Ainsley in The New York Times: Britain’s Anti-Immigrant Riots Pose Critical Test for Starmer

Those close to Mr. Starmer say he is getting a grip on the disorder, drawing on his experience as a chief prosecutor in 2011, when riots took place in London and he pushed to get those responsible tried, sentenced and jailed swiftly to deter others.

“He has a detailed knowledge of how to do this, and he understands how you prosecute and convict quickly, and you do so visibly in a way that sends a message to anybody who is thinking about participating in one of these riots,” said Claire Ainsley, a former policy director for Mr. Starmer.

But ensuring that such violence does not recur is harder, she said.

“We have had the far right with us in good economic times and in bad economic times,” said Ms. Ainsley, who now works in Britain for the Progressive Policy Institute, a Washington-based research institute.

“But it is much harder for them to have any kind of influence when you are in better economic times,” she added. “That means people’s living standards rising and people starting to feel they are better off and that they are part of a system that is working — and that isn’t a description of Britain today.”

Ms. Ainsley pointed to the role of social media in spreading misinformation and stoking tensions, and cautioned against making a direct link between the riots and immigration. She noted that, alongside extremists, some of the rioters may be looters and other opportunists.

It is, she added, “wrong to assume that all of the people participating in these riots are politically motivated by immigration.”

Read more in The New York Times.

Jacoby for Washington Monthly: Ukrainian Public Opinion Remains Determined Against Russian Aggression

By Tamar Jacoby

I’ve suspected for months that something was changing in Ukraine. Virtually everyone I had asked since the beginning of the war had maintained that Kyiv could win, with the only acceptable outcome being Russian withdrawal from all Ukrainian territory, including Crimea and the Donbas region controlled by Moscow since 2015. But last winter, you could sense a growing uncertainty, and a few of my friends began to whisper about alternative scenarios.

Two recent polls shed a bright light on these unusually unspoken concerns. One sounding, conducted in May by the Rating Group, found 27 percent of respondents uncertain that Ukraine would succeed in liberating all its lost territory, while 26 percent were willing to negotiate a compromise. Also in May, the Kyiv International Institute of Sociology (KIIS) found 32 percent—more than triple the number who agreed a year before—willing to give up “some” territory to “achieve peace and preserve [Ukrainian] independence.”

This doesn’t mean Ukrainians are ready to surrender. KIIS project manager Anton Grushetsky cautions against exaggerating his team’s findings. Given the situation on the ground, he argues, Ukrainians remain remarkably resilient. The fighting on the frontline is all but stalemated; Russian missiles bombard Kyiv and other cities every day. More than three-quarters of the country has lost a close friend or relative, and no one is confident of continued Western support. Still, only 32 percent are considering compromise, while more than half—55 percent—are standing firm, insisting that “no circumstances” could justify conceding territory.

Keep reading in Washington Monthly.

Manno for The Hill: Relief funds eased COVID learning loss but could have done more

By Bruno Manno

Pandemic K-12 public school closings disrupted learning nationwide, with the average student in grades 3 through 8 losing the equivalent of half a grade level in math achievement and a third of a grade level in reading achievement.

The federal government’s response was a K-12 financial relief package of three bills for states and districts totaling $190 billion. The Elementary and Secondary School Emergency Relief package was the largest one-time federal investment in K-12 schools, with a Sept. 30 deadline to commit funds for specific uses.

Are the relief dollars making a difference in the learning loss recovery effort? There is good and bad news as students and teachers return to school.

The good news is that these funds are having a positive effect on helping students catch up. The bad news is they are insufficient to return all students to pre-pandemic learning levels. Additionally, we don’t know which newly funded programs helped students catch up.

Keep reading in The Hill.

Marshall for The Hill: Can Kamala Harris rebuild America’s anti-Trump majority?

By Will Marshall

As the Paris Olympics wind down, it’s hard to say which has been the more riveting spectacle, the games or the 2024 presidential race. Next week’s Democratic National Convention in Chicago will cap a summer of high political drama with dizzying plot twists.

It began with Donald Trump’s history-making criminal convictions, which perversely seemed to help him sew up his party’s nomination.

Then came President Biden’s mercilessly revealing debate performance, Trump’s narrow escape from an assassin’s bullet and a GOP national convention in Milwaukee that looked more like a royal coronation.

Biden then upstaged the Republicans with his eleventh-hour handoff to Vice President Kamala Harris. This rattled Trump by depriving him of the grudge-match he’s been itching for ever since his stinging 2020 defeat.

Keep reading in The Hill.

Trade Fact of the Week: Tiger population estimates for Thailand’s Western Forest Complex are up from 40 in 2007 to a range of 189-223 this year.

FACT: Tiger population estimates for Thailand’s Western Forest Complex are up from 40 in 2007 to a range of 189-223 this year.


THE NUMBERS: World wild tiger population estimates –
2024:  5,574
2022:  4,500
2010:  3,200
1980: ~35,000?
1900: ~100,000?

WHAT THEY MEAN:

From Thai newspaper Khao Sod last week:

“The Department of National Parks, Wildlife, and Plant Conservation released on December 19 the first photos of two tiger cubs and their mother in Slap Phra Wildlife Sanctuary, Kanchanaburi Province. … Over 420 automatic camera traps have been installed in 7 protected areas of the southern part of the Western Forest Complex to record the population of tigers and other wild cat species, including predators, from early 2023 to date. The area is a large wildlife corridor in a dry evergreen forest and is located near a large river. Analysis of the data from the automatic camera traps revealed that 3 tigers were photographed, an adult female listed in the tiger database under the code TWT128F, which is the mother tiger, and two cubs (with the codes SLT_Unknown003 and SLT_Unknown004).”

Is this an everyday event? A significant sighting? Probably the latter, and a very hopeful one.

Background: A 2018 National Academies of Science study guessed that, excluding fish, all the world’s vertebrates together weighed (in “dry carbon”) about 170 million tons. Humans and farm animals make up about 160 million tons of this. Vertebrate wildlife — that is, all the eagles, cobras, elephants, condors, whales, jaguars, deer, sea turtles, mice, frogs, bison, etc. — comes to a bare 10 million tons. From another perspective, Our World in Data summarizes three research papers and concludes that wild mammals weighed about 10 million tons (again in dry carbon) in 1900, and were down to 3 million tons by 2015.

Tigers’ sad modern history is part of this larger decline in wildlife and biodiversity. Zoologists guess that, when wildlife weighed 10 million tons in 1900, about 100,000 tigers patrolled a roughly triangular forest-mountain-steppe range with Korea at the top right, Indonesia at the bottom, and Iran at the top left. By 1980 the population was down to 35,000; by 2010 tigers were gone from Central Asia, Korea, Vietnam, Laos, and Cambodia, and three of the nine “subspecies” (the Caspian, Javanese, and Bali tigers) were declared extinct. The remaining 3,200 included a large group of about 2,000 Bengal tigers in India, 450 Amur tigers in Siberia, 400 Sumatrans in Indonesia, 200 Indochinese and South China tigers in Thailand, and smaller refuges of 100 to 200 in Bangladesh, Nepal, Bhutan, China, and Malaysia. The roughly 14,000 zoo and farm tigers distributed around Asia, Europe, and the United States likely outnumbered wild tigers by four or five to one.

The principal issue, for tigers as for other large wild animals, is a massive loss of habitat through conversion of wild areas to agriculture, pasture, and urban land; logging and road- and town-building, with attendant chopping up of forests into “fragments” and “islands”; and most recently climate change. As the pre-1900 tiger range contracted by about 95%, and the number of tigers shrank with it. Trade and economic factors, though a secondary concern, mean that as with elephants, rhinoceros, and Caspian sturgeon, tigers have declined faster than less “charismatic” wildlife: hunting for sport and pelts in the 20th century, more recent collection of cubs for exotic pets and tiger farming, and sale of tiger bones, blood, and organs for ill-founded medicinal purposes throughout.

Against this unhappy background, last week’s “Global Tiger Day” assessment provides, cautiously and tentatively, some reason for optimism. Since the 2010 low, wild tiger populations appear to have been growing, with surveys reporting worldwide populations of about 4,500 in 2022 and 5,574 this year. This isn’t because the estimates of the 2010s were too pessimistic or missed populations, but because of confirmation that tiger populations in several countries are beginning to rise.

Khao Sod’s report on the newly photographed cubs is an example of this. Thailand’s Western Forest Complex, a group of 12 national parks and seven wildlife sanctuaries, was thought home to around 40 tigers in 2007. By 2022 the population, tracked by the Forestry Department’s batteries of cameras, had grown to a range of “148 to 189,” and in 2024 it is “179 to 223.” Reasons: habitat has improved as government programs release prey species such as sambar deer into the sanctuaries; protection against poachers; and a program of joining disconnected sanctuaries and parks through protected “tiger corridors” – like the riverbank evergreen forest in which the mother and cubs turned up — which at least partially reverse past fragmentation of habitat into areas too small to support significant populations. Outside, meanwhile, the international environmental agreement CITES (“Convention on Trade in Endangered Species”), amplified over the past 20 years to ban domestic trade of wild tigers for pets, farming, pelts, and medicines as well as international trade — which has been banned since 1973 — may also be helping. Nor is Thailand uniquely successful: Nepal’s tiger count has risen from 121 to 355, and India’s from 2,967 in 2018 to 3,682 this year.

These are, of course, still small numbers — dozens and hundreds rather than the thousands necessary for a durable recovery. If threats of habitat loss and poaching are receding at least in some countries, climate-change concerns continue to grow. But for the first time in quite a while the trends have turned up, suggesting that tigers’ future may still be in forests rather than zoos. Perhaps, though later than you think, it’s still probably not too late.

FURTHER READING

Rebound:

Khao Sod reports, with Western Forest Complex photos.

… Enthusiastic comment from the Thai government.

… The BBC looks at Nepal’s modestly recovering tiger population.

The Hindu on rising tiger counts in India.

… And India’s National Tiger Conservation Authority.

Outside the forests:

How reliable are “zoo and farm tiger” estimates? Since the early 2000s, press and NGO reports have frequently used a figure of 5,000 in the United States, and sometimes suggested higher estimates of 7,000 or 10,000. A conservation group, the Feline Conservation Foundation, attempted a direct count in 2021. They identified 4,103 “big cats” including 1,538 tigers, 862 lions, 487 cougars, and 425 cheetahs. This doesn’t disprove hypotheses of the larger zoo and farm populations, but does put some question marks around very high numbers.

Policy:

… The U.S. Fish and Wildlife Service explains CITES.

… Immigration and Customs Enforcement estimates ~$7.8 billion to $10 billion in annual illicit wildlife trade, along with $7 billion in illegal timber trade and $4.2 billion to $9.5 billion in illegal/unreported/unregulated fishery trade.

… CITES next steps.

… And the World Wildlife Fund on tigers and climate change.

Two gloomy wildlife reports:

… Our World in Data summarizes trends in land mammal biomass.

… And PNAS looks at the big picture. Excluding nematodes and microorganisms, all world animal life weighs about 2.2 billion tons (in terms of “dry carbon.”) Bugs of various sorts — more technically, “arthropods” including insects, crustaceans, arachnids, mites, and so on — make up a bit less than half of this total. Fish at 700 million tons make up most of the rest. Humans and farm animals (including ducks and chickens) nearly equal worms, and there isn’t much space for vertebrate wildlife:

All animals 2,200 megatons
Insects, spiders, crustaceans 1,000 megatons
Fish 700 megatons
Worms 200 megatons
Farm animals 100 megatons
Jellyfish, coral, & spongse 100 megatons
Humans 60 megatons
Mollusks 20 megatons
All wild mammals, birds, & reptiles 10 megatons

 

PNAS’ study.

And two more modestly hopeful big-cat stories:

Asiatic lions remained at large in the wild from Iraq to India as recently as the 1940s, but are extinct outside western India. They also seem to be rebounding — though the numbers are nearly an order of magnitude smaller than those for tigers — with about 700, up from 400 20 years ago, in Gir Forest.

Closer to home, a wildlife biologist shot the last known U.S. jaguar in 1964. The jaguar population is much bigger than the tiger and lion groups, with about 175,000 of them living from Brazil and Peru to Mexico. Ten Mexican jaguars have been photographed exploring Arizona and New Mexico in this decade, so maybe there’s a return in prospect.  NGO Panthera explains.

ABOUT ED

Ed Gresser is Vice President and Director for Trade and Global Markets at PPI.

Ed returns to PPI after working for the think tank from 2001-2011. He most recently served as the Assistant U.S. Trade Representative for Trade Policy and Economics at the Office of the United States Trade Representative (USTR). In this position, he led USTR’s economic research unit from 2015-2021, and chaired the 21-agency Trade Policy Staff Committee.

Ed began his career on Capitol Hill before serving USTR as Policy Advisor to USTR Charlene Barshefsky from 1998 to 2001. He then led PPI’s Trade and Global Markets Project from 2001 to 2011. After PPI, he co-founded and directed the independent think tank ProgressiveEconomy until rejoining USTR in 2015. In 2013, the Washington International Trade Association presented him with its Lighthouse Award, awarded annually to an individual or group for significant contributions to trade policy.

Ed is the author of Freedom from Want: American Liberalism and the Global Economy (2007). He has published in a variety of journals and newspapers, and his research has been cited by leading academics and international organizations including the WTO, World Bank, and International Monetary Fund. He is a graduate of Stanford University and holds a Master’s Degree in International Affairs from Columbia Universities and a certificate from the Averell Harriman Institute for Advanced Study of the Soviet Union.

Read the full email and sign up for the Trade Fact of the Week.

Moss in CNN: Google has an illegal monopoly on search, judge rules. Here’s what’s next

Monday’s decision against Google will likely be remembered in the same breath as other major antitrust cases throughout history, some antitrust experts said. That list includes the breakup of AT&T’s telephone monopoly and Standard Oil, as well as Microsoft’s illegal bundling of its Internet Explorer web browser with Windows, said Diana Moss, vice president and director of competition policy at the Progressive Policy Institute.

In each of those cases, Moss said, the courts highlighted a specific business practice or mechanism — such as Microsoft’s browser bundling — as a violation of US competition law.

The Google decision this week is no different, zeroing in on the search giant’s exclusive contracts and finding huge problems with the use of such by large, monopolistic firms.

“This is definitely a landmark,” said Moss, adding that “it’s very clear in signaling that the use of exclusive contracts in the hands of a monopolist violates the law.”

Read more in CNN.

PPI Statement on Selection of Minnesota Governor Tim Walz as Democratic Vice Presidential Nominee

WASHINGTON — Today, Will Marshall, President of the Progressive Policy Institute (PPI), issued the following statement in response to Vice President Kamala Harris’ selection of Minnesota Governor Tim Walz as her running mate:

“Vice President Kamala Harris has made her first major decision since becoming the Democrats’ presumptive nominee – and it’s a good one. Minnesota Gov. Tim Walz is something you won’t find anywhere on the Republican ticket: A seasoned veteran of public service who knows how to bring Americans together and get things done.

“Gov. Walz brings the pragmatic perspective of Middle America to the Democratic ticket. He was a high school teacher and coach, a U.S. military veteran, and a former Member of Congress representing rural Minnesota. Now he’s a very popular Midwest governor in his second term, with a solid record of governing success under his belt.

“Throughout his career, Gov. Walz has shown a knack for winning the trust and votes of rural and working class voters. He flipped a swing district to win his House seat. In Congress, he stood out as a consistent public champion of the economic aspirations and moral outlook of ordinary working Americans.

“Nearly 15 years ago, as a junior member of Congress, he called for comprehensive deficit reduction, emphasizing the need to get our fiscal house in order — a vision that, if heeded, would have positioned us better today.

“Gov. Walz is a builder. As governor, he’s launched major infrastructure projects and called for permitting reform to ensure Minnesotans get access to better roads, schools and clean energy soon rather than the distant future.

“Harris’s choice of Gov. Walz to be her running mate contrasts favorably with Donald Trump’s selection of Ohio Sen. J.D. Vance. The callow Vance is an insult artist who adds little but a second troll to Trump’s ticket.

“Gov. Walz is a proven and radically pragmatic leader whose record shows he knows how to make American democracy work.”

The Progressive Policy Institute (PPI) is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Learn more about PPI by visiting progressivepolicy.org.

Follow the Progressive Policy Institute.

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Media Contact: Ian O’Keefe – iokeefe@ppionline.org

Obsolete Laws Impede a Clean Energy Future: The Case Against the Jones Act

The Jones Act is costing Americans billions in higher energy costs and delaying the deployment of green energy sources. To address these costs, in addition to the energy supply and environmental consequences of the status quo, lawmakers must reassess the utility of the act.

The Merchant Marine Act of 1920 — commonly called the Jones Act — is an obscure shipping law that requires vessels transporting goods between two U.S. ports be American-made, manned, and flagged. Originally motivated by principles of national security and protectionism, the law was passed to complement a wartime reinvigoration of domestic shipbuilding that saw the U.S. construct one of the most dominant merchant fleets in the world. A century later, however, the Jones Act now presents a major hurdle for domestic offshore energy projects and fuel transportation, resulting in higher energy prices for Americans and slower deployment of cleaner energy sources.

The U.S. offshore wind industry, already plagued by high interest rates, permitting delays, shoddy port infrastructure, supply chain issues, and recent high-profile turbine breakdowns, is desperately searching for ways to improve project costs and expediency. Building offshore wind turbines requires shipping enormous individual components to be assembled on-site, miles from land. In most countries, this is done using specialized vessels called wind turbine installation vessels (WTIVs). With no Jones Act-compliant WTIVs of its own, the U.S. employs smaller compliant vessels instead, which take significantly more trips to and from project sites, raising project costs and emissions. Currently, the U.S. only has one WTIV under construction — Dominion’s Charybdis — which has taken both years and hundreds of millions of dollars to build. Building and deploying Jones Act-compliant WTIVs is far more costly than simply enlisting foreign-owned ones, and that cost is ultimately reflected in project price tags. President Biden’s Bipartisan Infrastructure Law thankfully includes funding for port upgrades which will alleviate some of the infrastructure bottlenecks, but Jones Act reform, in addition to long overdue permitting reform, is essential for scaling offshore wind to meet our energy goals.

The act also has economic and climate implications for LNG markets. The U.S. is a major producer of natural gas, but domestic pipeline infrastructure–particularly in New England–is inadequate to satisfy consumer demand and balance the grid, and attempts to spur new projects are thwarted by neighboring states. This creates a local reliance on shipped LNG to bridge the gap, but foreign-owned vessels bringing gas from the Gulf of Mexico cannot sail to a second U.S. port, necessitating imports from abroad and slowing supply chains in a region where harsh winters make adequate seasonal energy supplies critical. And given New England’s poor electricity and gas pipeline infrastructure, many households there burn extra-dirty fuel oil for home heating that emits more greenhouse gas instead.

Because the U.S. does not possess any of its own Jones Act-compliant LNG tankers, shipped LNG that the Northeast does receive comes from Trinidad and Tobago and other distant countries. These import inefficiencies widen the rift between supply and demand, further inflating already disproportionately-high energy prices for New Englanders. With no foreseeable plans to revamp domestic shipbuilding to produce compliant LNG tankers, the law leaves regions like New England vulnerable to supply chain disruptions and stuck with an expensive and emissions-intensive energy system. These risks, in tandem with energy security concerns spurred by the war in Ukraine, motivated the New England governors to jointly request that the Department of Energy suspend Jones Act restrictions in 2022. A group of New England senators also wrote to DOE about inflated energy prices, citing increased U.S. exports as the cause of supply shortages. In reality, the Jones Act’s shipping rules and disjointed pipeline infrastructure limit supply mobility and leave consumers in the Northeast cut off from the rest of the country’s gas market, beholden instead to exports from abroad and the volatile international LNG trade.

Source: Esri ArcGIS

Energy transportation challenges imposed by the Jones Act also have heightened consequences for Americans outside the mainland. Geographically isolated places such as Alaska, Hawaii, and Puerto Rico are subjected to shipping constraints, cost burdens, and emergency response threats. In fact, the White House had to waive Jones Act requirements for LNG shipments to Puerto Rico in 2022 to enable the territory to recover from devastating hurricanes. And aside from LNG, Jones Act shipping restrictions on petroleum and oil products force Americans to forfeit roughly $769 million in unrealized consumer surplus annually — a conservative estimation which excludes areas with further inflated prices like Alaska, Hawaii, and Puerto Rico.

Ultimately, lawmakers must reassess the utility of the Jones Act. A protectionist law passed in the spirit of national security is no longer doing its job when it poses looming energy and economic concerns, and even stifles the industry it was designed to protect. Its limitations seem especially frivolous considering that the U.S. has no LNG carrier fleet of its own–and a reported 30-year timeline for building one–while countries such as South Korea are already building them more cheaply and efficiently. The lack of compliant LNG and wind turbine installation vessels, in tandem with the eye-popping costs and timelines for building them domestically, make foreign-flagged alternatives a sensible option if we could only use them.

The obvious solution is to repeal the Jones Act, however the political blowback from powerful proponents of domestic industry could be significant — despite the billions of dollars in potential economic output that would follow. At minimum, specific carve-outs or exemptions must be made for foreign specialized energy carriers to promote energy and economic security, particularly in at-risk regions. A large-scale subsidized campaign of domestic shipbuilding could offer another option in theory, but in practice the combination of high costs, fiscal and political uncertainty, existing difficulties with subsidized Navy shipbuilding, and the current availability of non-U.S. ships all strongly suggest that allowing foreign specialized energy vessels to travel between U.S. ports is the best course of action, at least in the short-term.

Until we adopt such reforms, the harmful effects of the outdated Jones Act are a stark reminder that ensuring security and reliability of clean energy–now and in the future–requires a regulatory regime that is not anchored to the past.

Evans for The Hill: Record-breaking wildfires at home are endangering US troops abroad

By Alec Evans and Evan Cooper

The U.S. military is being tested by the many fires it is trying to put out abroad. These crises pull assets from the country’s network of hundreds of foreign bases, more than 170,000 troops deployed internationally and mutual defense treaties with upwards of 50 countries.

But amid these global missions, the military is increasingly burdened by its responsibility for extinguishing literal fires across the U.S.

The U.S. armed forces have engaged in domestic wildfire suppression for over a century, but as climate change and historical forestry malpractices increase the frequency and intensity of wildfires, the military’s role in fire response has ballooned.

Keep reading in The Hill.

Amazon Tops PPI’s Investment Heroes List for Fifth Consecutive Year

WASHINGTON — The past several years have been marred by turbulent economic times for the United States, with the COVID-19 pandemic, stubborn inflation, and high interest rates threatening Americans’ economic well-being. Despite these headwinds, some companies continue to show their faith in America’s future by making significant capital expenditures. The Progressive Policy Institute (PPI) yesterday released its annual report, titled “Investment Heroes 2024: Faith in the Future,” highlighting the top 25 companies with the highest capital expenditures in the United States for 2023.

For the fifth year in a row, Amazon leads the list, investing an estimated $36.8 billion in the U.S. in 2023. This brings Amazon’s total investment in the U.S. to $183 billion since 2019. Such substantial spending has not only created hundreds of thousands of jobs but has also helped hold down consumer price increases.

“From 2021 until 2023, the first three years of the Biden-Harris administration, PPI’s Investment Heroes invested more than $900 billion in the U.S. economy. That’s nearly 40% more than the comparable total in the first three years of the Trump-Pence administration,” said Michael Mandel, Vice President and Chief Economist at PPI. “This massive surge in capital spending has been a critical driver of job creation and economic growth.”

In second place is Alphabet, with an estimated $24.5 billion in domestic capital spending in 2023. It is followed by Meta, AT&T, Verizon, Walmart, Intel, Microsoft, Comcast, and Duke Energy, rounding out the top ten.

Top Ten Investment Heroes of 2024:

1. Amazon – $36.8 billion
2. Alphabet – $24.5 billion
3. Meta Platforms – $24.2 billion
4. AT&T – $22.9 billion
5. Verizon Communications – $20.1 billion
6. Walmart – $17.7 billion
7. Intel – $16.1 billion
8. Microsoft – $15.4 billion
9. Comcast – $13.5 billion
10. Duke Energy – $12.6 billion

Top 25 Investment Heroes of 2024:

11. Chevron  $11.7 billion
12. Charter Communications – $11.1 billion
13. ExxonMobil – $10.8 billion
14. Dominion Energy – $10.2 billion
15. PG&E – $9.7 billion
16. Apple – $8.9 billion
17. ConocoPhillips – $8.2 billion
18. Oracle – $7.7 billion
19. General Motors – $7.6 billion
20. Tesla – $7.5 billion
21. ExxonMobil – $7.4 billion
22. United Airlines Holdings – $7.2 billion
23. FedEx – $5.7 billion
24. Occidental Petroleum – $5.4 billion
25. Delta Air Lines – $5.3 billion

This year’s top 25 Investment Heroes invested a record $328.3 billion in the United States in 2023, up 1.3% compared to 2022. The growth of domestic capital expenditures by PPI’s Investment Heroes has outpaced the overall growth of U.S. nonresidential investment. Since 2019, domestic capital expenditures by PPI’s Investment Heroes has risen by 34.8%, compared to a 24.2% increase in total nonresidential investment over the same period.

“Our report showcases how leading companies are committing substantial resources to the U.S. economy, driving innovation, job creation, and long-term growth,” said Andrew Fung, co-author of the report. “These investments are vital for maintaining America’s competitive edge and ensuring economic stability.”

PPI’s Investment Heroes report emphasizes the critical role of capital expenditures in powering job creation and economic growth. The U.S. economy continues to outperform its industrialized peers, thanks in significant part to the domestic investments made by the companies on this year’s list. Furthermore, these investments help hold down price increases over the long term, particularly in sectors like e-commerce, broadband, data processing and wireless, where high investment correlates with lower long-term inflation.

Read and download the report here.

The Progressive Policy Institute (PPI) is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Learn more about PPI by visiting progressivepolicy.orgFind an expert at PPI and follow us on Twitter.

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Media Contact: Ian O’Keefe – iokeefe@ppionline.org

Ritz for Forbes: No, Bitcoin Won’t Solve Our National Debt

By Ben Ritz

At a Bitcoin conference last weekend, Senator Cynthia Lummis (R-Wyo.) announced forthcoming legislation that would direct the Treasury to buy 1 million Bitcoin, or roughly 5% of the global stock, over five years (which would cost between $60 billion and $70 billion at today’s prices). Lummis claimed that the federal government would be “debt-free because of Bitcoin” if her proposal is enacted, because these Bitcoin could be sold by the federal government at a profit after 20 years. Unfortunately, there are both mathematical and conceptual problems that prevent such an approach from solving the federal government’s budget problems.

Let’s start with the math: The U.S. national debt today stands at nearly $28 trillion (or $35 trillion, if one includes “intragovernmental debt” the general fund owes to other internal government accounting entities such as the Social Security and Medicare trust funds). This year alone, the federal government spent roughly $2 trillion more than it raised in revenue, which had to be covered by borrowing that gets added to our national debt.

Keep reading in Forbes.

Investment Heroes 2024: Faith in the Future

Introduction

The United States is going through turbulent times. The shock of the pandemic, followed by soaring inflation and high interest rates, buffeted Americans. Now, despite strong labor markets and continued economic growth, many people feel pervasive uncertainty about what’s next for the country.

Against this backdrop, some companies continue to show their faith in America’s future by putting their money on the line. PPI’s annual Investment Heroes report highlights how the country’s largest companies are investing in the United States using information from annual financial reports. This year’s 2024 Investment Heroes are the 25 companies with the highest capital expenditure investment in the United States in 2023, as measured by PPI’s methodology.

For the fifth consecutive year, Amazon was #1 on the list, investing an estimated $36.8 billion in the U.S. in 2023. Since 2019, Amazon has invested $183 billion in the U.S., according to PPI’s estimates. This staggering spending on productive capital has created hundreds of thousands of jobs, while holding down consumer price increases.

In the #2 spot of the 2024 Investment Heroes list is Alphabet, with an estimated $24.5 billion in domestic capital spending in 2023. It is followed by Meta, AT&T, Verizon, Walmart, Intel, Microsoft, Comcast, and Duke Energy.

Taken as a whole, this year’s top 25 Investment Heroes invested a record $328.3 billion in the United States in 2023, up 1.3% compared to 2022. In recent years, the growth of domestic capital expenditures by PPI’s Investment Heroes has outstripped the growth of overall U.S. nonresidential investment (Figure 1). For example, since 2019, domestic capex by PPI’s Investment Heroes has risen by 34.8%, compared to a 24.2% increase in total nonresidential investment over the same period.

Here’s another sign of growth, In 2021-2023, the first three years of the Biden-Harris administration, PPI’s Investment Heroes
invested more than $900 billion in the U.S. economy. That’s almost 40% more than the comparable total in the first three years of the Trump-Pence Administration.

This massive surge in capital spending has helped power job creation and economic growth. The U.S. economy is outperforming its industrialized peers in Europe and Japan, to a significant degree due to the domestic investments by the companies on this year’s list.

But there are more benefits to capital expenditures. Over the long run, more investment in capacity helps hold down price increases. In this report, we highlight the relationship between sectors with strong investment, such as e-commerce and wireless, and long-term low inflation trends for some goods and services.

In this report, we also consider patterns of spending on research and development, which boosts innovation and productivity growth. We note the reasons that R&D spending cannot be directly integrated into the Investment Heroes ranking. Nevertheless, many Investment Heroes have huge R&D budgets. Alphabet, for example, spent $45.4 billion on R&D in 2023. Some companies are making big investments in R&D, but do not appear on the Investment Heroes list because their spending is not reflected in their capital expenditures.

We examine patterns of domestic capital investment by sector and company. The biggest contributor to the Investment Heroes list is the tech/internet sector, with six companies on the list investing a total of $97 billion in the U.S. in 2023. The second biggest contributor is the broadband/wireless sector, with 4 companies and $68 billion in domestic capital investment.

Read the full report.

TRADE FACT OF THE WEEK: U.S. public debt 99% of GDP and rising above 166% by the time November’s 18-year-old voters turn 50

FACT: U.S. public debt 99% of GDP and rising above 166% by the time November’s 18-year-old voters turn 50.


THE NUMBERS: U.S. debt/GDP ratio –  
2024: 99%
2054 (baseline): 166%
2054 (PPI “Paying for Progress” budget blueprint): 48%

 

WHAT THEY MEAN:

PPI’s 160-page budget blueprint, out last week and entitled Paying for Progress, assesses the next 30 years’ fiscal choices — taxes of all kinds, debt buildup and interest payments, health and retirement programs, national defense and “America in the world,” bridge repair and fiber-optic cable deployment, “discretionary” spending on everything from housing and science to pre-kindergarten and apprenticeship — proposes lots of ideas, and opens with a warning about the future of American government:

“Every election, we choose leaders who are supposed to levy taxes and use the revenues they collect to fund programs that benefit society as a whole. The principle that our leaders allocate public resources consistent with the values of the people who elect them is often known as “fiscal democracy.” Regrettably, in the United States today, fiscal democracy has deeply eroded.”

Authors Ben Ritz and Laura Duffy give us a way to measure this, by tracing the share of budgets that are mandatory and automatic — that is, interest payments and entitlement programs — and the share that’s ‘discretionary’ over time.  A generation ago in 1994, the ratio was 63% mandatory to 37% discretionary.  Now it is 73% mandatory, and 27% discretionary. And assuming no change, according to the August Congressional Budget Office, by 2054 it will be 82% to 18%. CBO also believes that in this “no-change” scenario, we will be spending 6.3% of annual national income — more than goes to Social Security, Medicare, or any other budget “line” — simply to pay down the national debt.

In more human terms, this November’s 18-year-old first-time voters will be middle-aged parents and homeowners in 2054.  The 82%-to-18% ratio means their taxes will overwhelmingly go to their parents’ retirement costs and interest payments, with a bit for national defense. Their ability to make other choices — tax rates, road-building, new telecom technologies to replace today’s fiber-optic cables and satellites, help for the poor, arts and environmental quality, international programs from PEPFAR to Peace Corps and embassy security, scientific research, workforce development — will be small and cramped.  One likely consequence is to further inflame the already great temptation to shift the electoral debate away from practical choices and into emotional culture wars. Another, again per the Congressional Budget Office, is that the 166% debt-to-GDP ratio in 2054 implies a fall of $5,400 in our 18-year-old’s income (in today’s dollars, using CBO’s per capita income projection) relative to the level it would reach were the current 99% ratio simply stable for 30 years.

PPI’s budget shows the way to do better, by (i) shifting taxation from work and investment towards consumption and unearned income; (ii) controlling “mandatory” spending by reversing debt buildup and saving costs on retirement; and while doing these things (iii) restoring the ability for a disciplined government to be an activist government. One among seven center-right-to-left think-tank blueprints* commissioned by the Peterson Foundation last fall, PPI’s plan is distinctive for three big results:

Fiscal democracy restored: Mixing savings in some areas, process and enforcement reforms in others, and thorough revision of the tax system, PPI’s plan by 2054 places the mandatory/discretionary spending ratio at 62%/38%, more or less the level of the mid-1990s and the most balanced ratio among the seven plans. The result puts discretionary spending at 6.5% of GDP, the highest among the seven plans, and sufficient to give the Americans of 2054 the chance to choose both an activist government and a low-debt government.

Interest burden reduced: Through tax reforms, savings in spending, and efficiency and process reforms, PPI’s plan brings the debt/GDP ratio down from today’s 99% to 48% in 2054. This debt level, last seen in 2009, is about the same as that achieved during the 1990s boom. The 48% ratio is easily the lowest among the seven plans; those in the other six range from 59% to 118%. The lower debt burden under PPI’s plan reduces interest payments by almost 75% (relative to CBO’s “baseline” projection), freeing up resources for other public purposes.

Tax policy made fairer, cleaner, and more pro-growth: To pay for the restored fiscal democracy lower debt/GDP ratio, and the reduced interest burden, PPI proposes a thorough revision of tax policy, fundamentally based on reducing taxation of work, shifting taxation towards consumption and pollution, and encouraging progressivity. This includes canceling the payroll tax and replacing it with a value-added tax and a carbon tax; replacing the antiquated estate and gift tax with a progressive inheritance tax; and replacing several regressive and inefficient tax expenditures, such as the state and local tax and college savings deductions, with better-targeted grant programs. Alone among the seven plans, PPI’s blueprint also looks hard at the tariff system, reducing hourly-wage families’ cost of living and stopping selective taxation of goods-using industries — e.g. manufacturing, retail, construction, farming — by cutting away most Trump-era tariffs and pre-Trump tariffs on industrial inputs and consumer goods not made in the United States.

In sum, a very ambitious plan with a lot of ideas: a restoration of eroded fiscal democracy; a shift in taxation from work to consumption and unearned income; a vote for disciplined but activist government; and a hope to lighten the burdens now accumulating upon hourly-wage families and this year’s young voters.

* In alphabetical though not ideological order, the American Action Forum, the American Enterprise Institute, the Bipartisan Policy Center, the Center for American Progress, the Economic Policy Institute, and the Manhattan Institute.

FURTHER READING

PPI’s Budget Blueprint.

… From the New Liberal podcast, budget authors Ben Ritz and Laura Duffy explain.

… Ritz in Forbes.

… and the Peterson Foundation compares and contrasts PPI’s approach with 6 other plans.

And for those wanting a bit more tariff background:

Ed Gresser on inclusivity, regressivity, and bias in tariff policy.

Elaine Wei explains how, uniquely in the world, U.S. clothing tariffs tax women’s clothes higher than directly analogous men’s clothes.

Reps. Lizzie Fletcher (D-TX and New Democrat Coalition Trade Task Force Chair) and Brittany Pettersen (D-CO) introduce the Pink Tariffs Study Act, directing the Treasury Department to review the tariff system for gender bias and regressivity.

And the Trump campaign’s Depression-like tariff proposal.

Read the full email and sign up for the Trade Fact of the Week.

 

Listen up Democrats: Don’t Forget Health Care

In 1992, James Carville coined his famous phrase, “It’s the economy, stupid.” Inside the Clinton campaign, a laser-like focus on economic issues resonated deeply with voters grappling with a recession they attributed to the policies of George H.W. Bush. Carville’s focus ultimately propelled Clinton to victory. But that famous slogan was only one of three key messages on which the Clinton campaign focused. The lesser-known others were “Change vs. more of the same” and “Don’t forget health care.”

As Democrats gear up for the upcoming elections, it’s clear that voters have a lot on their minds. Recent swing state polling data, commissioned by the Progressive Policy Institute, sheds light on what’s really driving voter concerns. The full poll results and an accompanying memo present a golden opportunity for Democrats to solidify their standing as the party of pragmatic solutions for Americans’ concerns on the economy and where voters believe healthcare costs have run amok.

Let’s face it: The economy is top of mind for most voters. Inflation and the skyrocketing costs of food and housing are causing serious anxiety across the board. This trend cuts across all demographics, signaling a pressing need for an effective economic strategy accompanied with a simple message that voters can understand. Democrats have long struggled in the past to win over voters on economic issues, but there’s a real chance to change that narrative by tackling these concerns head-on.

When it comes to health care policy in general, voters generally trust Democrats to handle the policy. Half of the voters trust Democrats more on setting policy related to the price of prescription medications, compared to 40% who trust Republicans. Democrats are also seen as more reliable when it comes to ensuring U.S. drug makers continue to innovate and develop new treatments. And with abortion rights under threat, Democrats will again mobilize voters as they vow to protect access to abortion, contraception, and women’s health care priorities.

Looking specifically at health care costs, while important, they rank third on the list of costs that are most concerning to voters — well below food and housing. A total of 13% of respondents named health care costs as their most pressing concern, compared to 22% who said food and another 19% who pointed to housing costs This suggests that while health care costs remain critical, Democrats need to balance their focus with broader economic policies to truly resonate with the electorate.

The poll then delves into health care costs more specifically. The cost of health insurance is by far the biggest worry, with 28% of voters citing it as their top issue. Out-of-pocket costs and the expense of doctors and hospitals are also major concerns, particularly among Republicans and non-college white voters. While capping the cost of key prescription drugs like insulin is a popular move and common talking point by Democrats on the campaign trail, only 8% of voters think Congress should prioritize expanding Medicare negotiations for more medicines. Voters are much more concerned about the overall cost of health insurance and are looking for more from their leaders on this challenge.

Additionally, the poll highlights several other policy areas that voters prioritize. When asked about the most important policy priorities for the party that controls Congress next year, a significant 30% of voters want to see more investment in manufacturing, energy production, and other industries. Another 24% support increased IRS action to ensure billionaires and millionaires pay their fair share of taxes. These priorities show that voters are looking for comprehensive economic strategies that extend beyond health care.

The poll’s findings underscore the need for strategic messaging that balances health care costs and more pressing economic priorities. When crafting their pitch, Democrats should consider:

• First and foremost, emphasizing broader economic policies that address inflation, housing, and food costs, which align with voters’ top concerns.

• Advocating for investment in manufacturing and fair taxation policies, which resonate strongly with key voter demographics and are more top of mind than health care costs.

• Refocusing the primary message on health care costs to address the cost of health insurance message, rather than solely the cost of prescription drugs, in order to better match voter priorities.

By adopting a balanced approach that addresses both healthcare and broader economic issues, Democrats can effectively connect with voters and reinforce their position as practical leaders committed to addressing the most pressing concerns of the American people.

Reimagining DEI in Universities

Over the past few years, there has been a rise in illiberalism across the United States. One of the most concerning places where this is occurring is at our higher education institutions, the very place that is supposed to nourish freedom of thought and the free exchange of ideas. According to the 2024 College Free Speech Rankings report by College Pulse and the Foundation for Individual Rights and Expression (FIRE), almost two-thirds of surveyed college students believe that it is acceptable to “shout down a speaker to prevent them from speaking on campus.” While there are many reasons for this intolerance of different viewpoints among college students, one very important reason is due to poorly constructed diversity, equity, and inclusion (DEI) programs at these institutions. Diversity, inclusion, and equal access to opportunity are important values but can be harmful when implemented with the wrong approach. These programs have been heavily influenced by anti-racism, an ideology that promulgates that all racial disparities are due to racism and calls for unending discrimination in order to make up for past injustices. An ideology such as this elevates race as the most important attribute, pits racial groups against each other, and increases intolerance for those that differ in opinion because if you are not anti-racist, you are a racist.

This intolerance has seeped deep into our higher education institutions, and I have seen it first hand in the classrooms. For example, I took a political science class this past year at the University of Michigan and one day, we were debating about DEI and its funding at the university. The first student who spoke for the side of “increasing funding for the university’s DEI program” ended their argument by saying “and if you don’t support a strong DEI program, then you shouldn’t be here.” This was followed up by a round of finger snaps from the students’ side which showed that they supported the message. Now, whether or not the student meant that you shouldn’t be in the classroom, in the class, or at the university, is not important. The message was clear, an opposing view of the DEI program was unwelcome. I believe that this moment perfectly encapsulates what DEI currently stands for. A program that calls for diversity and inclusion, and yet does not value diversity or inclusion of differing opinions.

This intolerance, however, is not exclusive to the University of Michigan. An analysis by the EAB, an education consulting firm, of 130 statements by U.S. and Canadian universities on racial justice and anti-racism in 2020 after George Floyd’s murder by Minneapolis police found that 60% of the statements included some sort of short-term institutional commitment to anti-racism. This ideology is clearly not a fringe theory at our higher education institutions and has some substantial, negative consequences for free inquiry. A statistical analysis by the Heterodox Academy, a non-profit advocacy group working to protect free speech and viewpoint diversity on college campuses, found that “the size of a university’s DEI bureaucracy is […] strongly correlated with how students feel about allowing controversial conservative speakers on campus.” This means that the larger the DEI bureaucracy, the more intolerant students are of allowing controversial conservative speakers on campus. For example, when looking at support for preventing a speaker who once said “Black Lives Matter is a hate group”, a predicted 66% of students at universities with the smallest DEI bureaucracy support the prevention while a predicted 80% of students at universities with the largest DEI bureaucracy support the prevention. Furthermore, the study also found that “the size of a university’s DEI bureaucracy is significantly and positively correlated with student support for disruptive action.” More specifically, “universities with the largest DEI bureaucracies are predicted to have student populations” that are 19 percentage points “more supportive of shout-downs,” 10 percentage points “more supportive of blockades,” and 12 percentage points “more supportive of violence” than student populations of universities with the smallest DEI bureaucracy.

While this study does not indicate causation, it does show that there is a strong connection between the size of university DEI bureaucracies and intolerance of conservative speakers, who usually hold a differing opinion from the majority of students at liberal universities. However, this does not mean that DEI must be dismantled. Instead, it needs to be reimagined. First, these programs must distance themselves from anti-racism as there is no benefit in following an ideology that calls for continuous discrimination based on race which pits racial groups against each other. This only creates division among students and intolerance for differing opinions. Second, there must be a commitment to diversity and inclusion, not only of different races, but also of different political perspectives. In a time of rising illiberalism, universities should be at the forefront of free speech, allowing for different viewpoints to be disseminated and debated. Only then, will students of all different perspectives feel like they belong in the classroom and the university community.

Manno for The Liberal Patriot: An Education and Training Agenda for Working-Class Families

By Bruno Manno

Looking back on the past 40 years, many working-class Americans are justifiably glum about their economic position in the country.

According to opinion research conducted with working-class Americans (defined as those without a college degree) over the past year for the Progressive Policy Institute’s Project on Center Left Renewal, two out of three believe the working class is worse off today than it was four decades ago while only one in five believe the working class is better off. Despite overall displeasure, working-class Americans do retain hope for the future and look specifically to improved educational opportunities as a possible pathway to economic mobility for their children and themselves.

However, this research finds working-class voters divided on which political party will actually advance their educational and economic interests.

Keep reading in The Liberal Patriot.