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On its surface, the unfolding debt-ceiling crisis looks a lot like the confrontation in 2011 between congressional Republicans and then-President Barack Obama. Once again, a new GOP majority in the House is using the threat of a national default as leverage to force a first-term Democratic president to agree to spending cuts in exchange for lifting the federal borrowing limit. A first-ever default could crash the markets and trigger a recession. But, as in 2011, the two parties remain far apart, with a deadline to act approaching rapidly.

Eric Cantor knows the feeling well. Twelve years ago, he was the House majority leader deputized by then-Speaker John Boehner to negotiate an agreement with Joe Biden, who was Obamas vice president at the time. Cantor left Congress in 2014 after a stunning primary defeat that presaged the GOPs anti-establishment, anti-immigration lurch toward Donald Trump two years later. Hes now a senior executive at a Wall Street investment bank.

I called him up this week to ask what he had learned from the 2011 negotiations and how he sees todays fight going. He warned that the risks of failureand with it, economic calamityare significantly greater this time around.

Read: The logic behind Bidens refusal to negotiate the debt ceiling

Cantor and Biden failed to strike a deal on their own in 2011; that task ultimately fell to Biden and Senate GOP Leader Mitch McConnell. But Cantor told me he was impressed with Bidens willingness to bargain: He was very much in the mode of negotiating, compromising.

Not this timeBiden has rebuffed pleas from Speaker Kevin McCarthy for one-on-one negotiations. President Biden is not the same person as Vice President Biden was, Cantor said, a bit ruefully. Nor has Biden empowered anyone in his administration to bargain at all.

Theyve not negotiated a darn thing, Cantor said.

In 2011, Obama engaged with Republicans months in advance of the fiscal deadline, and the talks between Cantor and Biden, along with separate negotiations between Obama and Boehner, helped set parameters for the agreement that materialized when the nation was on the brink of default.

The present lack of negotiations is likely a direct result of how things went back in 2011. Though both sides came to an agreement eventually, the near miss still caused a stock-market slide and the downgrading of the U.S. credit rating. When the U.S. bumped up against the debt ceiling again later in the Obama presidency, the administration was less inclined to negotiateand a chastened GOP allowed the limit to be lifted without a fight. The lesson Democrats drew from that experience was never again to concede to the Republican premise that increasing the borrowing limit should be subject to legislative haggling.

Bidens no-negotiation stance, however, might not be sustainable. On Monday, Treasury Secretary Janet Yellen informed congressional leaders that the country would run out of fiscal wiggle roomafforded by the use of extraordinary measures that stretch federal fundsas soon as June 1. That deadline is earlier than many people in Washington expected, and Yellens warning injected fresh urgency into the effort to find a way out of the crisis. In response, Biden summoned McCarthy, McConnell, and their Democratic counterparts to a White House meeting next week.

In 2011, McCarthy was one rung beneath Cantor in the House GOP hierarchy. Now, as speaker, hes operating with a much thinner margin than Boehner and Cantor, who had more than 20 votes to spare. The GOPs five-vote majority has less leverage, but it is more dug-in against the Democrats, and the speakership that McCarthy fought so hard to secure could be at risk if he were to allow the debt ceiling to be raised without extracting sufficient budget cuts or other concessions. The moderate dealmakers in the House Republican Conference have all but vanished. Boehner was ultimately forced out in 2015 by a conservative revolt, but he did not face the threat of an ouster that now hangs over McCarthy.

Although McCarthy was able to muster enough votes last week to pass an opening bid through the Housea huge victory, Cantor told mehes unlikely to secure the same level of budget cuts that Republicans did in 2011. Obama and Boehner had traded proposals for entitlement cuts and tax increases, and the deal Congress eventually passed triggered $1.2 trillion in spending reductions over a 10-year period. Under pressure from former President Donald Trump, McCarthy isnt even pushing this time for cuts to Medicare or Social Security. The likeliest solution, according to potential congressional dealmakers, is an agreement that would merely slow the growth of federal spending, not reverse it. Youre just not going to move the needle as far, Cantor said.

Cantor remains in touch with McCarthy; the two, along with the Republican who succeeded Boehner as speaker, Paul Ryan, were once a conservative triumvirate known as the Young Guns (they were already in their 40s, but this is Congress), who rose quickly in the House GOP. When I asked him whether it was possible for McCarthy to emerge victorious in the eyes of his party, Cantor seemed doubtful. Look, hes got a very, very slim majority, he said. And given where conservative media and social media is on the issue, its just hard to be able to create a situation where you can declare a win and have everyone go along with it.

Annie Lowrey: The trillion-dollar coin might be the least bad option

For now, Cantor said, McCarthy is doing what he needs to do to give himself space to negotiate. Kevin has demonstrated a will to fight, and I think thats the most important thing right now for members to seehes willing to go to bat for them and fight, he said. So he comes into this with a fair amount of capital to work with.

Biden is also in fighting mode at the moment, in contrast to his bargaining mode in 2011. Cantor argued that ironically, Biden had more authority to hammer out a deal when he was Obamas lieutenant than he does now. Hes captive of the extreme left and the progressives in his party, he said.

This is mostly spin from a Republican who remains, even in his political retirement, a party loyalist. And Biden would surely dispute the suggestion that he would cut a deal with Republicans if left to his own devices; he came away from the 2011 experience with the same determination as others in his party not to negotiate again over the debt ceiling. But Cantors point is that because progressives are more ascendant now than they were then, Biden has less room to maneuver, especially as he launches a reelection bid for which hell need the lefts enthusiastic support.

Cantor offered a couple of scenarios for how Biden and McCarthy could avert a default. The most likely involves Washingtons favorite fallback, the punt: Republicans would agree to a short-term increase in the debt ceiling in exchange for Biden committing to serious fiscal negotiations later in the year, when both sides would face a harder deadline. They could also reach a broader agreement in the next few weeks, but Cantor did not sound particularly hopeful. I still dont think we go into default, the veteran of congressional brinkmanship told me, but I think the path is certainly narrower, and the options available to either side are narrower.

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PM rejects Enoch Powell comparison after ‘island of strangers’ comment

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PM rejects Enoch Powell comparison after 'island of strangers' comment

Sir Keir Starmer has rejected the comparison to Enoch Powell after he said the UK was at risk of becoming an “island of strangers” if migration does not come down.

The prime minister’s official spokesperson said migrants have made a “massive contribution” to society but the Tories “lost control of the system” and that is the point he was making.

The remark has drawn criticism from Labour backbenchers, who have compared it to the late Conservative MP’s inflammatory 1968 “Rivers of Blood” speech.

In the speech, Mr Powell imagined a future multicultural Britain where the white population would find themselves “strangers in their own country” as a result of migration.

Among those to make the comparison was the former shadow chancellor John McDonnell, who said on X that “Talk of an “island of strangers” shockingly echoes the divisive language of Enoch Powell”.

However, the prime minister’s spokesperson said: “The PM rejects this comparison. He said that migrants have made a massive contribution to society.

“It is also right to say that between 2019 and 2024, the previous government lost control of the system. Migration needs to be controlled, fair and people that come here should integrate.”

More on Keir Starmer

Enoch Powell. Pic: PA
Image:
Enoch Powell. Pic: PA

Asked why the prime minister used such robust language, the spokesperson said he was not going to “shy away” from the issue of immigration and the British public want it to be reduced.

He added: “We have welcomed immigrants for decades, but it’s too high and must come down. Also, it’s important for our domestic skills system, which is good for our economy.”

What has the government announced?

Sir Keir made the comment at a news conference in which measures were announced to curb net migration, including banning care homes from recruiting overseas, new English language requirements for visa holders and stricter rules on gaining British citizenship.

The package is aimed at reducing the number of people coming to the UK by up to 100,000 per year, though the government has not officially set a target.

Who was Enoch Powell?

Enoch Powell was a Tory MP and the shadow defence secretary in the 1960s when a debate was raging about post-war immigration to Britain.

By the late 1960s, hundreds of thousands of Commonwealth citizens had exercised their legal right and settled in Britain, and it led to a quiet clampdown by the Labour government on immigration.

On 20 April 1968, Powell rose to his feet at a meeting of the Conservative Political Centre in Birmingham and declared Britons had “found themselves made strangers in their own country”.

Powell went on to say it had led to a shortage of hospital beds, school places, and “homes and neighbourhoods changed beyond recognition”.

He was swiftly kicked out of the shadow cabinet.

Net migration – the difference between the number of people immigrating and emigrating to a country – soared when the UK left the EU in January 2020.

It reached 903,000 in the year to June 2023 before falling to 728,000 in mid-2024. But that is still well above its pre-Brexit high of 329,000 in the year up to June 2015.

Sir Keir said parts of the UK’s economy “seem almost addicted to importing cheap labour” rather than investing in skills at home.

However, it is not clear how the government plans to boost the domestic workforce, amid a UK skills shortage and record numbers of people being out of work.

According to the ONS, there are 9.2 million people of working age in the UK who are economically inactive, including 1.8m 18-24 year olds.

The prime minister’s spokesperson said the government is “focused on upskilling British workers” and “especially helping young people in the job sector” but did not elaborate how.

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PM’s ‘tough’ migration policies explained

On care homes, he said, around 40,000 care workers came over on visas for jobs that did not exist, and companies can recruit from that pool.

Earlier, a number of Labour MPs came to the prime minister’s defence. Rother Valley MP Jake Richards said on X that Sir Keir is “absolutely right to warn of the risk of becoming an ‘island of strangers’.

“Millions of people across the country have similar concerns. This theme must be central to missions across immigration, employment, work and tackling neighbourhood deprivation,” he said.

Shadow justice secretary Robert Jenrick went further, telling Sky News he believes the UK “already is an island of strangers”, naming several areas “where we are a very divided and segregated society”.

However former Labour home secretary Lord David Blunkett criticised the rhetoric, saying in a speech at a University of Law graduation ceremony: “I never felt I lived in, or had a part to play in, a country of strangers.

“I thought welcoming people from across the world was a tribute to our society, where people want to make their homes, to build a life and their economy and to contribute to our society.

“I think we need to be kind to each other, but we need a much kinder national world as well.”

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Environment

Kia built an electric van for wheelchair users: Check out the new PV5 WAV

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Kia built an electric van for wheelchair users: Check out the new PV5 WAV

Kia’s first electric van is proving to be even more functional. The new PV5 WAV is specifically designed to be affordable, accessible, and wheelchair-friendly. Meet the new Kia PV5 WAV.

Meet the Kia PV5 WAV electric van

The PV5 is a fully electric midsize van. It’s the first of many from Kia’s new Platform Beyond Vehicle (PBV) business.

Kia promised its PBVs would go “Beyond Mobility,” and the company is proving it. On Tuesday, Kia unveiled the new PV5 WAV, calling it “a new era for wheelchair accessible electric vehicles.”

The PV5 is the perfect electric van for the task. Based on its new E-GMP.S EV platform, it has a flat floor design and extended wheelbase, unlocking more interior space.

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Kia designed the electric van not only for wheelchair users but also for their families, caregivers, and drivers. The PV5 WAV features a custom side-entry system to make it easier to get in and out of. An adjustable third-row seat enables users to assist from the side.

It will also feature a specially developed wheelchair belt fastener and entry ramp that can handle up to 661 lbs (300 kg).

According to Kia, the PV5 will include all necessary equipment for individuals with disabilities, based on the AAOS open software platform.

Kia-PV5-WAV-EV-van
Kia PV5 WAV electric van interior (Source: Kia)

The new electric van variant will be built alongside other PV5 models at Kia’s Hwaseong EVO Plant in Korea. Kia opened PV5 Passenger pre-orders (shown below) in the UK on May 1, starting at £32,995, or about $44,000. It will launch in Europe and Korea later this year, followed by other global markets in 2026.

Kia’s Passenger electric van is offered with two battery options: 51.5 kWh or 71.2 kWh, good for up to 179 miles or 249 miles of WLTP driving range.

After partnering with Motability Operations in February, Kia said, “users receiving a disability allowance can choose an affordable and accessible vehicle.”

The PV5 WAV will initially launch in the UK, but Kia plans to expand sales to other global regions. A larger PV7 van will arrive in 2027, followed by the PV9 in 2029. Kia will continue launching new electric variants and use cases. By 2030, the company aims to sell 250,000 electric vans as it taps into a new market.

Last month, at the 2025 Seoul Mobility Show, Kia and LG Electronics unveiled two new “Speilraum” PV5 electric van concepts for camping and other fun uses. What’s next?

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Environment

GOP proposes sending US EV jobs to China, giving money to elites instead

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GOP proposes sending US EV jobs to China, giving money to elites instead

US republicans have unveiled their new tax proposal, which kills a slew of tax credits to help working families become more energy efficient, improve US air quality, and boost US manufacturing. The republican proposal instead channels that money to wealthy elites, increasing the deficit by trillions of dollars along the way.

Republicans in Congress released their 389-page proposal today and, as expected, it includes several provisions to eliminate popular clean energy credits which were driving a boost in American manufacturing.

The credits were largely established under President Biden as part of the Inflation Reduction Act, which raised hundreds of billions of dollars through tax enforcement on wealthy individuals and corporations and channeled that into energy efficiency credits for American families.

We’ve covered how families could save thousands of dollars on upgrades to lower their energy costs through these credits.

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But these credits aren’t just money-saving for Americans, they also work to boost American manufacturing.

Due to various provisions in the bill, particularly around the $7,500 EV tax credit which was limited to cars that undergo final assembly in North America. While loopholes exist, nevertheless the bill resulted in a massive expansion of American manufacturing, driving hundreds of billions of dollars of investment and creating hundreds of thousands of jobs.

But now, republicans in Congress are trying to roll much of that progress back.

Here’s a life of the bill’s various effects (via the BlueGreen Alliance):

  • Attaching restrictions to clean energy and manufacturing tax credits that would make them unusable in practical terms while also “sunsetting” those tax credits early, a move that research suggests will increase costs for American families; 
  • Repealing the Clean Vehicle Tax Credits; 
  • Repealing the Clean Hydrogen Tax Credit; 
  • Clawing back unspent funds for air quality monitoring in schools, clean manufacturing, state and community energy programs, and electric grid upgrades; 
  • Defunding and delaying the Methane Emissions Reduction Program (MERP), which reduces pollution and protects the health of workers and communities; 
  • Clawing back all unspent Inflation Reduction Act funds, including many provisions that would have lowered energy bills, created jobs, and reduced pollution; and 
  • Attacks on many additional Inflation Reduction Act programs and initiatives.   

You can perhaps see a pattern in these effects: they’re primarily targeted towards increasing costs for regular American families who were taking advantage of these tax credits, and towards programs that would keep you and your children healthier.

Previous analyses show how repealing these tax credits would lead to increased electricity prices for all Americans.

It should not be any surprise to anyone that has been paying attention that republicans want to poison you and raise your costs, but some people apparently still need more examples, so here we are.

In particular, the new tax proposal eliminates the US EV tax credit which had driven so much of that investment due to its domestic manufacturing provision (though there are some small carveouts). Not only does that inflate the cost of the best vehicles available today for Americans, it also takes away one of the incentives that was driving investment in US manufacturing.

We’ve warned before that a bill like this would just send more EV jobs to China, a country where nobody is “debating” over which direction the auto industry is going. Chinese automakers all know the industry is going electric, and they’re putting all of their effort into it.

This is quite a contrast with Western automakers which keep hemming and hawing, begging their governments to let them go bankrupt with anti-EV policy decisions that will only slow down their transition towards modernizing to the global EV status quo.

We’ve already seen the effects of other poor policy decisions on manufacturing, with several companies pausing or canceling plans to build manufacturing facilities in North America as a result of tariff chaos at the hands of an ignoramus. Republican districts have been hit hardest, as they were where the majority of this investment had been going.

And we’ve seen it made clear that the republicans in government responsible for protecting clean air would rather poison you and raise your fuel costs, as long as it helps the oil industry which bribed them into their position.

But then, the cherry on top of today’s tax proposal is that its cuts of these credits don’t even have a greater budgetary purpose. Not only was the Inflation Reduction Act revenue-positive – which is to say, it raised more money than it spent, thus reducing the deficit – today’s republican tax bill is revenue-negative, which is to say, it will increase the deficit.

The republican proposal raises the debt ceiling by $4 trillion, and it makes use of virtually all of that headroom, as the Joint Committee on Taxation has estimated that it will add $3.7 trillion to US debt. This is largely due to the bill’s significant giveaways to wealthy elites, with the majority of tax cuts targeted at the wealthiest households.

So the government isn’t even getting any savings out of this bill, merely channeling more money from working families to the wealthy elites that the republican party has always tried to benefit (including in other ways than the clean energy credits, like by cutting health care for the poor).

If you have a republican representative, all it takes is 3 republican Congresspeople to oppose this job-killing bill and to stand up for the well-being of their constituents.

Solar industry analysts have identified four republican Congresspeople who might be swayed in this respect, with their contact info below (Find out more about how this will affect the solar tax credit in this article by Electrek’s Michelle Lewis)

But there are many others whose districts have received significant investment, with EV projects being particularly popular in states like Georgia, North Carolina, and others along the burgeoning US “battery belt”. An interactive tool, including the ability to sort by congressional district, is available here.

Otherwise, you can find your representative on Congress’ website, and then search for the contact form on your representative’s website to get in contact with them.

Of course, if you have a Democratic representative, it’s also worth letting them know that you oppose the tax bill, just in case a few of them decide to jump ranks and join the republicans in harming America. We certainly hope they don’t, but it could happen.


Among the proposed cuts is the rooftop solar credit. That means you could have only until the end of this year to install rooftop solar on your home, before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started now.

To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here. – ad*

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