Economics

The Supreme Court hears its first abortion case since ending Roe

Published

10 months ago

March 31, 2024

Business Finance News

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Nearly two-thirds of the Americans who choose to end their pregnancies now do so using pills. Medication abortion has been an increasingly popular option since 2000, when the Food and Drug Administration (FDA) first approved mifepristone as part of a two-drug regimen with misoprostol. More recently, the FDA widened the window during which the medicine may be used and eased dispensing requirements. But on March 26th the Supreme Court will consider whether these loosened regulations should be tightened back up.

FDA v Alliance for Hippocratic Medicine began as an assault on the FDA’s original approval of mifepristone. In April 2023 the district-court judge in Texas who heard the case invalidated the authorisation from 2000 and each of the subsequent liberalisations. The Fifth Circuit Court of Appeals kept mifepristone on the shelves when it pared back this extraordinary ruling last August. But the appeals court agreed that the 2016 and 2021 changes—allowing the drug to be used through ten weeks of pregnancy (up from seven) and to be sent to women by post with a remote prescription—had to go.

The plaintiffs will be represented at the Supreme Court by Erin Hawley, wife of Senator Josh Hawley of Missouri. They contend that the FDA violated the Administrative Procedure Act, a law governing how agencies operate, when it expanded access to the purportedly “high risk” drug in 2016 and 2021. The changes in 2016 followed a “piecemeal analysis” of insufficient data, the Alliance writes, and the action of 2021 relied on “unreliable” information. Lifting “long-existing and common-sense safety standards” was “arbitrary and capricious” and thus “unreasonable”.

The federal government and Danco, which markets mifepristone as Mifeprex, paint the FDA’s decisions in a rosier light. The move in 2016 was based on “an enormous and highly reliable data set”, the government says. The decision to allow pills-by-post in 2021 was informed by “extensive published literature”, plus more than two decades of women safely using mifepristone. Emergencies arise in at most 0.7% of cases, making the medicine safer than Viagra or penicillin.

The two sides will surely debate the wisdom of the FDA’s moves in next week’s oral argument. But the question of standing could dominate the conversation: whether the challengers have the legal right to bring the case. The Supreme Court has held that fierce opposition to a policy is no grounds to sue the government. Litigants must show they have suffered a “concrete injury” with a clear causal link.

The plaintiffs advance a host of arguments to claim standing. Their main contention is reminiscent of a Rube Goldberg machine: pro-life doctors could be forced to violate their conscience if no one else is available to complete terminations for women rushed to the emergency room after complications from a medical abortion prescribed elsewhere. This “long chain of contingencies” stemming from “an exceedingly rare serious adverse event” is purely speculative, the government argues: the plaintiffs have not named “even a single doctor among their thousands of members who has ever been required to perform an abortion in the decades mifepristone has been on the market”.

The Supreme Court arguably bent the rules of standing last year in a case that dashed President Joe Biden’s plan to cancel student loans. But the winding argument from mifepristone’s foes—and the legal adventurism of the lower courts—may stretch too far even for the five justices who dispatched Roe v Wade in 2022.■

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Accounting

Business Transaction Recording For Financial Success

Published

3 hours ago

January 18, 2025

Business Finance News

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.

Economics

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

Published

9 hours ago

January 17, 2025

Business Finance News

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.

Economics

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

Published

1 day ago

January 16, 2025

Business Finance News

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.