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A populist undercurrent running through President Biden’s State of the Union address and churned up by turbulent conditions in the global economy is resonating with Americans.

It’s the feeling that people are “getting ripped off,” as Biden put it, by an economy that isn’t “fair” – a word that appeared in Biden’s prepared remarks nine different times.

From pesky fees charged by big retail banks to deep, structural imbalances in the U.S. tax system that favor wealthy people and large corporations, Biden’s speech hit on a perennial frustration in American economic life: how the deck feels stacked by big companies and institutions against ordinary taxpayers and consumers.

“If we – the poorer people, the middle class – pay tax, the big companies are supposed to do the same. This is right. So I think the President [said] something that is true. We need more tax to be paid by the big companies and then that money can go back to the poorer people to help people,” Jean-Michel Dossous, a New York City cab driver who watched the State of the Union on his phone, told The Hill.

Returning to the notion of economic fairness again and again, Biden touted numerous initiatives to bring down prices after a year of high inflation that has harassed American pocketbooks and that fiscal authorities, like Congress and the president, have limited powers to fight.

“Big Pharma has been unfairly charging people hundreds of dollars [for insulin] – and making record profits,” Biden said during his speech on Tuesday, praising the $35 insulin price cap for seniors who use Medicare that was passed as part of Democrats’ Inflation Reduction Act last year. Price caps have only been used minimally so far in the government’s battle against high prices, which is mostly the responsibility of the Federal Reserve.

He also touted his administration’s effort to fight so-called “junk fees,” expensive penalties charged by banks, financial firms and other businesses for reasons such as late payments, insufficient funds or an attempt to cancel a service.

“I know how unfair it feels when a company overcharges you and gets away with it,” he said about the overdraft fees charged by banks, a commercial practice he called on Congress to curtail with new legislation.

The Biden administration also announced last week an effort to cap bank overdraft fees at $8 through a new rule to be issued by the Consumer Financial Protection Bureau (CFPB).

Tatiana Nazario, an administrative assistant at the Newark, New Jersey, public library told The Hill she “absolutely” had the feeling she was getting ripped off by big banks and that she knew people who’d gotten locked into a cycle of debt due to overdraft fees.

While some major banks have already phased-out overdraft fees, bank lobbyists and advocates for the sector call those penalties a useful and popular way for consumers to smooth out expenses.

“If you get one overdraft fee and it stays in your account for a couple of days, they overdraft you again and again and again until you pay it. If you’re already broke and you’re waiting on that direct deposit to hit, by the time it hits you’re not going to have much left,” Nazario said in an interview.

“People are living off of payday loans, and now they’re promoting these apps … where you get payday loans rather than coming up with better solutions for us,” she added.

The CFPB describes payday loans as short-term, high-cost loans for small amounts of money and cautions that people’s “ability to repay the loan … is generally not considered by a payday lender.”

Of all the mentions of unfairness in the economy in Biden’s State of the Union, perhaps the point he hammered home the most was about unfairness in the tax code.

“I think a lot of you at home agree with me that our present tax system is simply unfair. The idea that in 2020, 55 of the biggest companies in America made $40 billion in profits and paid zero in federal income taxes? That’s simply not fair,” Biden said.

Steve Taylor, an adjunct English professor at the City University of New York, said he felt the same way, arguing that rich people and corporations need to be paying more.

“I think they should pay their fair share. They’re getting away with murder. These guys are not paying any taxes. I mean, come on. I pay taxes. What’s the median for working people, like 25 percent? Come on. What’s going on?” he said in an interview.

Critics of corporate tax hikes argue that big businesses still pay billions in other types of taxes outside of taxed income.

The views of Taylor and Jean-Michel Doussos on the tax system are held by a majority of Americans, according to a variety of public opinion polls. 

Fifty-two percent of Americans believe the government should “redistribute wealth by heavy taxes on the rich,” according to one such poll published by Gallup last August, while 47 percent feel the opposite. Prior to the 2008 financial crisis, those preferences were by-and-large flipped, with more Americans disagreeing with the idea of redistributing rich people’s wealth with taxes than agreeing.

A 2020 poll by Reuters/Ipsos found that nearly two-thirds of respondents believed “the very rich should contribute an extra share of their total wealth each year to support public programs.” Support for that position was stronger among Democrats, at 77 percent, but 53 percent of Republicans also stood behind it.

The difference between how workers and wages are taxed and how profits and businesses are taxed has been coined the “two-tiered tax system” by other members of the Biden administration, including Treasury Secretary Janet Yellen.

“At the core of the problem is a discrepancy in the ways types of income are reported to the IRS: opaque income sources frequently avoid scrutiny while wages and federal benefits are typically subject to nearly full compliance. This two-tiered tax system is unfair and deprives the country of resources to fund core priorities,” she said in 2021. Biden has big plans for junk fees, a billionaire’s tax and paid leave. But can he actually enact them? Yahoo announces layoffs of 20 percent of staff by end of 2023

Tom Ankner, a librarian in Newark, New Jersey, said he appreciated hearing the message during Biden’s speech that the economy could treat people more fairly.

“I liked the fact that he was taking that line,” Ankner told The Hill. “Because that’s where I’d like [to see changes]. That’s the direction I’d like to see the country go.”

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Angelina Jolie on her legacy, family and new film Maria

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Angelina Jolie on her legacy, family and new film Maria

Angelina Jolie says although she appreciates being an artist, she would prefer for her legacy to be “a good mother” and to be known for her “belief in equality and human rights”.

The Oscar-winning actress stars as Maria Callas in the new Pablo Larrain film about the opera singer’s life.

Pic: StudioCanal
Image:
Pic: StudioCanal

She has called Maria “the hardest” and “most challenging” role she has had in her career and put months of preparation into immersing herself into the world of opera.

Jolie, who recently reached a divorce settlement with actor Brad Pitt, told Sky News: “To be very candid, it was the therapy I didn’t realise I needed. I had no idea how much I was holding in and not letting out.

“So, the challenge wasn’t the technical [side of opera], it was an emotional experience to find my voice, to be in my body, to express. You have to give every single part of yourself.”

The biopic combines the voice of the Maleficent actress with recordings of Maria Callas.

Jolie believes it “would be a crime to not have [Callas’] voice through this because, in many ways, she is very present in this film”.

More on Angelina Jolie

Who was Maria Callas?

Born in New York in 1923, Maria Callas was the daughter of Greek immigrants who moved back to Athens at the age of 13 with her mother and sister.

After enrolling at the Athens Conservatory, she made her professional debut at 17 and went on to become one of the most famous faces of opera, travelling around the world and performing at Covent Garden in London, The Met in New York and La Scala in Milan.

Callas’s final operatic performance took place at Covent Garden in 1965 when she was 41 but she continued to work conducting master classes at Juilliard School, doing concert tours and starring in the 1969 film Medea.

Written by Peaky Blinders creator Steven Knight, Maria focuses on the artist’s final years in the 1970s when she moved to Paris and disappeared from public view.

She died on 16 September 1977 at the age of 53.

Pic: StudioCanal
Image:
Pic: StudioCanal

Jolie on changing motivations as an actor

Maria follows the life of an artist fully consumed by the art she creates and even remarks that “happiness never developed a beautiful melody”.

Reflecting on her own life in the spotlight, Jolie said she noticed her own career motivations change over the years.

“There’s this kind of study of being human that we do when we create, and we communicate with an audience because our work is not in isolation – it’s a connection.

“I think when I was younger, I had different questions about being human and different feelings and now as I’ve gotten older, I understand some things and now I have different questions.

“It’s a matter of life, right? And so maybe that’s interesting that this now is a character really contemplating death and really contemplating the toll of certain things in life that I, of course, couldn’t have understood in my 20s”.

Jolie at the New York Film Festival in September with three of her children (L-R) Pax, Zahara and Maddox. Pic: AP
Image:
Jolie at the New York Film Festival in September with three of her children (L-R) Pax, Zahara and Maddox. Pic: AP

A family affair

Two of Jolie’s children, Maddox and Pax, took on production assistant roles during the filming of Maria and witnessed their mother perform opera for the first time in public.

She says the film allowed them to create new experiences together and for her children to see her approach to playing a difficult role.

“Everyone in my home, we all give each other space to be who we are and we’re all different.

“I’m the mom, but I’m also an artist and a person and so my family has been very kind and gives me their understanding. They make fun of me, and they support me and just as you’d hope it would be.”

She adds: “When you play somebody who is dealing with so much pain, it’s very important to come home to some kindness.”

Maria is in cinemas now.

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LA fires: Data and videos reveal scale of ‘most destructive’ blazes in modern US history

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LA fires: Data and videos reveal scale of 'most destructive' blazes in modern US history

The fires that have been raging in Los Angeles County this week may be the “most destructive” in modern US history.

In just three days, the blazes have covered tens of thousands of acres of land and could potentially have an economic impact of up to $150bn (£123bn), according to private forecaster Accuweather.

Sky News has used a combination of open-source techniques, data analysis, satellite imagery and social media footage to analyse how and why the fires started, and work out the estimated economic and environmental cost.

More than 1,000 structures have been damaged so far, local officials have estimated. The real figure is likely to be much higher.

“In fact, it’s likely that perhaps 15,000 or even more structures have been destroyed,” said Jonathan Porter, chief meteorologist at Accuweather.

These include some of the country’s most expensive real estate, as well as critical infrastructure.

Beachfront properties are left destroyed by the Palisades Fire, Thursday, Jan. 9, 2025 in Malibu, Calif. (AP Photo/Mark J. Terrill)
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Beachfront properties in Malibu were destroyed by the Palisades fire. Pic: PA

Accuweather has estimated the fires could have a total damage and economic loss of between $135bn and $150bn.

“It’s clear this is going to be the most destructive wildfire in California history, and likely the most destructive wildfire in modern US history,” said Mr Porter.

“That is our estimate based upon what has occurred thus far, plus some considerations for the near-term impacts of the fires,” he added.

The calculations were made using a wide variety of data inputs, from property damage and evacuation efforts, to the longer-term negative impacts from job and wage losses as well as a decline in tourism to the area.

The Palisades fire, which has burned at least 20,000 acres of land, has been the biggest so far.

Sentinel
Sentinel satellite imagery of the Pacific Palisades from space, taken around 15 minutes after the Palisades Fire was first reported. The red indicates the area of land that had already burned. Pic: Sentinel Hub
Image:
Sentinel satellite imagery of the Pacific Palisades from space, taken around 15 minutes after the Palisades fire was first reported. The red indicates the area of land that had already burned. Pic: Sentinel Hub

Satellite imagery and social media videos indicate the fire was first visible in the area around Skull Rock, part of a 4.5 mile hiking trail, northeast of the upscale Pacific Palisades neighbourhood.

These videos were taken by hikers on the route at around 10.30am on Tuesday 7 January, when the fire began spreading.

At about the same time, this footage of a plane landing at Los Angeles International Airport was captured. A growing cloud of smoke is visible in the hills in the background – the same area where the hikers filmed their videos.

The area’s high winds and dry weather accelerated the speed that the fire has spread. By Tuesday night, Eaton fire sparked in a forested area north of downtown LA, and Hurst fire broke out in Sylmar, a suburban neighbourhood north of San Fernando, after a brush fire.

These images from NASA’s Black Marble tool that detects light sources on the ground show how much the Palisades and Eaton fires grew in less than 24 hours.

 

On Tuesday, the Palisades fire had covered 772 acres. At the time of publication of Friday, the fire had grown to cover nearly 20,500 acres, some 26.5 times its initial size.

The Palisades fire was the first to spark, but others erupted over the following days.

At around 1pm on Wednesday afternoon, the Lidia fire was first reported in Acton, next to the Angeles National Forest north of LA. Smaller than the others, firefighters managed to contain the blaze by 75% on Friday.

Fires map

On Thursday, the Kenneth fire was reported at 2.40pm local time, according to Ventura County Fire Department, near a place called Victory Trailhead at the border of Ventura and Los Angeles counties.

This footage from a fire-monitoring camera in Simi Valley shows plumes of smoke billowing from the Kenneth fire.

Sky News analysed infrared satellite imagery to show how these fires grew all across LA.

The largest fires are still far from being contained, and have prompted thousands of residents to flee their homes as officials continued to keep large areas under evacuation orders. It’s unclear when they’ll be able to return.

“This is a tremendous loss that is going to result in many people and businesses needing a lot of help, as they begin the very slow process of putting their lives back together and rebuilding,” said Mr Porter.

“This is going to be an event that is going to likely take some people and businesses, perhaps a decade to recover from this fully.”


The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

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They are hurting but managing to find hope in ‘tomorrow’ – the residents who have lost everything in the LA fires

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They are hurting but managing to find hope in 'tomorrow' - the residents who have lost everything in the LA fires

They are the displaced and there are tens of thousands of them, 600 in an evacuation centre we visited.

From elderly people who fled without their medication, to pregnant mothers desperate to escape the smoke, they had nowhere else to go.

Jim Mayfield, who has lived in the northern suburb of Altadena for 50 years, wept as he told me his dogs, Monkey and Coca, were all he had left.

He said: “The fire was coming down, a ball of fire, it hadn’t made it to my house, but then I woke up and I seen it so I had to start evacuating.

“I had to grab my dogs, I didn’t have enough water and my house is burned down to the ground.”

Thousands of buildings have been burned to the ground
Image:
Thousands of buildings have been burned to the ground since the fires in Los Angeles started

Sheila Kraetzel, another elderly resident, relived the sense of terror as homes were engulfed by the flames.

She said: “I smelt smoke, I was sleeping, and my dog alerted me that there was trouble.

More on California Wildfires

“When I looked outside, there were embers floating across my yard.

“My whole neighbourhood is gone.”

“It was a beautiful, unique place,” she added, smiling.

Thousands of firefighters have been working around the clock to contain the wind-driven fires in California
Image:
Firefighters have been working around the clock to contain the wind-driven fires

Asked how she could smile, she fought back tears and replied: “Well, there’s tomorrow you know.”

How anyone could find hope amid the destruction we have witnessed here is beyond me.

Read more:
Scale of ‘most destructive’ blazes in modern US history
In pictures: Before and after the blazes
What caused the fires?

There are people handing out food and water, medical staff doing what they can. Volunteers have rallied from far and near.

Buildings destroyed in fires

One of them, Stephanie Porter, told me it felt “heavy” inside the centre.

“You walk through and see the despair on people’s faces, not knowing what their next step is, not knowing if their house is still standing,” she said.

“I had to take a few moments… and kind of cry, and then you go back to serve.

“It just breaks your heart.”

Three miles up the road, Altadena resembles a war zone, but residents have not been allowed to return.

When they finally do, they’ll discover there’s nothing left of the material lives they left behind.

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