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State attorneys-general are shaping national policy

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To foreigners looking in, it is unusual enough that America elects most of its top prosecutors. More shocking is the amount of money going into political campaigns. Now the two have come together in a way that would make even the least wonky American curious. Between 2008 and 2022 the cost of state attorney-general races rose from $17m to $222m. Over that period governors’ contests became only eight—rather than 12—times pricier and those of state senators merely doubled.

The cashflow reflects something much bigger: the role of state attorney-general has been recast. The job used to be about defending state laws and prosecuting cheats, fraudsters and corporate bullies. Today attorneys-general shape nationwide politics and policy by pushing strategic lawsuits through their favourite courts. Their quiet rise to power has made the states’ top lawyers some of America’s most unchecked partisan players.

Two attorneys-general, one a Republican and one a Democrat, exemplify the new breed. First there is Ken Paxton of Texas. Between 2021 and 2023 he refused to represent state agencies in court at least 75 times, according to ProPublica and the Texas Tribune, both news outlets—often seemingly for ideological reasons. He has dropped child-sexual-assault cases after losing track of the plaintiffs, let payments to crime victims lapse and taken decreasing interest in catching Medicaid cheats. Instead he chose to energise his Trumpian base by relentlessly suing the Biden administration. Mr Paxton has blocked vaccine mandates and banned abortion when it was still protected under the federal constitution. Most recently he brought the country’s attention to a bitter row over whether Texas can enforce its own immigration regime at the southern border.

“I am sickened by his disregard for the safety of Americans,” Letitia James wrote after one such case. Though Ms James is Mr Paxton’s ideological opposite, as New York’s attorney-general she goes about her job in rather similar fashion. An Empire State judge will soon decide whether to side with her and strip Donald Trump of his property business for lying to lenders about his finances. Her case alleging that the bosses of the National Rifle Association, a gun lobby, schemed to enrich themselves is on trial in Manhattan. These charges may have more legal merit than some of Mr Paxton’s. But they have also given progressives reason to swoon over her. When asked last summer to represent the state’s more centrist Democratic governor—in theory her primary client—on immigration issues she recused herself, telling Politico, a news website, that this was due to “a philosophical difference”.

New York and Texas are not isolated examples. How did the attorney-general’s office come to be held by partisans who pursue flashy lawsuits rather than defending the laws of their states? The story dates back to a Supreme Court case on environmentalism. In the early 2000s non-profit groups, cities and states teamed up against the Bush administration for not regulating greenhouse gases. They argued that pollutants were a health risk and that the Clean Air Act required the feds to do something. The plaintiffs’ argument was strong; the question was who had standing to sue. The Supreme Court ruled that due to the threat of rising sea-levels the Massachusetts attorney-general could lead the charge.

Massachusetts v EPA set the precedent for a single state to challenge the federal government in court. That drastically expanded the reach of attorneys-general—Republicans soon raced to sue Barack Obama when he took office. Over time attorneys-general realised that if they banded together with like-minded colleagues across the country, they could handpick the district with the most sympathetic judges in which to bring their case. One federal judge’s injunction in their favour, and against Washington, could shut down a policy for the whole country until a higher court ruled on its appeal. “Not only can they play on their home-turf, they can now choose the referee,” says Steve Vladeck of the University of Texas at Austin.

The strategy took off when Mr Trump became president. Democratic attorneys-general sued the federal government more times in four years than they had in the previous 16, says Paul Nolette, a political scientist. Republicans took it a step further under Joe Biden, aiming their litigation not just at Democratic policies but at the administrative state itself. Today these lawsuits are masterfully co-ordinated to maximise partisan wins, says James Tierney, a former attorney-general of Maine who teaches at Harvard University. With that in mind it is less surprising that Mr Trump’s Muslim travel ban was halted by a judge in Honolulu and mifepristone, an abortion pill, was temporarily outlawed by a judge in the Texas Panhandle.

Follow the money

Dark-money groups caught on to the fact that attorneys-general had sway and that their races were cheaper to influence than congressional ones. The Concord Fund, a conservative one, has pumped at least $9.5m into the contests since 2020. That cash no doubt helped unseat moderates: a five-term Republican attorney-general of Idaho who refused to be a political activist was booted out in 2022. The left is no more tolerant of impartiality. The Democratic Attorneys General Association, which funds candidates, announced in 2019 that it would no longer back Democrats who were not explicitly pro-choice. For aspiring attorneys-general the calculus has become clear: get more political, get elected.

To those who fear too much power is concentrated in the executive, activist attorneys-general are perhaps a good check. Yet according to a YouGov/Economist poll, most Americans would prefer their attorney-general to stick to bread-and-butter law enforcement. Voters elect lawmakers, not litigators, to craft national policy.

Stay on top of American politics with The US in brief, our daily newsletter with fast analysis of the most important electoral stories, and Checks and Balance, a weekly note from our Lexington columnist that examines the state of American democracy and the issues that matter to voters.

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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