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President Joe Bidens economic agenda is achieving one of his principal goals: channeling more private investment into small communities that have been losing ground for years.

Thats the conclusion of a new study released today, which found that economically strained counties are receiving an elevated share of the private investment in new manufacturing plants tied to three major bills that Biden passed early in his presidency. After decades of economic divergence, strategic sector investment patterns are including more places that have historically been left out of economic growth, concludes the new report from Brookings Metro and the Center for Energy and Environmental Policy Research at MIT.

The large manufacturing investments in economically stressed counties announced under Biden include steel plants in Mason County, West Virginia, and Mississippi County, Arkansas; an expansion of a semiconductor-manufacturing plant in Schuylkill County, Pennsylvania; a plant to process the lithium used in electric vehicle (EV) batteries in Chester County, South Carolina; an electric-vehicle manufacturing plant in Haywood County, Tennessee; and plants to manufacture batteries for EVs in Montgomery County, Tennessee; Vigo County, Indiana; and Fayette County, Ohio.

These are all some of the 1,071 countiesabout a third of the U.S. totalthat Brookings defines as economically distressed, based on high levels of unemployment and a relatively low median income. As of 2022, the report notes, these counties held 13 percent of the U.S. population but generated only 8 percent of the nations economic output.

Since 2021, though, these distressed counties have received about $82 billion in private-sector investment from the industries targeted by the three major economic-development bills Biden signed. Those included the bipartisan infrastructure law and bills promoting more domestic manufacturing of semiconductors and clean energy, such as electric vehicles and equipment to generate solar and wind power.

That $82 billion has been spread over 100 projects across 70 of the distressed counties, Brookings and MIT found. In all, since 2021 the distressed counties have received 16 percent of the total investments into the industrial sectors targeted by the Biden agenda. Thats double their share of national GDP. Its also double the share of all private-sector investment they received from 2010 to 2020. Funneling more investment and jobs to these economically lagging communities is really just at the core of what [Biden] is trying to accomplish, Lael Brainard, the director of Bidens National Economic Council, told me. The president talks a lot about communities that have been left behind, and now he is talking a lot about communities that are coming back.

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This surge of investment into smaller places is a huge change from previous patterns that have concentrated investment and employment in a handful of superstar metropolitan areas, Mark Muro, a senior fellow at Brookings Metro and one of the reports authors, told me.

As the rich places have been getting richer, the social-media/tech economy was something that was happening somewhere else for most people, Muro said. Clearly, this is a different-looking recovery that is occurring in different places and has a tilt to distressed communities right now.

One of those places is Fayette County, in south-central Ohio, about equidistant from Dayton, Cincinnati, and Columbus. Fayettes population of roughly 28,000 is predominantly white and rural with few college graduates. Its median income is about one-fourth lower than the national average, and its poverty rate is about one-fourth higher.

Early in 2023, Honda and its partner LG Energy Solution broke ground on a massive new plant in Fayette to build batteries for Honda and Acura EVs. The Honda project has already generated large numbers of construction jobs, as has a massive Intel semiconductor-fabrication plant under construction about an hour away, outside Columbus, in Licking County. The trade associations for electrical workers, plumbers, whatever it might be, they are going to have jobs in the state of Ohio for years, Jeff Hoagland, the CEO of the Dayton Development Coalition, told me. These are huge facilities. The Honda facility is the size of 78 football fields.

Honda is already advertising to fill some engineering jobs, and once the plant is operational in late 2024 or early 2025, it expects to hire some 2,200 people. Most of those jobs will not require college degrees, Hoagland said. Many more jobs, he added, will flow from the plants suppliers moving to establish facilities in the area. There are companies already buying up land, Hoagland told me.

Hoagland said he has no doubt that the federal tax incentives in the big Biden bills for domestic production of clean energy and semiconductors were central to these decisions. The federal incentives have been 100 percent critical, and I know that firsthand from Intel and from Honda, Hoagland said. Those companies needed those [incentives] to get into the full implementation of their strategy to rebuild that manufacturing, that supply-chain base, in the United States. Now we are seeing all these companies come back to the heartland in Ohio to do manufacturing. Yet another firm, Joby Aviation, announced in September that, with support from federal clean-energy loan guarantees, it plans to construct a factory near Dayton to build electric air taxis.

Encouraging manufacturers to locate their facilities in the U.S. rather than abroad has been the central goal of the tax incentives, loan guarantees, and grants in the clean-energy, semiconductor, and infrastructure bills. But the Biden administration has also been using provisions in those bills, as well as other programs, to try to steer more of those domestic investments specifically into distressed communities.

As the Brookings/MIT report notes, the Inflation Reduction Acts clean-energy tax credits provide extra bonuses of 10 percent or more to companies that invest in low-income communities. An Energy Department loan-guarantee program favors companies that locate clean-energy investments in communities that lost jobs when fossil-fuel facilities shut down. In a speech last month, Brainard highlighted a $1 billion Transportation Department program that funds infrastructure improvements to reconnect neighborhoods that have been isolated from job opportunities by highways or other transportation infrastructure. (Many of those places are heavily minority communities.)

Similarly, under the semiconductor bill, the administration is awarding substantial funds for regional innovation engines through the National Science Foundation, as well as tech hubs that require communities to organize businesses, schools, and government to develop coordinated plans for regional growth in high-tech industries. The winners of these grants include projects that are based in places far beyond the existing large metro centers of technological innovation, such as Louisiana, Wyoming, North Dakota, South Carolina, and Oklahoma. Those [programs] are spreading innovation investment to clusters all around the country rather than being concentrated just in a few huge metros, Brainard told me.

Joseph Parilla, the director of applied research at Brookings Metro, told me that the large manufacturing facilities being built in response to the new federal incentives naturally would flow toward the periphery of major metropolitan areas where many of these distressed counties are located. But Parilla believes the tax incentives and other programs that the Biden administration is implementing are also having a pretty significant impact in driving so many of these investments to smaller, economically strained places.

Biden has made clear that he considers steering more investments to the places lagging economically both a political and policy priority. Even in forums as prominent as the State of the Union address, he often talks about the importance of creating jobs that willallow young people to stay in the communities where they were born. Biden has also, as Ive written, rejected the belief of his two Democratic predecessors, Bill Clinton and Barack Obama, that the most important step for expanding economic opportunity is to help more people obtain postsecondary education; instead, Biden conspicuously emphasizes how many jobs that do not require four-year college degrees are being created in the projects subsidized by his big-three bills. What youll see in this field of dreams are Ph.D. engineers and scientists alongside community-college graduates, he declared at the 2022 Ohio Intel plant ground-breaking.

But its not clear that the economic benefits flowing into distressed communities will produce political gains for Biden. In 2020, despite his small-town, blue-collar Scranton Joe persona, Biden heavily depended on the big, well-educated metro areas thriving in the Information Age: Previous Brookings Metro research found that, although Biden won only about one-sixth of all U.S. counties, his counties generated nearly three-fourths of the nations total economic output.

The outcome was very different in the economically distressed counties. Brookings found that in 2020, Trump won 54 of the 70 distressed counties where the new investments have been announced under Biden. Some Democratic operatives are dubious that these new jobs and opportunities will change that pattern much.

Read: Bidens economic formula to win in 2024

Partly thats because Democrats face so many headwinds in these places on issues relating to race and culture, such as immigration and LGBTQ rights. But its also because of the risk that without unions or many local Democratic officials to drive the message, workers simply wont be aware that their new jobs are linked to programs that Biden created, as Michael Podhorzer, the former AFL-CIO political director, has argued to me.

Jim Kessler, the executive vice president of Third Way, a centrist Democratic group that has studied the partys problems in small-town and rural areas, agrees that even big job gains wont flip small red places toward Biden. But even slightly reducing the GOP margin in those places could matter, he told me. Some of these swing states have vast red areas, and he needs to do well enough in those areas, Kessler said. Pointing to new jobs in previously declining places, Kessler said, could also provide Biden a symbol of economic recovery that resonates with voters far beyond those places.

The Brookings and MIT authors expect that Biden will have many more such examples to cite as further investments in industries including clean energy and semiconductors roll out. The map is not yet finished, the report concludes. There are hundreds of distressed counties with assets similar to those that have attracted investment and have not yet been targeted. One of the most tangible legacies of Bidens presidency may be a steady procession of new plants rising through the coming years in communities previously left for scrap. Whether voters in these places give him credit for that will help determine if hes still in the White House to see it.

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Sports

The lesson of Pete Rose and ‘Shoeless’ Joe? History is messy.

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The lesson of Pete Rose and 'Shoeless' Joe? History is messy.

Now that Major League Baseball commissioner Rob Manfred has removed Pete Rose, “Shoeless” Joe Jackson and other deceased players from the game’s “permanently ineligible list,” whatever former stars deemed deserving based on their on-field accomplishments should, at first opportunity, be inducted into the Hall of Fame.

In a bombshell, if long overdue, reversal of policy, first reported by ESPN’s Don Van Natta Jr. on Tuesday, Manfred removed bans for Rose (who bet on games while managing the Cincinnati Reds) and members of the 1919 Chicago White Sox (who fixed the World Series), among others.

After all, banishment was meaningless once they all had died — a life sentence, if you will, for whatever their transgression. Most died decades ago and were on the list for gambling-related offenses.

“Obviously, a person no longer with us cannot represent a threat to the integrity of the game,” Manfred wrote in a letter to the attorney who petitioned for Rose.

The only remaining purpose of the ban was to keep them from the immortality of being inducted into Cooperstown, which bills itself officially as the “National Baseball Hall of Fame and Museum.”

The last word is the most important.

Museums exist to tell about history, and history is always messy — including in sports. They shouldn’t be solely designed for the sanitized, establishment-approved version of events, or allow outside considerations to overshadow actual accomplishments. They certainly shouldn’t serve as part of some carrot-and-stick approach to desired behavior.

Should Rose and the others have done what they did? Of course not. Should they have been subject to any potential criminal or civil recourse for their actions? Absolutely. Was MLB within its rights to suspend or punish them in other ways? Definitely.

Rose, for example, should never have been allowed to work in baseball again after it was determined he bet on the Reds to win games while he was the manager.

But that doesn’t mean his record 4,256 hits, his three World Series titles, his MVP award (1973), his 17 All-Star appearances (including when he barreled over catcher Ray Fosse in the 1970 game), his “Charlie Hustle” nickname, or that epic head-first slide — shown so many times on “This Week in Baseball” that a generation of kids either crushed their chests or chipped their teeth trying to emulate it — didn’t occur.

So did his gambling scandal, a 1990 guilty plea for filing false tax returns that cost him five months in a federal prison and a 2017 sworn statement from a woman that he had committed statutory rape back in the 1970s, an allegation for which he was never criminally charged. Throughout his life, he could be indefensibly crude, difficult and confrontational.

It’s all part of the story of Pete Rose.

So let him in, then tell the good, the bad and the ugly so the public can decide what to think. This is the Baseball Hall of Fame, not the pearly gates. It’s about a nice day in central New York State with your family, complete with a gift shop.

If the museum is there to tell the history of the sport, well, how do you do it without Pete Rose? If Hall of Fame induction is reserved for the greatest players, then how could Rose not be among them? His foolishness as a manager shouldn’t have eclipsed his impact as a player.

This is where baseball’s policy was always wrong. It used the prospect of barred entry to the Hall as a deterrence. That isn’t what a museum should be about. The risk of criminal charges, lost wages from suspension and general shame should be enough. If it isn’t, so be it.

Manfred isn’t ready to release those still living from the ineligible list. He’s clinging to the concept of scaring current players straight. “It is hard to conceive of a penalty that has more deterrent effect than one that lasts a lifetime with no reprieve,” he wrote in the letter.

Perhaps, but should that be the point?

The Hall is already filled with assorted louts, drunks and racists who just happened to be able to either hit or throw a baseball really well. So what? Their personal disgrace is part of their history.

In fairness, their personal failings didn’t affect baseball the way Rose might have as a managerial gambler, and certainly not as the Black Sox did back in the day.

Still, there are owners and commissioners in the Hall who worked for decades to stop baseball from racial integration. That’s a far more widespread impact on the integrity of the game than betting on your team to beat the Dodgers.

Yes, sports wagering is always a concern and was once a major taboo. But public opinion and business realities changed. There are sportsbooks inside MLB stadiums these days, including, for a stretch, with Rose’s old team in Cincinnati.

History is history. The game is the game. The museum is the museum. Tell the story, the whole story, with all the best players and best teams and best tales, no matter how colorful, criminal or regrettable.

America can handle it. Our real national pastime is scandal, after all.

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Business

Burberry to cut 1,700 jobs after multi-million pound loss

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Burberry to cut 1,700 jobs after multi-million pound loss

Burberry, the UK’s only global luxury brand, is to cut around 1,700 jobs worldwide over the next two years after reporting a steep financial loss.

The company lost £66m in pre-tax profit in the year ended in March as luxury goods sales fell across the world and the company weathered an “uncertain” environment and a “difficult macroeconomic backdrop”.

A year earlier, it recorded £383m in profit.

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It’s suffered in recent years with the share price falling to such an extent the business was removed from the FTSE 100, the index of most valuable companies listed on the London Stock Exchange.

Despite the financial performance, the company was upbeat, with chief executive Joshua Schulman saying “I am more optimistic than ever that Burberry’s best days are ahead and that we will deliver sustainable profitable growth over time”.

What cuts are being made?

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The retailer did not specify any shop closures – in the past year, it closed 26 and also opened 26 stores – but did highlight shift cuts and consolidations.

“We don’t have a store closing programme, per see,” Mr Schulman told investors

The night shift at Burberry’s Castleford factory will be cut, it proposed, saying the shift has resulted in overproduction.

“Significant” investment in the facility will be made, however, as the ambition is to scale up British production “over time”, Mr Schulman said.

Changes to the retail network across the world will be made with shop staff being scheduled around “peak traffic”.

Burberry will be “realigning” shop staff, he said, “so that we can offer the best service” at the busiest times.

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There will also be a “simplification” of Burberry’s regional structure and a “rebalancing” of central and regional responsibilities to reduce duplication and “accelerate decision making” through the retail network.

But the majority of changes will be made to “office space teams” around the world, the CEO said.

Commercial and creative teams have already been consolidated, Burberry’s annual results said.

What’s gone wrong?

Aside from the global slowdown in luxury goods sales over recession fears, additional headwinds have come in the form of President Trump’s tariffs.

“Clearly, the external environment has become more challenging since mid-February”, Mr Schulman told investors.

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Trump’s tariffs: What you need to know

Tariff risks were higher than first planned, the annual results said.

It led the US market to be described by Mr Schulman as “choppy” since February when Mr Trump began announcing tariffs on Mexico, Canada and China, as well as on goods such as steel and cars.

Sales also fell in the Asia Pacific region by 16%, the results showed.

Criticism was levelled at the 2021 British government decision to withdraw VAT refunds for overseas visitors, “which has made the UK the least competitive destination in Europe for tourist shopping”, the results read.

“Business in our UK home market continues to be seriously impacted” by the move.

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Politics

Bitcoin more of a ‘diversifier’ than safe-haven asset: Report

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Bitcoin more of a ‘diversifier’ than safe-haven asset: Report

Bitcoin more of a ‘diversifier’ than safe-haven asset: Report

Bitcoin’s fluctuating correlation with US equities is raising questions about its role as a global safe-haven asset during periods of financial stress.

Bitcoin (BTC) exhibited a strong negative correlation with the US stock market when analyzing the short-term, seven-day trailing correlation, according to new research from blockchain data provider RedStone Oracles, shared exclusively with Cointelegraph.

Bitcoin more of a ‘diversifier’ than safe-haven asset: Report
Bitcoin, S&P 500, 7-day rolling correlation. Source: Redstone Oracles

However, RedStone said that the 30-day indicator signals a “variable correlation” between Bitcoin price and the S&P 500 index, with the correlation coefficient ranging from -0.2 to 0.4.

This fluctuating correlation suggests that Bitcoin “doesn’t consistently function as a true hedge for equities” due to its lack of a strong negative correlation below -0.3, which is needed for “reliable counter movement during market stress,” the report said.

Bitcoin more of a ‘diversifier’ than safe-haven asset: Report
Bitcoin, S&P 500, 30-day rolling correlation, 1-year chart. Source: Redstone Oracles

Related: $1B Bitcoin exits Coinbase in a day as analysts warn of supply shock

The research suggests that while Bitcoin may not be a dependable hedge against stock market declines, it offers value as a portfolio diversifier.

This fluctuating dynamic signals that Bitcoin often moves independently from other assets, potentially offering additional returns while other assets are struggling. Still, Bitcoin has yet to mirror the safe-haven dynamics of gold and government bonds, RedStone suggests.

Related: Nasdaq-listed GDC plans to buy Bitcoin and TRUMP memecoin for $300M

Bitcoin needs to “mature” before decoupling from stock market

While Bitcoin is poised to grow into a safe-haven asset in the future, the world’s first cryptocurrency still needs to “mature” as a global asset, according to Marcin Kazmierczak, co-founder and chief operating officer at RedStone.

“Bitcoin still needs to mature before decoupling from stock markets,” Kazmierczak told Cointelegraph, adding:

“Increased institutional adoption will absolutely help — we’re already seeing this effect with corporate treasury investments reducing Bitcoin’s 30-day volatility and with BlackRock repetitively praising BTC as an asset in a portfolio.”

Meanwhile, Bitcoin will see growing recognition as a portfolio diversifier, with an annualized return of over 230% for the past five years, which “significantly outperformed” both stocks and traditional safe-haven assets, Kazmierczak said, adding that “even a small 1–5% Bitcoin allocation can meaningfully enhance a portfolio’s risk-adjusted returns.”

Bitcoin more of a ‘diversifier’ than safe-haven asset: Report
Source: Vetle Lunde

Meanwhile, Bitcoin’s declining volatility supports BTC’s growing maturity as a global financial asset. Bitcoin’s weekly volatility hit a 563-day low on April 30, a development that may signal more stable price action.

Bitcoin’s price volatility fell below the realized volatility of the S&P 500 and the Nasdaq 100, signaling that investors are increasingly treating Bitcoin as a long-term investment vehicle, Cointelegraph reported on May 13.

Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express

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