new survey by the Pew Research Center found that 15 percent of prominent accounts on those seven platforms had previously been banished from others like Twitter and Facebook.

F.B.I. raid on Mar-a-Lago thrust his latest pronouncements into the eye of the political storm once again.

study of Truth Social by Media Matters for America, a left-leaning media monitoring group, examined how the platform had become a home for some of the most fringe conspiracy theories. Mr. Trump, who began posting on the platform in April, has increasingly amplified content from QAnon, the online conspiracy theory.

He has shared posts from QAnon accounts more than 130 times. QAnon believers promote a vast and complex conspiracy that centers on Mr. Trump as a leader battling a cabal of Democratic Party pedophiles. Echoes of such views reverberated through Republican election campaigns across the country during this year’s primaries.

Ms. Jankowicz, the disinformation expert, said the nation’s social and political divisions had churned the waves of disinformation.

The controversies over how best to respond to the Covid-19 pandemic deepened distrust of government and medical experts, especially among conservatives. Mr. Trump’s refusal to accept the outcome of the 2020 election led to, but did not end with, the Capitol Hill violence.

“They should have brought us together,” Ms. Jankowicz said, referring to the pandemic and the riots. “I thought perhaps they could be kind of this convening power, but they were not.”

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Biden At Independence Hall: Trump, Allies Threaten Democracy

In a speech Thursday night, President Biden framed the November elections as part of an ongoing battle for the “soul of the nation.”

President Joe Biden warned Thursday night that “equality and democracy are under assault” in the U.S. as he sounded an alarm about his predecessor, Donald Trump, and “MAGA Republican” adherents, labeling them an extremist threat to the nation and its future.

Aiming to reframe the November elections as part of a battle for the nation’s soul — “the work of my presidency,” President Biden used his prime-time speech at Independence Hall in Philadelphia to argue that Trump and “Make America Great Again” allies are a challenge to nation’s system of government, its standing abroad and its citizens’ way of life.

“Donald Trump and the MAGA Republicans represent an extremism that threatens the very foundations of our Republic,” President Biden declared. He said they “are determined to take this country backward’ they “promote authoritarian leaders and they fan the flames of political violence.”

The explicit effort by President Biden to marginalize Trump and his adherents marks a sharp turn for the president, who preached his desire to bring about national unity in his Inaugural address. White House officials said it reflects his mounting concern about Trump allies’ ideological proposals and relentless denial of the nation’s 2020 election results.

“MAGA forces are determined to take this country backwards,” President Biden is saying, according to prepared remarks released by the White House. “Backwards to an America where there is no right to choose, no right to privacy, no right to contraception, no right to marry who you love.”

“For a long time, we’ve reassured ourselves that American democracy is guaranteed. But it is not,” President Biden says. “We have to defend it. Protect it. Stand up for it. Each and every one of us.”

President Biden, who largely avoided even referring to “the former guy” by name during his first year in office, has grown increasingly vocal in calling out Trump personally. Now, emboldened by his party’s recent legislative wins and wary of Trump’s return to the headlines, President Biden is sharpening his attacks.

Trump plans a rally this weekend in Scranton, Pennsylvania, President Biden’s birthplace.

At a Democratic fundraiser last week, President Biden likened the “MAGA philosophy” to “semi-fascism.”

In Philadelphia, White House officials said, President Biden intended to hark back to the 2017 White supremacist protest in Charlottesville, Virginia, which he says brought him out of political retirement to challenge Trump. President Biden argues that the country faces a similar crossroads in the coming months.

Biden allies stress that he is not rejecting the entirety of the GOP and is calling on traditional Republicans to join him in condemning Trump and his followers. It’s a balancing act, given that more than 74 million people voted for Trump in 2020.

“I respect conservative Republicans,” President Biden said last week. “I don’t respect these MAGA Republicans.”

Delivering a preemptive rebuttal from Scranton Thursday evening, House Republican leader Kevin McCarthy accused President Biden of trying to divide Americans, and blasted the Democrats’ record in Washington, pointing to rising inflation, crime and government spending.

“In the past two years, Joe Biden has launched an assault on the soul of America, on its people, on its laws, on its most sacred values,” he said. “He has launched an assault on our democracy. His policies have severely wounded America’s soul, diminished America’s spirit and betrayed America’s trust.”

Asked about McCarthy’s criticism, White House press secretary Karine Jean-Pierre said “we understand we hit a nerve” with the GOP leader, and quoted the Republican’s prior statements saying Trump bore responsibility for the Jan. 6, 2021, attack on the U.S. Capitol.

Larry Diamond, an expert on democracy and senior fellow at the Hoover Institution at Stanford University, said calling Trump out for attacks on democracy “can be manipulated or framed as being partisan. And if you don’t call it out, you are shrinking from an important challenge in the defense of democracy.”

Even this week, Trump was posting on his beleaguered social media platform about overturning the 2020 election results and holding a new presidential election, which would violate the Constitution.

Timothy Naftali, a presidential historian at New York University, said it’s not unusual for there to be tension between a president and his successor, but it’s “unprecedented for a former president to be actively trying to undermine the U.S. Constitution.”

“The challenge that President Biden faces is to get on with his agenda while still doing what he needs to uphold the Constitution,” Naftali said. “That’s not easy.”

The White House has tried to keep President Biden removed from the legal and political maelstrom surrounding the Department of Justice’s discovery of classified documents in Trump’s Florida home. Still, President Biden has taken advantage of some Republicans’ quick condemnation of federal law enforcement.

“You can’t be pro-law enforcement and pro-insurrection,” President Biden said Tuesday in Wilkes Barre, Pennsylvania.

President Biden’s appearance Thursday night was promoted as an official, taxpayer-funded event, a mark of how the president views defeating the Trump agenda as much as a policy aim as a political one. The major broadcast television networks were not expected to carry the address live.

President Biden’s trip to Philadelphia is just one of his three to the state within a week, a sign of Pennsylvania’s importance in the midterms, with competitive Senate and governor’s races. However, neither Lt. Gov. John Fetterman, the Democrats’ Senate nominee, nor Attorney General Josh Shapiro, their pick for governor, was expected to attend Thursday night.

The White House intended the speech to unite familiar themes: holding out bipartisan legislative wins on guns and infrastructure as evidence that democracies “can deliver,” pushing back on GOP policies on guns and abortion that President Biden says are out of step with most people’s views, and rejecting efforts to undermine confidence in the nation’s election or diminish its standing abroad.

The challenges have only increased since the tumult surrounding the 2020 election and the Capitol attack.

Lies surrounding that presidential race have triggered harassment and death threats against state and local election officials and new restrictions on mail voting in Republican-dominated states. County election officials have faced pressure to ban the use of voting equipment, efforts generated by conspiracy theories that voting machines were somehow manipulated to steal the election.

Candidates who dispute Trump’s loss have been inspired to run for state and local election posts, promising to restore integrity to a system that has been undermined by false claims.

There is no evidence of any widespread fraud or manipulation of voting machines. Judges, including ones appointed by Trump, dismissed dozens of lawsuits filed after the election, and Trump’s own attorney general called the claims bogus. Yet Associated Press-NORC Center for Public Affairs Research polling has shown about two-thirds of Republicans say they do not think President Biden was legitimately elected president.

This year, election officials face not only the continuing threat of foreign interference but also ransomware, politically motivated hackers and insider threats. Over the past year, security breaches have been reported at a small number of local election offices in which authorities are investigating whether office staff improperly accessed or provided improper access to sensitive voting technology.

Additional reporting by The Associated Press. 

: newsy.com

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2 Top House Democrats Battle In New York Primary

By Associated Press

and Newsy Staff
August 23, 2022

Voters will choose Tuesday between U.S. Rep. Jerry Nadler and U.S. Rep. Carolyn Maloney in a rare face-off between incumbents due to redistricting.

He helped lead the fight to impeach Donald Trump. She battled for people sickened by clouds of toxic soot after the Sept. 11 attacks.

At least one of New York City’s most veteran members of Congress will be voted out of office Tuesday in a Democratic primary pitting U.S. Rep. Jerry Nadler against U.S. Rep. Carolyn Maloney in a race both hoped to avoid.

At least one of New York City’s most veteran members of Congress will be voted out of office Tuesday in an unusual Democratic primary between incumbents.

Neither was willing to run in another part of the city.

Nadler and Maloney are joined in the race by 38-year-old Suraj Patel, a lawyer and lecturer at New York University who also challenged Maloney in Democratic primaries in 2018 and 2020. A fourth candidate, Ashmi Sheth, a former Federal Reserve Bank of New York employee, is on the ballot but did not meet fundraising benchmarks to qualify for debates.

Nadler, 75, was first elected to Congress in 1992. As chair of the House Judiciary Committee, he led both impeachments of Republican former President Donald Trump. He was buoyed in the last weeks of the campaign by endorsements from The New York Times and Senate Majority Leader Chuck Schumer.

Maloney, 76, was also first elected in 1992. She is the first woman to chair the House Oversight and Reform Committee. She is known for her longtime advocacy for Sept. 11 first responders seeking compensation for diseases they attribute to contamination from the destruction of the World Trade Center. She wore a firefighter’s jacket on Capitol Hill and at the 2019 Met Gala.

Few policy differences between Nadler, Maloney and Patel emerged during the primary campaign.

All support abortion rights, the Green New Deal and tighter restrictions on gun ownership. Patel argued that Nadler’s and Maloney’s generation failed to achieve Democratic goals like codifying Roe v. Wade and should cede to new blood.

Nadler and Maloney countered that their seniority in Congress brings clout that benefits New Yorkers.

Friends for many years, the two Democrats lamented having to run against each other — something that only happened after a court redrew the boundaries of the state’s congressional districts after concluding the legislature botched the process.

“I didn’t want to run against my good friend, Jerry Nadler,” Maloney said at a recent debate. “We have been friends and allies for years. Unfortunately, we were drawn into the same district.”

Still, on the campaign trail Maloney said that as a woman, she would fight harder to protect abortion rights than Nadler.

Asked at a debate how his record differed from that of Maloney, Nadler cited his votes against the Iraq War and the Patriot Act, and in favor of the Iran nuclear deal. Maloney, also elected to Congress in 1992, voted the other way on all three.

Maloney also came under fire from her opponents for her past positions on vaccines, including in 2006 when she introduced legislation directing the federal government to study the debunked theory that vaccines can cause autism. Maloney insisted that she supports vaccines and regretted ever questioning vaccine safety.

The primary winner in the overwhelmingly Democratic district will face Republican Michael Zumbluskas in the November general election.

Additional reporting by The Associated Press.

: newsy.com

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Pres. Biden Is Holding Off On Climate Emergency Declaration For Now

On Wednesday, the president will announce other climate actions in Somerset, Massachusetts, but declaring an emergency won’t happen as of now.

President Joe Biden will travel to Massachusetts on Wednesday to promote new efforts to combat climate change, although he will not declare an emergency that would unlock federal resources to deal with the issue despite increasing pressure from climate activists and Democratic lawmakers.

The White House said Tuesday it has not ruled out issuing such a declaration later, which would allow the president to reroute funds to climate efforts without congressional approval. On Wednesday, President Biden will announce other new climate actions when he visits a former coal-fired power plant in Somerset, Massachusetts, which shuttered in 2017 but has since been reborn as an offshore wind power facility.

But since Sen. Joe Manchin hit pause on negotiations over climate spending and taxes last week, the public attention has shifted to a presidential emergency declaration and what the Biden administration could do with the newfound powers.

“It’s not on the table for this week,” Karine Jean-Pierre, White House press secretary, said of a climate emergency declaration. “We are still considering it. I don’t have the upsides or the downsides of it.”

The president has been trying to signal to Democratic voters that he’s aggressively tackling global warming at a time when some of his supporters have despaired about the lack of progress. He has pledged to push forward on his own in the absence of congressional action.

Declaration of a climate emergency would be similar to one issued by former President Donald Trump boosting construction of a southern border wall. It would allow Pres. Biden to redirect spending to accelerate renewable energy such as wind and solar power and speed the nation’s transition away from fossil fuels such as coal, oil and natural gas. The declaration also could be used as a legal basis to block oil and gas drilling or other projects, although such actions would likely be challenged in court by energy companies or Republican-led states.

The focus on climate action comes amid a heat wave that has seared swaths of Europe, with Britain reaching the highest temperature ever registered in a country ill-prepared for such weather extremes.

The typically temperate nation was just the latest to be walloped by unusually hot, dry weather that has triggered wildfires from Portugal to the Balkans and led to hundreds of heat-related deaths. Images of flames racing toward a French beach and Britons sweltering — even at the seaside — have driven home concerns about climate change.

The president vowed late last week to take robust executive action on climate after Sen. Manchin — who has wielded outsized influence on the president’s legislative agenda because of Democrats’ razor-thin majority in the Senate — hit the brakes on negotiations over proposals for new environmental programs and higher taxes on the wealthy and corporations.

One of the biggest backers of fossil fuels within the Democratic caucus, Sen. Manchin has blamed persistently high inflation for his hesitation to go along with another spending package. His resistance has enraged other congressional Democrats who have ramped up pressure on Pres. Biden to act on his own on climate.

“I think given the global crisis that we’re facing, given the inability of Congress to address this existential threat, I think the White House has got to use all of the resources and tools that they can,” Sen. Bernie Sanders, (I) VT, said. “That’s something that I’ve called for, a long time ago.”

Pres. Biden, who served in the Senate for more than three decades, “has been chained to the legislative process, thinking about his past as a senator,” Sen. Jeff Merkley, (D) OR, said at a news conference Monday night. “Now he’s unchained, and he has to go.”

John Podesta, board chairman of the liberal Center for American Progress and a former climate counselor for President Barack Obama, said environmental leaders met with senior White House officials on Friday to discuss policy ideas. Some proposals included ramping up regulations on vehicle emissions and power plants, reinstating a ban on crude oil exports and suspending new leases for oil drilling on federal lands and waters.

“If he’s going to make good on his commitments to do everything he can to bring emissions down, he’s got to pay attention to those critical regulatory issues that are facing him,” Podesta said.

Ben King, an associate director at independent research firm Rhodium Group, said the United States is “nowhere close” to meeting ambitious goals set by Pres. Biden for reducing emissions.

The president escalated the country’s emissions reduction target to at least 50% below 2005 levels by 2030. Under current policies in place at the federal and state level, the U.S. is on track to reach a reduction of 24% to 35%, according to the Rhodium Group’s latest analysis.

“Absent meaningful policy action, we’re far off track from meeting the goals that the U.S. is committed to under the Paris accord,” King said, referring to a 2015 global conference on addressing climate change.

Even as Democrats and environmental groups pushed the president to act on his own, some legal scholars questioned whether an emergency declaration on climate change is justified.

“Emergency powers are designed for events such as terrorist attacks, epidemics and natural disasters,’’ said Elizabeth Goitein, co-director of the liberty and national security program at the Brennan Center for Justice at New York University School of Law.

Such powers “aren’t intended to address persistent problems, no matter how dire. And they aren’t meant to be an end-run around Congress,’’ Goitein wrote in a op-ed for The Washington Post last year.

Additional reporting by The Associated Press.

: newsy.com

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The Fight Over Truth Also Has a Red State, Blue State Divide

To fight disinformation, California lawmakers are advancing a bill that would force social media companies to divulge their process for removing false, hateful or extremist material from their platforms. Texas lawmakers, by contrast, want to ban the largest of the companies — Facebook, Twitter and YouTube — from removing posts because of political points of view.

In Washington, the state attorney general persuaded a court to fine a nonprofit and its lawyer $28,000 for filing a baseless legal challenge to the 2020 governor’s race. In Alabama, lawmakers want to allow people to seek financial damages from social media platforms that shut down their accounts for having posted false content.

In the absence of significant action on disinformation at the federal level, officials in state after state are taking aim at the sources of disinformation and the platforms that propagate them — only they are doing so from starkly divergent ideological positions. In this deeply polarized era, even the fight for truth breaks along partisan lines.

a nation increasingly divided over a variety of issues — including abortion, guns, the environment — and along geographic lines.

a similar law in Florida that would have fined social media companies as much as $250,000 a day if they blocked political candidates from their platforms, which have become essential tools of modern campaigning. Other states with Republican-controlled legislatures have proposed similar measures, including Alabama, Mississippi, South Carolina, West Virginia, Ohio, Indiana, Iowa and Alaska.

Alabama’s attorney general, Steve Marshall, has created an online portal through which residents can complain that their access to social media has been restricted: alabamaag.gov/Censored. In a written response to questions, he said that social media platforms stepped up efforts to restrict content during the pandemic and the presidential election of 2020.

“During this period (and continuing to present day), social media platforms abandoned all pretense of promoting free speech — a principle on which they sold themselves to users — and openly and arrogantly proclaimed themselves the Ministry of Truth,” he wrote. “Suddenly, any viewpoint that deviated in the slightest from the prevailing orthodoxy was censored.”

Much of the activity on the state level today has been animated by the fraudulent assertion that Mr. Trump, and not President Biden, won the 2020 presidential election. Although disproved repeatedly, the claim has been cited by Republicans to introduce dozens of bills that would clamp down on absentee or mail-in voting in the states they control.

memoirist and Republican nominee for Senate, railed against social media giants, saying they stifled news about the foreign business dealings of Hunter Biden, the president’s son.

massacre at a supermarket in Buffalo in May.

Connecticut plans to spend nearly $2 million on marketing to share factual information about voting and to create a position for an expert to root out misinformation narratives about voting before they go viral. A similar effort to create a disinformation board at the Department of Homeland Security provoked a political fury before its work was suspended in May pending an internal review.

In California, the State Senate is moving forward with legislation that would require social media companies to disclose their policies regarding hate speech, disinformation, extremism, harassment and foreign political interference. (The legislation would not compel them to restrict content.) Another bill would allow civil lawsuits against large social media platforms like TikTok and Meta’s Facebook and Instagram if their products were proven to have addicted children.

“All of these different challenges that we’re facing have a common thread, and the common thread is the power of social media to amplify really problematic content,” said Assemblyman Jesse Gabriel of California, a Democrat, who sponsored the legislation to require greater transparency from social media platforms. “That has significant consequences both online and in physical spaces.”

It seems unlikely that the flurry of legislative activity will have a significant impact before this fall’s elections; social media companies will have no single response acceptable to both sides when accusations of disinformation inevitably arise.

“Any election cycle brings intense new content challenges for platforms, but the November midterms seem likely to be particularly explosive,” said Matt Perault, a director of the Center on Technology Policy at the University of North Carolina. “With abortion, guns, democratic participation at the forefront of voters’ minds, platforms will face intense challenges in moderating speech. It’s likely that neither side will be satisfied by the decisions platforms make.”

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Thanksgiving Holiday Travel Will Test Airlines

Widespread flight cancellations. Excruciating waits for customer service. Unruly passengers.

And that was all before the holiday travel season.

Even in normal times, the days around Thanksgiving are a delicate period for the airlines. But this week is the industry’s biggest test since the pandemic began, as millions more Americans — emboldened by vaccinations and reluctant to spend another holiday alone — are expected to take to the skies than during last year’s holidays.

A lot is riding on the carriers’ ability to pull it off smoothly.

“For many people, this will be the first time they’ve gotten together with family, maybe in a year, year and a half, maybe longer, so it’s very significant,” said Kathleen Bangs, a former commercial pilot who is a spokeswoman for FlightAware, an aviation data provider. “If it goes poorly, that’s when people might rethink travel plans for Christmas. And that’s what the airlines don’t want.”

The Transportation Security Administration said it expected to screen about 20 million passengers at airports in the 10 days that began Friday, a figure approaching prepandemic levels. Two million passed through checkpoints on Saturday alone, about twice as many as on the Saturday before last Thanksgiving.

lengthy note to customers last month.

His apology came after Southwest canceled nearly 2,500 flights over a four-day stretch — nearly 18 percent of its scheduled flights, according to FlightAware — as a brief bout of bad weather and an equally short-lived air traffic control staffing shortage snowballed.

Weeks later, American Airlines suffered a similar collapse, canceling more than 2,300 flights in four days — nearly 23 percent of its schedule — after heavy winds slowed operations at Dallas-Fort Worth International Airport, its largest hub.

American and Southwest have said they are working to address the problems, offering bonuses to encourage employees to work throughout the holiday period, stepping up hiring and pruning ambitious flight plans.

Sara Nelson, president of the Association of Flight Attendants, a union representing roughly 50,000 flight attendants at 17 airlines, gave the carriers good marks for their preparations.

“First and foremost, we are getting demand back after the biggest crisis aviation has ever faced,” she said.

“I think there has been a lot of good planning,” she added. “And barring a major weather event, I think that the airlines are going to be able to handle the demand.”

Flight crews have had to contend with overwork and disruptive and belligerent passengers, leaving them drained and afraid for their safety.

Helene Albert, 54, a longtime flight attendant for American Airlines, said she took an 18-month leave by choice that was offered because of the pandemic. When she returned to work on Nov. 1 on domestic routes, she said, she saw a difference in passengers from when she began her leave.

“People are hostile,” she said. “They don’t know how to wear masks and they act shocked when I tell them we don’t have alcohol on our flights anymore.”

begun investigations into 991 episodes involving passenger misbehavior in 2021, more than in the last seven years combined. In some cases, the disruptions have forced flights to be delayed or even diverted — an additional strain on air traffic.

gathering storm systems were threatening to deliver gusty winds and rain that could interfere with flights, but for the most part, the weather is not expected to cause major disruptions.

“Overall, the news is pretty good in terms of the weather in general across the country cooperating with travel,” said Jon Porter, the chief meteorologist for AccuWeather. “We’re not dealing with any big storms across the country, and in many places the weather will be quite favorable for travel.”

Even so, AAA, the travel services organization, recommended that airline passengers arrive two hours ahead of departure for domestic flights and three hours ahead for international destinations during the Thanksgiving travel wave.

Some lawmakers warned that a Monday vaccination deadline for all federal employees could disrupt T.S.A. staffing at airports, resulting in long lines at security checkpoints, but the agency said those concerns were unfounded.

“The compliance rate is very high, and we do not anticipate any disruptions because of the vaccination requirements,” R. Carter Langston, a T.S.A. spokesman, said in a statement on Friday.

With many people able to do their jobs or classes remotely, some travelers left town early, front-running what are typically the busiest travel days before the holiday.

TripIt, a travel app that organizes itineraries, said 33 percent of holiday travelers booked Thanksgiving flights for last Friday and Saturday, according to its reservation data. (That number was slightly down from last year, when 35 percent of travelers left on the Friday and Saturday before Thanksgiving, and marginally higher than in 2019, when 30 percent of travelers did so, TripIt said.)

Among those taking advantage of the flexibility was Emilia Lam, 18, a student at New York University who traveled home to Houston on Saturday. She is doing her classes this week remotely, she said, and planned her early getaway to get ahead of the crush. “The flights are going to be way more crowded,” she said, as Thursday approaches.

Robert Chiarito and Maria Jimenez Moya contributed reporting.

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Why Would an Economist Ever Look on the Bright Side?

“Economists are not known for looking at the glass half full,” said Ms. Coronado.

(It is an enduring observation about her profession. Thomas Carlyle in the 19th century labeled the entire economics profession “the dismal science,” and given its ring of truth, the dreary title stuck.)

Besides inflation, economists are worrying about possible asset bubbles. Central bank officials including Robert S. Kaplan, head of the Dallas Fed, and James Bullard, head of the St. Louis branch, have warned that policymakers should be keeping a careful eye on rising real estate prices. And as Delta surges, analysts of all stripes are watching closely to ensure that it does not slow shopping, traveling and dining out — while worrying that it will.

The gray cloud that seems to hang over the profession might have a silver lining. It could be the case that by monitoring the risks around high inflation and watching for impending doom, the profession is setting up America for a more sustainable expansion down the road — one where government spending policy is more carefully crafted not to tax overextended industries, and where investors believe the Fed will act if needed, keeping exuberance in check.

Mr. Dutta, an eternal optimist who has a habit of releasing all-caps tirades against his profession’s endemic pessimism, thinks people could be a little bit more excited without overdoing it.

“THIS IS A CONSUMER SLOWDOWN??” he wrote in a recent note, pointing out that credit card spending data is holding up. He celebrated the last employment report, a robust reading, by titling it “JULY FIREWORKS.”

He points out that many people think the economy would be even stronger right now if supply bottlenecks weren’t holding back production and preventing spending. At least some of that spending will presumably eventually take place when those holdups clear, setting up for stronger future growth. Plus, he points out that people are making decisions that they would not if they had a glum future in mind: Families are buying houses, which he calls the “the most irreversible-decision asset.” Businesses are buying equipment.

He talks with an air of exasperation, like someone who has been right before. That is, in part, because he recently has been: Mr. Dutta, who has a bachelor’s from New York University but who lacks the fancy doctorates many of his counterparts claim, correctly argued that the economy would not slump headed into 2021, at a time when some Wall Street economists were looking for flat or even negative growth readings as infections surged.

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Once Tech’s Favorite Economist, Now a Thorn in Its Side

Paul Romer was once Silicon Valley’s favorite economist. The theory that helped him win a Nobel prize — that ideas are the turbocharged fuel of the modern economy — resonated deeply in the global capital of wealth-generating ideas. In the 1990s, Wired magazine called him “an economist for the technological age.” The Wall Street Journal said the tech industry treated him “like a rock star.”

Not anymore.

Today, Mr. Romer, 65, remains a believer in science and technology as engines of progress. But he has also become a fierce critic of the tech industry’s largest companies, saying that they stifle the flow of new ideas. He has championed new state taxes on the digital ads sold by companies like Facebook and Google, an idea that Maryland adopted this year.

And he is hard on economists, including himself, for long supplying the intellectual cover for hands-off policies and court rulings that have led to what he calls the “collapse of competition” in tech and other industries.

“Economists taught, ‘It’s the market. There’s nothing we can do,’” Mr. Romer said. “That’s really just so wrong.”

free-market theory. Monopoly or oligopoly seems to be the order of the day.

The relentless rise of the digital giants, they say, requires new thinking and new rules. Some were members of the tech-friendly Obama administration. In congressional testimony and research reports, they are contributing ideas and credibility to policymakers who want to rein in the big tech companies.

Their policy recommendations vary. They include stronger enforcement, giving people more control over their data and new legislation. Many economists support the bill introduced this year by Senator Amy Klobuchar, Democrat of Minnesota, that would tighten curbs on mergers. The bill would effectively “overrule a number of faulty, pro-defendant Supreme Court cases,” Carl Shapiro, an economist at the University of California, Berkeley, and a member of the Council of Economic Advisers in the Obama administration, wrote in a recent presentation to the American Bar Association.

Some economists, notably Jason Furman, a Harvard professor, chair of the Council of Economic Advisers in the Obama administration and adviser to the British government on digital markets, recommend a new regulatory authority to enforce a code of conduct on big tech companies that would include fair access to their platforms for rivals, open technical standards and data mobility.

his Nobel lecture in 2018 prompted him to think about the “progress gap” in America. Progress, he explained, is not just a matter of economic growth, but should also be seen in measures of individual and social well-being.

Mr. Romer pushed the idea that new cities of the developing world should be a blend of government design for basics like roads and sanitation, and mostly let markets take care of the rest. During a short stint as chief economist of the World Bank, he had hoped to persuade the bank to back a new city, without success.

In the big-tech debate, Mr. Romer notes the influence of progressives like Lina Khan, an antitrust scholar at Columbia Law School and a Democratic nominee to the Federal Trade Commission, who see market power itself as a danger and look at its impact on workers, suppliers and communities.

That social welfare perspective is a wider lens that appeals to Mr. Romer and others.

“I’m totally on board with Paul on this,” said Rebecca Henderson, an economist and professor at the Harvard Business School. “We have a much broader problem than one that falls within the confines of current antitrust law.”

Mr. Romer’s specific contribution is a proposal for a progressive tax on digital ads that would apply mainly to the largest internet companies supported by advertising. Its premise is that social networks like Facebook and Google’s YouTube rely on keeping people on their sites as long as possible by targeting them with attention-grabbing ads and content — a business model that inherently amplifies disinformation, hate speech and polarizing political messages.

So that digital ad revenue, Mr. Romer insists, is fair game for taxation. He would like to see the tax nudge the companies away from targeted ads toward a subscription model. But at the least, he said, it would give governments needed tax revenue.

In February, Maryland became the first state to pass legislation that embodies Mr. Romer’s digital ad tax concept. Other states including Connecticut and Indiana are considering similar proposals. Industry groups have filed a court challenge to the Maryland law asserting it is an illegal overreach by the state.

Mr. Romer says the tax is an economic tool with a political goal.

“I really do think the much bigger issue we’re facing is the preservation of democracy,” he said. “This goes way beyond efficiency.”

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‘A Perfect Positive Storm’: Bonkers Dollars for Big Tech

In the Great Recession more than a decade ago, big tech companies hit a rough patch just like everyone else. Now they have become unquestioned winners of the pandemic economy.

The combined yearly revenue of Amazon, Apple, Alphabet, Microsoft and Facebook is about $1.2 trillion, according to earnings reported this week, more than 25 percent higher than the figure just as the pandemic started to bite in 2020. In less than a week, those five giants make more in sales than McDonald’s does in a year.

The U.S. economy is cranking back from 2020, when it contracted for the first time since the financial crisis. But for the tech giants, the pandemic hit was barely a blip. It’s a fantastic time to be a titan of U.S. technology — as long as you ignore the screaming politicians, the daily headlines about killing free speech or dodging taxes, the gripes from competitors and workers, and the too-many-to-count legal investigations and lawsuits.

America’s technology superpowers aren’t making bonkers dollars in spite of the deadly coronavirus and its ripple effects through the global economy. They have grown even stronger because of the pandemic. It’s both logical and slightly nuts.

have more money in their pockets thanks to government stimulus checks and pandemic savings, and the tech giants are getting a significant share. Their combined revenue is equivalent to roughly 5 percent of the gross domestic product of the United States.

Big Tech’s pandemic big bucks have an understandable root cause: We needed its services.

People gravitated to Facebook’s apps to stay in touch and entertained, and businesses wanted to pay Facebook and Google, which Alphabet owns, to help them find customers who were stuck at home. People preferred to buy diapers and deck chairs from Amazon rather than risk their health shopping in stores. Companies loaded up on software from Microsoft as their businesses and work forces went virtual. Apple’s laptops and iPads become lifelines for office workers and schoolchildren.

Before the pandemic, America’s technology superpowers were already influential in how we communicated, worked, stayed entertained and shopped. Now they are practically unavoidable. Investors have scooped up Big Tech shares in a bet that these companies are nearly invincible.

“They were already on the way up and had been for the best part of a decade, and the pandemic was unique,” said Thomas Philippon, a professor of finance at New York University. “For them it was a perfect positive storm.”

Sales in the first quarter rose 44 percent from a year earlier, and Amazon’s profits before taxes — which have never been exactly robust — more than doubled to $8.9 billion. Businesses are addicted to Amazon’s cloud computer services, where sales rose 32 percent, and shoppers can’t live without Amazon’s delivery. Investors love Amazon, too. The company’s stock market value has nearly doubled since the beginning of 2020 to $1.8 trillion.

For the other tech giants, it’s as if their brief pandemic nosedive never happened. Advertising sales typically rise and fall with the economy. But as other types of ad spending shrank when the U.S. economy contracted last year, ad sales rose for Google and Facebook. The growth was even better for them in the first three months of this year.

A year ago, analysts worried that Apple would be crippled as the pandemic gripped China, which is the hub of the company’s manufacturing operations and its most important consumer market. The fears didn’t last long. In the first three months of 2021, Apple’s revenue from selling iPhones increased at the fastest rate since 2012. Sales in mainland China, Taiwan and Hong Kong nearly doubled from a year earlier.

been on a tear. So have some younger technology companies, such as Snap and Zoom, the maker of the pandemic-favorite videoconferencing app. The crisis forced all sorts of businesses to go digital fast in ways that could help them thrive. Restaurants invested in online sales and delivery, and doctors went full bore into telemedicine.

But the dictionary doesn’t have enough superlatives to describe what’s happening to the five biggest technology companies. It’s all a bit awkward, really. It’s rocket fuel for critics, including some regulators and lawmakers in Europe and the United States, who say the tech giants crowd out newcomers and leave everyone worse off.

peculiarities of the pandemic economy. Some people and sectors are doing awesome, while other families are lining up at food banks and while companies like airlines are begging for cash. Unlike the stock market clobbering in the Great Recession, stock indexes in the United States have reached new highs.

The tech superstars have also capitalized on this moment. Alphabet and Facebook have used the pandemic to cut back in places that matter less, such as promotional costs and travel and entertainment budgets. And the tech giants have generally increased spending in areas that extend their advantages.

Alphabet is now spending more on big-ticket projects, like building computer complexes, than Exxon Mobil spends to dig oil and gas out of the ground. Amazon’s work force has expanded by more than 470,000 people since the end of 2019. That deepens the moat separating the tech superstars from everyone else.

Big Tech is emerging from the pandemic lean, mean and ready for a U.S. economy expected to roar back to life in 2021. Meanwhile, there are still long lines at food banks. Some American workers who lost their jobs last year may never get them back. Housing advocates are worried that millions of people will be evicted from their homes. And being Big Tech is an invitation for everyone to hate you — but you do have towering piles of money.

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Federal Aid to Renters Moves Slowly, Leaving Many at Risk

WASHINGTON — Four months after Congress approved tens of billions of dollars in emergency rental aid, only a small portion has reached landlords and tenants, and in many places it is impossible even to file an application.

The program requires hundreds of state and local governments to devise and carry out their own plans, and some have been slow to begin. But the pace is hindered mostly by the sheer complexity of the task: starting a huge pop-up program that reaches millions of tenants, verifies their debts and wins over landlords whose interests are not always the same as their renters’.

The money at stake is vast. Congress approved $25 billion in December and added more than $20 billion in March. The sum the federal government now has for emergency rental aid, $46.5 billion, rivals the annual budget of the Department of Housing and Urban Development.

Experts say careful preparation may improve results; it takes time to find the neediest tenants and ensure payment accuracy. But with 1 in 7 renters reporting that they are behind on payments, the longer it takes to distribute the money, the more landlords suffer destabilizing losses, and tenants risk eviction.

scheduled to expire in June.

“I’m impressed with the amount of work that unsung public servants are doing to set up these programs, but it is problematic that more money isn’t getting out the door,” said Ingrid Gould Ellen, a professor at New York University who is studying the effort. “There are downstream effects if small landlords can’t keep up their buildings, and you want to reach families when they first hit a crisis so their problems don’t compound.”

Estimates of unpaid rents vary greatly, from $8 billion to $53 billion, with the sums that Congress has approved at the high end of the range.

The situation illustrates the patchwork nature of the American safety net. Food, cash, health care and other types of aid flow through separate programs. Each has its own mix of federal, state and local control, leading to great geographic variation.

programs with discretionary money from the CARES Act, passed in March 2020. These efforts disbursed $4.5 billion in what amounted to a practice run for the effort now underway with 10 times the money.

Lessons cited include the need to reach out to the poorest tenants to let them know aid is available. Technology often posed barriers: Renters had to apply online, and many lacked computers or internet access.

nearly 1 renter household in 5 reported being behind on payments.

The national effort, the Emergency Rental Assistance Program, is run by the Treasury Department. It allocates money to states and also to cities and counties with populations of at least 200,000 that want to run their own programs. About 110 cities and 227 counties have chosen to do so.

The program offers up to 12 months of rent and utilities to low-income tenants economically harmed by the pandemic, with priority on households with less than half the area’s median income — typically about $34,000 a year. Federal law does not deny the aid to undocumented immigrants, though a few states and counties do.

Modern assistance seems to demand a mix of Jacob Riis and Bill Gates — outreach to the marginalized and help with software. Progress slowed for a month when the Biden administration canceled guidance issued under President Donald J. Trump and developed rules that require less documentation.

Other reasons for slow starts vary. Progressive state legislators in New York spent months debating the best way to protect the neediest tenants. Conservatives legislators in South Carolina were less focused on the issue. But the result was largely the same: Neither legislature passed its program until April, and neither state is yet accepting applications.

“I just don’t know why there hasn’t been more of a sense of urgency,” said Sue Berkowitz, the director of the South Carolina Appleseed Legal Justice Center. “We’ve been hearing nonstop from people worried about eviction.”

committee in the state House of Representatives found that after 45 days, the program had paid just 250 households.

By contrast, a program jointly run by the city of Houston and Harris County had spent about a quarter of its money and assisted nearly 10,000 households.

Not everyone is troubled by the pace. “Getting the money out fast isn’t necessarily the goal here, especially when we focus on making sure the money reaches the most vulnerable people,” said Diane Yentel, the director of the National Low Income Housing Coalition.

2018 study found the area had the country’s highest eviction rate. Charleston County ran three rounds of rental relief with CARES Act money, and the state ran two.

The second state program, started with $25 million in February, drew so many applications that it closed in six days. But South Carolina is still processing those requests as it decides how to distribute the new federal funds.

Antonette Worke is among the applicants awaiting an answer. She moved to Charleston from Denver last year, drawn by cheaper rents, warmer weather and a job offer. But the job fell through, and her landlord filed for eviction.

Ms. Worke, who has kidney and liver disease, is temporarily protected by the federal eviction moratorium. But it does not cover tenants whose leases expire, as hers will at the end of next month. Her landlord said he would force her to move, even if the state paid the $5,000 in overdue rent.

Still, she said the help was important: A clean slate would make it easier to rent a new apartment and relieve her of an impossible debt. “I’m stressing over it to the point where I’ve made myself sicker,” she said.

Moving faster than the state, Charleston County started its $12 million program two weeks ago, and workers have taken computers to farmers’ markets, community centers and a mall parking lot. Christine DuRant, a deputy county administrator, said the aid was needed to prevent foreclosures that could reduce the housing stock. But critics would pounce if the program sent payments to people who do not qualify, she said: “We will be audited,” possibly three times.

Latoya Green is caught where the desire for speed and accounting collide. A clerk who lost hours in the pandemic, she owes $3,700 in rent and utilities and is protected by the eviction moratorium only until her lease expires next month.

She applied for help on the day the county program started but has not completed the application. She said she is unsettled by the emails requesting her lease, which she lacks, and proof of lost income.

Still, Ms. Green does not criticize Charleston County officials. “I think they’re trying their best,” she said. “A lot of people run scams.”

With time running short, she added: “I just hope and pray to God they’ll be able to assist me.”

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