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Economics

Why not impeach everyone?

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WILLIAM BELKNAP is the only cabinet official in American history to have suffered the indignity of a congressional impeachment. In the case of Belknap, the secretary of war to Ulysses S. Grant, it was richly deserved: to maintain his reputation for enormous, raucous parties and well-dressed wives, the war secretary awarded trade monopolies at a military fort to a friend who gave him generous kickbacks. For “basely prostituting his high office to his lust for private gain”, the House of Representatives voted to impeach him in 1876.

Nearly 150 years later, Alejandro Mayorkas, the secretary of homeland security, may become the second cabinet official to be impeached—if Republicans were to have their way, that is. Compare the two charge sheets, and the travesty of the latter becomes clear. Mr Mayorkas does not stand accused of grand corruption or treason but of a political crime: he has overseen immigration policy.

It should be noted that there is no chance of Mr Mayorkas actually being ousted from office. Articles of impeachment must first be passed with a majority of the House, which Republicans might even struggle to do because they retain control by the barest of margins. Passing those articles would trigger the spectacle of a trial to be held in the Senate. And the chances of securing a conviction there, which would require a two-thirds majority and so at least 18 Democratic voters, are lower than the odds that Mexico would ever pay for the construction of a border wall. So, why bother at all?

The southern border is indeed in a bad way, as Republicans point out. In December 2023 American immigration authorities reported more than 300,000 encounters with migrants—the most of any month on record. Those who arrive and claim asylum cannot be kept in custody because of a shortage of detention beds and immigration judges; many are released into the country with a court date years into the future, which is sometimes skipped. Even if the severity of the crisis is at its highest level, the problem of illegal migration over the US-Mexico border is decades old. Presidents like Dwight Eisenhower and Ronald Reagan struggled with it.

But in their articles of impeachment, the Republicans lay all of the blame at the feet of Mr Mayorkas. “In large part because of his unlawful conduct, millions of aliens have illegally entered the United States on an annual basis with many unlawfully remaining,” they accuse in their first article. The second article says he breached the public trust by testifying to Congress that the border was secure, when, they argue, he should have known that it was not.

On closer inspection, the allegations are even more flimsy than they first appear. One complaint is that Mr Mayorkas overturned the Migration Policy Protocols, put into place by President Donald Trump, requiring asylum-seekers to remain in Mexico while they waited for their cases to be considered. The complaint cites language from a federal appeals court that Mr Mayorkas appears to have ignored. That only looks damning because it omits the fact that the court ruling was appealed to the Supreme Court, which sanctioned the policy change.

Rock and parole

Another gripe is over the administration’s use of “parole authority”, which allows it to grant reprieve from deportation on a case-by-case basis. Republican arguments that this has been applied over-generously (by allowing in 30,000 Cubans, Haitians, Nicaraguans and Venezuelans each month) are certainly plausible. But complaints about governmental inaction do not usually rely on empirical evidence showing increased action. The articles of impeachment, by contrast, argue that Mr Mayorkas has not done enough to curtail the smuggling of fentanyl by pointing to the increasing amounts impounded by the authorities; that he is not doing enough to stop migrants by pointing to increased apprehensions at the border; and that he is not deporting enough illegal migrants by pointing to record-breaking deportation-case backlogs. At their core, the Republican allegations are about competence in office and the appropriate use of executive powers, which are usually addressed through court cases, not impeachment.

The irony is that House Republicans are pursuing this course of action when, on the other side of the Capitol, more serious Senate Republicans are trying to negotiate with Democrats to craft a bill that would alleviate the pressure on the Mexican border. Among the mooted provisions are limits on the president’s parole authority, an increase in the number of border-patrol officers and immigration judges, and tougher criteria for judging whether those seeking asylum actually have credible cases.

The bill matters for more than just the border: Democrats hope that a border deal would placate Republicans enough for them to agree to send more aid to Ukraine as part of a combined spending package. If accomplished, it would be a rare triumph of pragmatism over partisanship. Unsurprisingly, Mr Trump has taken to whipping against any forthcoming border compromise, following the cynical logic that border chaos is better for his election prospects than improvement. Pursuing an impeachment trial to protest about the border, in lieu of the legislation that might actually fix it, would be to prefer empty spectacle over governing. Alas, that seems an apt summary of the House Republicans’ mission statement.

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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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