Category: Domestic Policy

The US Jobs Market and The EU vs. Russia

The Daily Escape:

Sunset, Lake Sammamish, Issaquah, WA – June 2022 photo by Gary Hamburgh

Two pieces of news to think about today.

First, you can always tell when an economic boom is nearing its end, because the jobs market begins to get shaky. That seems to be starting. The WSJ reports that:

“Businesses in several different industries are rescinding job offers they made just a few months ago, in a sign the tightest labor market in decades may be showing cracks.”

No need to panic just yet, the labor market remains strong, with an unemployment rate at 3.6%, near a half-century low. But signs of retrenchment in hiring shows that executives are having trouble predicting the economy over the next 12 months.

And when companies revoke job offers, it indicates their view of the future business outlook has changed so quickly that it’s undoing hiring plans made only a few weeks before.

Many hiring managers say signing up new recruits remains highly competitive. The WSJ reports on a Gartner survey of more than 350 HR executives conducted in May that found around 50% thought the competition for talent would increase over the next six months. Nearly two-thirds said they hadn’t made any changes to their hiring practices or HR budgets in response to economic volatility.

But it seems there are changes afoot. Country wisdom says that a storm rarely hits us without warning. The skies turn dark, the wind picks up, the birds go quiet. It’s possible to see the signs before the storm hits if you know what to look for. We’re seeing signs now of what’s to come.

Second, there’s an adage, attributed to Trotsky, but difficult to verify, that says: “You may not be interested in war, but war is interested in you.” Those words are apt in today’s situation between Europe and Russia. CNN is reporting about an emerging flashpoint between Russia and the EU:

“Tensions are mounting around…the Russian exclave of Kaliningrad, an isolated but strategically significant territory on the Baltic coast…Russia has reacted furiously after Lithuania banned the passage of sanctioned goods…into Kaliningrad. But Lithuania says it is merely upholding European Union sanctions, and the European bloc has backed it.”

Kaliningrad is Russia’s westernmost territory and it has no land connection to Russia. It’s the only part of Russia that is completely surrounded by EU states. Here’s a map:

Estonia, Latvia, Lithuania, and Poland are all members of NATO, surrounding Kaliningrad militarily. Since Russia invaded Ukraine, experts have feared that Kaliningrad might become the next flashpoint in tensions between Moscow and Europe.

Russia says that Lithuania’s sanctions on goods transit is a blockade in violation of a 2002 agreement to allow goods to flow between Kaliningrad and Russia. Sanctions apply to about 50% of Russian shipments. The sanctioned products include construction machinery, machine tools and other industrial equipment. But food and personal travel are not sanctioned.

Since the Baltic freezes during the winter, resupplying Kaliningrad will become particularly difficult in about six months. Lithuania has also closed its airspace to Russia. A Berlin-style airlift could prove problematic as well.

Lithuania has spent years building a liquid natural gas (LNG) port and the infrastructure necessary to connect to Nordic and EU grids. She was therefore able to shut off Russian oil, gas, and coal quickly and is in a better position to do without Russia’s gas than the rest of the EU.

Lithuania imports 70% of its electricity from Sweden through a dedicated underwater cable. Sweden’s power is nuclear and hydroelectric, thus independent of Russia as well. Lithuania is also in a position to supply gas to Latvia, Estonia, and Poland through their LNG terminal.

So is Europe at a flashpoint? There’s little Moscow can do to Lithuania beyond threaten.

Is it just a matter of time before NATO and Russia are in a shooting war? Doubtful. Russia could try cutting off all oil, gas, and coal exports to the other NATO countries. Russia could then say they would sell to any countries that left NATO. That might not pop NATO’s balloon, but it might take some of the air out of it.

If Russia decided to do that, it would have to find a way to transport it’s oil, gas, and coal to alternate customers. That can’t happen quickly. Given that the adversarial relationship between Europe and Russia may last a decade or more, Russia will probably have to find alternative customers regardless.

Neither side wants to undertake drastic changes in energy supply too precipitously.

Wrongo doubts the Kaliningrad situation will lead to war, but each provocation and escalation increases the odds. We’re playing in a very high stakes game, given the nuclear weapons on all sides. But Europe and NATO can’t automatically bow to Russia’s threats.

NATO can’t be unwilling to fight, but there’s a difference between that and provoking a war. Right now, it’s difficult to see a peaceful end game between the US, NATO, and Russia

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Monday Wake Up Call – June 20, 2022

The Daily Escape:

Field of Valerian at Indian Henry’s Crossing with Mt. Rainier in background, WA – June 2022 photo by Edwin Buske Photography. Oh, and a deer.

For more than 100 years, there have been attempts to improve telephone, cable, and internet services in the rural areas of America. Most of them have failed because it isn’t profitable for private firms to string wire to a small group of users who live at great distance from the nearest phone, or cable company.

This is a problem that requires government help, in particular, from the federal government. And there’s an abundance of government grant and loan money available to help rural America build broadband connections in unserved areas.

Recently the bipartisan infrastructure bill created the Broadband Equity, Access and Deployment Program (BEAD) and the State Digital Equity Act to provide money to underserved areas through the National Telecommunications and Information Administration.

The $42.5 billion BEAD Program automatically gives each state $100 million to start, but to receive additional broadband funding, local governments must apply for grants that are due by July 18. The State Digital Equity Act has $1.5 billion to allocate, and state’s letters of intent are due July 12. Not much time left.

The American Rescue Plan Act (ARPA) also has a pool of $10 billion to expand broadband through the Coronavirus Capital Projects Fund, supervised by the Treasury Department. States had until Dec. 2021 to apply for the fund program, and until Sept. 24, 2022, to submit a grant plan to the Treasury.

But as always, distributing government money efficiently is an issue. Early in June the Government Accountability Office (GAO) issued a report “National Strategy Needed to Guide Federal Efforts to Reduce Digital Divide,” that found many flaws with these programs:

“Federal broadband efforts are fragmented and overlapping, with more than 100 programs administered by 15 agencies. Many programs have broadband as their main purpose, and several overlap…”

More:

“Despite numerous programs and federal investment of $44 billion from 2015 through 2020, millions of Americans still lack broadband, and communities with limited resources may be most affected…”

Here’s the GAO’s chart of the overlapping jurisdictions:

Looks impossible to navigate. The WSJ weighed in focusing on the FCC’s role. They concluded:

“…many residents are still stuck with service that isn’t fast enough to do video calls or stream movies—speeds that most take for granted. Many communities have been targeted for broadband upgrades at least twice already, but flaws in the programs’ design have left residents wanting.

The WSJ found that areas with a combined population of 5.3 million people had previously been fully or partially covered by at least one federal broadband funding program. But the FCC’s rules didn’t require ISPs or Telecoms to serve all customers equally, as long as they served a minimum number of locations statewide.

That allowed internet providers to pick only the profitable customers to upgrade. This meant they could take public money while leaving pockets of homes and businesses without access.

Wrongo detests that public monies are lining the pockets of private firms who won’t solve their own problems. He detests that our government can’t get out of its own way, even after Congress rouses from its slumber and allocates funds that can help out rural Americans.

Republicans blame big government inefficiency, and they have a point. They also laud Elon Musk’s Starlink low-earth orbit satellite internet service. They say it proves that private industry can solve this problem. Except that there’s a 2+ year wait for Starlink services in much of rural America. And it’s estimated that the Starlink ground antenna costs $2500 to build, but is sold for $600. Who’s paying the difference?

And Starlink satellites have to connect to ground stations (NOCs) that connect to the web. Starlink’s speeds have slowed recently because they haven’t built NOCs fast enough.

It will never be profitable for private firms to connect the last mile to very rural homes. So there’s a role for government, properly managed. We subsidize the farms, roads, postal service, telephones and now, the broadband needs of rural people. Apart from factory farms, these are among the least economically productive areas in our economy.

And the best part? They hate the people who foot the bill!

Time to wake up America! Our public-private “partnerships” that are trying to get internet services to the toughest to reach parts of the country aren’t working. They need more red-tape cutting and more corporate CEO feet held to the fire if they are to work.

This can be done. America went to the moon before we put wheels on luggage.

To help you wake up, let’s spend a few minutes with Paul McCartney, who turned 80 recently. Take this opportunity to cherish his presence. Here’s McCartney doing “Jet” live at Glastonbury in 2004 when he was 62:

Don’t worry, nobody knows what the song is about.

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Saturday Soother – June 18, 2022

The Daily Escape:

Rainy morning, with Vista House at Crown Point in right foreground, Columbia River Gorge, WA – June 2022 photo by David Leahy Photography

Wrongo has written before about the crushing burden of consumer debt in the US. Medical debt is an American disgrace, and Noam Levey, Kaiser Health News (KHN) Senior Correspondent has written an excellent piece about it. He says that 100 million people in America, some 41% of adults, owe some level of debt to healthcare providers.

But most studies don’t reveal the actual extent of the debt because much of it appears as credit card balances, loans from family, or payment plans arranged with hospitals and other medical providers. To calculate the true extent and burden of this debt, KHN partnered with NPR, and the Kaiser Family Foundation (KFF) to conduct a nationwide poll designed to capture not just bills patients couldn’t afford, but other forms of borrowing used to pay for health care.

The results are contained in the KFF Health Care Debt Survey. The KFF poll found that half of US adults don’t have the cash to cover an unexpected $500 health care bill. As a result, many simply don’t pay their medical bills. The flood of unpaid bills has made medical debt the most common form of consumer debt in America.

Over the past five years, more than half of US adults report they’ve gone into debt because of medical or dental bills. Moreover, a quarter of adults with health care debt owe more than $5,000, and about 20% with any amount of debt said they don’t expect to ever pay it off.

Debt incurred for health care is forcing many families to cut spending on food and other essentials. The poll also found that millions are being driven from their homes or into bankruptcy:

So, if 100 million people were in debt and 17% declared bankruptcy or lost their home, that’s 17 million people! The KFF poll found that the debt is also preventing Americans from saving for retirement, investing in their children’s educations, or buying a home. And debt from health care is nearly twice as common for adults under 30 as for those 65 and older. And that age cohort is supposed to be much healthier than the elderly.

Perversely, about 1 in 7 people with medical debt said they’ve been denied access to a hospital, doctor, or other provider because of unpaid bills. An even greater share (two-thirds) have put off care that they, or a family member need because of the cost.

Hospitals are among the culprits. They are capitalizing on their patients’ inability to pay. Hospitals and other medical providers are pushing millions of patients who can’t afford to pay into credit cards and other loans. These are high interest rate loans, carrying rates that top 29%, according to research firm IBISWorld.

This collections business is fed by hospitals, including public university systems and nonprofits granted tax breaks to serve their communities, who sell the outstanding debt to collections companies.

Welcome to the best country on earth, (maybe) one that doesn’t have the best health care system (and certainly one without  health insurance for all). We have a system which shackles 100 million people to medical debt while at the click of a computer mouse, we send $billions in armaments overseas before those same dollars are recycled into the coffers of our Military-Industrial complex.

That’s all for this week. It’s time for our Saturday Soother, when we take a break from the J6 public hearings and whether Ginni Thomas was another Trumpist plotter. Let’s focus on calming ourselves for whatever insults are coming next week.

Here at the Mansion of Wrong, we’re engaged in an air conditioning project, adding more central air to our home. Hey, we’re aware of the crummy stock market, and the rampant inflation, but consume we must.

To help you clear your head on this warm weekend, grab a seat outdoors and brew up a cup of Supernatural coffee ($18.45/12 oz.) by Lee, MA’s own Barrington Coffee Roasting Company. This espresso is said to have flavors of Concord grape, dark chocolate, plum and tangle berry pie!

Wrongo has no idea what tangle berries look like, much less what they taste like.

Now, put on your wireless headphones and listen to the “Adagio for Oboe, Cello, Organ and Strings”, also known as “Elevazione” or “All’Elevazione” by Domenico Zipoli.

Zipoli was an Italian Jesuit priest who lived much of his life in what is now Argentina. He studied with Scarlatti, became a Jesuit, worked as a missionary, and died in 1726 in Argentina at age 38. If fate had granted Zipoli another 20 to 25 years, he might be regarded today as a major composer. Here it’s performed in 2015 by the Collegia Musica Chiemgau conducted by Elke Burkert :

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Saturday Soother, Inflation Edition – June 11, 2022

The Daily Escape:

Blackfish Creek, Wellfleet, MA – June 2022 photo by Jo LF

Wrongo and Ms. Right are on the road again, this time on Cape Cod visiting family. So this column will be brief. We saw on Friday that the Bureau of Labor Statistics gave us more bad news, that inflation jumped higher in May. That caused the Dow to decline by 880 points or about 2.7%.

From the Bondad blog: (parenthesis by Wrongo)

“People who were hoping inflation would abate did not get the news they wanted from the May CPI. Consumer prices rose 1.0% in that month alone. Inflation less energy rose 0.7%, and “core” inflation less food and energy rose 0.6%. On a YoY (year over year) basis, prices are up 8.5%, tied for a multi-decade high with a few months ago. Core prices are up 6.0%, down slightly from their February and March peak…”

Bondad says that this means that the Fed will continue stomping on the brakes. The big question is whether the Fed can engineer a relatively short and gentle recession, perhaps in 2023. Or whether instead, they engineer a good, old-fashioned “bust” that hurts all of us.

A recession happens when the economy contracts for two successive calendar quarters. In the first quarter of 2022, GDP declined 1.6%. If we see a similar result for the second quarter, this will meet the classic definition of recession.

Will that happen in 2022? Maybe. Will it happen in 2023? Probably. It is highly unlikely that the Fed’s actions alone will bring aggregate demand down to normal levels relative to supply.

Republicans are messaging that it’s the Biden administration’s fault that inflation got out of control. But if you remove politics from the equation, the reasons are the pandemic’s severe global economic impacts, and the efforts by both the Trump and Biden administrations, along with the Fed, to stimulate the US economy.

The stimuli led to a booming economy, even though it didn’t help everyone. The Fed’s inability to react quickly then left them behind the curve. Russia’s invasion of Ukraine created an oil shortage, that pushed gasoline prices even  higher.

The complex causes of our current inflation doesn’t lend itself to either Party presenting workable solutions in the short term. And they certainly can’t do that by using sound bites. And you shouldn’t expect the media to either provide both sides of the argument, or to detail what’s being offered to solve the problem.

After all, we’re in an election year.

Wrongo will wait a few more days before saying much about the J6 public hearing. We didn’t get to see much of it, but the WaPo says that about 19 million people watched the first public hearing. The preliminary data come from Nielsen and do not include the millions more who watched the hearing on streaming apps or social media, where a few clips of the testimony went viral.

The Post also provided some context, comparing the viewership of this hearing to Watergate and to Trump’s first impeachment:

“….some 71% of Americans told Gallup that they watched some of the Watergate hearings live back in 1973, the first televised hearing of Donald Trump’s first impeachment trial drew only about 13 million viewers in 2019…”

It’s time to let the millions of words about the hearing slip from your mind, and to get yourself into a place of calm reflection. That means it’s time for our Saturday Soother. We’re here on the Cape trying to do just that. The weather so far is fantastic. And we’re scheduled for dinners at two fabulous restaurants over the next two nights, in both cases, eating outdoors.

So, take a few minutes to center yourself by grabbing a chair outside, putting on your wireless headphones and listening to Lili Boulanger’s “D’un matin de Printemps” (On a spring morning). Lili wrote this piece in 1917 when she was 23. Boulanger was a child prodigy, but she battled bronchial pneumonia throughout her short life, dying a year later at age 24.

Here is the piece played in 2017 by the Chicago Youth Symphony Orchestra, conducted by Allen Tinkham at Orchestra Hall, in Chicago:

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J&J’s Texas Two-Step

The Daily Escape:

Wallowa Lake near Joseph, OR – May 2022 photo by Danny J Goff

From Judd Legum:

“Nearly 40,000 lawsuits have been filed against Johnson & Johnson (J&J), alleging that the company’s baby powder causes cancer. The lawsuits claim that customers became sick with mesothelioma or ovarian cancer after being exposed to asbestos contained in talcum powder.”

In July 2018, a Missouri jury awarded $4.7 billion in damages to 22 women who said they contracted ovarian cancer from J&J baby powder. According to judge Rex Burlison, J&J:

“…knew of the presence of asbestos in products that they knowingly targeted for sale to mothers and babies, knew of the damage their products caused, and misrepresented the safety of these products for decades.”

Obviously J&J appealed, and an appeals court reduced the verdict to $2 billion. J&J wasn’t satisfied and further appealed the verdict, ultimately to the US Supreme Court. In June 2021, however, the Supremes refused to hear the case, letting the $2 billion award stand.

J&J had no interest in bankruptcy, but came up with another strategy to protect most of its assets from the current and any future judgements. In July 2021, the company launched “Project Pluto,” in which J&J would create a new subsidiary, LTL Management, which would “own” the liability for the baby powder litigation. It also would receive about $2 billion in cash. LTL would then declare bankruptcy.

More from Judd Legum:

“J&J is attempting to exploit a 1989 Texas law, deploying a legal maneuver known as the “Texas two-step.” J&J temporarily became a Texas company and then executed a “divisive” merger. The move split J&J into two new companies: one with almost all of the assets and no baby powder liability and another with all of the baby powder liability and few assets.” The latter almost immediately filed for Chapter 11 bankruptcy.

More:

“By filing for bankruptcy, all civil litigation against LTL Management is immediately halted. The claimants no longer have the ability to have their claims heard in court. Instead, if the scheme is successful, all claimants have to split up a limited pool of assets defined by J&J.”

That’s the “Texas Two-Step.” You may remember that in 2021, the NRA had requested to be reincorporated in Texas when it filed for bankruptcy, a move hailed by Texas governor Gregg Abbott. It would also have led to splitting the NRA into two companies, with the liability in the new firm. That effort failed when a Texas judge wouldn’t allow the move without the approval of New York State, something NYS wouldn’t do.

It’s possible in every state to split a company’s assets and liabilities through a spin-off, and spin-offs have often been used to fraudulently transfer assets that might be part of a bankruptcy. The Two-Step exploits a quirk of Texas law, which defines “merger” as including not just two companies merging into one, but also the exact opposite, when a company divides into two or more entities.

Texas and Delaware are the two states that allow for such “divisive” mergers. This type of “merger” avoids what in bankruptcy circles is called a “fraudulent transfer” of assets, assets that should by rights be considered a part of the bankruptcy estate to be divided among the firm’s creditors.

The deemed lack of an asset transfer is what makes the Texas Two-Step unique and interesting to J&J.

The Senate Judiciary Subcommittee on Federal Courts, Oversight, Agency Action, and Federal Rights, led by Sen. Sheldon Whitehouse (D-RI), is looking into the legality of the Texas Two-step:

“It does not make sense for a $450 billion corporation with 38,000 people with potentially lethal injuries to be able to carve off $2 billion…and walk away from the responsibility for what it did.”

We’ll see what becomes of the lawsuits against J&J and the LTL Management company.

More broadly, this shows we need to substantially strengthen the US bankruptcy fraudulent transfer laws. Unfortunately, that’s a political fight between the capitalist wolves and the consumer lambs, with all the best lawyers on the side of the wolves. For example, J&J has retained Neal Katyal, former Acting US Solicitor General under Obama to help with their liability carve-out. Katyal is earning $2,465/hour while working for J&J. Seems reasonable, no?

The wolves know that the legal positioning really matters. They will fight tooth and nail to keep the firm’s money in the firm and out of the hands of the plaintiffs. Even though there are substantially more lambs than wolves, the lambs have neither the resources nor the smarts to protect themselves.

These greedy schemes by America’s biggest firms are designed to dodge financial responsibility. J&J is attempting to cheat cancer patients from getting what the courts have already awarded them.

The management and their attorneys should face prison time for depriving justice to these consumers who won in court.

If we can’t bring Capitalism to heel, it must go.

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Saturday Soother – May 28, 2022

The Daily Escape:

Memorial Day, Arlington National Cemetery – May 2013 photo by William Coyle

Welcome to America’s Memorial Day weekend, when we remember those in the military who died in service to the country. But this year, we must also honor those who have died from mass murder by gun right here at home.

We need a three-day weekend. We need a break from the slowly unveiling and depressing news out about how shamefully the police of Uvalde, TX reacted to the killer. We also need a break from listening to the tepid responses by both political Parties.

The Republicans are saying the same as always: The country should not have stricter gun control. Why do Republicans refuse to act? Beyond the fact that many believe stricter gun control would not prevent such mass shootings, recent polling data reveal that there’s less political pressure on them than you might have thought.

Let’s examine the public mindset on the gun control debate as shown in Gallup’s polling conducted in October 2021 and January 2022. Both polls found a slight decrease in support for stricter gun laws compared with the prior year’s measures. Here are the top line results:

Last October, 52% of Americans indicated they wanted stricter gun control, while 46% either thought laws should be kept the same (35%) or made less strict (11%). The headline is that Americans’ support for stricter gun control fell five percentage points from October 2020 to the lowest since 2014.

That decline was driven by a 15-point plunge among independents, while Democrats’ desire for more restrictive gun laws ticked up six points to 91%. Republicans’ views were essentially unchanged, at 24%, (after dropping 14 points in 2020).

Of course, these numbers can be hard to understand when polls also indicate that north of 80% of Americans want universal background checks for guns, which Democrats have been pushing for in Congress and which most Republicans won’t go along with.

Why? There’s no sign that the polling on background checks holds up when its on the ballot. CNN’s report (March 2021) showed that ballot measures for background checks have appeared on ballots in California, Maine, Nevada, and Washington.

In all four, the pro-gun control side’s vote margin was worse than the Democrats’ baseline in the same state. In 2016, Clinton won California by 30 points, while gun control won by 27 points. In Maine, Clinton won by 3 points, while gun control lost by 4 points. In Nevada, Clinton won by 2 points, while gun control passed by a single point. Lastly, Washington passed its gun control law by a little less than 19 points in 2018, while Washington state’s House Democratic candidates won by a bigger margin in the same year.

The question is: Why would Republicans feel political pressure to support more gun control, when something that polls as well as universal background checks doesn’t draw as much support as the Democratic presidential candidate?

And here are a few more depressing thoughts. First, before the assault weapons ban went into effect in 1994, there were about 400,000 AR-15 style rifles in America. Today, there are 20 million.

Second, it’s doubtful that you were aware that there is an active group of school principals who have survived a school shooting. It’s called the Principal Recovery Network, a support group of sorts that mobilizes to help principals in the immediate aftermath of a school shooting. Frank DeAngelis, the former principal of Columbine High School says:

“It’s like that club that no one wants to belong to,”

They provide support for a principal who’s having his/her worst professional day. In every scenario, the goal is to help a principal in crisis. This is America: We put all this energy into dealing with the aftermath of a preventable trauma, and that now includes therapy for principals. We’re in this dark place because we will not open our eyes.

And for the 21st time since a mass shooting in Isla Vista, Calif. in 2014, the satirical site The Onion republished its saddest headline:

“No Way To Prevent This,” Says Only Nation Where This Regularly Happens

The best way to stop a bad guy from getting a gun is prevention.

Time for our long weekend Saturday Soother. The blog may be taking some time off, so don’t expect to see another column before Tuesday.

In view of the Memorial Day observance, and to remember those who died in Texas, listen to Samuel Barber’s “Adagio for Strings”, played in the original version by the Dover Quartet. Barber finished the arrangement in 1936. In January 1938, Barber sent an orchestrated version of the Adagio for Strings to Arturo Toscanini. The conductor returned the score without comment, which annoyed Barber.

Toscanini later sent word that he was planning to perform the piece and had returned it simply because he had already memorized it! It was performed for the first time by Toscanini in November, 1938. Here, for the third time on the blog, is the quartet version of “Adagio for Strings”:

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Which States Are The Best for Working Moms?

The Daily Escape:

Sunrise, Columbia Hills, WA – May 2022 photo by Mitch Schreiber Photography

Each year, WalletHub ranks the best and worst states for working mothers. Below is an overview of their methodology and findings: Women make up nearly half of the US workforce, and nearly 68% of moms with children under age 18 were working in 2021.  That share of the workforce declined during Covid, dropping around 1.3% between Q3 2019 and Q3 2021 (compared to 1.1% for men).

We know that women face an uphill battle in the workplace, with their average hourly wage being just 84% of what men make. They face other non-financial problems as well. Parental leave policies and other childcare support systems vary by state, but the quality of infrastructure — from cost-effective day care to public schools, is far from uniform.

WalletHub compares state performance across 17 metrics to rank the best & worst states. They compared the 50 states and the District of Columbia across three key dimensions: 1) Childcare, 2) Professional Opportunities and 3) Work-Life Balance:

“We evaluated those dimensions using 17 relevant metrics…with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for working moms. We then determined each state and the District’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.”

WalletHub’s weighted average for the three categories was as follows: Childcare = 40 possible points, Professional Opportunities = 30 possible points, and Work-Life Balance = 30 possible points, totaling 100 points available per state. That translates into the overall total score below. Here are the top 10 US states for working mothers with individual state rankings by category:

It’s very telling that America’s best score was 62.99 out of 100, meaning that all states have a long way to go to make us a nation that supports women and mothers. Wrongo is happy to note that Connecticut is #1 in job opportunities for women. Here are the bottom 10 states:

Note that only California of the bottom 10 states is an urban (and blue) state. It gets killed in the rankings because of its terrible performance on childcare. If you are interested in how your state ranked, you can see an interactive map of all the states here. WalletHub also compared the top and bottom five states across a few of their metrics. Here’s what those rankings show:

According to a recent report, more than 2.3 million American women have dropped out of the labor force since the start of the pandemic. Solving the problems that keep these women out of the workforce should be a focus for all of the states.

This is particularly true for service and front-line workers whose work scheduling can be unpredictable and for many jobs, there is limited flexibility. Companies should do more. They can create more flexible work environments, allowing parents to take short-term time off. They can strive to eliminate schedule unpredictability for hourly workers. Companies can also work to change their culture to better recognize work-life balance.

The biggest hypocrisy of the anti-abortion movement and the Supreme Court’s apparent decision on abortion is that the Justices and the Republicans are willing to go to the mat to protect the unborn, but that commitment mysteriously vanishes once a child exits the womb.

In many cases, these same zealots are actively hostile to programs that would benefit children.

Parenthood is humankind’s most important job; but there’s no internship, no training program, no handbook. You dive into it and are expected to figure things out on your own. It’s true that parents should bear the responsibility and costs of raising a child, but, government intervention should be available, depending on local conditions and income levels. Some parents simply need help.

At a time when Republicans and the Supreme Court seem to be willing to discount the value of women in our society, it’s important that we battle their views on the economic front as well as on the political front.

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Sunday Cartoon Blogging – May 8, 2022

Senate Republican leader Mitch McConnell thinks the leak of the Supreme Court’s draft opinion overturning Roe is a “toxic spectacle”. Chief Justice John Roberts calls it a “betrayal.” And Justice Thomas of Ginni said:

“We can’t be an institution that can be bullied into giving you just the outcomes you want…We are becoming addicted to wanting particular outcomes, not living with the outcomes we don’t like…”

So suck it up American women! They’re sure that the leak is worse for America than their outrageous decision, and nothing you say will change any Republican minds. It is likely to be a long time before this (anticipated) decision is reversed. We will be a nation divided between states where reproductive freedom is guaranteed and states without it.

Major judicial errors in American history have been reversed before. The Constitutional amendment prohibiting alcohol was repealed in 14 years. The Supreme Court opinion upholding laws that criminalized gay sex was overturned after 17 years.

Women have many reasons for choosing abortion that have nothing to do with not wanting to be a parent. They may have medical needs; a fetus may carry genetic defects; the woman may be an underage child or a survivor of rape or incest. Adoption does not erase either the medical effects or the psychic scars that forcing a mother to term might inflict, and that may persist long after pregnancy is over.

And on this Mother’s Day, it is particularly ironic that they call themselves pro-life. Except, of course, for mothers. On to cartoons.

Who should be feeling violated?

Alito changes the rules:

Barrett shows she’s one of the boys:

More of the hypocrisy:

Oh, the places you will go:

Anybody else think Republicans are too controlling?

Mother’s Day 2022:

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Thoughts on Alito’s Draft Opinion

Daily Escape:

Chama River, near Abiquiu, NM – 2022 photo by James C. Wilson

Wrongo’s last column spoke about how the Republican Party had become the Party of White Christian Nationalists. And that was before the draft opinion overturning Roe v. Wade was leaked to the world. It seems that this likely decision is a key example of how radical Christians are assuming a political role in America that isn’t dissimilar to the Taliban’s in Afghanistan.

Justice Alito’s draft opinion reinforces the view that there’s a very dangerous Christian movement afoot in our nation. It’s not enough for them to live in a country where they are completely free to practice their own religious beliefs. They require the rest of us to live by their religious code, too.

Two thoughts: First about the Court’s legitimacy in the eyes of the public when they overturn a 50-year-old precedent. The Editorial Board of the WaPo summarized the damage to the legitimacy of the Court that Justice Alito is likely to inflict:

“The Court’s legitimacy rests on the notion that it follows the law, not the personal or ideological preferences of the justices who happen to serve on it at any given time….What brought the Court to its current precipice was not a fundamental shift in American values regarding abortion. It was the [result of] shameless legislative maneuvering of Senate GOP leader Mitch McConnell, who jammed two Trump-nominated justices onto the Court.”

For some time, you’ve been able to predict the votes of Supreme Court Justices by knowing the Party of the president that appointed them. That is particularly true if the issue is either overtly political or a Culture War proxy for Republican Party doctrine.

The American people want to believe the law is fair and impartial, because everyone wants to live in a just and predictable society. But this isn’t what Conservatives want. Their so-called love of religion and love of authority move them to reduce or eliminate voting rights, and now, to eliminate women’s rights.

Second, Wrongo thinks that the Conservative Court has gone a political bridge too far. Most polls show that the rights granted in the Roe v. Wade decision are broadly popular, even among Republicans. And Americans have lived with those rights for almost 50 years, assuming it was an inviolable Constitutional right, you know, like owning a gun.

Heather Cox Richardson says that the Supreme Court has never before taken away a Constitutional right. That means there will certainly be a political backlash against those who have supported this attack against women specifically, and against privacy rights in general.

Pew reports that women are more likely than men to express support for legal abortion (62% vs. 56%). And among adults under age 30, 67% say abortion should be legal in all or most cases, as do 61% of adults in their 30s and 40s.

This describes the foundation of a political movement: Young women as the vanguard of an anti-Republican crusade (pardon the Christian pun). We also know that young people historically have had the lowest voter turnout, dating back to the 1960s. Here’s a graph showing what percentage of women have voted by age group:

Source: Stastia

It was only in 2020 that very young women reached the 50% turnout level for the first time in 50 years. They still lag all other age groups in voting. This means that a wealth of untapped political power lies waiting to be flexed this fall, and overturning Roe is the spark that can light the fire.

Add to that Black and Hispanic women who according to a Guttmacher Institute report are, respectively, three and two times more likely to have an unintended pregnancy than white women. Nationally, Black women had 37% of abortions, white women had 34%, and Hispanic women had 22%. Black women are also more than three times more likely to suffer a pregnancy-related death compared to white women.

Pew also reported that two-thirds of Asian (68%), and Black adults (67%) say abortion should be legal in all or most cases, as do 58% of Hispanic adults.

All of this creates the basis for a national political movement to defeat anti-abortion candidates at local, state, and national levels. Think about how a young woman like Mallory McMorrow who spoke so effectively against the Republican Culture War, could be a leader in the fight.

Larry Sabato’s Crystal Ball lists seven states that offer the biggest potential for a Democratic backlash driven by abortion rights: Arizona, Georgia, Michigan, New Hampshire, North Carolina, Pennsylvania, and Wisconsin. Each of these states has a highly competitive gubernatorial or Senate race on tap for this fall, and several of them have two.

Before you say it’s impossible, remember that in Ireland in 2012, the death of a young woman who had been denied a medically necessary abortion became a rallying cry for the abortion rights movement. In 2018, this Catholic country held a referendum to change their Constitution to legalize abortion, which passed with over 66% support.

The non-Christian-radical path forward is via the ballot box, where women should be poised to lead us to a rebuilt society. Even as the Roberts Court and Republicans turn their backs on the Constitution, we must still embrace it.

The Roberts Court’s radical Christian majority is, intentionally or not, administering a fatal blow to the Court’s legitimacy.

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China’s Torpedoing the Supply Chain

The Daily Escape:

Spring snow, Mt. Princeton, CO – April 2022 photo by Haji Mahmood

For the past two years, Covid has thrown the global supply chain into a tailspin. Even though the cargo industry’s ships, trains, trucks, and planes worked full-time, we still have shortages. Now, China’s zero Covid policy is increasing both the uncertainty and costs of efficiently operating the still-choked global supply chain.

From Bloomberg:

“We expect a bigger mess than last year,” said Jacques Vandermeiren, the chief executive officer of the Port of Antwerp, Europe’s second-busiest for container volume, in an interview. “It will have a negative impact, and a big negative impact, for the whole of 2022.”

Bloomberg says that China accounts for about 12% of global trade. It’s recent Covid lockdowns have idled factories and warehouses, slowed truck deliveries and exacerbated container logjams. And since US and European ports are already swamped, this new outage will leave them vulnerable to additional shocks.

China is home to six of the world’s 10 largest container ports. It’s the global economy’s most important manufacturing hub. While most countries have decided to learn to live with the Covid, Beijing has maintained its Zero Covid policy, where even small outbreaks can shut down large population centers and slow economic activity.

It’s taking an average of 111 days for goods to reach a warehouse in the US from the moment they’re ready to leave an Asian factory. That’s similar to the record of 113 set in January 2022 and more than double the time that the same trip took in 2019, according to Flexport Inc., a freight forwarder.

Julie Gerdeman, CEO of supply-chain risk analytics firm Everstream Analytics says:

“Once product export activities resume and a large volume of vessels make their way to the US West Coast ports, we expect waiting times to increase significantly…”

You’d think that after more than two years into this pandemic, America would have realized that single-sourcing much of our industrial production to a dictatorship is a bad idea. One with enormous consequences when something goes wrong.

But we haven’t. US Treasury Secretary Janet Yellen has advocated for what she calls “friend-shoring” meaning reducing our dependence on China and Russia. Brian Ehrig, a partner at the consulting firm Kearney is co-author of a report that found 78% of CEOs are either considering reshoring or have done it already. He says that relocating supply chains:

“…might cost more, but if you can make smaller quantities that you can then sell at closer to full price, you can actually completely change the game…”

Le Monde reminds us that capitalism has created hidden dependencies in Ukraine. It is the main producer of the wiring harnesses that hold together the many electrical cables in a car. They quote Christine Lagarde, president of the European Central Bank (ECB) in a speech in Washington, DC: (brackets by Wrongo)

“Ukraine produces one fifth of Europe’s [harness] output,”

These parts are low value added, but essential in the construction of cars, a perfect outsourcing target for capitalism. Globalization isn’t going to die; but maybe it can evolve. Much of that possible shift hinges on convincing consumers to accept higher prices for the certainty of supply.

For example, once the CDC finally gave us unambiguous advice about wearing masks, there was a huge rush to open mask production facilities in the US. But now they’ve all closed, because it’s cheaper to make masks in China.

Dictatorships can ensure that labor remains cheap. That’s great for capitalists, not so good for people who needed masks in 2020 when China decided to keep most of them for their population. Or, now, when China is still willing to shut down its economy to stop a Covid outbreak.

And, despite all the good will in the world, nobody will make masks in the US if it means their five-dollar boxes of masks go unsold because everyone is buying the one-dollar boxes. Instead, they will complain about how the company asking five dollars is a bloodsucker.

We’re told that capitalism works. That it just does. That just-in-time supply cuts costs for consumers. But does it?

Art installation by Steve Lambert – 2013, Times Square, NYC

It’s proven not to work during an emergency. But what are the chances of re-shoring ever happening? Business school really only teaches one thing: Short-term profits rule and everything else is irrelevant.

After all, America is a business, not a country.

What should be readily apparent is that despite the CEO poll above, our corporate masters are certainly not thinking about systemic change to supply chains. Nor will they, as long as the focus is reducing costs as low as possible for maximum shareholder gain.

The point is that unless business is incentivized otherwise, don’t expect the supply chain to get any better. That incentive must come from the government in the form of tax policy or subsidy.

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