Tag: industry
What 'Bloodbath'? Auto Is Stronger, Paying Higher Wages Than Under Trump

What 'Bloodbath'? Auto Is Stronger, Paying Higher Wages Than Under Trump

During a March 16 campaign rally in Ohio, former president and presumptive Republican nominee Donald Trump declared, “If I don’t get elected, it’s going to be a bloodbath for the whole — that’s going to be the least of it. It’s going to be a bloodbath for the country.” Trump’s violent rhetoric spurred a flurry of media discussion whether his warning of a “bloodbath” centered on other remarks in his speech about the auto industry, as suggested by the Trump campaign, or meant something more sinister given his history of endorsing actual political violence.

But the former explanation itself is a lie; the auto industry is at an 18-year high for employment and wages have soared during the Biden administration, even as Trump's MAGA media allies claim that the industry is currently suffering because of President Joe Biden’s policies. Additionally, Trump's earlier policies as president hurt the auto industry. (Given these facts, it should come as no surprise that the United Auto Workers endorsed Biden for reelection earlier this year.)

Media outlets are so caught up in the spin over exactly which “bloodbath” Trump might’ve been referring to, they are losing sight of the fact that even his campaign’s excuse is itself another lie about the economy.

  • Trump warned of a “bloodbath” if he loses the presidential election
    • During his rally, Trump said: “Now, if I don’t get elected, it’s going to be a bloodbath for the whole — that’s going to be the least of it. It’s going to be a bloodbath for the country.” He later added: “If this election isn’t won, I’m not sure that you’ll ever have another election in this country.” [NBC News, 3/16/24]
    • The Biden campaign responded to Trump's comments by pointing to his previous support of political violence. “This is who Donald Trump is: a loser who gets beat by over 7 million votes and then instead of appealing to a wider mainstream audience doubles down on his threats of political violence,” Biden campaign spokesman James Singer said. “He wants another January 6, but the American people are going to give him another electoral defeat this November because they continue to reject his extremism, his affection for violence, and his thirst for revenge.” [The Washington Post, 1/10/24; NBC News, 3/16/24]
    • NBC News reported that during the rally, Trump saluted while a recording played of the national anthem being sung by jail inmates awaiting trial for the January 6 insurrection; Trump also referred to imprisoned rioters as “hostages” and “unbelievable patriots.” The article also included a statement from Trump campaign spokeswoman Karoline Leavitt, who said: “Biden’s policies will create an economic bloodbath for the auto industry and autoworkers.” [NBC News, 3/16/24]
  • Trump's media allies came to his defense, pushing his campaign's claim that he meant a “bloodbath” in the auto industry and assailing its performance under Biden due to EVs
    • Newsmax host Emma Rechenberg: “It was clearly in the context of what's going on with the economy, and what's going on more specifically here with the auto industry right now.” Clearly implying that the auto industry is hurting right now, Rechenberg added: “And we've seen from the current president, the Biden administration, their push for this EV market, right, and outsourcing work from other countries here.” [Newsmax, The National Report, 3/18/24]
    • Newsmax host Rob Finnerty: “He's talking about the auto industry and the fact that jobs are being taken by car companies that are importing cars, and that means factories are closing here in the U.S.” Regular guest Mercedes Schlapp of the American Conservative Union echoed this, saying: “It's very clear that he's referring to the auto industry with the fact that these auto parts would be made in different countries like China and Mexico, and the importance of taking strong actions against China when it comes to the auto industry.” [Newsmax, Wake Up America, 3/18/24]
    • CNN conservative commentator Alice Stewart: “There are several definitions of ‘bloodbath,’” but Trump's “campaign made the point quite accurately that Joe Biden's electric vehicle mandates are killing the American manufacturing industry.” Stewart continued: “They're making the case that under the Biden administration, that's not great news for the auto manufacturing industry, and that's an accurate statement.” [CNN, CNN Newsroom, 3/17/24]
    • Fox Business anchor Maria Bartiromo: Trump “said there would be a bloodbath in the auto industry if Biden gets his way jamming down the throats of Americans EV vehicles, and the mainstream media completely mangled his words.” [Fox News, Sunday Morning Futures, 3/17/24]
  • Auto industry employment is at the highest levels in 18 years, and autoworkers made huge wage gains
    • Bureau of Labor Statistics data show more people currently employed in auto manufacturing than at any time since July 2006. Data presented in a graph from the St. Louis Fed shows that nearly 1.07 million Americans are currently employed in auto manufacturing, the highest level since July 2006, when just over 1.07 million workers were employed in the industry. [Federal Reserve Bank of St. Louis, accessed 3/18/24]
    • BLS data also show that wages throughout the auto industry are higher than ever under Biden. [Bureau of Labor Statistics, accessed 3/18/24]
    • Biden supported the UAW strike that resulted in “record wage hikes” for autoworkers' wages, while Trump opposed it. In December, Reuters reported that car manufacturers in the U.S. “are bumping up pay for their non-union workers after the United Auto Workers (UAW) secured record wage hikes and benefits for union workers at the Detroit Three automakers.” And while Biden supported UAW's efforts to expand unionization and made history by joining striking autoworkers on the picket line, Trump blasted the strike and slammed it in a speech to a non-union auto parts plant. [Reuters, 12/19/23, 11/10/23; NBC News, 9/26/23; ABC News, 9/28/23]
    • New car sales in 2024 are expected to rise to the highest since 2019, normalizing after supply chain issues caused by the pandemic. CNBC reported: “Any increase in U.S. sales next year would mark the first sequential sales growth for the automotive industry since 2015-16.” [CNBC, 12/21/23]
    • Biden is not pandering to Chinese EV automakers, and has maintained the 25% tax on Chinese-made cars that Trump put in place. Biden is also currently debating raising these tariffs even more, despite pleas from Chinese car company BYD to remove them. (There is controversy over whether this would be the best move for climate goals.) [The Wall Street Journal, 12/21/23; Vox, 3/4/24]
    • Trump's policies hurt the auto industry and he previously called for wage cuts and bankruptcy for the sector
    • Trump's steel tariffs hurt the auto industry. PolitiFact explained that Trump’s actions to set a 25% tariff on steel imports and a 10% tariff on aluminum imports actually “hampered the U.S. auto industry, sparking the loss of thousands of jobs.” The article continued: “GM, Ford and Fiat Chrysler, now part of Stellantis, all have closed plants in Michigan since 2018, the year the tariffs were imposed. GM and Ford paid $1 billion each in increased steel costs in 2018. … A December 2020 summary from the Congressional Research Service, Congress’ nonpartisan policy arm, said most studies ‘suggest a negative overall effect on U.S. gross domestic product (GDP) as a result of the tariffs’ and that most studies found U.S. consumers and companies ‘bore nearly the entire increased costs associated with the tariffs.’” [PolitiFact, 10/8/23]
    • In 2008, Trump called for wage cuts for autoworkers and said the Big Three U.S. automakers should go bankrupt. In a 2008 Fox News interview, Trump said, “I think that the unions are really, really hurting very badly what's going on with the autos. … And by the way, the union workers are fantastic, but probably they have to take a cut.” Trump added: “They get their little 5%. They get another 2%. They get another 3%, 4%, then all of a sudden they're making more money than the people that own the company.” During that Fox interview, Trump also said the automakers should go through bankruptcy: “There are so many ways that it can be saved. If they do a Chapter 11. … If they do a Chapter 11, and over the years I've put companies into a Chapter 11. You negotiate from Chapter 11. It's a tremendous strength.” [Fox News, Your World, 12/17/08]
  • News organizations covered the spin over Trump’s “bloodbath” comment without debunking the lie about the auto industry’s performance under Biden
    • The Washington Post carried a Trump spokesman’s comment that “Biden’s policies will create an economic bloodbath for the auto industry and autoworkers.” The Post failed to note there is no such “economic bloodbath” in the industry under Biden’s policies now, and that U.S. autoworkers are better off today than they were under Trump. [The Washington Post, 3/16/24]
  • The Associated Press: “Trump campaign spokesman Steven Cheung said that Trump had clearly been talking about the impact of a second Biden term on the auto industry and broader economy.” The AP article also failed to mention any details about the current state of the auto industry, but did report that “Trump repeatedly noted his difficulty reading from his teleprompters, which could be seen visibly whipping in 35-mile-per-hour wind gusts.” [The Associated Press, 3/17/24]
  • Politico: “Defenders of the former president say he was speaking about the plight of the auto industry.” The article included quotes on the Sunday shows from Rep. Mike Turner (R-OH), Sen. Mike Rounds (R-SD), and Sen. Bill Cassidy (R-LA), who all highlighted the supposed context of the purportedly imperiled auto industry. [Politico, 3/17/24]
  • CNN: “The Trump campaign shot back Saturday night, saying the former president was speaking about autoworkers.” “‘Biden’s policies will create an economic bloodbath for the auto industry and autoworkers,’ Trump campaign spokeswoman Karoline Leavitt said.” [CNN, 3/17/24]
  • The Sunday political talk shows failed to clarify the point that the U.S. auto industry is doing better now than it did under Trump. Transcripts show that the hosts never raised this point, instead getting hung up on what the word “bloodbath” might be referring to. [ABC, This Week, 3/17/24; CBS, Face The Nation, 3/17/24; CNN, State of the Union, 3/17/24; NBC, Meet The Press, 3/17/24]
  • The New York Times carried Trump’s social media post claiming that media outlets “fully understood that I was simply referring to imports allowed by Crooked Joe Biden, which are killing the automobile industry.” The Times failed to note that nothing is “killing” the U.S. auto industry, which is in better shape now than when Trump was president. [The New York Times, 3/18/24]
With research contributions from Ilana Berger

Reprinted with permission from Media Matters.

Pot Legalization Spreads Through The West And Into D.C.

Pot Legalization Spreads Through The West And Into D.C.

By Evan Halper, Tribune Washington Bureau

Joints, pot brownies, cannabis–dosed sodas, and other marijuana products will soon be sold in retail shops to any adult who wants them throughout a large chunk of the West, after voters in Oregon and Alaska approved legalization measures Tuesday.

And an initiative approved overwhelmingly by Washington, D.C., voters legalizes the use and cultivation of marijuana there, but stops short of allowing retail sales.

The states join Colorado and Washington, which legalized recreational pot sales only two years ago, in a remarkable change of fortune for legalization advocates who had been toiling for decades to lift the prohibition on the drug. Proponents this week overcame voter concerns surrounding the bumpy roll out of the taxing and regulatory plans for cannabis in the states where it was legalized in 2012 – as well as many unwelcome headlines – in a sign that voter unease with the drug is rapidly fading.

The outcome also was a clear sign that opinions on marijuana no longer fall neatly along partisan lines. The narrow passage of legalization in GOP-dominated Alaska, where 52 percent of voters cast ballots in favor, was considered a symbolic victory among cannabis advocates.

The vote in the capital also had political significance, playing out in the backyard of federal government as advocates try to persuade Congress to soften drug laws. The Washington, D.C., measure was driven in large part by racial justice concerns, in a city where African-Americans accounted for 91 percent of those arrested for drug possession, even though statistics show they are no more likely to use the drug than whites.

Organizers are now setting their sights on California for 2016, where they are confident the state’s liberal-leaning electorate will opt to legalize sales for recreational use. Such an outcome would create a bulwark for marijuana permissiveness in the West, which proponents hope to buffet by targeting other large states to the east for legalization measures in 2016 and shortly thereafter.

“This Election Day was an extraordinary one for the marijuana and criminal justice reform movements,” Ethan Nadelmann, executive director of the Drug Policy Alliance, said in a statement. The alliance, a nonprofit bankrolled by billionaire George Soros, invested heavily in the Oregon measure through its political action affiliate, and it also provided advice and financial support to the Alaska initiative.

“These victories are even more notable for having happened in a year when Democrats were trounced at the polls,” Nadelmann wrote. “Reform of marijuana and criminal justice policies is no longer just a liberal cause but a conservative and bipartisan one as well. On these issues at least, the nation is at last coming to its senses.”

This election season was also notable for the opposition the marijuana movement attracted. Billionaire casino magnate Sheldon Adelson stepped up with $5 million to help defeat a fairly routine measure in Florida to legalize marijuana for medical use only. It was done in by a Florida state law that requires 60 percent approval for constitutional measures to pass. It fell just a few percentage points short.

Still, Adelson’s involvement in the campaign marked the first time a mega-donor has gotten so deeply involved in fighting such a measure. Opponents of pot said they had never before been able to afford television time, and in Florida they had the resources to mount a sophisticated multimedia effort. Adelson’s political adviser said the billionaire will be looking for other opportunities to fight legalization.

Smart Approaches to Marijuana, a national anti-pot group, is vowing to step up its efforts.

“This was not the complete slam-dunk the legalization groups expected,” said a statement from Kevin Sabet, president of the group. “Alaska barely voted to legalize, and several cities rejected marijuana retail stores outright. We are confident the more people know the truth about marijuana and the Big Tobacco-like marijuana industry, the more opposition to marijuana legalization will continue to grow.”

AFP Photo/Frederic J. Brown

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Edible Marijuana Products Slow To Arrive, As Regulators Exercise Caution

Edible Marijuana Products Slow To Arrive, As Regulators Exercise Caution

By Evan Bush, The Seattle Times

SEATTLE — Marijuana-infused edibles began trickling to store shelves in Washington state last month, and the sweets, snacks, and drinks offer a glimpse of a diverse and maturing marketplace on the horizon — one rife with concerns for consumers and regulators.

Statewide pot-supply shortages slowed the edibles’ arrival, but manufacturers also were stifled, and frustrated, by emergency regulations from the state Liquor Control Board (LCB), which has taken a cautious approach to opening the marketplace.

So far, the LCB has given its blessing to products — including chocolate bars, sodas, and energy shots — from three new businesses.

Nine more kitchens have been approved by the Washington Department of Agriculture, but the LCB hasn’t yet signed off on their products.

Although eager entrepreneurs have bemoaned the LCB’s pace, Washington has benefited from watching Colorado deal with unexpected concerns and high demand for edibles. It also avoided national scrutiny after media seized on cautionary tales about edibles. New York Times columnist Maureen Dowd visited Colorado, ate marijuana candy, and wrote that it left her in an eight-hour “hallucinatory state” in which she was “panting and paranoid.”

The stories pushed regulators in both Colorado and Washington to tighten the market, put an emphasis on education and, in many ways, protect consumers from themselves.

Making edibles a commercial scale requires a touch of science and a dash of culinary skill.

With the state’s pot supply limited, edibles processors do have one advantage: They can use other pot growers’ trim, or waste clippings, as the base to make THC-laden oil or cooking fat.

“You can get a high-quality perceived product from essentially scraps,” said Jim Chaney, who has been making edibles for medical patients since 2011.

From there, processors can be creative. Take, for example, the first three to have edibles approved:

— After furtive discussions around their family’s Thanksgiving table in 2012, Patrick, Dan, and Michael Devlin started Db3. The brothers’ company became the state’s first licensed edibles processor. In January, they started setting up shop in a 25,000-square-foot warehouse in the SoDo neighborhood.

The brothers will soon launch Zoots, their line of marijuana-infused drops and candies.

Industrial food-processing machines will churn out three products initially: drink additives that combine THC with substances like green coffee-bean extract or camomile; energy shots that have a similar appearance to 5-Hour Energy drinks; and “chili cinnamon fire” candies packaged in what looks like an Altoids tin.

The Devlins converted their warehouse, which had been processing chicken salad, into an edibles assembly line and spent months developing their products, then testing them with focus groups. By the end of the month, they expect to have 24 employees.

They see Zoots as a future “signature Seattle brand.”

“From a business perspective, this is a very large market without a brand,” Dan Devlin said.

— An hour north near Granite Falls, Green Chiefs has a former horse barn with a kitchen, a $125,000 carbon-dioxide processor named “Leviathan,” and about 2,700 pot plants inside.

With walls constructed of corrugated metal lining the barn’s frame, Green Chiefs built a commercial kitchen to produce such snacks as Parmesan garlic pita chips and peanut brittle.

Instead of convening focus groups, Green Chiefs pushed out small batches of confectionery items like truffles and brownie brittle and is tracking sales and price margins, said Demetri Huffman, a consultant with the company.

Although state-licensed retail stores priced their high-potency chocolate bars with about 55 milligrams of THC between $70 to $100, Huffman said Green Chiefs did not profit from its first batch, which also included other kinds of edibles, because trim was expensive and their kitchen processes were not yet streamlined.

— In Longview, in Southwest Washington, Mirth Provisions hopes its cannabis-infused sodas can compete with “a nice 22-ounce beer or a glass of pinot noir.” Founder Adam Stites said the company “can push about 8,000 bottles a day.” Soon, Stites hopes to bring cold-brew cannabis coffee to shelves.

For now, though, Mirth Provisions offers three soda flavors. Rainier Cherry, infused with a sativa strain, contains about 20 milligrams of THC.

Stites said he decided to pursue pot-infused beverages because he believes they’ll have a bigger consumer base than traditional bud.

“Regardless of what socioeconomic group you’re in, drinking is a socially acceptable way to recreate,” said Stites. “We said, why not make it a single serving for when you’re out barbecuing?”

All three companies project a wide base for their market, something an initial study of Colorado’s market seems to support.

“(Edibles have) been a lot more popular than we thought this year,” said Adam Orens of BBC Research, who helped research the market for the state. “It has that appeal for casual users — an easy way to consume marijuana.”

In Colorado, the researchers estimated, tourists account for about 44 percent of recreational marijuana sales in metro areas, and about 90 percent in heavily visited mountain communities.
Novice pot users having bad experiences with Colorado edibles piqued Washington regulators’ attention in the process.

In June, Dowd wrote about her experience with edibles, and the story went viral. Three months earlier, a 19-year-old Wyoming student had jumped from a balcony and died after eating more than six times the recommended serving of marijuana cookies.

In response, regulators and industry leaders in both states imposed restrictions on the edibles marketplace and put new emphasis on education.

Most concerns stem from the newly pot-curious eating too much too fast because they don’t know better, said Meg Collins, executive director of Colorado’s Cannabis Business Alliance.

“Edibles seem like an easy, friendly way to get into marijuana,” Collins said. “It may taste like a yummy chocolate, but it’s still a drug and you need to be careful.”

Unlike smoking or vaping marijuana, eating pot can affect people quite differently and can produce a delayed high that kicks in hours later.

Although Washington’s law was more restrictive than Colorado’s, that state’s struggles brought new attention. In June, the Washington LCB released emergency rules to tighten its control over the edibles market.

“There were reports coming out of Colorado that edibles were more tricky,” said Brian Smith, an LCB spokesman. “We had already established serving sizes and limits. We wanted to take it a step further.”

The rules require products be scored and labeled to indicate serving sizes, and homogenized so psychoactive chemicals are dispersed evenly throughout the products.

The LCB also restricted how manufacturers could preserve products. The rules don’t allow dairy products or anything that requires heating or cooling, among other constraints.

“We’re trying to keep this relatively young industry more on the side of safety with inherently low-risk products,” said Steve Fuller, a policy analyst for the state agriculture department. Some of those regulations might loosen in the future.

The LCB’s rules also allow it to reject any product or packaging it thinks would appeal to children. That means no gummy bears or cartoon animals.

AFP Photo/Desiree Martin

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Manufacturing Leads U.S. Industrial Output Higher

Manufacturing Leads U.S. Industrial Output Higher

Washington (AFP) — Manufacturing pushed U.S. industrial production higher in July in the sixth straight months of gains, the Federal Reserve said Friday.

Total output of the nation’s manufacturing, mining, and utilities rose 0.4 percent in July, after an upwardly revised 0.4 percent gain in June.

The July output increase was slightly stronger than analysts expected.

Manufacturing output surged 1.0 percent, its largest gain since February, and up from a 0.3 percent rise in each of the prior three months.

Leading the increase was production of motor vehicles and parts, revving up 10.1 percent, while other production rose 0.4 percent.

Mining output gains slowed sharply to 0.3 percent from 1.3 percent in June.

Utilities output fell for the second month in a row, by 3.4 percent, as weather that was unusually mild for July reduced demand for air conditioning, the central bank said.

Year on year industrial output in July was up 5.0 percent.

“So far, with the exception of consumer spending… it looks like Q3 is getting off to a good start,” said Jennifer Lee of BMO Capital Markets.

Capacity utilization crept higher by a tenth point for the second straight month, reaching 79.2 percent in July, the highest since June 2008.

Lee said capacity utilization was “still below inflation-threatening” levels of more than 82 percent.

AFP Photo/Stephen Brashear

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