“This is just another attempt by Paul Ryan to pretend that the biggest problem with the federal deficit is lazy poor people, not the $1.5 trillion tax cut he and his colleagues just gave to the richest people in the country.”
A grocery store in Missouri informs customers that food stamps are accepted. (Photo: Paul Sableman/Flickr/cc)
With the Poor People’s Campaign protesting “policy violence against families and children” outside the Capitol Building, House Republicans on Thursday forced through a “shameful” and “cruel” Farm Bill that would deprive about 2 million Americans of the Supplemental Nutrition Assistance Program (SNAP), often called food stamps.
“It’s a deliberate slap in the face to the millions of low-income Americans who rely on SNAP benefits to survive,” declared Morris Pearl, chair of Patriotic Millionaires. “We don’t want to live in a country where the government allows its citizens to starve, and neither should anyone else.” Continue reading →
The U.S. Supreme Court upheld a lower court ruling, on June 11, that asked Washington state to remove culverts that block the migration of salmon. The ruling has significant implications for Northwest Coast tribes, whose main source of food and livelihood is salmon.
While senators demand answers from the Pentagon, anti-war advocates are calling the attack on Hodeida a failure by the U.S. to stop it and demanding an end to American military support for the coalition
Ignoring international aid groups’ warnings that an attack on the Yemeni city of Hodeida, which is held by Houthi rebels, could exacerbate hunger in an impoverished and war-torn nation already on the brink of famine, Saudi-led U.S.-backed coalition forces continued a sweeping assault on the Red Sea port city Saturday, reportedly seizing control of an airport.
Since the fighting started earlier this week, thousands of Hodeida’s 600,000 civilians have evacuated and hundreds of people have been killed. The port city is the main conduit through which about 70 percent of international aid reaches Yemenis, many of whom are battling starvation and outbreaks of infectious diseases such as cholera. Continue reading →
In a move that could block the path of the Keystone XL pipeline, a couple in Nebraska signed over a portion of farmland to the Ponca Tribe. (Photo: @BoldNebraska/Twitter)
In a move that could challenge the proposed path of TransCanada’s Keystone XL pipeline—and acknowledges the U.S. government’s long history of abusing Native Americans and forcing them off their lands—a Nebraska farm couple has returned a portion of ancestral land to the Ponca Tribe.
“The United Nations says that when people are denied the access to basic human services—like electric power, like water, like food, like appropriate medical care—it is like a violation of human rights.”
Rally for Puerto Rico hurricane relief at the Capitol. Screenshot: YouTube
San Juan Mayor Carmen Yulin Cruz tore into the Trump administration’s response to the ongoing catastrophe on Puerto Rico following Hurricane Maria and denounced the president’s “total neglect.”
Her comments to MSNBC on Sunday follow a Harvard study estimating that the death toll as a result of the storm was in the range of 793 to 8,498 and deeming the original official estimate of 64 excess deaths “a substantial underestimate.” Continue reading →
“Despite significant recovery successes,” according to the U.S. Fish & Wildlife Service, the black-footed ferret “remains one of the most endangered mammals in North America.” (Photo: Kimberly Fraser/USFWS Mountain-Prairie/Flickr/cc)
In honor of Endangered Species Day on Friday, 1,452 American scientists sent a letter to Congress demanding that they “protect the scientific foundation of the Endangered Species Act (ESA) and reject any attempts to weaken or compromise the role of science in protecting species.”
The letter (pdf) comes amid the Trump administration and Republican lawmakers‘ war on science, and particularly in response to their attempts—including through the “disastrous” GOP Farm Bill that was defeated on Friday—to undercut or strip away key elements of the ESA, landmark legislation enacted in 1973 that aims “to conserve to the extent practicable the various species of fish or wildlife and plants facing extinction.” Continue reading →
“Right now I need SNAP to get by,” Tina Keys, a mother from Washington, explained at a #HandsOffSnap rally outsite the Captiol on May 8. (Photo: @TalkPoverty/Twitter)
While social welfare advocates have launched a #HandsOffSNAP campaign to protest Republican lawmakers’ latest attempt to make Supplemental Nutrition Assistance Program (SNAP) benefits—often called food stamps—less accessible, President Donald Trump is reportedly planning to pressure them to include even stricter work requirements in the 2018 Farm Bill.
“Trump is expected to tell senior lawmakers in a meeting this week that he will veto the farm bill if it doesn’t include tighter work requirements for people receiving food stamps,” two people familiar with the president’s deliberations told the Wall Street Journal. Continue reading →
In Trump’s statement released by White House on Sunday, the president said, “We know that it is impossible for humans to flourish without clean air, land, and water. We also know that a strong, market-driven economy is essential to protecting these resources.” (Photo: Instagram/@jaaawsh)
In a giant “middle finger” to the planet on Earth Day, President Donald Trump on Sunday put out a statement in which he called for an even deeper evisceration of environmental protections as he claimed a “market-based economy” was essential to protecting natural resources and also reaffirmed his commitment to “removing unnecessary and harmful regulations that restrain economic growth.”
As experts and environmentalists have detailed ad nauseam, Trump—with the dedicated help from his EPA administrator Scott Pruitt—has been relentless, if not consistently successful, in destroying environmental protections and undermining any and all quality efforts designed to protect the nation’s air, water, and natural beauty. In addition, the president has become the leader of a Republican Party that continues its cynical denial of the threat posed by global warming and the associated climate crisis. Continue reading →
(L-R) Executive Vice President for the Agriculture Division of the E. I. DuPont de Nemours and Company James Collins, President and CEO of Dow AgroSciences, LLC, Tim Hassinger, CEO of Syngenta International AG Erik Fyrwald, President and CEO of Bayer CropScience North America Jim Blome, and Executive Vice President and Chief Technology Officer of the Monsanto Company Robb Fraley testify during a hearing before the Senate Judiciary Committee September 20, 2016 on Capitol in Washington, DC. The committee held a hearing on ‘Consolidation and Competition in the U.S. Seed and Agrochemical Industry.’Photo: Zimbio
Watchdog groups sounded alarms on Monday after the Wall Street Journalreported that the proposed mega-merger of Bayer and Monsanto has cleared its final regulatory hurdle in the United States.
The reported approval from the Justice Department came “after the companies pledged to sell off additional assets,” the Journal reported, and despite concerns raised by hundreds of food and farm groups. It also comes weeks after the European Commission gave its thumbs up. Continue reading →
The tariffs are meant to address two problems: intellectual property theft by China and a steep and persistent trade deficit.
As an economist and expert in international trade, I don’t see how the proposed tariffs will resolve either one. In fact, it’s more likely that they will create two new problems by hurting both consumers and businesses.
IP theft and trade deficits
The administration formally justified its tariffs by invoking Section 301 of the Trade Act of 1974, which allows the president to impose tariffs on countries in violation of international trade deals.
Intellectual property theft has been a major complaint of American companies doing business in China for decades. Sometimes this theft occurs through illicit means, such as industrial espionage. It also occurs through legal channels, such as when U.S. companies are forced to form a joint venture with a Chinese business. In other cases, technology transfers are a precondition of doing business in China.
The other problem that has long irked the president is the significant trade deficit. Since the U.S. normalized trade relations with China in 2000, the deficit ballooned from less than $84 billion to over $375 billion in 2017.
This “China shock” of cheap goods has caused considerable disruption in the U.S. economy. The labor market has been surprisingly slow to adjust, leading affected workers to earn far less money over a lifetime.
The wrong solutions
It remains to be seen, however, whether the tariffs will alleviate either problem.
The administration’s calculation seems to be that China will back down on intellectual property theft if faced with less access to U.S. markets.
But China is less dependent on U.S. trade now than it was a decade ago, making its economy resilient to these sorts of punitive measures. The U.S. accounted for 18.4 percent of Chinese exports in 2016, down from 21 percent in 2006.
The U.S. likely would have better luck resolving this problem at the WTO, which China joined in 2001 and must abide by its rulings. The best part about a WTO ruling is that it would affect all of China’s exports, not just those to the U.S.
The U.S. personal savings rate has fallen steadily since the late 1970s. At the same time, the government has run persistently large budget deficits, both of which have increased the level of borrowing in the U.S. economy.
As a result, foreign investment, particularly from China, has become increasingly critical to financing U.S. economic growth. This is great news in terms of helping Americans buy cheap Chinese goods and the government finance its budget deficit. But all that foreign cash going into the financial market isn’t being used to buy the stuff Americans are producing, like Harley Davidson motorcycles and Iowa corn.
This results in lower exports and a higher trade deficit. Tariffs will not change this reality.
Two new problems
While the full details of the tariffs have yet to be released, it’s clear they’ll cause at least two immediate problems.
One is that U.S. consumers will be hurt. The typical consumer has about $260 in extra purchasing power as a result of trade with China. Those benefits, which disproportionately go toward working-class Americans, will fall due to the U.S. tariffs, as American importers will pass some of their increased costs along to consumers.
Particularly vulnerable to Chinese retaliation are the pork and soybean industries, which are concentrated in the Trump-friendly Midwest. This list could grow if a trade war with China escalates.
A broader concern is that, by acting unilaterally, the Trump administration is undermining the broader system that has facilitated the growth of international trade and adjudicated grievances between countries since World War II.
While far from perfect, organizations such as the WTO have limited the scope of trade wars since the chaos of the 1930s. Failing to uphold these institutions could have major consequences in the future.