Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Tuesday, June 09, 2026

Flora & Fauna: Sentinel gardens; bats do good work; beavers saving ecosystems; firefly delights; seashore reporting

Sentinel gardens help save North American trees.
(Photo by Sophia Simoes, Unsplash)
Planting "sentinel gardens" in different places around the globe helps scientists protect native North American trees. "Scientists have planted American trees in China, Korea and elsewhere to attract hungry insects, reports Sachi Kitajima Mulkey of The New York Times. "These gardens are plots of foreign trees that researchers closely monitor to figure out what local bugs and diseases can damage them. The goal is to learn as much as possible about these potential threats before they cross the ocean and become a problem at home."

For the many Americans who consider bats an animal oddity that flies like a bird but kind of looks like a mouse, they are selling the furry echolocation-using creatures short. Bats do tremendous work, helping U.S. farmers and the economy. "Bats pollinate plants, including many important food crops, when they stop by flowers to drink nectar," write Dale Manning, Anya Nakhmurina and Eli Fenichel for The Conversation. "Their guano is mined from caves for fertilizer. And they eat a lot of bugs – the kinds that bother people (think mosquitoes) and others that destroy crops that humans depend on for food." Read about the impacts of bat population decline on economic markets and how humans are trying to address bat health here.

Beavers to the rescue.
(Drawing by Adam Dixon, Offrange)
In Utah, beavers that trappers would have killed for their fur are being spared and relocated from areas where they are a nuisance to locations where they help local ecosystems recover. "To maximize on their potential to restore ecosystems, the Beaver Ecology & Relocation Collaborative (BERC) at Utah State University started offering trappers a $100 surrender fee to catch beavers alive to transport them to private lands in need of hydrological TLC," reports Karen Fischer for Offrange. "The success of the project could be replicated elsewhere, with sweeping ramifications throughout the American West."

They light up forest floors and the air with their bioluminescence beauty, casting sparkle and wonder all around. Fireflies are among nature's most delightful creatures, and some campers are fascinated. Great Smoky Mountains National Park is not only America’s most-visited national park, but it is also "home to 19 firefly species," reports Jacob Passy of The Wall Street Journal. "Photinus carolinus, also known as the Smokies synchronous firefly, produces dazzlingly coordinated displays that rival even the most extravagant Christmas light installation. . . .Their annual emergence in the Great Smoky Mountains has become so popular that campsites sell out months in advance."

A polluted farm in the United Kingdom "let nature back in," providing a stunning example of how nature can heal itself, reports Jasmin Sykes of CNN. The Knepp Estate is a place where turtle doves "seem to be bouncing back. A recently published, two-decade review of wildlife on the estate found that the number of singing males rose from just two in 2008, to 22 in 2024. Isabella Tree, who owns the 3,500-acre estate in West Sussex, told CNN, “We never thought that in 20 years we could have gone from being this depleted, polluted, dysfunctional post-industrial farmland, to being one of the most significant biodiversity hotspots in Britain."

The famous Assateague wild ponies offer great photos and stories that feature the 
wonders found on our national seashores. (Photo by Sara Cottle, Unsplash)

For reporters who live anywhere near the seashore, there's an ocean of stories to uncover and discuss. "If national parks are 'America’s best idea,' then our national seashores may be America’s best-kept secret," writes Joseph A. Davis for the Society of Environmental Journalists. "For summer getaways, they are a treasure. . . . For example, Assateague Island National Seashore, established in 1965, is a beautiful barrier island running between Ocean City, Maryland, and Chincoteague, Virginia. You can swim or surf or splash in clean waves. You can study how land is built by dune ecosystems. You can see the famous wild ponies. You can go into town and eat oysters." Davis provides a list of national seashores to visit along with story ideas here

Friday, June 05, 2026

Gas prices are high, and inflation has continued to climb. How do Trump voters feel about his performance so far?

Many Americans say that gas prices may impact their
midterm election choices. (Photo by GG, Unsplash)
Campaigning for his second term in the White House, President Donald Trump pledged "no new wars" while he worked to "make America affordable again." A year and a half into his presidency, U.S. consumers face high inflation, hefty tariffs on imported food and goods, and bloated gas prices due to the war with Iran.

So how do those voters feel now? Tim Balk, Rachel Richardson and Sam Easter of The New York Times asked some Trump voters how they feel about their vote now and how their opinion of his leadership so far might influence their midterm election choices. Some edited selections of their opinions are shared below.

Adele Wilson, 30, of Ada Township, Mich., population 14,400
When asked about gas prices, Wilson told the Times, "Last time I filled up I was like, ‘Oh, this hurts.’" Wilson, a dental assistant, believes "Trump’s second term has been unsuccessful," the Times reports. "She called the war a 'horrible idea.' She was unsure how she would vote in the midterms, she said, but she had already ruled out voting for JD Vance or Marco Rubio in the 2028 presidential race."

Matt Yerkes, 74, of New Richmond, Ohio, population 2,730
Yerkes, who is retired, told the Times he thinks Americans' current economic strain is "temporary and needed.” Overall, he agrees with the war with Iran. The Times reports, "He said he disliked the president’s personality, but added, 'I agree with essentially everything he does from a policy standpoint.'"

Luke Stanley, 28, of Hermon, Maine, population 6,500
"Stanley, who owns a metal fabrication company, said he did not 'necessarily' support the war, and suggested he would like the president to change his approach," the Times reports. "But he said that business had been good for him overall during the president’s second term." He told the Times that continued high gas prices might sway his choice in the midterm elections.

Friday, May 29, 2026

Companies and retailers finally cut prices in response to U.S. consumer frustration and lack of cash

U.S. companies are finally taking American consumer frustration over inflation and high prices seriously. "Companies from Clorox to Kraft Heinz are finally realizing that half of American consumers can’t afford what they are selling," report Sarah Nassauer, Heather Haddon and Natasha Khan of The Wall Street Journal

Kraft Heinz has lower prices on several popular
grocery items.
For the food industry and retailers, having half of the U.S. population — roughly 180 million Americans — struggle to put food on the table isn't good for business, even when those businesses are making money. The Journal reports, "To appeal to cash-strapped and inflation-weary shoppers, the companies are launching smaller and cheaper products, pitching value packages and, in some cases, reversing price increases."

Companies like Target, Walmart and Coca-Cola are aiming their deals at lower-income Americans who are being squeezed by gas prices, food inflation and wages that aren't keeping up with costs. "Walmart executives said that they had lowered the price tag on 7,200 items and planned to use the company’s tariff refund to fund further price cuts."

Kraft Heinz has reduced prices on several of its staple products, including Oscar Mayer Deli Fresh products and Maxwell House coffee. It plans to "absorb about 80% of its inflation this year," Nassauer adds. The company's CEO, Steve Cahillane, told the Journal, “The consumer can only absorb so much.”

Target's lower toy prices have increased
sales. (Target photo)
Even car companies have gotten the memo. "Jeep maker Stellantis, which also makes Ram trucks and Chrysler minivans, is planning seven new cars 'under the $40,000 range,'" Nassauer writes. It's also planning for two new car models that will retail for under $30,000.

Several companies that voluntarily slashed prices are seeing sales volumes increase. Target’s successful toy department price cuts are an example. In a recent meeting, the company told investors that "it is experiencing 'tremendous growth' in its toy department, where it has introduced offerings priced at $20 or less," the Journal reports.

Friday, May 01, 2026

A 10-year solar project in California aims to 'harvest the sun'


The Valley Clean Infrastructure Plan delivers economic value to growers, 
local governments and residents. (Map by Binh Nguyen, Canary Media )

Directors of the largest agricultural water agency in the U.S. are creating a plan to save California farmland from a decades-long water crisis, reports Jeff St. John for Canary Media.

The Valley Clean Infrastructure Plan will transform 136,000 acres of farmland that's no longer irrigable into 21 gigawatts of battery-back solar power, enough to power nine million houses, St. John explains.

The planned build will be the largest project not just in California or the U.S., but in the world, said Jeff Fortune, a third-generation farmer and the board president of the Westlands Water District.

The plans were approved in December, and the project may take 10 years or more, St. John reports. 

"The way we look at it is a new crop," a fifth-generation farmer and another director of the district, Jeremy Hughes, told St. John. "We're harvesting the sun and producing electricity."

In the next 20 years, the state will require four to five times as much new clean energy as the project will provide, according to another director, Ross Franson. 

Tuesday, February 10, 2026

In the 'Trump economy,' this dairy farmer and his family still struggle to make ends meet

Dairy farmer Derek Orth owns Jersey cows. (Dairy Star photo)

Since President Donald Trump took office in early 2025, some Americans have thrived, while others have been pushed to downsize or put off purchases to pay for the basics. The Wall Street Journal interviewed six Americans, including rural dairy farmer Derek Orth from Lancaster, Wisconsin, to see how they are doing in the "Trump economy," reports Jeanne Whalen of The Wall Street Journal.

Smaller dairy farmers in Wisconsin have been struggling to compete with bigger, more consolidated operations since around 2004. "Orth says he hasn’t had a good financial year in a decade. But higher costs are making things even more challenging these days," Whalen writes.

"We have a $100,000 tractor that hasn’t moved in three or four months because we don’t know if we can afford to fix it,” Orth told the Journal.

He has also been hit by incremental increases in his farm insurance premiums. Whalen reports, "But the accumulation of big increases that snowballed from 2022 to 2024 nearly quadrupled his bill over 15 years, to about $41,000."

Orth, his wife, Charisse, and their four children live rent-free in the farmhouse that Orth's parents own. The couple uses Charisse's income to cover most expenses. Orth told Whalen, "A lot of the income I make goes back into the farm, and what my wife makes is what we use for family living."

Over the past several years, the couple hasn't been able to sock anything away for retirement. Whalen reports, "He said he hopes the Trump administration’s recent efforts to promote dairy products could boost his business, and he appreciates that gas prices are 'fairly reasonable.'"

Read all six interview's by the Journal here

Wednesday, October 22, 2025

American consumers are worried about their energy bills, the job market and the increased cost of groceries

Americans deploy different strategies to counter grocery
costs. (Adobe Stock photo)
Between spiking energy bills and a dreary jobs market, a new poll from The Associated Press-NORC Center for Public Affairs documents the deep stress many Americans feel about their bills and future financial prospects, reports Olivier Knox of U.S. News and World Report. Along with those worries, American consumers continue to look for ways to counter the ever-increasing cost of groceries.

When asked about utility bills, 36% of poll respondents said their "electricity bills are a 'major' source of stress, and a bit more than one half – 54% – said the same about grocery costs, a little more than a year ahead of the November 2026 midterm," Knox writes.

Roughly 47% of polled adults said they were "'not very' or 'not at all confident' they could find a good job if they wanted to," Knox reports. This response marks a big increase from 37% the last time the question was asked in October 2023.

Polled responses were somewhat surprising given the U.S. economy's low unemployment numbers and healthy stock market gains. Knox adds, "But there are worrying signs, including a weakening labor market."

While many Americans express concern about the overall cost of living, most continue to battle ongoing grocery price increases, reports Christopher Kuo of The Wall Street Journal. According to the Labor Department data, since August 2024, the price of "coffee increased 20.9%, ground beef was up 12.8%, and bananas rose 6.6%. Dairy, fruits, vegetables and cereals have all become pricier."

In an effort to help stretch their food budgets, some consumers are "cutting back on purchases, stockpiling certain foods or exploring more-affordable stores," Kuo adds. Other shoppers have become choosier about what lands in their cart, while others scour sale-only items.

U.S. food costs are rising due to higher commodity prices for items like beef, along with market adjustments to tariffs. Kuo explains, "Some of these costs have been absorbed by food companies; others are being passed on to consumers."

Friday, October 03, 2025

Opinion: Annual harvests in Ohio turned into a 'mess' by trade wars, low prices and sky-high input costs

China hasn't purchased a single soybean from
the U.S. in 2025. (Adobe Stock photo)
 

Despite better weather and decent crop production, many American farmers face extreme financial distress due to tariffs, sinking commodity prices and the lack of trade with China. 

For row crop farmers in Ohio, the tariffs and expenses have turned their annual harvest time into a "mess" riddled with financial loss and insecurity, writes Marilou Johanek in her opinion for the Ohio Capital Journal.

"Some growers have called the fallout from President Donald Trump's chaotic trade war, and the reciprocal tariffs it provoked, a 'farmageddon' that could ruin what made rural America great," Johanek explains.

While some U.S. farmers were not surprised that China's response to American tariffs was to snub U.S. soybeans, the pain is being felt by farmers nationwide, including those who don't trade with China. Johanek explains, "Farmers felt the same creeping despair with the tariff debacle of 2018 when Trump first slapped punitive tariffs on crucial exporters of American crops."

Ohio farmer Chris Gibbs, who left the GOP after 2018 tariffs caused China to increase its farming trade with South America, told Johanek, "We’re back in the same situation, but only worse. In the major commodities, corn, wheat, soybeans, sorghum, rice, cotton, prices are below the cost of production, so there’s built-in loss."

Beyond too few trading partners, farmers face soaring input costs. Johanek writes, "Senseless tariffs on fertilizer, steel, aluminum, and lumber just sent the cost of doing business through the roof. . . . Trump tariffs are especially painful for family farms that make up about 87% of all farms in Ohio."

Farmers and the agricultural industry impact job and business sectors throughout the U.S. and contribute roughly $9.5 trillion, or nearly 20%, to the national economy.

Tuesday, July 01, 2025

Report: Social Security trust fund needs attention now if it's going to stay viable past 2034

If changes aren't made, the Social Security trust fund 
will run out of money by 2034.  (Adobe Stock photo) 
Social Security benefits play a vital role in communities nationwide; however, rural areas may be more dependent on the program because their populations skew older. Regardless of region, 73 million Americans currently depend on the program’s monthly payments; however, its 2025 Trustee Report indicates that the program needs attention to meet its expenses, reports Gopi Shah Goda for Brookings.

The report outlines how the Social Security trust fund will run out of money by 2034, and will "no longer be able to make all of its promised benefit payments," Goda explains. According to the report, the shortfall will continue to grow since the program lacks sufficient payroll taxes to cover its ongoing and predicted future costs.

"The shortfall amounts to 3.82% of taxable payroll, meaning that the payroll tax rate would have to be raised immediately—and permanently—from the current rate of 12.4% of taxable earnings to 16.1% in order for the program to be able to pay all promised benefits through 2099," Goda writes. "In 2025, that increase would have amounted to an extra $374 billion in program revenue."

Even if the Trump administration were able to eliminate all Social Security fraud, overpayments and any other human error costs, it would not compensate for the billions needed. "Even this unrealistic, pie-in-the-sky scenario would only yield 'savings' of $10.2 billion per year, barely moving the needle in terms of the program’s $1.48 trillion annual cost," Goda adds. "Social Security is already a lean operation."

Cutting more Social Security staff members would likely result in reduced services and even longer wait times for disability determinations. Goda writes, "It is very likely that any additional cuts in staffing will make it harder for Americans — particularly the most vulnerable — to access benefits they have earned, with dire consequences."

While there are solutions, few are likely to be popular. "There is no free lunch. . .changes would involve difficult tradeoffs between beneficiaries and workers as well as current and future generations," Goda writes. "Policy options that raise revenues include increasing the payroll tax rate or broadening the income base to which that the payroll tax is applied. . . . .Cutting benefits across the board, raising the retirement age at which a beneficiary is eligible for full benefits, reducing benefits disproportionately for higher earners. . . .Some action will be necessary within the next decade."

Tuesday, April 15, 2025

Foreign businesses have replaced textiles in Upstate South Carolina. Residents are 'baffled' and worried by tariffs.

BMW employs 11,000 people at its 8 million square-
foot campus in Spartanburg, S.C. (BMW photo)
Upstate South Carolina was once known as the country's textile hub until the 1990s when "automation and cheaper labor overseas took the industry away from the state," reports Eduardo Medina of The New York Times. President Trump's new tariffs aim to revive the industry, but some people who used to work at the old mills don't know why anyone would want to bring that work back because of the low wages and often unpleasant working conditions. Much of the region has new industrial partners that have improved the overall quality of living for many residents.

Adolphus Jones worked at a mill in the small town of Union, S.C. Medina writes, "Jones, now 71 and retired, scoffed at President Trump’s vision of an American manufacturing revival through tariffs. The mill work had paid little, Jones recalled, and upward mobility was nonexistent." Jones told him, “The textile industry is dead. Why would you want to bring it back here? Truthfully, why would the younger generation want to work there?”

The Trump administration's push to bring back an industry few residents miss represents a mismatch between current economic realities and the limits of what tariffs can accomplish. "Today, companies like BMW and Michelin — from Germany and France — are the economic engines of the region," Medina explains. "Now, leaders say that waging a trade war could undermine future recruitment of international investments and risk losing the jobs that are already in the region."

BMW alone "has invested more than $14.8 billion into its South Carolina operations" and has created "most than 11,000 jobs." BMW's suppliers have created thousands of additional jobs in the region. 

So, local residents were baffled "when the White House’s top trade adviser, Peter Navarro, attacked BMW’s manufacturing process in an interview . . .," Medina reports. "He told CNBC that 'this business model where BMW and Mercedes come into Spartanburg, S.C., and have us assemble German engines and Austrian transmissions — that doesn’t work for America. It’s bad for our economics.'"

Even in Union, a rural area with 8,000 residents, a recovery from textile's downfall has slowly evolved. Medina writes, "Union County has successfully recruited renewable power companies, bioscience and medical employers, and a Dollar General distribution center that employs nearly a thousand people."

Some Union residents think a more modern mill might further improve Union's economy. Leroy Spencer, a retiree in Union, told Medina, "If Trump can bring that back, it would be amazing, and I think the economy would pick up around here and get better." However, building new mills with automation and modern equipment would mean ordering machinery and supplies from overseas, which will likely face higher tariffs and thereby increase construction costs.

Jones sees the "whole tariff back and forth as baffling," Medina writes. "When he worked in a plant decades ago, he made tassels for graduation caps. Now, he says, more of Union’s next generation should be wearing those caps — not making them."

U.S. trade policies are giving China a 'rare and unprecedented strategic opportunity'

Chinese President Xi Jinping and U.S. President Donald Trump 
(Photo by T. Peter-Pool, Getty Images via The Conversation)
In the trade war between the U.S. and China, China may have some key advantages to stymie U.S. businesses -- including farmers -- while developing new trading partners. "The two economies are now locked in an all-out, high-intensity trade standoff," writes Linggong Kong for The Conversation. "As an expert on U.S.-China relations, I wouldn’t expect China to [back down]. Unlike the first U.S.-China trade war, when Beijing eagerly sought to negotiate with the U.S., China now holds far more leverage."

Dynamic shifts in China since 2018 make this round of tariffs different. "The importance of the U.S. market to China’s export-driven economy has declined significantly," Kong explains. "At the start of the first trade war, U.S.-bound exports accounted for 19.8% of China’s total exports. In 2023, that figure had fallen to 12.8%."

Overall, the U.S. is more dependent on Chinese goods. "By 2022, the U.S. relied on China for 532 key product categories – nearly four times the level in 2000 – while China’s reliance on U.S. products was cut by half in the same period," Kong writes. "Beijing believes Trump’s tariffs risk pushing the previously strong U.S. economy toward a recession."

China has a set of retaliation tools to use against the U.S. that the U.S. does not hold over China. Kong adds, "It dominates the global rare earth supply chain – critical to military and high-tech industries – supplying roughly 72% of U.S. rare earth imports."

U.S. farmers are also a target for China. Kong writes, "China accounts for about half of U.S. soybean exports and nearly 10% of American poultry exports. On March 4, Beijing revoked import approvals for three major U.S. soybean exporters."

Beyond financial targets, China is using the U.S. trade policies as an opportunity to rebuild its stressed trade relations in Asia and Europe. "After Trump had first raised tariffs on Beijing – China, Japan and South Korea hosted their first economic dialogue in five years and pledged to advance a trilateral free trade agreement," Kong writes. "On April 8, the president of the European Commission held a call with China’s premier, during which both sides jointly condemned U.S. trade protectionism and advocated for free and open trade."

Despite the harm Trump’s tariffs will "inevitably do to parts of the Chinese economy, Beijing appears to have far more cards to play this time around," Kong explains. "It has the tools to inflict meaningful damage on U.S. interests – and perhaps more importantly, Trump’s all-out tariff war is providing China with a rare and unprecedented strategic opportunity."

Friday, April 11, 2025

As U.S. cotton farmers continue to lose money, some may 'lose the farm.' A 2025 Farm Bill could help.

Cotton has lost market share relative to man-made fibers.
(National Cotton Council graph via Farm Journal)

A sour market and steep input prices may put some U.S. cotton farmers out of business. "Cheap cotton prices and dwindling demand are just part of the problem," reports Tyne Morgan of Farm Journal. "Input costs have climbed and there’s no safety net to be found from a new farm bill."

In decades past, farmers would often choose cotton over food production crops, but overall changes have made the crop an unprofitable investment. "With cotton prices falling below farmers’ breakeven, that crop is causing financial pain to even grow," Morgan explains. Franz Rowland, who grows cotton in Boston, Ga., told him, “There’s no farm bill to support us, and the reference price is so low that it’s not anything that we can depend on."

While cotton is a dependable crop, it's expensive to produce and harvest. "Cotton is a high input crop that requires a heavy dose of fertilizer and intensive pest and weed management," Morgan adds. "But in addition to that, today’s cotton farmers are dealing with the rising cost of equipment." A used cotton picker can cost around $585,000, but a new one retails for roughly $1 million.

The outlook for 2025 cotton crops is negative. The president and CEO of National Cotton Council, Gary Adams, told Morgan, "We’ve gone beyond just losing money now that we’re to the point of losing the farm. Unfortunately, where the industry is, that’s what it looks like as we’re going into 2025." Morgan adds, "There’s a lot to unpack in explaining why cotton prices are so low, but the biggest reason is dwindling demand."

Cotton's biggest competitor is man-made fibers such as polyester. "At the same time, big cotton producers, such as Brazil and Australia, are staring at big crops, which is helping global competition for the smaller market that’s left," Morgan reports. "China is still a larger buyer of U.S. cotton."

For now, U.S. cotton farmers are pushing for a 2025 Farm Bill that offers support. Adams told Morgan, “I just can’t state this strongly enough: We have to have a farm bill done by Congress this year that applies to the 2025 crop."

Even with tariff pause, plans to increase costs for shrimp imports give small coastal communities hope

Last year most U.S. shrimpers lost money.
(Adobe Stock photo)

Despite shrimp's jumbo appeal to U.S. consumers, American shrimpers have struggled to compete with imported, farmed shrimp. Tariffs and renewed trade negotiations with foreign shrimp importers may help revive American shrimping.

As this week began, shrimpers in tiny Bayou La Batre, Alabama, celebrated President Trump’s new round of tariffs, which "included countries that export most of shrimp Americans consume," reports Rachel Wolfe of The Wall Street Journal. "That included rates of around 26% on India, 10% on Ecuador, 32% on Indonesia and 46% on Vietnam. . . . More than 90% of the millions of pounds of shrimp consumed annually in the U.S. is imported."

The decline of U.S. shrimping came bit by bit as more imported shrimp entered the U.S. market. "Fishermen unable to sell their shrimp to break even on gas, labor and supplies have had to tie up their boats," Wolfe explains. "Supply shops, seafood processors, marine technicians and others in the industry have suffered, too."

For small coastal communities like Bayou La Batre, the loss of shrimping incomes has "cratered" local economics. Wolfe reports, "Income and sales-tax revenue in Bayou La Batre plummeted around 40% between 2021 and 2024 alone, according to Mayor Henry D. Barnes." Barnes told her, "People were looking to me for answers, and I didn’t have them. The city can’t put tariffs on foreign seafood.”

Over the past 20 years, the wholesale price of shrimp in the U.S. declined, but American shrimpers were still able to eke out a small profit. "In 2021, that changed as import prices dropped sharply, making it much more difficult for domestic shrimpers to turn a profit," Wolfe explains. "In 2023, domestic shrimpers operated at a net 3.7% loss on average."

Although the tariffs may help some shrimpers clear profits again, U.S. levies on marine goods could present new challenges. "Shrimpers rely on imports for a lot of their supplies," Wolfe explains. "Jeremy Zirlott, a commercial shrimper from Bayou La Batre, buys some of the webbing for his nets from India — which runs around $22,000 each year for each of his boats."

Even as Trump set a 90-day pause on the sweeping tariffs, the Southern Shrimp Alliance's response was positive. SSA Executive Director John Williams, echoed the hope some smaller coastal towns now have: "It is encouraging that the Trump Administration’s tariffs have prompted countries to show a new willingness to address trade policies disadvantaging American producers."

Friday, March 28, 2025

Canadian travelers boycott visits to U.S., and the loss of Canadian dollars could 'upend local economies.'

Fearful of problems at the U.S.-Canada border, many
Canadians have canceled U.S. travel.  (Adobe Stock photo)
In a response to U.S. annexation and tariff threats, many Canadians are boycotting U.S. travel and opting to spend their vacation dollars in other countries. "Canadians have long been the top international travelers to the U.S.," reports Allison Pohle of The Wall Street Journal. The loss of Canadian travel dollars "threatens to upend local economies across the U.S. . . . Even a 10% reduction in Canadian travel could mean $2 billion in lost spending and 14,000 job losses."

Craig Treulieb, a Canadian who planned a celebratory trip to the U.S. with his wife, serves as an example of how costly the loss of Canadian visitors can be. "They spent about $3,500 on flights, hotels, an Airbnb booking and a rental car, with plans to spend freely on food and excursions during the nearly two-week trip," Pohle writes. "The day after (former Prime Minister Justin) Trudeau told business leaders that (President Donald) Trump might be serious about annexing Canada, they canceled the trip. They will instead travel to British Columbia."

Canadians' concern over border delays has kept some from visiting the U.S. simply because they fear they won't be allowed home. "Canadians say Trump’s threats of annexation have infuriated and scared them, so much so that they won’t cross the border to spend time or money," Pohle reports. "Recent news about lengthy detentions for tourists and green-card holders has further deterred would-be travelers."

Air travel to the U.S. from Canada has also decreased. "Calgary-based WestJet says it has 'observed a shift in bookings from the U.S. to other sun destinations such as Mexico and the Caribbean among Canadian travelers,'" Pohle writes. "In tiny Whitefish, Mont., which is just 60 miles from the border of British Columbia, spending by Canadians was down 14% in January compared with a year ago."

Tuesday, February 04, 2025

Mexico and Canada have a 30-day pause on import tariffs. Delayed levies may hit farmers and rural communities first.

The outcome from U.S. tariffs is uncertain.
(Adobe Stock photo)

With last-minute maneuvering, Canada and Mexico avoided stiff import tariffs threatened by the Trump administration, report David Alire Garcia, Trevor Hunnicutt and David Ljunggren of Reuters. In return for a 30-day tariff suspension, "Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum agreed to bolster border enforcement efforts in response to (President) Trump's demand to crack down on immigration and drug smuggling."

Even with the one-month pause, American consumers may still face higher prices and U.S. farmers remain concerned, reports Joshua Baethge of Farm Progress. Trump says the tariffs are "necessary to combat illegal drugs coming into the country and related criminal activity."

American Farm Bureau Federation President Zippy Duvall expressed alarm over the "potential harm to farmers resulting from tariffs," Baethge reports. "While careful to say that Farm Bureau members support the goals of security and free trade, he says experience shows farmers and rural communities will bear the brunt of the expected economic consequences."

Some lawmakers voiced concern that slapping tariffs on two of America's biggest agricultural trading partners will make everything, especially groceries, more expensive. However, House Agriculture Committee Chairman Glenn Thompson, R-Pa., says Trump’s "tariff policy has 'been an effective tool' in leveling the global playing field and ensuring fair trade for American producers," Baethge explains. "Still, not all Republicans were on board with the president’s plan."

House Agriculture Committee ranking member Angie Craig, D-Minn., noted that "tariffs imposed during the first Trump administration increased costs for farmers and consumers," Baethge reports. Craig pointed to high input costs U.S. farmers already face and the number of Americans struggling to afford groceries as reasons she opposed the tariffs.

Friday, January 31, 2025

U.S. imports from Mexico and Canada could be zapped with 25% tariffs starting on Saturday

(Photo by Michael Urman, Adobe Stock)

Unless Canadian and Mexican leaders move quickly, the United States will impose a 25% tariff on imports from both countries beginning Saturday.

"Speaking from the Oval Office, President Donald Trump justified the tariffs as a response to what he described as excessive migration, drug trafficking, and unfair trade practices," report Jim Wiesemeyer and Tyne Morgan of Daily Herd Management. "While he suggested the tariff rate could rise further, he indicated that a decision on whether oil imports would be exempted would come soon. . . . Both Canada and Mexico vowed to respond with retaliatory measures."

The steep tariffs are "intended to pressure the two countries into negotiating on migration, drug smuggling, and reforms to the United States-Mexico-Canada Agreement," DH Management reports. "The strategy reflects Trump’s preference for using tariffs as a tool to secure compliance with U.S. demands, as seen in a recent, albeit reversed, threat against Colombia."

Howard Lutnick, Trump’s pick for Commerce secretary, defended Trump's tariff tactics during his Senate confirmation hearing on Wednesday. Lutnick "repeatedly called for restoring 'reciprocity' in trade with other countries," report Pro Farmer Editors for Farm Journal. "Lutnick prefers 'across-the-board' tariffs rather than aiming them at particular products in a tit-for-tat exchange."

Lutnick took aim at Canada's treatment of U.S. dairy farmers and criticized their lack of access to Canadian dairy markets. He "vowed to secure better trade conditions under USMCA, which President Trump wants a renegotiation on an accelerated timeline," Wiesemeyer and Morgan explain.

Within the U.S., hefty tariffs on the nation's closest trade partners "could disrupt key industries, particularly the ag sector and automotive manufacturing, where supply chains depend on cross-border collaboration," DH Management reports. "Critics warn of potential economic fallout, including higher consumer prices and a possible recession in Canada."

Friday, January 10, 2025

Not enough child care spots pushes states to help care centers expand; some emphasis is on rural needs.

Helping child care centers expand means more
parents can stay on the job. (Adobe Stock photo)
The lack of available and affordable child care keeps many parents -- mostly women -- out of the U.S. workforce. The need for more spots has pushed state lawmakers to use novel strategies to help child care centers expand.

"Nationally, more than half of all Americans live in 'child care deserts,' and the need for child care is especially great among . . . low and middle-income families, families of color and families living in rural areas," reports Maggie Clark of Stateline. "A child care desert is a place where there are more than three children for every regulated child care spot."

The child care conundrum isn't just an issue for parents. The problem "costs the U.S. economy roughly $122 billion each year in lost earnings, productivity and revenue," Clark explains. "To create more child care slots and reduce prices, lawmakers are increasingly using economic development strategies to help child care businesses expand, similar to the support they’ve offered to attract and expand manufacturing facilities, technology startups or other types of businesses."

Advocates and lawmakers are particularly focused on addressing child care shortages in rural areas. Clark explains, "This year, Oregon is awarding its first batch of $50 million in grants and loans for new construction, expansion and renovation for child care businesses, with priority for child care providers in rural areas."

Lawmakers in Colorado, Nebraska, Oregon and Vermont had "local and state zoning regulations reviewed," Clark reports. They also "set up help centers where child care business owners can get help with navigating permitting and other business rules so that they can expand their businesses and care for more children, which will help more parents stay in the workforce."

States that are working to support child care businesses with infrastructure offerings that other sectors receive "send a powerful message that child care businesses and the people who operate them are valuable to their communities and economies," Clark writes.

Erin Roche, Vermont director of First Children’s Finance, which is helping the state administer its child care infrastructure grant program, told Clark, "It’s a lot about changing our cultural values of thinking of [child care centers] as businesses, and not just something little that mostly women do on the side."

Friday, December 20, 2024

Leaders and economists worry over what Trump's planned tariffs might do to business profits and consumer wallets

Businesses and U.S. economists are worried about how tariffs
could impact profits and American budgets. (Adobe Stock photo)

World leaders and CEOs are working to convince President-elect Donald Trump to reconsider his hard-line plans for tariffs against the country's biggest trade partners, which could "disrupt global trade and pummel profits," report Andrew Ross Sorkin, Ravi Mattu, Bernhard Warner, Sarah Kessler, Michael J. de la Merced, Lauren Hirsch and Tariq Panja of The New York Times. They "feel they’re making little headway in warning him of the consequences." Meanwhile, if Trump makes good on his threatened levies, U.S. consumers will likely pay higher prices.

Trump's first tariff announcements targeted Canada, Mexico and China. He said "he would impose 25% levies on Canada and Mexico, if they didn’t tighten their borders and stem the flow of illegal migration to the U.S.," The Times reports. "In subsequent social media posts, he went after BRICS countries," which include Brazil, Russia, India, China and South Africa, and other emerging markets.

Even though many Americans list high inflation, particularly on groceries and household staples, as a primary concern, "Trump conceded that he 'can’t guarantee tariffs won’t hit consumers hard," the Times reports. "That’s a concern among economists and big companies such as Walmart and Costco, who fear that levies could lead to price rises."

An estimate from The Budget Lab at Yale "found that the cost to consumers from Trump’s proposed tariffs could reach as much as $1,200 in lost purchasing power on average based on 2023 incomes, assuming retaliatory duties on U.S. exports are put into place," reports Rob Wile of NBC News. "While Trump has insisted other countries end up paying the cost of tariffs, most economists agree those costs wind up getting passed on to shoppers."

The National Retail Federation warned about "the impact of tariffs to everyday households," Wile writes. "Some Trump allies suggested the president-elect doesn’t actually plan to follow through with the proposed tariffs. . . . Rep. Dan Crenshaw, R-Texas, conceded, 'Tariffs will hurt the American consumer, that’s true. But they also make for good negotiation tools.'"

Friday, December 06, 2024

Construction and agriculture industries 'brace' for potential changes to U.S. immigration and tariff policies

Several U.S. sectors are preparing for imminent changes the transition to a Republican president and Congress promise to bring. Stories focused on upcoming changes are excerpted below.

Undocumented workers make up roughly 13%
of the construction industry. (Adobe Stock photo)
President-elect Donald Trump's planned immigration crackdown and tariffs on Mexican and Canadian goods will hit the housing market with a "one-two punch," report Elizabeth Findell and Gina Heeb of The Wall Street Journal. "In Texas, California, New Jersey and the District of Columbia, immigrants make up more than half of construction trade workers. . . Undocumented workers make up an estimated 13% of the construction industry." Beyond the possible loss of skilled trade workers, "the president-elect’s proposed tariffs of 25% on Canada and Mexico could increase the cost of construction materials."

Once Trump and a solidly Republican Congress are back at work, health officials anticipate the Affordable Care Act’s Medicaid expansion will be "back on the chopping block," reports Phil Galewitz of KFF Health News. "More than 3 million adults in nine states would be at immediate risk of losing their health coverage should the GOP reduce the extra federal Medicaid funding that’s enabled states to widen eligibility." Arizona, Arkansas, Illinois, Indiana, Montana, New Hampshire, North Carolina, Utah and Virginia all have trigger laws that would swiftly end their Medicaid expansions if federal funding changes.
In 2023, the United States exported 17.83 metric tons
of wheat, worth $6.08 billion. (Adobe Stock photo)
Farmers and meat plants are "bracing" for immigration changes, including possible mass deportations of some current workers, reports Patick Thomas of The Wall Street Journal. "America’s food-supply chain relies on a predominantly immigrant workforce for some of its most challenging jobs. . . . About two-thirds of U.S. crop-farm workers are foreign-born, and 42% aren’t legally authorized to work in the country, according to a Labor Department report. . . . Having a smaller pool of workers would likely prompt companies to raise wages, but that could result in higher food prices."

If the Trump administration makes good on its promise to levy tariffs on Mexico, Canada and China, a trade war is likely; however, the administration may no longer have free rein to tap into the Agriculture Department's discretionary spending to buffer farm losses. "A bipartisan cohort of lawmakers want to rein in a pot of money Trump’s first administration used to compensate farmers decimated by the then-president’s trade confrontation with China," reports Skye Witley of Bloomberg News. "A farm bill package that would require congressional approval of certain Agriculture Department discretionary spending supporting the farm economy" was championed by Senate Agriculture Committee Chair Debbie Stabenow (D-Mich.) and House Agriculture Chair GT Thompson (R-Pa.)

Brooke Rollins in 2021
(Wikipedia photo)
While many of the incoming administration's actions were anticipated, Trump surprised some lawmakers and agriculture groups when he nominated Brooke Rollins as his Agriculture secretary. "Trump’s decision to tap her came amid bitter infighting over the role among his advisers, family members and powerful agriculture groups, report Grace Yarrow and Meredith Lee Hill of Politico. "Rollins, who grew up on a farm, has less experience in agriculture policy than those on Trump’s shortlist. Rollins is from Texas and has a degree in agricultural development. While some GOP lawmakers on Capitol Hill were surprised by the pick, she’s expected to have a fairly smooth Senate confirmation."

Friday, October 25, 2024

An Ohio county with big Amish community is becoming an economic hub. Economists say the model can be replicated.

Horse-drawn buggy in rural Holmes
County (Wikipedia photo)
Hard work, generosity and 'extreme networking,' are a few of the reasons the Amish community in Holmes County, Ohio, is thriving. The group's unique ways of supporting new businesses can serve as a model for other places looking to bolster economic mobility, reports Scott Calvert of The Wall Street Journal. "Between 2005 and 2019, average household income in Holmes County rose 24% for 27-year-olds raised in lower-income homes."

By some measures, Holmes should be struggling, but instead, it's becoming an economic hub. "Economists and local business leaders believe much of the progress stems from entrepreneurial growth fueled by cooperation and innovation, all buttressed by tight family and community ties," Calvert explains. "Mark Partridge, an Ohio State University economist who has studied Holmes County, points to an 'extreme networking effect,' where companies — and cousins — routinely help each other out."

Location of Holmes County
in Ohio (Wikipedia photo)
Experts point out that being Amish isn't necessary to replicate what's going on in Holmes County. Partridge told Calvert, "You can have a tight social network with effective social organizations, chambers of commerce, business organizations, and other kind of nonprofits.” Calvert reports, "While rural areas are often hampered by young talent moving away for better job opportunities, many Holmes County natives remain, held in part by the Amish tradition of staying near one’s community."

Sharing -- even with business competitors -- is a key ingredient in this community's success. Calvert writes, "Steve Miller, 31, started Grand Design Roofing in his 20s with a partner. Their Covid-era boom is over, he said, but business is still robust enough to sometimes overextend him and his six workers." Miller told Calvert, "If we’ve got plenty of jobs, I just go to my competitor and I give him a couple jobs. . . . I’m here so my employees can make a good, honest living. . . . I’m not here to collect all the wealth I can absolutely collect.”

Tuesday, April 09, 2024

Grocery prices weigh heavily on American minds; executives say 'shoppers will adjust.' Can they afford to?

$100 doesn't stretch near as far as it used to.
(Photo by G. Tovato, Unsplash)
When it comes to minimalist designs, less might be more. But when it comes to American wallets, less is just less. "Prices for hundreds of grocery items have increased more than 50% since 2019 as food companies raised their prices. Executives have said that higher prices were needed to offset their own rising costs for ingredients, transportation and labor," report Stephanie Stamm and Jesse Newman of The Wall Street Journal. "Some U.S. lawmakers and the Biden administration have criticized food companies for using tactics such as shrinkflation, in which companies shrink their products — but not their prices." As grocery costs have risen, so has consumer ire, and some food producers are starting to make changes and offer more deals. 

Instead of anger, some consumers have opted for a more creative response to hikes. Stamm and Newman write, "Sharon Faelten, a 74-year-old retiree from Underhill, Vt., said that instead of a wallet-punishing ordeal, she tries to think of trips to the store like procurement raids depicted in apocalyptic novels, where the goal is to stock her fridge, freezer and pantry for as little money as possible.

The fact that $100 doesn't go nearly as far as it used to makes some citizens more pessimistic about the country's overall economy. "Millions of U.S. households were flush with cash during the pandemic, thanks to stimulus checks, fatter unemployment checks and the expanded Child Tax Credit," reports Aimee Picchi of CBS News. In 2024, most pandemic cash has been spent, inflation is up and affordable housing can be difficult to find. However, the Journal reports, "The price of food and household staples continues to weigh heavier on consumers’ minds than other economic concerns."

Are prices continuing to climb? Yes, but much more slowly. "Grocery prices were up 1% in February from a year earlier, Labor Department data show," the Journal reports. "They were up 10.2% in February 2023 versus a year earlier, and were up 1.2% in February 2019 from a year earlier." In all, Stamm and Newman found that what cost a family $100.03 in 2019 now costs $136.89 . . . . "Some food-company executives have said that shoppers will adjust over time to higher prices, as they have in the past."