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      For Macron, France’s Troubled Industries Hit Home

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      President Emmanuel Macron vowed an economic revival, but as he seeks re-election, a Potemkin factory in the town where he was raised shows just how hard that can be.AMIENS, France — During the last presidential campaign, the troubled Whirlpool factory in the northern city of Amiens became the setting for frantic, dueling appeals for support by Emmanuel Macron and his far-right rival, Marine Le Pen.Mr. Macron promised to save the plant — which happens to be in his hometown — and once he was elected, his government poured millions in subsidies toward the factory’s reinvention, as a showpiece of his commitment to reviving French industry.As Mr. Macron seeks re-election, he and Ms. Le Pen are preparing to square off once again as the front-runners before the first round of voting in presidential elections on Sunday. But the fate of the plant has proved much the opposite of what Mr. Macron had hoped for.Today, the plant is an example of the difficulty of rehabilitating ailing French industries and of the president’s challenge in winning the confidence of French workers, who have been gravitating for years to the far right.The mammoth plant in Amiens, where weeds have pushed through asphalt and the cafeteria’s menu is frozen on sausage fricassee, is deserted and lifeless, except for three last Whirlpool workers who spend their days huddling around the coffee machines in a few small rooms.The plant’s new operator was convicted in February of misuse of funds, after a year of taking money from the government and Whirlpool and doing precious little with it. Workers say they spent idle days as next to nothing rolled off the assembly line. Instead, they kept busy killing time, taking extended cigarette breaks or lying inside their cars fidgeting on their smartphones.Frédéric Chantrelle, left, one of the last three workers still employed at the plant in Amiens, and Christophe Beaugrand, a former employee.Dmitry Kostyukov for The New York Times“Two or three times, when someone important visited, we had to pretend to work or hide,” recalled Mariano Munoz, 49, who was in charge of janitorial services. “The welders welded all sorts of things and hammered away. One or two tinkered with a car. Me, I’d take the street cleaner and I’d sweep the entire parking lot.”Mr. Macron was elected as a change agent five years ago, with plans to disrupt the heavily unionized industrial sector that had stagnated as owners feared the rising cost of French workers who were guaranteed years of ample benefits and were notoriously difficult to fire. For years, unemployment hovered chronically at 8 percent or more as the industrial sector atrophied.Initially, Mr. Macron attempted to overhaul France’s economy by pushing through business-friendly changes, like cutting taxes, especially for the wealthy. In his first years as president, he took on some of France’s toughest unions, provoking the biggest strikes the country had seen in years as he revamped France’s voluminous labor code, making it easier to hire and fire workers.Learn More About France’s Presidential ElectionThe run-up to the first round of the election has been dominated by issues such as security, immigration and national identity.Suddenly Wide Open: An election that had seemed almost assured to return President Emmanuel Macron to power now appears to be anything but certain.On Stage: As the vote approaches, theaters and comedy venues are tackling the campaign with one message: Don’t trust politicians.Behind the Scene: In France, where political finance laws are strict, control over the media has provided an avenue for billionaires to influence the election.A Political Bellwether: Auxerre has backed the winner in the presidential race for 40 years. This time, many residents see little to vote for.Private Consultants: A report showing that firms like McKinsey earned large sums of money to do work for his government has put President Emmannuel Macron on the defensive.But even as the overall economy has bounced back strongly from the pandemic, Mr. Macron’s efforts to reindustrialize France have proved decidedly mixed, economists say, as evidenced by the nation’s trade deficit of 84.7 billion euros, about $93 billion, last year — a record — as well as the plant in Amiens, which had made tumble dryers for Whirlpool and did not survive despite nearly €10 million in subsidies.Amiens North, an area inhabited by many descendants of North Africans recruited to work in factories in the 1960s and ’70s.Dmitry Kostyukov for The New York TimesFor Mr. Macron, the plant’s long, agonizing death has complicated every trip back to his hometown, about 80 miles north of Paris. It reinforced the impression of Mr. Macron, a former investment banker, as the president of the rich, someone cut off from ordinary French people — like the nearly 300 workers who lost their jobs when the plant finally did close in 2018.Many of the laid off workers went on to join the Yellow Vest movement, whose ranks were filled with working-class French struggling under high taxes and a lack of earning power, ushering in the biggest political crisis of Mr. Macron’s presidency.Burned by the Yellow Vest protests, Mr. Macron’s government spent massively to offset the economic shock of the pandemic, and unemployment is now at its lowest in a decade. Still, it is service-sector jobs that have continued to increase, while industrial employment declines.Thomas Grjebine, an economist at CEPII, a research center in Paris, said that the fate of the Amiens plant was “symptomatic” of the difficulties of reviving the industrial sector. “In fact, the government is somewhat powerless before the closings of plants,” Mr. Grjebine said. “But many promises are made during campaigns.”During Mr. Macron’s campaign for the presidency in 2017, 11 days before the final vote, Mr. Macron met with union leaders in town, while Ms. Le Pen paid a surprise visit to the plant’s parking lot and was greeted warmly by striking employees — forcing a reluctant Mr. Macron to follow.Patrice Sinoquet, another of the last remaining workers at the plant, showed a photograph of Mr. Macron visiting the factory in 2019.Dmitry Kostyukov for The New York TimesHeckled and jostled by the hostile crowd, Mr. Macron tried to catch up with Ms. Le Pen, whose party, then called the National Front, had won the department that includes Amiens in the first round of voting that year.“You think it doesn’t hurt me in the gut that people vote for the National Front on my soil?” Mr. Macron said to the crowd. Later, he promised a “real Marshall Plan for the reindustrialization of our economically lost territories.”Half a year after his election victory, that promise seemed in sight. A prominent local businessman, Nicolas Decayeux, was selected to take over the plant with a project to manufacture refrigerated lockers and small vehicles. He took on 162 of the 282 laid-off Whirlpool workers and received €2.6 million in subsidies from the government and €7.4 million from Whirlpool.During a celebratory visit to the plant, Mr. Macron was accompanied by Mr. Decayeux. In a follow-up letter to Mr. Decayeux, the president wrote that the businessman’s “beautiful entrepreneurial project” would “contribute to our industrial recovery.”“I really had stars in my eyes because here is a young president who wants to reform France,” recalled Mr. Decayeux, who named his company WN.It was a rare piece of good news for Amiens, a picturesque town of more than 130,000 that straddles the Somme River.Like much of northern France, it had been hit by deindustrialization for two generations as successive national governments considered a shift toward a consumer-driven economy a sign of modernization, witnessed in the Amazon warehouses that have opened in Amiens and elsewhere.An Amazon facility near Amiens. The shift toward a consumer-driven economy was seen by successive national governments as a sign of modernization.Dmitry Kostyukov for The New York Times“This drop in social standing, the sentiment of being abandoned and of not mattering, eased the way for extremism,” said Brigitte Fouré, the center-right mayor of Amiens.In an interview with a French magazine last year, Mr. Macron said that growing up in Amiens, he had witnessed the “full force of deindustrialization” in his region. Still, he acknowledged that he himself had enjoyed a sheltered upbringing, living in a “rather happy bubble, and even a bubble in a bubble.”The son of two medical doctors, Mr. Macron grew up in Amiens’s richest neighborhood, Henriville, and attended the city’s most prestigious school, a private Jesuit establishment called La Providence. “He’s from Henriville, and when you say, ‘Henriville,’ it’s Versailles,” said M’hammed El Hiba, the longtime head of Alco, a community center in Amiens North, an area inhabited by the descendants of North Africans recruited to work in factories in the 1960s and 1970s.Mr. Macron grew up in Amiens’s richest neighborhood, Henriville, and attended the city’s most prestigious school, a private Jesuit establishment called La Providence. Dmitry Kostyukov for The New York TimesAt the former Whirlpool plant, the optimism faded quickly. Former workers said that Mr. Decayeux’s plans to build lockers and small vehicles never took off.“Nothing was happening,” said Christophe Beaugrand, 44, a welder who was hired by Mr. Decayeux after being laid off by Whirlpool. “People were in the cafeteria with their phones and chargers. When the prefect visited, we had to make noise or hide.”Who Is Running for President of France?Card 1 of 6The campaign begins. More

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      Canada Goose workers vote to unionize in Winnipeg.

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      Workers at three plants owned by the luxury apparel-maker Canada Goose in Winnipeg, Manitoba, have voted overwhelmingly to unionize, according to results announced by the union on Wednesday.Workers United, an affiliate of the giant Service Employees International Union, said it would represent about 1,200 additional workers as a result of the election.Canada Goose, which makes parkas that can cost more than $1,000 and have been worn by celebrities like Daniel Craig and Kate Upton, has union workers at other facilities, including some in Toronto, and has frequently cited its commitment to high environmental and labor standards. But it had long appeared to resist efforts to unionize workers in Winnipeg, part of what the union called an “adversarial relationship.”The company denied that it sought to block unionization, and both sides agree that it was neutral in recent weeks, in the run-up to the election. The union said 86 percent of those voting backed unionization.“I want to congratulate the workers of Canada Goose for this amazing victory,” Richard A. Minter, a vice president and international organizing director for Workers United, said in a statement. “I also want to salute the company. No employer wants a union, but Canada Goose management stayed neutral and allowed the workers the right to exercise their democratic vote.”Reacting to the vote, the company said: “Our goal has always been to support our employees, respecting their right to determine their own representation. We welcome Workers United as the union representative for our employees across our manufacturing facilities in Winnipeg.”Canada Goose was founded under a different name in the 1950s. It began to raise its profile and emphasize international sales after Dani Reiss, the grandson of its founder, took over as chief executive in 2001. Mr. Reiss committed to keeping production of parkas in Canada.The private equity firm Bain Capital purchased a majority stake in the company in 2013 and took it public a few years later.The union vote came after accusations this year that Canada Goose had disciplined two workers who identified themselves as union supporters. Several workers at Canada Goose’s Winnipeg facilities, where the company’s work force is mostly immigrants, also complained of low pay and abusive behavior by managers.The company has denied the accusations of retaliation and abuse and said that well over half its workers in Winnipeg earned wages above the local minimum of about 12 Canadian dollars (about $9.35).Workers United is also seeking to organize workers at several Buffalo-area Starbucks stores, three of which are in the middle of a mail-in union election in which ballots are due next week.Nearly 30 percent of workers are unionized in Canada, compared with about 11 percent in the United States. More

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      Democrats Lost the Most in Midwestern ‘Factory Towns’, Report Says

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      The party’s struggles in communities that saw declines in manufacturing and union jobs, and health care, could more than offset its gains in metropolitan areas.WASHINGTON — The share of the Democratic presidential vote in the Midwest declined most precipitously between 2012 and 2020 in counties that experienced the steepest losses in manufacturing and union jobs and saw declines in health care, according to a new report to be released this month.The party’s worsening performance in the region’s midsize communities — often overlooked places like Chippewa Falls, Wis., and Bay City, Mich. — poses a dire threat to Democrats, the report warns.Nationally and in the Midwest, Democratic gains in large metropolitan areas have offset their losses in rural areas. And while the party’s struggles in the industrial Midwest have been well-chronicled, the 82-page report explicitly links Democratic decline in the region that elected Donald J. Trump in 2016 to the sort of deindustrialization that has weakened liberal parties around the world.“We cannot elect Democrats up and down the ballot, let alone protect our governing majorities, if we don’t address those losses,” wrote Richard J. Martin, an Iowa-based market researcher and Democratic campaign veteran, in the report titled “Factory Towns.”Mr. Martin wrote the report in conjunction with Mike Lux and David Wilhelm, fellow Democratic strategists who, like him, also have roots in the region and worked together on President Biden’s 1988 presidential campaign.For all the arresting data, vivid graphs and deepening red maps presented, Mr. Martin offers little guidance on how to reverse the trends. He does, however, offer a warning, one that Midwestern Democrats have been issuing since Mr. Trump’s victory five years ago.“If things continue to get worse for us in small and midsize, working-class counties, we can give up any hope of winning the battleground states of the industrial heartland,” writes Mr. Martin.Surveying ten states — the Great Lakes region as well as Missouri and Iowa — Mr. Martin laid out a set of stark figures.Comparing Barack Obama’s re-election to President Biden’s election last year, he notes that Democrats gained about 1.55 million votes in the big cities and suburbs of the region surveyed. In the same period, they lost about 557,000 votes in heavily rural counties.But in midsize and small counties, Democrats lost over 2.63 million votes between the two elections. Dubbing these communities “factory towns,” Mr. Martin separates them by midsize counties anchored around cities with a population of 35,000 or more and smaller counties that lean on manufacturing but do not have such sizable cities.Taken together, the changes illustrate the degree to which Mr. Obama relied upon the votes of working-class white voters to propel his re-election — and how much Mr. Biden leaned on suburbanites to offset his losses in working-class communities that had once been a pillar of the Democratic coalition.What alarms Mr. Martin, and many Democratic officials, is whether the party can sustain those gains in metropolitan areas. It’s uncertain, as he puts it, “if moderate suburban Republicans will continue to vote for Democrats when Trump is not on the ballot.”Democratic gains up and down the ballot in fast-growing Sun Belt states like Arizona and Georgia garnered significant attention last year. Yet Mr. Biden wouldn’t have won the presidency and Democrats couldn’t have flipped the Senate without victories in 2020 across the Great Lakes region.However, those wins proved more difficult than many pre-election polls concluded because of the G.O.P.’s continued strength in manufacturing communities. And, the report noted, these communities made up a significant portion of the region’s vote share. In Wisconsin, midsize and small manufacturing counties make up 58 percent of the statewide vote. In Michigan, half of the voting population is in these communities.This is where the decline in manufacturing has been most damaging to Democrats. The ten states included in the survey have lost 1.3 million manufacturing jobs since the beginning of this century.In the small to midsize “factory town” counties in those states, where support for the Republican presidential nominee grew between 2012 and 2020, the losses were acute: More than 70 percent suffered declines in manufacturing jobs.The elimination of those jobs also led to declines in health care, according to data from the Robert Wood Johnson Foundation and the University of Wisconsin Population Health Institute.In the counties that suffered manufacturing losses and health care declines, Republicans surged between 2012 and 2020. Nearly half of the party’s gains in these states came in communities where there were both manufacturing cuts and worsening health care.Republicans also prospered in communities hit hard by the decline in manufacturing that were predominantly white. With fewer well-paying industry jobs, the power of local unions declined as well, silencing what was always the beating heart of Democratic political organizing in these areas. In 154 such counties, Democrats suffered a net loss of over 613,000 votes between the elections in 2016 and 2020.Perhaps most striking was the decline in union membership across the region.Nine of the 10 states included in the survey have accounted for 93 percent of the loss of union members nationwide in the last two decades. And just in the last 10 years, these states have lost 10 percent of their union membership — an average that is three times greater than nationally. More

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      As Germany Election Nears, Merkel Leaves a Strong But Vulnerable Economy

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      Chancellor Angela Merkel steered Europe through crises, and Germany has boomed during her tenure. But she has ducked changes needed to ensure the success lasts, analysts say.During her 16 years as Germany’s chancellor, Angela Merkel has become an international avatar of calm, reason and democratic values for the way she handled crises that included a near financial meltdown of the eurozone, the arrival of more than a million migrants and a pandemic.Today Germany is an economic colossus, the engine of Europe, enjoying prosperity and near full employment despite the pandemic. But can it last?That is the question looming as Ms. Merkel prepares to leave the political stage after national elections on Sept. 26. There are signs that Germany is economically vulnerable, losing competitiveness and unprepared for a future shaped by technology and the rivalry between the United States and China.During her tenure, economists say, Germany neglected to build world-class digital infrastructure, bungled a hasty exit from nuclear power, and became alarmingly dependent on China as a market for its autos and other exports.The China question is especially complex. Germany’s strong growth during Ms. Merkel’s tenure was largely a result of trade with China, which she helped promote. But, increasingly, China is becoming a competitor in areas like industrial machinery and electric vehicles.Economists say that Germany has not invested enough in education and in emerging technologies like artificial intelligence and electric vehicles. Germans pay some of the highest energy prices in the world because Ms. Merkel pushed to close nuclear power plants, without expanding the country’s network of renewable energy sources enough to cover the deficit.Ms. Merkel met President Xi Jinping of China, second right, in Beijing in 2019. Germany has grown strongly through trade with China, but they’re also increasingly competitors. Pool photo by Michael Kappeler“That is going to come back to haunt Germany in the next 10 years,” said Guntram Wolff, director of Bruegel, a research institute in Brussels.There was never much pressure on Ms. Merkel to focus on fundamental economic policy because the German economy has boomed during her tenure. Germany has recovered from the pandemic faster than other European countries like France or Italy.But the pandemic has also exposed Germany’s economic dependence on China.In 2005, China accounted for a fraction of German exports. Last year it surpassed the United States as Germany’s largest trading partner. China is the biggest market by far for the automakers Volkswagen, Mercedes-Benz and BMW. German companies have also thrived by equipping Chinese factories with machine tools and other industrial goods that made China an export powerhouse.Ms. Merkel abandoned her early emphasis on human rights in her relations with the Chinese government and instead encouraged ever deeper economic ties. She hosted Chinese leaders in Berlin and traveled 12 times to Beijing and other cities in China, often with delegations of German business managers. But Germany’s economic entanglement with China has made it increasingly vulnerable to pressure from China’s president, Xi Jinping.Late last year, while Germany took its official turn setting the agenda of the European Union, Ms. Merkel and President Emmanuel Macron of France pushed through an investment accord with China over the objections of the incoming Biden administration, largely bypassing other European allies.“German trade with China dwarfs all other member states, and Germany clearly drives policy on China in the E.U.,” said Theresa Fallon, director of the Center for Russia Europe Asia Studies in Brussels. Germany’s economic dependence on China “is driving a wedge in trans-Atlantic relations,” Ms. Fallon said.An electric Mercedes Benz at the International Motor Show in Munich this month. Germany has only recently moved to match U.S. incentives for buyers of electric cars.Felix Schmitt for The New York TimesIn recent years China has been using what it learned from German companies to compete with them. Chinese carmakers including Nio and BYD are beginning to sell electric vehicles in Europe. China has become the No. 2 exporter of industrial machinery, after Germany, according to the VDMA, which represents German engineering companies.Ms. Merkel’s supporters say that she has helped the German economy dodge some bullets. Her sharp political instincts proved valuable during a eurozone debt crisis that began in 2010 and nearly destroyed the currency that Germany shares with 18 other countries. Ms. Merkel arguably kept hard-liners in her own Christian Democratic Union in check as the European Central Bank printed money to help stricken countries like Greece, Italy and Spain.But her longtime finance minister, Wolfgang Schäuble, was also a leading enforcer of policies that protected German banks while imposing harsh austerity on southern Europe. At the time, Germany refused to back the idea of collective European debt — a position that Ms. Merkel abandoned last year, when faced with the fallout from a pandemic that threatened European unity.Ms. Merkel had some luck on her side, too. The former communist states of East Germany largely caught up during her tenure. And Ms. Merkel profited from reforms made by her predecessor, Gerhard Schröder, which made it easier for firms to hire and fire and put pressure on unemployed people to take low-wage jobs.Mr. Schröder’s economic overhaul led to a sharp decline in unemployment, from more than 11 percent when Ms. Merkel took office to less than 4 percent. But the changes were unpopular because they weakened regulations that shielded Germans from layoffs. They paved the way for Mr. Schröder’s defeat by Ms. Merkel in 2005.The lesson for German politicians was that it was better not to tamper with Germans’ privileges, and for the most part Ms. Merkel did not. Many of the jobs created were low wage and offered limited chances for upward mobility. The result has also been a rise in social disparity, with a rapidly aging population increasingly threatened by poverty.“Over the past 15 to 16 years we have seen a clear increase in the number of people who live below the poverty line and are threatened,” said Marcel Fratzscher, an economist at the D.I.W. research institute in Berlin. “Although the 2010 years were very economically successful, not everyone has benefited.”Ms. Merkel’s failure to invest more in infrastructure, research and education, despite her background as a doctor of physics, also reflects the German aversion to public debt. Mr. Schäuble, as finance minister, enforced fiscal discipline that prioritized budget surpluses over investment. The German Parliament, controlled by Ms. Merkel’s party, even enshrined balanced budgets in law, a so-called debt brake.A school in Berlin last year. Economists say that Germany has not invested enough in education and in emerging technologies.Lena Mucha for The New York TimesThe frugal policies were popular among Germans who associate deficit spending with runaway inflation. But they also let Germany fall behind other nations.Since 2016 Germany has slipped from 15th to 18th place in rankings of digital competitiveness by the Institute for Management and Development in Lausanne, Switzerland, which attributed the decline partly to inferior training and education as well as government regulations. Between 40 to 50 percent of all workers in Germany will need to retrain in digital skills to keep working within the next decade, according to the Labor Ministry. Most German schools lack broadband internet and teachers are reluctant to use digital learning tools — a situation that became woefully apparent during the coronavirus lockdowns.“Technology is strategic. It’s a key instrument in the systemic rivalry we have with China,” Omid Nouripour, a lawmaker who speaks for the Green Party on foreign affairs, said during an online discussion this month organized by Berenberg Bank. “We didn’t create enough awareness of that in the past.”The need for Germany to modernize has become more urgent as climate change has become more tangible, and as a shift to electric vehicles threatens the hegemony of German luxury automakers. Tesla has already taken significant market share from BMW, Mercedes-Benz and Audi, and is building a factory near Berlin to challenge them on their home turf. Until last year, the financial incentives that the German government offered to buyers of electric cars were substantially smaller than the tax credits available in the United States.Wind turbines, mining and coal power in Garzweiler, Germany. Ms. Merkel pushed the country away from nuclear energy, but without renewables quickly filling the gap.Ina Fassbender/Agence France-Presse — Getty Images“What is very important for Germany as an industrial nation, and also for Europe as a place for innovation, is a symbiosis between an ambitious climate policy and a very strong economic policy,” Ola Källenius, the chief executive of Daimler, told reporters at the IAA Mobility trade fair in Munich.Auto executives do not criticize Ms. Merkel, who has been a strong advocate for their interests in Berlin and abroad. But they implicitly fault her government’s sluggish response to the shift to electric vehicles. While Germany has more charging stations per capita than the United States, there are not enough to support increasing demand for electric vehicles.“The framework for this transition of the auto industry is not complete yet,” said Oliver Zipse, the chief executive of BMW and president of the European Automobile Manufacturers’ Association. “We need an industry policy framework that begins with charging infrastructure.”Said Mr. Källenius of Daimler, “We are in an economic competition with the United States, North America with China, with other strong Asian countries. We need an economic policy that ensures that Europe remains attractive for investment.” More

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      Troubled Vaccine Maker and Its Founder Gave $2 Million in Political Donations

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      Emergent BioSolutions faces scrutiny in Congress for ruining Covid-19 vaccines and securing lucrative federal contracts. Executives will appear before some lawmakers who benefited from the company’s spending.WASHINGTON — When Fuad El-Hibri, founder and executive chairman of Emergent BioSolutions, appears Wednesday before a House subcommittee to explain how the company’s Baltimore plant ruined millions of doses of coronavirus vaccine, he will be questioned by lawmakers he and his employees spent tens of thousands of dollars helping to elect.Since 2018, federal campaign records show, Mr. El-Hibri and his wife, Nancy, have donated at least $150,000 to groups affiliated with the top Republican on the panel, Representative Steve Scalise of Louisiana, as well as Mr. Scalise’s campaigns. At least two other members of the subcommittee received donations during the 2020 election cycle from the company’s political action committee, which has given about $1.4 million over the past 10 years to members of both parties.Mr. El-Hibri and his wife have made additional donations totaling more than $800,000 over the same period, with the majority going to Republican candidates and organizations.Political giving is nothing new in Washington. But with the federal government as Emergent’s prime customer, Mr. El-Hibri and the company he founded have spent years cultivating ties on Capitol Hill, helping Emergent carve out a lucrative niche market as a government contractor under both Democratic and Republican administrations.Now Emergent and its top executives find themselves under scrutiny from some of the very elected officials they have sought to influence.Members of Congress are demanding answers from the company, which was awarded a $628 million contract last year to manufacture Covid-19 vaccines but has yet to produce a single dose deemed usable by federal regulators. Along with Mr. El-Hibri, Emergent’s chief executive, Robert G. Kramer, will testify beginning at 10:30 a.m. before the House Select Subcommittee on the Coronavirus Crisis, which has opened a sprawling inquiry.Like nearly everything else about the coronavirus pandemic, the hearing is bound to be colored by politics.Democrats, led by Representative Jim Clyburn of South Carolina, the panel’s chairman, are expected to use the session to put a spotlight on the company’s relationship with Trump administration officials, including Robert Kadlec, the former assistant secretary of health and human services for preparedness and response, who had previously consulted for Emergent. Dr. Kadlec has said that he was not involved in negotiating the company’s coronavirus contract but that he did sign off on it.Democrats have also signaled that they will zero in on the executives’ stock trades. Emergent’s stock performed so well in 2020 that Mr. El-Hibri cashed in shares and options worth over $42 million, The New York Times reported in March. Mr. Kramer sold slightly more than $10 million in stock this year, according to filings with the Securities and Exchange Commission reported earlier by The Washington Post.“They all made millions in stock transactions while they seem to be hiding stuff from the public,” Mr. Clyburn said in a recent interview with CNN.Republicans, led by Mr. Scalise, who as the No. 2 Republican holds the title of whip, are likely to point out that the company’s contracts date at least to the Obama administration, which designated its Baltimore facility a center for innovation in advanced development and manufacturing — meaning it would be ready to make vaccines and other needed treatments in the event of a crisis.Representative Steve Scalise of Louisiana received campaign donations from Mr. El-Hibri and his wife, Nancy.Anna Moneymaker for The New York TimesA spokeswoman for Mr. Scalise said that Mr. El-Hibri would receive no special treatment at the hearing. “The Democrats invited him as a witness, and Whip Scalise will treat him as he would any other witness that has been invited before the committee,” the spokeswoman said.Until recently, Emergent was an obscure player in Washington, but a dominant force in the highly specialized market for drugs and vaccines aimed at countering a biological attack. The company burst into the limelight earlier this spring after The Times reported that workers at its Bayview plant in Baltimore had accidentally conflated the ingredients of two vaccines that rely on live viruses, forcing Emergent to discard up to 15 million doses of the Johnson & Johnson vaccine.Food and Drug Administration inspectors subsequently raised concerns about possible further contamination, and the company has recently submitted a quality improvement plan to regulators. The equivalent of about 70 million more doses of Johnson & Johnson’s vaccine, mostly for domestic use, are on hold and may never be cleared for use in the United States.“The collaboration with BARDA was designed to create a higher probability of success but was not without risk,” an Emergent spokesman, Matt Hartwig, said in a statement to The Times, using the acronym for the Biomedical Advanced Research and Development Authority, the federal agency that awarded the contract. “Our motivation in collaborating with BARDA was to help play a role in bringing the pandemic to an end and we are proud of the work of Emergent’s employees.”Mr. Kramer, the chief executive, is likely to use the hearing to outline the company’s corrective action plan and to cast Emergent as a company committed to helping the country in crisis. During a recent earnings call with investors, Mr. Kramer announced a management shake-up and took “full responsibility” for the problems in Baltimore.But he also cast some blame on the government, saying that federal officials had asked Emergent to manufacture the two live-virus vaccines — one developed by Johnson & Johnson and the other by AstraZeneca — despite the risk of contamination. He said that the company had taken precautions but that the contamination had most likely occurred when “one or more of these precautions did not function as anticipated.”Emergent’s chief executive, Robert G. Kramer, sold slightly more than $10 million in stock this year, according to filings with the Securities and Exchange Commission.Joe Andrucyk/Office of Governor Larry HoganThrough Mr. Hartwig, the Emergent spokesman, the El-Hibris declined to comment.The company is a longtime partner to the federal government. Then known as BioPort, it was founded by Mr. El-Hibri in 1998 after he and some investors paid the state of Michigan $25 million to buy the license for a government-developed anthrax vaccine and an aging manufacturing plant. In the two decades since, the company built its business largely around selling products to the Strategic National Stockpile, the nation’s emergency medical reserve.An investigation by The Times, published in March, found that the company’s anthrax vaccine had in some years accounted for roughly half of the stockpile’s budget and that the company’s aggressive tactics, broad political connections and penchant for undercutting competitors had given it remarkable sway over the government’s purchasing decisions related to the vaccines.The company’s board is stocked with former federal officials, and its lobbyists include former members of Congress and aides from both parties. The company’s government relations shop is similarly stocked with partisans; Chris Frech, its top in-house lobbyist, worked for former President George W. Bush, and Grant Barbosa, a senior director for government affairs, was a legislative assistant to Vice President Kamala Harris when she was a senator.Senate lobbying disclosures show that the company has spent an average of $3 million a year on lobbying over the past decade — much more than similarly sized biotech firms but about the same as two pharmaceutical giants, AstraZeneca and Bristol Myers Squibb, whose annual revenues are at least 17 times higher.During the first three months of this year, Emergent reported spending $1.47 million on lobbying, enlisting the services of more than two dozen lobbyists from 10 firms.Federal campaign disclosure records show that donations to the Emergent BioSolutions Inc. Employees PAC run the gamut. Board members and executives like Mr. El-Hibri give as much as $5,000, the maximum allowable amount per year under federal election rules. Some employees have contributed on a biweekly basis in amounts as small as $3.47. Three former employees said the company offered a payroll deduction program to make giving easier.The employee group tends to spend in small dollar amounts, typically $1,000 to $2,500 on incumbents, including lawmakers representing states where it operates, like Maryland and Michigan. Representative Steny Hoyer, Democrat of Maryland and the No. 2 Democrat in the House, was a top beneficiary in the 2020 election cycle; he and an affiliated organization received a total of $10,000.Two members of the House panel conducting Wednesday’s hearing — Representative Jim Jordan, Republican of Ohio, and Representative Jamie Raskin, Democrat of Maryland — each received $1,000 contributions over the same election cycle.In an interview, Mr. Raskin said that he had been unaware of the donation until he was contacted by a Times reporter and that he had returned the money. A spokesman for Mr. Jordan said that the congressman had raised more than $18 million during the 2020 election cycle and that contributions had no bearing on his work as a legislator.Mr. Hartwig, the Emergent spokesman, said in an email message that the PAC “supports incumbent Members of Congress of both chambers and from both parties who represent our employees and our facilities, and who are committed to preparedness and response for the next biological, chemical, or public health threat.”Sharon LaFraniere contributed reporting. More

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      Why Iowa Has Become Such a Heartbreaker for Democrats

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      BURLINGTON, Iowa — Tom Courtney and Terry Davis are former factory workers in Des Moines County along the Mississippi River in eastern Iowa, two men of similar age who skipped college but thrived in a community where blue-collar jobs used to be an engine of upward mobility.In 2008, Mr. Courtney’s daughter Shawna married Mr. Davis’s son Shannon. They celebrated at a rehearsal dinner at the Drake, a steak restaurant on the riverfront in Burlington. The two men are grandparents to Shawna’s daughters from her first marriage, and they occasionally met on the sidelines of Little League games.But as economic decline and social malaise overtook Des Moines County, and Donald J. Trump was embraced by many as an answer, the two men moved in opposite directions. Today they rarely speak. Mr. Davis has become the chairman of the county Republican Party. Mr. Courtney lost his seat as a powerful Democratic state senator in 2016, then tried to win it back last year. He faced an opponent recruited by Mr. Davis.“This was a pretty blue county, but we had a lot of Democrats come over to our side,” Mr. Davis said.Mr. Courtney, who expected a close race, was stunned by the depth of his loss on election night. “As I looked around the state, there were lots of people like me,” he said.“Iowans have changed.”For decades, this state was a reliable wind vane of American politics. In six presidential elections from 1992 to 2012, its voters never deviated by more than one percentage point from the national results.Then in 2016, Mr. Trump pulled Iowa more sharply to the right than any state in the country. The trend continued in 2020, when he ran up wider margins against President Biden than he had against Hillary Clinton in most Iowa counties.Some Democrats believe there are pathways to winning back the working-class voters the party has lost here and in places like it. They point to Mr. Biden’s $2.3 trillion infrastructure plan, the subject of tense negotiations in Washington, which would bring a surge of spending on roads, bridges, child care and clean energy. In Iowa, there are more structurally deficient bridges than any state in the country. Yet, few local Democrats have such high hopes for a political realignment. “There is no short-term elixir,” said Jeff Link, a Democratic strategist in the state.Tom Courtney lost his seat as a powerful Democratic state senator in Iowa in 2016, then tried to win it back last year. Soon after the polls closed, he knew he had no chance. “Iowans have changed,” he said.Jacob Moscovitch for The New York TimesThe 2020 carnage for Iowa Democrats was wide and deep. The party lost a Senate race, gave up two congressional seats and lost half a dozen seats in the state legislature. Unified Republican rule in state government has led Gov. Kim Reynolds to sign permissive gun laws and new restrictions on voting this year, and lawmakers are moving to add a constitutional ban on abortion.Many Democrats now believe that Iowa is all but lost to the party, and that it is time to let go, a view driving a fierce debate over whether to drop the state’s presidential caucuses from their leadoff role in 2024 and beyond. Iowa is small and unrepresentative, more than 90 percent white, and the 2020 election showed that Democrats’ future is in the Sun Belt, with its racially diverse electorate and college-educated suburbanites.Other party strategists are quick to note that Mr. Biden barely won his two Sun Belt pickup states last year, Georgia and Arizona, and that the party can’t afford to bleed more of its traditional voters while making only tenuous inroads with a new constituency.What’s the matter with Iowa, and by extension much of the northern Midwest, for Democrats? Many officials say the party’s cataclysmic losses stem from the erosion in quality of life in rural places like Des Moines County and small cities like Burlington, which are a microcosm for a hollowing out that has led to sweeping political realignments in parts of Iowa, Illinois, Wisconsin, Ohio and Pennsylvania.Schools have closed, rural hospitals are cutting all but bare-bones care, and young people with college degrees have fled for opportunities in Des Moines or Chicago. Employers have backfilled jobs with immigrants, often after weakening unions and cutting pay.“There’s just a discontent, an unhappiness here seeing communities shrink,” said Patty Judge, a Democrat and former lieutenant governor of Iowa. “That makes people very vulnerable to a quick fix. Donald Trump offered that: ‘Let’s make America great again, you’ve lost your voice, let’s have a voice again.’ People have bought into that.”Angela Pforts at her shop in Burlington, Barber and Style. Jacob Moscovitch for The New York TimesMr. Courtney, who is one of eight children of a farm couple he called “strong Roosevelt Democrats,” said that most of his nieces and nephews were “Trumpers,” which confounds him. “They’re not millionaires, most of the family works for wages,” he said. “I don’t understand them.”Mr. Davis’s 95-year-old father is a Democrat. He told his son he always votes for who he thinks will do the best job. “I said, ‘Dad, have you ever voted for a Republican?’” Mr. Davis recalled. “He said, ‘Hell no!’”According to Iowa Workforce Development, a state agency, 1,700 jobs were shed statewide in 2019 outside Iowa’s major cities. It was the third loss in four years, the agency said, “and highlights a trend that is not uncommon in most of the country.”On top of economic factors, other forces forged the Trump coalition in Iowa, as they did elsewhere in places dominated by the white working class: a resentment of immigrants and people of color, and a narrowing of information sources that has pushed conservatives to radio and social media channels where lies and conspiracy theories flourish.A postal carrier in downtown Burlington. There are embers of a downtown revival, but most businesses now line Route 61 west of downtown, where big box stores and chain restaurants draw shoppers from rural towns.Jacob Moscovitch for The New York Times‘Those were my voters’On a recent sunny morning, Mr. Courtney, 73, steered his white S.U.V. around Burlington, a riverfront city with a population of 25,600, which is down by 3.5 percent since 2010. A slender figure with a mustache, silver hair and a soft-pitched voice, Mr. Courtney joined the Air Force out of high school and returned home to work at a Case backhoe plant in Burlington. He rose to become the leader of the union bargaining team before he retired and was elected to the State Senate in 2002.“When I worked there and was bargaining chair, we had 2,300 rank-and-file members,” he said as he drove near the Case plant beside the pewter-colored Mississippi. Today the shop floor is down to 350 workers.“Those were my voters,” he said, passing a nearly empty employee parking lot and a shuttered bar that was once crowded at shift changes. “The last five or six years I worked there, it was nothing to make $70,000 a year. Cars and boats — everybody had all that kind of stuff.” Today, starting wages are about $17 an hour. Burlington rose as a railroad and manufacturing center, and the stone mansions of its 19th-century barons still stand on a bluff above the river. The population peaked around 1970. Although there are embers of a downtown renewal, including a yoga studio and a brew pub, Jefferson Street, the main thoroughfare, was largely deserted on a recent weekday. Most businesses now line Route 61 west of downtown, where big box stores and chain restaurants draw shoppers from rural towns that are themselves losing their economic cores.The visitor’s entrance at the Case factory in Burlington, Iowa. Case’s backhoe plant used to have more than 3,000 employees. Now it has about 350.Jacob Moscovitch for The New York TimesMr. Courtney harks back to a golden era for local Democrats. Des Moines County — not to be confused with the state’s capital city — voted for the Democratic presidential candidate in 10 straight elections before 2016, when Mr. Trump flipped it. Before the 2008 Iowa caucuses, Mr. Courtney, who was the majority whip in the State Senate, escorted Mr. Biden, then embarking on his second bid for the presidency, to an interview with editors of The Hawk Eye. In the middle of it, Mr. Courtney’s cellphone buzzed: It was Bill Clinton, pestering him to endorse the former president’s wife. (Mr. Courtney remained neutral.)Mr. Courtney grew up in the rural town of Wapello, 25 miles north of Burlington. He recalled how in 2018 he knocked on doors there for Democrats. “I’d go into neighborhoods that when I was a kid were nice middle-income neighborhoods with nice homes,” he said. “Now today there’s old cars in the yards, there’s trash everywhere. People come to the doors who are obviously poor. Those are Trump people. We’re not reaching those people.”He could not think of a single new factory that opened in Burlington during the Trump years. To Democrats, the fact that Iowans did not punish Mr. Trump in November for failing to bring a renewal of blue-collar jobs speaks to the power of perception over reality.“It’s just this constant slide and they don’t feel like anybody’s doing anything for them, but they believe that Trump was trying,” said Mr. Link, the Democratic strategist. “More than anything, Trump resonated with them in that he was indignant and angry about the status quo, and angry about elites. They’re not getting that same perception from Democrats.”High school students hanging out in the parking lot of the abandoned Shopko in Burlington. Jacob Moscovitch for The New York TimesRepublicans on the riseIn many ways, Mr. Davis, 72, is the obverse of Mr. Courtney. Although he, too, started as a blue-collar worker, an electrician for railroads, Mr. Davis climbed the ranks of management. By the early 2000s he was the superintendent of a Burlington Northern locomotive plant. When the railroad shut down the operation, idling hundreds of union workers in Burlington, Mr. Davis helped with the downsizing. He took early retirement.Mr. Davis had promised his own driving tour of Burlington, but instead sat in his double-cab pickup with a reporter for two hours in the parking lot of a Dick’s Sporting Goods. He wore khaki work pants and a black golf pullover. He spoke in a forceful, folksy voice.Once a Democrat who voted for Bill Clinton, Mr. Davis said he became a Republican because he disagreed with Democrats on abortion and same-sex marriage, as well as what he called handouts to the undeserving.He recalled chatting at a railroad reunion with one of his former electricians who had taken a job at Case. The man told him that he, and many other union workers at the plant, had voted for Mr. Trump.Mr. Davis recalled him saying: “We pay 140 bucks a month to the union, every one of us does. They take that money and give it to a political party that gives it to people that don’t work. The more we thought about it, we thought, ‘I ain’t doing that anymore.’”The electrician added, “You’d be surprised how many of those people voted for Trump.”Terry Davis, the chair of the Des Moines County Republican Party. “This was a pretty blue county, but we had a lot of Democrats come over to our side,” he said.Jacob Moscovitch for The New York TimesLike Mr. Courtney, Mr. Davis expressed some puzzlement about why Mr. Trump had done so well despite not delivering on his promise to bring back blue-collar jobs. “It’s kind of hard to figure,” he said. Mr. Davis was born in Missouri and worked in Kansas City before being transferred to Burlington. He agreed that the quality of life in town was lackluster. “My wife — don’t take this wrong — she’s not going to buy clothes here,’’ he said. “We go to the Quad Cities or Iowa City or Chicago or St. Louis to shop and mainly to kind of get out of town.”He readily acknowledged that Mr. Biden had won the presidency. But he also said that most Republicans in Des Moines County probably believed Mr. Trump’s falsehoods about a stolen election.Democrats say that conservative talk radio, even more than Fox News, has spread conspiracy theories and disinformation to Republican voters. In places like Des Moines County, people now must drive far to see a dentist or buy a pair of shoes, and all of those hours in their cars have increased the influence of right-wing radio.“People are driving all the time, they’ve got their radios on all the time,” Mr. Courtney said. He mentioned a local station, KBUR, “which used to be a nice friendly station.” It was known for a show “to auction things off” and another that was a call-in “question and answer thing,” Mr. Courtney said. Now it broadcasts Sean Hannity for hours each afternoon.Mr. Courtney passed a shuttered middle school. “It’s just hard for me to believe that 15 years ago, we had three big thriving middle schools,” he said, “and today we’re down to nothing like that.”“Folks have left town,” he added.The now-closed Siemens factory in Burlington.Jacob Moscovitch for The New York Times‘There was a racism card’But Mr. Courtney acknowledged another reason, too: white flight to schools in West Burlington. “People will tell you it’s not, but there’s no question it is,” he said. Burlington’s population is 8.2 percent Black. Public school enrollment is 19 percent Black.Barack Obama carried Des Moines County twice, including by 18 points in 2012, before Mr. Trump flipped it. It is one of 31 Obama-Trump pivot counties in Iowa, which has more of them than any other state in the country. A study by sociologists at Iowa State University in 2019 concluded that the state’s hard pivot from Mr. Obama was not because of “economic distress.” It pointed instead to Mr. Trump’s “nativist narrative about ‘taking back America.’”The study found that the counties that gyrated most sharply away from Mr. Obama were almost entirely white.Mr. Courtney does not dispute that racism drove part of that swing, and he has his own theory of why some of the same voters had earlier backed Mr. Obama.“I think they wanted to say they voted for a Black man,” he said. After two terms with Mr. Obama in office, however, Mr. Trump’s brazen attacks on Mexicans, Muslims and other racial and religious minorities gave people permission to indulge inner grievances, Mr. Courtney said. “There was a racism card that came out and people said, ‘I’m sick of this Black guy, I want to go back to a white guy,’” he said. “I hesitate to say that, but it’s the only thing that makes sense.’’Barack Obama carried Des Moines County twice, including by 18 points in 2012, before Donald J. Trump flipped it in 2016.Jacob Moscovitch for The New York TimesThe road back in Iowa for Democrats is long and complicated. The state once prided itself on having more registered independents than Republicans or Democrats, but since 2018, in keeping with national trends toward polarization, independents now rank behind both major parties. Democrats have suffered a net loss of 120,000 registered voters compared with Republicans. Those votes alone are 10 percent of turnout in nonpresidential years.The party’s setbacks have reheated the debate over whether to cancel Iowa’s caucuses as the leadoff nominating contest. Many national Democratic officials argue that a larger and more diverse state should go before either Iowa or New Hampshire. Even some Iowa Democratic strategists have supported killing off the caucuses to focus on local issues and reduce the influence of the national progressive wing of the party.Mr. Courtney said the voters he knew didn’t care much about cultural issues that Democrats elsewhere dwell on, like gun control and immigration. “All they really want to know is where can they get a good job that pays the most money so that they can take care of their family, and we’re not touching on that,” he said.He has cautious hopes for Mr. Biden’s infrastructure proposal. “If we can put people to work making good money building that stuff, it could be like the W.P.A. back in the day,” said Mr. Courtney, whose parents worshiped Franklin D. Roosevelt’s New Deal.Even Mr. Davis, the G.O.P. chair, conceded that a robust infrastructure plan that brought jobs to Burlington would make it harder for Republicans to continue their winning streak.“It probably will be tough in four years if things are good,” he said. More