Category: Economy

Commentary: The Monetary Mistakes Behind the Downfall of Cleopatra and the Last Dynasty of Ancient Egypt

Virginia Star Staff

When we think of ancient Egypt, most of us recall first its most famous and distinctive features: pyramids, pharaohs, and the Nile. As an economic historian, I hoped at the start of recent research that a sound currency might be another distinction of the Egyptians I would discover.

Alas, their story is pretty much the same one we find throughout history and all over the world: Money is monopolized by government officials, who then cheat the people by debasing it—which means diluting the precious metal content in it’s coinage, printing too much of it if it’s paper, or both. Egypt is no exception, though its experience is rich in colorful perpetrators, from fifteen pharaohs named Ptolemy to the Cleopatra of both Shakespeare and Hollywood fame.

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‘Choke Point 2.0’: Bank Regulators Cut Porn Industry off from Banks, States Pass Age Limits to Porn

Just the News

As Republicans lead state efforts to prevent minors from accessing pornography, the porn industry is fighting a renewed legal battle against the federal government after the Biden administration halted a rule ensuring “fair access to banking services.”

The battle is starting what critics call “Operation Choke Point 2.0,” using its authority over the banking sector.

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Powell Signals More Rate Hikes Could Be On The Horizon

Virginia Star Staff

Federal Reserve Chair Jerome Powell raised the possibility of more interest rate hikes in prepared remarks Friday as inflation remains above the Fed’s target rate.

Powell hinted that the Fed will raise interest rates in the future if factors like high inflation, a hot labor market and sustained economic growth persist, according to a speech given by Powell at the Jackson Hole Economic Symposium. Interest rates have been raised 11 times since March 2022 in an effort to fight inflation, bringing the federal funds rate within a range of 5.25% and 5.50%, the highest rate since January 2001.

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Major Auto Union Authorizes Strike for 150,000 Workers

Virginia Star Staff

The United Auto Workers (UAW) union authorized a strike on Friday in negotiations with major automakers, according to the union.

The union voted 97% in favor of a strike for its 150,000 autoworkers as negotiations continue with the Big Three automakers, which include Ford, General Motors and Stellantis, according to a union press release. The union is demanding wage increases to counter inflation, defined benefit pensions, retiree healthcare, the elimination of tiers for wages and benefits among other demands.

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Wall Street Firms That Sold Out to China Are Now Struggling

Virginia Star Staff

Major Wall Street firms that decided to expand their asset management operations into China are struggling to capitalize on the market, according to The Wall Street Journal.

BlackRock, a top U.S. investment company, is one of many American firms that are struggling to compete in the Chinese market, ranking only 145th out of almost 200 Chinese mutual funds, with other firms like Fidelity International and Neuberger Berman ranking even lower, according to the WSJ. Factors contributing to the firm’s woes are a lack of willingness from local companies to utilize American investment banks, a struggling Chinese economy and restrictions from both the U.S. and China.

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Commentary: Interest Rates Are Soaring, Raising the Alarm for a Painful Reckoning for America

Virginia Star Staff

Someone with a million dollars of credit card debt probably wouldn’t celebrate if his interest rate skyrocketed. Yet some analysts are touting rising interest rates on America’s trillions of dollars of long-term debt as a good sign for the U.S. economy.

Are they right? Are rising long-term interest rates a good thing? Certainly not for anyone looking to secure a 30-year mortgage at two-decade-high rates. And certainly not for the federal budget. Not when America is sitting on $32.7 trillion in debt.

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Company Behind Michigan Electric Vehicle Battery Plant Registered as Chinese Foreign Organization

Just the News

The company responsible for a controversial electric vehicle battery plant in Michigan is registered under U.S. law as a foreign entity, filings show.

While the energy company Gotion, Inc. is based out of Fremont, Calif., Foreign Agents Registration Act documents filed by the corporation earlier this year show that it “is wholly owned and controlled” by Gotion High-Tech, which is based out of Hefei, a city in eastern China.

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Expert: Public Transit Unlikely to Return to Pre-Pandemic Levels

The Center Square

Public transit ridership has fallen since the beginning of the coronavirus pandemic leading one expert to question if rates will ever return to pre-pandemic levels. 

A recent report by the American Public Transportation Association shows that total transit ridership in the United States stalled for the second time since the first quarter of 2021. Ridership grew for six of the seven quarters from the first quarter of 2021 to the fourth quarter of 2022. But there was a slight dip in the first quarter of 2023.

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The Center Square Parent Acquires Government Streaming Service

The Center Square

Franklin News Foundation, the nonprofit, nonpartisan news-media organization that publishes The Center Square newswire service, announced Friday it has acquired Advanced Digital Media, operators of BlueRoomStream.com.

ADM live streams unedited coverage of countless government proceedings across the state of Illinois, such as legislative hearings and other taxpayer-funded government activities, news conferences involving elected officials and other newsmakers, and more. Through Blue Room Stream, it makes the live streams available to subscribers including both in-state and national broadcast media partners.

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Fairfax County Becomes Third Virginia Locality to Pilot Guaranteed Income Program

The Center Square

Beginning in 2024, Fairfax County will be the third locality in Virginia to offer a pilot guaranteed income program after Richmond and Alexandria.

Pilot guaranteed income programs are — in this case, localities — attempt to provide a guaranteed, consistent direct cash benefit every month to a limited number of families in their city or county who meet specific qualifications. As they are experimental, they have a prescribed end date.

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Chinese Solar Companies Have Been Dodging Tariffs, Biden Admin Says

Virginia Star Staff

The Department of Commerce (DOC) determined Friday that five Chinese solar panel companies have been dodging U.S. tariffs by directing their operations through other Asian countries not subject to the import restrictions.

The DOC found in its probe that Trina Solar, Canadian Solar, BYD and Vina Solar have all used other countries in Southeast Asia, such as Vietnam, Thailand, Malaysia and Cambodia, as conduits to evade tariffs designed to protect the relatively young American solar industry from Chinese competitors that can undercut them with a cost advantage, which in some cases may be derived from the use slave labor of detained Uyghur Muslims in supply chains. The findings may complicate the Biden administration’s plans to rely on solar panels as a key pillar of its sweeping climate agenda, which aims to have the U.S. economy reach net-zero carbon dioxide emissions by 2050.

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Virginia Gas Prices in Lower Tier Nationally

The Center Square

Today’s gas prices in Virginia are higher than a month ago but lower than a year ago and lower than the national average.

Unleaded regular is going for an average of $3.67 per gallon in the commonwealth; diesel for $4.19. The price is almost 30 cents higher than a month ago when gas was $3.41 per gallon, but it’s 20 cents less than today’s national average of $3.87.

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Target’s Sales Crumble for the First Time in Years amid Backlash over LGBT Kid Merchandise

Virginia Star Staff

Target reported Wednesday that it was lowering its sales and profit expectations for the rest of the year, with the company having faced conservative backlash earlier in the quarter over the release of LGBT products for kids, according to Target’s second quarter earnings report.

Target lowered its sales and profit expectations for the rest of the year after its quarterly sales fell for the first time in six years, declining 5.4%, while it announced it expected its share price to clock in between $7.00 to $8.00 as opposed to the previously expected $7.75 to $8.75, according to the earnings report. The decrease in expectations follows backlash from conservatives after the company announced a Pride Month collection in May that included LGBT merchandise marketed to kids.

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U.S. Aid to Ukraine Amounts to $900 Per American Household, Economist Says

Virginia Star Staff

Congressionally approved aid for Ukraine has cost each U.S. household hundreds of dollars, Heritage Foundation budget expert Richard Stern says.

“The formal aid packages alone amount to a staggering $113 billion—roughly $900 per American household and almost 12 times the spending cuts promised by House leadership in the annual spending bills,” Stern, director of The Heritage Foundation’s Grover M. Hermann Center for the Federal Budget, said in an email to The Daily Signal, Heritage’s news outlet.

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Property Tax Rates Vary Wildly Among States as Some Consider Limits

The Center Square

Property taxes vary significantly across the U.S. with northeastern states imposing effective property tax rates ten times higher than in southern states. 

That comes from a Washington D.C. group that noted some states are exploring property tax caps. The Committee to Unleash Prosperity, which advocates for free trade and limited government spending, found that the average single-family-home property tax in New Jersey hit $9,500 in 2022. That compares with the average of $928 in West Virginia and $1,022 in Alabama, according to a report from the group.

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American Credit Card Debt Hits $1 Trillion for the First Time Ever

Virginia Star Staff

The end of July saw American credit card debt collectively hit $1 trillion for the first time ever.

According to Axios, the Federal Reserve Bank confirmed on Tuesday that credit card balances in the United States increased in the second quarter of 2023 by $45 billion, or 4.6 percent, to a new total of $1.03 trillion. However, the collective credit card debt still has a lower share of American gross domestic product (GDP) than it did in 2010 or pre-COVID 2020.

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Small Business Owners Remain Pessimistic About the Economy

The Center Square

Small businesses have ongoing concerns about the health of the economy, a newly released survey shows.

The National Federation of Independent Businesses released survey results Tuesday showing that their July polling of small business owners found they are less optimistic about the economy than the historical average.

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Feds Continue Borrowing over $5 Billion Per Day Despite Credit Downgrade

The Center Square

The federal government is borrowing an average of $5.3 billion per day this fiscal year, the U.S. Congressional Budget Office estimated Tuesday. The new estimate come just days after a top international creditor downgraded the U.S. credit rating.

“The federal budget deficit was $1.6 trillion in the first 10 months of fiscal year 2023, the Congressional Budget Office estimates – more than twice the shortfall recorded during the same period last year,” CBO said. “Revenues were 10 percent lower and outlays were 10 percent higher from October through July than they were during the same period in fiscal year 2022.”

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Interest Rate Hikes Fail to Pump the Brakes as Inflation Rises

Virginia Star Staff

Inflation rose in July after steadily declining from a high of 9.1% in June 2022, according to the latest Bureau of Labor Statistics (BLS) release on Thursday.

The Consumer Price Index (CPI), a broad measure of the prices of everyday goods like energy and food, increased 3.2% on an annual basis in July, compared to 3.0% in June, according to the BLS. Core CPI, which excludes the volatile categories of energy and food, remained high, rising 4.7% year-over-year in July, compared to 4.8% in June.

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Commentary: Red China’s Electric Vehicle Invasion of America

Virginia Star Staff

Chinese Communist Party (CCP) electric vehicles (EVs) manufactured in Red China are now for sale in the U.S. They are Buick’s Envision and Sweden’s Polestar 2, with Lincoln Nautilus soon to follow. Many more Red Chinese EV brands are coming. Waiting in the wings to begin export to the U.S. are BYD Co., Li Auto, Xpeng Motors, Nio Inc., and Geely.

And, as the U.S. dismantles its combustion engine industry and all the ancillary industries to make way for EVs that Americans aren’t buying, American workers are losing jobs and suffering wage decreases. People working in repair shops, garages, gas stations, parts manufacturers, and distributors are just a few of those who will suffer.

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Biden’s Burdensome Regulations Are Contributing to Lackluster Economic Productivity, Experts Say

Virginia Star Staff

Labor productivity remains below COVID-19 pandemic levels after its first increase year-over-year was announced Thursday since 2021, with experts citing Biden administration regulations as one of the causes for the lackluster results.

Nonfarm business labor productivity reached 1.3% growth year-over-year for the second quarter of 2023 after declining for five straight quarters starting with the first quarter of 2022, according to the Bureau of Labor Statistics. The Biden administration has imposed a large amount of regulations that have hindered productivity, and the recent return to modest growth is in spite of these costly regulations , experts told the Daily Caller News Foundation.

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Commentary: Could the Baby Boomer Retirement Wave and Labor Shortages Absorb the Recession?

Virginia Star Staff

The national unemployment rate dipped to 3.5 percent in July, according to the latest data from the Bureau of Labor Statistics, once again hitting more than 50-year lows.

It’s still peak employment as far as the eye can see. Even with the past two years’ high inflation dropping dramatically and disinflation usually correlating with higher unemployment and a recession, that simply has not occurred yet, despite all the warning signs typically associated with an economic slowdown or downturn.

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Midwest Landowners Notch Big Win After Regulators Deny Permit for Green Pipeline Project

Virginia Star Staff

North Dakota state regulators denied a permit for the route of a carbon capture pipeline project Friday amid local pushback, according to AgWeek.

The pipeline is a project of the Iowa-based company Summit Carbon Solutions, which told the Daily Caller News Foundation that it will resubmit the relevant paperwork and try to get the required permit again. The denial is a setback for the Biden administration’s green energy agenda, which relies in part on carbon capture and sequestration technology to bring down emissions in line with its goal of the U.S. reaching net-zero carbon emissions by 2050, according to a White House fact sheet.

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Coyotes: The Lynchpin to Human Smuggling Operations and Purveyors of Misery

The Center Square

by Bethany Blankley   A coyote, a colloquialism for a human smuggler, is critical to Mexican cartel human smuggling operations. Combined, they cover thousands of miles primarily guiding foreign nationals first through Central America into Mexico, then through Mexico and into the U.S. They also operate along the U.S.-Canada border.…

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$700 Million in Pandemic-Era Loans Was Not Enough to Save Yellow Corp. Trucking

Virginia Star Staff

Trucking company Yellow filed for Chapter 11 bankruptcy on Sunday after receiving more than $700 million in COVID-19 pandemic program loans from the federal government, according to a press release from Yellow.

The 99-year-old company ceased operations of its more than 12,000 trucks on July 30, ending its less-than-truckload business, a shipping service that does not require a whole truck to be filled and was utilized by companies like Walmart, Amazon and small businesses that did not have enough freight to ship in a full truck. The bankruptcy follows a history of financial trouble, with the company receiving $729.2 million in pandemic-era loans from the Trump administration in 2020, and had a total debt of $1.5 billion, according to The Associated Press.

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More than a Quarter of Homeowners in U.S. Are ‘House Poor’

The Center Square

Nationwide 27.4 percent of homeowners are considered “house poor,” meaning they spend more than 30 percent of their income on housing costs.

However, in some U.S. cities, far more Americans are living beyond their means, according to research from the U.S. Chamber of Commerce. In Hialeah, Florida, 59.3 percent of homeowners are spending more than 30 percent of their income on housing costs. While Hialeah has the highest percentage of homeowners spending more than 30 percent of their income on housing costs, it was not alone.

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Jobs Market Cools Following Unexpectedly High Economic Growth

Virginia Star Staff

The U.S. added 187,000 jobs in July, less than economists expected, as the unemployment rate fell to 3.5%, according to Bureau of Labor Statistics (BLS) data released Friday.

Economists had anticipated the country would add 200,000 jobs in July compared to 209,000 jobs in June and that unemployment would remain the same at 3.6%, according to Reuters. The U.S. economy grew 2.4% for the year in the second quarter of 2023, outdoing expectations of 2%.

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‘Wake-Up Call’: Top Credit Agency Downgrades U.S. Rating

The Center Square

One of the top international credit rating agencies has downgraded the United States government’s credit rating from the highest level of AAA down one tier to AA+, a serious economic signpost as U.S. debt continues to soar and deficits remain elevated.

Fitch Ratings made the decision, pointing to the U.S. government’s high national debt and deficits as well as an “erosion of governance.”

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Commentary: Bidenomics Is Pouring Cold Water on the Labor Market

Virginia Star Staff

Friday’s jobs numbers show the labor market is softening due to Bidenomics and Bidenflation. Only 187,000 jobs were created last month. That’s below expectations, 40% less than the 12-month average, and the lowest level since the pandemic. Previous months’ employment growth was also revised down significantly, taking the sheen off recent jobs reports.

Average wages grew slower than core inflation, meaning Americans’ real wages and living standards remain stagnant. Friday’s numbers come on the heels of this week’s JOLTS report showing the fewest number of job openings and the fewest number of Americans quitting their jobs since the pandemic.

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Chip Manufacturer Announces Layoffs Despite Biden Admin Subsidies to the Industry

The Center Square

Top semiconductor manufacturer Qualcomm announced a new round of layoffs on Wednesday, even after the industry received huge subsidies from the Biden administration, according to The Wall Street Journal.

Qualcomm, a major American producer of semiconductors, announced a new round of layoffs after seeing a 25% decline in its mobile-phone chip business compared to the previous year, according to the WSJ. The semiconductor industry has received huge subsidies from the Biden administration through the CHIPS and Science Act, which was signed into law in August 2022 and included $52 billion in subsidies for domestic semiconductor manufacturers.

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Commentary: BlackRock and Its ESG ‘Voting Choice’ Ruse

RealClearWire

Amid growing criticism of its environmental, social and governance (ESG) investment  practices, BlackRock has announced that it will offer retail investors in its largest exchange-traded fund (ETF) the opportunity to participate in its “Voting Choice” program. Open to institutional clients since January 2022, this program allows investors to choose from a limited set of options to guide BlackRock in voting their shares. While perhaps an effective PR tool, Voting Choice is little more than a ruse that neither empowers investors nor diminishes BlackRock’s power to impose its ESG goals on American businesses. 

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Biden Administration Refuses to Refill Strategic Oil Reserve

Virginia Star Staff

On Tuesday, the Biden Administration deliberately chose to not refill the strategic petroleum reserve (SPR) after depleting it to combat a surge in gas prices last year.

According to the Daily Caller, the report from Bloomberg said that the administration considered it to be “too expensive” to refill the vital reserve supply, as the current price of a barrel of oil is roughly $80. The SPR is still at a record low level after Biden released at least 180 million barrels in 2022, in an effort to reduce historically high gas prices prior to the 2022 midterm elections.

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American Financial Titans Are Straying from Green Investment Strategies as GOP Pushback Mounts, Report Finds

Virginia Star Staff

Several leading American asset managers have decreased their support for environmental, social and governance (ESG) resolutions since 2021, according to a new report by InfluenceMap, a nonprofit that tracks climate policies in Western corporations.

InfluenceMap’s report assigned BlackRock, Vanguard, State Street and Fidelity environmental stewardship grades of C+ or lower, which indicates that each firm exhibits “a lack of effective climate stewardship processes and use of shareholder authority to engage companies to transition” to a green energy, net-zero carbon emissions future. The report also noted that 2022 saw a “considerable” drop in corporate support for ambitious green shareholder resolutions, a development that coincides with increased Republican scrutiny of corporate ESG policies and mandates.

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One U.S. Solar Company Poised to Rake in $11 Billion in Subsidies

Virginia Star Staff

U.S.-based solar panel manufacturer First Solar may receive up to $11 billion in subsidies from the government thanks to the Inflation Reduction Act (IRA), according to The Wall Street Journal.

The company expects to receive up to $710 million in subsidies this year alone, which is an amount equivalent to nearly 90% of its predicted operating profit for this year, according to the WSJ. Philip Shen, managing partner at investment bank Roth Capital Partners, estimates that the IRA may end up giving First Solar up to $11 billion in subsidies over the course of the next decade.

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Virginia Gas Prices up 15 Cents in the Last Week, 30 Cents in a Month

The Center Square

Virginia’s price for a gallon of unleaded gasoline has risen nearly 30 cents in a month, half of that in just the last week.

The American Automobile Association’s daily tracking put the state average at $3.59 on Monday, up from $3.42 a week ago and $3.30 a month ago.

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Heat Wave Causing Refinery Outages and Contributing to Gas Price Surge, Analyst Says

Just the News

Last week, gas prices reached an 8-month high in the U.S. at $3.714 per gallon, following a high volume of production cuts from OPEC. That number has since increased, which an analyst pinned directly on the ongoing heat wave taking place throughout the country.

On Monday, gas averaged $3.757 per gallon, up more than 16 cents from a week ago, according to AAA. Patrick De Haan, the lead petroleum analyst at the fuel savings site GasBuddy, explained how the heat wave contributed to this uptick.

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Mystery Company Makes $800 Million Purchase of California Farmland Near Air Base

Virginia Star Staff

After a mysterious company suddenly made a nearly billion-dollar purchase of farmland surrounding an air base in California, some in Congress are sounding the alarm over national security concerns.

According to the Washington Free Beacon, over 52,000 acres worth of land in Solano County was purchased for $800 million; the land surrounds Travis Air Force Base. The purchase was made by a company called Flannery Associates, with a company attorney claiming that it is registered in Delaware and controlled by U.S. citizens, receiving at least 97 percent of its capital from American investors, with the remaining 3 percent from Irish and British investors. Nevertheless, the company’s low profile and sudden mass purchase of such strategically significant land has raised alarms in Congress.

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U.S. Economy Grows Moderately as GDP Ticks Up

Virginia Star Staff

The U.S. economy grew at a rate of 2.4% in the second quarter of 2023, according to gross domestic product (GDP) statistics released by the Bureau of Economic Analysis (BEA) on Thursday morning.

Real GDP increased by 2.0% in the first quarter of 2022 after being revised up from an initial estimate of 1.1%, according to the BEA. Economists expected the GDP would be around 2% in the second quarter of 2023, following high inflation and an interest rate increase from the Federal Reserve on Wednesday.

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Study: Many Hospitals Profited During COVID Pandemic

Virginia Star Staff

A new study reveals that nearly 75 percent of all U.S. hospitals were able to post positive operating income at the height of the Chinese Coronavirus pandemic, primarily due to relief funds provided by the government.

As Axios reports, the analysis by JAMA Health Forum shows that the average hospital’s operating margins – the difference between revenue and expenses – hit an all-time high in 2020 and 2021, the first two years of the pandemic. Many hospitals continue to post improving operating margins even after 2022 despite the rising inflation, which some have attributed to the massive profits in the first two years of COVID.

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Companies Are Abandoning Massive Offshore Wind Projects as Development Costs Skyrocket

Virginia Star Staff

Billions of dollars in scheduled offshore wind developments in waters of the U.K. and U.S. have been paused or canceled in recent weeks, according to Bloomberg News.

Three major offshore wind-related contracts have fallen through as rising costs and economic concerns have saddled developments off the American and British coasts, according to Bloomberg. While offshore wind proponents remain confident in the long term viability of offshore wind, the recent cancellations may be a sign of more substantial troubles for offshore wind despite strong support from the Biden administration, according to Bloomberg.

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Commentary: Tax Relief Is Coming to Millions of Red-State Residents in Ohio, Connecticut, and More

Virginia Star Staff

July marked the beginning of Fiscal Year 2024 for 46 of the 50 states. It also closes the books on most state legislative sessions in what was an incredible 2023 for hard-working taxpayers.

In recent years, we’ve seen significant income tax relief in the states. Notably, 10 states – Kentucky, West Virginia, Montana, Utah, Arkansas, North Dakota, Indiana, Nebraska, Connecticut, and Ohio – have cut personal income taxes (PIT) in 2023. With the new addition of West Virginia, North Dakota, and Connecticut, 22 states have cut personal income taxes since 2021, with several of these states cutting taxes multiple times during that period.

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Commentary: Bidenomics Is Behind Jerome Powell’s Woke Turn

Virginia Star Staff

In February 2021, Federal Reserve Chairman Jerome Powell told Congress, “We are not climate policymakers here who can decide the way climate change will be addressed by the United States. We’re a regulatory agency that regulates a part of the economy.” When Powell said that, less than a month into the Biden administration, inflation was 1.6%.

Just eight months later, in remarks on November 22, 2021, President Biden said Powell – then up for renomination and facing stiff opposition from congressional progressives – “made clear to me: A top priority will be to accelerate the Fed’s effort to address and mitigate the risks – the risk that climate change poses to our financial system and our economy.” At that time inflation was 6.8%, on its way up to a 40-year high of 9.1%.

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