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Checks and Balance newsletter: Joe Biden’s state-of-the-union speech

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This is the introduction to Checks and Balance, a weekly, subscriber-only newsletter bringing exclusive insight from our correspondents in America.

Joe Biden delivered a party-convention (state-of-the-union) speech, writes James Bennet, our Lexington columnist

No one got whacked over the head with a cane, but in other respects Joe Biden’s state-of-the-union speech proved to be one of those moments in which I found myself wondering if American politics is returning to its 19th-century mores—thanks in part to social media and other 21st-century technology. The Progressive era introduced institutions that restrained some of the excesses of partisanship, such as the civil service. It also inculcated ideals of bipartisanship and decorum that are now fading away. They may have been debts vice was paying to virtue—even at its most seemingly decorous, politics is always a rough business—but I think we will miss them if they truly disappear. 

It is a bit melancholy that Mr Biden, with his veneration for the rites of Washington, would find himself compelled to deliver a state-of-the-union address that was in many respects more like a party-convention speech. But this has been coming for years, since even before a Republican congressman shouted “You lie” at President Barack Obama in 2009 during an address to a joint session of Congress. The next year, in a state-of-the-union speech, Mr Obama took the extraordinary step of chiding the Supreme Court, for a decision related to campaign finance—precedent for the shot Mr Biden took Thursday night at the justices for overturning Roe v Wade. In 2020 Nancy Pelosi, then speaker of the House, theatrically tore apart her copy of President Donald Trump’s speech after he finished delivering it.

Mr Trump, with his contempt for what he sees as the pretences of a cynical, transactional business, accelerated the trend towards open partisanship in all aspects of governing. The clownish displays by his minions in the House chamber on Thursday night, with their heckling and their MAGA hats or t-shirts, undermined the subsequent pious outrage of Republicans over Mr Biden’s politicking. 

It is an axiom of American politics that presidential elections are a referendum on the incumbent. But in this campaign Americans have a choice between two presidents, neither of whom they much like. For each man the path to a second term lies through negative partisanship, ie, persuading voters that the other guy is worse. It will be a brutal campaign. 

And that made the more humane moments in the House chamber on Thursday night seem all the more precious, even if they were flashes of old-style senatorial clubbiness. “I know you don’t want to hear any more, Lindsey, but I gotta say a few more things,” Mr Biden said towards the end of his speech, singling out Lindsey Graham, a senator from South Carolina. Mr Graham has remade himself as an acolyte of Mr Trump, but, clearly delighted by the presidential attention, he roared with laughter. 

And Mr Biden drew his most powerful contrast with Mr Trump by closing on a high note. It is another axiom of American politics that presidential campaigns are about the future, and Mr Biden is out to paint Mr Trump as obsessed with grievances from his past. Mr Biden’s refrain at the end of the speech became “I see a future,” as he envisioned more freedom, fairer taxation, less gun violence. “I see a future for all Americans,” he said, and—the partisanship of his speech notwithstanding—he added, “I will always be a president for all Americans.”

Economics

A protest against America’s TikTok ban is mired in contradiction

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AS A SHUTDOWN looms, TikTok in America has the air of the last day of school. The Brits are saying goodbye to the Americans. Australians are waiting in the wings to replace banished American influencers. And American users are bidding farewell to their fictional Chinese spies—a joke referencing the American government’s accusation that China is using the app (which is owned by ByteDance, a Chinese tech giant) to surveil American citizens.

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Economics

Home insurance costs soar as climate events surge, Treasury Dept. says

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Firefighters battle flames during the Eaton Fire in Pasadena, California, U.S., Jan. 7, 2025.

Mario Anzuoni | Reuters

Climate-related natural disasters are driving up insurance costs for homeowners in the most-affected regions, according to a Treasury Department report released Thursday.

In a voluminous study covering 2018-22 and including some data beyond that, the department found that there were 84 disasters costing $1 billion or more, excluding floods, and that they caused a combined $609 billion in damages. Floods are not covered under homeowner policies.

During the period, costs for policies across all categories rose 8.7% faster than the rate of inflation. However, the burden went largely to those living in areas most hit by climate-related events.

For consumers living in the 20% of zip codes with the highest expected annual losses, premiums averaged $2,321, or 82% more than those living in the 20% of lowest-risk zip codes.

“Homeowners insurance is becoming more costly and less accessible for consumers as the costs of climate-related events pose growing challenges to both homeowners and insurers alike,” said Nellie Liang, undersecretary of the Treasury for domestic finance.

The report comes as rescue workers continue to battle raging wildfires in the Los Angeles area. At least 25 people have been killed and 180,000 homeowners have been displaced.

Treasury Secretary Janet Yellen said the costs from the fires are still unknown, but noted that the report reflected an ongoing serious problem. During the period studied, there was nearly double the annual total of disasters declared for climate-related events as in the period of 1960-2010 combined.

“Moreover, this [wildfire disaster] does not stand alone as evidence of this impact, with other climate-related events leading to challenges for Americans in finding affordable insurance coverage – from severe storms in the Great Plans to hurricanes in the Southeast,” Yellen said in a statement. “This report identifies alarming trends of rising costs of insurance, all of which threaten the long-term prosperity of American families.”

Both homeowners and insurers in the most-affected areas were paying in other ways as well.

Nonrenewal rates in the highest-risk areas were about 80% higher than those in less-risky areas, while insurers paid average claims of $24,000 in higher-risk areas compared to $19,000 in lowest-risk regions.

In the Southeast, which includes states such as Florida and Louisiana that frequently are slammed by hurricanes, the claim frequency was 20% higher than the national average.

In the Southwest, which includes California, wildfires tore through 3.3 million acres during the time period, with five events causing more than $100 million in damages. The average loss claim was nearly $27,000, or nearly 50% higher than the national average. Nonrenewal rates for insurance were 23.5% higher than the national average.

The Treasury Department released its findings with just three days left in the current administration. Treasury officials said they hope the administration under President-elect Donald Trump uses the report as a springboard for action.

“We certainly are hopeful that our successors stay focused on this issue and continue to produce important research on this issue and think about important and creative ways to address it,” an official said.

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Economics

How bad will the smoke be for Angelenos’ health?

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Where there is fire, there is smoke. For the people of Los Angeles, this will add to the misery. Some are already suffering from burning throats and irritated eyes. Many miles from the wildfires, people are wearing masks; shops are running out. The fires may also cause long-term problems.

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