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Control of the House of Representatives could teeter precariously for years as each party consolidates its dominance over mirror-image demographic strongholds.

Thats the clearest conclusion of a new analysis of the demographic and economic characteristics of all 435 congressional districts, conducted by the Equity Research Institute at the University of Southern California in conjunction with The Atlantic.

Based on census data, the analysis finds that Democrats now hold a commanding edge over the GOP in seats where the share of residents who are nonwhite, the share of white adults with a college degree, or both, are higher than the level in the nation overall. But Republicans hold a lopsided lead in the districts where the share of racial minorities and whites with at least a four-year college degree are both lower than the national leveland that is the largest single bloc of districts in the House.

This demographic divide has produced a near-partisan stalemate, with Republicans in the new Congress holding the same narrow 222-seat majority that Democrats had in the last one. Both sides will struggle to build a much bigger majority without demonstrating more capacity to win seats whose demographic and economic profile has mostly favored the other. The coalitions are quite stretched to their limits, so there is just not a lot of space for expansion, says Lee Drutman, a senior fellow in the political-reform program at New America.

The widening chasm between the characteristics of the districts held by each party has left the House not only closely divided, but also deeply divided.

Through the late 20th and early 21st centuries, substantial overlap remained between the kinds of districts each party held. In those years, large numbers of Democrats still represented mostly white, low-income rural and small-town districts with few college graduates, and a cohort of Republicans held well-educated, affluent suburban districts. That overlap didnt prevent the House from growing more partisan and confrontational, but it did temper that trend, because the small-town blue dog Democrats and suburban gypsy moth Republicans were often the members open to working across party lines.

Now the parties represent districts more consistently divided along lines of demography, economic status, and geography, which makes finding common ground difficult. The parties intensifying separation is a recipe for polarization, Manuel Pastor, a sociology professor at USC and the director of the Equity Research Institute, told me.

To understand the social and economic characteristics of the House seats held by each party, Jeffer Giang and Justin Scoggins of the Equity Research Institute analyzed five-year summary results through 2020 from the Census Bureaus American Community Survey.

The analysis revealed that along every key economic and demographic dimension, the two parties are now sorted to the extreme in the House districts they represent. These people are coming to Washington not from different districts, but frankly different planets, says former Representative Steve Israel, who chaired the Democratic Congressional Campaign Committee.

Among the key distinctions:

*More than three-fifths of House Democrats hold districts where the share of the nonwhite population exceeds the national level of 40 percent. Four-fifths of House Republicans hold districts in which the minority share of the population is below the national level.

*Nearly three-fourths of House Democrats represent districts where the share of white adults with a college degree exceeds the national level of 36 percent. More than three-fourths of Republicans hold districts where the share of white college graduates trails the national level.

*Just over three-fifths of House Democrats hold districts where the share of immigrants exceeds the national level of 14 percent; well over four-fifths of House Republicans hold districts with fewer immigrants than average.

*Perhaps most strikingly, three-fifths of Democrats now hold districts where the median income exceeds the national level of nearly $65,000; more than two-thirds of Republicans hold districts where the median income falls beneath the national level.

Sorting congressional districts by racial diversity and education produces the four quadrants of Congress: districts with high levels of racial diversity and white education (hi-hi districts), districts with high levels of racial diversity and low levels of white education (hi-lo districts), districts with low levels of diversity and high levels of white education (lo-hi districts), and districts with low levels of diversity and white education (lo-lo districts). (The analysis focuses on the education level among whites, and not the entire population, because education is a more significant difference in the political behavior of white voters than of minority groups.)

Read: The GOPs control of congress is only getting stronger

Looking at the House through that lens shows that the GOP has become enormously dependent on one type of seat: the lo-lo districts revolving around white voters without a college degree. Republicans hold 142 districts in that category (making up nearly two-thirds of the partys House seats), compared with just 21 for Democrats.

The intense Republican reliance on this single type of mostly white, blue-collar district helps explain why the energy in the party over recent years has shifted from the small-government arguments that drove the GOP in the Reagan era toward the unremitting culture-war focus pursued by Donald Trump and Florida Governor Ron DeSantis. Many of the most militantly conservative House Republicans represent these lo-lo districtsa list that includes Marjorie Taylor Greene of Georgia, Lauren Boebert of Colorado, Matt Gaetz of Florida, Ralph Norman of South Carolina, and Scott Perry of Pennsylvania.

The right accuses the left of identity politics, when the analysis of this data suggests that identity politics has become the core of the Republican Party, Pastor told me.

House Democrats are not nearly as reliant on seats from any one of the four quadrants. Apart from the lo-lo districts, they lead the GOP in the other three groupings. Democrats hold a narrow 3730 lead over Republicans in the seats with high levels of diversity and few white college graduates (the hi-lo districts). These seats include many prominent Democrats representing predominantly minority areas, including Jim Clyburn of South Carolina, Terri Sewell of Alabama, and Ruben Gallego of Arizona. At the same time, these districts have been a source of growth for Republicans: The current Democratic lead of seven seats is way down from the partys 28-seat advantage in 2009.

Democrats hold a more comfortable 5735 edge in the lo-hi districts with fewer minorities and a higher share of white adults with college degrees than average. These are the mostly white-collar districts represented by leading suburban Democrats, many of them moderates, such as Angie Craig of Minnesota, Seth Moulton of Massachusetts, Sharice Davids of Kansas, and Mikie Sherrill of New Jersey. A large share of the House Republicans considered more moderate also represent districts in this bloc.

The core of Democratic strength in the House is the hi-hi districts that combine elevated levels of both racial minorities and college-educated whites. Democrats hold 98 of the 113 House seats in this category. Many of the partys most visible members represent seats fitting this description, including former Speaker Nancy Pelosi; the current House Democratic leader, Hakeem Jeffries; former House Intelligence Committee chair Adam Schiff; and Alexandria Ocasio-Cortez. These are also the strongholds for Democrats representing what Pastor calls the places where diversity is increasing the most: inner suburbs in major metropolitan areas. Among the members representing those sorts of constituencies are Lucy McBath of Georgia, Abigail Spanberger of Virginia, and Ro Khanna and Zoe Lofgren of California.

Though Democrats are not as dependent on any single quadrantas Republicans are on the low-diversity, low-education districts, each party over the past decade has been forced to retreat into its demographic citadel. As Drutman notes, thats the result of a succession of wave elections that has culled many of the members from each side who had earlier survived in districts demographically and economically trending toward the other.

The first victims were the so-called blue-dog Democrats, who had held on to lo-lo districts long after they flipped to mostly backing Republican presidential candidates. Those Democrats from rural and small-town areas, many of them in the South, had started declining in the 90s. Still, as late as 2009, during the first Congress of Barack Obamas presidency, Republicans held only 20 more seats than Democrats did in the lo-lo quadrant. Democrats from those districts composed almost as large a share of the total party caucus in that Congress as did members from the hi-hi districts.

But the 2010 Tea Party landslide virtually exterminated the blue dogs. After that election, the GOP edge in the lo-lo districts exploded to 90 seats; it reached 125 seats after redistricting and further GOP gains in the 2014 election. Today the districts low in diversity and white-education levels account for just one in 10 of all House Democratic seats, and the hi-hi seats make up nearly half. The seats low in diversity and high in white education (about one-fourth) and those high in diversity and low in white education (about one-sixth), provide the remainder.

For House Republicans, losses in the 2018 midterms represented the demographic bookend to their blue-collar, small-town gains in 2010. In 2018, Democrats, powered by white-collar antipathy toward Trump, swept away a long list of House Republicans who had held on to well-educated suburban districts that had been trending away from the GOP at the presidential level since Bill Clintons era.

Today, districts with a higher share of white college graduates than the nation overall account for less than one-fourth of all GOP seats, down from one-third in 2009. The heavily blue-collar lo-lo districts have grown from just over half of the GOP conference in 2009 to their current level of nearly two-thirds. (The share of Republicans in seats with more minorities and fewer white college graduates than average has remained constant since 2009, at about one in seven.)

Each party is pushing an economic agenda that collides with the immediate economic interests of a large portion of its voters. The party leadership has not caught up with the coalitions, says former Representative Tom Davis, who served as chair of the National Republican Congressional Committee.

For years, some progressives have feared that Democrats would back away from a populist economic agenda if the party grew more reliant on affluent voters. That shift has certainly occurred, with Democrats now holding 128 of the 198 House districts where the median income exceeds the national level. But the party has continued to advocate for a redistributionist economic agenda that seeks higher taxes on upper-income adults to fund expanded social programs for working-class families, as proposed in President Joe Bidens latest budget. The one concession to the new coalition reality is that Democrats now seek to exempt from higher taxes families earning up to $400,000a level that earlier generations of Democrats probably would have considered much too high.

Republicans face more dissonance between their reconfigured coalition and their agenda. Though the GOP holds 152 of the 237 districts where the median income trails the national level, the party continues to champion big cuts in domestic social programs that benefit low-income families while pushing tax cuts that mostly flow toward the wealthy and corporations. As former Democratic Representative David Price, now a visiting fellow at Duke Universitys Sanford School of Public Policy, says, there is a pretty profound disconnect between the GOPs economic agenda and the economic deprivation and what you would think would be a pretty clear set of needs of the districts the party represents.

Each of these seeming contradictions underscores how cultural affinity has displaced economic interest as the most powerful glue binding each sides coalition. Republicans like Davis lament that their party can no longer win culturally liberal suburban voters by warning that Democrats will raise their taxes; Democrats like Price express frustration that their party cant win culturally conservative rural voters by portraying Republicans as threats to Social Security and Medicare.

The advantage for Republicans in this new alignment is that there are still many more seats where whites exceed their share of the national population than seats with more minorities than average. Likewise, the number of seats with fewer white college graduates than the nation overall exceeds the number with more.

That probably gives Republicans a slight advantage in the struggle for House control over the next few years. Of the 22 House seats that the nonpartisan Cook Political Report currently rates as toss-ups or leaning toward the other party in 2024, for instance, 14 have fewer minorities than average and 12 have fewer white college graduates. On the wedge issues, a lot of the swing districts look a little bit more like Republican districts than Democratic districts, says Drutman, whose own recent analysis of House districts used an academic polling project to assess attitudes in all 435 seats.

But as Pastor points out, Republicans are growing more dependent on those heavily white and non-college-educated districts as society overall is growing more diverse and better educated, especially in younger generations. Its hard to see how the Republicans can grow their coalition, Pastor told me, with the militant culture-war messages they are using to cement their current coalition.

Davis, the former NRCC chair, also worries that the GOP is relying too much on squeezing bigger margins from shrinking groups. The way out of that trap, he argues, is for Republicans to continue advancing from the beachheads they have established in recent years among more culturally conservative voters of color, especially Latino men.

Read: Are latinos really realigning toward Republicans?

But Republicans may struggle to make sufficient gains with those voters to significantly shift the balance of power in the House: Though the party last year improved among Latinos in Florida, the results in Arizona, Nevada, and even Texas showed the GOP still facing substantial barriers. The Trump-era GOP also continues to face towering resistance in well-educated areas, which limits any potential recovery there: In 2020, Biden, stunningly, carried more than four-fifths of the House districts where the share of college-educated white adults exceeds the national level. Conversely, despite Bidens emphasis on delivering tangible economic benefits to working families, Democrats still faced enormous deficits with blue-collar white voters in the midterms. With many of its most vulnerable members defending such working-class terrain, Democrats could lose even more of those seats in 2024.

Constrained by these offsetting dynamics, neither party appears well positioned to break into a clear lead in the House. The two sides look more likely to remain trapped in a grinding form of electoral trench warfare in which they control competing bands of districts that are almost equal in number, but utterly antithetical in their demographic, economic, and ideological profile.

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Tesla Semi suffers more delays and ‘dramatic’ price increase

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Tesla Semi suffers more delays and 'dramatic' price increase

According to a Tesla Semi customer, the electric truck program is suffering more delays and a price increase that is described as “dramatic.”

Tesla Semi has seen many delays, more than any other vehicle program at Tesla.

It was initially unveiled in 2017, and CEO Elon Musk claimed that it would go into production in 2019.

In late 2022, Tesla held an event where it unveiled the “production version” of the Tesla Semi and delivered the first few units to a “customer-partner”: PepsiCo.

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Tesla Semi PepsiCo truck u/Tutrifor
Tesla Semi Image credit: u/Tutrifor

More than 3 years later, the vehicle never went into volume production. Instead, Tesla only ran a very low volume pilot production at a factory in Nevada and only delivered a few dozen trucks to customers as part of test programs.

But Tesla promised that things would finally happen for the Tesla Semi this year.

Tesla has been building a new high-volume production factory specifically for the Tesla Semi program in a new building next to Gigafactory Nevada.

The goal was to start production in 2025, start customer deliveries, and ramp up to 50,000 trucks yearly.

Now, Ryder, a large transportation company and early customer-partner in Tesla’s semi truck program, is talking about further delays. The company also refers to a significant price increase.

California’s Mobile Source Air Pollution Reduction Review Committee (MSRC) awarded Ryder funding for a project to deploy Tesla Semi trucks and Megachargers at two of its facilities in the state.

Ryder had previously asked for extensions amid the delays in the Tesla Semi program.

In a new letter sent to MSRC last week and obtained by Electrek, Ryder asked the agency for another 28-month delay. The letter references delays in “Tesla product design, vehicle production” and it mentions “dramatic changes to the Tesla product economics”:

This extension is needed due to delays in Tesla product design, vehicle production and dramatic changes to the Tesla product economics. These delays have caused us to reevaluate the current Ryder fleet in the area.

The logistics company now says it plans to “deploy 18 Tesla Semi vehicles by June 2026.”

The reference to “dramatic changes to the Tesla product economics” points to a significant price increase for the Tesla Semi, which further communication with MSRC confirms.

In the agenda of a meeting to discuss the extension and changes to the project yesterday, MSRC confirms that the project went from 42 to 18 Tesla Semi trucks while the project commitment is not changing:

Ryder has indicated that their electric tractor manufacturer partner, Tesla, has experienced continued delays in product design and production. There have also been dramatic changes to the product economics. Ryder requests to reduce the number of vehicles from 42 to 18, stating that this would maintain their $7.5 million private match commitment.

In addition to the electric trucks, the project originally involved installing two integrated power centers and four Tesla Megachargers, split between two locations. Ryder is also looking to now install 3 Megachargers per location for a total of 6 instead of 4.

Tesla Semi Megacharger hero

The project changes also mention that “Ryder states that Tesla now requires 600kW chargers rather than the 750kW units originally engineered.”

Tesla Semi Price

When originally unveiling the Tesla Semi in 2017, the automaker mentioned prices of $150,000 for a 300-mile range truck and $180,000 for the 500-mile version. Tesla also took orders for a “Founder’s Series Semi” at $200,000.

However, Tesla didn’t update the prices when launching the “production version” of the truck in late 2023. Price increases have been speculated, but the company has never confirmed them.

New diesel-powered Class 8 semi trucks in the US today often range between $150,000 and $220,000.

The combination of a reasonable purchase price and low operation costs, thanks to cheaper electric rates than diesel, made the Tesla Semi a potentially revolutionary product to reduce the overall costs of operation in trucking while reducing emissions.

However, Ryder now points to a “dramatic” price increase for the Tesla Semi.

What is the cost of a Tesla Semi electric truck now?

Electrek’s Take

As I have often stated, Tesla Semi is the vehicle program I am most excited about at Tesla right now.

If Tesla can produce class 8 trucks capable of moving cargo of similar weight as diesel trucks over 500 miles on a single charge in high volume at a reasonable price point, they have a revolutionary product on their hands.

But the reasonable price part is now being questioned.

After reading the communications between Ryder and MSRC, while not clear, it looks like the program could be interpreted as MSRC covering the costs of installing the charging stations while Ryder committed $7.5 million to buying the trucks.

The math makes sense for the original funding request since $7.5 million divided by 42 trucks results in around $180,000 per truck — what Tesla first quoted for the 500-mile Tesla Semi truck.

Now, with just 18 trucks, it would point to a price of $415,000 per Tesla Semi truck. It’s possible that some of Ryder’s commitment could also go to an increase in Megacharger prices – either per charger or due to the two additional chargers. MSRC said that they don’t give more money when prices go up after an extension.

I wouldn’t be surprised if the 500-mile Tesla Semi ends up costing $350,000 to $400,000.

If that’s the case, Tesla Semi is impressive, but it won’t be the revolutionary product that will change the trucking industry.

It will need to be closer to $250,000-$300,000 to have a significant impact, which is not impossible with higher-volume production but would be difficult.

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AI could affect 40% of jobs and widen inequality between nations, UN warns

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AI could affect 40% of jobs and widen inequality between nations, UN warns

Artificial intelligence robot looking at futuristic digital data display.

Yuichiro Chino | Moment | Getty Images

Artificial intelligence is projected to reach $4.8 trillion in market value by 2033, but the technology’s benefits remain highly concentrated, according to the U.N. Trade and Development agency.

In a report released on Thursday, UNCTAD said the AI market cap would roughly equate to the size of Germany’s economy, with the technology offering productivity gains and driving digital transformation. 

However, the agency also raised concerns about automation and job displacement, warning that AI could affect 40% of jobs worldwide. On top of that, AI is not inherently inclusive, meaning the economic gains from the tech remain “highly concentrated,” the report added. 

“The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies,” it said. 

The potential for AI to cause unemployment and inequality is a long-standing concern, with the IMF making similar warnings over a year ago. In January, The World Economic Forum released findings that as many as 41% of employers were planning on downsizing their staff in areas where AI could replicate them.  

However, the UNCTAD report also highlights inequalities between nations, with U.N. data showing that 40% of global corporate research and development spending in AI is concentrated among just 100 firms, mainly those in the U.S. and China. 

Furthermore, it notes that leading tech giants, such as Apple, Nvidia and Microsoft — companies that stand to benefit from the AI boom — have a market value that rivals the gross domestic product of the entire African continent. 

This AI dominance at national and corporate levels threatens to widen those technological divides, leaving many nations at risk of lagging behind, UNCTAD said. It noted that 118 countries — mostly in the Global South — are absent from major AI governance discussions. 

UN recommendations 

But AI is not just about job replacement, the report said, noting that it can also “create new industries and and empower workers” — provided there is adequate investment in reskilling and upskilling.

But in order for developing nations not to fall behind, they must “have a seat at the table” when it comes to AI regulation and ethical frameworks, it said.

In its report, UNCTAD makes a number of recommendations to the international community for driving inclusive growth. They include an AI public disclosure mechanism, shared AI infrastructure, the use of open-source AI models and initiatives to share AI knowledge and resources. 

Open-source generally refers to software in which the source code is made freely available on the web for possible modification and redistribution.

“AI can be a catalyst for progress, innovation, and shared prosperity – but only if countries actively shape its trajectory,” the report concludes. 

“Strategic investments, inclusive governance, and international cooperation are key to ensuring that AI benefits all, rather than reinforcing existing divides.”

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BP chair Helge Lund to step down after oil major pledges strategic reset

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BP chair Helge Lund to step down after oil major pledges strategic reset

British oil and gasoline company BP (British Petroleum) signage is being pictured in Warsaw, Poland, on July 29, 2024.

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British oil major BP on Friday said its chair Helge Lund will soon step down, kickstarting a succession process shortly after the company launched a fundamental strategic reset.

“Having fundamentally reset our strategy, bp’s focus now is on delivering the strategy at pace, improving performance and growing shareholder value,” Lund said in a statement.

“Now is the right time to start the process to find my successor and enable an orderly and seamless handover,” he added.

Lund is expected to step down in 2026. BP said the succession process will be led by Amanda Blanc in her capacity as senior independent director.

Shares of BP traded 2.2% lower on Friday morning. The London-listed firm has lagged its industry rivals in recent years.

BP announced in February that it plans to ramp up annual oil and gas investment to $10 billion through 2027 and slash spending on renewables as part of its new strategic direction.

Analysts have broadly welcomed BP’s renewed focus on hydrocarbons, although the beleaguered energy giant remains under significant pressure from activist investors.

U.S. hedge fund Elliott Management has built a stake of around 5% to become one of BP’s largest shareholders, according to Reuters.

Activist investor Follow This, meanwhile, recently pushed for investors to vote against Lund’s reappointment as chair at BP’s April 17 shareholder meeting in protest over the firm’s recent strategy U-turn.

Lund had previously backed BP’s 2020 strategy, when Bernard Looney was CEO, to boost investment in renewables and cut production of oil and gas by 40% by 2030.

BP CEO Murray Auchincloss, who took the helm on a permanent basis in January last year, is under significant pressure to reassure investors that the company is on the right track to improve its financial performance.

‘A more clearly defined break’

“Elliott continues to press BP for a sharper, more clearly defined break with the strategy to pivot more quickly toward renewables, that was outlined by Bernard Looney when he was CEO,” Russ Mould, AJ Bell’s investment director, told CNBC via email on Friday.

“Mr Lund was chair then and so he is firmly associated with that plan, which current boss Murray Auchincloss is refining,” he added.

Mould said activist campaigns tend to have “fairly classic thrusts,” such as a change in management or governance, higher shareholder distributions, an overhaul of corporate structure and operational improvements.

“In BP’s case, we now have a shift in capital allocation and a change in management, so it will be interesting to see if this appeases Elliott, though it would be no surprise if it feels more can and should be done,” Mould said.

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