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Will the dramatic burst of bipartisanship in Congress last?

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Something remarkable just happened in American politics. Despite intense polarisation, a burst of bipartisanship has enabled Congress to pass vital legislation, over the objections of hard-core obstructionists in the House of Representatives. How was this possible?

The Republican Party began the 118th Congress holding the fifth-narrowest House majority in American history—and its most extreme members appeared firmly in control. Kevin McCarthy became speaker after a humiliating 15 rounds of voting. As a way to win the job, Mr McCarthy agreed to place hard-right members on the powerful Rules Committee, where they could routinely undermine the party’s leaders. He also accepted a change that allowed a single member of Congress to call a vote on his ouster. The influence of the berserker caucus peaked when eight Republicans voted with the Democratic Party to remove Mr McCarthy from the speakership in October 2023.

However, the extremists have had stunningly little influence on policy, despite their formidable procedural power. The passage of legislation to aid Ukraine and other allies is only the latest example. President Joe Biden signed it into law on April 24th (along with a bipartisan move to ban TikTok unless it is sold by its Chinese owner).

In the spring of 2023 Mr McCarthy negotiated a deal to modestly cut discretionary spending in exchange for an increase to America’s borrowing limit. The House Freedom Caucus howled that the reductions were insufficient. Although 71 Republicans voted against the Fiscal Responsibility Act, the legislation still passed with help from Democrats. The insurgent wing of the Republican Party could only grumble as Mr McCarthy held on to his job.

But averting a government shutdown in September 2023 was a step too far. Mike Johnson, a Louisiana congressman, replaced Mr McCarthy after several weeks of chaos in the lower chamber. He kept the government funded with short-term spending bills, the sin for which Mr McCarthy was excommunicated, but Republicans were not eager to go through the ordeal of finding yet another speaker. Republican divisions undermined the party’s bargaining power with the White House and the Democrat-controlled Senate, and Mr Johnson eventually passed a solution for the remainder of the fiscal year that bore a striking resemblance to what Mr McCarthy had negotiated a year before.

The hard right betrayed even greater legislative ineptitude in its fight against funding for Ukraine. Many conservatives demanded drastic changes to America’s immigration system, and a group of senators negotiated what would have been the most restrictive immigration law in decades in exchange for nearly $100bn in funding for Ukraine, Israel and Taiwan. Republicans rejected the proposal because of pressure from Donald Trump, who sees the crisis on America’s southern border as a political winner as he campaigns for a new stint in the White House.

Mr Johnson, who had voted against Ukraine aid several times before taking the speaker’s gavel, had a change of heart, swayed in part by intelligence briefings. The legislation he put to the House was remarkably similar to the Senate bill, though he broke it into several pieces. Whereas a majority of Republicans supported the debt-ceiling increase and the government-funding bills, most rejected the new aid for Ukraine. Ironically, many complained that nothing had been done to tackle America’s porous border. Republican hardliners won virtually nothing they had sought in earlier negotiations, yet Congress still provided $61bn for Ukraine. Though shamefully late, it will make a big difference to Ukraine’s war effort.

While the hard right was up in arms, Mr Trump stood by the speaker. “We have a majority of one, OK?” Mr Trump said in a radio interview on April 22nd. “It’s not like he can go and do whatever he wants to do. I think he’s a very good person.”

For now Mr Johnson appears secure in his position. Marjorie Taylor Greene, an excitable congresswoman from Georgia, has threatened to oust him, but has yet to force the question. “The old maxim on Capitol Hill is that you vote when you have the votes,” says Doug Heye, a former Republican leadership aide. “Clearly Marjorie Taylor Greene didn’t have the votes.”

A strong majority of House Republicans would back Mr Johnson, as they did Mr McCarthy, but the new speaker has also built goodwill with some Democrats. “For all its rank partisanship, the House right now is functionally and uneasily governed by a group of Republicans and Democrats,” wrote Brendan Buck, a former aide to two Republican speakers.

Mr Johnson’s shift on Ukraine does not mean Congress will take up much serious legislation for the remainder of this term, especially as the campaign season shrinks the legislative calendar. Expect some tweaks—Mr Johnson is considering changes to how “earmarks”, which designate a specific recipient for certain spending, are made in funding bills, probably an attempt to shore up support with conservatives—but nothing as salient as the foreign-aid package. A serious effort to impeach Mr Biden is unlikely: even trying would alienate many of the Democrats implicitly helping Mr Johnson remain in power.

Will America’s accidental speaker be leading House Republicans next year? Retaining the House won’t be easy, and parties that lose their majorities tend to fire their leaders. The Republican Party will have to increase its majority to give Mr Johnson a chance, and the power of a Trump endorsement would depend largely on whether he wins the presidency. It doesn’t help that House Republicans have a history of punishing their leaders for doing the right thing.

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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