending has fueled concerns about rising inflation. Prices on goods including lumber, cars and chicken have soared in recent months, and the commerce department said on Friday that the personal consumption expenditures index, a key measure of inflation, increased by 3.1% in April from a year ago, its highest level since 1992.On Thursday the treasury secretary, Janet Yellen, said the budget would push US debt above the size of the US economy, but said the proposed plan was responsible and would not contribute to inflationary pressures.“I believe it is a fiscally responsible program,” Yellen told a House appropriations subcommittee. More