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Economics

How one California beach town became Gavin Newsom’s nemesis

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AN IDYLLIC CITY in swanky Orange County, California, is not where you would expect to encounter a self-professed champion of the proletariat. Huntington Beach was first known for oil (the high school’s mascot is still the Oilers), then for surfing. Yet that is how Gracey Van Der Mark, its Republican mayor, sees herself and her city. A framed copy of a recent Los Angeles Times column suggesting (half facetiously) that Donald Trump should pick her for his vice-president hangs on her office wall. She says other cities are afraid of Gavin Newsom, the state’s Democratic governor, “because he’s acting like a tyrant”.

Mr Newsom’s alleged tyranny stems from his administration’s insistence that cities should build more housing, which the state badly needs and which many cities with wealthy residents and scores of beach-front bungalows resent. That is not his only crime, in the eyes of Ms Van Der Mark. Huntington Beach is fighting the state on several fronts, from housing regulations to voting rules to the flying of the gay-pride flag. The city’s ill-advised battles against Mr Newsom are emblematic of the friction between California’s many Republican pockets and the liberal state government; and of the evolution of California’s Republican Party during the Trump era.

Some 41% of Huntington Beach residents are registered Republicans, making them the city’s largest political tribe. But lately the city’s flavour of Republicanism has changed. In 2022 Ms Van Der Mark and several MAGA compatriots ran for the city council as a slate. All were elected, and now serve alongside three Democrats—though local elections there are technically non-partisan. Rhonda Bolton, a Democrat on the council, says the body’s politics have become a poisonous sludge that bears a passing resemblance to America’s House of Representatives.

This is not the first time Huntington Beach and the state, whose government sits in Sacramento, have been at loggerheads over housing. In 2019 the state sued the city for allegedly blocking new development. The trouble this time stems from the city’s failure to approve plans to build housing to meet projected demand, a process that every local government in the state must complete. The state and city sued each other over the matter. The city’s case, arguing that the state cannot force localities to build, was tossed out. The state’s suit is still pending.

The city council put several contentious measures on the primary ballot in March, including one that would introduce voter-ID rules. California’s attorney-general and secretary of state, who is in charge of voting processes, warned the city that such a measure contravenes state law. The measure passed anyway. Another legal battle probably awaits.

Ms Van Der Mark argues that Huntington Beach can set its own housing and voting rules because it is a charter city. A “home rule” provision in California’s constitution holds that such cities, which have adopted a kind of local constitution, can “make and enforce all ordinances and regulations in respect to municipal affairs”. But the state’s constitution does not define “municipal affairs”, leaving the courts to decide what is appropriate. More than a fifth of all cities in California have a charter. But Huntington Beach has become the biggest cheerleader for home rule. “Sacramento is using us as an example for every other city,” says Ms Van Der Mark. On this, at least, the city and state agree.

California Republicans were often more moderate than their eastern peers. As governor, Ronald Reagan favoured some environmental protections. Arnold Schwarzenegger travelled the globe warning about climate change. Yet Mr Trump’s influence has proved too powerful for such moderation to persist.

Ms Bolton says she believes most Huntington Beach residents are more moderate than the council, and will not stand for such chicanery for long. But the election cycle is against her. In November voters will get the chance to oust her and the other Democrats. Ms Van Der Mark is not up for re-election until 2026. She was tickled by the column suggesting that she is Mr Trump’s loyal soldier in Orange County, but insists she will not run for higher office unless she “is needed somewhere”.

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Accounting

Business Transaction Recording For Financial Success

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Business Transaction Recording For Financial Success

In the world of financial management, accurate transaction recording is much more than a routine task—it is the foundation of fiscal integrity, operational transparency, and informed decision-making. By maintaining meticulous records, businesses ensure their financial ecosystem remains robust and reliable. This article explores the essential practices for precise transaction recording and its critical role in driving business success.

The Importance of Detailed Transaction Recording
At the heart of accurate financial management is detailed transaction recording. Each transaction must include not only the monetary amount but also its nature, the parties involved, and the exact date and time. This level of detail creates a comprehensive audit trail that supports financial analysis, regulatory compliance, and future decision-making. Proper documentation also ensures that stakeholders have a clear and trustworthy view of an organization’s financial health.

Establishing a Robust Chart of Accounts
A well-organized chart of accounts is fundamental to accurate transaction recording. This structured framework categorizes financial activities into meaningful groups, enabling businesses to track income, expenses, assets, and liabilities consistently. Regularly reviewing and updating the chart of accounts ensures it stays relevant as the business evolves, allowing for meaningful comparisons and trend analysis over time.

Leveraging Modern Accounting Software
Advanced accounting software has revolutionized how businesses handle transaction recording. These tools automate repetitive tasks like data entry, synchronize transactions in real-time with bank feeds, and perform validation checks to minimize errors. Features such as cloud integration and customizable reports make these platforms invaluable for maintaining accurate, accessible, and up-to-date financial records.

The Power of Double-Entry Bookkeeping
Double-entry bookkeeping remains a cornerstone of precise transaction management. By ensuring every transaction affects at least two accounts, this system inherently checks for errors and maintains balance within the financial records. For example, recording both a debit and a credit ensures that discrepancies are caught early, providing a reliable framework for accurate reporting.

The Role of Timely Documentation
Prompt transaction recording is another critical factor in financial accuracy. Delays in documentation can lead to missing or incorrect entries, which may skew financial reports and complicate decision-making. A culture that prioritizes timely and accurate record-keeping ensures that a company always has real-time insights into its financial position, helping it adapt to changing conditions quickly.

Regular Reconciliation for Financial Integrity
Periodic reconciliations act as a vital checkpoint in transaction recording. Whether conducted daily, weekly, or monthly, these reviews compare recorded transactions with external records, such as bank statements, to identify discrepancies. Early detection of errors ensures that records remain accurate and that the company’s financial statements are trustworthy.

Conclusion
Mastering the art of accurate transaction recording is far more than a compliance requirement—it is a strategic necessity. By implementing detailed recording practices, leveraging advanced technology, and adhering to time-tested principles like double-entry bookkeeping, businesses can ensure financial transparency and operational efficiency. For finance professionals and business leaders, precise transaction recording is the bedrock of informed decision-making, stakeholder confidence, and long-term success.

With these strategies, businesses can build a reliable financial foundation that supports growth, resilience, and the ability to navigate an ever-changing economic landscape.

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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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