View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

What Happened on Day 97 of the War in Ukraine

BAKHMUT, Ukraine — The volunteers listened patiently to the pensioner and stuffed a frozen chicken into her shopping bag.

Olena Tyvaniuk, 70, a slight woman with a stoop, explained tearfully that she needed more than food. She needed drugs. “I have a son, he is 48, he is a paranoid schizophrenic,” she said. “I need medication for him.”

As the towns and cities of eastern Ukraine empty out in the face of the Russian offensive, some residents are choosing to stay on. Like Ms. Tyvaniuk, some are trapped by medical imperatives. Or they are too poor to leave. Or, disillusioned by the longstanding corruption of Ukrainian officials, they think things can’t be worse under the Russians.

Bakhmut, just 10 miles from the front, is largely deserted. There are few cars on the streets except for military vehicles; shops and banks are boarded up. Only one or two cafes and supermarkets are still open.

The only pharmacy is at the hospital where wounded soldiers are brought in from the front. Recently, bloodstained stretchers were propped up against a wall where a wounded soldier, his face bloody and swollen, swathed in bandages, smoked a cigarette with friends.

Yet in the middle of war, even as artillery booms not far away, civilians still walk by in the street, sometimes even with a child in tow.

Credit…Finbarr O’Reilly for The New York Times

Ms. Tyvaniuk said her son, who barely leaves his room, was refusing to leave. His medication was running out and the only pharmacy open in the town did not stock the medicine he needed, she said. He had enough left for only four days and was down to cutting slices from his remaining tablets.

“He does not understand the whole situation,” she said. “He does not even know his own address. I cannot leave him, and I never will leave him.”

Ukrainian officials have repeatedly called on civilians to leave eastern Ukraine as Russia has turned the full strength of its forces on seizing the region. But a portion of the population stubbornly refuses to go.

“Those who wanted to go have already gone,” said Ruslan, 42, a volunteer with the Union of Ukrainian Churches who drives people to shelters in western Ukraine. He said his group had evacuated 1,000 people from the Bakhmut area over the past month.

Yet of 20 people who had requested evacuation with his organization on Saturday, only nine took up the offer, he said. He had just risked the drive to the frontline town of Siversk to collect people, but came back empty. “No one wants to go,” he said.

Credit…Finbarr O’Reilly for The New York Times

He asked that only his first name be published for fear of retribution from the Russian side.

Most of those remaining are the poor, the old and the infirm, volunteers and health workers said.

“We mostly see the elderly people seeking all kinds of support,” said Islam Alaraj, program manager for psychosocial support in Ukraine for the International Committee of the Red Cross. “They are the most vulnerable and they have plenty of health issues, and they have added psychological issues above that.”

For the most part, Ukrainian health facilities around the country, including psychiatric facilities, are still functional and receiving outside support, Ms. Alaraj said. But as fighting shifts, reaching those in need is becoming more difficult.

“This context is changing in a very fast way,” she said, “and we don’t know all locations and we don’t have access to all locations.”

Many residents interviewed said they could not afford to rent an apartment elsewhere, and feared losing everything they owned if they abandoned their homes. They also voiced distrust of promises of assistance from aid groups or the government.

Credit…Finbarr O’Reilly for The New York Times

“They say they do not have money, and that people will deceive them when they get there,” Ruslan said.

“Some of them are waiting for the Russians,” he added. “Let’s face it, there are those who just sit in their basements and wait for someone to bring them humanitarian aid. And for them it does not matter who passes them a package of aid, Russia or Ukraine.”

Police officers serving until last week in the town of Sievierodonetsk said they saw the mood shifting as Russian forces were poised on the edge of the city. They abandoned a last evacuation when residents asked for extra guarantees.

“We don’t force anyone,” Chief Oleh Hryhorov of the regional police said. “Some sympathize with the other side.”

Russian troops were flying drones over the town to gather information on Ukrainian positions and some residents were acting as informers for Russia, he said. Already anticipating a Russian takeover, some residents were reluctant to talk to foreign journalists, he said.

In the town of Siversk, north of Bakhmut and close to the front line, a storekeeper suddenly shooed away customers and closed her doors in the middle of the morning for “stocktaking.” A volunteer ferrying medicines to families by bicycle said people were fearful of every interaction.

Credit…Finbarr O’Reilly for The New York Times

Several Ukrainians interviewed expressed bitter disaffection with their government. Many said they could barely survive on their pension, which amounts to as little as $70 a month.

Lyudmila Krilyshkina, 71, displaced after her home burned down in a rocket attack, wept as she complained that she was not able to draw her pension in Bakhmut. Since the shops were taking only cash, she could not buy food for herself and her parents, she said.

“They need to think of the people,” she said. “We understand there is a war but how are we supposed to survive?”

Another woman waiting to be evacuated complained that only voluntary organizations were helping the people, and that government officials were doing nothing. She asked not to be named for fear of retribution.

Disillusionment with previous corrupt governments helped propel President Volodymyr Zelensky to power in Ukraine. Since the Russian invasion, popular support for him has soared as the country has overwhelmingly backed his determination to fight. Yet there remains a deep, latent cynicism for the government and officials in Ukraine.

Ms. Tvyaniuk said she had spent 12 years fighting for justice after a corrupt court ruled against her and her daughter. Her daughter had successfully sued her former husband for alimony and child care payments but the police never enforced the court order and a judge helped falsify documents to overturn the ruling.

Credit…Finbarr O’Reilly for The New York Times

“The police protected the courts and the courts protected the police,” she said. “This happened under Ukrainian rule, and now I don’t know if it would be better under Russian rule or Ukrainian.”

“We don’t know what to expect,” said Ihor, 44, an unemployed laborer sitting outside his apartment block. But he said he and his partner, Olha, 60, would stay and live under Russian rule if its troops seized Bakhmut, adding, “What else is there?”

He complained that the Ukrainian leaders were corrupt and had robbed the country and its workers. “They stole and put everything in their pockets,” he said. “And if Russia takes over, that will be finished.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

How Roe Shaped the World of Work for Women

When Barbara Schwartz looks back at her younger days working as a Broadway stagehand, she remembers the electricity of it: the harried dancers slipping into their costumes backstage, the props people shoving past with flashlights between their teeth.

She was able to throw herself into that high-pressure career, she said, because of a choice she made in 1976. She got an abortion at a clinic she found in the Yellow Pages. It was three years after the Roe v. Wade ruling established the constitutional right to an abortion; to Ms. Schwartz, the world seemed full of new professional opportunities for women. She got a credit card in her own name, became one of the first women to make it into the local stagehand union and joined the throngs backstage at shows including “Cats” and “Miss Saigon.”

Ms. Schwartz, 69, is now retired. She is spending her retirement years escorting women to the doors of an abortion clinic on the border of Virginia and Tennessee. She was drawn to this volunteer work, she said, because to her, the promise from her 20s has dimmed — the result of laws that have chipped away at abortion access, with a leaked draft Supreme Court ruling this past week revealing that Roe is likely to be overturned.

“This is my giant pay it forward,” Ms. Schwartz said.

That is how Ginny Jelatis, 67, thinks about it too. She was of high school senior age the year Roe v. Wade was decided; she began serving as a clinic escort after retiring from her work as a history professor in 2016.

43 percent in 1970 to 57.4 percent in 2019. Many different factors drove women into the work force in greater numbers in those years, but scholars argue that abortion access was an important one.

poll in 2021 found that 59 percent of Americans said they believed abortion should be legal in all or most cases, and 39 percent said it should be illegal in all or most cases. Recent Pew data indicates that women are slightly more likely than men to say abortion should be legal in all cases, and younger people, between the ages of 18 and 29, are far more likely than older adults to say abortion should be legal in some or all cases.

Justice Harry A. Blackmun, a modest Midwestern Republican and a defender of the right to abortion, wrote the majority opinion.

Recent research has tried to understand the role abortion access plays in women’s employment. Most notable is the Turnaway Study, conducted at the University of California, San Francisco. Researchers followed two groups of women — a group that wanted and got abortions, and another that wanted abortions and were unable to obtain them — for five years and found that those unable to get abortions had worse economic outcomes. Almost two-thirds of those who did not have an abortion they had sought out were living in poverty six months later, compared with 45 percent of those who got the procedure.

patchwork of state laws on abortion access, with 13 states set to ban abortion immediately or very quickly after the court’s ruling. There is likely a correlation between the regions of the country where it is most difficult to get an abortion, and those with the fewest child care and parental leave options, according to an analysis of research findings from the financial site WalletHub.

For older women who felt they were able to attain financial stability because of the decision to have an abortion, there is resonance in sharing their stories with the younger women they meet at clinics today.

“The older folks I work with can remember that dread of, ‘My God, what if it happens to me?’” said Ms. Deiermann, who spent most of her career working in reproductive health advocacy.

Many clinic volunteers, like Ms. Deiermann, remember when their classmates and friends got illegal abortions. Telling those stories feels more urgent than ever.

Karen Kelley, 67, a retired labor and delivery nurse in Idaho, who volunteers at an abortion clinic there, spent her childhood aligned with her Roman Catholic family’s anti-abortion views. Then she found herself pregnant in her early 20s, without an income to support a baby. Realizing that motherhood could “derail all her hopes,” she chose to terminate that pregnancy, about six years after Roe.

That’s a memory Ms. Kelley conveys to the women she escorts to the clinic’s steps. “If I’m asked, I’m always honest that I understand how they’re feeling because I had an abortion and they have every right to make the decision,” she said.

And some older women said that the position they’re in now — retired, with savings and stability — is something they trace back to Roe.

“It gave us a chance to decide to marry and have a family later,” said Eileen Ehlers, 74, a retired high school English teacher and a mother.

What Roe gave her, she said, is something she can now pour back into volunteering: “We have time.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Pandemic’s Economic Impact Is Easing, but Aftershocks May Linger

The pandemic’s grip on the economy appears to be loosening. Job growth and retail spending were strong in January, even as coronavirus cases hit a record. New York, Massachusetts and other states have begun to lift indoor mask mandates. California on Thursday unveiled a public health approach that will treat the coronavirus as a manageable long-term risk.

Yet the economy remains far from normal. Patterns of work, socializing and spending, disrupted by the pandemic, have been slow to readjust. Prices are rising at their fastest pace in four decades, and there are signs that inflation is creeping into a broader range of products and services. In surveys, Americans report feeling gloomier about the economy now than at the height of the lockdowns and job losses in the first weeks of the crisis.

In other words, it may no longer be that “the virus is the boss” — as Austan Goolsbee, a University of Chicago economist, has put it. But the changes that it set in motion have proved both more persistent and more pervasive than economists once expected.

“I — totally naïvely — thought that once a vaccine was available, that we were six months away from a complete re-evaluation of the economy, and instead we’re just grinding it out,” said Wendy Edelberg, director of the Hamilton Project, an economic policy arm of the Brookings Institution. “A switch didn’t get flipped, and I thought it was going to.”

computer chips, lumber and even garage doors have held up production of items from cars to houses, while a lack of shipping containers has led to delays in almost anything transported from overseas. Some bottlenecks have let up in recent months, but logistics experts expect it to take months if not years for supply chains to run smoothly again.

disproportionate share of them women — have not.

Diahann Thomas was at work at a Brooklyn call center in January when she got a call from her son’s school: Her 11-year-old had been exposed to a classmate who had tested positive for Covid-19, and she needed to pick him up.

“There are all these moving parts now with Covid — one moment, they’re at school, the next moment they’re at home,” she said.

Ms. Thomas, 50, said her employer declined to provide flexibility while her son was in quarantine. So she quit — a decision she said was made easier by the knowledge that employers are eager to hire.

“It did boost my confidence to know that at the end of this, it’s not going to be difficult for me to pick up the pieces, and I have more bargaining power now,” she said. “There is this whole entire shift in terms of employee-employer relationship.”

Ms. Thomas expects to return to work once school schedules become more reliable. But the pandemic has shown her the value of being at home with her three children, she said, and she wants a job where she can work from home.

Whether and how people like Ms. Thomas return to work will be crucial to the economy’s path in coming months. If workers flood back to the job market as school and child care becomes more dependable and health risks recede, it will be easier for manufacturers and shipping companies to ramp up production and deliveries, giving supply a chance to catch up to demand. That in turn could allow inflation to cool without losing the economy’s progress over the past year.

care for children may not go back to work right away, or may choose to work part time. And other changes may be similarly slow to reverse: Companies that were burned by shortages may maintain larger inventories or rely on shorter supply chains, driving up costs. Workers who enjoyed flexibility from employers during the pandemic may demand it in the future. Rates of entrepreneurship, automation and, of course, remote work all increased during the pandemic, perhaps permanently.

Some of those changes could lead to higher inflation or slower growth. Others could make the economy more dynamic and productive. All make it harder for forecasters and policymakers to get a clear picture of the postpandemic economy.

“In almost every respect, economic ripple effects that we might have expected to be temporary or short-lived are proving to be more long-lasting,” said Luke Pardue, an economist for Gusto, a payroll platform for small businesses. “The new normal is looking a lot different.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

For Retail Workers, Omicron’s Impact Isn’t Just About Health

Long checkout lines. Closed fitting rooms. Empty shelves. Shortened store hours.

Plus the dread of contracting the coronavirus and yet another season of skirmishes with customers who refuse to wear masks.

A weary retail work force is experiencing the fallout from the latest wave of the pandemic, with a rapidly spreading variant cutting into staffing.

While data shows that people infected with the Omicron variant are far less likely to be hospitalized than those with the Delta variant, especially if they are vaccinated, many store workers are dealing with a new jump in illness and exposures, grappling with shifting guidelines around isolation and juggling child care. At the same time, retailers are generally not extending hazard pay as they did earlier in the pandemic and have been loath to adopt vaccine or testing mandates.

“We had gotten to a point here where we were comfortable, it wasn’t too bad, and then all of a sudden this new variant came and everybody got sick,” said Artavia Milliam, who works at H&M in Hudson Yards in Manhattan, which is popular with tourists. “It’s been overwhelming, just having to deal with not having enough staff and then twice as many people in the store.”

said last week that it would shorten store hours nationally on Mondays through Thursdays for the rest of the month. At least 20 Apple Stores have had to close in recent weeks because so many employees had contracted Covid-19 or been exposed to someone who had, and others have curtailed hours or limited in-store access.

At a Macy’s in Lynnwood, Wash., Liisa Luick, a longtime sales associate in the men’s department, said, “Every day, we have call-outs, and we have a lot of them.” She said the store had already reduced staff to cut costs in 2020. Now, she is often unable to take breaks and has fielded complaints from customers about a lack of sales help and unstaffed registers.

“Morale could not be lower,” said Ms. Luick, who is a steward for the local unit of the United Food and Commercial Workers union. Even though Washington has a mask mandate for indoor public spaces, “we get a lot of pushback, so morale is even lower because there’s so many people who, there’s no easy way to say this, just don’t believe in masking,” she added.

Store workers are navigating the changing nature of the virus and trying their best to gauge new risks. Many say that with vaccinations and boosters, they are less fearful for their lives than they were in 2020 — the United Food and Commercial Workers union has tracked more than 200 retail worker deaths since the start of the pandemic — but they remain nervous about catching and spreading the virus.

local legislation.

More broadly, the staffing shortages have put a new spotlight on a potential vaccine-or-testing mandate from the Biden administration, which major retailers have been resisting. The fear of losing workers appears to be looming large, especially now.

While the retail industry initially cited the holiday season rush for its resistance to such rules, it has more recently pointed to the burden of testing unvaccinated workers. After oral arguments in the case on Friday, the Supreme Court’s conservative majority expressed skepticism about whether the Biden administration had legal authority to mandate that large employers require workers to be vaccinated.

The National Retail Federation, a major industry lobbying group, said in a statement last week that it “continues to believe that OSHA exceeded its authority in promulgating its vaccine mandate.” The group estimated that the order would require 20 million tests a week nationally, based on external data on unvaccinated workers, and that “such testing capacity currently does not exist.”

When the top managers at Mr. Waugh’s Stop & Shop store began asking employees whether they were vaccinated in preparation for the federal vaccine mandates that could soon take effect, he said, a large number expressed concern to him about being asked to disclose that information.

“It was concerning to see that so many people were distressed,” he said, though all of the employees complied.

Ms. Luick of Macy’s near Seattle said that she worked with several vocal opponents of the Covid-19 vaccines and that she anticipated that at least some of her colleagues would resign if they were asked to provide vaccination status or proof of negative tests.

Still, Macy’s was among major employers that started asking employees for their vaccination status last week ahead of the Supreme Court hearing on Friday and said it might require proof of negative tests beginning on Feb. 16.

“Our primary focus at this stage is preparing our members for an eventual mandate to ensure they have the information and tools they need to manage their work force and meet the needs of their customers,” said Brian Dodge, president of the Retail Industry Leaders Association, which includes companies like Macy’s, Target, Home Depot, Gap and Walmart.

As seasonal Covid-19 surges become the norm, unions and companies are looking for consistent policies. Jim Araby, director of strategic campaigns for the food and commercial workers union in Northern California, said the retail industry needed to put in place more sustainable supports for workers who got ill.

For example, he said, a trust fund jointly administered by the union and several employers could no longer offer Covid-related sick days for union members.

“We have to start treating this as endemic,” Mr. Araby said. “And figuring out what are the structural issues we have to put forward to deal with this.”

Kellen Browning contributed reporting.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

As Omicron Threat Looms, Inflation Limits Fed’s Room to Maneuver

The Omicron variant of the coronavirus comes at a challenging moment for the Federal Reserve, as officials try to pivot from containing the pandemic’s economic fallout toward addressing worryingly persistent inflation.

The central bank has spent the past two years trying to support a still-incomplete labor market recovery, keeping interest rates at rock bottom and buying trillions of dollars’ worth of government-backed bonds since March 2020. But now that inflation has shot higher, and as price gains increasingly threaten to remain too quick for comfort, its policymakers are having to balance their efforts to support the economy with the need to keep price trends from leaping out of control.

That newfound focus on inflation may limit the central bank’s ability to cushion any blow Omicron might deal to America’s growth and the labor market. And in an unexpected twist, the new variant could even speed up the Fed’s withdrawal of economic support if it intensifies the factors that are causing inflation to run at its fastest pace in 31 years.

“In every one of the previous waves of the virus, the Fed was able to react by effectively focusing on downside risks to growth, and trying to mitigate them,” said Aneta Markowska, chief financial economist at Jefferies. “They’re no longer able to do that, because of inflation.”

said in an interview last week.

Janet L. Yellen, the Treasury secretary and a former Fed chair, made similar remarks at an event on Thursday.

“The pandemic could be with us for quite some time and, hopefully, not completely stifling economic activity but affecting our behavior in ways that contribute to inflation,” she said of the new variant.

during congressional testimony last week. “I think the risk of higher inflation has increased.”

Fed officials initially expected a 2021 price pop to fade quickly as supply chains unsnarled and factories worked through backlogs. Instead, inflation has been climbing at its fastest pace in more than three decades, and fresh data set for release on Friday are expected to show that the ascent continued as a broad swath of products — like streaming services, rental housing and food — had higher prices.

Given that, Mr. Powell and his colleagues have pivoted to inflation-fighting mode, trying to ensure that they are poised to respond decisively should price pressures persist.

Mr. Powell said last week that officials would discuss speeding up their plans to taper off their bond-buying program — prompting many economists to expect them to announce a plan after their December meeting that would allow them to stop buying bonds by mid-March. The Fed announced early in November that it would slow purchases from $120 billion a month, making the possible acceleration a notable change.

Ending bond-buying early would put officials in a position to raise their policy interest rate, which is their more traditional and more powerful tool.

nearly four million people are still missing from the labor market compared with just before the pandemic began. Some have most likely retired, but surveys and anecdotes suggest that many are lingering on the sidelines because they lack adequate child care or are afraid of contracting or passing along the coronavirus.

If the Fed begins to remove its support for the economy, slowing business expansion and hiring, the labor market could rebound more slowly and haltingly when and if those factors fade.

But the balancing act is different from what it was in previous business cycles. The factors keeping employees on the sidelines right now are mostly unrelated to labor demand, the side of the equation that the Fed can influence. Employers appear desperate to hire, and job openings have shot up. People are leaving their jobs at historically high rates, such a trend that job-quitting TikTok videos have become a cultural phenomenon.

In fact, the at-least-temporarily-tight labor market is one reason inflation might last. As they compete for workers and as employees demand more pay to keep up with ballooning consumption costs, companies are raising wages rapidly. The Employment Cost Index, which the Fed watches closely because it is less affected by many of the pandemic-tied problems that have muddied other wage gauges, rose sharply in its latest reading — catching policymakers’ attention.

If companies continue to increase pay, they may raise prices to cover their costs. That could keep inflation high, and anecdotal signs that such a trend is developing have already cropped up in the Fed’s survey of regional business contacts, called the Beige Book.

“Several contacts mentioned that labor costs were already being passed along to consumers with little resistance, while others said plans were underway to do so,” the Federal Reserve Bank of Atlanta reported in the latest edition, released last week.

Still, some believe that inflation will fade headed into 2022 as the world adjusts to changing shopping patterns or as holiday demand that has run up against constrained supply fades. That could leave the Fed with room to be patient on rate increases, even if it has positioned itself to be nimble.

Lifting rates “before those people come back is a little bit like throwing in the towel,” Ms. Markowska said. “I have a hard time believing that the Fed would throw in the towel that easily.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Biden Says Spending Bill Will Slow Inflation. But When?

Rocketing inflation has become a headache for U.S. consumers, and President Biden has a go-to prescription. He says a key way to help relieve increasing prices is to pass a $1.85 trillion collection of spending programs and tax cuts that is currently languishing in the Senate.

A wide range of economists agree with the president — but only in part. They generally accept his argument that in the long run, the bill and his infrastructure plan could make businesses and their workers more productive, which would help to ease inflation as more goods and services are produced across the economy.

But many researchers, including a forecasting firm that Mr. Biden often cites to support the economic benefits of his proposals, say the bill is structured in a way that could add to inflation next year, before prices have had time to cool off.

Some economists and lawmakers worry about the timing, arguing that the risk of fueling more inflation when it has reached record highs outweighs the potential benefits of passing a big spending bill that could help to keep prices in check while addressing other social goals. Prices have picked up by 6.2 percent over the past year, the fastest pace in 31 years and far above the Federal Reserve’s inflation target.

Joe Manchin III of West Virginia, has questioned whether high and rising prices should persuade lawmakers to tone down their ambitions.

“West Virginians are concerned about rising inflation,” he said on Twitter last week. “We cannot throw caution to the wind & continue to pile on debt that our country can’t afford.”

Democrats preparing to push it to a House vote as early as next week. But timing is uncertain in the Senate, where a vote is likely to be changed or delayed in response to Mr. Manchin’s concerns.

The extent to which Mr. Biden’s $1.85 trillion bill exacerbates inflation largely depends on how much it stimulates the economy and whether Americans increase their spending as a result of the legislation — and when all of that occurs.

Many economists say it could create a short-term stimulus because the plan is structured to raise money gradually by taxing wealthier Americans, who are less likely to spend each additional dollar they have, and redistribute it quickly to people who earn less and are more likely to spend newfound cash.

Because of the difference in timing between when the government spends money and when it starts to bring in more revenue, the bill is expected to pump money into the economy in its early years. Moody’s Analytics — the firm that the White House typically cites when arguing in favor of its legislation — estimates that the government will spend $163 billion more on the package than it takes in next year. And the redistribution could make the money more potent as economic stimulus.

“The spending is designed to go to the people who are more likely to spend it than to save it,” said Ben Ritz, the director of the Progressive Policy Institute’s Center for Funding America’s Future. But more than any specific program, “the bigger inflationary issue is the math.”

White House economists have countered those arguments. If the bill passes, they say, it would do relatively little to spur increased consumer spending next year and not nearly enough to fully offset the loss of government stimulus to the economy as pandemic aid expires. That the program spends more heavily next year is a feature, they say, because it will partly blunt the economic drag as fiscal help fades. They note that the bill is intended to be offset completely by tax increases and other revenue savings.

And they argue that by increasing the economy’s capacity to churn out goods and services, the president’s infrastructure plan and his broader program could both help to moderate costs over time.

Mr. Summers has argued.

There is less economic or political debate about Mr. Biden’s $1 trillion infrastructure plan, which cleared Congress last week and which the president will sign on Monday. Economists — including conservative ones — largely agree that it is likely to eventually expand the capacity of the economy, and that it is small and spread out enough that it will not meaningfully fuel faster inflation in the near term.

Among Democrats, there is widespread support for the economic ambitions contained in the administration’s broader spending bill, which aims to create more equity for low- and middle-class earners and a bigger safety net for working parents. But the measure is drawing more complicated reviews when it comes to its immediate effect on inflation.

Economists at Moody’s found in a recent analysis that the administration’s full agenda would slightly increase inflation in 2022, though they did not expect the program to ultimately raise it because of benefits that would later ease supply constraints. It estimates that with the infrastructure bill alone, inflation will be running at a 2.1 percent annual rate by the final quarter of next year. If the larger spending bill also passes, that grows to 2.5 percent.

But Moody’s baseline assumption that inflation will moderate by the end of next year is relatively optimistic. Bank of America’s economics team said that core consumer prices would still rise at a 3.2 percent rate at the end of next year, incorporating the assumption that Mr. Biden’s plan passes.

companies scramble for workers, prices rise and supply chains struggle to keep pace with booming demand, this is the wrong moment to hit the economy with any added juice.

“We don’t have a lot of spare capacity,” said Kristin J. Forbes, an economist at the Massachusetts Institute of Technology. “We certainly don’t have a lot of spare workers today.”

Inflation looms more significantly in the near term because it is currently high, and if it remains that way for an extended period, consumers could change their behaviors and expectations, locking in faster gains. People who worry about the proposals say that 2022 is the wrong time to hand households more money.

Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, said she was unsure whether the package would fuel inflation. But given the current pace of price increases, “you have to be more careful than you would be otherwise.”

The White House says the provisions of the bill that put money in families’ pockets, such as child care help, are not simple stimulus. They will allow caregivers into the labor market, they argue, an investment in the economy’s future that will allow it to produce more with time.

That makes the new program different from the spending passed earlier this year. The Biden administration increasingly acknowledges that sending households checks and offering expanded unemployment insurance supplemented savings, and that as households had more wherewithal to spend it helped to drive up prices.

Mr. Biden said in Baltimore on Wednesday. But the White House contends that this program is not the same as the previous package, and that it will make the price situation better, not worse.

“According to the economic experts, this bill is going to ease inflationary pressures,” the president said on Wednesday.

Still, the 17 Nobel Prize-winning economists that the White House regularly cites have specified that capacity improvements will ease inflation over time rather than imminently.

“Because this agenda invests in long-term economic capacity and will enhance the ability of more Americans to participate productively in the economy,” they wrote, “it will ease longer-term inflationary pressures.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Biden Finds Raising Corporate Tax Rates Easier Abroad Than at Home

ROME — President Biden and other world leaders endorsed a landmark global agreement on Saturday that seeks to block large corporations from shifting profits and jobs across borders to avoid taxes, a showcase win for a president who has found raising corporate tax rates an easier sell with other countries than with his own party in Congress.

The announcement in the opening session of the Group of 20 summit marked the world’s most aggressive attempt yet to stop opportunistic companies like Apple and Bristol Myers Squibb from sheltering profits in so-called tax havens, where tax rates are low and corporations often maintain little physical presence beyond an official headquarters.

It is a deal years in the making, which was pushed over the line by the sustained efforts of Mr. Biden’s Treasury Department, even as the president’s plans to raise taxes in the United States for new social policy and climate change programs have fallen short of his promises.

The revenue expected from the international pact is now critical to Mr. Biden’s domestic agenda, an unexpected outcome for a president who has presented himself more as a deal maker at home rather than abroad.

end the global practice of profit-shifting, celebrated the international tax provisions this week and said they would be significant steps toward Mr. Biden’s vision of a global economy where companies invest, hire and book more profits in the United States.

But they also conceded that infighting among congressional Democrats had left Mr. Biden short of fulfilling his promise to make corporations pay their “fair share,” disappointing those who have pushed Mr. Biden to reverse lucrative tax cuts for businesses passed under Mr. Trump.

The framework omits a wide range of corporate tax increases that Mr. Biden campaigned on and pushed relentlessly in the first months of his presidency. He could not persuade 50 Senate Democrats to raise the corporate income tax rate to 28 percent from 21 percent, or even to a compromise 25 percent, or to eliminate incentives that allow some large firms — like fossil fuel producers — to reduce their tax bills.

“It’s a tiny, tiny, tiny, tiny, step,” Erica Payne, the president of a group called Patriotic Millionaires that has urged tax increases on corporations and the wealthy, said in a statement after Mr. Biden’s framework announcement on Friday. “But it’s a step.”

The Treasury Department said on Friday that even the additional enforcement money for the I.R.S. could still generate $400 billion in additional tax revenue over 10 years and said that was a “conservative” estimate.

An administration official said that the difficulty in rolling back the Trump tax cuts was the result of the fact that the Democrats are a big tent party ideologically with a very narrow majority in Congress, where a handful of moderates currently rule.

In Rome, Mr. Biden’s struggle to raise taxes more has not complicated the sealing of the international agreement. The move by the heads of state to commit to putting the deal in place by 2023 looms as the featured achievement of the summit, and Mr. Biden’s surest victory of a European swing that also includes a climate conference in Scotland next week.

Briefing reporters on Friday evening, a senior administration official, speaking on the condition of anonymity in order to preview the first day of the summit, said Biden aides were confident that world leaders were sophisticated and understood the nuances of American politics, including the challenges in passing Mr. Biden’s tax plans in Congress.

The official also said world leaders see the tax deal as reshaping the rules of the global economy.

The international tax agreement represented a significant achievement of economic diplomacy for Mr. Biden and Ms. Yellen, who dedicated much of her first year on the job to reviving negotiations that stalled during the Trump administration. To show that the United States was serious about a deal, she abandoned a provision that would have made it optional for American companies to pay new taxes to foreign countries and backed away from an initial demand for a global minimum tax of 21 percent.

For months, Ms. Yellen cajoled Ireland’s finance minister, Paschal Donohoe, to back the agreement, which would require Ireland to raise its 12.5 percent corporate tax rate — the centerpiece of its economic model to attract foreign investment. Ultimately, through a mix of pressure and pep talks, Ireland relented, removing a final obstacle that could have prevented the European Union from ratifying the agreement.

Some progressives in the United States say that Mr. Biden’s ability to follow through on his end of the bargain was a crucial piece of the framework spending bill.

“The international corporate reforms are the most important,” said Seth Hanlon, a senior fellow at the liberal Center for American Progress, who specializes in tax policy, “because they are linked to the broader multilateral effort to stop the corporate race to the bottom. It’s so important for Congress to act this year to give that effort momentum.”

Jim Tankersley reported from Rome, and Alan Rappeport from Washington.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

What if It Never Gets Easier to Be a Working Parent?

Above all, issues around managing child care and work that had long been considered private family matters were suddenly out in the open, turning the needs of working parents into a subject that resonated in conference rooms and state capitals across the country.

The potential implications were profound: Not only could the pandemic help recalibrate the answer to a question like, “Who picks up a sick child from school?” but it could also radically alter whether workplaces look askance at the parent who takes time away from work to do to so. More fundamentally, any number of policy ideas that the pandemic inspired, if realized, could make it easier for working parents, especially women, to balance work and child care, as well as increase gender equality at work and at home and upend entrenched gender norms about caregiving.

“It just feels like an Overton window, where you have increased public dialogue but also you have public will to really change and reflect on women’s experiences in the work force,” C. Nicole Mason, the president and chief executive of the Institute for Women’s Policy Research, said in an interview this summer.

Roughly half of mothers with children under 18 were employed full-time last year. For white-collar women and women with office jobs, who were more likely to benefit from increased work flexibility, the possible reforms were uniquely promising.

But the optimism is fading, partially because of Washington. The Biden administration and Democrats in Congress indicated early in the year that federal paid family and medical leave was a priority in the president’s domestic spending package — but the plan was pared down from 12 weeks to four weeks, then dropped entirely from the framework President Biden announced on Thursday.

“As you can see, the window is closing,” Dr. Mason said this past week.

Now, as the pandemic recedes and everyday life begins to return to normal, some working mothers are worried that nothing much will change.

“People are finally seeing how important child care is in our society,” said Kristen Shockley, an associate professor of psychology at the University of Georgia who studies the intersection of work and family life. “But is that going to translate into a way that our society values caregiving? I’m less optimistic about that.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Persistent Inflation Threatens Biden’s Agenda

WASHINGTON — At least once a week, a team of President Biden’s top advisers meet on Zoom to address the nation’s supply chain crisis. They discuss ways to relieve backlogs at America’s ports, ramp up semiconductor production for struggling automakers and swell the ranks of truck drivers.

The conversations are aimed at one goal: taming accelerating price increases that are hurting the economic recovery, unsettling American consumers and denting Mr. Biden’s popularity.

An inflation surge is presenting a fresh challenge for Mr. Biden, who for months insisted that rising prices were a temporary hangover from the pandemic recession and would quickly recede. Instead, the president and his aides are now bracing for high inflation to persist into next year, with Americans continuing to see faster — and sustained — increases in prices for food, gasoline and other consumer goods than at any point this century.

That reality has complicated Mr. Biden’s push for sweeping legislation to boost workers, expand access to education and fight poverty and climate change. And it is dragging on the president’s approval ratings, which could threaten Democrats’ already tenuous hold on Congress in the 2022 midterm elections.

CNBC and Fox News show a sharp decline in voter ratings of Mr. Biden’s overall performance and his handling of the economy, even though unemployment has fallen quickly on his watch and economic output has strengthened to its fastest rate since Ronald Reagan was president. Voter worry over price increases has jumped in the last month.

via executive actions.

“There are distinct challenges from turning the economy back on after the pandemic that we are bringing together state and local officials, the private sector and labor to address — so that prices decrease,” Kate Berner, the White House deputy communications director, said in an interview.

Mr. Biden’s top officials stress that the administration’s policies have helped accelerate America’s economic rebound. Workers are commanding their largest wage gains in two decades. Growth roared back in the first half of the year, fueled by the $1.9 trillion economic aid bill the president signed in March. America’s expansion continues to outpace other wealthy nations around the world.

Inflation has risen in wealthy nations across the globe, as the pandemic has hobbled the movement of goods and component parts between countries. Virus-wary consumers have shifted their spending toward goods rather than services, travel and tourism remain depressed, and energy prices have risen as demand for fuel and electricity has surged amid the resumption of business activity and some weather shocks linked to climate change.

But some economists, including veterans of previous Democratic administrations, say much of Mr. Biden’s inflation struggle is self-inflicted. Lawrence H. Summers is one of those who say the stimulus bill the president signed in March gave too much of a boost to consumer spending, at a time when the supply-chain disruptions have made it hard for Americans to get their hands on the things they want to buy. Mr. Summers, who served in the Obama and Clinton administrations, says inflation now risks spiraling out of control and other Democratic economists agree there are risks.

“The original sin was an oversized American Rescue Plan. It contributed to both higher output but also higher prices,” said Jason Furman, a Harvard economist who chaired the White House Council of Economic Advisers under President Barack Obama.

That has some important Democrats worried about price-related drawbacks from the president’s ambitious spending package, complicating Mr. Biden’s approach.

ease the pain of high-profile price spikes, like gasoline. Some in his administration have pushed for mobilizing the National Guard to help unclog ports that are stacked with imports waiting to be delivered to consumers around the country. Mr. Biden has raised the possibility of tapping the strategic petroleum reserve to modestly boost oil supplies, or of negotiating with oil producers in the Middle East to ramp up.

During a CNN town hall last week, Mr. Biden conceded the limits of his power, saying, “I don’t have a near-term answer” for bringing down gas prices, which he does not expect to begin dropping until next year.

“I don’t see anything that’s going to happen in the meantime that’s going to significantly reduce gas prices,” he said.

Janet L. Yellen, the Treasury secretary, told CNN’s “State of the Union” on Sunday that she expects improvement in the overall inflation rate “by the middle to end of next year, second half of next year.”

With an American public that had gone nearly 40 years without seeing — or worrying — about inflation, the issue provides an opening for the opposition. Republicans have turned price spikes into a weapon against Mr. Biden’s economic policies, warning that more spending would exacerbate the pain for everyday Americans.

“It’s everywhere,” said Representative Kevin Brady of Texas, the top Republican on the Ways and Means Committee, in an interview. “You can’t live your life without seeing your paycheck buy less.”

White House officials have monitored inflationary pressure for months. They remain convinced, as they were in April, that price increases will not spiral out of control and force abrupt interest-rate increases from the Federal Reserve that could slam the brakes on growth.

The president and his top advisers remain confident that price growth will start to fall well before the midterms. They defend the size of the rescue plan and say Americans are focused on inflation right now because the success of the stimulus bill accelerated economic and employment growth and took a larger issue — the availability of jobs for people who want them — off the table.

“It is a highly incomplete view to try to assess the economy, and even people’s views about the economy, by looking at inflation alone,” Jared Bernstein, a member of Mr. Biden’s Council of Economic Advisers, said in an interview. “You also have to appreciate the robustness of the expansion, and how it’s lifting job and earnings opportunities.”

Mr. Bernstein and other advisers say many of the causes of inflation are already improving. They point to calculations by Mark Zandi, a Moody’s Analytics economist, that suggest Americans who have left the labor force will begin flocking back into the job market by December or January, because they will likely have exhausted their savings by then.

The advisers are also continuing to explore more actions they could take, including efforts to increase the number of truck drivers near ports and to force lower prices and more competition in the food industry.

“We are always all in on everything,” Ms. Berner said.

To which many officials add a caveat: Almost anything the White House could do now will take time to push prices down.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<