Connect with us

Economics

Why can’t politicians just admit when they’re wrong?

Published

on

The debate this week was short on exposition of policy but so rich in moments revelatory of the styles and characters of the two candidates that I struggled in the wee hours on Wednesday, while writing this week’s Lexington column, with what to leave out. One moment I’ve been thinking about since was when Vice-President Kamala Harris, in a litany about how Donald Trump has “attempted to use race to divide the American people”, referred to how he treated the so-called Central Park Five. 

Do you recall the case? In 1989, after a white woman out jogging in Central Park was raped and brutally beaten, five teenaged black and Latino boys, arrested and questioned for hours by police, confessed. The matter drew national attention. 

Almost two weeks after the attack, Mr Trump took out full-page advertisements in the four major New York newspapers calling for the reinstatement of the death penalty. Addressing the mayor, Ed Koch, who had urged New Yorkers not to carry “hate and rancour” in their hearts, Mr Trump wrote, “I want to hate these murderers and I always will. I am not looking to psychoanalyse or understand them, I am looking to punish them.” The Central Park Five served years in prison before being exonerated in 2002 by the confession, supported by DNA evidence, of a convicted rapist and murderer. 

After Ms Harris raised the incident, Mr Trump gave one of his jumbled rebuttals. The gist viewers might have taken away was that, as he put it, Ms Harris had to “stretch back years, 40, 50 years ago, because there’s nothing now.” Here’s why the story remains relevant: Mr Trump has never recanted, let alone apologised, and he has continued to imply the five men may have been responsible for the attack. He did so once again Tuesday night.“They pled guilty. And I said, well, if they pled guilty they badly hurt a person, killed a person ultimately,” he said. “Then they pled we’re not guilty.” (The victim is alive).

Why can’t Mr Trump acknowledge that the Central Park Five were innocent? Many of the convicted January 6th rioters also pleaded guilty, and though they have not been exonerated Mr Trump calls them patriots and hostages. He has said he himself is the victim of prosecutorial overreach and claimed “a lot of people said that that’s why the black people like me because they have been hurt so badly and discriminated against.” He seems unwilling to return such empathy. 

The Harris campaign brought a member of the Central Park Five—Yusef Salaam, now a member of the New York City council—to the debate. In the “spin room” afterwards, he called Mr Trump from a scrum of reporters, identifying himself as a member of the “exonerated five”. “That’s very good,” Mr Trump said, grinning, though possibly not realising whom he was dealing with. “You’re on my side!” Mr Salaam responded, “No, no, I’m not on your side.”

I think this is a particularly egregious case of a politician refusing to admit error because it does exacerbate racial division, and it falsely spreads suspicion of criminality. Mr Trump, of course, is extreme in his refusal to admit any shortcoming, such as losing an election, or even any facts that don’t fit his view of reality, as when he insisted during the debate that the FBI’s crime numbers are fraudulent because they do not show the crime wave he insists is engulfing America. But I should note that Ms Harris also seems resistant to simply saying she got something wrong, or even evolved in her thinking. Why can’t she explain why she changed her mind about fracking? I think voters would actually have more confidence in a politician who would forthrightly say that, confronted with new facts or arguments or experience, their view changed. A society in which people can’t own up to their mistakes—and forgive one another for them—seems doomed to make many more of them than it otherwise would. 

Thank you for the wonderful responses to my request for great political ads. I now suspect Australia’s political culture is considerably more creative than America’s, given the suggestions from down under, some of which I had to use Google to decode (eg, “Point Percy at the Parliament”, suggested by Saul Eslake). Roger Karess wrote from Paris to recall a bumper sticker from the Nixon era: “The majority isn’t silent, the government is deaf!” Cheryl Rivers of Stockbridge, Vermont, nominated a more recent example, Rafael Warnock’s puppy ad (not actually his beagle, I discovered while reporting a Lexington about his campaign). I was delighted to be reminded by Thellen Levy of a fictional ad, a sign described in the Raymond Chandler novel “The Lady in the Lake”: “Keep Jim Patton Constable. He is too old to go to work.” ■

Continue Reading

Accounting

Business Transaction Recording For Financial Success

Published

on

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.

Continue Reading

Economics

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

Published

on

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.

Continue Reading

Economics

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

Published

on

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.

Continue Reading

Trending