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      Corporate greed, not wages, is behind inflation. It’s time for price controls | Robert Reich

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      Corporate greed, not wages, is behind inflation. It’s time for price controlsRobert ReichCorporations are using rising costs as an excuse to increase their prices even higher, resulting in record profits. We need limited price controls to break this cycle On Wednesday, policymakers at the Federal Reserve – America’s central bank – continued their battle against inflation with a third straight supersize interest-rate increase. And they warned that they’re not done. They’ll continue to raise borrowing costs until inflation is tamed.They assume that the underlying economic problem is a tight labor market, causing wages to rise – and prices to rise in response. And they believe interest rate increases are necessary to slow this wage-price inflation.This is dead wrong.Wage increases have not even kept up with inflation. Most workers’ paychecks are shrinking in terms of real purchasing power. Rather than causing inflation, wages are actually reducing inflationary pressures.The underlying economic problem is profit-price inflation. It’s caused by corporations raising their prices above their increasing costs.Corporations are using those increasing costs – of materials, components and labor – as excuses to increase their prices even higher, resulting in bigger profits. This is why corporate profits are close to levels not seen in over half a century.Corporations have the power to raise prices without losing customers because they face so little competition. Since the 1980s, two-thirds of all American industries have become more concentrated.Why are grocery prices through the roof? Because just four companies control 85% of meat and poultry processing. Just one corporation sets the price for most of the nation’s seed corn. And two giant firms dominate consumer staples.All are raising prices and increasing profits because they can.Big pharma, comprising five giants, is causing drug prices to soar.The airline industry has gone from 12 carriers in 1980 to just four today, all rapidly raising ticket prices.Wall Street has consolidated into five giant banks, raking in record profits on the spreads between the interest they pay on deposits and what they charge on loans.Broadband is dominated by three giant cable companies, all raising their prices.Automobile dealers are enjoying record profits as they raise the retail prices of automobiles.Gas prices have started to drop but big oil still has the power to raise prices at the pump far higher than the costs of crude.And so on.This is why Congress and the administration need to take direct action against profit-price inflation, rather than rely solely on the Fed to raise interest rates and put the burden of fighting inflation on average working people who are not responsible for it.Bold antitrust enforcement is essential. Even the credible threat of antitrust enforcement can deter corporations from raising prices higher than their costs.A windfall profits tax could also be helpful. This would be a temporary tax on price increases exceeding the producer price index’s costs of producing consumer goods.Price controls should be a backstop. The current inflation, emerging from the pandemic, is analogous to the inflation after the second world war when economists advocated temporary price controls to buy time to overcome supply bottlenecks and prevent corporate profiteering.Limited price controls should be considered now, for the same reasons.The inflation we are now experiencing is not due to wage gains from excessive worker power. It is due to profit gains from excessive corporate power.It’s profits, not wages, that need to be controlled.
      Robert Reich, a former US secretary of labor, is professor of public policy at the University of California, Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
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      Democrats will struggle to keep control of Congress in midterms, expert says

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      Democrats will struggle to keep control of Congress in midterms, expert saysRay Fair’s latest analysis suggests Democrats will get 46.7% of the national vote – and he usually comes within 3% of the final tally Since 1978 Ray Fair, ​​professor of Economics at Yale University, has been using economic data to predict US election outcomes. His bare-boned, strictly by the numbers approach has a fairly impressive record, usually coming within 3% of the final tally.Sadly for Democrats – if Fair’s on track again this time – the Biden administration will struggle to keep control of Congress in November’s crucial midterm elections.Elections are noisy events and this year’s is no different. Recent polling suggests Joe Biden is on a roll, reclaiming some of the ground he lost earlier in his presidency. The Democrats have passed major legislation. There has been a surge in women registering to vote after the supreme court overturned Roe v Wade. Abortion rights drove voters to the polls in deep-red Kansas. Gas prices, if not overall inflation, are falling. In the meantime, Donald Trump and the candidates he has backed are dominating the headlines and helping Democrats’ poll numbers.But if Fair is right, we can largely set aside the personalities and the issues: the economy is the signal behind the noise and Biden is still in trouble.Using data going back to 1916 Fair’s latest analysis suggests that Democrats will get 46.7% of the national vote in November – down from the 51.3% in 2020 when Biden defeated Donald Trump and took control of the House and a slim majority in the Senate.Fair’s model looks at the national picture, he doesn’t dig down to state battles and won’t be drawn into more granular prognostications. But given the gloomy economic picture in recent months, his prediction is unlikely to improve before November and suggests a loss in the House and a very tough fight to keep control of the Senate.When Fair’s last prediction was published in July, the Democrats’ share of the vote had fallen from 48.99% in October “due to two fewer strong growth quarters and slightly higher inflation”. The economic malaise has only deepened since then.“This prediction is based on business as usual,” said Fair. “It’s based on estimations back to 1918, a 100-plus years of data. In that period what seems to matter, election after election, is inflation, output, growth and the penalty you get for being the incumbent party in the White House.”Fair will update his model before the election and given its economic focus, Biden’s percentages are unlikely to improve. Inflation remains close to a 40-year high – soaring prices are now costing the average American household an extra $717 a month. The US economy has shrunk for two consecutive quarters, a sign taken by many as a harbinger of recession. Interest rates are rising at their sharpest pace since the 1990s as the Federal Reserve fights to tamp down price rises.The strength of the economic headwinds Biden faces are apparent even in his improving poll numbers. About 69% of Americans think the nation’s economy is getting worse – the highest percentage since 2008 – according to a recent ABC News/Washington Post poll.Fair doesn’t think elections are only about the economy. “This is not a perfect story, there’s room for other stories in each election,” he said. Given the equations narrow, economic focus he said it was “reasonable” that people were now looking at what other factors might impact the Democratic vote share in the midterms.One factor that may have skewed his results in the past, and could do again, is Donald Trump. In 2016 Fair’s model predicted Hillary Clinton would beat Trump. She did win 2.9m more votes than Trump, securing 48.2% of the vote to Trump’s 46.1%. But she lost in the electoral college.This time too Trump could be a factor, although he is difficult to measure. “There are many reasons why the Democrats may do better. Certainly Trump could be one of them,” said Fair.But history – or at least the history that Fair measures – suggests for all the recent positive polling, the Democrats face an uphill struggle this November.“How large is the error I make on average? It’s about 3 percentage points. If the prediction is 47 that would get you up to 50. So it’s a long shot that the Democrats would get more than half,” he said.TopicsUS politicsUS economyEconomicsJoe BidenDonald TrumpnewsReuse this content More

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      Fed raises interest rate by 0.75 percentage points as US seeks to rein in inflation

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      Fed raises interest rate by 0.75 percentage points as US seeks to rein in inflationThird outsized rate increase in a row as central bank struggles to fight runaway inflation, increasing the cost of everything The Federal Reserve announced another sharp hike in interest rates on Wednesday as the central bank struggles to rein in runaway inflation.The Fed raised its benchmark interest rate by 0.75 percentage points, the third such outsized rate increase in a row, bringing the Fed rate to 3%-3.25% and increasing the cost of everything from credit card debt and mortgages to company financing.The central bank signaled more raises to come, predicting rates would reach 4.4% by the end of the year and not start coming down until 2024. The Fed expects the rate rises to hit the job market – raising unemployment from 3.7% to 4.4% next year – housing prices and to lower economic growth.“We have got to get inflation behind us. I wish there were a painless way to do that. There isn’t,” the Fed chair, Jerome Powell, said. “We have always understood that restoring price stability while achieving a relatively modest increase in unemployment and a soft landing would be very challenging. And we don’t know. No one knows whether this process will lead to a recession or if so, how significant that recession would be.”Central bankers around the world are raising rates sharply as they too attempt to tackle the cost of living crisis. This week the Bank of England is expected to announce its largest rate rise in 25 years. The European Central Bank raised interest rates across the eurozone by a record margin earlier this month.The Fed initially dismissed rising inflation, arguing it was a “transitory” phase triggered by the pandemic and supply chain issues. But as prices escalated the Fed announced a series of aggressive moves in the hopes of bringing prices back under control.Until recently Powell had said he hoped that the economy could achieve what he called a “soft landing” – a slowdown that would bring costs down but not lead to a spike in unemployment and a recession.Speaking at a congressional hearing on Wednesday, some of the US’s top bankers said it was too early to tell how rate rises would impact the economy. “I think there’s a chance, not a big change, a small chance, of a soft landing,” said Jamie Dimon, chief executive of JPMorgan Chase.“There’s a chance of a mild recession, a chance of a hard recession. And because of the war in Ukraine and the uncertainty in global energy and food supply, there’s a chance that it could be worse. I think policymakers should be prepared for the worst, so we take the right actions if and when that happens,” he said.Raising rates makes borrowing more expensive which should reduce spending and lower prices. But the policy is a blunt instrument and rate rises take time to filter through to the wider economy. So far the Fed’s rate rises have not had a significant impact.The US jobs market remains robust, with unemployment still close to a 50-year low, consumer spending rose last month and inflation remained stubbornly high in August, 8.3% higher than a year ago.There are, however, some signs of a slowdown. Existing home sales fell in August for the seventh consecutive month, according to the National Association of Realtors. Sales were 19.9% lower than in August 2021 and are now at their lowest level since they briefly stalled during the height of the pandemic in 2020. And large employers including BestBuy, Ford and Walmart have announced layoffs or hiring freezes.TopicsFederal ReserveUS economyBank of EnglandInflationEconomicsEuropean Central BankUS politicsnewsReuse this content More

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      Covid caused huge shortages in US labor market, study shows

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      Covid caused huge shortages in US labor market, study showsAt least 500,000 people have permanently disappeared from the workforce, analysis says Research into the lingering effects of Covid-19 on the US workforce has confirmed what anybody who has waited an extended time for a delivery – or been unable to get a restaurant table – already knows: the pandemic has caused massive shortages in the labor market.On top of the quarter-million people of working age who have died from coronavirus, at least twice that number across all ages have permanently disappeared from the workforce, the analysis by the National Bureau of Economic Research shows.Other studies have shown the impact on the workforce of long Covid, where symptoms remain months or years after the initial infection has passed. A Brookings Institution study estimated last month that as many as 2.4 million have missed work, are temporarily absent or are working reduced hours because of the lingering effects of the virus.However, this new study focuses more on the apparent effect on labor supply caused by the pandemic and those who have permanently stopped working – through choice or necessity – as a result of their sickness.Among the main reasons are large numbers of working people transitioning straight from illness into retirement, according to the researchers, who looked at federal and state level data on Covid infections as well as deaths to evaluate the probability of workers remaining in the labor force after getting sick.“Our estimates suggest Covid-19 illnesses have reduced the US labor force by approximately 500,000 people,” say the study’s authors, Gopi Shah Goda of Stanford University and Evan Soltas of Massachusetts Institute of Technology’s economics department.“Covid-19 illnesses persistently reduce labor supply. We estimate that workers with week-long work absences are 7% less likely to be in the labor force one year later compared to otherwise-similar workers who do not miss a week of work for health reasons.”The study adds: “Many who fall ill but survive Covid-19 suffer from enduring health problems … approximately 500,000 adults are neither working nor actively looking for work due to the persistent effects of Covid-19 illnesses.”The researchers say that while labor shortages caused by the pandemic are apparent in all corners of industry, it has been a challenge to evaluate their permanence.“Many in government and the media have speculated that such post-acute conditions have reduced labor supply, but data limitations have made it difficult to assess these impacts and the economic costs of Covid-19 illnesses more broadly,” the authors say.The Guardian has reported how some employers around the US are responding to perceived worker shortages by pursuing cheap sources of labor, such as people currently or formerly in prison.The restaurant industry in Michigan, Texas, Ohio and Delaware recently announced a prison work release program for the food service and hospitality industries. And in April, Russell Stover candy production facilities in Iola and Abilene, Kansas, began using prison labor through the Topeka correctional facility in response to staffing issues disrupting production lines.Meanwhile, a waste management conference in Nevada in June heard that a solution to their own industry’s shortage of workers could also be addressed by tapping the less “traditional” talent pool.TopicsUS newsCoronavirusUS economyUS politicsnewsReuse this content More

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      The US has a ruling class – and Americans must stand up to it | Bernie Sanders

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      The US has a ruling class – and Americans must stand up to itBernie SandersIn the year 2022, three multibillionaires own more wealth than the bottom half of American society – 160 million Americans. This is unsustainable Let’s be clear. The most important economic and political issues facing this country are the extraordinary levels of income and wealth inequality, the rapidly growing concentration of ownership, the long-term decline of the American middle class and the evolution of this country into oligarchy.We know how important these issues are because our ruling class works overtime to prevent them from being seriously discussed. They are barely mentioned in the halls of Congress, where most members are dependent on the campaign contributions of the wealthy and their Super Pacs. They are not much discussed in the corporate media, in which a handful of conglomerates determine what we see, hear and discuss.So what’s going on?We now have more income and wealth inequality than at any time in the last hundred years. In the year 2022, three multibillionaires own more wealth than the bottom half of American society – 160 million Americans. Today, 45% of all new income goes to the top 1%, and CEOs of large corporations make a record-breaking 350 times what their workers earn.Meanwhile, as the very rich become much richer, working families continue to struggle. Unbelievably, despite huge increases in worker productivity, wages (accounting for real inflation) are lower today than they were almost 50 years ago. When I was a kid growing up, most families were able to be supported by one breadwinner. Now an overwhelming majority of households need two paychecks to survive.Today, half of our people live paycheck to paycheck and millions struggle on starvation wages. Despite a lifetime of work, half of older Americans have no savings and no idea how they will ever be able to retire with dignity, while 55% of seniors are trying to survive on an income of less than $25,000 a year.Since 1975, there has been a massive redistribution of wealth in America that has gone in exactly the wrong direction. Over the past 47 years, according to the Rand Corporation, $50tn in wealth has been redistributed from the bottom 90% of American society to the top 1%, primarily because a growing percentage of corporate profits has been flowing into the stock portfolios of the wealthy and the powerful.During this terrible pandemic, when thousands of essential workers died doing their jobs, some 700 billionaires in America became nearly $2tn richer. Today, while the working class falls further behind, multibillionaires like Elon Musk, Jeff Bezos and Richard Branson are off taking joyrides on rocket ships to outer space, buying $500m super-yachts and living in mansions with 25 bathrooms.Disgracefully, we now have the highest rate of childhood poverty of almost any developed nation on Earth and millions of kids, disproportionately Black and brown, face food insecurity. While psychologists tell us that the first four years are the most important for human development, our childcare system is largely dysfunctional – with an inadequate number of slots, outrageously high costs and pathetically low wages for staff. We remain the only major country without paid family and medical leave.In terms of higher education, we should remember that 50 years ago tuition was free or virtually free in major public universities throughout the country. Today, higher education is unaffordable for millions of young people. There are now some 45 million Americans struggling with student debt.Today over 70 million Americans are uninsured or underinsured and millions more are finding it hard to pay for the rising cost of healthcare and prescription drugs, which are more expensive here than anywhere else in the world. The cost of housing is also soaring. Not only are some 600,000 Americans homeless, but nearly 18m households are spending 50% or more of their limited incomes on housing.It’s not just income and wealth inequality that is plaguing our nation. It is the maldistribution of economic and political power.Today we have more concentration of ownership than at any time in the modern history of this country. In sector after sector a handful of giant corporations control what is produced and how much we pay for it. Unbelievably, just three Wall Street firms (Blackrock, Vanguard and State Street) control assets of over $20tn and are the major stockholders in 96% of S&P 500 companies. In terms of media, some eight multinational media conglomerates control what we see, hear and read.In terms of political power, the situation is the same. A small number of billionaires and CEOs, through their Super Pacs, dark money and campaign contributions, play a huge role in determining who gets elected and who gets defeated. There are now an increasing number of campaigns in which Super Pacs actually spend more money on campaigns than the candidates, who become the puppets to their big money puppeteers. In the 2022 Democratic primaries, billionaires spent tens of millions trying to defeat progressive candidates who were standing up for working families.Dr Martin Luther King Jr was right when he said: “We must recognize that we can’t solve our problem now until there is a radical redistribution of economic and political power” in America. That statement is even more true today.Let us have the courage to stand together and fight back against corporate greed. Let us fight back against massive income and wealth inequality. Let us fight back against a corrupt political system.Let us stand together and finally create an economy and a government that works for all, not just the 1%.
      Bernie Sanders is a US senator from Vermont and the chairman of the Senate budget committee
      TopicsUS politicsOpinionUS CongressBernie SandersRichard BransonElon MuskUS economyJeff BezoscommentReuse this content More

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      Fears of violence grow after FBI search of Trump’s Mar-a-Lago – as it happened

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      According to the memo from the FBI and department of homeland security, the federal agencies have identified an increase in threats “occurring primarily online and across multiple platforms” including social media.They specifically link the increase to the August 8 search of Mar-a-Lago, a strong sign of yet more legal trouble to come for the former president.“The FBI and DHS have observed an increase in violent threats posted on social media against federal officials and facilities, including a threat to place a so-called dirty bomb in front of FBI Headquarters and issuing general calls for ‘civil war’ and ‘armed rebellion,’” the agencies wrote.Far-right Republican lawmakers in the House have joined in the attacks on federal law enforcement, including Georgia’s Marjorie Taylor Greene:Impeach Merrick Garland and Defund the corrupt FBI!End political persecution and hold those accountable that abuse their positions of power to persecute their political enemies, while ruining our country.This shouldn’t happen in America.Republicans must force it to stop!— Rep. Marjorie Taylor Greene🇺🇸 (@RepMTG) August 15, 2022
      She was joined by Arizona’s Paul Gosar:It is crucial that we hold our Department of Justice accountable after the obvious political persecution of opposition to the Biden Regime.The “national security state” that works against America must be dismantled.— Rep. Paul Gosar, DDS (@RepGosar) August 14, 2022
      Yet there seems to be an awareness among Republicans that the attacks don’t match the message of a party that attempts to cast itself as supporters of law enforcement. “We cannot say that whenever they went in and did that search, that they were not doing their job as law enforcement officers,” Arkansas governor Asa Hutchinson said of the FBI in a Sunday interview on CNN:”We need to pull back on casting judgment on them.”Gov. @AsaHutchinson (R-AR) responds to Republicans attacking the FBI after investigators seized classified documents from Trump’s home. @CNNSotu #CNNSOTU pic.twitter.com/o1CtvURUmB— CNN (@CNN) August 14, 2022
      The investigations into the Trump administration continued today, with Rudy Giuliani being informed that he was a target of the special grand jury looking into election meddling in Georgia, while another former Donald Trump lawyer, Eric Herschmann, was subpoenaed by the federal grand jury looking into the January 6 attack. Republican senator Lindsey Graham also lost his attempt to quash a subpoena compelling his appearance before the Georgia panel, though he has vowed to appeal. Meanwhile, a Trumpworld source said the former president should declare his 2024 run for the presidency soon to avoid indictment.Here’s what else happened today:
      US defense secretary Lloyd Austin tested positive for Covid-19 for the second time this year, he announced. His symptoms are mild and he’ll work remotely.
      President Joe Biden will tomorrow sign the Inflation Reduction Act into law, his marquee plan to lower both America’s carbon emissions and costs for health care.
      Democrats fear that if the Republicans win the House this fall they could reinstate the Holman Rule, which allows the party in control of the chamber to write language into spending bills to cut the salaries of federal employees such as the attorney general or FBI officials, The Washington Post reports.
      Much attention tomorrow night will be on the Wyoming and Alaska primaries, where congresswoman Liz Cheney is battling a Republican challenger in Wyoming and former vice-presidential candidate and Alaska governor Sarah Palin is hoping for a comeback by winning the state’s lone congressional seat.
      The FBI and department of homeland security have warned of an increase in violent threats posted on social media against federal officials and facilities, including a threat to place a so-called dirty bomb in front of FBI headquarters in Washington DC and the issuing of general calls for “civil war” and “armed rebellion”.
      The Senate Republican campaign fund is slashing its ad purchases in three crucial states, The New York Times reports.The cuts made in Pennsylvania, Wisconsin and Arizona total about $10 million, and are a sign of lackluster fundraising for the GOP’s attempt to retake the upper chamber of Congress, where it needs only one additional seat to create a majority. The Republican candidates in Pennsylvania, Mehmet Oz, and in Arizona, Blake Masters, are both down in the polls, according to FiveThirtyEight, although incumbent Republican Ron Johnson is leading in Wisconsin.President Joe Biden will tomorrow sign into law the Inflation Reduction Act, his marquee plan to lower both America’s carbon emissions and costs for health care.Tomorrow’s event will take place in the White House State Dining Room, the Biden administration announced. In the coming weeks, Biden “will host a Cabinet meeting focused on implementing the Inflation Reduction Act, will travel across the country to highlight how the bill will help the American people, and will host an event to celebrate the enactment of the bill at the White House on September 6.”The act’s passage came after more than a year of negotiations among Democrats, who set out to pass what the Biden administration hoped would be transformational legislation addressing a range of issues from the high costs of child and elder case, to the nationwide housing shortage, to immigration reform. But Republicans refused to support the bill, and the party’s razor-thin margin of control in Congress meant many of those proposals were stripped out of the bill, chiefly due to opposition from conservative Democratic senators Kyrsten Sinema and Joe Manchin.US House passes Democrats’ landmark healthcare and climate billRead moreThe Guardian’s Hugo Lowell has further details about Rudy Giuliani’s new legal trouble in Georgia:Donald Trump’s former attorney Rudy Giuliani is a target of the criminal investigation in Georgia that has been examining efforts to overturn the results of the 2020 election in that state by the former president and his allies, a source briefed on the matter confirmed on Monday.The move to designate Giuliani, 78, as a target – as opposed to a subject – raises the legal stakes for the ex-New York mayor, identified as a key figure in the attempt to reverse the former president’s electoral defeat to Joe Biden in the state.The office of Fani Willis, the Fulton county district attorney prosecuting the case, told Giuliani he was a target of the criminal investigation into that attempt.Rudy Giuliani informed he is target of criminal investigation in GeorgiaRead moreA source close to former president Donald Trump says he should announce his 2024 campaign for presidency soon if he wants to avoid indictment, Martin Pengelly reports:Donald Trump “has to” announce a campaign for the Republican presidential nomination in 2024 in the next two weeks, a senior Trumpworld source said, if the former president wants to head off being indicted under the Espionage Act after the FBI search at Mar-a-Lago last week.In communications obtained by the Guardian, the source indicated Trump needed to announce because politically it would be harder for the US Department of Justice (DoJ) to indict a candidate for office than a former president out of the electoral running.The source also suggested Ron DeSantis, Trump’s only serious competitor in Republican polling, will not run in 2024 if Trump chooses to enter the race.Trump should announce run for 2024 soon to avoid indictment, source saysRead moreEric Herschmann, a lawyer who advised Donald Trump and has become one of the more well known witnesses before the January 6 committee, has received a subpoena from the federal grand jury investigating the attack, Politico reports.He joins former White House counsel Pat Cipollone and his deputy Patrick Philbin in receiving summons from the panel looking into the breach of the US Capitol by Trump’s enraged supporters.With his witty ripostes and salty language, Herschmann’s testimony was among the more memorable aired by the January 6 committee. The lawyer detailed his opposition to other officials in the Trump White House, who wanted to take drastic actions to overturn the president’s loss in the 2020 election. More

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      Trump says he invoked fifth amendment in New York attorney general’s investigation: ‘I declined to answer’ – as it happened

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      In a lengthy statement, Donald Trump has announced he refused to answer questions during a deposition today as part of New York attorney general Letitia James’s investigation into his real estate dealings.The statement is full of attacks on James, but closes with the former president declaring he has lost faith in the justice system – at least under his Democratic rival, president Joe Biden:.css-knbk2a{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}I once asked, “If you’re innocent, why are you taking the Fifth Amendment?” Now I know the answer to that question. When your family, your company, and all the people in your orbit have become the targets of an unfounded, politically motivated Witch Hunt supported by lawyers, prosecutors, and the Fake News Media, you have no choice. If there was any question in my mind, the raid of my home, Mar-a-Lago, on Monday by the FBI, just two days prior to this deposition, wiped out any uncertainty. I have absolutely no choice because the current Administration and many prosecutors in this Country have lost all moral and ethical bounds of decency.
      Accordingly, under the advice of my counsel and for all of the above reasons, I declined to answer the questions under the rights and privileges afforded to every citizen under the United States Constitution.Trump to face sworn deposition in New York lawsuit as legal troubles mountRead moreBe they at Mar-a-Lago or the New York attorney general’s office, former president Donald Trump’s legal issues were a major story today, as was an alleged Iranian plot to kill John Bolton, one of Tehran’s biggest enemies in Washington.Here’s a recap of the day’s events:
      Donald Trump invoked the fifth amendment against self incrimination when he sat for a deposition at the office of state attorney general Letitia James this morning, in her civil case relating to the former president’s real estate business.
      National security adviser Jake Sullivan warned Iran against any attacks targeting Americans following allegations that it plotted to kill Bolton, a former national security adviser in the Trump administration and noted Iran hawk.
      Data showing inflation flatlining in July prompted Joe Biden to say the figures were a sign that the world’s largest economy was healthy and poised to see prices moderate in the months to come.
      House speaker Nancy Pelosi said her visit to Taiwan was meant as a show of solidarity and not to fundamentally change Washington’s relationship with the island.
      Politico reports some new developments in the FBI’s visit to Mar-a-Lago, specifically efforts to get access to the search warrant, which hasn’t been released.Both rightwing group Judicial Watch and the Times Union newspaper serving the Albany, New York areas have filed motions to unseal the warrant:JUST IN: Judicial Watch motion to unseal the (possible) sealed search warrant for Mar-a-Lago has hit the docket.https://t.co/JORzlrE7rl pic.twitter.com/DT3XF5fNPs— Kyle Cheney (@kyledcheney) August 10, 2022
      BREAKING: Magistrate Judge Reinhart is asking for DOJ to respond to Judicial Watch’s unsealing request for (what I presume is) the Mar-a-Lago warrant by COB on Aug. 15. pic.twitter.com/Y4uJV3TGoz— Kyle Cheney (@kyledcheney) August 10, 2022
      The Albany Times-Union has also made a motion to unseal the search warrant, and Magistrate Reinhart has said DOJ can file a consolidated response to all unsealing motions: https://t.co/vdCBCdPwpG— Kyle Cheney (@kyledcheney) August 10, 2022
      And the Times-Union has made an identical motion to unseal a second sealed search-warrant case that was also docketed on Friday. It’s unclear which of the two is the Mar-a-Lago warrant.— Kyle Cheney (@kyledcheney) August 10, 2022
      Meanwhile, FBI director Christopher Wray isn’t saying much about the matter, according to ABC:Speaking for the first time since the FBI searched Former President Donald Trump’s Mar-a-Lago estate, FBI Director Christopher Wray told reporters in Omaha, NB he couldn’t get into the details. “Well, as I’m sure you can appreciate that’s not something I can talk about,” he said.— Luke Barr (@LukeLBarr) August 10, 2022
      Voters in four more states went to the polls last night to choose candidates in primary elections – and to also offer a glimpse into how Americans are thinking as the November midterms draw ever nearer.Multiple pollsters now see the Democrats’ prospects improving thanks to voters rallying around reproductive rights following the supreme court’s decision overturning Roe v. Wade, and Republicans opting for more extreme, Trump-friendly candidates to stand in the upcoming general election. Nate Cohn of The New York Times puts it this way:The GOP holds MN-1 in last night’s special election, but only by a modest 4 point margin (Trump+10 district; R+3 in last House race)The signs of a Democratic rebound post-Dobbs are starting to pile up https://t.co/9XJZGnxPqT— Nate Cohn (@Nate_Cohn) August 10, 2022
      There haven’t been many other special/non-primary election results since Dobbs, but MN-01 isn’t exactly alone. NE-01 was also a strong showing for Democrats. There’s also the KS abortion referendum, if you count it.We’ll get more data, including NY-19, over the next few weeks.— Nate Cohn (@Nate_Cohn) August 10, 2022
      Democrats have also trended upward on the generic congressional ballot, where they’ve reached parity with the GOPNo way to know if it lasts until November, but the focus on abortion/Jan 6 hasn’t ebbed–yet. At the same time, the news on inflation has improved for Ds— Nate Cohn (@Nate_Cohn) August 10, 2022
      Nate Silver of FiveThirtyEight sees things like this:Here’s something I think about. Let’s say Democrats somehow do hold the House this year. It’s not likely, but it’s also not impossible (~20% chance per 538 model). In 20 years, will people have a hard time explaining why it happened?I think no, they won’t. https://t.co/IiuAg9cVWO— Nate Silver (@NateSilver538) August 10, 2022
      The last time POTUS’s party gained seats in the House were 1998 and 2002. These are generally attributed to Lewinsky and 9/11, respectively.If Ds hold the House in 2022, people will attribute it to Roe being overturned and overall GOP radicalization including Jan. 6.— Nate Silver (@NateSilver538) August 10, 2022
      Is Dobbs + Jan. 6 a “special circumstance” equal in magnitude to 9/11? That’s a very apples-to-oranges comparison but I’d tend to say no; people forget how profoundly 9/11 changed public opinion. But is it comparable to Lewinsky? Certainly. It’s bigger, I’d think.— Nate Silver (@NateSilver538) August 10, 2022
      Dave Wasserman of The Cook Political Report with Amy Walter sums it up:This much is clear from Kansas and the #NE01/#MN01 House specials: there’s still time for things to snap back before November, but we’re no longer living in a political environment as pro-GOP as November 2021.— Dave Wasserman (@Redistrict) August 10, 2022
      To be sure, Democrats appear to be deep under water in the polls when it comes to control of the House, FiveThirtyEight says. Faring even worse is Joe Biden himself, whose approval rate has slid and slid and slid for months, with signs of stabilization coming only recently.The House of Representatives has taken the first steps to passing the Inflation Reduction Act, the Biden administration’s marquee spending proposal that is intended to lower health care costs and fight climate change.The Senate approved the legislation over the weekend with Democratic votes alone after pulling an all-nighter Saturday. While the House isn’t expected to vote on the bill till Friday, the chamber’s rules committee convened today to move it towards consideration by the full chamber.With Democrats thought to be on the cusp of losing control of the House in the November midterm elections, the bill could be one of the last major pieces of legislation passed in Biden’s first term. It was also intended to be much more ambitious, but provisions to lower housing costs and provide more aid and social services to poor Americans were stripped out in the lengthy negotiations that preceded its passage in the Senate.The Washington Post reports that Democrats are now making something of a long-shot pitch to voters: re-elect us in September and we will try again to pass those programs that didn’t make it into the Inflation Reduction Act. As Senate majority leader Chuck Schumer put it to the paper: “If we win, we’re going to have to do a reconciliation bill that will take care of a lot of the things that we couldn’t do”.Monkeypox cases are increasing across the United States, and as Wilfred Chan reports, the campaign against the disease is caught up in rightwing campaigns against LGBTQ+ rights:The conservative campaign against LGBTQ+ rights has found a new fixation for its hatred: monkeypox. On TV, rightwing commentators openly mock monkeypox victims – the vast majority of whom are men who have sex with men – and blame them for getting the disease. On social media, rightwing users trade memes about how the “cure” to monkeypox is straight marriage while casting doubt on monkeypox vaccines’ efficacy.This aggressive stigmatization of monkeypox – reminiscent of the homophobic response to HIV/Aids in the 1980s – poses a serious challenge to public health advocates and community leaders trying to have honest conversations about the disease with the gay and bisexual men who are most at risk during the current outbreak. Should public messaging highlight the fact that monkeypox is primarily affecting men who have sex with men? And should public health bodies urge gay men to change their sexual practices?The simultaneous threats of homophobia and monkeypox require making a difficult choice about which to tackle first, says the writer and veteran Aids activist Mark S King, a 61-year-old gay man.Rightwing media embraces Aids-era homophobia in monkeypox coverageRead moreFederal prosecutors in Michigan today began laying out their case against two men accused of plotting to kidnap Governor Gretchen Whitmer in 2020, saying that conversations about their plan went beyond just idle talk, Reuters reports.Adam Fox and Barry Croft Jr face kidnapping and weapons conspiracy charges for the second time after a federal judge in Grand Rapids, Michigan declared a mistrial last April.The men – alleged members of the Three Percenters, a self-styled militia group – are accused of plotting to abduct Whitmer from her vacation home and stage a “trial” for her for treason. Two other defendants were found not guilty in the men’s first trial.The mistrial was a setback for federal prosecutors in one of the highest-profile cases in years involving militias. The second trial will give them another opportunity.In his opening statement on Wednesday, a prosecutor said the men determined where the governor, performed reconnaissance on her summer cottage and gathered the equipment they needed, such as body armor and ammunition, to carry out their plan, according to a local TV station..css-knbk2a{height:1em;width:1.5em;margin-right:3px;vertical-align:baseline;fill:#C70000;}This wasn*t just talk. You will see these defendants and others took specific steps, planning and training,” Chris O’Connor, the assistant U.S. attorney for the Western District of Michigan, told the jury, local Fox affiliate WXMI reported.Attorneys for Fox and Croft revived their arguments from the first trial saying that there was no conspiracy.Christopher Gibbons, who represents Fox, described the accused as “big talkers” whose comments should not be taken seriously, according to NBC-affiliate WOOD-TV.If convicted on the conspiracy charges, the men face the possibility of life in prison.The two men on trial are among 13 men who were arrested in October 2020 and charged with state or federal crimes in the alleged kidnapping conspiracy. Seven of them are facing charges in state court.It’s been a sparky morning in US political news, mainly relating to the man Joe Biden refers to as “that guy”. The president has now jetted off on vacation but we’ll bring you all the developments as they happen.Here’s where things stand.
      Donald Trump invoked the fifth amendment against self incrimination (with an eye to a parallel criminal case in New York) during a deposition at the office of state attorney general Letitia James this morning, in her civil case relating to the former president’s real estate business.
      National security adviser Jake Sullivan warned Iran against any attacks targeting Americans following allegations that it plotted to kill John Bolton, a noted foe of Tehran who served in the Trump administration.
      The justice department announced charges against a Tehran-based member of Iran’s Revolutionary Guards for attempting to hire someone in the United States to kill John Bolton, a national security adviser under Donald Trump.
      Data showing inflation flatlining in July prompted Joe Biden to say the figures were a sign that the world’s largest economy was healthy and poised to see prices moderate in the months to come.
      Here is the president and family heading to South Carolina for a break..⁦@POTUS⁩ and fam off to South Carolina for vacation pic.twitter.com/LFEEU9a4BD— Seung Min Kim (@seungminkim) August 10, 2022
      There’s also this.Did you ever have to take the 5th? Nope? Me neither. pic.twitter.com/LJNOoEA060— Joyce Alene (@JoyceWhiteVance) August 10, 2022
      Following her visit to Taiwan that has sent tensions with China soaring, Democratic House speaker Nancy Pelosi said at a press conference that the trip’s goal was not to change Washington’s relationship with Taipei, but rather express solidarity.“We will not allow China to isolate Taiwan”, Pelosi said. “They have kept Taiwan from participating in the World Health Organization, other things were Taiwan can make a very valued contribution. And they may keep them from going there, but they’re not keeping us from going to Taiwan.”She noted Taiwan’s status as a democracy in contrast with authoritarian China, which considers the island a breakaway province and has vowed to reunify with it, even by force. Beijing warned Pelosi against going and responded to her trip by announcing military drills around Taiwan – steps the Democratic lawmaker said China did not take when a delegation of senators visited the island earlier this year.“So in any event, we’re very proud of our delegation”, she said.National security adviser Jake Sullivan has warned Iran against any attacks targeting Americans following allegations that it plotted to kill John Bolton, a noted foe of Tehran who served in the Trump administration.“We have said this before and we will say it again: the Biden Administration will not waiver in protecting and defending all Americans against threats of violence and terrorism. Should Iran attack any of our citizens, to include those who continue to serve the United States or those who formerly served, Iran will face severe consequences. We will continue to bring to bear the full resources of the U.S. Government to protect Americans,” Sullivan said in a statement.Bolton, who was Trump’s national security adviser from 2018 to 2019, presided over Washington’s decision to leave the Iran nuclear deal, and has advocated for bombing the country. The assassination plot alleged by the justice department earlier today appeared to be in retaliation for the 2020 assassination of Qassem Suleimani, the commander of the Islamic Revolutionary Guard Corps, who was killed on Trump’s orders.US charges Iranian man over alleged plot to kill ex-Trump aide John BoltonRead moreFormer national security adviser John Bolton has released a statement thanking the justice department for exposing the assassination plot against him.I wish to thank the Justice Dept for initiating the criminal proceeding unsealed today; the FBI for its diligence in discovering and tracking the Iranian regime’s criminal threat to American citizens; and the Secret Service for providing protection against Tehran’s efforts. pic.twitter.com/QDjkX6gUWM— John Bolton (@AmbJohnBolton) August 10, 2022
      He also takes a stab at the 2015 nuclear deal with Iran, which the United States pulled out of in 2018, during Bolton’s time in Donald Trump’s White House. The Biden administration along with its allies are in the midst of uncertain and lengthy negotiations with Tehran to revitalize the deal.EU team submit ‘final text’ at talks to salvage 2015 Iran nuclear dealRead moreDespite his apparently mounting legal troubles, Trump has continued to have success in getting his preferred candidates through primaries, as yesterday’s elections show:Minnesota congresswoman Ilhan Omar, a member of the select progressive group in the House of Representative dubbed the Squad, eked out a closer-than-expected Democratic primary victory on Tuesday night against a centrist challenger who questioned the incumbent’s support for the “defund the police” movement.The evening went far smoother for another progressive, Becca Balint, who won the Democratic House primary in Vermont – positioning her to become the first woman representing the state in Congress.But Tim Michels, backed by Donald Trump, was projected to win the Republican nomination for governor of Wisconsin, a day after the FBI searched the former US president’s home in Florida reportedly seeking classified documents.Progressive Ilhan Omar wins closer-than-expected House primary in MinnesotaRead moreMore details are emerging about the FBI’s search on Monday of Trump’s Mar-a-Lago residence, including that agents were looking for papers that the former president may have unlawfully taken from the White House. Hugo Lowell reports:Federal investigators searched Donald Trump’s Mar-a-Lago residence in Florida on Monday bearing a warrant that broadly sought presidential and classified records that the justice department believed the former president unlawfully retained, according to two sources familiar with the matter.The criminal nature of the search warrant executed by FBI agents, as described by the sources, suggested the investigation surrounding Trump is firmly a criminal probe that comes with potentially far-reaching political and legal ramifications for the former president.And the extraordinary search, the sources said, came after the justice department grew concerned – as a result of discussions with Trump’s lawyers in recent weeks – that presidential and classified materials were being unlawfully and improperly kept at the Mar-a-Lago resort.The unprecedented raid of a former president’s home by FBI agents was the culmination of an extended battle between Trump and his open contempt for the Presidential Records Act of 1978 requiring the preservation of official documents, and officials charged with enforcing that law.FBI searched Trump’s home seeking classified presidential records – sourcesRead moreNo matter how he does it, a judge in Georgia yesterday ordered Donald Trump’s former lawyer Rudy Giuliani to appear in person before an Atlanta special grand jury looking into attempts to tamper with the state’s election results in 2020.According to The New York Times, Giuliani has claimed his health doesn’t allow him to fly to the state – an argument a judge wasn’t buying.“John Madden drove all over the country in his big bus, from stadium to stadium. So one thing we need to explore is whether Mr. Giuliani could get here without jeopardizing his recovery and his health. On a train, on a bus or Uber, or whatever it would be,” Robert C.I. McBurney, a superior court judge in Fulton County, said.Giuliani has been tentatively ordered to appear on August 17.Giuliani ordered to go before grand jury in Trump election meddling caseRead more More

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      Workers are being punished for inflation. The real culprit is corporate greed | Robert Reich

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      Workers are being punished for inflation. The real culprit is corporate greedRobert ReichBig corporations are using inflation as cover to raise prices. Yet the US Federal Reserve is raising interest rates – further hurting Americans The US Federal Reserve is aiming its powerful firehose at the living room but it’s the forest that’s ablaze. As a result, people may drown even as their house catches fire.This about sums up the sorry state of inflation-fighting in America.On Wednesday, the Fed – America’s central bank – raised interest rates by three-quarters of a percentage point, and signaled more rate increases to come, perhaps as soon as September.This followed a quarter-point increase in March, another half a point in May, and three-quarters of a point in June.On Thursday, the commerce department announced that the US economy had shrunk for the second quarter in a row.While not technically a recession (economists in and out of the White House have spent much of the last several days deconstructing the word “recession”), there’s no question but that the US economy is slowing.This, to put it mildly, makes no sense.Inflation has broken out all over the world – the consequence of pent-up demand from more than two years of pandemic and of limited supplies of everything from computer chips to wheat, due to difficulties getting the world economy up and running.Add in Putin’s war in Ukraine driving up world energy and food prices, and China’s lockdowns against Covid, and you get a perfect conflagration.That’s not all. Big corporations are busily raising their prices because consumers have so little choice. Corporations are using inflation as cover.Prices at the gas pump have drifted down a bit in the last month but are still eye-popping. (Here in California, I’m paying over $6 a gallon.)At the same time, big oil has hit a gusher. Exxon just reported second-quarter profits of $17.9bn, more than three times what it earned a year ago. Chevron’s profit more than tripled to $11.6bn.The two giant American oil companies aren’t pouring their profits back into energy, green or otherwise. They’re buying back their shares of stock to reward investors and executives.Or consider giant corporations selling consumer staples, such as Proctor & Gamble (maker of everything from Gillette razors to Tide detergent).On Friday, P&G reported another quarter of rising profits despite the increasing costs of raw materials and transportation. How did it manage this feat? By raising its prices even more.Meanwhile, half of the recent rise in grocery prices is from beef, pork and poultry. Just four large conglomerates control these markets, and they’ve been coordinating their price increases to score large profits – here again, using “inflation” as an excuse.If markets were competitive, companies would keep their prices down to prevent competitors from grabbing away customers. But they’re raising prices even as they rake in record profits.The Fed’s firehose is hitting none of this.Meanwhile, we’re told not to worry because the labor market is doing just fine.Rubbish.There are two aspects to the labor market – jobs and wages. The number of jobs has been increasing nicely. Let’s hope this continues. But hourly wages have plummeted, when adjusted for inflation.If the Fed keeps raising interest rates – even if the national economy avoids an official “recession” – most workers will fall even further behind.The living standards of nearly everyone who borrows money are already dropping. Because of the Fed’s rate hikes, the average rate on credit card debt has reached 17.25% (up from 16.34% in March, before the Fed began raising interest rates). Rates on student loans, car loans and mortgages are also rising.The government should use a firehose better aimed at the conflagration, which won’t so badly burden the bottom 80%.For starters, impose a temporary windfall profits tax on big oil, on giant sellers of consumer staples and on big ag. This would reduce their incentive to engage in price gouging.Bolder antitrust enforcement – even the threat to block mergers and break up giant companies – could also reduce their ardor to raise prices.If Congress refuses to allow the government to use its bargaining power to reduce the prices of pharmaceuticals, big pharma is a good candidate for temporary price controls. (FDR controlled prices via executive order.)Finally, higher taxes on the wealthy – such as Democrats seem finally ready to enact – will help dampen total demand, thereby dousing some of the inflation fire.The Fed’s single tool for fire-fighting – interest-rate increases – is aimed in the wrong direction. It’s hitting working people rather than corporations responsible for most price increases (over and above the rising costs of global supplies).We need to fight rising prices, not working people.
      Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
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