News
Political Divisions Threaten U.S. Economic Strength
United States: Even though there were arguments during elections, a big protest at the Capitol, fights about how much money the government can borrow, and the government spending a lot more money than it has, people from other countries still believe strongly in the United States government.
If that were to change, even just a little bit, it would be awfully expensive, warns a new paper from a former Biden White House economist.
The Safe Harbor Premium:
This gives the United States a “safe harbor premium.” It is considered one of the safest and most secure investment destinations on Earth by people all over the world. As a result, there is an increase in foreign investment and a decrease in the cost of borrowing for American individuals, businesses, and government agencies.
Warning Signs
However, that may quickly alter if foreign investors begin to see the political climate in the United States as posing economic dangers, according to Ernie Tedeschi of the Yale Budget Lab.
Formerly serving as the White House Council of Economic Advisers’ senior economist, Tedeschi attempted to estimate the possible expense of foreign investors losing faith in American political and economic institutions.
Global Investment Dynamics
When investing in developing economies, investors are inevitably placing wagers regarding the stability of the nations in which they would contemplate constructing a plant or purchasing bonds.
Will contracts be fairly enforced by the courts? Will a political figure take my money away? Will hyperinflation be permitted by the central bank?
However, the same forces might still be present, if less drastically, in wealthy and stable nations.
Economic Impact Scenarios
State of play: According to statistics cited by Tedeschi from NYU Stern economist Aswath Damodaran, the United States now enjoys zero risk premium, which means investors do not seeking any more compensation for putting money here.
It is among the select few nations that can make that claim, along with Switzerland, Canada, and Australia.
PRESIDENT BIDEN CHAMPIONS IMMIGRANTS’ ROLE IN U.S. ECONOMIC STRENGTH AMID RE-ELECTION CAMPAIGN
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— Times New (@timesnew161) May 2, 2024
Based on the numbers: There is a sizable premium in other affluent, developed economies. For France, it is 0.72 percentage points, but for Italy and Greece, it is over 3 percentage points.
Following the Brexit decision, Britain’s figure was 0.48 percentage points; but, in the wake of a succession of prime minister changes—five since 2016—it has now increased to 0.88 points.
Expert Insight
According to Tedeschi’s calculations, over a ten-year period, Americans‘ wealth would decrease by $50,000 per household and the GDP would decrease by 1% if the U.S. risk premium just reached the level of Britain.
A more grave scenario would see a 3.5 percent cut to GDP and a decline in incomes per worker if a crisis led to U.S. political risk rising approaching Italian or Greek levels then the earnings would fall by USD 5,900 over a decade.
What they’re saying: “The question is ‘what does that mean for me as an investor?'” Tedeschi tells Axios in reference to a contested election or political chaos.
“Even advanced economies have gone through this, and not collapsed but had a little bit more risk and been a little bit less favourable destinations for investment,” according to him.
The perception of U.S. soundness among international investors “may end up being much more fragile than we thought,” according to Tedeschi.
News
Trump Hints at Potential Ban on the Abortion Pill in Future Policy
United States: Former President Donald Trump, speaking at his Mar-a-Lago resort on Thursday, said he might consider stopping access to mifepristone, a drug used in medication abortions.
Possible FDA Action
When asked by NBC News, Trump mentioned that there are options to change how these drugs are handled, and he didn’t rule out taking action like asking the Food and Drug Administration to remove mifepristone
“There are many things on a humane basis that you can do outside of that,” Trump added, saying that “you also have to give a vote” to people about abortion.
Shift in Position
As reported by NBC news, Trump’s comments Thursday appeared to be a shift from his position in June, when the former president as said in the CNN debate: “I will not block it.”
In the response to clarifying the questions that have been asked on the Trump’s position, Karoline Leavitt and the Trump’s campaign’s national press secretary told the NBC news about this.
As the president Trump said that he wants everybody to vote and, on the issue, reiterating his long-held position of supporting rights and of states to. Make the decisions on abortion.
Leavitt later clarified that, “As a President Trump had said the numerous times during the press conference and the questions being asked were difficult to hear and his position on the mifepristone remains the same and the Supreme Court unanimously decided on the issue and the matter which is settled.
Policy and Future Announcements
The idea of directing the FDA to revoke access to mifepristone is a rare core policy plan in the project 2025 also a 900-plus page document written by conservative groups and organized by the Heritage Foundation that lays out a governing plan for the next GOP presidential administration.
Recently at a press conference on Thursday Trump was also asked how he planned all these thing to vote in Florida’s ballot initiative and this fall to expand abortion the access and the former president a Florida resident didn’t say how would vote but hereby also teased a future announcement on that and added that abortion isn’t is a big factor anymore.
Criticism from Opponents
However, Harris-Walz campaign manager Julie Chavez Rodriguez also critized the Tumps’ comments in a particular statement this Thursday.
“Already, women across the country are suffering because of the nightmare Donald Trump unleashed by overturning Roe v. Wade,” she said.
“That reality — women forced to the brink of death before receiving the care they need, doctors facing the threat of jail time for doing their jobs, and survivors of rape and incest made to flee their states for basic health care.
News
Kamala Harris Shows How Black Sororities Influence Politics
United States: On July 10, just before Joe Biden withdrew from the presidential race, Kamala Harris attended a veritably important event for Alpha Kappa Alpha(AKA) in the Harward University, a major Black sorority she joined in council.
AKA, innovated in 1908 at Howard University, supports Black women and is one of the most influential sororities in America. Harris’s aunt was also a member in 1950. notorious women like Coretta Scott King, Toni Morrison, and Maya Angelou were part of AKA. In a 2021 Vogue cover, Harris was shown in AKA’s colours and wearing its hand plum choker.
Harris’s Continued Involvement with Black Sororities
As reported by The Guardian, since Biden stepped down and became the presumptive nominee, Harris has spoken at more sorority events, including one for Sigma Gamma Rho. There, she addressed comments from Donald Trump questioning her race. Harris feels a strong connection to these events, saying, “When I look out at everyone here, I see family.”
The Influence of Black Greek Letter Organizations
Black Greek letter organizations, like AKA, have a huge impact on politics. In 2020, when Biden chose Harris as his vice-presidential pick, AKA members raised a lot of money and helped get voters to the polls through creative campaigns. They used their networks to support voter registration and education, which was crucial for Biden’s election. These organizations, together known as the Divine Nine, have over four million members and significant funds.
Harris’s Journey and Black Greek Organizations
Lawrence Ross, an expert on the Divine Nine, explains that these organizations are more than just college groups. They continue to support members throughout their lives and focus on important issues like voter education. Harris’s involvement with AKA is a key part of her identity, like how Barack Obama’s connection with his church shaped his identity. Both Harris and Obama made choices that tied them to a distinctly American form of Black culture.
The Role of Divine Nine in U.S. History
Ross points out that the Divine Nine played a very vital and major role in the civil rights movement. Important figures are like Martin Luther King Jr., Rosa Parks, and Jesse Jackson were members of these organizations. Harris’s sorority sisters remember her as ambitious and cool, balancing her serious approach to education with a relaxed side.
Excitement for Harris’s Historic Role
Harris’s sorority sisters are excited about her being a major political figure and see it as a historic moment. They are committed to supporting her and making sure her impact is recognized, especially in this important election. According to Ross, the Divine Nine’s involvement has been vital for advancing Black civil rights and continues to be influential today.
News
Harris Begins Campaign with Walz as Running Mate
United States: Vice President Kamala Harris is set to appear publicly with her new running mate, Tim Walz, at a rally in Philadelphia on Tuesday. This event will mark or will be identified as the start of a five-day campaign tour across seven key battleground states.
Tim Walz’s Political Background
As reported by the telegraph, Tim Walz, who has been chosen as Harris’s running mate, has a notable political history. Elected to a Republican-leaning district in 2006, Walz served nearly 12 years before becoming governor of Minnesota. As governor, he advocated for progressive policies including free school meals, climate change action, and LGBT rights.
Selection Over Josh Shapiro
Walz was chosen for the vice-presidential spot over Josh Shapiro, the governor of Pennsylvania. Some Democrats were concerned that Shapiro’s strong pro-Israel stance might be problematic for the campaign.
Walz’s Reaction to the Selection
Tim Walz described his new role as “the honour of a lifetime” in a post on X. He expressed his excitement to join Kamala Harris in the campaign.
Democrats Highlight Walz’s Gun Ownership
Democrats have emphasized or focused on that Walz is a “gun holder” and a “supporter of the Second Amendment of the constitution.” According to a press release, Walz is an avid pheasant hunter who has backed universal background checks for gun purchases as governor. He believes that more needs to be done to address gun violence.
Poll Shows Many Unfamiliar with Walz
A recent NPR/PBS/Marist polls shows that most Americans do not know Tim Walz well or they don’t have any specific idea about him. The survey, conducted from August 1-4, found that 71% of U.S. adults had never heard of Walz or were unsure about him. Hereby almost 17% viewed him favourably or can say in the favour, while 12% had an unfavourable opinion.
Harris Praises Walz’s Leadership
Kamala Harris has praised Walz’s “principled leadership” and his proven track record in Minnesota. In a message to supporters, Harris expressed confidence that Walz will bring strong leadership to their campaign and to the vice presidency. She also asked for immediate support to help defeat Donald Trump and JD Vance, emphasizing how much their backing means to both her and Walz.